BusinessWeek – In the weeks after FBI agents arrested him on insider-trading charges in November 2009, Zvi Goffer maintained his bravado. The government, he told former colleagues from Galleon Group, a manager of hedge funds, could not possibly have damning evidence against him.
One of those associates recalls asking Goffer if he’d been reading the papers and telling him that the feds seemed to be pretty serious. A sign that the FBI might have incriminating evidence was that weeks before Goffer’s arrest, agents had detained Galleon’s co-founder, Raj Rajaratnam, an alleged beneficiary of Goffer’s insider tips. The investigation was a lot bigger than Goffer could admit to himself, says the former colleague, who worked with Goffer at Galleon. The ex-colleague, who has not been charged in the insider-trading investigation, spoke with Bloomberg Businessweek on the condition that he not be named.
