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.<\/p>\n
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.<\/p>\n