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Nine more arrests in hedge fund scandal

New York, Nov. 5 (Reuters): Nine more people have been arrested in the Galleon Group insider-trading scandal, bringing to 15 the number charged in the biggest hedge fund-related case in history.

The new arrests include Wall Street traders, lawyers and hedge fund managers, according to complaints filed in a New York federal court today. The new charges come nearly three weeks after Raj Rajaratnam, the billionaire founder of hedge fund firm Galleon Group, and five others were arrested in the case. Rajaratnam is accused of masterminding the scheme.

Among those charged today were Zvi Goffer of Incremental Capital hedge fund; Arthur Cutillo, a former attorney with law firm Ropes & Gray; Jason Goldfarb, an attorney; Craig Drimal, a former employee in Galleon's office; and Emanuel Goffer, Michael Kimelman and David Plate, all associated with Incremental Capital.

The complaints allege that Zvi Goffer ran an insider trading network and paid sources for inside information. He provided his tipsters with prepaid cellphones so they could minimize the chances of getting caught when passing on tips, the complaint said.

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