Sunday, December 11, 2011
The SEC and Zvi Goffer recently settled insider trading charges in SEC v. Galleon Management, LP. The SEC charged Goffer, who was a registered representative and a proprietary trader at the broker-dealer Schottenfeld Group, LLC during the relevant time period, with using inside information to trade ahead of impending acquisitions.
To settle the SEC’s charges, Goffer consented to the entry of a judgment that: (i) permanently enjoins him from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and (ii) orders him to pay disgorgement of $265,709.33, plus prejudgment interest of $59,564.56, for a total of $325,273.89. In a related SEC administrative proceeding, Goffer consented to the entry of an SEC order permanently barring him from association with any broker or dealer, investment adviser, municipal securities dealer or transfer agent, and barring him from participating in any offering of a penny stock. Goffer previously was found guilty of securities fraud and conspiracy to commit securities fraud in a related criminal case, United States v. Zvi Goffer, 10-CR-0056 (S.D.N.Y.), and was sentenced to a ten-year prison term and ordered to pay criminal forfeiture of $10,022,931.
The SEC also announced today the entry of a consent judgment against Goffer in a separate case alleging insider trading in other securities. See SEC v. Cutillo et al., No. 09-CV-9208 (S.D.N.Y.) (RJS).