Fourteen more nabbed for conspiracy, fraud

Additions have been made to this post...

Prosecutors working on the Galleon Group case warned after the first round of arrests that more were coming. This wasn't an exaggeration.

Thursday, 14 people were charged with conspiracy and fraud; however, it has not been confirmed that the recent sweep is related to the $20 billion insider trading case involving Galleon Group. One of the men charged, Craig Drimal*, was at one time an employee at Galleon.

U.S. Attorney Preet Bharara has scheduled a press conference for noon Thursday in New York to announce the filing of the new charges against individuals including attorneys and "Wall Street professionals."

So far it is known that Zvi Goffer, Arthur Cutillo, Jason Goldfarb, Emanuel Goffer, David Plate and Michael Kimelman have been charged. The names of the other individuals have not been released.

From Bloomberg:

According to today's court filings, some of the defendants traded on inside information related to Bain Capital LLC's proposed buyout of 3Com Corp. Cutillo, an attorney who worked at Ropes & Gray LLP, allegedly stole information from his law firm and leaked inside information to Goldfarb, according to the FBI. Investigators said they tapped Drimal's cell phone.

We'll learn soon enough if the charges Thursday are related to Galleon.* But either way it is clear that regulators are stepping it up.

* It has been learned that Zvi Goffer was also a former employee at Galleon. Drimal worked in the office, but was not an employee, according to Dealbook. Goldfarb is a New York lawyer; Goffer, Kimelman and Plate are all associated with Goffer's current hedge fund, Incremental Capital. - Sara Behunek

See more from The Deal:
VIDEO - Galleon fallout: Should Wall Street be worried?
Corporate dealmakers: Lessons from Galleon

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