Preet Bharara, the U.S. attorney who’s current terrifying Wall Street, announced 14 new defendants in the Galleon Group insider-trading case this afternoon.
“If you’re a wealthy trader, you aren’t special,” Mr. Bhara said. “Knock on our door before we come knocking on yours.”
Mr. Bhara has been knocking on quite a few doors lately, but the fact he’s tapping cell phones is what has everyone on Wall Street worried. At a press conference, Mr. Bhara said some of the defendants “took a page from drug dealers” and were using pre-paid cellphones. That would seem to include Zvi Goffer, who was apparently called “Octopussy” because he had his arms in so many inside deals. According to the charges, Mr. Goffer gave one source a pre-paid phone with just two numbers labeled “you” and “me.” From the London Telegraph, quoting the indictment:
After the announcement which the source had allegedly informed Mr Goffer of, he destroyed his mobile phone “by removing the SIM card, biting it, and breaking the phone in half, throwing away half of the phone and instructing his source to dispose of the other half.”
That led to this bit of wisdom from S.E.C. enforcement director Robert Khuzami at today’s press conference. “If you find yourself chewing the card of (a) cell phone,” the WSJ quotes an him as saying, “something has gone terribly wrong.”