Meet David Slaine. He used to be a portfolio manager at the Chelsey Capital hedge fund. Then, he found himself caught up in an insider trading scandal, with some very persistent federal agents asking him disturbing questions. So if you are David Slaine, what would you do?
Slaine donned a wire and recorded a conversation on Dec. 17, 2007 with Zvi Goffer, the main target of the second Galleon Group trial. The result was an incriminating utterance from Goffer, to wit:
"I'll give you, I'll give you my information. I'm not going to sell my information. It's too valuable. … I don't know what he does, how he does it, but he gets it from somewhere.
Goffer is referring to a "unionized construction worker" who gave him four valuable tips.
Zvi Goffer was the founder of Incremental Capital and with his brother Emanual and partner Michael Kimelman stand accused of conspiracy and securities fraud. Goffer led one insider trading ring, Galleon founder Raj Rajaratnam led another.
Rajaratnam was found guilty earlier in May of insider trading. He is awaiting a sentence that could span decades. Zvi Goffer can only sit and wait as the majesty of the justice system unfolds.
© 2011 Hedge Fund Writer LLC
