Bharara's office has charged more than two dozen people in cases related to Galleon. In June, Zvi Goffer, a former Galleon trader, his brother Emanuel, and Michael Kimelman were convicted of conspiracy and securities fraud. The three men started Incremental Capital LLC after Zvi Goffer was fired by Galleon in 2008.
Trial testimony showed the three used tips on pending acquisitions from two lawyers, then working at the Boston-based law firm Ropes & Gray LLP, to profit on trades in 3Com Corp., Axcan Pharma Inc., Kronos Inc. and Hilton Hotels Corp.
Zvi Goffer was referred to by some of his associates as "Octopussy," according to prosecutors. The James Bond movie allusion sprung from Goffer's many tentacles reaching for confidential corporate information, prosecutors said.
At least 15 other people were convicted in Manhattan in a third round of insider-trading cases brought by Bharara's office since November. They involved so-called expert-networking firms, which match industry experts with fund managers.
Trial testimony showed that some employees at public companies, while moonlighting for firms such as Mountain View, California-base Primary Global Research LLC, passed nonpublic information to fund managers for fees.
Zvi Goffer was sentenced to 10 years in prison by U.S. District Judge Richard Sullivan. Chiesi was sentenced by Holwell to 30 months in prison. Craig Drimal, a former Galleon trader, was sentenced by Sullivan to 66 months. Jason Goldfarb, who was part of Zvi Goffer's ring, was sentenced to three years in prison by Sullivan.
Moffat was sentenced to six months in prison by U.S. District Judge Deborah Batts. Mark Kurland, a fund manager at New Castle Funds and Chiesi's boss, was sentenced to 27 months by U.S. District Judge Victor Marrero.
A former Primary Global consultant, Winifred Jiau, was sentenced in September to four years in prison for passing earnings and other information about Nvidia Corp. and Marvell Technology Group Ltd. to hedge fund managers. Two of those fund managers, Noah Freeman, a former SAC Capital Advisors LP portfolio manager, and Samir Barai, founder of New York-based Barai Capital Management LP, previously pleaded guilty in the case.
Freeman said he made from $5 million to $10 million by trading on Jiau's Nvidia information.
Donald Longueuil, another former SAC Capital Advisors portfolio manager, was sentenced in July to 2 1/2 years in prison for his role in the scheme.