As SEC Enforcement Director Rob Khuzami said today, “If you find yourself chewing the card of a cell phone…something has gone terribly wrong.”
Indeed. The SEC filed a huge insider trading case today against two lawyers, six Wall Street traders and a proprietary trading firm, alleging that the scheme netted over $20 million. The SEC alleges that Arthur J. Cutillo, an attorney in the New York office of law firm Ropes & Gray, had access to confidential information about at least four major proposed corporate transactions in which his firm’s clients participated. Through his friend, attorney Jason Goldfarb, Cutillo tipped this inside information to Zvi Goffer, a trader at New York-based firm Schottenfeld Group.
