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Zvi Goffer Gets 10 Years for Inside Trading

MANHATTAN (CN) - Zvi Goffer was sentenced Wednesday to 10 years in federal prison for inside trading. A jury convicted Goffer in June of 12 counts of securities fraud and two counts of conspiracy. U.S. District Judge Richard Sullivan sentenced Goffer on Wednesday.

U.S. Attorney Preet Bharara called it "yet another sordid chapter in the illegal insider trading conspiracies that have become so alarmingly pervasive. Unfortunately, it is not the final chapter."

Goffer was the ringleader of a conspiracy that got inside information about mergers and attorneys from two attorneys, Arthur Cutillo and Brien Santarlas.

Cutillo and Santarlas passed the information to Goffer through Jason Goldfarb, an attorney at another law firm.

Goffer paid the three attorneys at least $97,000 for the information, then traded on it himself and sent the information along to other members of the conspiracy, prosecutors said.

Goffer, 34, also was ordered to forfeit $10 million.

Cutillo, Goldfarb and Santarlas have pleaded guilty to conspiracy and securities fraud. Cutillo was sentenced to 2½ years in prison, Golfarb to 3 years. Santarlas will be sentenced on Oct. 28.

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