United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY’S OFFICE
APRIL 21, 2011 ELLEN DAVIS, CARLY SULLIVAN,
PREET BHARARA, the United States Attorney for the
Southern District of New York, announced that JASON GOLDFARB, an
attorney, pled guilty today to conspiracy and securities fraud
charges arising from a scheme in which GOLDFARB gave material,
nonpublic information misappropriated from the law firm of Ropes
& Gray to ZVI GOFFER who allegedly traded on that information.
GOLDFARB received cash payments for his role in the insider
trading scheme. He pled guilty before U.S. District Judge
RICHARD J. SULLIVAN.
According to the Indictment, a Complaint previously
filed in this case, and statements made during today’s guilty
In 2007 and 2008, two Ropes & Gray attorneys, ARTHUR
CUTILLO and BRIEN SANTARLAS, provided JASON GOLDFARB with
material, nonpublic information (“Inside Information”) about
several mergers and acquisitions of public companies for which
Ropes & Gray served as legal advisor. GOLDFARB, in turn,
delivered the Inside Information to ZVI GOFFER. The Inside
Information included information regarding the potential
acquisition of 3Com Corporation (“3Com”) and the potential
acquisition of Axcan Pharma, Inc. (“Axcan”). GOFFER is alleged
to have provided cash payments to GOLDFARB, CUTILLO, and
SANTARLAS in exchange for the Inside Information.
* * *
GOLDFARB, 32, pled guilty to one count of conspiracy
and one count of securities fraud. The conspiracy count carries
a maximum sentence of five years in prison, and the securities
fraud count carries a maximum sentence of 20 years in prison. He
faces a maximum fine of $250,000, or twice the gross gain or loss
from the offense on the conspiracy count and a maximum fine of $5
million on the securities fraud count.
GOLDFARB is scheduled to be sentenced by Judge SULLIVAN
on August 19, 2011, at 10:00 a.m.
CUTILLO and SANTARLAS both previously pled guilty to
conspiracy and securities fraud charges. Charges against GOFFER
remain pending and are merely accusations. He is presumed
innocent unless and until proven guilty.
Mr. BHARARA praised the work of the Federal Bureau of
Investigation and thanked the SEC for its assistance in the
investigation of this case.
This case was brought in coordination with President
BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which
Mr. BHARARA serves as a Co-Chair of the Securities and
Commodities Fraud Working Group. President OBAMA established the
interagency Financial Fraud Enforcement Task Force to wage an
aggressive, coordinated, and proactive effort to investigate and
prosecute financial crimes. The task force includes
representatives from a broad range of federal agencies,
regulatory authorities, inspectors general, and state and local
law enforcement who, working together, bring to bear a powerful
array of criminal and civil enforcement resources. The task
force is working to improve efforts across the federal executive
branch, and with state and local partners, to investigate and
prosecute significant financial crimes, ensure just and effective
punishment for those who perpetrate financial crimes, combat
discrimination in the lending and financial markets, and recover
proceeds for victims of financial crimes.
Assistant U.S. Attorneys ANDREW FISH and RICHARD
TARLOWE are in charge of the prosecution.
United States Attorney