William Barzee, a federal criminal defense lawyer from Miami, Florida, served as the attorney for Zvi Goffer, one of the hedge fund employees charged in the Galleon Management insider trading case. Barzee argued that his client did not participate in insider trading and was, in fact, fired for his refusal to make trades based on insider information.
Years after the initial trial, the Galleon Management insider trading scandal continues to grow. In the latest wrinkle, the Securities and Exchange Commission (SEC) is investigating whether several former Major League Baseball players may have acted on insider information when making stock purchases. This segment of the case centers on former Baltimore Orioles players Eddie Murray and Doug DeCinces. The two played on the team together between 1977 and 1982 and have remained on friendly terms.
Prosecutors and SEC regulators are investigating whether Murray made suspicious purchases of Advanced Medical Optics stock in 2009, immediately before Abbott Laboratories acquired the medical device firm for $2.8 billion. DeCinces has already settled separately with the SEC, though he has admitted no wrongdoing. SEC investigators theorize that DeCinces received information from someone directly involved in the takeover, acted on the tip, and then passed the tip on to Murray. However, investigators have been having trouble narrowing down who the leaker was, since there appear to have been leaks at every stage of the process.