Ropes & Gray Litigator Charged in Galleon Insider Trading Scheme; Madoff Prosecutor Is on the Case
By Alison Frankel
November 05, 2009
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Among the 14 people arrested Thursday in connection with the investigation of insider trading at the Galleon hedge fund is a Ropes & Gray litigation associate named Arthur Cutillo, who worked in the firm's New York office. Here's the page-turning criminal complaint, courtesy of the Business Insider.According to Brian Baxter at The Am Law Daily, Cutillo is alleged to have provided inside information on three transactions on which Ropes advised private equity clients. Ashby Jones at The Wall Street Journal's Law Blog reports that Cutillo is a Villanova law school grad who previously worked at Merck.
Ropes, which has removed Cutillo's name and resume from its Web site, put out this statement: "We are deeply disappointed about this situation, which suggests an extreme breach of this person's duty of trust to our clients and to the firm. We cannot comment in detail on an ongoing investigation but we are moving quickly to protect our clients and are cooperating fully with authorities."
Baxter notes that one of the Manhattan assistant U.S. attorneys leading the Galleon probe is former Litigator of the Week Marc Litt. We predicted Litt would have his hands full with Bernie Madoff madness for a while, but it looks like he's cleared some space in his docket. These are exciting times for fraud prosecutors; for defendants, not so much.
