AT A GLANCE: 14 Charged In Continuing Insider-Trading Probe

In court documents, prosecutors alleged that Incremental Capital founder Zvi Goffer, a former Galleon Group and Shottenfeld Group LLC employee, and his co- conspirators operated an "insider trading network" that obtained nonpublic information on possible mergers and acquisitions in which the law firm Ropes & Gray "played a role." The court documents also accused Goffer of receiving the information, trading on it and then passing it on to co-conspirators, who made similar profitable trades.

Arthur Cutillo, a lawyer with Ropes & Gray, allegedly gave inside information to Jason Goldfarb, another attorney, who passed it on to Goffer.

The acquisitions include a 2007 deal where Avaya Inc. agreed to a merger with Silver Lake and TPG Capital, which were legally advised by Ropes & Gray.

The firm also legally advised Bain Capital Partners LLC in its failed bid to acquire 3Com Corp (COMS). Goffer allegedly told the cooperating witness that his source gave him details about 3Com and three other deals, according to the complaint.

ANOTHER CASE: In a sidelight to that alleged network, Deep Shah, a former Moody's Investor Service analyst, was charged with passing information to Roomy Khan, a hedge-fund manager who briefly worked for Galleon in the late 1990s. She is the tipster who investigators say touched off the recent insider-trading case involving the Galleon hedge-fund firm.

THE BACKGROUND: The arrests follow criminal charges last month against Raj Rajaratnam, founder of hedge-fund Galleon Group, and five others in a $20 million insider-trading case. More arrests for insider trading were expected after that, and some of the individuals arrested Thursday had ties to the Galleon case.

Some of the alleged trades in Thursday's charges were made on information similar to that obtained and traded on by Rajaratnam, including the announcement of an acquisition of Hilton Hotels Corp. by Blackstone Group LP (BX) in July 2007.

THE NEXT STEP: Given that this is a continuing investigation, Wall Street is wondering about the possible links between the initial Galleon case, the Goffer case and the ex-Moody's analyst case--and what shoe might drop next.

For more Dow Jones Newswires coverage of the case, please see:

14 Charged In Insider-Trading Investigation
List Of Individuals Linked With Galleon Insider-Trading Probe
WSJ BLOG/Deal Journal: Galleon, The Movie
WSJ BLOG/Market Beat:Insider Traders May Have Been Inspired By 'Wire'
Judge Won't Reduce $100M Bail For Galleon's Rajaratnam

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