US prosecutors extend Galleon criminal case for 8 defendants

 The Monday document prolonged the term for the eight people charged in a coast-to-coast U.S. hedge fund insider trading investigation to provide them with an opportunity for possible resolution of their criminal cases. The document involves eight people who were among 14 defendants charged with fraud on November 5 in the widening of an insider-trading scandal that initially shook hedge funds in mid-October with the arrest of Galleon Management LP's billionaire founder Raj Rajaratnam.

A document filed in Manhattan federal court said prosecutors and defense lawyers "have consented that the continuance may be granted for the purpose of receiving and reviewing certain pre-indictment discovery and discussing dispositions in the case."

According to the new ruling by January 6, prosecutors may bring an indictment, or the parties could reach resolution of the cases, or the time for discussions and assessing evidence could be extended into February.

The defendants whose criminal cases have been extended by Monday's orders include: Zvi Goffer, who previously worked at Galleon, Arthur Cutillo, Jason Goldfarb and Michael Kimelman, all lawyers; former Galleon employee Craig Drimal, Zvi Goffer's brother Emanuel, David Plate of Incremental Capital and Atheros Communications Inc executive Ali Hariri.