UPDATE 5-US insider trading probe widens, ensnares 14 more

Thu Nov 5, 2009 10:05pm GMT
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* Founder of trading firm Incremental Capital charged

* Atheros Communications executive, lawyer also charged

* Among 5 to plead guilty is former Intel employee Khan

* Lee was working at SAC at time he admits to conspiring

* Suspects used "methods of common criminals"--prosecutor (Updates throughout with more from complaint, additional quotes and background)

By Matthew Goldstein and Jonathan Stempel

NEW YORK, Nov 5 (Reuters) - Fourteen people were charged with fraud and conspiracy in a dramatic widening of an insider trading scandal that has ensnared hedge fund managers, top Silicon Valley executives and a bevy of white-shoe advisers.

In complaints that read like scripts for the TV series "The Sopranos," prosecutors alleged suspects dropped off bags full of cash, used prepaid cellphones to dodge wiretaps, and used nicknames such as "the Greek."

"As we allege, some of the defendants -- taking a page from the drug dealer's playbook -- deliberately used anonymous, hard-to-trace, prepaid cellphones in order to avoid detection by law enforcement," federal prosecutor Preet Bharara told a news conference.  Continued...

 
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