Insider trading probe ensnares 14 more

By Matthew Goldstein and Jonathan Stempel

NEW YORK (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," investigators alleged suspects dropped off bags full of cash, used prepaid cellphones to dodge wiretaps, and used nicknames such as "the Greek" and "the Octopussy."

"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," U.S. Attorney Preet Bharara told a news conference on Thursday.

"When sophisticated business people begin to adopt the methods of common criminals, we have no choice but to treat them as such," he added.

Federal prosecutors have alleged $40 million (24 million pounds) of insider trading profits from their investigation so far. The U.S. Securities and Exchange Commission has alleged $53 million of illegal profits in its own civil investigation. The SEC total includes some profits not reflected in the criminal probe.

The latest charges involve some of the same companies and individuals implicated in the Galleon Group insider trading scandal that broke three weeks ago. It was unclear whether the illegal networks were linked.

"People will probably ask just how pervasive is insider trading these days? Is this just the tip of the iceberg?" Bharara said. "We aim to find out."

RAJARATNAM BAIL REMAINS $100 MILLION