Probe extended for 8 accused in U.S. insider case

Eight people charged in a coast-to-coast U.S. hedge fund insider trading investigation have at least one more month for possible resolution of their cases, according to court records on Monday.

The eight were among 14 people charged with fraud on November 5 in a 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.

The investigation ensnared hedge fund managers in New York and Silicon Valley executives in California as well as advisers.

A docket entry in Manhattan federal court of an order to continue in the interest of justice gave 30 days for defendants Zvi Goffer, Arthur Cutillo, Jason Goldfarb, Craig Drimal, Emanuel Goffer, Michael Kimelman and David Plate. A similar separate entry was made for an eighth defendant, Ali Hariri, whose case will also continue until at least January 6.

In the largest branch of the investigation, Zvi Goffer, manager of New York-based trading firm Incremental Capital and nicknamed Octopussy, was accused of leading an insider trading ring that netted $11 million, according to prosecutors.

Goffer's lawyer, Cynthia Monaco, declined to comment on Monday.

The government may bring an indictment during the next month, or the parties could reach a resolution of the case, or it could be extended for one more month into February.

Five defendants have pleaded guilty and are cooperating with prosecutors. Another is believed to be in India and has not made any court appearances in the United States.

The cases are USA v Zvi Goffer et al, U.S. District Court for the Southern District of New York, No. 09-02438.

USA v Ali Hariri, U.S. District Court for the Southern District of New York, No. 09-02436.

(Editing by Steve Orlofsky)