Zvi Goffer, the former securities trader known as "Octopussy" because of his many sources of information, agreed to pay $1.6 million to settle SEC civil charges of insider trading.  IN a related criminal case, Goffer was found guilty and given a 10-year prison sentence and fined $10 million. The SEC brought  civil charges against Goffer in 2009, accusing him of tipping and trading on inside information related to pending mergers, including the acquisitions of Avaya Inc and failed acquisition of 3Com Corp in 2007 by Bain Capital Partners.  In one of two civil cases, Goffer will forfeit $1,014,758 in illegal profits plus $231,304 in interest, according to a court filing.  In a separate case dealing with alleged insider trading on different securities, Goffer agreed to give up $265,709 in improper gains plus $59,565 in interest, court records show.  Both settlements were approved last week. As noted above, Goffer stood trial in federal court on criminal charges, along with his younger brother, Emanuel, and a third trader, Michael Kimelman. of conspiracy to commit securities fraud.  He was found guilty by a jury and ordered to serve 10 years in prison and $pay a $10mn penalty. Zvi Goffer, who once worked at Raj Rajaratnam's Galleon Group hedge fund firm, was described by federal prosecutorse as the ringleader who paid tens of thousands of dollars in bribes to two Ropes & Gray lawyers to learn what corporate deals the firm was working on. The lawyers, Arthur Cutillo and Brien Santarlas, pleaded guilty to criminal charges.  Goffer attempted to conceal his conduct, the SEC alleged, by distributing disposable cell phones to both the sources and recipients of his tips. In a related SEC administrative proceeding, Goffer consented to an SEC order banning him from associating with any broker, dealer or investment advisor. Goffer's lawyer Alexander Dudelson was not immediately available for comment.  [Reuters 12/12/11]