Closing arguments begin at NY finance trial

By the Associated Press | June 1, 2011 | 10:12 AM EDT

NEW YORK (AP) — Closing arguments have begun in the New York trial of three men arrested in what prosecutors call the biggest hedge fund insider trading probe ever.

The arguments were expected to last all day Wednesday. They'll include the replaying of some of the hundreds of taped phone conversations made by the government.

Prosecutors have said the defendants, led by Zvi Goffer, (Zvee GOH'-fur), conspired with lawyers at a Manhattan firm. Authorities say they used secrets about pending mergers and acquisitions to get ahead in the stock market.

The trial has three defendants, including two brothers. Defense lawyers say the men only traded based on public information.

It's the second trial to result from the probe. In the first, the founder of Galleon Group hedge funds was convicted on insider trading charges.