Confidential information leaked by a secretary to a senior corporate partner at Skadden, Arps, Slate, Meagher & Flom fed an insider trading ring that included the former chief of staff of New Jersey Governor James McGreevey, said the Southern District U.S. Attorney's Office and the Securities and Exchange Commission.
The SEC brought civil insider trading charges Wednesday in federal court in Manhattan against Fiore J. Gallucci, Ronald A. Manzo and Gary B. Taffet. Taffet served as McGreevey's chief of staff from 2000 to 2003.
Southern District U.S. Attorney David N. Kelley also announced Wednesday that Gallucci and Manzo had pleaded guilty to criminal charges. There are currently no criminal charges against Taffet.
According to the SEC complaint, Gallucci heard about proposed merger activity from his wife, who learned about it in the course of her work as a secretary in Skadden's New York headquarters.
I should mention that neither Skadden nor the partner, Roger S. Aaron, are accused of any wrongdoing. Details here from the New York Law Journal via Law.com.