Not guilty plea from ex-trader

A 33-year-old trader nicknamed “Octopussy” pleaded not guilty to charges of insider trading yesterday, setting the stage for him and at least six of his pals to battle the securities fraud allegations in court.

Zvi Goffer, who got his James Bond-inspired nickname for his reputation of having lots of information sources, has been accused by federal prosecutors of running an insider-trading ring.

The case is peripherally associated to an alleged ring centering on Galleon founder Raj Rajaratnam, who, along with hedge fund consultant Danielle Chiesi, pleaded not guilty last month in connection with the Galleon case.

But even as Goffer and friends pleaded their innocence, one of their former associates, David Slaine, pleaded guilty last month after striking a deal with prosecutors to cooperate with the feds’ investigation, according to documents that were unsealed yesterday.

Slaine is reportedly friends with Craig Drimal, one of the seven men who pleaded not guilty in the Octopussy case. Drimal worked in Galleon’s office, though he wasn’t a Galleon employee.