Fourteen people, including Roomy Khan, the informant whose tip led to the arrest of Galleon hedge fund founder Raj Rajaratnam last month, were arrested Thursday and charged with insider trading and conspiracy. Nine of the 14 individuals—many associated with trading firm Incremental Capital—were charged with three criminal complaints alleging that Incremental Capital founder and former Galleon employee Zvi Goffer managed an "insider-trading network" that obtained and acted on confidential information—some of it, such as the Blackstone Corp. acquisition of Hilton Hotels, similar to the information received by Rajaratnam. Khan is said to have used familial connections to a Moody's analyst, Deep Shah, to acquire information; she and Shah are being charged with a separate criminal complaint. As with the Galleon case, law-enforcement officials have said that wiretaps and recorded conversations were essential to the pursuit and eventual arrest of the accused individuals. Galleon and Incremental Capital declined to comment.