A probe into the activities of the Galleon Group, in what is alleged to be the biggest insider trading scam in history, has already led to the resignations of IBM executive Robert Moffat and Globalfoundaries chairman Hector Ruiz.
Mr Moffat is one of the co-defendants in the case while Mr Ruiz has been accused of passing on secret information to one of the defendants, but has not been charged with any offence himself.
The new arrests are centred around accusations that Zvi Goffer, manager of trading firm Incremental Capital, lead his own insider trading ring that made $11 million worth of profit for him and his company.
Although both cases were investigated by the SEC using similar methods such as wiretaps, it remains unclear as to whether the reported Galleon and Incremental Capital insider trading rings are linked.
Mr Goffer, who previously worked for Galleon, was arrested along with his brother Emanuel and several lawyers associated with his trading firm.
Prosecutors have also revealed that five of those charged in relation to the Galleon investigation have decided to plead guilty to the accusations against them.
It is believed that the accused will now co-operate with the authorities to testify against Raj Rajaratanam, the founder of the Galleon Group and alleged mastermind of its illegal activities.
Choo-Beng Lee, a former colleague of Mr Rajaratnam, who was president of Californian hedge fund Spherix, has admitted to engaging in insider trading practices for several years, according to his co-operation agreement.
Ali Far, the founder of Spherix, has also confessed to the long-running nature of the hedge fund's illegal behavior.
But the key witness in the prosecution case is believed to be Roomy Khan, a former Intel employee who worked for the Galleon Group during the 1990s.