Thursday, 23 October 2014
Last updated 3 hours ago
Jun 13 2011 | 12:38pm ET
Prosecutors maintained their perfect record in the Galleon Group insider-trading scandal this morning when a jury convicted three men on all counts in the case's second trial.
Almost exactly a month after Galleon founder Raj Rajaratnam suffered the same fate, Zvi Goffer, Emanuel Goffer and Michael Kimelman were found guilty of conspiracy and securities fraud. Each man faces up to 25 years in prison.
Prosecutors accused the men, three of 27 people charged in the case, of participating in an insider-trading ring led by Goffer and overlapping with that run by Rajaratnam. The Goffers and Kimelman were convicted of trading on confidential information between 2007 and 2009 after a trial that relied heavily on taped conversations and the testimony of cooperating witnesses, including a lawyer who said he was a major source of their insider tips.
The sweeping convictions—Zvi Goffer on 14 counts, Emanuel Goffer and Kimelman on three counts each—could be seen as something of a surprise. The three presented a minimalist defense—indeed, Zvi Goffer presented no defense at all—indicating that their legal teams may have been confident that prosecutors failed to prove their case. And Kimelman rejected a no-jail plea deal just before the trial began.
"We are enormously disappointed with the verdict as we believed the evidence clearly showed that Mr. Kimelman had not engaged in any insider trading," his lawyer, Michael Sommer, said. "We will of course pursue all avenues of appeal."
All three men worked at hedge fund Incremental Capital, founded by Zvi Goffer after stints at Galleon and Schottenfeld Group.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...