Wednesday, 26 October 2016
Last updated 15 hours ago
Oct 3 2011 | 12:14pm ET
The brother of one of the Galleon Group insider-trading scandal's ringleaders should spend up to five years in prison, prosecutors argued Friday.
In a sentencing memorandum filed with U.S. District Judge Richard Sullivan, the government said that Emanuel Goffer's "active participation in this brazen insider trading scheme warrants a substantial sentence" of up to 63 months in prison. Federal sentencing guidelines call for a sentence of between 51 and 63 months if Sullivan considers Goffer's trades in Hilton Hotels Corp. shares, and 41 to 51 months if he doesn't.
According to prosecutors, Goffer, convicted in June of conspiracy and securities fraud, passed confidential information to his brother, Zvi, co-founder with Emanuel of hedge fund Incremental Capital, and made payments to tipsters. He also helped his brother attempt to cover up their illegal activity.
Sullivan last month sentenced Zvi Goffer, who formerly worked at Galleon Group, to a decade behind bars.
In their own sentencing memorandum, Emanuel Goffer's lawyers argued for a sentence of less than 46 months. The defense team said that their client plays a major role in raising his 3-year-old son, who is failing to meet "age-appropriate gross motor milestones."