Prosecutors Seek 63 Months For Goffer's Brother

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."


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note