Tuesday, 25 October 2016
Last updated 16 hours ago
Oct 10 2011 | 12:03pm ET
Emanuel Goffer, convicted alongside his brother and another man of participating in the Galleon Group insider-trading scheme, has been sentenced to three years in prison.
Goffer, who worked at hedge fund Incremental Capital, founded with his brother, was also ordered to pay $760,000 in forfeitures of ill-gotten gains by U.S. District Judge Richard Sullivan, who sentenced Zvi Goffer to 10 years in prison last month.
"This was a deliberate scheme to procure inside information, privileged information, from a law firm by bribing lawyers, by corrupting them to breach their duties to their firm and to their customers," the judge said.
The Goffers were convicted of buying confidential information from lawyers at Ropes & Gray. Emanuel was also convicted of assisting his brother in an attempted cover-up of their illicit actions. Zvi Goffer, a former Galleon trader, was the ringleader of one of two interlocking insider-trading rings.
"You are clearly not your brother," Sullivan said. "But you knew better."
Sullivan did show Emanuel Goffer some mercy: His sentence was significant shorter than the more than five years prosecutors called for, and well less even that the 46 month maximum Goffer's own lawyers sought. The judge also acceded to Emanuel Goffer's request to serve his time alongside his brother at the federal prison in Otisville, N.Y.
"It's a close-knit family," Goffer's lawyer, Michal Ross, said.
Michael Kimelman, the third man convicted at the Goffer trial, will be sentenced this week.