Convicted Insider-Trader Enters 'Re-education Camp'

Dec 13 2011 | 2:17am ET

Michael Kimelman, the former hedge fund trader who rejected a no-jail plea deal in the Galleon Group case only to be convicted and sentenced to two-and-a-half years in prison, began to serve the time he could have avoided yesterday.

Kimelman, a former trader at Incremental Capital, reported to the U.S. Penitentiary in Lewisburg, Pa., a week after Galleon Group founder Raj Rajaratnam began his own 11-year sentence at another federal facility. Kimelman was convicted in June of conspiracy and securities fraud alongside Zvi Goffer, a former Galleon trader who led one of two interlocking insider-trading rings, and his brother, Emanuel Goffer.

That conviction came despite Kimelman's own conviction that he could beat the rap. He turned down prosecutors' probation-only offer just weeks before the trial began, an action his lawyer called "probative of a state of mind devoid of guilty knowledge."

Kimelman announced his new circumstances via an automated response on his e-mail account. The response reads, "This email address is currently at a re-education camp for the indeterminate future and will not be checked. Please try back once its lesson has been learned."

Kimelman's lawyer said his client should have some sort of e-mail access in prison.

In Depth

Q&A: Biotech Investing with Crossover Fund RA Capital

Sep 15 2015 | 5:40pm ET

Boston-based RA Capital Management is an intriguing mix of sophisticated life sciences...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note

Upcoming Events