Wednesday, 28 January 2015
Last updated 29 min ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…