Michael Kimelman Sentenced to 30 Months in Galleon Insider Trading Case
1:02 pm, October 12th | by Amy Tennery
Michael Kimelman, the Incremental Capital hedge fund manager who became embroiled in the massive Galleon Group insider trading web, was sentenced to 30 months behind bars today. Kimelman, who was tried alongside codefendants Zvi and Emanuel Goffer, was convicted in June.
But while Kimelman may seem like just another player in a vast securities fraud scheme, there’s one detail that sets him apart from all the other Galleon defendants: he actually turned down a non-jail plea deal. Yep, it stinks to be Michael Kimelman right now.
At the time he entered his not guilty plea, Kimelman’s attorney argued his decision was proof of innocence:
“Mr. Kimelman’s decision to decline a non-jail sentence, persist in his plea of not guilty, and face the possibility of a sentence of imprisonment if convicted at trial is probative of a state of mind devoid of guilty knowledge. It bears emphasizing that Mr. Kimelman did not just reject a plea agreement. He rejected a non-jail sentence.”
At his sentencing, according to the Wall Street Journal, Kimelman said he was “ready to pay the price and face the consequences for my decision.”
On the upside for him (if one were to look for an upside here, which… yea, still not sure on that one), Kimelman’s sentence is among the most lenient of those nabbed in the Galleon web so far. The aforementioned Zvi and Emanuel Goffer received 10 years and three years in prison, respectively, while attorney Jason Goldfarb (who, by most accounts, played a relatively small role in the scheme) is currently serving a three-year sentence.
Also (if we were continuing to look on the bright side on Kimelman’s behalf), the sentence came from Judge Richard Sullivan one of the most feared judges in these types of cases. It could have been much, much worse.
Of course, the real finale for the Galleon Group insider trading saga will come tomorrow, when ringleader Raj Rajaratnam is scheduled to be sentenced. He’s currently facing up to a quarter-century behind bars.