Rajaratnam Associate Sentenced to 10 Years in Insider Trading Scheme
9:22 am, September 22nd | by Amy Tennery
Zvi Goffer, a Galleon Group trader who was convicted in a massive insider trading scheme alongside his brother, Emmanuel, and another defendant, Michael Kimelman, in June, has been sentenced to 10 years behind bars, according to reports late last night. While the latter two defendants in this insider trading circle (considered, arguably, the largest ever) still await sentencing, this development could provide some insight into their possible prison length.
The news, however, carries particular weight for Raj Rajaratnam, the Galleon Group head at the center of the insider trading scheme. Since word broke about Goffer’s sentencing, some legals experts have claimed that it’s a bad sign for Rajaratnam, thought to be the ringleader in the case.
One report from the New York Post extrapolated off of Goffer’s sentencing, suggesting that it portends a 20-year stint in the pen for Rajaratnam. That’s a lot higher than what the trader’s attorney was going for — earlier this month, Rajaratnam’s legal team called prosecutors’ recommendations “grotesquely severe.” And, before that, he claimed he was too sick for prison. Yikes.
Rajaratnam is set to be sentenced October 13.