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Friday, May 24, 2024 | Back issues
Courthouse News Service Courthouse News Service

Another Sentencing in Feds’ Galleon Takedown

MANHATTAN - A federal judge ordered a 30-month sentence Wednesday for Michael Kimelman, the lawyer convicted in June amid the massive inside-trading case that took down billionaire Raj Rajaratnam, who faces sentencing Thursday.

Kimelman, 40, must also forfeit more than $289,000 in ill-gotten gains.

At trial, prosecutors showed that a former trader with Rajaratnam's Galleon hedge fund masterminded a scheme to bribe two lawyers with Ropes & Gray for confidential information about corporate mergers and acquisitions.

Goffer, his brother Emanuel Goffer, and Kimelman then used these tips to place trades. Zvi Goffer was sentenced to 10 years in prison last month. Emanuel Goffer was sentenced last week to three years.

One of the Ropes & Gray lawyers, Arthur Cutillo, was previously sentenced to 30 months. The other lawyer, Brien Santarlas, faces sentencing on Oct. 28.

Jason Goldfarb, yet another lawyer who passed the Ropes & Gray information onto Goffer, was sentenced to three years.

Kimelman, who maintained his innocence throughout trial, plans to appeal.

Prosecutors say the scheme represents part of the various inner-workings of Rajaratnam's sprawling $64 million conspiracy at Galleon. The Sri Lankan-born businessman faces up to 24 1/2 years at his sentencing on Thursday.

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