Bloomberg News

Emanuel Goffer Seeks Prison Term of Less Than 46 Months

September 23, 2011

(Updates with excerpts from filing in third paragraph.)

Sept. 23 (Bloomberg) -- Emanuel Goffer, convicted of insider trading with his brother Zvi Goffer, is seeking a prison term of less than 46 months, saying he plays a critical role in raising a 3-year-old son with developmental problems.

Emanuel Goffer is set to be sentenced Oct. 7 before U.S. District Judge Richard Sullivan in Manhattan, who imposed a 10- year prison term on his brother this week.

In court papers filed today, Emanuel Goffer asked for a “tempered sentence” shorter than the 46- to 57-month federal sentencing guidelines range calculated by U.S. probation officials. Goffer said in the filings that his son isn’t meeting “age appropriate gross motor milestones.”

“There are compelling reasons to impose a tempered sentence upon Mr. Goffer,” according to the filings. “We ask that the court take into consideration the deep and profound needs of his son, who faces significant developmental challenges.”

Goffer also disputes a U.S. finding that he earned more than $2 million by insider trading.

Jerika Richardson, a spokeswoman for the office of U.S. Attorney Preet Bharara, declined to comment.

Both Goffer brothers were convicted in June along with Michael Kimelman. A jury found Zvi Goffer guilty of 14 counts of conspiracy and securities fraud, while Emanuel and Kimelman were both convicted of one count of conspiracy and two counts of securities fraud.

Law Firm Tips

Zvi Goffer led an insider ring that used information misappropriated by two lawyers to make more than $10 million trading in shares of 3Com Corp., Axcan Pharma Inc., Kronos Inc. and Hilton Hotels Corp., prosecutors said at trial.

The three men co-founded Incremental Capital LLC after Zvi Goffer was fired from New York-based Galleon Group LLC in 2008, the U.S. said. Testimony showed he used information from lawyers at the Boston-based law firm Ropes & Gray LLP who had learned about pending acquisitions through their work.

Zvi Goffer’s former boss, Galleon co-founder Raj Rajaratnam, was found guilty in May of directing the biggest hedge fund insider-trading scheme in history. His sentencing is scheduled for Oct. 13.

The case is U.S. v. Goffer, 10-cr-00056, U.S. District Court, Southern District of New York (Manhattan).

--Editors: Andrew Dunn, Michael Hytha

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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