(Updates with excerpt from court papers in third paragraph.)
Sept. 30 (Bloomberg) -- Emanuel Goffer, convicted of insider trading with his brother Zvi Goffer, should be sentenced to as much as 63 months in prison, U.S. prosecutors said.
Emanuel Goffer, who is scheduled for sentencing on Oct. 7 by U.S. District Judge Richard Sullivan in Manhattan, asked last week for less than 46 months, saying he plays a critical role in raising a 3-year-old son who has developmental problems. Sullivan sentenced Zvi Goffer to 10 years in prison Sept. 21.
“Goffer’s active participation in this brazen insider trading scheme warrants a substantial sentence,” the government said in papers filed today, arguing in favor of a sentence within the range called for by non-binding federal guidelines.
Prosecutors Andrew Fish, Reed Brodsky and Richard Tarlowe wrote in their brief today that Goffer, who co-founded Incremental Capital LLC in New York, was responsible for instant messages and trades intended to provide cover for the illegal trades. He used an untraceable prepaid cell phone to pass tips to his brother and helped pay for the bribes to the two former lawyers who originated the tips, they argued.
The prosecutors said the federal guidelines call for Goffer to get from 51 months to 63 months in prison if Sullivan includes his trades in the shares of Hilton Hotels Corp. in his calculations. The guidelines, which aren’t binding on the judge, call for 41 to 51 months if Sullivan doesn’t consider the Hilton trades, they said.
In papers filed last week, Emanuel Goffer asked for a “tempered sentence” shorter than the guidelines range calculated by U.S. probation officials. Goffer said in the filings that his son isn’t meeting “age appropriate gross motor milestones.”
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.
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).
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