Goffer Brothers' 2-Part Plan For Creating The Impression Of Trading On Fundamentals Rather Than Inside Info Not Exactly Airtight

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All that effort creating "an encyclopedia of everything" for nothing!

Mr. Plate said he believed 3Com was a good buy at the time based on its fundamentals. After discussing those beliefs at a bar one night, Mr. Plate said he was told by Emanuel Goffer to put those thoughts in an instant message the next day—giving them a reason for buying the stock, even though they had already done so. After being tipped separately on the Axcan deal, Mr. Plate said he was told by Zvi Goffer to tell anyone who asked that it was based on information another Schottenfeld trader had received from the company.

Prosecutors later played a secretly recorded phone call from February 2008 in which Mr. Goffer appeared to be coaching Mr. Kimelman on how to create a file justifying a trade. Prosecutors have alleged that Mr. Goffer was tipped about a possible buyout of PF Chang's China Bistro Inc. at the time. "Just print everything, I mean literally, everything's got to be printed out," Mr. Goffer said. "I was," Mr. Kimelman said. "You got to have, you got to have—seriously, it's got to be like the encyclopedia of everything."

Ex-Trader Testifies Zvi Goffer Shared Inside Tips [WSJ]

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