The U.S. Second Circuit Court of Appeals agrees that he may have been ordered to pay a little bit too much in forfeiture over his little $10 million insider-trading scheme. Unfortunately, the same court thinks 10 years in prison sounds just about right.
Zvi Goffer, a former trader at Galleon Group who later formed his own hedge fund, was sentenced to 10 years in prison in September 2011 after he was convicted of conspiracy and securities-fraud charges. The sentence was one of the longest terms ever imposed for insider trading….
In its decision, the appellate court rejected arguments by Zvi Goffer's lawyer that the district judge penalized him for going to trial and improperly failed to consider his post-trial acceptance of responsibility, which would have potentially shaved as much as two years off his sentence.
"We find that Goffer was not punished for standing trial," the appeals court found.
The court also upheld the convictions of two of Goffer’s co-defendants, fellow Galleon alum Craig Drimal and Incremental co-founder Michael Kimelman. It did not escape the judge’s notice that Drimal had, you know, waived his right to appeal when he pleaded guilty two years ago. And if Kimelman didn’t want to spend two-and-a-half years in prison, he certainly had his chance to avoid it.
Appeals Court Upholds Three Insider Trading Convictions [Reuters via NYT]
Court Upholds Insider-Trading Conviction [WSJ]