Zvi Goffer was found guilty on 14 charges of securities fraud and conspiracy
on June 13th in Manhattan for his part in an alleged insider-trading
hedge fund fraud. The charges came after a nationwide crackdown on insider trading
by the US government. Michael Kimelman and Goffer’s brother, Emanuel
Goffer, were also convicted on three counts of conspiracy and securities fraud.
Goffer was a hedge fund trader with Galleon Group, LLC, whose co-founder
was recently convicted for allegedly directing “the biggest hedge
fund insider-trading scheme in history.” Goffer had been fired from
Galleon Group in 2008 and formed Capital LLC with his brother and Kimelman.
The three reportedly used tips from lawyers to make profitable trades.
The case is only one of three overlapping insider-trading cases that involve
banks, networking firms, hedge funds, and technology firms. Fourteen people
have been named in the alleged insider-trading ring. The SEC lawsuit claims
that $20 million was taken in by the scheme.
Wiretapping figured prominently in the case, and jurors listened to recordings
of phone calls along with witness testimony. Goffer allegedly made witnessed
phone calls during which he discussed his sources and ways to mislead
regulators and dodge questions.
Goffer’s lawyer stated that the case was “difficult”
and that Goffer is expected to appeal.
The investment misconduct lawyers with Meyer Wilson are dedicated to representing
victims of securities fraud nationwide in
stockbroker mediation, arbitration, and litigation claims.