LARCHMONT, N.Y. - Michael Kimelman will have to trade his suburban Larchmont home for a jail cell after being sentenced Wednesday to 30 months in federal prison for his part in an insider trading scheme, according to a U.S. Department of Justice press release .
In June, Kimelman, 40, was convicted of two counts of securities fraud and one count of conspiracy to commit securities fraud in Manhattan Federal Court. Wednesday, U.S. District Judge Richard Sullivan sentenced the former attorney and Wall Street professional.
Two co-defendants, Zvi Goffer and Emanuel Goffer, received 120 months and three years in prison respectively.
"Michael Kimelman was part of a corrupt network of insider traders who flagrantly violated the securities laws," U.S. Attorney Preet Bharara. "With todays sentence, every defendant who went to trial in connection with that scheme has been sentenced. We will continue to pursue those who illegally exploit their privileged positions for financial gain."
Kimelman made a combined $290,000 from trading based on insider information obtained about potential acquisitions of public companies 3Com Corporation, P.F. Changs China Bistro, Inc., and Clear Channel Communications, Inc.
In addition to the prison sentence, Sullivan ordered Kimelman to pay $289,079 and a $300 special assessment fee. He also received three years of supervised release.
The charges were in connection with a larger insider trading case that involved the Galleon Group, a large Wall Street hedge fund. According to the FBI, Kimelman turned down a plea bargain on charges of insider trading. Had he taken it, he would have received a sentence of probation.
Kimelman was arrested Nov. 5, 2009 as part of a large-scale case conducted by the U.S. Attorney's Office for the Southern District of New York, as well as the U.S. Securities and Exchange Commission.
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