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Hedge-fund trader convicted of insider-trading seeks new trial

Michael Kimelman says prosecutors lacked evidence

Michael Kimelman, a former hedge-fund trader who was convicted of conspiracy and two counts of securities fraud in June, is seeking a new trial. Kimelman claims prosecutors had no evidence that he participated in illegal insider-trading in 3Com Corp.

According to prosecutors, Kimelman received inside information from Zvi Goffer, who supposedly received tips from two former Ropes & Gray lawyers. Goffer, Goffer’s brother and Kimelman were all convicted earlier this summer for their roles in the alleged scheme.

Kimelman’s lawyer says prosecutors had no evidence that Kimelman was aware that Goffer had inside information about 3Com.

Kimelman and his alleged cronies were convicted around the same time as Raj Rajartnam of Galleon Group as part of the government’s increased focus on busting insider-trading in corporate America.

Ashley Post

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