NY jury convicts 3 in NYC hedge fund trial
NEW YORK (AP) — Three stock traders have been convicted in the second federal trial stemming from a massive probe of insider trading at hedge funds.
A Manhattan jury reached its verdict Monday. It follows the conviction of Raj Rajaratnam (rahj rah-juh-RUHT'-nuhm), a one-time billionaire and hedge fund guru who was the investigation's biggest target.
Zvi Goffer, his brother Emanuel and Michael Kimelman were convicted of conspiracy to trade on confidential information. They had insisted they based trades on public information.
Like the Rajaratnam trial, the government relied on a trove of taped conversations. It said Zvi Goffer engineered a plot to pay the two lawyers for inside tips on mergers and acquisitions that generated millions of dollars in illegal profits.