Kimelman Faces Prison In Insider Trading Case

October 17 00:00 2011

New York, October 17 (RainbowNewsLine.com) – Mr Kimelman, a hardly known figure at Wall Street, faces prison for two years on the charges on insider trading. Wall Street is shocked to learn about this because Mr Kimelman is not the kind of person you would associate with insider trading. His net worth was barely a couple of millions and he had started a small firm called Incremental capital.

The charges are based on the accusation that Mr Kimelman made illegitimate trades on the stocks of 3Com is 2007. These trades were based on insider trading information that Mr Kimelman had received and led him to make close to $290,000 in profits which he must now forfeit.

According to the allegations, Mr Kimelman received information stating that 3Com is a target of hostile takeover from one of the law firms who had this knowledge. His firm had also paid bribe close to the tune of $100,000 to access this information.

Mr Kimelman agreed that now retrospectively he understands that the trade was illegal. However, he was just acting as an agent on behalf of the other partner. He had paid for the information, received the information and asked Mr Kimelman to make the purchase of a big block of 3Com shares. He just complied and is being sentenced to prison for a crime he did not do knowingly.

 

 

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