American Consequences - October 2017

Hard Time and No Appeal Kimelman’s stay at Pennsylvania’s notorious Lewisburg Penitentiary wasn’t near a “Club Fed” experience. The Federal Bureau of Prisons put his two co-defendants in with him, and one of them blamed him for everything that went wrong during the trial. Worse, a prison bounty was put on Kimelman, and his co-defendant bragged to other inmates that he had hired someone to rape Kimelman’s eight-year-old daughter. And then he promised to do the same, himself. There is little escape once you are in the crosshairs of the government... Since Michael Kimelman’s trial, the judge on his case has been overturned multiple times by the Second Circuit Court of Appeals. He was the only judge on the circuit who refused to instruct properly on “knowledge and benefit” – meaning the trader must know that his source is being rewarded for sharing his information. There was no evidence that Kimelman knew the information was from an insider... or that he knew the source had been rewarded. The shadow of reasonable doubt is overwhelming. Using a similar argument, the verdicts for about a dozen other high-profile insider- trading convictions were overturned in the past three years. Not so for Kimelman. The appeal on his behalf went back to the same judge that had made the mistake. Essentially,

Since his release, Michael Kimelman has become an advocate for inmates re-acclimating into society, giving keynotes and seminars, and penning a memoir, Confessions of a Wall Street Insider: A Cautionary Tale of Rats, Feds, and Banksters . He currently performs his lawyers were asking the judge to overrule himself... The judge denied the request earlier this year.

compliance consulting for hedge funds through his

company, Tradecraft Advisers, and is a partner at a firm that offers advice on cryptocurrency markets.

Turney Duff is a former trader at one of the biggest hedge funds in the world, the Galleon Group, where its founder and several Galleon employees were found guilty of insider trading. Turney rose through the ranks and then fell prey to the trappings of Wall Street: money, sex, drugs, alcohol, and

power. Turney chronicles his spectacular rise and fall in his bestselling book, The Buy Side: AWall Street Trader’s Tale of Spectacular Excess .

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