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Insider trading, Act II

November
5

For the second time in three weeks, U.S. Attorney Preet Bharara held a press conference to announce the filing of charges against several Wall Street execs in an ongoing investigation into insider trading on the street.

And once again, the feds’ have charged a Westchester man in connection with the alleged schemes.

Michael Kimelman, 38,  of Larchmont, who founded Incremental Capital, was accused of  securities fraud and conspiracy in one of  eight criminal complaints and felony information documents that were announced today. Kimelman was arrested by FBI agents at his home this morning.

The first shoe in the case dropped Oct. 16 when Bharara  announced the arrests of  six executives in connection with a $20 million insider trading case. Among those charged was Mark Kurland of Mount Kisco. The former president of a hedge fund company was charged along with one of the wealthiest men in the world, Raj Rajaratnam and now-former IBM executive Robert Moffat in the case.

This latest case was built on informants, wiretaps and intercepted phone calls — the staples of drug, organized crime, and anti-terrorism cases. It used to be that white collar cases were painstakingly built on reams of documents. That looks like it’s changing under Bharara as the feds appear willing to employ more aggressive tactics in rooting out white collar corruption.

Read the release from Bharara’s office here.

This entry was posted on Thursday, November 5th, 2009 at 3:09 pm by Tim O'Connor.
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Journal News reporters blog about the doings in state and federal courts in the LoHud region and beyond.

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