The man, Michael Kimelman, co-founded trading firm Incremental Capital in New York with brothers Zvi Goffer and Emmanuel Goffer in late 2007.
All three were convicted by a Manhattan federal court jury in June on securities fraud and conspiracy charges, part of a broad investigation that also ensnared Galleon Group hedge fund founder Raj Rajaratnam.
Multimillionaire Rajaratnam, who was convicted at a separate jury trial in May, is scheduled to be sentenced on Thursday in what some legal experts predict could be a lengthy prison term for insider trading.
US District Court Judge Richard Sullivan, who imposed the 30 month-long sentence on Kimelman, had denied him a re-trial. Kimelman is appealing his conviction. In recent weeks, Sullivan sentenced Zvi Goffer, described as a ringleader, to 10 years in prison and Emmanuel Goffer to three years incarceration.
The jury found that the government proved its case against Kimelman, 40, and the Goffers who obtained inside information about mergers and acquisitions and traded on the information. Goffer worked at Galleon for nine months before starting his own firm.
Much like the trial of Rajaratnam, court-approved phone taps played a major role in the prosecution.
Sullivan also sentenced Kimelman, of Larchmont, New York, to three years of supervised release and ordered him to forfeit $289,079, about the same as his estimated illicit profits.
The case is USA v Zvi Goffer et al, US District Court for the Southern District of New York, No. 10-00056.
