Jury selection has begun for the second Galleon Group insider trading trial, despite a motion to delay filed by one of the defendants, Emanuel Goffer. Goffer, his brother Zvi, and Michael Kimelman all worked at Incremental Capital hedge fund, founded by Zvi Goffer, a former Galleon trader.
The delay motion was set aside by U.S. District Judge Richard Sullivan, who said that the supposed reason for delay – the inflammatory nature of the first trial in which Raj Rajaratnam was found guilty – didn't make sense:
"The court sees no reason, and Goffer has not offered one, why potential prejudice resulting from a juror's familiarity with Rajaratnam's trial cannot be identified and addressed during jury selection."
Another motion, also rejected by Judge Sullivan, was offered by Kimelman, who claimed he had been denied his "right" to argue his innocence due to his rejection of a no-jail-time plea offer. The judge said the argument was of "little probative value."
Prosecutors are expected to offer at least wiretap tapes into evidence at the second Galleon trial. The government will also call a number of cooperating witnesses to testify for the prosecution.
First Trial Was Decided Early On
It was also learned today that jurors at the first Galleon trial had reached consensus on Rajaratnam's guilt early in their deliberations. Two jurors confirmed the early decision, despite requests by the trial judge Richard Holwell that jurors not speak to the press. Apparently, it was only an abundance of thoroughness that caused the long drawn-out deliberations that lasted 10 days and covered 14 counts against Rajaratnam.
Juror Leila Gonzalez Gorman let it be known that no juror ever objected to the guilty findings, though some did play "devil's advocate".
"We all wanted to give Raj the benefit of the doubt," Gorman told the Wall Street Journal. "I wanted to believe he was an honest man. How could someone so smart and rich already be involved in something so horrendous?"
© 2011 Hedge Fund Writer LLC
