Judge Brian M. Cogan found there was insufficient evidence of criminal intent to convict Mr. Levy, and granted Mr. Nordlicht a new trial. In July, a jury had found the men, both executives at Platinum Partners, guilty of securities fraud, conspiracy to commit securities fraud and conspiracy to commit wire fraud.
The case revolved around an oil and gas company, Black Elk, which Platinum Partners controlled. A number of Black Elk’s bonds were held by Beechwood, an affiliate of Platinum Partners. At issue was whether Black Elk’s bondholders knew that Platinum Partners controlled Beechwood when they voted on changing the protections for bondholders, which provided a more favorable outcome for Platinum.
via What a Judge’s Rare Reversal Means in the Platinum Partners Fraud Case – The New York Times.
