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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInJudges Deal Latest Blow to SEC’s In-House Courts – WSJ
In the case decided Wednesday, the judges ruled that a nearly decade-old SEC enforcement action against a small hedge-fund manager was invalid because it violated his right to a jury trial. An SEC judge in 2014 found George Jarkesy liable for fraud, ordering him to pay a $300,000 fine and barring him from the securities […]
U.S. Supreme Court rejects insider trading appeal by Las Vegas gambler – Reuters
The U.S. Supreme Court on Monday refused to hear Las Vegas sports gambler William “Billy” Walters’ appeal of his 2017 insider trading conviction that landed him a five-year prison sentence in a case that also drew attention because of his ties to billionaire investor Carl Icahn and golfer Phil Mickelson. Walters had asked the justices […]
Federal court to hear ‘Pharma Bro’ Martin Shkreli’s appeal – Reuters
Lawyers for former pharmaceutical executive Martin Shkreli will urge a federal appeals court on Friday to overturn his criminal conviction for defrauding investors in hedge funds he founded. via Federal court to hear ‘Pharma Bro’ Martin Shkreli’s appeal – Reuters.
D.C. Circuit Tells SEC That a Negligent Omission Can’t Be Willful | Insights | Sidley Austin LLP
A decision this week by the U.S. Court of Appeals for the D.C. Circuit rejected the traditional approach of the Securities and Exchange Commission that “willful” conduct is a low standard that simply means that a respondent knows what he or she is doing. On April 30, in The Robare Group, LTD. v. SEC, No. […]
US court rejects Goldman Sachs Rajat Gupta’s bid to overturn insider-trading conviction – The Economic Times
The Second Circuit Court of Appeals, in an order issued Monday, said “we have considered all of Gupta’s arguments on this appeal and have found them to be without merit. The judgment of the district court is affirmed.” Gupta, 70, is a free man now after completing a prison term in 2016 on insider trading […]
Conviction of SAC’s Martoma upheld despite jury instructions | Reuters
In an unusual 2-1 decision, the 2nd U.S. Circuit Court of Appeals, which had upheld Martoma’s conviction and nine-year prison term in August 2017, withdrew its finding at that time that the jury instructions were “not obviously erroneous.” It said the instructions wrongly allowed a conviction solely on evidence that a Michigan doctor had tipped […]
Jailed Ex-Perella Banker May Be Freed in Insider-Trading Appeal – Bloomberg
A former Perella Weinberg Partners LP banker convicted of tipping his father to five health-care mergers may be the latest insider-trader to win his freedom, as another case threatens to fall apart on appeal. In an unusual request that signals the court may have decided to overturn all or part of Sean Stewart’s conviction, a […]
Lynn Tilton Wins SEC Fraud Trial She Had Worked Hard to Avoid – Bloomberg
SEC administrative law judge Carol Fox Foelak ruled in favor of Tilton over allegations that she and her firm, Patriarch Partners LLC, bilked investors out of more than $200 million. “It is concluded that the violations” alleged by the SEC are “unproven,” Foelak wrote in her ruling issued Wednesday. “Thus, the proceeding will be dismissed.” The […]
The Martoma Decision: The Second Circuit Tackles Insider Trading Post-Salman | The National Law Review
The US Court of Appeals for the Second Circuit issued another landmark insider trading opinion on August 23. In United States v. Martoma, the Second Circuit loosened the standard required for the government to establish tipping liability, handing the government a significant victory in this key enforcement area. Martoma is the latest in a string […]
In a Boon to Prosecutors, Insider Trading Ruling Is Reshaped – The New York Times
The decision of the United States Court of Appeals for the Second Circuit in Manhattan in United States v. Newman, which roiled the world of insider trading when it was announced in December 2014, seems to be relegated to little more than a footnote in the history of securities fraud with an opinion from the […]