“A unanimous three-judge panel (of the 2nd U.S. Circuit Court of Appeals) concluded that Mr. Bharara (U.S. Attorney) never presented enough evidence that the two men broke the law, and that Richard Sullivan, the federal judge who presided over the case, had made egregious errors in law in his charge to the jury…

…No evidence. None. Yet the two defendants have had to endure years of public trial and threat of prison. Mr. Bharara should apologize for bringing the case. The abusive prosecution stems from the habit of federal enforcers—at the Justice Department and Securities and Exchange Commission—to define insider trading by ever greater degrees of separation from the source of the insider knowledge.”,”An Outside the Law Prosecutor”, Wall Street Journal


““Marc Powers, a partner at law firm Baker & Hostetler LLP (not involved in the case), said the U.S. attorney and the Securities and Exchange Commission “have been pushing the boundaries of the law and the facts in insider-trading cases, beyond fairness and reason. The Second Circuit appears now to be setting the government straight,” he said”, “Court Overturns Insider-Trading Convictions, A Blow to Justice Department”, Wall Street Journal


“Although the government might like the law to be different, nothing in the law requires a symmetry of information in the nation’s securities markets,” Judge Barrington D. Parker wrote on behalf of a panel that also included Judge Ralph K. Winter Jr. and Judge Peter W. Hall….. The appellate court, in a footnote, implied that prosecutors steered Mr. Steinberg’s case to Judge Sullivan because he would be predisposed to give the same flawed jury instruction as he had done in the trial of Mr. Chiasson and Mr. Newman. In April, at a hearing on the appeal, the three-judge panel raised concerns about the unsavory courthouse practice that is known as judge shopping.”, “Appeals Court Deals a Setback to U.S. Crackdown on Insider Trading”, New York Times


Posted on December 11, 2014, in Postings. Bookmark the permalink. Leave a comment.

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