An appeals court has thrown out two recent convictions. Antony Currie and Reynolds Holding explain how prosecutors put similar cases at risk by stressing victory over justice.
So an appeals court decision has given clarity on insider trading the Wall Street Jude mean so. For the finance is involved on this but it's not say good news for the government which. This just on a couple of cases over ten that it won ending up a pretty good winning streak when you looked at this now yes. This is a personal assessment of the US attorney for the southern district in new York and one. Eighty plus convictions or guilty pleas on insider trading Brent real a real role yet and at one of these stories cases were appealed to the on Court of Appeals. Think yesterday. Overturn them but only reversed the convictions but. Throughout the case that you can and can't hippies of the deal behind this as well is that these these these two people involved had traded on information. That yes well it was put it that looks suspicious that they didn't necessarily know about why that's essentially run in as many of these cases do lead to eternal legal knew once the law's clear. That an insider corporate incentive for some of the material information and tips that information to someone else. Has to have some help benefited from the tip could have been paid for it on some other benefit that's the sort of deal with whistle blowers you don't care benefits in the 1%. Question what does the person they have that they tapped have to know. That they tip or the insider was paid right and that's really important in this case he had to hedge fund traders. Who were fourth steps removed from the insider you know they got information that somebody else cup with somebody else pick up some of sodium and got somebody else. And prosecutors said well we don't have to prove that those two guys knew the original insider was Peja snacks for the trip. Just that you know just that they'd run you know we can assume that they knew because they're professionals know that possible Yeltsin I don't know that's crazy otherwise. Who would know if you got information how much you know if you tried it out you were doing something wrong unless he knew the information was needed originally he's got a notice this say about the government cases that could be seen or read it well there's going to be some are there going to be in trouble at least one more there's an SEC capital guy Michael Steinberg you know. Went through a similar trial where the jury was not a structured correctly on this point the law he's appealing. Good chance that guy's gonna win it happens conviction reversed there may be others we don't know. But the good the important point here is that. Wall Street now has you know that it for years decades insider trading was very Fuzzy what's material what's breach of the duty what you know as a result tells you how we without oxygen that this. Sockets I just you know you can understand that you know well in all the laws kind of Fuzzy we want to win it's like you know that's our hearts that it is not supposed to win yeah that's true. Just its ranks this is from Casey has and he said he knew he suggested that the held views supreme called Walt becomes nasty thing we've just got to win when you try have to get these guys some of the damages terrible each one of these guys were sentenced to like half dozen years and in prison. You know millions of dollars in fines and their lives were ruined their lives are still you know they're they're hedge funds were put out of business by all of this and yet they were caught in a way that was you know what could well argue was not fair and that justice was not comment here we have a clear line. You know protect sort of fair trading in the future. Fax talk us through that rent them will be back with more breaking views tomorrow.