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Supreme Court declines to review insider trading case
Legal Watch |
2015/10/03 22:00
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The Supreme Court said Monday it won't hear the Obama administration's appeal of a lower court ruling that made it tougher to prosecute people for trading on leaked inside information.
The justices let stand a decision by the federal appeals court in New York last year that threw out insider trading convictions of two high-profile hedge fund managers.
The 2nd U.S. Circuit Court of Appeals overturned the convictions of Anthony Chiasson, of Manhattan, and Todd Newman, of Needham, Massachusetts, after finding they were too far removed from inside information to be prosecuted.
Prosecutors warned the ruling could hinder the government's campaign to curb insider trading on Wall Street, a crackdown that has resulted in more than 80 arrests and 70 convictions over several years.
Chiasson, who co-founded Level Global Investors based in Greenwich, Conn., and Newman, who had worked for Diamondback Capital Management based in Stamford, Conn., traded on tips from insiders on stock in technology companies Dell Inc. and Nvidia Corp. that generated $72 million in profits. The former portfolio managers were both convicted in December 2012.
The appeals court said prosecutors failed to present enough evidence the men willfully engaged in insider trading or conspired to break the law. It ruled that the government must show a person receiving a tip knew that an insider disclosed confidential information and that the tipster passed the information expecting a personal benefit.
In legal briefs filed with the court, Solicitor General Donald Verrilli said leaving the appeals court ruling in place would "hurt market participants, disadvantage scrupulous market analysts and impair the government's ability to protect the fairness and integrity of the securities markets."
Both men have denied insider trading. Their lawyers argued that they believed they were making trades based on legitimate research.
U.S. Attorney Preet Bharara in Manhattan told reporters on a conference call Monday that the Supreme Court's decision means "that there's a category of conduct that arguably will go unpunished going forward."
"If you have a CEO who has access to material, non-published information about earnings or anything else of a very sensitive nature and decides he wants to tip a relative or a buddy or a crony, knowing that person is going to trade on it to the tune and profit of millions of dollars, we would have to think long and hard, given Newman, whether to prosecute a person like that," Bharara said.
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Arkansas court tosses conviction in woman's meth case
Court Center |
2015/10/02 21:59
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The Arkansas Supreme Court on Thursday overturned the conviction of a woman who was sentenced to 20 years in prison after giving birth to a baby with methamphetamine in his system.
Melissa McCann-Arms, 39, was convicted by a jury in Polk County after she and her son tested positive for meth when she gave birth at a Mena hospital in November 2012. She was convicted of a felony crime called introduction of controlled substance into body of another person.
In January, the Arkansas Court of Appeals upheld the conviction, ruling that even if the statute doesn't apply to unborn children, McCann-Arms still transferred the drug to her child in the moments between his birth and when hospital staff cut the umbilical cord.
But Arkansas' highest court reversed the conviction and dismissed the case, ruling there is no evidence McCann-Arms directly introduced methamphetamine into her baby's system by causing the child to ingest or inhale it. Likewise, there is no evidence of an ongoing transfer of methamphetamine in McCann-Arms' system after the child was born, the court ruled.
"The jury would thus have been forced to speculate that Arms was 'otherwise introducing' the drug into the child at that point," the ruling states. "When a jury reaches its conclusion by resorting to speculation or conjecture, the verdict is not supported by substantial evidence."
The court also ruled state law does not criminalize the passive bodily processes that result in a mother's use of a drug entering her unborn child's system.
"Our construction of criminal statutes is strict, and we resolve any doubts in favor of the defendant," the decision states. "The courts cannot, through construction of a statute, create a criminal offense that is not in express terms created by the Legislature."
Farah Diaz-Tello, a staff attorney with the New York-based National Advocates for Pregnant Women, had urged the court to reverse McCann-Arms' conviction and said the decision sends a message to state prosecutors about expanding the law beyond what was intended by state lawmakers.
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Connecticut court stands by decision eliminating execution
Top Legal News |
2015/10/01 21:59
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The Connecticut Supreme Court on Thursday stood by its decision to eliminate the state's death penalty, but the fate of capital punishment in the Constitution State technically remains unsettled.
The state's highest court rejected a request by prosecutors to reconsider its landmark August ruling, but prosecutors have filed a motion in another case to make the arguments they would have made if the court had granted the reconsideration motion.
Lawyers who have argued before the court say it would be highly unusual and surprising for the court to reverse itself on such an important issue in a short period of time, but they say it is possible because the makeup of the court is different. Justice Flemming Norcott Jr., who was in the 4-3 majority to abolish the death penalty, reached the mandatory retirement age of 70 and was succeeded by Justice Richard Robinson.
In the August decision, the court ruled that a 2012 state law abolishing capital punishment for future crimes must be applied to the 11 men who still faced execution for killings committed before the law took effect. The decision came in the case of Eduardo Santiago, who was facing the possibility of lethal injection for a 2000 murder-for-hire killing in West Hartford.
The 2012 ban had been passed prospectively because many lawmakers refused to vote for a bill that would spare the death penalty for Joshua Komisarjevsky and Steven Hayes, who were convicted of killing a mother and her two daughters in a highly publicized 2007 home invasion in Cheshire.
The state's high court said the death penalty violated the state constitution, "no longer comports with contemporary standards of decency," and didn't serve any "legitimate penological purpose." The majority included Norcott and Justices Richard Palmer, Dennis Eveleigh and Andrew McDonald, the same four justices that rejected the prosecution's reconsideration request Thursday.
Chief Justice Chase Rogers and Justices Peter Zarella and Carmen Espinosa bashed the majority in the Santiago case, accusing the other four justices of tailoring their ruling based on personal beliefs. The three dissenting justices also were in favor of the prosecution's motion to reconsider.
Chief State's Attorney Kevin Kane had said the majority justices unfairly considered concerns that had not been raised during Santiago's appeal and denied prosecutors the chance to address those concerns. He said prosecutors have filed briefs in the still-pending death penalty appeal of Russell Peeler Jr., raising the same issues they did in the motion for reconsideration in the Santiago case.
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High court weighs 3 death sentences in Kansas cases
Opinions |
2015/09/28 21:59
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The Supreme Court on Wednesday seemed likely to rule against three Kansas men who challenged their death sentences in what one justice called "some of the most horrendous murders" he's ever seen from the bench.
The justices were critical of the Kansas Supreme Court, which overturned the sentences of the men, including two brothers convicted in a murderous crime spree known as the "Wichita massacre."
It was the first high court hearing on death penalty cases since a bitter clash over lethal injection procedures exposed deep divisions among the justices last term.
The debate this time was over the sentencing process for Jonathan and Reginald Carr and for Sidney Gleason, who was convicted in a separate case of killing a couple to stop them from implicating him in a robbery.
The Kansas Supreme Court overturned death sentences in both cases, saying the juries should have been told that evidence of the men's troubled childhoods and other factors weighing against a death sentence did not have to be proven beyond a reasonable doubt.
The state court also ruled that the Carr brothers should have had separate sentencing hearings instead of a joint one. It said Reginald Carr's sentence may have been unfairly tainted because Jonathan Carr blamed Reginald for being a bad influence during their childhoods.
While the attorneys on both sides focused on the legal technicalities, several of the justices couldn't help but dwell on the sordid facts of the Carr case during two hours of oral argument.
Justice Samuel Alito said it involves "some of the most horrendous murders that I have ever seen in my 10 years here. And we see practically every death penalty case that comes up anywhere in the country."
At one point, Justice Antonin Scalia recounted at length the brutal details. Authorities said the brothers broke into a Wichita, Kansas, home in December 2000, where they forced the three men and two women inside to have sex with each other while they watched, then repeatedly raped the women. The brothers then forced the victims to withdraw money from ATMs before taking them to a soccer field, forcing them to kneel, and shooting each one in the head.
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Religious clerks in Kentucky follow law, but see conflict
Top Legal News |
2015/09/19 00:34
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Clerk Mike Johnston prays twice a day, once each morning and once each night, and asks the Lord to understand the decision he made to license same-sex marriage.
“It’s still on my heart,” said Johnston, whose rural Carter County sits just to the east of Rowan County, where clerk Kim Davis sparked a national furor by refusing to issue marriage licenses to gay couples, a decision that landed her in jail.
Johnston is one of Kentucky’s 119 other clerks, many of them deeply religious, who watched the Kim Davis saga unfold on national television while trying to reconcile their own faith and their oath of office. Sixteen of them sent pleading letters to the governor noting their own religious objections. But when forced to make a decision, only two have taken a stand as dramatic as Davis and refused to issue licenses.
And others say they find the controversy now swirling around their job title humiliating.
“I wish (Davis) would just quit, because she’s embarrassing everybody,” said Fayette County Clerk Don Blevins, whose office serves the state’s second-largest city, Lexington.
After the U.S. Supreme Court legalized gay marriage in June, Kentucky Gov. Steve Beshear ordered clerks across the state to issue licenses, launching them along markedly different paths. The clerk in Louisville, Bobbie Holsclaw, issued licenses that very day and the mayor greeted happy couples with bottles of champagne.
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Charleston church suspect's friend charged with lying to FBI
Firm Websites |
2015/09/17 00:33
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A friend of the man accused of gunning down nine parishioners at a Charleston church is charged with lying to federal authorities and concealing information during their investigation, and he was scheduled for his first court appearance Friday.
Court documents dated Tuesday and unsealed Friday say that Joey Meek, 21, told an FBI agent that he did not know specifics about Dylann Roof's plan to shoot the churchgoers during Bible study, but the FBI says that was a lie.
Authorities notified Meek last month that he was under investigation. He was arrested Thursday. It wasn't clear whether he had an attorney to contact for comment on the case, but his girlfriend has said he is innocent. Meek was expected to appear in court for arraignment at 11 a.m. Friday.
Meek has said Roof stayed with him in before the shootings. Meek previously told The Associated Press that Roof had drunkenly complained that "blacks were taking over the world" and "someone needed to do something about it for the white race."
Roof faces federal hate crime charges as well as nine counts of murder in state court in the June 17 shootings.
On Aug. 6, Meek received a letter that he was the target of an investigation.
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Ohio court: Wording of pot legalization ballot is misleading
Headline News |
2015/09/15 00:33
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Ohio's Supreme Court ruled Wednesday that part of the ballot wording describing a proposal to legalize marijuana in the state is misleading and ordered a state board to rewrite it.
Supporters of the measure, known in the fall election as Issue 3, challenged the phrasing of the ballot language and title, arguing certain descriptions were inaccurate and intentionally misleading to voters. Attorneys for the state's elections chief, a vocal opponent of the proposal, had said the nearly 500-word ballot language was fair.
In a split decision, the high court sided with the pot supporters in singling out four paragraphs of the ballot language it said "inaccurately states pertinent information and omits essential information."
The court ordered the state's Ballot Board to reconvene to replace those paragraphs about where and how retail stores can open, the amount of marijuana a person can grow and transport and the potential for additional growing facilities.
"The cumulative effect of these defects in the ballot language is fatal because the ballot language fails to properly identify the substance of the amendment, a failure that misleads voters," the court said.
The court allowed the ballot issue's title, "Grants a monopoly for the commercial production and sale of marijuana for recreational and medicinal purposes," to stand in a blow to the backers who had taken issue with the use of the word "monopoly."
Passage of Issue 3 would make Ohio a rare state to go from outlawing marijuana to allowing it for all uses in one vote.
The full text of the proposed constitutional amendment has nearly 6,600 words. It would allow anyone 21 and older to buy marijuana for medicinal or personal use and grow four plants. It creates a network of 10 authorized growing locations, some that already have attracted a celebrity-studded list of private investors, and lays out a regulatory and taxation scheme.
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