The crimes charged against SBF are simple — old-fashioned fraud through a Ponzi scheme. His conviction seems inevitable. For the government, the challenging part of this case will be the forfeiture proceedings. Under the Mandatory Victim Restitution Act (MVRA), federal prosecutors have an affirmative obligation to use their “best efforts” to
Department of Justice
District Court Declines to Dismiss NFT “Insider Trading” Indictment against Former OpenSea Employee
By Joshua M. Newville on
In late October, a New York district court refused to dismiss the Department of Justice’s (DOJ) indictment against defendant Nathaniel Chastain, who was charged with wire fraud and money laundering relating to his using insider knowledge to purchase non-fungible tokens (NFTs) prior to them being featured on OpenSea, an online…
Father Sometimes Knows Best: District Court Blasts SEC’s “No Admit, No Deny” Provisions
By Jonathan Richman on
In a scathing opinion, Southern District of New York Judge Ronnie Abrams recently blasted the SEC’s standard demand that defendants settling with the Commission agree never to deny the allegations against them. Judge Abrams’ decision in SEC v. Moraes reluctantly approved a consent decree containing the usual “no admit, no deny” provision in light of the Second Circuit’s recent decision upholding such provisions in SEC v. Romeril, in which Judge Abrams’ father (the famed First Amendment lawyer Floyd Abrams) represented the defendant in his unsuccessful petition for certiorari. But Judge Abram expressed concern that the SEC’s insistence on such provisions violates the “unconstitutional conditions doctrine” and the First Amendment.
DOJ Announces New Guidance for Prosecuting Corporate Crime in Speech by Deputy Attorney General Lisa Monaco
By Lindsey Olson Collins on
Late last month, Deputy Attorney General Lisa O. Monaco delivered a keynote speech at the ABA’s National Institute on White Collar Crime event in Washington, DC. Her remarks outlined observed trends in white collar crime as well as AG Merrick Garland’s and her priorities and initial action items for combatting corporate crime. Corporate defense and in-house counsel, take note.
DOJ Tax Division Shows Continued Interest in Cryptocurrency
By Lindsey Olson on
On May 5, 2021, another federal district court, this time for the Northern District of California, permitted the IRS to proceed with a John Doe summons very similar to the one served on Circle last month (the subject of a recent post). This time, the Summons seeks information on…
A Warning to Cryptocurrency Users from the Justice Department’s Tax Division
By Lindsey Olson on
As you might expect during tax season, the Justice Department’s press releases seem particularly focused on tax-related issues these days. At the start of this month, DOJ sent a stern reminder to the public that non-traditional currency users should not expect to escape federal tax law enforcement.
On April 1,…
SPAC Securities Class Action Comes for Recently Public Health Care Company
By Corey I. Rogoff on
Clover Health is an insurance company focusing on Medicare Advantage that uses its proprietary software platform to offer PPO and HMO plans to eligible consumers. It fits the mold for many would-be SPAC acquisitions: a technology company with its own platform (known as the Clover Assistant) servicing a growing industry…
Supreme Court Hears Argument on Meaning of “Personal Benefit” in Insider Trading
By Alexandra Skellet & Jonathan Richman on
All eyes were on the U.S. Supreme Court yesterday as it heard arguments in Salman v. United States (No. 15-628) concerning the “personal benefit” required to establish a claim for insider trading. After an hour punctuated by the Justices’ constant questioning of attorneys for both the defendant and the government, it appears unlikely that the Supreme Court will radically depart from its 1983 decision in Dirks v. SEC, which held that insider trading violates the federal securities laws if an insider makes a gift of nonpublic information to a trading relative or friend.