Kelly Johnson

On Tuesday, The United States Supreme Court unanimously affirmed an insider trading conviction by finding that inside information exchanged between relatives violates federal security laws. The case is Salman v. United States.

The decision provides new life to family insider trading prosecutions which had been stymied by the Second Circuit’s 2014 Newman decision. Newman held that, in order to convict a tipster of insider trading, the tipster had to have provided the information exchanged… Show more

On Tuesday, The United States Supreme Court unanimously affirmed an insider trading conviction by finding that inside information exchanged between relatives violates federal security laws. The case is Salman v. United States.

The decision provides new life to family insider trading prosecutions which had been stymied by the Second Circuit’s 2014 Newman decision. Newman held that, in order to convict a tipster of insider trading, the tipster had to have provided the information exchanged for some type of personal benefit.
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Lin-Manuel Miranda, in the 2016 Tony award winning best musical Hamilton reminds us of an American tradition as old as the Republic; buying access to decision-makers in American government.

In a June 27, 2016 decision, the U.S. Supreme Court threw out the conviction of former Virginia Governor Bob McDonnell and his wife, who accepted more than $175,000 in loans, vacation trips, and luxury items from business man, Jonnie Williams. The reversal of the convictions was based upon a flaw… Show more

Lin-Manuel Miranda, in the 2016 Tony award winning best musical Hamilton reminds us of an American tradition as old as the Republic; buying access to decision-makers in American government.

In a June 27, 2016 decision, the U.S. Supreme Court threw out the conviction of former Virginia Governor Bob McDonnell and his wife, who accepted more than $175,000 in loans, vacation trips, and luxury items from business man, Jonnie Williams. The reversal of the convictions was based upon a flaw in the jury instruction relating to what constituted an “official act” under 18 U.S.C. § 201(a)(3). The decision also threw into question many public corruption convictions across the country.

Chief Justice Roberts, writing for the unanimous Court, narrowed the definition of what conduct can constitute the basis for a conviction for bribery. Routine political courtesies, like arranging meetings or urging underlings to consider a matter generally do not constitute bribery when the person seeking those favors gives the public officials money or other gifts. Prosecutors still have the opportunity to pursue classic bribery and kick-back schemes, but legal commentators agree that the decision makes it harder for the government to prove bribery.
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PGA golfer Phil Mickelson agreed to forfeit almost $1 million that the Securities and Exchange Commission (SEC) said was obtained through insider trading. Mickelson was named as a “relief defendant” in a criminal case, filed in the Southern District of New York against professional gambler William Walters and a former director of Dean Foods, Thomas Davis. Mickelson was not criminally charged but is subject to a SEC civil action requiring a claw back of profits he made from the improper trades.

Ohio law allows for the expungement of convictions
for federal offenses, although many individuals with
federal convictions are unaware that they may also
be entitled to this benefit. Expungement provides the path to a
clean slate for many individuals with aging convictions on their
records. Similar to a marriage that is annulled, a conviction that
is expunged is treated as if it never occurred.

The Supreme Court has agreed to consider something that lies at the center of nearly every insider trading case: what prosecutors need to prove to win an insider trading conviction. This case aims to determine exactly what benefits corporate insiders need to receive for tips they disclose to traders to be illegal.

The U.S. Department of Justice (DOJ) detailed new rules that would focus investigations of corporations on responsible individuals and warned that companies cannot abuse the attorney-client privilege to hide key facts in criminal investigations.

A Chicago jury took one hour to find a trader guilty of “spoofing” some of the world’s largest commodities futures markets by deceptive electronic trading. On Tuesday, Michael Coscia was found guilty of 12 counts of fraud and “spoofing” by attempting to flood the gold, corn, soybean and crude oil futures markets with small orders, which he intended to cancel prior to execution. This case marked the first test of anti-spoofing legislation which was enacted in the 2010 Dodd-Frank Act..

The United States Court of Appeals for the Ninth Circuit ruled Monday that moving emails from an inbox to deleted items is not sufficient to establish Obstruction of Justice under 18 U.S.C. § 1519. In reaching this conclusion, the Court found the “concealment” must be proven by more than the fact that the defendant took a step that merely inconvenienced a reasonable investigator; there must be some likelihood that the item will not be found.

The Securities and Exchange Commission (SEC) announced Tuesday that Bank of New York Mellon (BNY Mellon) had agreed to pay $14.8 million dollars to settle Foreign Corrupt Practices Act (FCPA) violations. The agreement arose out of BNY Mellon providing internships to relatives of officials linked to a Middle Eastern Sovereign Wealth Fund.

FBI Director James Comey shared the bureau’s enforcement trends and objectives at the New York City Bar Association’s Third Annual White Collar Crime Institute on May 19.

In the unanimous ruling Monday, the U.S. Supreme Court resolved a split in circuits regarding the interpretation of the Mandatory Victim’s Restitution Act (MVRA). In Robers v. United States, the high court confirmed that for purposes of calculating restitution, the return to the lender of collateral securing a fraudulent loan is not completed until the victim lender receives money from the sale of the collateral.

In a 6-3 decision, the U.S. Supreme Court decided earlier this week that whistleblower protection under the Sarbanes-Oxley Act of 2002 includes employees of a public company’s private contractors and subcontractors. In Lawson v. FMR LLC, the court, in a majority opinion written by Justice Ginsburg, concluded that extending protection to employees of a contractor was consistent with the purpose and intent of Sarbanes-Oxley: to protect investors and restore trust in financial markets.

My downtown office at Porter Wright
Morris & Arthur looks north towards
the Hamilton County Courthouse and
Justice Center, the lynchpins of the
criminal justice system in Cincinnati.
Although I spent years treading the halls
of those very edifices of justice, my connection
with the day-to-day operations at
the Public Defender’s Office had grown
distant. That was about to change.

On November 14, 2012, the DOJ and
SEC released “A Resource Guide to the
U. S. Foreign Corrupt Practices Act.”
The Resource Guide, which had been
anticipated for over a year, represents the
DOJ’s and SEC’s attempts to clarify key
provisions of the FCPA and to provide
operating principles for businesses confronted
with FCPA compliance issues.

The United States Supreme Court
issued a pair of decisions on
March 21, 2012 which confirmed
what criminal practitioners have known
for many years: plea bargaining is not
adjunct to the criminal justice system,
“it is the criminal justice system.” In the
Cooper and Frye decisions, the Supreme
Court expanded the Sixth Amendment
right to effective assistance of counsel to
plea bargaining. It found that plea bargaining
is a “critical stage” in a… Show more

The United States Supreme Court
issued a pair of decisions on
March 21, 2012 which confirmed
what criminal practitioners have known
for many years: plea bargaining is not
adjunct to the criminal justice system,
“it is the criminal justice system.” In the
Cooper and Frye decisions, the Supreme
Court expanded the Sixth Amendment
right to effective assistance of counsel to
plea bargaining. It found that plea bargaining
is a “critical stage” in a criminal
proceeding. Show less