Author Archive | Sarah Baumgartel

In an opinion expanding the scope of federal criminal liability for “insider trading,” a two-Member majority of the Second Circuit affirmed several securities and fraud convictions in United States v. Blaszczak, 18-2811 (2d Cir. Dec. 30, 2019). Judge Kearse dissented from the decision.

This multi-defendant case involved a so-called expert services network: defendant Blaszczak was a political intelligence consultant, who provided clients with information about contemplated rule changes by the Centers for Medicare and Medicaid Services (CMS), a government agency. Prosecutors charged that a CMS employee disclosed confidential agency information to Blaszczak (ahead of announcements of rule changes), who in turn shared this information with employees at hedge funds. The CMS employee, Blaszczak, and two hedge-fund employees were charged.

Although this high-profile prosecution was presented as an “insider trading” case, the defendants were acquitted of all of the traditional insider trading charges (the Title 15 offenses). However they were …

On August 9, 2019, the Second Circuit vacated a high-profile civil forfeiture judgment, in an opinion that may be of interest to criminal practitioners. The litigation involves the government’s efforts to seize 650 Fifth Avenue, a skyscraper in midtown, and other property, based on allegations that the property owners violated federal law through their relationships with the Islamic Republic of Iran.

In In re 650 Fifth Avenue and Related Properties, No. 17-3258(L) (2d Cir. Aug. 9, 2019), 2019 WL 3756033, the Circuit held that, among other errors, the trial court mistakenly denied a motion to suppress evidence obtained pursuant to a defective search warrant. In a prior 2016 appeal in the case, the Circuit ruled that a certain search warrant was constitutionally deficient because, on its face, it lacked particularity as to the alleged crimes.

Thus, the Circuit had already found a Fourth Amendment violation. The only question was …