Insider Tips Case Shows 3rd Circuit's Caution on Sentencings
Law360 spoke to David Axelrod of Ballard Spahr’s Securities Enforcement and Corporate Governance Litigation Group about a recent Third Circuit opinion that obviated the prison sentence for a former Simpson Thacher & Bartlett managing clerk convicted in a $5.6 million insider trading scheme. The decision is indicative of a wider pattern by the appeals court of taking a hard look at sentencing overreaches.
"It's going to really push prosecutors in the Third Circuit — and even the Second Circuit — to show evidence in cases where defendants plead guilty," Mr. Axelrod said. "They're going to need to come forward with good evidence to show the scope of an insider trading conspiracy."
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