Thursday, August 14, 2008
Traders Win Appeal
"A federal appeals court reversed the criminal convictions of two former floor traders in the long-running case into allegedly improper trading at the New York Stock Exchange. ... In its ruling the three-judge panel cited its decision this month to affirm a district judge's order last year to set aside the criminal conviction of David Finnerty, a former specialist at Fleet Specialist Inc., now a unit of Bank of America Corp. ... The government had argued at trial that Messrs. Hayward and Stern violated federal securities laws by engaging in interpositioning--improperly stepping betweeen public buy and sell orders and trading for their firm's account. ... A spokeswoman for the U.S. Attorney's office in Manhattan, which brought the case, declined to comment Wednesday", Chad Bray at the WSJ, 31 July 2008.
This garbage case against a couple of nobodys should never have been brought. Seeing cases like this makes me think the DOJ's appropriations should be cut. Maybe a few more reverals like this might induce Mike Garcia to prosecute some real criminals.