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Sept. 15 — A defendant who failed to have his insider trading conviction overturned based on the higher standard imposed by the Second Circuit in the Newman case is taking the matter to the very same court.
Thomas Weishaus had previously asked a federal district court to vacate his settlement of Securities and Exchange Commission insider trading charges in light of the Newman ruling. Under Newman, prosecutors must show that a tippee knew that a tipper sent the nonpublic information along in exchange for a personal benefit.
Judge Jed Rakoff of the U.S. District Court for the Southern District of New York denied Weishaus's request July 22, holding that Newman “is not intended to allow one side of a settlement agreement to obtain the benefits of finality while placing the other side at risk that future judicial decisions will deprive them of the benefit of their bargain”.
“When it comes to civil settlements, a deal is a deal,” Rakoff held.
Weishaus filed his notice of appeal Sept. 14 with the U.S. Court of Appeals for the Second Circuit. He and codefendant Thomas Conradt had their guilty pleas vacated by a judge in a related criminal manner.
To contact the reporter on this story: Rob Tricchinelli in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Susan Jenkins at email@example.com
For the notice of appeal, visit http://www.bloomberglaw.com/public/document/US_Securities_and_Exchange_C_v_Conradt_Docket_No_1502887_2d_Cir_S
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