White Collar Roundup - October 2011

Sorry, but This Is Just Between Us

Striking a blow to plaintiffs in a civil action, the Supreme Court of New York refused to grant summary judgment based on a nonprosecution agreement between the defendant and the New York County District Attorney's Office. In the agreement, the defendant neither admitted nor denied liability. The court concluded that the agreement did not render any facts proved and would not estop the defendant from litigating in the civil case the facts in the agreement.

Don't Blame the Messenger

Investors in a Ponzi scheme have no recourse against the traders who executed its trades, according to the 5th U.S. Circuit Court of Appeals. The court ruled there was no allegation that the traders knew about the scheme, and the traders' failure to investigate whether it was a Ponzi scheme did not rise to the level of recklessness. Although it applies to a civil action, the ruling may limit criminal liability for traders similarly caught up