Platinum Partners hedge fund co-founder Mark Nordlicht and former co-chief investment officer David Levy won a new trial over some fraud charges that a jury convicted them of in 2019.
(Bloomberg) — Platinum Partners hedge fund co-founder Mark Nordlicht and former co-chief investment officer David Levy won a new trial over some fraud charges that a jury convicted them of in 2019.
In the latest twist in a roller-coaster case, the federal judge in Brooklyn, New York, who presided over the trial four years ago on Wednesday set aside wire fraud conspiracy convictions of the former executives while leaving intact a guilty verdict on securities fraud counts.
The ruling by US District Judge Brian M. Cogan comes after Nordlicht and Levy unsuccessfully petitioned the Supreme Court to take up their case last year. Cogan had previously voided their convictions but an appeals panel reinstated them, ruling that the judge had abused his discretion. The two men argued to the high court that the appeals court had erred, but the justices in Washington refused to review their case.
Cogan said he’s granting a new trial in “the interest of justice” because it’s not clear which “theory of intent” the jury concluded they committed wire fraud conspiracy. He cited a recent Supreme Court decision narrowing wire fraud prosecutions.
Separately, Cogan last week denied a request by former Platinum fund manager Daniel Small to be acquitted of conspiracy to commit securities fraud after he was convicted at a 2022 trial. The jury found Small not guilty of a wire fraud conspiracy count.
Read More: Hedge Fund Fraudsters Find Unlikely Ally in a Skeptical Judge
John Marzulli, a spokesman for Brooklyn US Attorney Breon Peace, declined to comment. Andrew Levander, a lawyer for Nordlicht, and Michael Sommer, a lawyer for Levy, didn’t immediately respond to emails seeking comment on the court’s decision.
The case is US v Nordlicht, 16-cr-640, US District Court, Eastern District of New York (Brooklyn).
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.