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Hedge Fund Supervisor Says Fraud Conviction Ought to Be Tossed


A former Platinum Companions fund supervisor convicted final month of rigging a bondholder vote has requested a US choose to overturn a jury’s verdict, saying prosecutors did not show he supposed to commit against the law.

Writer of the article:

Bloomberg News

Bloomberg Information

Patricia Hurtado

A pedestrian on Wall Street near the New York Stock Exchange (NYSE) in New York, U.S., on Tuesday, Sept. 7, 2021. Photographer: Michael Nagle/Bloomberg
A pedestrian on Wall Avenue close to the New York Inventory Trade (NYSE) in New York, U.S., on Tuesday, Sept. 7, 2021. Photographer: Michael Nagle/Bloomberg Photograph by Michael Nagle /Bloomberg

(Bloomberg) — A former Platinum Companions fund supervisor convicted final month of rigging a bondholder vote has requested a US choose to overturn a jury’s verdict, saying prosecutors did not show he supposed to commit against the law.

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Daniel Small was convicted by a Brooklyn, New York federal jury in August of securities fraud and conspiracy to commit securities fraud however acquitted of a rely of wire fraud conspiracy. 

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Small ought to get a brand new trial as a result of the legislation he was accused of violating is “too obscure” and prosecutors did not current enough proof of his legal intent, his lawyer Seth Levine stated in a memo to the court docket late Friday.

“Mr. Small’s convictions can not stand as a result of the federal government did not current enough proof that he acted willfully, knowingly, and with the intent to defraud,” Levine argued. 

When Small was convicted in August, US District Decide Brian Cogan requested each side to file briefs on whether or not he ought to let the conviction stand. Cogan in 2019 voided a jury’s conviction of Small’s former colleagues, Mark Nordlicht and David Levy, however a federal appeals court docket reinstated their convictions in November, concluding Cogan had abused his discretion in throwing out the jury’s verdict. Nordlicht and Levy await sentencing.

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The alleged crimes stem from the sale of Houston-based Black Elk Power Offshore LLC’s most useful property in 2014 because the oil and fuel firm was heading towards chapter. Black Elk was considered one of Platinum’s largest investments.

Prosecutors argued Small, Nordlicht and Levy defrauded Black Elk’s third-party bondholders by rigging a solicitation vote and finally diverting the $70 million in proceeds from the sale of the oil firm’s property to Platinum, although Black Elk bondholders had precedence.

Levine argued there wasn’t sufficient proof that Small knew that Nordlicht acted with “management” over the alleged rigged bonds. He stated Small and others supposed to pay bondholders 100 cents on the greenback plus curiosity and alleged prosecutors “refused” to name witnesses who knew related information and as a substitute relied on witnesses largely “unaware of key points.”

“A brand new trial is critical to keep away from manifest injustice,” Levine stated, including, “the paucity of proof, alone, is grounds for a brand new trial.”

Prosecutors within the workplace of Brooklyn US Lawyer Breon Peace have till Oct. 24 to file their transient. John Marzulli, a spokesman for Peace, declined to remark.  

Cengiz Goren
Cengiz Goren
https://www.cengizgoren.com

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