Shapiro Arato Wins Another Insider Trading Appeal

On November 5, 2018, the United States Court of Appeals for the Second Circuit vacated the conviction of our client Sean Stewart.  Mr. Stewart, an investment banker, had been convicted of insider trading based on allegations that he provided material nonpublic information to his father.  His defense was that he had never intended for his father, whom he had often confided in about his work, to trade on the information.  The Second Circuit held that the district court erred by excluding critical impeachment evidence that undermined the government’s evidence of Mr. Stewart’s intent.  The court found that the error was not harmless because the excluded evidence “cast a different light on Sean’s intentions” and would likely have influenced the jury’s deliberations.

Partner Alexandra Shapiro argued the appeal and authored the briefs.

The opinion in United States v. Stewart can be found here.

Copies of the briefs can be found here, here, and here.  A recording of the oral argument can be found here.