Oct 3 (Reuters) – The U.S. Supreme Court docket on Monday declined to listen to an enchantment by two former Platinum Companions executives of their conviction on prices that they defrauded bondholders of one of many defunct hedge fund’s portfolio firms as they search a brand new trial.
The justices, on the primary day of their new time period, turned away an enchantment by Platinum co-founder Mark Nordlicht and co-chief funding officer David Levy of a decrease courtroom ruling that reversed the trial choose’s resolution to overturn their convictions after jurors discovered them responsible.
Nordlicht and Levy had been convicted in 2019 of securities fraud and conspiracy for dishonest bondholders on the Platinum-controlled Black Elk Power Offshore Operations LLC to restrict Platinum’s losses if Black Elk went bankrupt. They’re scheduled to be sentenced in November.
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Prosecutors stated the scheme concerned diverting tens of thousands and thousands of {dollars} from gross sales in 2014 of Black Elk oil fields after rigging a bondholder vote to make sure that Platinum and never bondholders could be paid first. Black Elk collectors filed an involuntary chapter petition towards that firm in August 2015.
In 2019, U.S. District Decide Brian Cogan overturned the convictions.
The choose ordered a brand new trial for Nordlicht, saying it might be “manifest injustice” to uphold his conviction after Nordlicht went to “nice lengths” through the vote to observe guidelines governing a Platinum affiliate. Cogan granted Levy acquittal or alternatively a brand new trial, saying prosecutors had not confirmed he had felony intent.
The New York-based 2nd U.S. Circuit Court docket of Appeals in 2021 reversed the rulings, discovering that jurors had seen enough proof to convict the 2 males. Nordlicht and Levy have argued that the 2nd Circuit’s resolution set too excessive a bar for courts to overview verdicts.
Nordlicht and Levy petitioned the Supreme Court docket to undo the 2nd Circuit resolution, arguing that it deepened a disagreement amongst U.S. appeals courts over whether or not a choose contemplating a request for a brand new trial might “reweigh” proof heard by a jury.
Prosecutors stated the enchantment mischaracterized the 2nd Circuit ruling, which they stated didn’t battle with different courts.
A Justice Division spokesperson declined to remark whereas protection legal professionals didn’t reply to requests for remark.
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Reporting by Jody Godoy in New York; Modifying by Will Dunham
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