Insider trading, or “securities fraud,” is prohibited by 18 U.S.C. § 1348 and 15 U.S.C. § 10(b) As the Supreme Court explained in Dirks v. SEC, someone engages in insider trading under §10(b) if they breach a fiduciary duty by disclosing material, nonpublic information in exchange for a personal benefit. However, the Second Circuit’s recent holding in United States v. Blaszczak rejected this personal benefit requirement, at least as it relates to § 1348. The result? The range of conduct that triggers criminal liability under § 1348 is far bigger than the range of conduct that triggers liability under § 10(b). Stated another way, Blaszczak makes it easier for federal prosecutors to go after Title 18 securities fraud because - unlike Title 15 securities fraud - they do no need to prove the existence of a personal benefit.
Last week, the Supreme Court issued its opinion in Maryland v. Shatzer . Justice Scalia wrote the opinion, which six other Justices joined in full. Justice Thomas concurred in part and concurred in the judgment; Justice Stevens concurred in the judgment. The Court held that a fourteen-day break in custodial interrogation ends the Edwards v. Arizona rule which states that once a suspect invokes his Miranda rights, any subsequent waiver of the right triggered by a police request is deemed involuntary and is the result of coercion. In reversing the decision of the Maryland Court of Appeals, the Court concluded that Shatzer’s return to his normal pre-interrogation life in the general prison population for a period of two-and-one-half years before re-interrogation constituted a sufficient break in custody enable him to voluntarily waive his Miranda rights. Therefore, the Edwards case did not require that Shatzer’s re-interrogation statements be suppressed, and the Court remanded the case ...
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