1 00:00:00,120 --> 00:00:03,560 Speaker 1: Now it's time for our daily Bloomberg Law Brief, exploring 2 00:00:03,640 --> 00:00:06,840 Speaker 1: legal issues in the news. Today, Bloomberg Law host June 3 00:00:06,840 --> 00:00:10,560 Speaker 1: Grasso discusses a split verdict in the trial of three 4 00:00:10,640 --> 00:00:14,440 Speaker 1: former Namera Holdings traders who are accused of conspiring to 5 00:00:14,560 --> 00:00:17,799 Speaker 1: light to clients about mortgage bond prices. She speaks to 6 00:00:18,000 --> 00:00:22,680 Speaker 1: John Coffee, a professor at Columbia Law School. Jack, the 7 00:00:22,840 --> 00:00:26,680 Speaker 1: jury acquitted the traders or deadlocked on everything but the 8 00:00:26,680 --> 00:00:31,639 Speaker 1: conspiracy charges. They found Michael Grahman's guilty of conspiracy, Tyler 9 00:00:31,680 --> 00:00:35,600 Speaker 1: Peter's not guilty, and they deadlocked on conspiracy. As far 10 00:00:35,720 --> 00:00:39,720 Speaker 1: as Rod Shapiro, what does that show, Well, let's just 11 00:00:39,880 --> 00:00:43,600 Speaker 1: underlarn how severe defeat this was in reality for the government. 12 00:00:44,040 --> 00:00:47,280 Speaker 1: There were twenty seven counts. They got a conviction on 13 00:00:47,280 --> 00:00:50,400 Speaker 1: one of those seven three as you said, Brahm, and 14 00:00:50,479 --> 00:00:54,560 Speaker 1: twenty three were acquittals. Moreover, this case follows an earlier 15 00:00:54,600 --> 00:00:59,880 Speaker 1: Connecticut case in January involving Jesse Litteck, who was also 16 00:01:00,080 --> 00:01:03,840 Speaker 1: arged with ten counts of very similar kind of misconduct. 17 00:01:04,160 --> 00:01:08,160 Speaker 1: And they're the jury acquitted on nine convicted on one. 18 00:01:08,680 --> 00:01:11,319 Speaker 1: So it looks like the government's having a great deal 19 00:01:11,400 --> 00:01:17,160 Speaker 1: of difficulty convincing the jury that there's something truly culpable here. Uh. 20 00:01:17,160 --> 00:01:20,839 Speaker 1: And I think the fact that they convicted Michael Gramman's 21 00:01:21,520 --> 00:01:25,080 Speaker 1: may be explained by his being the only defendant where 22 00:01:25,080 --> 00:01:28,880 Speaker 1: they had a tape recording of him instructing others on 23 00:01:28,959 --> 00:01:32,039 Speaker 1: how to lie to the clients. That evidence really hit 24 00:01:32,080 --> 00:01:35,920 Speaker 1: the jury, whereas every other case the witnesses testifying for 25 00:01:36,000 --> 00:01:38,840 Speaker 1: the government were cross examined and they had to admit 26 00:01:38,920 --> 00:01:41,680 Speaker 1: they had done the same thing and looked equally bad. Oh. 27 00:01:41,760 --> 00:01:44,399 Speaker 1: That I think left the jury pretty confused. Jack. Does 28 00:01:44,440 --> 00:01:48,480 Speaker 1: this show that the jury didn't buy the theory that 29 00:01:48,600 --> 00:01:52,600 Speaker 1: the puffing and lyne by bond traders is fraud or 30 00:01:52,960 --> 00:01:57,440 Speaker 1: that the prosecutors just didn't give the jury enough evidence. Well, 31 00:01:57,480 --> 00:01:59,960 Speaker 1: we'd have to interview the jurors to really answer their 32 00:02:00,360 --> 00:02:03,640 Speaker 1: But do recall that in the securities fraud case, you 33 00:02:03,680 --> 00:02:07,160 Speaker 1: have to prove not simply that the defendant broke a 34 00:02:07,280 --> 00:02:10,200 Speaker 1: legal rule. You have to prove that he wilfully did so, 35 00:02:10,440 --> 00:02:13,160 Speaker 1: that it was his deliberate intent to violate the law. 36 00:02:13,560 --> 00:02:15,840 Speaker 1: And that may have looked greater, particularly in the case 37 00:02:15,919 --> 00:02:18,720 Speaker 1: of the junior employees who look like they were just 38 00:02:18,800 --> 00:02:23,360 Speaker 1: taking instructions from their superiors. So the wilfulness problem here 39 00:02:23,480 --> 00:02:26,720 Speaker 1: it may have been the biggest obstacle because one defendant 40 00:02:26,800 --> 00:02:29,200 Speaker 1: did look like he'd willfully done this, and they did 41 00:02:29,240 --> 00:02:32,639 Speaker 1: convict him on at least one count. But it does 42 00:02:32,760 --> 00:02:36,600 Speaker 1: look like the government has difficulty explaining why this behavior 43 00:02:36,720 --> 00:02:39,800 Speaker 1: is truly criminal when the defendants keeps saying everybody was 44 00:02:39,840 --> 00:02:43,480 Speaker 1: doing it. That's John Coffey, professor at Columbia Law School, 45 00:02:43,520 --> 00:02:46,359 Speaker 1: speaking to Bloomberg Law host to Gressi and you can 46 00:02:46,480 --> 00:02:49,480 Speaker 1: listen to Bloomberg Law weekdays at one pm most three 47 00:02:49,600 --> 00:02:52,679 Speaker 1: time here on Bloomberg Radio and now among the top 48 00:02:52,760 --> 00:02:56,239 Speaker 1: legal stories from Bloomberg Law. The Supreme Court could say 49 00:02:56,240 --> 00:02:58,600 Speaker 1: as early as today whether it will take up a 50 00:02:58,680 --> 00:03:02,959 Speaker 1: high stakes fight over electoral maps. Democrats and Wisconsin of 51 00:03:03,040 --> 00:03:06,720 Speaker 1: challenge their republican drawing boundaries for state legislative districts of 52 00:03:06,720 --> 00:03:10,480 Speaker 1: Federal Court has struck down the districts as unconstitutional, saying 53 00:03:10,520 --> 00:03:14,639 Speaker 1: they were drawn unfairly to minimize the influence of Democratic voters. 54 00:03:15,240 --> 00:03:18,360 Speaker 1: Jury selection begins today in the corruption trial of Philadelphia's 55 00:03:18,400 --> 00:03:22,120 Speaker 1: top prosecutor. District Attorney Seth Williams is accused of taking 56 00:03:22,160 --> 00:03:24,760 Speaker 1: bribes such as a vacation trip and a sports car 57 00:03:25,080 --> 00:03:28,440 Speaker 1: in exchange for legal favors. Williams has denied any wrongdoing. 58 00:03:28,720 --> 00:03:31,240 Speaker 1: He has decided not to seek a third term as 59 00:03:31,320 --> 00:03:34,880 Speaker 1: district Attorney, and that is this morning's Bloomberg Law Brief. 60 00:03:34,920 --> 00:03:37,839 Speaker 1: You can find more legal news at Bloomberg Law dot 61 00:03:37,880 --> 00:03:40,880 Speaker 1: com and Bloomberg b NA dot com. Attorneys will find 62 00:03:41,040 --> 00:03:44,520 Speaker 1: exceptional legal research and business development tools there as well. 63 00:03:45,120 --> 00:03:48,000 Speaker 1: Visit Bloomberg Law dot com and Bloomberg BNA dot com 64 00:03:48,040 --> 00:03:49,200 Speaker 1: for more information.