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Speaker 1: Now it's time for our daily Bloomberg labbreef exploring legal

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Speaker 1: issues in the news and the Bloomberg Labry, brought to

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Speaker 1: you by American Arbitration Association, International Trade or Business Dispute

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Speaker 1: Resolve Faster with the International Center for a Dispute Resolution,

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Speaker 1: the leader in alternative dispute resolution around the world, i

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Speaker 1: c d R dot Org. Today Bloomberg, lahstoom Grosso and

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Speaker 1: Greg Stewart discuss the insider trading trial of professional gambler

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Speaker 1: Billy Walter. So they speak with John Coffee, a professor

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Speaker 1: at Columbia University Law School, and Adam Pritchard, a professor

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Speaker 1: at the University of Michigan Law School. John Tom Javis

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Speaker 1: has pleaded guilty and is expected to be the prosecution

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Speaker 1: star witness. And this is a pretty straight case, tipper

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Speaker 1: to tippy with no middleman. How strong is the prosecution's case, Oh,

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Speaker 1: I think comparatively, it's very strong, for for three reasons.

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Speaker 1: First of all, you've got the direct testimony of the

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Speaker 1: tipper implicating the tippy. In many of these cases the

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Speaker 1: government only has circumstantial evidence. Here, you got the second

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Speaker 1: point that the tipper didn't trade himself he's pled guilty

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Speaker 1: to a failing me. The only reason he would have

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Speaker 1: to do that is that there was Illie Galvy surrounding

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Speaker 1: his tip to Mr Waller. Um if he didn't think

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Speaker 1: that was guilty. This is not like a case where

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Speaker 1: he's committed a half dozen defenses offenses and is trying

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Speaker 1: to find one to settle on. Finally, Mr Waller is

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Speaker 1: a professional gambler. If the jury learns that, I think

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Speaker 1: the jury is likely to believe this guy is very

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Speaker 1: comfortable taking risk, and here, at this time, he took

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Speaker 1: a legal risk. Adam, do you agree that the prosecution

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Speaker 1: has an especially strong case here, and if so, does

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Speaker 1: that mean that Billy Walter's probably has to testify in

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Speaker 1: his own defense in order to have a fighting chance.

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Speaker 1: So this is a classic insider trading scenario. Davis and

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Speaker 1: Walter's are golfing buddies, and Davis was passing on the information.

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Speaker 1: I agree with Jack that having the testimony of the

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Speaker 1: the tipper makes the government's case very strong. I expect

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Speaker 1: that the defense lawyers are going to try and uh

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Speaker 1: muddy the waters, try and beat up Davis on the

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Speaker 1: stand for having taken a plea uh in exchange for

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Speaker 1: his testimony, and they're going to make an assessment of

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Speaker 1: how credible Davis is on the stand before making the

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Speaker 1: decision about whether or not they're going to let their

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Speaker 1: client testify. Uh, he has a history of running a

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Speaker 1: foul the law on occasion, and the history of being

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Speaker 1: a gambler suggests that he is a risk taker. Maybe

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Speaker 1: the defense would prefer to keep him off the stand

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Speaker 1: if they can, but they may have to throw a

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Speaker 1: hail Mary if Davis comes off as a credible witness.

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Speaker 1: As Adam Pritchard, a professor at the University of Michigan

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Speaker 1: Law School, and John Coffee, a professor at Columbia University

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Speaker 1: Law School, speaking with the Bloomberg Law host joom Grosso

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Speaker 1: and Greg's store. You can listen to Bloomberg Law weekdays

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Speaker 1: at one pm Wall Street Time here on Bloomberg Radio,

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Speaker 1: and that's this morning's Bloomberg Law Brief. You can find

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Speaker 1: more legal news at Bloomberg Law dot com and Bloomberg

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Speaker 1: BNA dot com. Attorneys will find exceptional legal research and

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Speaker 1: business development tools there as well. Visit Bloomberg Law dot

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Speaker 1: com and Bloomberg BNA dot com for more information