Summary
The Second Circuit affirmed summary judgment for the SEC in a civil insider trading enforcement action, holding that the defendant's criminal conviction and forfeiture verdict collaterally estopped him from contesting liability. The court declined to resolve whether the *Monarch Funding* presumption against applying collateral estoppel to sentencing findings extends to forfeiture verdicts, because the SEC presented unrebutted evidence—including the "overwhelming" evidence from the criminal trial—establishing all trades were unlawful and supporting the disgorgement and civil penalty amounts. The judgment permanently enjoined violations of § 10(b) and Rule 10b-5, ordered disgorgement of $1,670,483.98 (deemed satisfied by criminal forfeiture/restitution), and imposed a $1,576,445.98 civil penalty.
Holdings
- The district court properly granted summary judgment because the SEC introduced unrebutted evidence establishing that all of Afriyie's trades were unlawful and that Afriyie failed to create a genuine dispute of material fact.
Questions Presented
- Whether the district court properly granted summary judgment based on collateral estoppel from the criminal forfeiture verdict.
- Whether, in the alternative, the SEC's unrebutted evidence supports summary judgment.
Disposition
affirmed
Cases Cited (7)
- Trikona Advisers Ltd. v. Chugh, 846 F.3d 22 (2d Cir. 2017)(cited with approval)
- Pippins v. KPMG, LLP, 759 F.3d 235 (2d Cir. 2014)(cited with approval)
- S.E.C. v. Monarch Funding Corp., 192 F.3d 295 (2d Cir. 1999)(cited with approval)
- United States v. U.S. Currency in Amount of $119,984.00, More or Less, 304 F.3d 165 (2d Cir. 2002)(cited with approval)
- Libretti v. United States, 516 U.S. 29 (1995)(cited with approval)
- United States v. Afriyie, 929 F.3d 63 (2d Cir. 2019)(cited with approval)
- Riley v. United States, 78 F. App'x 774 (2d Cir. 2003)(distinguished)
Cited In (0)
No citing cases on record yet.