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Fabulous fab that's what they called the former Goldman trader for priest tour -- is no longer really fabulous he's facing an uncertain future.
After being found liable for.
Will this open the floodgates for more litigation with us Russell Duncan -- -- -- Former federal prosecutor former trial counsel for the SEC.
That's when Charlie Gasparino our our star reporter here and yesterday he said this is less about a priest tour losing and more about the SEC winning.
Does sit in -- in the SEC to go after more people.
Well it's certainly a substantial victory for the SEC the they.
Put a lot at stake in this state but our -- and -- chief trial counsel to litigate the matter.
So certainly gives them more confidence the question.
It asked the asked there was whether they're any more fish to go after.
Most of the events that they described in this trial.
Happened 567 years ago and so they're starting to run up against the statute of limitations.
We should let people understand that that hit the statute of limitations is five years and we -- can do the math 20072008.
Is when the financial crisis happened so.
Up until now the SEC's pretty much fairly gone after junior employees we haven't seen a big fish landed in any shape wish you perform.
Russell do think we ever well.
I would be surprised at this point unless the case is in the pipeline.
It's very unlikely that the FCC is gonna have any more prosecutions in this space.
News as you point out it's it's a little unusual that they would don't get a mid level.
Vice president that Goldman sacks obviously he was not acting on his own he was not engineering this deal by himself somebody higher than he.
Had to be reviewing the documents as well and he certainly should have known so why doesn't the SEC go after -- His management.
Do they say that he was some type of lone wolf four or loose cash.
-- they haven't really been clear on that point I think that one of the things that sort of startling over the course you know.
At least certainly noteworthy about a case like this is the email traffic up frequently when I was at the SEC and when I was at the US attorney's office.
You find a lot of good evidence in -- -- individuals he not Traficant in this case his personal emails as well.
So it -- very Mel B -- just -- a situation where they just don't have the evidence they haven't found the paper trail that ties.
The individuals above mr.
-- to these events.
Speaking of tying and making links does anything that happened in the tour trial have any implication for SEC Capital One that insider trading case that of course -- turned into -- a criminal case and not on behalf of the SEC but.
You know on behalf of the the US attorney here at the south eastern district of southern district rather so who do you think that that.
Has any implications at all even though the two cases are of course totally unrelated.
Well I certainly think it's a wake up call for all the individuals in my position defense attorneys to realize that the SEC is willing to prosecute these cases.
I certainly gives them more confidence in what they're doing they do you have an individual case -- the administrative hearing level with the mr.
Cohen that's AC capital.
And it's certainly gonna give them a lot more confidence again though the question is whether or not they'll ever be able to develop the evidence against -- certain of these individuals.
Yet Department of Justice went after mr.
But after SEC capital the FCC did not.
I think it'll be a substantial penalty by any standards that we consider probably in the the million dollar range that's obviously that's completely subject to the statute and what the judge thinks it is an appropriate penalty for mr.
-- and by the way this is just moving on the wires according to the Wall Street Journal.
If it appears that Goldman Sachs will continue to pay for priest towards legal bills if he pursues an appeal to think it will.
It yet again it would be -- -- it I think it's on the that they have to look at the trial record and decide whether or not there's good grounds for repeal but under these circumstances I would certainly I recommend to my client that -- they appeal.
-- -- Russell it's great to have you -- Russell Duncan partnered -- challengers and former federal prosecutor thank you.
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