Stand-Alone Project: Analysis Insider of Trading Cases (200 points)
650MJ Criminal Law and Procedure
Stand-Alone Project: Analysis of Insider Trading Cases (200 points)
You should begin working on the Stand-Alone Project early in the course. Each assignment provides a benchmark for completing the Stand-Alone Project in a timely manner while working through the course. You will find this information in the “Stand-Alone Project Benchmark” section of each lesson.
The purpose of this Stand-Alone Project is to familiarize you with analyzing cases from start to finish. This culminating course project involves summarizing the outcomes of several white-collar crime cases. You will learn to distinguish facts from legal arguments and determine the difference between trial court decisions and appellate outcomes, including the U.S. Supreme Court decisions. Analyzing and synthesizing these cases provides you with a practical, in-depth understanding of the application of both criminal law and procedure.
For your Stand-Alone Project, you will prepare comprehensive analyses of the Martha Stewart case, as well as insider trading cases that were decided before and after the Stewart case. The additional cases you will examine are Dirks v. the SEC, 463 U. S. (1983), Salman v. U.S., 580 U.S. _____ (2016), and U.S. v. Newman, 773 F.3d 438 (2nd Cir. 2014). You will be relying on U.S. Supreme Court precedent and the Newman opinion from the Second Circuit to develop your analysis. Legal websites are available to help you gather the information you need, including https://corpgov.law.harvard.edu/2015/05/03/how-united-states-v-newman-changes-the-law/, which you must read to complete this project. Be sure that the other readings you choose are either U.S. Supreme Court cases or writings from scholarly sites.
The paper should be divided into the following parts. Your Stand-Alone Project responses should be both grammatically and mechanically correct and formatted in the same fashion as the project itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document them in a bibliography using APA style. (200 points) (A 10-page double-spaced report is required.)
Part A Facts: For the Martha Stewart case, describe what happened that led to the charges presented. The case received a good deal of media attention, so you will have no problem locating articles discussing the facts. Be very careful to describe only what happened in the Facts section of the paper. Do not add legal interpretations or the charges; they are not appropriate for a facts section of a case analysis. You can access the civil complaint filed against Stewart and her co-defendants at: https://www.sec.gov/litigation/complaints/comp18169.htm. Although this is a civil action, you will find this complaint helpful to gather facts. (30 points)
Part B Charges: List the five (5) charges that Martha Stewart was charged with in the original indictment. The charges are what the government issues to begin the criminal process. (10 points (2 points x 5 charges))
Part C Co-Defendant: Name Martha’s co-defendant and the four (4) charges against him. Do you think it was a good idea for Martha Stewart to be tried with a co-defendant, or not? Explain your opinion. (10 points)
Part D Material Information: Discuss how the Securities Exchange Commission defines “material information.” Explain the significance of the distinction between public and non-public information. (10 points)
Part E: Summarize Salman and Newman. Summarize Salman’s indictment and subsequent conviction at the trial court level. Then discuss what happened on appeal at the Ninth Circuit. Discuss too the intervening event (the Newman decision), which came down from the Second Circuit while Salman’s appeal was pending in the Ninth Circuit. Lay out the facts of Newman. Explain the grounds on which the U.S. Supreme Court upheld Salman’s conviction for insider trading. You can gather those by reading the case itself or by reading https://corpgov.law.harvard.edu/2015/05/03/how-united-states-v-newman-changes-the-law/. (30 points)
Part F Synthesize the Stewart, Dirks, Salman and Newman cases. Note factual differences and similarities among the cases. In a sentence or two, state the outcome for each case at the appellate level. (30 points)
Part G Discussion of conflict in the law. Read https://corpgov.law.harvard.edu/2015/05/03/how-united-states-v-newman-changes-the-law/. A conflict existed between the courts’ holdings in Newman and Dirks. What was the focus of the U.S. Supreme Court in Dirks? (Hint: the information itself v. criminal behavior.) Why did this conflict present a problem for Salman? (30 points)
Part H Student Opinion: Do you agree that the focus should be the information itself or the criminal behavior? Should the amount of money the offender gains have any bearing on the punishment he or she receives? Does the student believe Stewart, Dirks, Newman, or Salman committed the most egregious offense? Support your opinion based on your review of the assigned cases, as well as any other insider cases or law review articles you find. (30 points)
Part I Grammar/Mechanics/Format. (20 points)
Grading Rubric
Please refer to the rubric on the following pages for the grading criteria for this assignment.
