United States v. Goodrich (2nd Cir. September 2021)
Recent Circuit Cases, Restitution, Second Circuit
|The Second Circuit vacated a $2.3 million restitution order against a defendant convicted of securities fraud. The Court held that most of the alleged victims’ losses came from purchasing shares of a sham company outside of a public market, in a private placement. Since the private placement was arranged by the defendant’s co-conspirators and there was no evidence that the defendant was involved in planning or executing the private placement, the defendant could not be held accountable for those losses as the proximate or direct cause.