Recent years have seen several significant cases that have shaped the landscape of white-collar criminal prosecutions, affecting areas such as fraud, corruption, and insider trading.
- Kelly v. United States (2020): In this high-profile case stemming from the “Bridgegate” scandal, the Supreme Court unanimously overturned the convictions of two New Jersey officials. The Court held that the defendants’ conduct did not violate the federal wire fraud statute because the scheme’s purpose was not to obtain money or property, which is a required element of the offense. This decision narrowed the scope of federal fraud statutes in public corruption cases[15].
- Van Buren v. United States (2021): This case addressed the Computer Fraud and Abuse Act (CFAA), a key statute in cybercrime prosecutions. The Court held that the CFAA does not cover those who have authorized access to information on a computer but use that access for an improper purpose. This decision significantly limits the reach of the CFAA in both criminal and civil contexts[16].
- United States v. Blaszczak (2nd Circuit, 2019; Supreme Court vacated and remanded, 2021): While not a Supreme Court decision, this case has had significant implications for insider trading prosecutions. The Second Circuit initially held that confidential government information could be considered “property” for the purposes of wire fraud and securities fraud statutes. However, the Supreme Court later vacated this decision in light of Kelly v. United States, prompting ongoing reevaluation of the scope of insider trading laws[17].
- Goldman Sachs Group Inc. v. Arkansas Teacher Retirement System (2021): Although primarily a civil case, this decision has implications for white-collar criminal prosecutions. The Court clarified the standards for class certification in securities fraud cases, potentially affecting how such cases are brought and prosecuted[18].
- Liu v. Securities and Exchange Commission (2020): While this case dealt with the SEC’s ability to seek disgorgement in civil enforcement actions, it has implications for parallel criminal proceedings. The Court limited the SEC’s disgorgement power, requiring that it not exceed the wrongdoer’s net profits and be awarded for the benefit of victims[19].
These cases reflect a trend towards more precise definitions of white-collar offenses and limitations on prosecutorial power. They underscore the complex interplay between statutory interpretation, constitutional rights, and the practical realities of modern business practices in white-collar criminal law.