Brady Obligations of Civil Investigators

By: Ronald G. Blum
– New York Law Journal

In February, after a four-week trial, a jury in the Southern District of New York convicted Mathew Martoma of three counts of insider trading and conspiracy. The case attracted attention because it adds to the list of recent insider trading convictions in the Southern District and because Martoma had worked for SAC Capital and Steve Cohen.

But behind the headlines generated by the Martoma verdict is a decision by U.S. District Judge Paul Gardephe that exposes the artifice of coordinated, but "separate," criminal and civil investigations by the Department of Justice and civil enforcement agencies such as the Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission (CFTC), and Justice Department civil attorneys. Building on U.S. District Judge Jed Rakoff's widely noted 2012 decision in United States v. Gupta, Gardephe's decision may expand the paradigm for Brady/Giglio disclosure in criminal cases.

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