Publication Details

Hoguet Newman Regal & Kenney, LLP Attorneys Obtain Favorable Sentencing Ruling for Client in Federal Securities Fraud Trial

Hoguet, Newman, Regal & Kenney, LLP attorneys recently represented the former Chief Financial Officer of a pharmaceutical company in a 10 week federal securities fraud trial and subsequent sentencing proceedings in the Southern District of New York.  Despite the jury’s finding that securities fraud violations had occurred, the firm successfully argued at a Fatico hearing that the victim suffered no loss, resulting in the firm’s client receiving a sentence of time-served (no prison).  U.S. v. Cuti and Tennant, 08 Cr. 972 (SDNY 2011).  The government had recommended a sentence of 60 months and argued that the defendant was eligible for 168 to 210 months under the sentencing guidelines. 

The decision has been widely discussed in various legal and business forums.  See, e.g., Law-360, The Increasing Importance of Loss Causation Analysis (October 2011); also reproduced in part on Harvard Law School’s Forum on Corporate Governance and Financial Regulation, at  http://blogs.law.harvard.edu/corpgov/2011/12/08/the-increasing-importance-of-loss-causation-analysis/

The Hoguet Newman team was comprised of John J. Kenney, Tai-Heng Cheng, Caitlin Bush and Damian Cavaleri.