United States v. Korchevsky, No. 19-197 (2d Cir. 2021)
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The Second Circuit affirmed Defendants' Khalupsky and Korchevsky convictions for conspiracy to commit wire fraud, conspiracy to commit securities fraud and computer intrusions, securities fraud, and conspiracy to commit money laundering. Defendants' convictions stemmed from their use of information from stolen, pre-publication press releases to execute advantageous securities trades. Defendants used intermediaries to pay hackers for the stolen press releases.
The court concluded that the evidence was sufficient to establish Korchevsky's conspiracy with Khalupsky, as well as sufficient evidence to support the securities fraud convictions; venue was proper in the Eastern District of New York for the securities fraud counts where it was foreseeable that defendants' actions constituting securities fraud would take place there; there was no constructive amendment or prejudicial variance of the superseding indictment; and the district court did not abuse its discretion in responding to a jury request during deliberations. The court also concluded that there is no merit to defendants' challenge to the district court's decision to charge the jury that conscious avoidance can satisfy the knowledge requirement. Nor is there merit to their claim challenging the particular instruction given.
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