United States v. Cuti, No. 11-3756 (2d Cir. 2013)Annotate this Case
Defendants, former executives of the retail drugstore chain Duane Reede, appealed their convictions for securities fraud. Defendants had executed a number of schemes to inflate the company's earnings in quarterly and annual financial statements filed with the SEC. The court concluded that the district court did not abuse its discretion in admitting the testimony of non-expert witnesses. The court also concluded that Defendant Tennant's claims that his conviction should be overturned for insufficient evidence to prove his knowledge of the fraud and that it was error for the district court to give a conscious avoidance jury instruction were without merit. Accordingly, the court affirmed the judgment.