NOS. 10-4774, 11-4587, 12-2077 IN THE UNITED STATES COURT OF APPEALS FOR THE ...

101 Pages·2013·0.32 MB·English

Case: 10-4774 Document: 003111482039 Page: 1 Date Filed: 12/13/2013

NOS. 10-4774, 11-4587, 12-2077

IN THE UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT

UNITED STATES OF AMERICA,
Appellee

v.

GEORGE GEORGIOU,
Appellant

APPEAL FROM JUDGMENT OF CONVICTION AND SENTENCE
IN CRIMINAL NO. 09-88 IN THE
UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA

BRIEF FOR APPELLEE UNITED STATES OF AMERICA

ZANE DAVID MEMEGER
United States Attorney

ROBERT A. ZAUZMER
Assistant United States Attorney
Chief of Appeals

LOUIS D. LAPPEN
First Assistant United States Attorney

615 Chestnut Street, Suite 1250
Philadelphia, PA 19106
[phone]
Case: 10-4774 Document: 003111482039 Page: 2 Date Filed: 12/13/2013
TABLE OF CONTENTS

JURISDICTIONAL STATEMENT ........................................................ 1

I. Subject Matter Jurisdiction ..................................................... 1

II. Appellate Jurisdiction ............................................................ 1

STATEMENT OF ISSUES .................................................................... 2

STATEMENT OF THE CASE ............................................................... 3

I. Procedural History .................................................................. 3

II. Statement of Facts .................................................................. 5

A. Introduction ............................................................. 5

B. Georgiou’s Criminal Activity with Undercover
FBI Agent ................................................................. 7

C. Georgiou’s Criminal Activity with Kevin
Waltzer ..................................................................... 9

D. Stock Fraud Victims ............................................... 13

1. Caledonia – Robert Dunkley ......................... 13

2. William Wright/Accuvest – Brad
Jensen ........................................................... 15

3. Avicena – Michael Sullivan ........................... 16

4. Alex Barrotti .................................................. 17

E. Financial, Trading, and Computer Records
Showing the Criminal Activity ............................... 18

F. Georgiou’s Story ..................................................... 21

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STATEMENT OF RELATED CASES .................................................. 23

SUMMARY OF ARGUMENT ............................................................. 24

ARGUMENT ....................................................................................... 27

I. THE DISTRICT COURT CORRECTLY DENIED
GEORGIOU’S MOTIONS FOR A NEW TRIAL
BASED ON ALLEGED DISCOVERY ERRORS ............... 27

A. No Exculpatory Evidence Was Suppressed ............ 29

B. No New Evidence Was Material ............................. 44

II. THE GOVERNMENT DID NOT VIOLATE BRADY
OR THE JENCKS ACT IN CONNECTION WITH ITS
DISCLOSURES CONCERNING SEC ACCOUNTANT
DANIEL KOSTER ............................................................ 47

III. THE COURT PROPERLY DENIED GEORGIOU’S
MOTION TO UNSEAL .................................................... 52

IV. THE DISTRICT COURT PROPERLY ADMITTED
KOSTER’S TESTIMONY AND SUMMARY
CHARTS .......................................................................... 54

V. THE DISTRICT COURT ACTED WITHIN ITS
DISCRETION IN PRECLUDING ADDITIONAL
CROSS-EXAMINATION OF WALTZER AND
EXCLUDING EXTRINSIC EVIDENCE OF
WALTZER’S ALLEGED OTHER MISCONDUCT ........... 61

VI. THE DISTRICT COURT DID NOT COMMIT
PLAIN ERROR BY FAILING TO GRANT A
JUDGMENT OF ACQUITTAL ON COUNTS
TWO THROUGH NINE AND IN INSTRUCTING
THE JURY ....................................................................... 69

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VII. THE DISTRICT COURT DID NOT ERR AT
SENTENCING ................................................................. 78

A. The District Court’s Loss Calculation Was
Not Clearly Erroneous. ........................................... 78

B. The District Court’s Application of the
Victim Enhancement Was Not Clearly
Erroneous .............................................................. 85

C. Georgiou Waived His Objection to the
Forfeiture Order ....................................................86

CONCLUSION ....................................................................................89

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TABLE OF AUTHORITIES

Cases

Brady v. Maryland,
373 U.S. 83 (1963)....................................................................... passim

Brown v. United States,
556 F.2d 224 (3d Cir. 1977) ................................................................ 34

Carter v. Hewitt,
617 F.2d 961 (3d Cir. 1980) ................................................................ 63

Duquesne Light Co. v. Westinghouse Electric Corp.,
66 F.3d 604 (3d Cir. 1995) ..................................................................61

Dura Pharmaceuticals, Inc. v. Broudo,
544 U.S. 336 (2005) ..................................................................... 83, 84

Griggs v. Provident Consumer Discount Co.,
459 U.S. 56 (1982) ............................................................................. 53

Henderson v. Kibbe,
431 U.S. 145 (1977) ............................................................................. 69

Hollman v. Wilson,
158 F.3d 177 (3d Cir. 1998) ................................................................ 36

Hook v. Ernst & Young,
28 F.3d 366 (3d Cir. 1994) ................................................................. 27

Kyles v. Whitley,
514 U.S. 419 (1995) ............................................................................ 29

Morrison v. National Australia Bank Ltd.,
130 S. Ct. 2869 (2010) .................................................................. 71, 72

O'Brien v. Chaparro,
2005 WL 6011248 (S.D. Fla. 2005) ................................................... 44
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Pasquantino v. United States,
544 U.S. 349 (2005) ........................................................................... 74

Pennsylvania v. Ritchie,
480 U.S. 39 (1987) ............................................................................. 49

People v. Bernaiche,
2008 WL 2627600 (Mich. App. 2008) .............................................. 43

SEC v. Ficeto,
839 F. Supp. 2d 1101 (C.D. Cal. 2011) ................................................ 72

SEC v. Treadway,
430 F. Supp. 2d 293 (S.D.N.Y. 2006) .......................................... 57, 58

Sanchez v. United States,
50 F.3d 1448 (9th Cir. 1995) .............................................................. 36

Schellinger v. Schellinger,
No. 93-FA-939-763 (Milwaukee Cty. Cir. Ct. 1997) ........................... 43

United States v. Agurs,
427 U.S. 97 (1976) .............................................................................. 29

United States v. Ali,
508 F.3d 136 (3d Cir. 2007) ............................................................... 79

United States v. American Radiator & Standard Sanitary Corp.,
433 F.2d 174 (3d Cir. 1970) ................................................................ 49

United States v. Andrus,
775 F.2d 825 (7th Cir. 1985) .............................................................. 48

United States v. Antico,
275 F.3d 245 (3d Cir. 2001) ............................................................... 69

United States v. Atherton,
936 F.2d 728 (2d Cir. 1991)................................................................ 66

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United States v. Bagley,
473 U.S. 667 (1985) ............................................................................ 29

United States v. Barel,
939 F.2d 26 (3d Cir. 1991) ................................................................. 69

United States v. Bender,
304 F.3d 161 (1st Cir. 2002) ............................................................... 36

United States v. Breland,
366 F. App’x 548 (5th Cir. 2010) ....................................................... 57

United States v. Casoni,
950 F.2d 893 (3d Cir. 1991) ......................................................... 62, 68

United States v. Console,
13 F.3d 641 (3d Cir. 1993) .................................................................. 63

United States v. Corbin,
734 F.2d 643 (11th Cir. 1984) ............................................................. 66

United States v. Dansker,
565 F.2d 1262 (3d Cir. 1977) .............................................................. 34

United States v. Dent,
149 F.3d 180 (3d Cir. 1997) ................................................................ 48

United States v. Flamer,
2009 WL 237084 (3d Cir. 2009) ....................................................... 53

United States v. George,
532 F.3d 933 (D.C. Cir. 2008) ........................................................... 44

United States v. Gordon,
290 F.3d 539 (3d Cir. 2002) .............................................................. 69

United States v. Jimenez,
513 F.3d 62 (3d Cir. 2008) ........................................................... 78, 79

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United States v. Jordan,
236 F.3d 953 (8th Cir. 2001) ............................................................. 66

United States v. Joseph,
996 F.2d 36 (3d Cir. 1993) ................................................................. 36

United States v. Lockhart,
956 F.2d 1418 (7th Cir. 1992) ............................................................. 36

United States v. Lore,
430 F.3d 190 (3d Cir. 2005) .............................................................. 63

United States v. Mandell,
2011 WL 924891 (S.D.N.Y. 2011) ....................................................... 72

United States v. McMillan,
600 F.3d 434 (5th Cir. 2010) ............................................................. 57

United States v. McNeill,
887 F.2d 448 (3d Cir. 1989) ............................................................... 66

United States v. Merlino,
349 F.3d 144 (3d Cir. 2003) ............................................................... 35

United States v. Mix,
2013 WL 4780091 (E.D. La. 2013)..................................................... 30

United States v. Napier,
273 F.3d 276 (3d Cir. 2001) ............................................................... 78

United States v. Pelullo,
14 F.3d 881 (3d Cir. 1994) .................................................................. 27

United States v. Pelullo,
399 F.3d 197 (3d Cir. 2005) ......................................................... 29, 33

United States v. Perdomo,
929 F.2d 967 (3d Cir. 1991) ........................................................... 29, 31

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United States v. Ramos,
27 F.3d 65 (3d Cir. 1994) ................................................................... 49

United States v. Rigas,
490 F.3d 208 (2d Cir. 2007) .............................................................. 57

United States v. Schwamborn,
2012 WL 6050561 (E.D.N.Y. 2012).................................................... 82

United States v. Scop,
846 F.2d 135 (2d Cir. 1988) ............................................................... 57

United States v. Serafini,
233 F.3d 758 (3d Cir. 2000) ......................................................... 54, 61

United States v. Starusko,
729 F.2d 256 (3d Cir. 1984) ............................................................... 33

United States v. Tadros,
310 F.3d 999 (7th Cir. 2002) ............................................................. 36

United States v. Thayer,
201 F.3d 214 (3d Cir. 1999) ................................................................ 69

United States v. Vampire Nation,
451 F.3d 189 (3d Cir. 2006) ............................................................... 87

United States v. Vitillo,
490 F.3d 314 (3d Cir. 2007) ............................................................... 79

Statutes and Rules

15 U.S.C. § 78j(b) ......................................................................................... 70

18 U.S.C. § 2 ................................................................................................. 3

18 U.S.C. § 371 ............................................................................................... 3

18 U.S.C. § 981(a)(1)(C) ............................................................................... 87
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18 U.S.C. § 1343 ............................................................................................. 3

18 U.S.C. § 3231 .............................................................................................. 1

18 U.S.C. § 3500(b) ..................................................................................... 27

18 U.S.C. § 3663A(a)(1) ............................................................................... 88

18 U.S.C. § 3742.............................................................................................. 1

28 U.S.C. § 1291 .............................................................................................. 1

28 U.S.C. § 2461(c) ...................................................................................... 87

17 C.F.R. § 240.10b-5 ......................................................................... 3, 70-72

Fed. R. Crim. P. 32.2 ............................................................................. 86, 88

Fed. R. Crim. P. 33 ................................................................................ 53, 65

Fed. R. Evid. 608(b) ........................................................................ 25, 63, 65

Fed. R. Evid. 701 .......................................................................................... 56

U.S.S.G. § 2B1.1 ..................................................................................... 79, 85

Miscellaneous

American Psychiatric Ass'n, Diagnostic & Statistical Manual of
Mental Disorders 382 ........................................................................ 44

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