Judges Press Both Sides
Judges Kayatta and Seth Aframe suggested that, absent any response to the SEC’s alternative jurisdiction theory, the district court may have had little choice but to impose default.
The SEC was not spared scrutiny. Theodore Weiman, arguing for the agency, drew pointed criticism from Judge Kayatta.
“We could have avoided the entire proceeding here today if you had just told us you did intend to pursue further jurisdictional discovery,” Kayatta said.
Weiman replied that the theory involving U.S. banking records had always lingered but was effectively sidelined during Gastauer’s earlier challenge, which focused on his lack of U.S. presence since 2009.
“Are there any other positions you’re keeping in your back pocket?” Kayatta asked. Weiman said there were none.
What Comes Next
The panel took the matter under advisement. Judge Sandra Lynch, who is also assigned to the case but was not present Tuesday, will participate in the final decision, the court said.
Circuit Judges William Kayatta and Seth Aframe sat on the panel for the First Circuit.
Gastauer is represented by Johannah Cassel-Walker, Jo-Ann Tamila Sagar and Dana A. Raphael of Hogan Lovells LLP.
The SEC is represented by Jeffrey B. Finnell, Tracey A. Hardin, Daniel Staroselsky and Theodore Weiman.
