The U.S. District Court for New Jersey shot down Gene Levoff’s motion to dismiss his indictment on Wednesday. He will face charges for insider trading.
Levoff was formally charged in the U.S. District Court of New Jersey last year. After posting $500,000, he was released from jail on bond.
Levoff’s motion claimed that the charges were unconstitutional since a single criminal law does not prohibit his actions. Levoff’s counsel, Kevin Marino, argued that the allegations were “wholly judge-made” and not regulated by elected lawmakers.
In Wednesday’s filing, prosecutors alleged Levoff’s actions violated the Securities and Exchange act of 1934 and represent a “classical” case of insider trading. The court agreed.
The court also ruled that the case fit within its’ regulations since Levoff had access to non-public information “and a duty not to misuse it,” as well as doing so within a blackout period.
In short, Levoff failed to convince the court that prosecution for SEC violations is unconstitutional.
