A judge said Thursday he's leaning toward tossing out four guilty pleas in an insider-trading case, the latest fallout from a recent appeals court ruling criticizing prosecutors' tactics.
U.S. District Judge Andrew L. Carter Jr. notified attorneys of his plans in separate proceedings for five defendants.
He said he believes it's necessary to reject the pleas after the 2nd U.S. Circuit Court of Appeals in Manhattan last week reversed two insider-trading convictions, saying defendants Anthony Chiasson and Todd Newman were too far removed from the inside information to be prosecuted. The appeals court ruling stemmed from a government crackdown on hedge fund insider trading that resulted in more than 80 convictions.