Las Vegas gambler Billy Walters’s insider-trading conviction was upheld by a federal appeals court in New York, which rejected his argument that it should throw out the verdict because FBI leaks tainted his trial.
Walters was sentenced to five years in prison and a USD10 million fine after being convicted of masterminding a six-year insider-trading scheme with former Dean Foods Co. Chairman Tom Davis. He argued that the case should be thrown out because of “extraordinary government misconduct” by an FBI agent who leaked grand jury information to the Wall Street Journal and the New York Times.
The appeals panel found the leaks “deeply disturbing and perhaps even criminal,” but ruled that they didn’t affect the fairness of the trial. The court threw out an order requiring Walters to pay $8.9 million restitution, sending it back to the trial judge for reconsideration.