United States v. Rahim

339 F. App'x 19
CourtCourt of Appeals for the Second Circuit
DecidedJuly 16, 2009
DocketNo. 08-2815-Cr
StatusPublished

This text of 339 F. App'x 19 (United States v. Rahim) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Rahim, 339 F. App'x 19 (2d Cir. 2009).

Opinion

SUMMARY ORDER

Hafiz Muhammad Zubair Naseem appeals his conviction for conspiracy to commit securities fraud and twenty-eight substantive counts of securities fraud as well as the resulting sentence. We assume the parties’ familiarity with the facts, proceedings below, and specification of issues on appeal.

[22]*22Naseem’s first trial ended in a mistrial declared after the jury was selected and sworn but before any testimony had been heard. Naseem claims that subjecting him to a second trial violated the Double Jeopardy Clause. A defendant may not be twice subjected to jeopardy for the same offense. United States v. Razmilovic, 507 F.3d 130, 136 (2d Cir.2007). Jeopardy attaches when the jury is sworn, and unless the defendant consented to the mistrial, a second trial is barred absent a showing that the original mistrial was compelled by “manifest necessity.” Id. We review a finding of “manifest necessity” for abuse of discretion. See id. at 137. Where the mistrial was based on potential juror bias, the degree of deference owing to the trial court is especially high. See Arizona v. Washington, 434 U.S. 497, 510-14, 98 S.Ct. 824, 54 L.Ed.2d 717 (1978).

We find no abuse of discretion in this case primarily because (1) the issue was one of potential juror bias and/or the appearance of juror bias, see id.; (2) no testimony had been taken, see United States v. Gentile, 525 F.2d 252, 256 n. 2 (2d Cir.1975) (holding that a trial court is permitted to consider “the length of [a defendant’s] exposure at the first trial” when determining whether a mistrial should be declared); (3) both the defense and the prosecution, at different times, expressed concern about whether two jurors, one of whom had spoken to a friend of defendant’s while waiting to be interviewed as a juror and later learned that this person was somehow associated with the defendant, could be impartial; (4) although defense counsel indicated a preference for proceeding without the two jurors, which would leave twelve jurors and one alternate, or with a jury that included the two jurors, he acknowledged that based on the record, the court could make findings justifying a mistrial, see id. at 255 (holding that even where a defendant does not consent to a mistrial, his contribution to causing it may be considered in determining whether the district court abused its discretion); and (5) as the trial court recognized, at the time of the first trial, the Christmas holidays were fast approaching, making it possible that additional jurors would be lost. We recognize that the trial court erred in believing that the juror who talked with Naseem’s friend had already been selected for the jury and cautioned by the district court against such conversations, but do not consider this fact significant in light of the court’s clear reliance on the factors already cited, which amply justify its decision.

We also reject Naseem’s challenge to the sufficiency of the evidence to support each count of conviction. We may reverse for insufficiency “only if no rational factfinder could have found the crimes charged proved beyond a reasonable doubt.” United States v. Gaskin, 364 F.3d 438, 459-60 (2d Cir.2004) (citing Jackson v. Virginia, 443 U.S. 307, 319, 99 S.Ct. 2781, 61 L.Ed.2d 560 (1979)). “[W]e must review the evidence in the light most favorable to the government, drawing all reasonable inferences in its favor.” Id. Further, the jury may base its verdict on circumstantial evidence. United States v. D’Amato, 39 F.3d 1249,1256 (2d Cir.1994).

The government premised its prosecution on the “misappropriation theory” of insider trading, which requires proof that “a person [has traded] while in knowing possession of material, non-public information that has been gained in violation of a fiduciary duty to its source.” United States v. Cusimano, 123 F.3d 83, 87 (2d Cir.1997). The government alleged that Naseem, an investment banker in the United States, provided advance information concerning pending mergers and acquisitions to his long-time friend and co-defendant, Ajaz Rahim, an investment banker in Pakistan. Naseem ^oes not [23]*23question his fiduciary duty to his employer or his knowledge that he was not allowed to disclose non-public information concerning acquisitions and mergers. Rather, he contends that there is insufficient proof that he disclosed such information. We disagree based on the following evidence, which the jury could have credited: (1) with respect to each of the stocks referenced in the indictment, there was proof either that a call was made to Rahim from Naseem’s phone or his secretary’s phone shortly before a purchase that later resulted in a substantial profit to Rahim, or that Naseem accessed documents concerning the proposed merger or acquisition that he had no legitimate reason for accessing shortly before Rahim’s purchase, and in many cases there was proof of both; (2) Naseem opened a trading account in a Pakistani bank and instructed the bank that “Ajaz,” Rahim’s first name, would manage the account; (3) Naseem and Ra-him had a longstanding relationship, which involved a similar pattern of phone calls and transactions at a different bank; and (4) the investment bank in which Naseem worked had an “open” environment, and Naseem was observed looking at papers on other bankers’ desks during the time one of the acquisitions was pending.

There also was no abuse of discretion in the district court’s admission of evidence concerning Naseem and Rahim’s similar conduct while Naseem was employed at a different bank. First, the court did not err in rejecting Naseem’s claim that he was not given timely notice of the government’s intention to offer the evidence. Naseem misconstrues the record when he argues that the judge presiding at the first trial gave the government a firm deadline for identifying prior bad act evidence that it intended to introduce. The discussion Naseem references was limited to evidence of bank transfers and did not include prior bad acts. Thus, the only requirement in effect was that the government give “reasonable notice in advance of trial” of its intent. Fed.R.Evid. 404(b). The government did so. It produced the relevant trading records prior to the first trial, and one week prior to the second trial, it notified defendant that it might argue at trial, based on these records, that the government had shown that Naseem and Rahim engaged in insider trading prior to the charged offenses. While there is no proof that the government notified Naseem of its intent to call one particular witness concerning the prior uncharged offense, the general notice given was sufficient.

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Related

Brady v. Maryland
373 U.S. 83 (Supreme Court, 1963)
Arizona v. Washington
434 U.S. 497 (Supreme Court, 1978)
Jackson v. Virginia
443 U.S. 307 (Supreme Court, 1979)
United States v. Joseph Gentile and Ernest Laponzina
525 F.2d 252 (Second Circuit, 1975)
United States v. Armand P. D'AmAto
39 F.3d 1249 (Second Circuit, 1994)
United States v. Jabril Shareef
190 F.3d 71 (Second Circuit, 1999)
United States v. Bolajoko Aina-Marshall
336 F.3d 167 (Second Circuit, 2003)
United States v. Razmilovic
507 F.3d 130 (Second Circuit, 2007)
United States v. Rahman
189 F.3d 88 (Second Circuit, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
339 F. App'x 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-rahim-ca2-2009.