Court Opinion

ID: 9489440
Source: CourtListenerOpinion
Date Created: 2023-08-05 13:16:09.118327+00
Date Added: 2024-06-11T17:53:32.287896
License: Public Domain

FAGG, Circuit Judge,
dissenting.
My colleagues have carefully analyzed both sides of the relevant legal coins and selected the sides that nullify O’Hagan’s convictions. Contrary to their well-reasoned views, I would recognize and adopt the misappropriation theory like the Second, Seventh, Ninth, and Third Circuits, see ante at 620 & nn. 9-12, and thus uphold O’Hagan’s convictions for securities fraud under § 10(b) and Rule 10b-5. United States v. Libera, 989 F.2d 596, 599-600 (2d Cir.), cert. denied sub nom. Sablone v. United States, 510 U.S. 976, 114 S.Ct. 467, 126 L.Ed.2d 419 (1993); SEC v. Maio, 51 F.3d 623, 631 (7th Cir.1995); SEC v. Clark, 915 F.2d 439, 453 (9th Cir.1990); Rothberg v. Rosenbloom, 771 F.2d 818, 822 (3d Cir.1985), rev’d after remand, 808 F.2d 252 (1986), cert. denied, 481 U.S. 1017, 107 S.Ct. 1895, 95 L.Ed.2d 501 (1987). Also, like the Second, Seventh, and Tenth Circuits, see ante at 623-24, I would hold the Securities Exchange Commission did not exceed its rulemaking authority when it enacted Rule 14e-3(a) without the requirement of a breach of a fiduciary duty, and thus uphold O’Ha-gan’s securities fraud convictions under § 14(e) and Rule 14e-3(a). United States v. Chestman, 947 F.2d 551, 556-63 (2d Cir.1991) (en banc), cert. denied, 503 U.S. 1004, 112 S.Ct. 1759, 118 L.Ed.2d 422 (1992); Maio, 51 F.3d at 634-35; SEC v. Peters, 978 F.2d 1162, 1165-67 (10th Cir.1992). Having adopted these views, I find no basis to reverse O’Hagan’s convictions for mail fraud and money laundering. See ante at 627-28. Because I would affirm all of O’Hagan’s convictions, I would also consider the merits of the government’s appeal from O’Hagan’s sentences.