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United States v. Scop

846 F.2d 135 (1988)

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United States v. Scop

United States Court of Appeals for the Second Circuit

846 F.2d 135 (1988)

Facts

As the result of a scheme to inflate the price of the initial offering of European Auto Classics (EAC) stocks, Scop et al. (defendants) were charged with mail fraud, securities fraud, and conspiracy. At trial, one of the prosecution’s key witnesses was expert witness Stanley Whitten, the chief investigator for the regional SEC office. Whitten was permitted over objection to testify that “certain individuals” engaged as active participants in a manipulative and fraudulent scheme to defraud the investors of EAC. He carefully phrased his testimony throughout his testimony using language which came directly from the statute allegedly violated. Whitten also stated on cross-examination that his testimony was in part based on a “positive assessment” of the testimony of the prosecution’s other witnesses. Based on this testimony, the trial court found Scop et al. guilty. They appealed.

Rule of Law

Issue

Holding and Reasoning (Winter, J.)

Concurrence (Pierce, J.)

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