White Collar Crime

Abstract

A mention of New York City, the seat of the Second Circuit, invariably evokes thoughts of finance. The home of Wall Street and the World Trade Center, Manhattan is also home to many of the country’s major banks, hedge funds, and stock exchanges; the Securities & Exchange Commission has a branch office in New York, as do the Federal Reserve Bank, the Commodity Futures Trading Commission, and the Antitrust Division of the Department of Justice. Even the Court of International Trade is located in Manhattan. Unsurprisingly then, New York City has also played host to some of the most important white collar criminal prosecutions in the nation. As the federal appellate court with jurisdiction over this financial center, the Second Circuit has ruled on many critical issues related to white collar crime. Distinctive in its understanding of business practice, its readiness to identify and oppose legislative encroachment into the realm of the judiciary, and in the high value it places upon legal history and stare decisis, the Second Circuit’s sophisticated jurisprudence has influenced courts nationwide. This Article will address six different areas of white collar law and procedure: (1) fraud, (2) the Racketeer Influenced & Corrupt Organizations Act (RICO), (3) conspiracy, (4) public corruption, (5) white collar practice, and (6) sentencing. Many of the cases profiled in this Article have driven legal and cultural developments far beyond the federal courts, including the cases of Leona Helmsley, one of New York’s most prominent real estate moguls; the “Mafia Commission,” a take-down of the bosses of the Five Families of La Cosa Nostra; and Abscam, a massive sting operation created by the federal government to expose corrupt officials. Of course, the cases