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US judge tosses conspiracy conviction of ex-Nomura trader

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US judge tosses conspiracy conviction of ex-Nomura trader

A judge threw out the conspiracy conviction of a former Nomura Securities International Inc. trader and granted the motion for a new trial.

In September 2015, a federal grand jury indicted former Nomura Securities traders Ross Shapiro, Michael Gramins and Tyler Peters on federal conspiracy and fraud charges for allegedly lying to customers on the matter of residential mortgage-backed securities. In June 2017, a jury convicted Gramins of conspiracy, but was unable to reach verdicts for a conspiracy count against Shapiro and wire and securities fraud against Gramins.

Gramins and Shapiro moved for judgment of acquittal on the ground of insufficient evidence. They also moved to dismiss the indictment, saying they lacked fair notice that their conduct was unlawful.

U.S. District Judge Robert Chatigny denied the motions for judgment of acquittal and to dismiss the indictment, according to a June 5 ruling in the U.S. District Court for the District of Connecticut. However, the judge said the case raises due process concerns regarding fair notice and discriminatory enforcement.

"As the government concedes, lying in arms-length commercial transactions is not always illegal," Chatigny wrote. "It depends on the particular facts and circumstances."

Gramins' new trial is scheduled for July, according to global law firm Greenberg Traurig LLP, which represented Gramins in the case.