85-Year Fraud Sentences Not 'Cruel And Unusual': 2nd Circ.
By Max Stendahl
Law360, New York (October 17, 2013, 3:01 PM ET) -- A New York district court did not violate the U.S. Constitution’s ban on cruel and unusual punishment by sentencing two former Cobalt Capital Co. executives to 85 years in prison each over the real estate firm’s alleged $23 million fraud scheme, the Second Circuit ruled Thursday.
A three-judge panel upheld the fraud convictions and sentences of Irving Stitsky and Mark Alan Shapiro. The defendants allegedly misrepresented Cobalt’s operating history, falsely told investors that the company owned certain properties and failed to disclose that they each had...