2nd Circ. Cuts NYSE Traders Loose

Law360, New York (July 31, 2008, 12:00 AM EDT) -- A federal appeals court has overturned the convictions of two former floor traders who were found guilty years ago of engaging in interpositioning and front-running on the floor of the New York Stock Exchange.

On Wednesday, the U.S. Court of Appeals for the Second Circuit reversed the convictions of Michael Hayward and Michael Stern, former traders at Van der Moolen Specialists USA LLC, one month after affirming the acquittal of Fleet Specialist trader David Finnerty in a related case.

"As in Finnerty, that evidence was insufficient...
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