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Prosecutors Prodded To Disclaim Excessive SEC Coordination

Law360, New York (May 16, 2019, 8:01 PM EDT) -- A Manhattan federal judge pushed prosecutors Thursday to disavow any "excessive coordination" with the U.S. Securities and Exchange Commission in the run-up to their decision to criminally charge hedge fund co-founder Jason Rhodes with a $19 million fraud.

U.S. District Judge Jesse M. Furman reserved decision on whether he would order prosecutors to take such a step, but he repeatedly asked from the bench why the Manhattan U.S. attorney's office wouldn't simply clear away an allegation by Rhodes that the SEC acted as a "stalking horse" for prosecutors by affirming that that is not the case.

"It seems like an odd...

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