The Second Circuit rejected a collateral challenge to the 2012 insider trading conviction of Appellant, a former Goldman Sachs director.  Appellant Gupta brought a habeas motion arguing that the jury instructions delivered at his trial were invalidated by the decision in United States v. Newman, 773 F.3d 438 (2d Cir. 2014), where the Second Circuit held that tips of material nonpublic information alone are insufficient for an insider trading conviction without evidence that the tipper received something in exchange.  The Second Circuit held that Appellant’s claim, which he had not raised on his direct appeal, was procedurally defaulted.  The Court further held that Appellant failed to show that the instructions had denied him due process.

Second Circuit Opinion