United States District Court, S.D. New York
the Government: Daniel M. Tracer Richard A. Cooper U.S.
Attorney's Office, SDNY One Saint Andrew's Plaza
defendant Lavidas: Jonathan R. Streeter Siobham M. Namazi
H. Sussman Jennifer Achilles Reed Smith LLP
OPINION AND ORDER
COTE United States District Judge.
October 7, 2019, defendant Telemaque Lavidas
(“Lavidas”) was indicted for conspiracy,
securities fraud, and wire fraud in connection with his
alleged participation in an insider trading scheme involving
the securities of Ariad Pharmaceuticals, Inc.
(“Ariad”). The indictment charges Lavidas with
committing these crimes with his close friend Georgios Nikas
(“Nikas”). Nikas, a Greek citizen, remains at large.
a motion in limine filed on December 11, 2019,
Lavidas seeks to exclude statements made by Nikas to his
close friend and their alleged co-conspirator, Marc Demane
Debih (“Demane”). Demane will be a Government
witness at the trial, which is scheduled to begin on January
6, 2020. The Government cross-moved on December 11 to admit
these statements by Nikas to Demane. The motions were fully
submitted on December 16.Through an Order of December 20, the
Court ruled that the statements would be admitted pursuant to
Rule 804(b)(3), Fed.R.Evid. (“Rule 804(b)(3)”).
The reasons for that ruling are set forth below.
indictment alleges that Lavidas provided Nikas with material
nonpublic information about Ariad on three occasions in 2013
and on one occasion in 2015, and that Nikas profitably traded
on these tips. The first time that Nikas allegedly traded on
inside information about Ariad was in late June 2013.
Lavidas's father was a corporate director of Ariad and,
according to the indictment, the source of Lavidas's tips
establish that Lavidas was the source of Nikas's
Ariad-related inside information, the Government seeks to
elicit testimony at trial from Demane. Demane was a Swiss
trader who had been providing Nikas with inside information
since 2010 or 2011. The Government expects Demane to testify
that, in 2011, Nikas told Demane that Nikas was privy to
inside information about Ariad from Lavidas and Lavidas's
F.B.I. 302 report, which was provided to the defense as
Jencks Act material pursuant to 18 U.S.C. § 3500,
relates the substance of the Government's October 31,
2019 interview with Demane (the “302”). As
reflected in the 302, Demane, Nikas, and Lavidas attended the
same dinner party with eight or nine others in 2011. At this
dinner, Nikas introduced Demane to Lavidas. This may be the
only time that Demane met Lavidas.
point that same evening, but after the dinner, Nikas told
Demane that Nikas “was calling” both Lavidas and
Lavidas's father to get information about Ariad. Nikas
added that “if there was something happening at Ariad,
they would know because  Lavidas's father was on the
board of directors of Ariad.” Demane also stated that
Nikas told him that Nikas “gave money” to
Lavidas, but he did not mention an amount.
to the Government, while Demane tipped Nikas about many
stocks, Ariad is the only company about which Nikas provided
Demane with inside information. The Government alleges that
Demane traded in Ariad securities on two occasions using
inside information that he received from Nikas. At trial, the
Government intends to present evidence of Demane's
trading records, as well as the trading records of eight
other sets of traders who are alleged to have profitably
traded in ...