Law360, New York (June 27, 2019, 10:11 PM EDT) — Former Platinum Partners co-chief investment officer David Levy’s attorney told a New York federal jury on Thursday in the securities fraud trial of the hedge fund manager’s top executives that prosecutors’ case is “bogus and flawed to the core,” citing a lack of evidence that Levy engaged in any wrongdoing.
Michael Sommer of Wilson Sonsini Goodrich & Rosati PC began his closing arguments in U.S. District Judge Brian Cogan’s Brooklyn courtroom, saying prosecutors have failed to show that Levy ever deceived or lied to investors in Platinum’s signature fund, Platinum Partners Value Arbitrage Fund.
“The evidence related to David in this trial was almost nonexistent,” Sommer told the jury. “Many of the witnesses said they didn’t even know David.”
Prosecutors say Levy, Platinum co-founder Mark Nordlicht and former chief financial officer Joseph SanFilippo defrauded PPVA investors by lying about a liquidity crisis at the failing fund that left it unable to meet a flood of redemption requests. The executives also allegedly deceived investors about Platinum’s practice of making preferential payments to certain investors and high interest interfund loans that were being used to keep PPVA afloat.
Nordlicht and Levy are further charged with defrauding bondholders in oil and gas Platinum portfolio company Black Elk Offshore Operations LLC.
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