By: Derek Hawkins//August 15, 2017//
7th Circuit Court of Appeals
Case Name: United States of America v. Michael Coscia
Case No.: 16-3017
Officials: RIPPLE, MANION, and ROVNER, Circuit Judges
Focus: Sufficiency of Evidence and Jury Instructions
This case involves allegations of spoofing and commodities fraud in this new trading environment. The Government alleged that Michael Coscia commissioned and utilized a computer program designed to place small and large orders simultaneously on opposite sides of the commodities market in order to create illusory supply and demand and, consequently, to induce artificial market movement. Mr. Coscia was charged with violating the anti‐spoofing provision of the Commodity Exchange Act, 7 U.S.C. §§ 6c(a)(5)(C) and 13(a)(2), and with commodities fraud, 18 U.S.C. § 1348(1). He was convicted by a jury and later sentenced to thirty‐six months’ imprisonment
Mr. Coscia now appeals. He submits that the anti‐spoofing statute is void for vagueness and, in any event, that the evidence on that count did not support conviction. With respect to the commodities fraud violations, he submits that the Government produced insufficient evidence and that the trial court applied an incorrect materiality standard. Finally, he contends that the district court erred in adjudicating his sentence by adding a fourteen‐point loss enhancement.
We cannot accept these submissions. The anti‐spoofing provision provides clear notice and does not allow for arbitrary enforcement. Consequently, it is not unconstitutionally vague. Moreover, Mr. Coscia’s spoofing conviction is supported by sufficient evidence. With respect to the commodities fraud violation, there was more than sufficient evidence to support the jury’s verdict, and the district court was on solid ground with respect to its instruction to the jury on materiality. Finally, the district court did not err in applying the fourteen‐point loss enhancement.
Affirmed