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Law360 (May 19, 2020, 10:08 PM EDT ) A New York federal judge on Tuesday ordered a former Goldman Sachs banker's sentencing for insider trading to proceed via videoconference, noting that "delaying every sentencing would multiply the existing backlog of cases in the federal court system and generate a deluge of hearings once in-person proceedings can safely resume."
Manhattan federal prosecutors had opposed a video hearing, arguing Bryan Cohen shouldn't be sentenced until the coronavirus outbreak subsides enough to allow for a court appearance. They said the sides should be able to "interact and engage in-person" so there's a "full and fair opportunity to consider all the arguments" before deciding the punishment.
But Cohen asked to go forward with the hearing, citing the "uncertainty and stress" of continuing to wait.
U.S. District Judge William H. Pauley III on Tuesday sided with Cohen, ruling that "there would be serious harms to the interests of justice by delaying sentencing until the COVID-19 pandemic abates." Cohen's uncertainty can indeed impair the interests of justice, he said, setting the hearing for June 4.
As a French national, Cohen's immigration status and employment are up in the air until he completes his sentence, the judge said. And the court has successfully held other sentencings via videoconference, he added.
"Finally, moving forward with Cohen's scheduled sentencing promotes judicial economy by preempting the parties' inevitable motions to this court requesting further scheduling changes," Judge Pauley said.
Cohen is one of three criminal defendants convicted of participating in a massive insider trading ring. Businessman Telemaque Lavidas was convicted by a jury and trader Marc Demane Debih is cooperating with prosecutors.
At least four others face criminal charges. Of those four, only one, Joseph El-Khouri, has been taken into custody. El-Khouri is in the United Kingdom, awaiting possible extradition to the United States. Three defendants, Georgios Nikas, Benjamin Taylor and Darina Windsor, are at large.
Two others, Tomer Feingold and Dov Malnik, face civil charges brought by the U.S. Securities and Exchange Commission.
In January, Cohen entered a surprise guilty plea, telling Judge Pauley he passed tips to traders in exchange for cash. Earlier this month, he asked for his sentencing to go forward remotely.
"Mr. Cohen has been on home detention for more than six months, largely separated from family and friends. As a French citizen, he is unable to obtain gainful employment in the United States in his current situation," he said in a May 6 letter.
Meanwhile, the prosecutors argued that "uncertainty and stress" are "common feelings among convicted felons awaiting sentencing." Cohen hadn't shown specifically why his sentencing can't wait and be held in person, they said.
Benjamin Brafman, counsel for Cohen, told Law360 on Tuesday, "We are confident that the court will impose a fair and reasonable sentence whether the sentence is imposed in person or via technology."
The U.S. Department of Justice declined to comment Tuesday.
Cohen is represented by Ben Brafman of Brafman & Associates PC.
The government is represented by Richard Cooper, Daniel Tracer and Drew Skinner of the U.S. Attorney's Office for the Southern District of New York.
The case is USA v. Cohen, case number 1:19-cr-00741, in the U.S. District Court for the Southern District of New York.
--Additional reporting by Pete Brush. Editing by Jay Jackson Jr.
For a reprint of this article, please contact reprints@law360.com.
