A criminal complaint was filed in the US district court for the Southern District of New York alleging improper trading activity by the New York Stock Exchange (NYSE) by the specialist in charge of trading in General Electric.

Retained by the defense, NERA Senior Vice President Dr. Patrick Conroy provided expert testimony at the criminal jury trial on the general structure of the specialist trading system on the NYSE, quantitative analysis on trading ahead of customer orders, and inter-positioning.

The jury found the defendant guilty; however, Judge Denny Chin submitted a series of questions to the defense counsel for Dr. Conroy to assess and respond. Judge Chin overturned the jury verdict and acquitted the defendant ruling that the prosecutors failed to prove that Mr. Finnerty “engaged in fraudulent or deceptive conduct” under the securities laws. The acquittal was upheld on appeal.

Case name: Before the United States District Court Southern District of New York in United States of America v. David Finnerty