Second Circuit 'Connolly' Ruling Shows Limits of Mail and Wire Fraud Statutes

DOJ's efforts have led to civil and criminal charges against global banks, resulting in the payment of approximately $8.5 billion in fines and penalties, and the prosecution of over 20 individuals in the United States and the UK, including Matthew Connolly and Gavin Black of Deutsche Bank AG (DB). Connolly and Black pled not guilty and were convicted at trial in 2018. Despite being critical of the government's handling of the investigation, the district court denied motions for acquittal and for a new trial.

In a stunning turn of events, the U.S. Court of Appeals for the Second Circuit reversed the convictions in United States v. Connolly, 24 F.4th 821 (2d Cir. 2022). The court found the evidence of guilt to be insufficient as a matter of law and directed the district court to enter judgments of acquittal. The Second Circuit held that the government had not proved — and could not prove at another trial — that Connolly and Black had made false statements, and thus they did not commit the wire fraud and conspiracy offenses for which they were indicted.