Former
Sihpol, whose trial is expected to begin in February, pleaded not guilty on April 21 to 40 counts of fraud, grand larceny and falsifying business records. He faces between eight and 25 years in prison on the grand larceny counts and another four years for falsifying records, and has been free on $750,000 bail.
Sihpols attorney, C. Evan Stewart, a partner with Brown Raysman Millstein Felder & Steiner, argued in his memorandum that his client is being accused of trade-processing activities that were not in violation of securities law prior to his arrest. He further argued that Sihpol is being unfairly singled out, while BoA and Canary faced no criminal charges, and maintained that the governments accusation that his client stole $1.25 billion of mutual fund shares from six companies is "wrong and unprecedented."
BoA settled for a total of $675 million and Canary $40 million. A spokeswoman for Spitzers office declined to comment on the particulars of the case and on Stewarts memorandum, but said prosecutors are reviewing the motion to dismiss.
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