Snell & Wilmer Secures Defense Win in Securities Fraud Case

SAN DIEGO – On December 4, 2024, the United States District Court for the Southern District of California dismissed all charges against Jonathan Destler in the securities fraud case United States of America v. Jonathan Destler. Destler was represented by Snell & Wilmer partner Andrew P. Young and co-counsel Louis R. Miller of Miller Barondess and David Hunt, P.C.

In November 2022, Jonathan Destler, David Stephens, Donald Danks and Robert Lazerus were charged in a federal grand-jury indictment with securities fraud in connection with an alleged seven-year long “annuity pump-and-dump” scheme to artificially manipulate the stock of Quebec-based Loop Industries, Inc.

During a 19-day trial in August 2024, Young and co-counsel argued before the court that there was insufficient evidence to support the government’s claims that Destler was involved in a conspiracy to commit securities fraud, and that allegations against him were the product of facts taken out-of-context and presented as evidence. The trial resulted in a hung jury with eight of the 12 jurors finding Destler not guilty.

On September 16, 2024, Young and co-counsel filed a Rule 29 motion, requesting that the district court enter a Judgement of Acquittal. This motion was grounded in the defense team’s ability to demonstrate before the court that the government was not able to cogently prove that Destler conspired (or acted independently) to commit securities fraud. Young and co-counsel posited that the case against their client was, “nothing more than a series of unrelated events over a seven-year period from which the government [had] cherry-picked isolated facts, removed their context, and woven them together to present a false narrative.” This motion was granted, and all charges have now been dropped against Destler, ending a years-long saga, and solidifying a rare defense victory in a criminal securities fraud case. The result portrayed was dependent on the facts of that case, and the results may differ if based on different facts.

Young joined Snell & Wilmer in San Diego as a partner in the Commercial Litigation practice group in June 2024. He focuses his practice on internal investigations, white-collar criminal defense, and commercial litigation. In addition to representing individuals and companies facing government scrutiny, he also has extensive experience representing clients in complex litigation, involving commercial, antitrust, business torts and disputes, and products liability matters.