The evidence was sufficient to convict Georgiou under prong two’s domestic transaction theory of liability. The evidence showed at least one of the fraudulent transactions in each target stock was bought and sold through U.S.-based market makers. Some of the transactions required the involvement of a purchaser or seller working with a market maker and committing to a transaction within the United States, incurring irrevocable liability in the U.S., or passing title in the U.S. There were also specific instances where target stocks were bought or sold at Georgiou’s direction from entities within the United States. The district court’s jury instructions, which explained the jurisdictional requirements, were proper. The district court was not required to preclude the jury from considering foreign activity in assessing guilt.
Unlike securities fraud, wire fraud applies extraterritorially. The wire fraud’s jurisdictional requirement is that a communication be transmitted through interstate or foreign commerce for the purpose of executing a scheme to defraud. The evidence was sufficient to convict Georgiou of wire fraud because he regularly used e-mail to direct a cooperating witness and he wired money from a Canadian bank to an undercover FBI agent’s account in Pennsylvania.
The Third Circuit also upheld Georgiou’s conviction and sentence against a host of other challenges: