 |
| After sentencing, David Lee, his wife and a member of their legal team walk away. |
03/30/15 - New York
David Lee walked away today from a mandatory prison sentence.
In his statement to Judge Loretta A. Preska, Lee expressed remorse for the trust he betrayed that The Bank of Montreal and his coworkers had extended him in good faith. Lee's expression of remorse however excluded the people he worked with outside the Bank whose trust he also betrayed.
Lee was granted leniency primarily because of the cooperation he gave authorities and government agencies in understanding the complexities of his crime.
A second factor in the leniency shown to Lee was the willingness he expressed to testify against Kevin Cassidy, of the brokerage firm Optionable. Even though Federal Prosecutor AUSA Michael Levy described Lee as being "more culpable" than Cassidy, the Prosecutor suggested to the Court that Lee's willingness to testify was a motivating factor in Cassidy's decision to accept a plea deal. I disagree with the Prosecutor's valuation of Lee's potential testimony and I believe I have good reason. I've read Kevin Cassidy's sworn deposition testimony. [Inside joke: I believe the value of Lee's testimony has been "mismarked" - ha ha]
During sentencing Judge Preska asked if there were any victims of Mr. Lee's actions who wished to make a statement. I remained silent - and that silence is going to haunt me.
Here is the statement I wish I made:
Mr. Lee, I have followed this case for 8 years. I have been hurt financially by the actions you have admitted to. Your Defense lawyer, as well as the Prosecutor and even a representative of the CFTC have all praised your willingness to be completely honest about the details of your crime while this Court was determining your sentence.
Mr. Lee, I would like to read you a passage from Kevin Cassidy's sworn deposition testimony and then ask you to answer one question with the same spirit of honesty for which you are being credited today.
(from page 599-600 of Cassidy's deposition)
MS. ROBIN: Prior to September 2006, did anyone from BMO other than David Lee forward to you or anyone else at Optionable natural gas pricing information at month-end for this review?
MR. WALFISH: Objection.
MR. CASSIDY: No, not that I can recall.
MS. ROBIN: Did Mr. Lee ever tell you that he was mismarking his book of natural gas options?
MR. CASSIDY: No.
MS. ROBIN: Did Mr. Lee ever specifically tell you that he was defrauding BMO in any way?
MR. CASSIDY: No.
MS. ROBIN: To your knowledge, did Mr. Lee ever tell Mr. O'Connor that Mr. Lee was mismarking his book of natural gas options?
MR. CASSIDY: No.
MS. ROBIN: To your knowledge, did Mr. Lee ever tell Mr. O'Connor that Mr. Lee was defrauding BMO in any way?
MR. CASSIDY: No.
Mr. Lee, you have lead your former employer, The Bank of Montreal, as well as the media, prosecutors and this court all to believe that Mr. Cassidy participated in a conspiracy with you. Based on Mr. Cassidy's sworn deposition testimony, I believe he did not. Mr. Cassidy served a prison sentence based on your accusations, while here today you escape that fate yourself. Based on your accusations, Mr. Cassidy's company, Optionable's lost the trust of corporate traders, (your peers) which was their life blood. Your accusations permanently shuttered Optionable's doors, meanwhile, your ex-employer continues to lackadaisically gamble in the thin high risk markets you dominated for them.
Here then is my one question for you. Please tell me if Mr. Cassidy's testimony is true. If you are willing to say, before God and this Court that Mr. Cassidy's sworn testimony is false - then I offer you my apology for interrupting your sentencing hearing today. God speed to you, Sir. If however, you know in your heart that Mr. Cassidy's sworn testimony is true, then I implore you to live up to the condition that Judge Preska included in her sentencing on you: "Mr. Lee, hence forth: Do the right thing." To me, doing the right thing would be admitting that your crime was a "conspiracy of one" in which the motive for your actions was hidden from all involved. Admit that you alone betrayed the trust your employer, coworkers and outside vendors granted you in good faith.
Final Note: (added 4/3/15) I have offered David Lee, through his lawyer, the opportunity to respond to this blog post. If he chooses to accept this invitation, I will print his reply unedited, in it's entirety.
Disclaimer: I am an investor in Optionable. This blog does not offer advice on buying or selling any security.
