CrossFit Promoter Accused Of Fraud Can Finally Workout In Peace Again

The entrepreneur accused of screwing over investors can pull tires around the gym tonight without a care in the world.
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Joshua B. Newman, a New York entrepreneur charged last year with defrauding investors in several CrossFit training ventures, has reached a plea deal with federal prosecutors in New Jersey...Last May, federal prosecutors charged Mr. Newman with two counts of wire fraud. Authorities said Mr. Newman, 36, defrauded more than a dozen investors out of at least $2 million in trying to raise money...Mr. Newman, who graduated from Yale University in 2001, positioned himself in recent years as something of a local spokesman for the high-intensity fitness movement known as CrossFit. He was the co-founder of a big, independently owned CrossFit center in Manhattan. But behind the scenes, investors complained about Mr. Newman not paying debts owed to them. [Dealbook]


Appellate Court Willing to Entertain the Possibility that Citi Was Not Committing Fraud

I've had some fun these last few days proposing counterintuitive theories for why Citi might not suck as much as you probably think it does and it's nice to see others joining in the pastime, even if this sounds a little far-fetched: The district court’s logic appears to overlook the possibilities (i) that Citigroup might well not consent to settle on a basis that requires it to admit liability, (ii) that the S.E.C. might fail to win a judgment at trial, and (iii) that Citigroup perhaps did not mislead investors. That piece of rank conjecture is from the Second Circuit's opinion on an appeal* of Judge Rakoff's rejection of the settlement between the SEC and Citi over some mortgage-backed securities. Here's DealBook: