We defended former Citigroup executive Brian Stoker in one of the rare financial crisis cases to go to trial. Mr. Stoker, who worked on the structuring desk at Citigroup, was charged with securities fraud in connection with Citigroup’s 2007 marketing of a $1 billion collateralized debt obligation (CDO) backed by assets tied to the housing market. In its enforcement action the SEC contended that Citigroup had played a role in the selection of the CDO’s underlying mortgage securities and had taken a short position in those securities. The SEC contended that Mr. Stoker was negligent for not disclosing information about Citigroup’s actions in its marketing materials. After a two-week jury trial in the Southern District of New York with Judge Rakoff presiding, the federal jury rejected the SEC’s case and found Mr. Stoker not liable on any of the SEC’s claims.