| NEW YORK
NEW YORK Nov 17 When U.S. Attorney Preet
Bharara announced at a televised press conference on Nov. 4 that
Steven A. Cohen's SAC Capital Advisors would plead guilty to
insider trading, two prosecutors stood quietly to his right.
In coming weeks those two assistant U.S. attorneys, Antonia
Apps and Arlo Devlin-Brown, will get their turn in the spotlight
as they prosecute the first two SAC Capital employees to go to
Both Harvard Law School graduates in their 40s, Apps and
Devlin-Brown traveled different paths to the Justice Department,
where they have employed notably dissimilar styles.
Apps, an Australian native and former national-caliber
figure skater in the United States, flipped the usual career
trajectory on its head by abandoning a lucrative partnership in
private practice to become a government lawyer.
Devlin-Brown, whose understated courtroom demeanor belies
his past as a national collegiate debate champion, made his mark
by successfully leading the office's 2011 crackdown on online
This week, Apps will begin trying the government's case
against former SAC fund manager Michael Steinberg, while
Devlin-Brown goes to trial in January against another former
manager at the hedge fund, Mathew Martoma.
Apps and Devlin-Brown, together with fellow prosecutor John
Zach, have led the government's criminal case against SAC
Capital, the crown jewel in a broad insider trading probe that
has netted 76 individual convictions since 2009.
In addition to its guilty plea, SAC - a Connecticut firm
that managed $14 billion before investors began withdrawing
their money - will pay $1.2 billion to resolve both criminal and
civil claims and wind down its advisory business.
Unlike many criminal prosecutions, complex insider trading
cases require more participation from prosecutors earlier in the
process, said Doug Leff, an FBI agent who worked on the SAC
cases with Apps and Devlin-Brown.
"We have to consult with prosecutors, literally from the
opening bell, in order to make sure the facts we're uncovering
will support prosecution under an accepted theory of insider
trading," said Leff.
'DELIGHTFUL IRON FIST'
Apps, who has been involved in more than 20 insider trading
cases, is known as a no-nonsense prosecutor with a courtroom
style that leaves little room for levity.
During the 2011 trial of James Fleishman, a former sales
representative charged with passing inside information to hedge
funds, U.S. District Judge Jed Rakoff tried to have fun with
Apps after she announced she would call a "short witness."
"Five foot eight, or shorter?" asked Rakoff.
"The only way short currently matters, I think, to anyone in
the courtroom means short in length of time," Apps replied,
before pivoting to another matter.
But former colleagues say that despite that her strict
style, Apps is typically upbeat, with a seemingly boundless
amount of energy. Chris Todd, a former colleague at the
Washington law firm Kellogg, Huber, Hansen, Todd, Evans & Figel,
described her as a "delightful iron fist."
After earning law degrees from Harvard and Oxford, Apps
worked for three years at the Washington, D.C., law firm Fried,
Frank, Harris, Shriver & Jacobson before joining Kellogg Huber,
where she became a partner in 2001.
Throughout her time in private practice, she continued to
compete in figure skating, which she had taken up as a young
girl in Australia. In 1997 she placed third at the U.S. national
championship for adults.
Former colleagues at both firms said she would wake up
before dawn to hit the rink, then put in 15-hour days at the
Apps became a U.S. citizen in part so she could apply to
work as a federal prosecutor, joining the New York office in
2007. Friends have said her goal from the start was to prosecute
AN UNASSUMING DEBATER
In April 2011, on what was dubbed "Black Friday" in online
poker circles, the Justice Department announced it had brought
money laundering and other charges against 11 people, including
the founders of the three largest Internet poker companies in
the United States.
Devlin-Brown, who joined the U.S. Attorney's office in 2005
from the law firm Wilmer Cutler Pickering Hale and Dorr, led the
government's prosecution, which upended the massive online poker
market. Last year one firm, PokerStars, agreed to pay $731
million to settle related civil claims against it and Full Tilt
Poker, which it absorbed as part of the agreement.
In recent years the Vermont native has worked on his share
of insider trading cases, including successful prosecutions
against two former SAC employees, Richard Lee and Richard
Choo-Beng Lee, and securities analyst Sandeep Aggarwal, all of
whom pleaded guilty and are cooperating with the government.
The erstwhile collegiate debater cuts a quiet, unassuming
figure in court, several former colleagues and defense lawyers
"He's very understated, but that shouldn't fool anyone, as
he's a sharp litigator," said Reed Brodsky, a former assistant
U.S. attorney who now works for Gibson, Dunn & Crutcher.
Avi Weitzman, another lawyer at Gibson Dunn who worked with
Devlin-Brown as a prosecutor on several insider trading
investigations, recalled a trial early in Devlin-Brown's career
in which he had to cross-examine an older, low-income woman
charged with cashing fraudulent checks.
"He eviscerated the defense involving a very sympathetic
defendant, and he did so with humor and grace," Weitzman said.
Six former SAC employees have pleaded guilty to insider
trading, helping prosecutors build their case against the hedge
Steinberg, the highest-ranking SAC employee charged so far,
goes to trial on Tuesday accused of using tips passed to him by
another SAC manager, Jon Horvath, to trade securities of Dell
Inc and Nvidia Corp.
Apps will have the benefit of evidence from Horvath, who has
cooperated with the government since pleading guilty in
September 2012 and is expected to testify.
Apps will face off against Barry Berke, a partner at Kramer
Levin Naftalis & Frankel, who is representing Steinberg.
For his part, Martoma is accused of using non-public
information from Sidney Gilman, a neurologist supervising the
clinical trial of a new drug, to trade shares in Elan Corp Plc
and Wyeth, which is now part of Pfizer Inc.
Like Horvath, Gilman is cooperating with prosecutors and
Devlin-Brown is expected to call him to the stand.
Devlin-Brown's opponent is Richard Strassberg of Goodwin
Procter, representing Martoma.
The two trials are the latest insider trading cases in what
has become the signature issue for U.S. Attorney Bharara.
SAC Capital's guilty plea on Nov. 8 left open the
possibility that Cohen himself could still face charges if
warranted, and Bharara has emphasized that the investigation
"Insider trading prosecutions are to Preet what the mob
prosecutions were to Giuliani," Weitzman said, in reference to
former New York City Mayor Rudy Giuliani, who made a name for
himself as U.S. Attorney by aggressively going after the mafia.