Prophecy Fraud Case May Involve Classified Information, US Says

The fraud case against Prophecy Asset Management co-owner Jeffrey Spotts over $300 million in investor losses may involve classified information, US prosecutors said while seeking a delay of at least two months in a trial set for January.

Federal prosecutors said in a court filing that evidence they must show to Spotts’ defense team may require review under the Classified Information Procedures Act, or CIPA, to allow the judge to balance a defendant’s rights with the government’s need to protect national security.

The US decision on whether to pursue a CIPA review is “a complex and sometimes lengthy process ...