Wall Street Fraudsters Rush to Cut Prison Terms With New Ruling

US prosecutors described Gary Frank as “nothing but a con man” when he was sentenced to more than 17 years behind bars for scamming Prudential Insurance and others out of tens of millions of dollars.

But the Philadelphia-area businessman is expecting to find out this month if his sentence will be reduced under a US appeals court ruling that’s generated waves across the country. The opinion upended a long-standing practice of lengthening sentences for white-collar criminals based on how much they intended to defraud victims — versus the amounts they actually stole.

The decision, which has prompted defense bids to ...