Trial Judge’s Conflict Required Recusal in Wire Fraud Sentencing

A man who pleaded guilty to wire fraud conspiracy will have a chance to reduce his $12 million restitution order because the sentencing judge had a “near-paternal” relationship with a defendant in a related case with financial interests “plausibly adverse” to the defendant’s.

Judge Alvin K. Hellerstein abused his discretion by failing to recuse himself from Jona Rechnitz’s case because the judge’s “close, advisory relationship” with Andrew Kaplan “would lead a reasonable observer to conclude” that his “impartiality could be questioned,” the US Court of Appeals for the Second Circuit ruled Wednesday.

Rechnitz pleaded guilty to charges that he facilitated ...