Criminal Defense Lawyers

New Jersey Section 2C:30-3 – Speculating or wagering on official action or information

New Jersey has strict laws prohibiting public officials and employees from profiting off of non-public government information. Section 2C:30-3 of the New Jersey Code of Criminal Justice makes it illegal for someone associated with the government to use inside information to acquire a financial interest or speculate for their own personal gain. This law is an important tool to combat corruption, but it also carries stiff penalties for those found in violation. In this article, we’ll break down the key provisions of the law, look at some examples, and discuss potential defenses.What Does the Law Prohibit?Section 2C:30-3 has three main prohibitions:

• It is illegal for a public official or employee to acquire a financial interest in any property, transaction or enterprise that could be affected by non-public government information they have access to. For example, a zoning official buys land knowing that the area will soon be rezoned for commercial development, dramatically increasing the property value.
• It is illegal to speculate or wager based on non-public government information that someone has access to through their official role. For instance, a state employee bets on a company’s stock because they know the business will soon be awarded a major government contract.
• It is illegal to aid someone else in acquiring a financial interest or speculating based on non-public government information, even after leaving the government job. For example, a former city planner tips off a friend to buy a parcel of land that will be purchased by the city for a new park.

The law applies to any non-public information that someone obtains through their official capacity, even if they are no longer employed by the government. The financial interest or speculation must be tied to specific information the person has access to – not just a guess or suspicion.PenaltiesA violation of 2C:30-3 is generally a second degree crime in New Jersey. This carries a potential prison sentence of 5-10 years and a fine up to $150,000. If the financial benefit sought is $200 or less, it becomes a third degree crime with up to 3-5 years in prison and a $15,000 fine.These are serious criminal penalties that can result in substantial prison time and large fines. The consequences can be career-ending for those in public service professions like government employees.Examples of ProsecutionsThere have been several high profile examples of prosecutions under this statute:

• In 2017, a former Port Authority of New York and New Jersey commissioner was sentenced to 2 years in prison for violating 2C:30-3. He pleaded guilty to using his position to acquire an interest in land he knew the Port Authority needed for a redevelopment project.
• A former mayor of Orange, NJ was convicted in 2008 of investing in properties knowing they would increase in value when the city purchased them for redevelopment projects.
• A former New Jersey assemblyman was convicted in 2015 of trading stocks based on non-public information about legislation and government actions related to those companies.

DefensesThere are several potential defenses if you are charged under Section 2C:30-3:

• The information was actually public or you did not have access to it through your official role. For example, a rumor circulated in your office but no official non-public data was seen.
• There was no intent to profit or speculate based on inside information. For instance, you purchased the property for personal use with no knowledge it would be affected by government action.
• The financial interest or wager was not tied to any specific non-public information you obtained. There must be a clear connection to violate the statute.
• You did not provide substantial assistance to someone else in violating the law. If your involvement was minimal, it may not rise to the level of criminal aiding and abetting.

An experienced white collar criminal defense attorney can review the evidence and determine if any of these defenses apply in your case.Public Corruption ConcernsSection 2C:30-3 serves an important public policy purpose. When public officials abuse non-public information for personal gain, it undermines citizens’ faith in government. It raises concerns of broader corruption. Prosecutions under the statute aim to deter this unethical conduct and promote integrity at all levels of state and local government.However, the law also sweeps broadly and can turn an unwise decision into a felony conviction. There may be cases that seem technically illegal but do not rise to the level of egregious public corruption. Defense counsel can argue the law is being applied too harshly for the facts at hand.If you are being investigated or charged under Section 2C:30-3, it is critical to retain an attorney immediately. An experienced criminal defense lawyer can thoroughly analyze the evidence, develop defenses, negotiate with prosecutors, and defend your rights in court. This can potentially prevent or minimize criminal penalties that could devastate your finances, reputation and career. Do not wait to seek legal help if faced with an accusation of speculating or profiting from official government information.