Reversing a rare pretrial dismissal of indictment, the Fifth Circuit in United States v. Constantinescu recently clarified the elements of securities fraud under 18 U.S.C. § 1348. The district court had dismissed the indictment on the basis that it alleged a right-to-control theory that the Supreme Court rejected in Ciminelli. Following the Court’s 2025 decision in Kousisis, however, the Fifth Circuit identified a permissible fraudulent-inducement theory underlying the charges.
