Prophecy Fraud Case Delayed to Review Classified Documents

The criminal fraud trial against Prophecy Asset Management co-owner Jeffrey Spotts over $300 million in investor losses has been delayed until at least May while a judge considers how to handle as many as 20 classified documents that touch on the case in some way.

US District Judge Michael Shipp said at a hearing Tuesday that he plans to begin a trial in May after reviewing the documents under the Classified Information Procedures Act, or CIPA. Shipp must decide behind closed doors how and to what extent classified information can be used at trial.