INV-058 · Money & ethics · Misuse of office
Justice Department drops Adani fraud case after talks with Trump's appeal lawyer
Stage 3 of 5: Official review · IG, ethics office or majority · Last development 28 Sep 2026
In May 2026 the Justice Department moved to drop its securities and wire fraud case against Indian billionaire Gautam Adani, his nephew Sagar Adani and Vneet Jaain, charged in Brooklyn in November 2024 over more than $250 million in payments allegedly made or promised to Indian officials and hidden from US investors. The decision was made by Trent McCotter, then principal associate deputy attorney general, after meetings with Adani's lawyers at Sullivan & Cromwell, among them Robert Giuffra Jr., who also represents Trump in his effort to overturn his criminal conviction. Judge Nicholas Garaufis granted the dismissal in August but criticised how the decision was made.
The judge found the $10B pledge did not influence the decision, and Adani denies any deal. The court criticised the process, not any official's motives. No finding of wrongdoing by any official. A dismissal is not a finding on the original charges.
- People
- Gautam Adani, Trent McCotter, Robert Giuffra Jr., Joseph Nocella
- Agencies
- Justice Dept, SEC
- Reviewed by
- Federal court (E.D.N.Y.), Second Circuit
Timeline
The Justice Department asks the Second Circuit to order the remaining charges dismissed (petition for a writ of mandamus). On 1 October the court declines to expedite it; the petition is pending. [1]
Judge Nicholas Garaufis dismisses the charges against the three in a 47-page ruling. He is satisfied the investment pledge did not factor into the decision, but criticises that McCotter decided "largely in collaboration with defense counsel", without input from the FBI and SEC agents, and writes that McCotter "appears to have eschewed the professional opinions of innumerable officials from various federal offices and replaced them with his singular judgment." He keeps two conspiracy counts against five other defendants. [2]
Asked by Judge Garaufis, Adani says in a sworn statement that no understanding existed. McCotter tells the court the decision was not based on any investment promise, citing India's greater interest in the conduct and the risk of diplomatic friction. [1]
Trent McCotter, then principal associate deputy attorney general, moves to dismiss the indictment against the three with prejudice. In a letter he says he decided "after conducting numerous meetings with defense counsel". Court filings show Adani's lawyers had proposed a $10 billion US investment as part of a possible resolution, and that Brooklyn U.S. Attorney Joseph Nocella rejected the idea in writing. [1]
Context, before this term: prosecutors in Brooklyn unseal securities and wire fraud charges against Gautam Adani, Sagar Adani and Vneet Jaain, alleging that more than $250 million in payments were made or promised to Indian officials for solar supply contracts. [1]
Responses
Who is acting on it
- Ruling Judge Nicholas Garaufis (E.D.N.Y.): Dismissed the charges against the Adanis and Jaain after requiring sworn answers on the $10B pledge, found the pledge did not drive the decision, but criticised that it was made largely with defense counsel and without the FBI and SEC agents; kept counts against five others (10 Aug 2026, What happened next)
Sources
Cite this case
Public Trust Tracker. "Justice Department drops Adani fraud case after talks with Trump's appeal lawyer" (INV-058). Last updated 28 Sep 2026. https://publictrusttracker.org/case/inv-058-justice-department-drops-adani-fraud-case-after-talks-with/
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