White Collar

  • October 1, 2014

    5 Army National Guard Officials Charged In Bribery Schemes

    Four retired Army National Guard officials, along with one active-duty member and one civilian, have been charged in connection with alleged bribery schemes linked to millions of dollars in Army National Guard marketing, retention and recruitment contracts, the U.S. Department of Justice announced Wednesday.

  • October 1, 2014

    Citigroup Should Turn Over Banamex Files, Magistrate Says

    A Delaware magistrate on Tuesday recommended that the Chancery Court order Citigroup Inc. to hand over to an institutional investor internal records relating to loan fraud at its Mexico-based Banamex unit and an investigation of anti-money laundering compliance issues at its Banamex USA affiliate.

  • October 1, 2014

    TD Bank Snubbed On Rehearing Of $67M Ponzi Case Verdict

    The Eleventh Circuit on Wednesday denied a petition from TD Bank NA to revisit a ruling that investors in jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme had standing to win a $67 million verdict from the bank.

  • October 1, 2014

    Energy Co. CEO Gets 25 Yrs., $58M Fine For Investment Fraud

    A Minnesota federal judge has sentenced an alternative energy company's CEO to 25 years in prison and ordered him to pay nearly $58 million in restitution after a jury convicted him of lying to investors in a fraud scheme, federal authorities said Wednesday.

  • October 1, 2014

    $50M Mortgage Fraud Leader Sentenced To 27 Years

    A Florida federal judge sentenced Domenico Rabuffo on Tuesday to more than 27 years in prison for leading a $50 million mortgage fraud scheme that used straw buyers to file fraudulent applications for mortgage and construction loans to buy vacant lots in a North Carolina development.

  • October 1, 2014

    3rd Circ. Hears Double Jeopardy Fears In Bribery Retrial

    The former chief of staff for a Philadelphia councilman and two other men who beat bribery convictions in 2012 asked the Third Circuit on Wednesday to narrow the scope of issues a jury could consider in their retrial, citing a risk of double jeopardy.

  • October 1, 2014

    Exec Gets 15 Months In EBay Insider Trading Case

    A Pennsylvania federal judge on Wednesday sentenced the former president of an e-commerce firm acquired by eBay Inc. who pled guilty to insider trading connected to the takeover to 15 months in prison, a fraction of what the executive had faced.

  • October 1, 2014

    3 Plead Guilty to Embezzling Air Force Funds

    The ringleader of a scheme to defraud a South Carolina Air Force base of payroll and construction project money faces up to 30 years in jail and a $750,000 fine after pleading guilty in open court on Tuesday.

  • October 1, 2014

    NY Lawmaker Charged With Theft Of Campaign, Travel Funds

    Queens-based New York Democratic Assemblyman William Scarborough was arrested and indicted Wednesday on charges that he stole campaign funds and filed 174 false travel reimbursement requests, according to the state's attorney general.

  • October 1, 2014

    Blackwater Jury Hints At Involuntary Manslaughter Conviction

    Jurors in the long-running murder and manslaughter case against four former Blackwater Worldwide security guards hinted to a D.C. federal judge on Wednesday that they may convict at least one of the defendants of involuntary manslaughter stemming from a 2007 incident in Baghdad.

  • October 1, 2014

    Court Asked To Sanction 'Kids For Cash' Atty Over Loan Docs

    The plaintiffs in a suit against a Powell Law Group attorney caught up in the Luzerne County, Pennsylvania, “kids for cash” scandal asked a federal court Tuesday to sanction the defendants for failing to produce evidence concerning money borrowed against $200 million in fees due to PLG that the plaintiffs are looking to secure.

  • October 1, 2014

    Brooklyn Judge Quitting Bench Over Campaign Ties To Ex-DA

    Brooklyn trial judge Barry Kamins has agreed to vacate his judicial office and not to accept any future judgeship after an investigation found he had actively participated in the failed 2013 re-election campaign of former Brooklyn District Attorney Charles J. Hynes, state authorities said Wednesday.

  • October 1, 2014

    DeLay Cleared By Texas High Court In Money-Laundering Case

    Texas’ highest criminal court on Wednesday affirmed the acquittal of former U.S. Rep. Tom DeLay on money-laundering charges stemming from his alleged orchestration of illegal transfers of soft-money political action committee donations to hard-money campaign donations.

  • September 30, 2014

    Ex-Sen. Must Repay Funds Used To Fight Bathroom Arrest

    A District of Columbia federal judge on Tuesday ruled that former U.S. Sen. Larry Craig, R-Idaho, must shell out nearly $243,000 to the U.S. Department of the Treasury for improperly converting campaign funds to personal use to cover legal defense fees stemming from his 2007 arrest on suspicion of lewd conduct in a men’s bathroom in a Minneapolis airport.

  • September 30, 2014

    Pa. Insurance Agent Charged With Securities Fraud

    A former AXA Equitable Life Insurance Co. agent pled guilty to securities fraud on Tuesday, the same day that federal prosecutors charged him with devising a scheme to defraud the company and its clients of more than $1.5 million.

  • September 30, 2014

    Nixon Peabody Can't Beat Jailed Ex-Partner's Defense Suit

    A California state appeals court on Tuesday declined to toss claims brought by an imprisoned former Nixon Peabody LLP partner contending the firm should have paid for his legal defense of federal charges that he tried to cover up a client's Ponzi scheme, ruling the firm's refusal wasn't constitutionally protected activity.

  • September 30, 2014

    Revolving-Door Roundup: Simpson, Sidley, DLA Piper

    The U.S. Department of Justice takes the spotlight in this month's roundup of high-profile moves to and from the public sector, as four leaders and three assistant U.S. attorneys left the agency for BigLaw firms, including Sidley Austin LLP and Simpson Thacher & Bartlett LLP. But it wasn't all departures for the DOJ, which also picked up a new Criminal Division deputy assistant attorney general from Schulte Roth & Zabel LLP.

  • September 30, 2014

    Morrison & Foerster Partner Nominated To DC Superior Court

    President Barack Obama on Monday said he intends to nominate a Morrison & Foerster LLP partner whose practice focuses on white collar criminal and complex commercial litigation to fill a judicial slot on the Superior Court of the District of Columbia.

  • September 30, 2014

    Alleged Facebook Scammer Fights Requests For Atty Docs

    A man charged with filing a sham lawsuit against Facebook Inc. urged a New York federal judge on Monday not to require him to hand over attorney communications from DLA Piper LLP and Kasowitz Benson Torres & Friedman LLP, saying that doing so would “eviscerate” attorney-client privilege.

  • September 30, 2014

    3rd Circ. Won't Rehear Ex-Goldman Coder's $2.3M Fee Case

    Goldman Sachs Group Inc. need not pay the $2.3 million legal bill of a former computer programmer facing charges for stealing high-frequency-trading code, the Third Circuit said Monday, denying his bid to have the full appeals court reconsider his argument that Goldman's officer insurance covered all vice presidents like him.

Expert Analysis

  • High Court To Go Fishing For Answers In Anti-Shredding Case

    Diana Lloyd

    Is it reasonable for Sarbanes-Oxley to apply to a fisherman who throws red grouper into the sea? Yates v. U.S., which will be heard by the U.S. Supreme Court this fall, illustrates the overarching issue of the government applying certain statutes to criminalize behavior beyond what one would reasonably understand to be prohibited, say Diana Lloyd and Kevin Ma of Choate Hall & Stewart LLP.

  • DOJ Proposal Shows Focus On Individuals In Corporate Crime

    Helen Cantwell

    The U.S. Department of Justice's proposal to import Park liability to financial crimes would require legislative action and is unlikely to gain traction for other reasons. Nevertheless, it is significant that the attorney general considers such liability for financial executives to be desirable, say attorneys with Debevoise & Plimpton LLP.

  • Should FIRREA Whistleblower Bounties Be Higher?

    Andrew W. Schilling

    The Financial Institutions Reform, Recovery, and Enforcement Act’s whistleblower bounties at False Claims Act levels could lead to absurdly high and wastefully excessive awards. At the same time, U.S. Attorney General Eric Holder may be right when he suggests that awards capped below annual bonuses may not be enough to encourage confidential reporting by well-placed Wall Street insiders, says Andrew Schilling of BuckleySandler LLP.

  • Riley Cellphone Search Rule Is Slowly Sweeping The Nation

    Carrie Sarhangi

    Commentators opined that the U.S. Supreme Court's landmark Riley v. California opinion would clear up the murky waters created by courts less decisive or intrepid, and, just three months later, the patience of our nation’s courts in tolerating warrantless cellphone searches has already waned, says Carrie Sarhangi of Montgomery McCracken Walker & Rhoads LLP.

  • Saving Face: DOJ Prosecutes Executives Over Corporations

    Peter R. Zeidenberg

    Feeling the sting from criticism over its failure to prosecute individuals responsible for the 2008 financial crisis, the U.S. Department of Justice is now shifting its prosecutorial priorities — the DOJ will no longer focus on the corporate entity, now it will target corporate executives responsible for the misconduct of their companies, says Peter Zeidenberg of Arent Fox LLP.

  • Corporate Probation May Follow An Antitrust Conviction

    Steven Kowal

    When a company has been convicted for a criminal antitrust offense, the Antitrust Division of the U.S. Department of Justice now may seek to impose the significant burdens of corporate probation in addition to enormous monetary fines and incarceration for senior executives. This is a major policy shift, say Steven Kowal and Lauren Norris of K&L Gates LLP.

  • Opportunities And Pitfalls In The Legal Cloud

    David Houlihan

    Like "big data" and other effective software marketing buzzwords, “cloud” makes something that is very complex sound simple — and even friendly. Most attorneys are not prepared to dig into the distinctions between public, private and hybrid cloud models, or the niceties of how or where their data is transmitted and stored, says David Houlihan of Blue Hill Research Inc.

  • Food Fighters: DOJ, FDA May Be Coming For Executives

    R. Trent Taylor

    The prosecution of Peanut Corporation of America's executives is significant because it is one of the first times food processors have been criminally tried in a federal food-poisoning case. While the government has rarely in the past used criminal provisions to charge individuals in the food industry, that may be changing, say attorneys at McGuireWoods LLP.

  • The Rise of Coordinated Health Care Fraud Enforcement

    Brian Laliberte

    In the health care fraud space, parallel coordinated investigations are now the norm and not the exception. Targets must be concerned about making statements in an administrative or civil proceeding that can and will be used against them in a related criminal investigation and prosecution, says Brian Laliberte of Ulmer & Berne LLP.

  • A General Counsel's Top 10 Billing Tips

    Francis M. Drelling

    Nothing makes an in-house counsel feel like they are being nickeled-and-dimed more than receiving a $3.50, stand-alone invoice. Forcing anyone to spend time on a $3.50 invoice is, quite frankly, just not cool, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.