White Collar

  • September 29, 2016

    DOJ Subpoenas Chesapeake Over M&A Accounting Methods

    Chesapeake Energy Corp., already under heavy scrutiny over its oil and gas leasing practices, revealed Thursday that it's received a subpoena from federal prosecutors seeking information on the company's accounting methods used for buying and classifying oil and gas properties.

  • September 29, 2016

    Greenberg Says Rivalry Within AIG Behind $200M Capco Deal

    Former AIG CEO Maurice Greenberg said at trial on Thursday that competition between the insurer's divisions prompted an attempt to convert underwriting losses to investment losses after a state court judge said he spent a “sleepless night” wondering about the transaction's purpose.

  • September 29, 2016

    BREAKING: Och-Ziff Inks $413M FCPA Deal, Unit Pleads Guilty

    Och-Ziff Capital Management Group LLC will pay nearly $413 million in a deferred prosecution agreement and U.S. Securities and Exchange Commission settlement, while an African subsidiary pled guilty to violating the Foreign Corrupt Practices Act by bribing government officials, the SEC said Thursday.

  • September 29, 2016

    Justices To Review Colo. Rule Over Restitution Refund

    The U.S. Supreme Court agreed Thursday to consider whether Colorado's policy that individuals with overturned convictions must prove their innocence with evidence to get back monetary penalties is in violation of their due process rights.

  • September 28, 2016

    DA Argues Jury Was Right To Convict Goldman Programmer

    The Manhattan District Attorney’s Office asked a New York state appeals court Wednesday to reinstate the conviction of former Goldman Sachs Group Inc. programmer Sergey Aleynikov over accusations of source code theft from the bank’s high-speed trading platform, saying a jury rightly found him guilty.

  • September 28, 2016

    Och-Ziff Nears $400M Deal, Guilty Plea For Unit In FCPA Row

    Och-Ziff Capital Management Group LLC is expected to pay more than $400 million and a subsidiary will plead guilty to end investigations by the U.S. Department of Justice and the U.S. Securities and Exchange Commission into whether it bribed African officials, according to reports on Wednesday.

  • September 28, 2016

    Defense Attacks GWB Scandal Mastermind's Testimony

    An attorney for a former public official on trial over the George Washington Bridge lane closures pounced Wednesday on a series of disparaging text messages by the mastermind behind the scandal to challenge claims that the two men were close friends and took part in a political payback scheme.

  • September 28, 2016

    Co. Should Face $8.5B Iraq War Fraud Suit, Magistrate Says

    A Georgia federal magistrate judge recommended Wednesday that a Kuwaiti warehousing contractor face allegations it defrauded the U.S. Department of Defense related to $8.5 billion in Iraq War food contracts, concluding the company can't raise contractual issues at the dismissal stage.

  • September 28, 2016

    Mass. High Court Limits Police Cellphone Seizures

    Police can't seize or search a suspect's cellphone based on an inference that if more than one person committed a crime with him, the suspect would likely have used his cellphone to do so, the Massachusetts Supreme Judicial Court ruled in a precedential decision Wednesday that privacy advocates are cheering.

  • September 28, 2016

    Former REIT Exec Denies Covering Up $12M Earnings Error

    Ex-American Realty Capital Properties CFO Brian S. Block on Wednesday denied charges of securities fraud, conspiracy and making false filings three weeks after Manhattan U.S. Attorney Preet Bharara accused him of covering up a $12 million earnings error at the real estate investment trust now known as Vereit Inc.

  • September 28, 2016

    Greenberg Scolded For Lack Of 'Direct Answers' At Fraud Trial

    A New York state court judge overseeing former American International Group Inc. CEO Maurice “Hank” Greenberg's civil fraud trial told him on Wednesday to stop pointing to his reliance on “lawyers and accountants” in answer to questions about a challenged reinsurance deal.

  • September 28, 2016

    Ex-PetroTiger CEO, Quinn Emanuel Arbitration OK'd By Court

    A Florida appeals court on Wednesday affirmed an order sending a former PetroTiger CEO who pled guilty in New Jersey to bribing a Colombian official to arbitration with Quinn Emanuel Urquhart & Sullivan LLP over $3.6 million in fees owed to the law firm.

  • September 28, 2016

    Petty Theft Conviction Of Man Who Diverted Stream Axed

    A California appeals court on Tuesday reversed the conviction of a California man accused of petty theft of water for diverting the course of a stream, finding the state only has a regulatory interest in use of public waters that otherwise are not property that can be the subject of a larceny.

  • September 28, 2016

    Pharmacy Exec Wants Civil Docs In Meningitis Murder Trial

    A former executive of the now-defunct Massachusetts compounding pharmacy linked to a fatal 2012 meningitis outbreak urged a federal court Wednesday to let him access and use documents from a sweeping multidistrict litigation as he prepares for his January trial on separate murder charges.

  • September 28, 2016

    Gerova CEO Found Guilty Of $20M Pump-And-Dump Scheme

    A New York jury on Wednesday convicted Gerova Financial Group Ltd. president and CEO Gary Hirst of fraud and conspiracy, the sixth conviction in the $20 million pump-and-dump scheme.

  • September 28, 2016

    Former Brooklyn Federal Prosecutor Joins K&L Gates

    A former New York federal prosecutor who helped win guilty pleas from individuals who hacked newswires to trade on nonpublic information has joined K&L Gates LLP as a partner in Boston.

  • September 28, 2016

    DOJ May Withhold Docs From ACLU In Surveillance Case

    A New York federal judge rejected the American Civil Liberties Union’s request to compel the U.S. Department of Justice to release documents concerning warrantless surveillance evidence in criminal cases, agreeing Tuesday that various DOJ National Security Division internal records constituted attorney work product not subject to the Freedom of Information Act.

  • September 28, 2016

    Och-Ziff Brass Escape Derivative Suit Over FCPA Probes

    A New York state judge has tossed a derivative shareholder suit claiming Och-Ziff Capital Management Group LLC's directors allowed the hedge fund manager to violate the Foreign Corrupt Practices Act and hid the misbehavior from investors despite federal investigations, saying the company acted in good faith in investigating the claims.

  • September 28, 2016

    FINRA Fines NY Firm Over $2.5B Venezuelan Bond Sales

    The Financial Industry Regulatory Authority has reached a settlement with a New York-based brokerage firm over claims that it failed to implement anti-money-laundering safeguards in the sale of over $2.5 billion in Venezuelan bonds.

  • September 28, 2016

    Trial Set For Ex-Deutsche Bank Traders In Libor Fraud Case

    Two former Deutsche Bank traders accused of manipulating the London Interbank Offered Rate will go to trial on Jan. 8, 2018, a New York federal judge said Wednesday morning, after one of the men pled not guilty to 11 federal criminal charges.

Expert Analysis

  • Should General Counsel Disclose Potential FCPA Violations?

    20160929 John Lacey.jpg

    When company officials discover that one of their employees or outside agents has bribed a foreign official, general counsel and upper management face an unpleasant dilemma. And recent DOJ guidance appears to complicate the situation, says John Lacey of Connell Foley LLP.

  • Clarifying Bank Fraud Law — What's At Stake In Shaw V. US

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    Next week, for the second time in two years, the U.S. Supreme Court will hear argument in a case concerning the scope of the bank fraud statute. A change in the elements of bank fraud may have ripple effects in both civil and criminal cases that involve other statutes, including the Racketeer Influenced and Corrupt Organizations Act, says Katherine Toomey of Lewis Baach PLLC.

  • Talking 'Bull': Episode 2, The Woman In 8D

    Roy Futterman

    In this weekly column, real-life New York City jury consultant and psychologist Roy Futterman parses fact from fiction in "Bull," the new TV series about a fictional NYC jury consultant/psychologist. Spoiler alert ...

  • The Courtroom Where It Happened: Hamilton As A Lawyer

    Randy Maniloff

    Often lost in discussions about Alexander Hamilton is that he was an extremely important New York lawyer. He had an extensive law practice until his death in 1804 and he wrote what is considered to be the first treatise in the field of private law. Ultimately, Hamilton certainly did get "a lot farther by working a lot harder, by being a lot smarter, by being a self-starter," says Randy Maniloff of White and Williams LLP.

  • Takeaways From A Criminal Pro Bono Case

    Allyson Fortier

    Representing a victim in a criminal matter is not your run-of-the-mill pro bono case and involves a number of considerations, strategies, and skills distinct from daily civil litigation practices. After representing two victim-witnesses in a sex-trafficking case, Allyson Fortier and Nancy Schroeder of WilmerHale discuss issues they encountered before, during and after trial.

  • Why Have Lawyers Forgotten About The Middle Class?

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    Sorry, fellow lawyers, judges and legislators, but the jig is up. It’s time to show the public the cards up our sleeves and give them a chance to weigh in on the fairness of a system that touches so many aspects of their everyday lives, says Chas Rampenthal, general counsel of LegalZoom.

  • Harris Corp. FCPA Declination Is First Of Its Kind

    Robert W. Kent Jr.

    Commentators have justifiably been suspicious of regulators’ claims that they will reward companies that have strong Foreign Corrupt Practices Act compliance programs and that respond to allegations of misconduct as the government has recommended. However, it is difficult to read the recent Harris Corp. resolution as anything other than the government following through on its promises, says Robert Kent of Baker & McKenzie LLP.

  • Keeping The DOJ Discovery Playbook Secret

    Daniel Wenner

    Does the confidential "Federal Criminal Discovery Blue Book" help federal prosecutors ensure that the defense gets what they need to prepare their defense, or does it help those prosecutors fight against defense motions for more evidence? That’s what undoubtedly drove the National Association of Criminal Defense Lawyers to make its Freedom of Information Act request, says Daniel Wenner of Day Pitney LLP.

  • The Perils Of Parallel FCA Proceedings

    Tony Maida

    Parallel criminal and civil proceedings in False Claims Act cases raise important and troublesome issues for the defense, including protecting the defendant’s Fifth Amendment rights while mounting a robust defense in the civil case. But, as shown in recent decisions from the Eastern District of Kentucky and Southern District of New York, parallel proceedings may also prove challenging to the U.S. Department of Justice, say Tony Mai... (continued)

  • When Demand Letters Constitute Extortion In California

    Felix Shafir

    In 2006, the California Supreme Court held that a lawyer’s prelitigation communications can constitute extortion. Ever since, lower courts have wrestled with how to distinguish between extortionate threats and proper demand letters. The most important distinction is between threats of civil litigation and threats of criminal prosecution, say Felix Shafir and Jeremy Rosen of Horvitz & Levy LLP.