White Collar

  • 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.

  • September 30, 2014

    Germany Seeks Ringleaders In $171M Carbon Tax Scheme

    German officials on Tuesday sought help tracking down two Pakistani men suspected of leading a tax evasion scheme that bilked Germany of €136 million ($171 million) in taxes through the fraudulent trading of carbon emission rights, widening a probe that has also drawn in Deutsche Bank AG.

  • September 30, 2014

    Trader In Simpson Thacher Insider Case Must Repay $3M

    A Financial Industry Regulatory Authority arbitration panel has ordered a former Morgan Stanley Smith Barney LLC broker to repay nearly $3 million in bonuses he was awarded prior to being accused of an insider trading scheme that also ensnared a former Simpson Thacher & Bartlett LLP clerk.

  • September 30, 2014

    Ex-Traders Call On Barclays To Keep Picking Up Legal Bills

    Three former derivatives traders for Barclays Capital Inc. alleged on Tuesday in New York federal court that the bank wrongly stopped paying legal fees for their defense of regulators' allegations that they were part of a scheme to manipulate the London interbank offered rate.

  • September 30, 2014

    Prosecutors Ask Pa. High Court To Stay Ex-Justice's Sentence

    Allegheny County prosecutors on Tuesday asked the Pennsylvania Supreme Court to deny a request by former Justice Joan Orie Melvin to stay a portion of her public corruption sentence requiring her to write apology letters to state judges pending a possible appeal, and instead stay the sentence in its entirety.

  • September 30, 2014

    SEC In Settlement Talks With Evercore Insider Trader

    The U.S. Securities and Exchange Commission is in settlement talks with Frank Perkins Hixon Jr., a former Evercore Partners Inc. investment banker who was sentenced in August to 30 months in prison for insider trading, according to a recent court filing.

  • September 30, 2014

    DOJ Wants Shipping Price-Fixing Suit Stayed Amid Trial

    The U.S. Department of Justice on Monday asked a Florida federal judge for a limited discovery stay in a civil case alleging shipping companies ran a scheme to fix prices for freight transport to Puerto Rico, saying the pause will allow a related criminal trial to move forward unfettered.

  • September 29, 2014

    Atty Backs 'Golfing Buds' Defense In Insider Trading Case

    A Massachusetts attorney charged criminally with trading on inside information a golfing buddy allegedly gave to him told a federal judge on Saturday that he seconded his friend's argument that civil claims should be tossed because golfing buddies don't have a fiduciary-like relationship.

  • September 29, 2014

    Firm Owner Admits Paying $1M In Bribes To JPMorgan, GMAC

    The owner of two San Diego-based mortgage investment firms admitted in California federal court on Friday that he paid $1 million in bribes to "insiders" at JP Morgan Chase Bank NA, GMAC Mortgage LLC and National City Bank in order to win bids for mortgage loans sold on the secondary market, according to federal prosecutors.

  • September 29, 2014

    Pa. Jury Finds Ex-Bank Head Guilty Of Embezzling Funds

    A federal Pennsylvania jury on Friday found a former director of Metropolitan Savings Bank guilty of embezzling about $350,000 in bank funds, according to prosecutors.

  • September 29, 2014

    Onyx Traders Can't Kill SEC's $4M Insider Trading Suit

    A New York federal judge on Monday refused to toss a U.S. Securities and Exchange Commission suit alleging two United Arab Emirates investors reaped $3.7 million through insider trading in Onyx Pharmaceuticals Inc. and Life Technologies Corp., finding it sufficiently states a claim.

  • September 29, 2014

    BNP Paribas Chair To Resign As Bank Moves Past Sanctions

    BNP Paribas' chairman and director said he will be stepping down from the French bank, which has a presence in 75 countries and more than 180,000 employees, just three months after BNP agreed to pay $8.97 billion and plead guilty to violating economic sanctions.

  • September 29, 2014

    Fla. High Court Presses Gov. On Cleared Mayor's Suspension

    The Florida Supreme Court on Monday ordered Gov. Rick Scott to show cause why his suspension of Michael A. Pizzi Jr. should not be revoked now that a jury has acquitted the former Miami Lakes mayor on federal bribery and extortion charges.

  • September 29, 2014

    Disbarred Atty Gets 3 Years Probation For Tax Fraud

    A Minnesota federal judge on Friday sentenced a former St. Paul, Minnesota, attorney who was disbarred in 2013 for misappropriating client funds to three years of probation for employment tax fraud, bucking the government’s recommendation of jail time but requiring the defendant to pay $245,000 in restitution.

Expert Analysis

  • 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.

  • Criminal Division Wants In On FCA Whistleblower Complaints

    Christopher Wray

    Now that an early criminal review by the U.S. Department of Justice will be standard operating procedure in every whistleblower matter — in addition to potentially concurrent review by criminal assistant U.S. attorneys in the district where the qui tam action is filed — False Claims Act defendants may face a greater threat of prosecution, say attorneys with King & Spalding LLP.