White Collar

  • July 24, 2014

    Ex-Merrill Chair Ducks Madoff Victims' $5M Investment Suit

    A Maine federal jury on Wednesday cleared former Merrill Lynch & Co. Inc. Vice Chairman John Steffens and his hedge fund Spring Mountain Capital LP from a Maine couple’s suit seeking to recover the up to $4.8 million they had lost in Bernie Madoff’s more than $17 billion Ponzi scheme.

  • July 24, 2014

    NY Prosecutor's Charter Jet Ride Broke Rules, Watchdog Says

    New York's public ethics watchdog said Wednesday that a veteran prosecutor broke the rules by accepting travel on a jet chartered by opposing counsel in the state's fraud case against former American International Group Inc. CEO Maurice “Hank” Greenberg but issued no penalty.

  • July 24, 2014

    Ex-Deputy Gets 1 Year For Aiding Rothstein's Scheme

    A former Broward County sheriff's deputy was sentenced Thursday to one year in prison for agreeing to use his position in law enforcement to support convicted Ponzi schemer Scott Rothstein and his law firm Rothstein Rosenfeldt Adler PA in a $1.2 billion fraud.

  • July 24, 2014

    Ex-Jenkens & Gilchrist Atty Seeks Probation For $7B Tax Fraud

    A former Jenkens & Gilchrist PC attorney who took part in a $7 billion tax fraud scheme asked an Illinois federal court on Wednesday to sentence him to probation instead of prison, citing his "extraordinary" cooperation with the government's investigation.

  • July 24, 2014

    Ex-SEC Litigator Healy Leaves Reed Smith For Locke Lord

    Former SEC senior assistant chief litigation counsel Terence Healy has left Reed Smith LLP after two years and joined Locke Lord LLP's Washington, D.C., office, Locke Lord's Washington managing partner confirmed Thursday.

  • July 24, 2014

    Barclays Fires Back At NY AG's Dark Pool Claims

    Barclays PLC asked a state judge Thursday to toss New York Attorney General Eric T. Schneiderman's claims the firm tried to increase the market share of its dark pool by lying to clients and investors, saying not only did it not commit fraud but that the attorney general has no regulatory authority to bring his claims.

  • July 24, 2014

    Morgan Stanley Pays SEC $275M To Settle RMBS Claims

    The U.S. Securities and Exchange Commission on Thursday said it settled claims against three Morgan Stanley entities accused of misleading investors in a pair of residential mortgage-backed securitizations that were the last subprime deals the firms underwrote, sponsored and sold.

  • July 24, 2014

    BofA To Pay $16.5M To Settle Alleged Sanctions Violations

    Bank of America Corp. agreed to a more than $16.5 million settlement with the U.S. Department of the Treasury's sanctions enforcement unit over allegations that the bank processed around 200 transactions for known drug traffickers subject to U.S. sanctions, the Treasury said Thursday.

  • July 24, 2014

    SEC Denies Whistleblower Award In $18M Harbinger Case

    The U.S. Securities and Exchange Commission has denied an award to a would-be tipster who sought to collect a portion of the $18 million paid to the agency after its landmark enforcement action last year against Harbinger Capital Partners LLC and its chief executive Philip Falcone, according to newly released documents.

  • July 23, 2014

    JPMorgan Ducks Suit Claiming Leaders Knew Of Madoff Fraud

    A New York federal judge on Wednesday tossed a shareholder derivative action claiming JPMorgan Chase & Co. leaders knew Bernard Madoff was engaged in fraud but turned a blind eye to preserve its lucrative profits from Madoff-related business, finding it didn't plead particularized facts.

  • July 23, 2014

    UBS Asked To Put Up $1.1B Bail In Money Laundering Probe

    French officials placed UBS AG under formal investigation Wednesday for alleged money laundering, ordering the Swiss banking giant to put up bail of €1.1 billion ($1.49 billion) in a growing probe of claims that it helped wealthy clients dodge French taxes, the company confirmed.

  • July 23, 2014

    Madoff Judge Denies Fake Motion To Disqualify US Atty

    A New York federal judge on Wednesday denied an apparently fake motion on behalf of Bernie Madoff seeking to disqualify the U.S. Attorney from Madoff’s criminal suit on grounds that include the use of “voice-to-skull technology" to influence the court.

  • July 23, 2014

    Jones Day Snatches Up Akin Gump Litigation Partner

    Jones Day has hired an Akin Gump Strauss Hauer & Feld LLP litigation partner and former assistant U.S. attorney to join the global firm's securities litigation and Securities and Exchange Commission enforcement practice in New York, Jones Day recently announced.

  • July 23, 2014

    SEC Says Stanford's Criminal Conduct Charges 'Slanderous'

    The U.S. Securities and Exchange Commission on Wednesday urged a Texas federal judge to reject convicted Ponzi schemer Robert Allen Stanford’s call to appoint a special prosecutor and advise the court of criminal conduct by a court-appointed officer, calling his allegations “slanderous, sensational and unsupported.”

  • July 23, 2014

    2 KFI Trade-Theft Accomplices Sentenced To Probation

    A California federal judge on Wednesday sentenced two accomplices of disgraced Korn/Ferry International recruiter David Nosal to one year of probation each, finding that their cooperation helped the firm secure Nosal's conviction for hacking, stealing trade secrets and conspiring to use proprietary information.

  • July 23, 2014

    Perkins Coie Lures Ex-SEC Atty From Morrison & Foerster

    Former Morrison & Foerster LLP partner and U.S. Securities and Exchange Commission enforcement attorney Sean T. Prosser has joined Perkins Coie LLP's white collar and investigations practice in its San Diego office, the firm said this week.

  • July 23, 2014

    FHA Official Charged With Stealing DOT Grant Money

    A high-ranking Federal Highway Administration official was charged Wednesday in New Jersey federal court on six counts of making false statements and fraud for allegedly funneling grant funds he oversaw to himself through a straw corporation and falsifying disclosure documents to conceal the fraud.

  • July 23, 2014

    Ex-Husband Of 'Sopranos' Star Denies $300M Stock Fraud

    Two executives of a New York investment firm, one of whom is the ex-husband of an actress from “The Sopranos,” pled not guilty Wednesday to federal charges they helped run a $300 million stock manipulation scheme.

  • July 23, 2014

    Bingham McCutchen Adds Ex-SDNY Atty to White-Collar Group

    A former Manhattan federal prosecutor has left his post after five years of high-profile prosecutions including hedge fund managers Michael Balboa and Rengan Rajaratnam to join Bingham McCutchen LLP’s white-collar practice in New York.

  • July 23, 2014

    Suspected Cybercrime Ring Indicted Over StubHub Hack

    Six individuals have been indicted in New York for their alleged participation in an international cybercrime ring that authorities in North America and Europe have linked to unauthorized electronic ticket purchases made through more than 1,600 StubHub Inc. users' accounts, Manhattan's district attorney said Wednesday.

Expert Analysis

  • 3 Takeaways From BofA's $16.5M Settlement With OFAC

    Michael V. Dobson

    Bank of America’s roughly $16.5 million settlement with the Office of Foreign Assets Control for alleged violation of OFAC sanctions is a treasure trove of sanctions compliance guidance, and carries important lessons for those preparing to submit voluntary self-disclosures, says Michael Dobson Jr. of Kelley Drye & Warren LLP.

  • 6 Years In, Why Haven't FRE 502(d) Orders Caught On?

    John A. Rosans

    In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Government Seeks To Outsource Criminal Enforcement

    Nathan Hochman

    The prosecution of FedEx Corp. for allegedly failing to heed signs that illegal Internet pharmacies were using its facilities represents a significant expansion of the U.S. Department of Justice’s efforts to outsource law enforcement to private third parties and then go after these third parties when they fail to meet an undefined standard of compliance, rather than focus on the criminals, say attorneys with Bingham McCutchen LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • When You Are Responsible For Your Book Of Business

    Jennifer Topper

    Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.

  • An Inventive Way To Remove Pure State Court Claims

    Michael E. Blumenfeld

    Nondiverse state court defendants facing purely state law claims that seek to secure federal jurisdiction should determine whether a good faith basis exists to pursue a third-party action against a federal actor in order to trigger the representative U.S. Attorney’s certification and remove such claims under the Westfall Act, say Michael Blumenfeld and Jonathan Singer of Miles & Stockbridge PC.

  • Beyond Citigroup: A Look At Corporate Settlements

    Kirsten Mayer

    A decision in Better Markets Inc. v. United States Department of Justice may provide more clarity on the scope of Executive Branch discretion in resolving corporate cases and whether there is any role for “public interest” litigation in such matters, say attorneys with Ropes & Gray LLP.

  • Powerful Tools For Discovery And Litigation Strategy

    Nathalie Hofman

    Analytics offer opportunities for refining both discovery strategy and overall litigation strategy by providing information to support better informed decisions. As an added bonus, they can result in significant cost savings, say Nathalie Hofman and Carolyn Southerland of Huron Consulting Group Inc.

  • Madoff Foreign Entanglement Ruling Unsurprising

    Michael L. Cook

    U.S. District Judge Jed Rakoff’s recent decision to block the Madoff Securities trustee's ability to recover customer funds transferred abroad by foreign feeder funds is hardly novel in view of U.S. Supreme Court and Second Circuit precedent, says Michael Cook of Schulte Roth & Zabel LLP.