White Collar

  • May 22, 2015

    DOJ Finds Criminal Wrongdoing In GM Ignition Switch Probe

    Federal authorities have reportedly identified criminal wrongdoing in their investigation of General Motors Co. over faulty ignition switches linked to more than 100 deaths and are working out details of what could be a record settlement.

  • May 22, 2015

    NY Atty Gets Prison For Bribery Scheme Over NJ Rail Project

    A New York attorney was sentenced to six years in prison Friday for conspiring with a New Jersey Department of Transportation engineer in a bribery scheme that fraudulently inflated the cost of a grant-funded railroad repair project.

  • May 22, 2015

    Writ Voiding 'Squawk Box' Guilty Plea Forced Feds' Hand

    A Manhattan federal judge's use of a rare writ to erase former Merrill Lynch assistant Irene Santiago's guilty plea for lying in the Squawk Box securities fraud case may have been a valid exercise in sympathy, but its value as a possible precedent for use by less sympathetic convicts forced the government to have it knocked out on appeal.

  • May 22, 2015

    2nd Circ. Affirms Fraud Convictions Of McGinn Smith Execs.

    The Second Circuit Court of Appeals has affirmed the convictions and sentences of top-ranking McGinn Smith & Company Inc. executives, but blasted a New York federal judge for improperly allowing a letter written well before the alleged fraud occurred to be used in cross-examination.

  • May 22, 2015

    Former Access Exec. Seeks Leniency In Kickbacks Case

    A former executive of a health care-focused marketing company who pled guilty to altering tax files after being accused in New York federal court of taking kickbacks, should be given a light sentence because he fought through child abuse and learning disabilities to become a successful person, he claimed in a sentencing memorandum Thursday.

  • May 22, 2015

    Texas Man Cops To $12M Fake Oil Interests Scam

    A Texas man accused of duping investors out of nearly $12 million by selling interests in oil and gas wells he never owned pled guilty Thursday to one count of mail fraud, according to prosecutors.

  • May 22, 2015

    Ex-VC Exec Flees Amid Insider Trading, Fraud Charges

    A former Oak Investment Partners executive has fled the United States after being criminally charged with insider trading and separately accused of defrauding the venture capital fund's investors of $27.5 million, government lawyers said Thursday.

  • May 22, 2015

    Big Banks Never Stopped Rigging Forex Market, Suit Says

    The day after the U.S. Department of Justice announced a $5.6 billion settlement with five big banks, JPMorgan Chase & Co., Barclays PLC and others are once again being accused of rigging the foreign exchange market, this time by a putative class of bank customers who claim the conspiracy continues to this day.

  • May 22, 2015

    Madoff Trustee Defends $900M Suit Against 1st Feeder Fund

    The liquidating trustee of Bernie Madoff's bogus investment firm on Thursday defended his clawback suit seeking $900 million from the two operators of Madoff's first feeder fund and their families, saying the pair were instrumental in growing the Ponzi scheme and concealing the fraud from government investigators.

  • May 22, 2015

    Wildstein Surfaces In Class Actions Over Bridge Scandal

    A key figure in the George Washington Bridge scandal moved Friday to enter the fray in class actions alleging civil rights violations over the September 2013 reduction of access lanes to the bridge, which comes after a failure to defend himself in the litigation left him in default.

  • May 22, 2015

    SEC's Stein Blasts Waiver Grants To Felon Banks

    A top U.S. Securities and Exchange Commission member on Friday said she is concerned the guilty pleas the government extracted from five banks over benchmark rate manipulation have been reduced to mere symbolic exercises after her fellow commissioners granted the banks a fresh round of regulatory waivers.

  • May 22, 2015

    Eatery Near Texas Biker Shootout Sues Twin Peaks

    A Waco, Texas, restaurant closed by law enforcement authorities after the deadly biker gang shootout at the neighboring Twin Peaks restaurant sued Twin Peaks on Friday for gross negligence, asking for $1 million in compensation for property damage and loss of business.

  • May 22, 2015

    Father, Son Who Worked At Madoff Firm Deserve Leniency: US

    Prosecutors are seeking leniency for a father-son duo who worked at Bernie Madoff's securities firm and cooperated with the government’s investigation into the largest Ponzi scheme in U.S. history.

  • May 22, 2015

    Sandusky Whistleblower Can Access Ex-Penn State GC Emails

    A Pennsylvania judge said Thursday that he would not bar the release of purportedly privileged communications between two former Penn State University administrators and the school’s general counsel in a suit by a former assistant football coach who says he was fired for blowing the whistle on sex offender Jerry Sandusky.

  • May 21, 2015

    Ex-Mutual Benefits Atty Can't Get Retrial For Juror Mix-Up

    The former Mutual Benefits Corp. outside counsel sentenced to 10 years imprisonment and ordered to pay $827 million in joint restitution for a massive insurance investment scam, lost his bid for a new trial Thursday when a Florida federal judge found no grounds for allegations of juror misconduct.

  • May 21, 2015

    Execs Charged For Fixing Spark Plug Prices To Ford, Others

    A grand jury indicted two executives from NGK Spark Plug Co. Ltd. Thursday over the same plot to fix prices on auto parts sold to seven major automakers that already cost the Japanese company $52 million in criminal fines.

  • May 21, 2015

    Hospital Admin Gets 40 Years For $116M Medicare Scam

    A Texas federal court on Wednesday sentenced an assistant administrator at a Houston hospital to 40 years in prison and ordered him to pay $31 million in restitution for his role in a scheme that fraudulently charged Medicare $116 million for mental health and substance abuse treatments.

  • May 21, 2015

    Venture Capitalist Charged In NJ With $2M CrossFit Fraud

    A professed entrepreneur and venture capitalist was charged Thursday in New Jersey with cheating investors in CrossFit exercise businesses out of more than $2 million, as part of an alleged fraud that began after his legal woes over an unrealized film about the New York Yankees and other projects.

  • May 21, 2015

    6th Circ. Upholds $120M Judgment Against Mich. Oil Fraudster

    The Sixth Circuit on Thursday affirmed a $120 million judgment against Joseph P. Zada, a Michigan man who enticed hockey great Sergei Federov among others to invest millions of dollars with promises of big returns from Saudi Arabian oil holdings, finding that Zada was subject to securities laws and that a hefty civil penalty was properly imposed.

  • May 21, 2015

    NJ Man Gets 7 Yrs For Role In $15M Mortgage Fraud Scheme

    A New Jersey federal judge on Thursday sentenced a man who had pled guilty to conspiring to defraud financial institutions and launder stolen funds as part of a $15 million mortgage scheme to profit off of overbuilt condos to seven years in prison, the Department of Justice announced.

Expert Analysis

  • What Was Wrong With BHP Billiton's Compliance Program

    Lisa Prager

    Assistant Attorney General Leslie Caldwell recently reiterated a common theme from enforcement agencies — having a written compliance program on paper is not sufficient. The U.S. Securities and Exchange Commission's settlement with BHP Billiton Ltd. for Foreign Corrupt Practices Act violations is the quintessential case in point, say attorneys with Schulte Roth & Zabel LLP.

  • What’s Missing From The SEC’s Forum Selection Guidance

    Thomas A. Hanusik

    In its recent guidance on forum selection, the U.S. Securities and Exchange Commission missed a golden opportunity — instead of addressing the legitimate and widespread criticism of its increasing use of the administrative forum, the SEC dodged the key issues and failed to make the forum selection process fairer to defendants, say attorneys with Crowell & Moring LLP.

  • DOJ Is Trying To Show Benefits Of Corporate Cooperation

    Ryan Rohlfsen

    Recent Foreign Corrupt Practices Act cases and commentary from U.S. Department of Justice officials illustrate possible costs, benefits and pitfalls in the disclosure and cooperation calculation, say Ryan Rohlfsen and David Nordsieck of Ropes & Gray LLP.

  • 10 Corporate Culture Lessons From Deutsche Bank

    Betsy P. Collins

    Regulators blamed Deutsche Bank's Libor-related misconduct on the culture within the bank, whose unsecured and permissive business model allowed egregious and pervasive misconduct to thrive. Fixing a broken corporate culture is hard and painful, and regaining a lost reputation for integrity is virtually impossible, say Betsy Collins and Mignon Lunsford of Burr & Forman LLP.

  • US V. Vassiliev — Some Foreign Bribery Is Beyond US Reach

    Drew Harker

    A California federal court's recent decision in U.S. v. Vassiliev limiting the reach of U.S. anti-bribery laws, not including the Foreign Corrupt Practices Act, confirms that the courts will rein in expansive enforcement efforts if extraterritoriality requirements for jurisdiction are lacking, say attorneys with Arnold & Porter LLP.

  • Consider 5 Things Before Choosing An E-Discovery Provider

    Barry O’Melia

    There has been a rapid and robust growth in the number of companies offering electronically stored information collection, management and processing services. But a recent survey indicated that not all service providers offer the level of expertise needed in today’s world of big data, the cloud and mobile devices, says Barry O’Melia, chief operations officer at Digital WarRoom.

  • FCA Threats Are Likely Greatest Outside The Fortune 100

    Joseph D. Jean

    While very large settlements involving Fortune 100 companies grab the most headlines, they tend to draw attention away from the significant number of False Claims Act suits brought against private and middle-market companies. Even though these smaller amounts are not nearly as eye-popping, they could represent a greater financial risk on a relative basis, say Jeffrey Kiburtz and Joseph Jean of Pillsbury Winthrop Shaw Pittman LLP.

  • Court-Appointed Experts — A Powerful But Rarely Used Tool

    Philip Woo

    The Tessera Inc. patent case highlights a useful procedure seldom used in the federal court system — Federal Rule of Evidence 706, which allows for a court-appointed expert. But Rule 706 provides little guidance on when to use such an expert, how to select one or how to work with one. Here are some tips, say Philip Woo and Nathan Greenblatt of Sidley Austin LLP.

  • The Egg Salmonella Sentencing: An Exercise In Imagination

    Richard L. Goldfarb

    There is some amount of validity to the idea that crimes that include no criminal intent should, in appropriate circumstances, lead to no jail time and no “grave damage to an offender’s reputation.” But in the Quality Egg LLC salmonella poisoning case, it is clear that the executives were aware of the dangers and simply didn't do anything about them, says Richard Goldfarb of Stoel Rives LLP.

  • A Closer Look At DOJ's 1st E-Commerce Price-Fixing Case

    Rick Rule

    While the U.S. Department of Justice has billed the David Topkins price-fixing case as the Antitrust Division’s first criminal prosecution against a conspiracy specifically targeting e-commerce, the prosecution was in some ways foreshadowed by earlier prosecutions of the division, including its civil investigation of, and subsequent lawsuit against, ATP Co. in the early '90s, say attorneys with Cadwalader Wickersham & Taft LLP.