White Collar

  • March 3, 2015

    Atty Ordered Back To School For Harassing Deposition

    A Louisiana federal judge on Tuesday sanctioned an attorney for unprofessional and harassing conduct while deposing the CEO of Black Elk Energy LLC and ordered him to attend 10 hours of continuing legal education, saying fines have proven ineffective given previous sanctions for similar behavior.

  • March 3, 2015

    Ex-CME Worker Dodges Prison Time For Trade Secrets Theft

    An ex-CME Group Inc. software engineer was sentenced Tuesday to four years probation for stealing the source code behind the company’s electronic trading platform and shopping it to a Chinese futures exchange, escaping the nearly five-year prison term sought by federal prosecutors.

  • March 3, 2015

    LA Urges High Court To Revive Hotel Records Search Law

    The city of Los Angeles on Tuesday asked the U.S. Supreme Court to overturn a ruling that voided a city law allowing warrantless searches of hotel registries, saying the statute is a very narrow rule in a heavily regulated industry that is hugely beneficial to law enforcement.

  • March 3, 2015

    Pa. Businessman Pleads Guilty In Judge Corruption Scheme

    A Philadelphia-area business owner pled guilty on a count of mail fraud in federal court Tuesday for participating in a scheme to have a Philadelphia Municipal Court judge use his judicial position to influence the outcome of a small claims case.

  • March 3, 2015

    Ex-BDO Seidman Partner To Pay $26M For Hedge Fund Scam

    A former BDO Seidman LLP managing partner and hedge fund owner who pled guilty to securities fraud agreed on Monday to pay $26 million to settle U.S. Commodity Futures Trading Commission allegations that he misappropriated at least $13 million and spent it on a bevy of luxury homes, cars and boats.

  • March 3, 2015

    Insurer Says Property In Pot Farm Case Was 'Entrusted'

    United Specialty Insurance Co. told a New York federal court Monday that a criminal activity policy exclusion bars coverage for a realty company's property damage claim stemming from a tenant's alleged marijuana growing operation, arguing that the realty company wrongly claims it didn't "entrust" the property to the tenant.

  • March 3, 2015

    8th Circ. OKs Enhanced 2-Year Sentence For Tax Cheat

    The Eighth Circuit on Tuesday upheld a convicted tax evader’s two-year prison sentence after finding that the steps he took to avoid paying $530,000 in back taxes amounted to “sophisticated means” and warranted a harsher sentence.

  • March 3, 2015

    FCPA Self-Reporting Brings Benefits: SEC Enforcement Chief

    Companies on the fence about reporting possible overseas bribery to the U.S. Securities and Exchange Commission and other authorities need only look at cases like last week’s enforcement action against Goodyear Tire & Rubber Co. to see what cooperation can mean, the SEC’s enforcement director Andrew Ceresney said Tuesday.

  • March 3, 2015

    Mine Officer Strikes Plea Deal Over Pollution Cover-Up

    The government announced on Monday that it struck a plea deal with a platinum mine officer in Alaska federal court after he pled guilty to three counts in a suit alleging that he and other mine employees violated the Clean Water Act by discharging wastewater into a Pacific salmon spawning stream.

  • March 3, 2015

    O’Melveny Lands Cybersecurity Expert For White Collar Group

    O’Melveny & Myers LLP announced on Tuesday that former federal prosecutor and cybercrime expert Ronald L. Cheng will join the firm's Los Angeles office as a partner in its white collar defense and corporate investigations group.

  • March 3, 2015

    Recruiter For Miami Doping Scandal Sentenced To 3 Months

    A Florida man accused of recruiting Major League Baseball players for a Miami-area anti-aging clinic at the center of a recent doping scandal was sentenced Tuesday in federal court to three months imprisonment for a count of conspiracy to distribute testosterone.

  • March 3, 2015

    Barclays Has Set Nearly $2B Aside For Forex Issues

    Barclays PLC has set aside $1.92 billion for foreign exchange-related investigations and litigation, an ongoing source of “frustration” for the company's chief executive, according to a Tuesday financial release.

  • March 3, 2015

    Broad Insider Trading Bill May Overcompensate For Newman

    A U.S. congressman’s proposal to ban all trading on material nonpublic information aims to bring clarity to a murky area of securities law, but experts say the bill may go too far by toppling both the Second Circuit’s recent Newman decision and long-standing U.S. Supreme Court precedent.

  • March 3, 2015

    UK Tax Guru Gets 1 Year For Insider Trading

    The U.K. Financial Conduct Authority said on Tuesday that it has handed down one year in prison and more than £215,000 ($330,692) in fines to the former treasurer and tax specialist of one of the country’s largest supermarket chains over charges of insider trading.

  • March 3, 2015

    Petraeus To Plead Guilty To Giving Mistress Secret War Docs

    Former CIA Director David H. Petraeus will plead guilty to a federal charge of giving classified information on the war in Afghanistan to his mistress and biographer Paula Broadwell during his time at the intelligence agency's helm, court documents filed on Tuesday show.

  • March 2, 2015

    High Court May Blunt Favored Anti-Corruption Weapon

    The U.S. Supreme Court’s decision to hear an appeal by a Baltimore police officer convicted of taking kickbacks could make it more difficult for prosecutors to charge people who bribe public officials under the Hobbs Act, a favored tool in state and local corruption cases.

  • March 2, 2015

    Man Gets 9 Years For Defrauding Military SubContractors

    A federal judge sentenced an employee of multinational construction and engineering company Day & Zimmerman LLC to nine years in prison Monday following his December conviction for using a shell company to engage in two schemes, one of which defrauded a military subcontractor of $600,000.

  • March 2, 2015

    Feds Want 3-Month Reprieve In SEC Suit Against SAC's Cohen

    As the Second Circuit mulls appeals of its recent decision on the limits of insider-trading convictions, Preet Bharara's office has asked the SEC to hold off for three more months on an administrative proceeding against SAC Capital Advisors' Steve Cohen, according to a letter obtained by Law360.

  • March 2, 2015

    2 Mental Health Workers Get 6 Years In $63M Fraud Case

    A Florida federal judge has sentenced two former employees of a defunct Miami mental health care provider to six years each in prison for their roles in a $63 million Medicare and Medicaid fraud and kickback scheme, the Department of Justice announced on Friday. 

  • March 2, 2015

    Wilmington Trust Criminal Probe May Be Close To Completion

    March could be a cruel month for former Wilmington Trust Co. officers if a federal probe into what prosecutors have called a "bank-wide scheme” to conceal past due and non-performing real estate loans in a portfolio exceeding $1.7 billion bears fruit.

Expert Analysis

  • DOJ Is Losing The Battle To Prosecute Foreign Executives

    Lauren Briggerman

    The U.S. Department of Justice has yet to extradite a single executive in the auto parts investigation who refuses to voluntarily enter the United States to face charges. As a result, foreign executives from certain countries — particularly in Asia — who refuse to plead guilty may be beyond the reach of U.S. prosecutors, say attorneys with Miller & Chevalier Chtd.

  • Refusal Of Fokker DPA Provides 3 Lessons For Counsel

    Thomas Zeno

    As shown by the D.C. federal court's recent refusal of a deferred prosecution agreement in U.S. v. Fokker Services BV, the government’s blessing is not the last hurdle to resolution of an international corruption investigation, even when a company provides self-disclosure of its conduct, say Thomas Zeno and Rebecca Worthington of Squire Patton Boggs LLP.

  • Yates Ruling Is The Wrong Response To Overcriminalization

    Randall Eliason

    The worst way to respond to overcriminalization is for courts artificially to narrow criminal statutes through results-oriented decisions that ignore the plain language of the law and ultimately lead to irrational results. Unfortunately, that’s exactly what the U.S. Supreme Court did last week in Yates v. United States, says Randall Eliason, a law professor and former federal prosecutor.

  • A Warning To Tech-Savvy Prosecutors

    Daniel Wenner

    As the recent Washington Supreme Court case Washington v. Walker illustrates, visual aids such as PowerPoint presentations make it all too tempting to cross the line from persuasive to prejudicial, say Daniel Wenner and Sunita Paknikar of Day Pitney LLP.

  • Yates: A Welcome End To Prosecutorial 'Fishing' Expedition

    Diana Lloyd

    In this week's ruling in Yates v. U.S., the U.S. Supreme Court reinforced the principle that the language of a statute must be analyzed in an appropriate context and, more importantly, put a damper on prosecutors’ dangerous trend toward applying certain statutes to criminalize behavior beyond what one would reasonably understand to be prohibited, says Diana Lloyd of Choate Hall & Stewart LLP.

  • Lenity And Deference On A Collision Course

    Michael Y. Kieval

    It is clear that at least two U.S. Supreme Court justices are willing to address the issue of deference to the agency interpretation of criminal or hybrid statutes. It is less clear whether the court is interested in curbing the use of administrative adjudication to make law. Both of these trends carry particular importance for the financial services industry, say attorneys with Weiner Brodsky Kider PC.

  • Recent Lessons In Anti-Money Laundering Compliance

    Emily P. Gordy

    Chief compliance office liability continues to be one of the hottest topics in the regulatory community. Two recent enforcement actions against anti-money laundering compliance officers not only highlight the issue but also offer a number of lessons for any current or prospective AMLCO, say Emily Gordy and Renée Kramer of Shulman Rogers Gandal Pordy & Ecker PA.

  • UN Africa Report Reveals Startling Illicit Financial Flows

    Stephanie Keene

    A new, comprehensive report concludes that Africa loses more than $50 billion every year to illicit financial flows. African states are likely to devote increasing resources to the passing of new legislation concerning trade mispricing, transfer pricing and financial transparency obligations in the future, says Stephanie Keene of Covington & Burling LLP.

  • Sheldon Silver May Be Able To Beat This

    Edward J. Loya Jr.

    As difficult as the corruption case against former New York State Assembly Speaker Sheldon Silver might seem, a closer review suggests that Silver and his lawyers may have a shot at a successful defense — particularly in light of the fact that the government at this stage cannot present the testimony of a single witness who has pled guilty to participating in the alleged unlawful “schemes,” says Edward J. Loya Jr., counsel at Venab... (continued)

  • 2nd Circ. Lays Out New Rules For Restitution

    Harry Sandick

    The Second Circuit's recent ruling in U.S. v. Cuti seems to place a notable limitation on the ability of a victim of white collar crime to recover expenses incurred in the course of investigating and reporting the defendant’s criminal activity. This decision does not take into account how internal investigations are typically conducted when the allegations concern wrongdoing by senior management, say attorneys with Patterson Belkna... (continued)