White Collar

  • July 22, 2016

    Minor Convictions In Acclarent Trial Raise Major Questions

    A Massachusetts federal jury may have rejected a slew of felony fraud charges against a pair of former executives for medical-device manufacturer Acclarent this week, but its verdict convicting them of 10 misdemeanors may eventually force courts to venture into hazy territory to decide where free-speech rights end and illicit off-label promotion begins.

  • July 22, 2016

    US, HSBC Urge 2nd Circ. To Block Money Laundering Report

    The U.S. and HSBC Bank USA NA both told the Second Circuit Thursday to vacate a lower court’s decision to partially unseal a report into the bank's failures to combat money laundering, saying the document is irrelevant to any judicial function.

  • July 22, 2016

    Influential Women In Securities Law: Hille Sheppard

    Sidley Austin LLP's Hille Sheppard convinced the U.S. Supreme Court to raise the bar for securities fraud and has won decisive litigation and enforcement victories for clients including Discover Financial Services and the Big Four accounting firms, making her one of Law360's Influential Women in Securities Law.

  • July 22, 2016

    Shearman & Sterling Account Held Stolen Funds, Feds Say

    The U.S. Department of Justice claims that more than $1 billion in assets were acquired with money stolen by corrupt Malaysian officials from a state-owned investment fund and that illicit funds were moved through a Shearman & Sterling LLP trust account.

  • July 22, 2016

    Prosecutor Wants Porn Argument Barred From Pa. AG's Trial

    Prosecutors are urging a state judge in Pennsylvania to bar embattled Attorney General Kathleen Kane from using evidence of pornography shared by other officials in her upcoming perjury trial.

  • July 22, 2016

    Biofuel Exec Convicted For Lies To SEC Over $56M Scheme

    An Indiana federal jury has convicted a former biofuel executive for concealing from investors a $56 million tax fraud scheme in which a subsidiary claimed to be a producer of biodiesel when in reality it was purchasing it from third parties.

  • July 22, 2016

    9th Circ. Won't Put Off Ex-Reuters Editor's Hacking Sentence

    The Ninth Circuit on Thursday shot down former Reuters social media editor Matthew Keys’ bid to stay out of prison while he appeals his conviction and two-year sentence on charges that he helped the hacker group Anonymous break into the Los Angeles Times’ website and alter content.

  • July 22, 2016

    Ex-Worker At Dallas Tech Co. Charged With Embezzling $2.4M

    A former lead systems engineer at a Dallas technology firm was arrested Thursday and charged by Texas federal prosecutors of embezzling $2.4 million from the company by causing it to place orders with fictitious businesses he created and using the funds for his own use.

  • July 22, 2016

    Wal-Mart Beats Mexican Bribery Suit In 8th Circ.

    An Eighth Circuit panel on Friday upheld the dismissal of an investor suit accusing Wal-Mart Stores Inc. directors and officers of concealing bribery at its Mexican subsidiary, agreeing with a lower court that the investors should have sought a remedy through the board before filing suit.

  • July 22, 2016

    SEC Pushes For Lifetime Ban On Ex-Barclays Trader

    The U.S. Securities and Exchange Commission's Enforcement Division urged the agency to give a former Barclays trader a lifetime industry ban Friday, arguing that an administrative judge's one-year bar for stock-parking would send a "perverse" message.

  • July 22, 2016

    NJ Man Gets 30 Mos. In $1M Corporate Embezzlement Scheme

    A New Jersey resident who pled guilty to mail fraud charges over a scheme that involved setting up fake vendor companies to sell nonexistent products to an international pharmaceutical company was ordered by a Pennsylvania federal judge Thursday to serve 30 months in prison and pay $1.2 million in restitution.

  • July 22, 2016

    Ex-Fox Rothschild Atty Gets 6 Months For Insider Trading

    A former Fox Rothschild LLP attorney was slapped with a six-month prison sentence on Friday following his conviction on charges that he used insider information to trade ahead of a $760 million insurance industry merger his firm was helping to handle.

  • July 22, 2016

    Ex-Union Boss, Hedge Fund Founder Deny Kickback Charges

    Money man Murray Huberfeld and former New York City correction officers union President Norman Seabrook denied charges Friday that they engaged in a scheme to direct union investment dollars toward Huberfeld's Platinum Partners LP fund in exchange for kickbacks that flowed back to Seabrook.

  • July 22, 2016

    J&J Unit Settles Sinus-Device FCA Suit For $18M

    Johnson & Johnson subsidiary Acclarent Inc. has settled a False Claims Act suit for $18 million, the Department of Justice announced Friday, just two days after two former executives were convicted of 10 misdemeanors for their role in the scheme to introduce a misbranded and adulterated medical device on the market.

  • July 22, 2016

    Wrigley Rooftop Owner Convicted Of Defrauding Cubs

    A federal jury on Friday found the owner of a rooftop club overlooking Wrigley Field guilty of hiding more than a million dollars in ticket sales and revenue to defraud the Chicago Cubs out of royalties the club owed as part of a contract with the team.

  • July 22, 2016

    DOJ Charges Trio In $1B Health Fraud Scheme

    The U.S. Department of Justice on Friday announced criminal charges in Florida federal court against three men accused of defrauding Medicare and Medicaid in a $1 billion scheme involving kickbacks and exploitation of drug-addicted patients.

  • July 21, 2016

    How Chicago Became The Center Of A Spoofing Test Case

    While the rapid-fire nature of modern-day trading can make the commodities industry difficult to prosecute, that hasn't stopped the U.S. Attorney's Office in Chicago from taking aim at high-frequency trading, as the recent first-of-its-kind conviction in a "spoofing" case demonstrates.

  • July 21, 2016

    Wrigley Rooftop Owner Meant To Cheat Cubs, Jury Told

    The owner of a rooftop club overlooking Wrigley Field hid ticket sales to defraud the Chicago Cubs out of royalties in part due to the bad blood between the club and the team, prosecutors told the jury as the owner’s fraud trial wrapped up in Illinois federal court on Thursday.

  • July 21, 2016

    Ex-CEO Convicted For Running $900M Online Ponzi Scheme

    A North Carolina jury on Thursday convicted the former CEO of penny auction-linked ZeekRewards for operating a $900 million internet Ponzi scheme that prosecutors say defrauded more than 900,000 investors.

  • July 21, 2016

    BakerHostetler Seeks $35M In Fees For Madoff Trustee Work

    BakerHostetler on Thursday asked a New York bankruptcy judge for more than $34.9 million in fees related to the firm’s work winding down Bernie Madoff’s firm from December through the end of March.

Expert Analysis

  • Microsoft Search Warrant Case Is A Win For Privacy

    Bradley S. Shear

    The Second Circuit's recent ruling that the U.S. Department of Justice may not utilize a U.S. search warrant to access customer data stored overseas is a victory for not only personal privacy rights but also for the theory that people’s rights in the physical world should be extended to the digital world, says attorney Bradley Shear.

  • Internal Investigations: Don't Give Law Firm A Blank Check

    John McDermott

    We have heard increasing complaints from general counsels about the runaway costs of internal investigations by outside counsel. GCs and clients — be it the company, the audit committee or a special litigation committee — are uniquely positioned to play an important role in defining and controlling the scope and costs of an investigation, say John McDermott and Emily Garnett of Brownstein Hyatt Farber Schreck LLP.

  • Views From The Bench On Sentencing Representation: Part 6

    Alan Ellis

    It may surprise readers to learn that, as with many judges I’ve interviewed, U.S. District Judge Amy J. St. Eve of the Northern District of Illinois also prefers to hear from the mental health expert at sentencing, says criminal defense lawyer Alan Ellis.

  • How Law Firms Can Create Next-Generation Office Spaces

    Tere Blanca headshot (1).jpg

    Law firms today are recognizing that the process of creating a next-generation workplace is far more complex than relocating to a more modern space in a trendier part of town. The challenge is more significant for larger firms with multiple generations represented within their executive teams, says Tere Blanca, founder of Miami-based Blanca Commercial Real Estate Inc.

  • 7 Cybersecurity Lessons From Clinton Email Case

    John Reed Stark

    With respect to the possibility of a data breach of her basement email server, Hillary Clinton’s statements exacerbated her already troublesome situation, provided critics with additional fodder for further pummeling and even prompted a lengthy federal criminal investigation. C-suite executives should learn from her ordeal, says John Reed Stark, president of John Reed Stark Consulting LLC and former chief of the U.S. Securities and... (continued)

  • Focusing A Sentencing Court On Everything But Prison Time

    Daniel Wenner

    When Chevelle Nesbeth, who was recently convicted of importation of cocaine, faced a guidelines range of 33-41 months of incarceration, a New York federal judge imposed a sentence of probation. The judge's opinion and reasoning are forceful statements about the real-world impacts of felony convictions, and have application in white collar cases, says Daniel Wenner of Day Pitney LLP.

  • A New Frontier For Bank Secrecy Act Prosecutions

    William M. Sullivan Jr.

    With an estimated 80 percent of the world’s illicit money flow stemming from trade-related activities, anti-money laundering regulators and prosecutors are progressively turning their enforcement focus to trade-based money laundering, and scrutinizing financial institutions’ trade-finance compliance programs for potential violations of the Bank Secrecy Act, say William Sullivan Jr. and Fabio Leonardi of Pillsbury Winthrop Shaw Pittman LLP.

  • Spoofing Sentence Sends Clear Enforcement Message

    Clifford C. Histed

    The case of Michael Coscia, who was sentenced Wednesday to three years in prison, is significant not only because it is the first criminal spoofing case, but also because the government’s theory that a trader can commit fraud and manipulation simply by engaging in open-market trading is gaining traction in other commodity futures cases, say Clifford Histed and Michael Ricciuti of K&L Gates LLP.

  • Will McDonnell Corruption Decision Save Silver And Skelos?

    James Corsiglia

    There has been widespread speculation that the U.S. Supreme Court's recent McDonnell decision provides a means to avoid prison for two of the most prominent politicians embroiled in corruption cases — Sheldon Silver and Dean Skelos. James Corsiglia of Cleary Gottlieb Steen & Hamilton LLP takes a look at whether their acts meet the new standard of “official acts” laid down in McDonnell.

  • How To Close A Law Firm — Practically And Ethically

    Janis M. Meyer

    Winding down a law firm is at best stressful, at worst excruciatingly painful, and often carried out as if it were an emergency, rendering the process even more difficult. There are certain common steps that should be on the firm's radar from the moment the decision to dissolve is made, says Janis Meyer, a partner with Hinshaw & Culbertson LLP who helped oversee Dewey & LeBoeuf's 2012 bankruptcy filing and the subsequent wind-down of the firm.