White Collar

  • April 24, 2015

    Pa. AG's Contempt Hearing Over Prosecutor Firing Postponed

    A Pennsylvania state judge on Thursday delayed a contempt hearing for Attorney General Kathleen Kane over the firing of a prosecutor to hear the AG’s arguments that she did not violate a protective order barring her from interfering in an investigation of grand jury leaks from her office.

  • April 24, 2015

    Jury In Goldman IP Trial Mired In Confusion Over Obscure Law

    The jury in the trial of a former Goldman Sachs Group Inc. programmer accused of stealing computer code for the bank’s high-frequency trading platform was unable to reach a verdict Friday, despite more than two days of deliberations, and appeared perplexed by the charges.

  • April 24, 2015

    Chesapeake Energy Paying $25M To End Bid-Rigging Charges

    Chesapeake Energy Corp. will pay $25 million to settle allegations that it conspired to rig bids for publicly held Michigan oil and gas leases, state officials said Friday, while federal authorities are investigating Chesapeake’s ex-CEO for possible antitrust violations.

  • April 24, 2015

    4 Hurdles The Gov't Faces In Monumental 'Flash Crash' Case

    The stunning allegation that a single trader in the London suburbs helped tip off the 2010 flash crash ignited a global storm of commentary. But while the arrest of Navinder Singh Sarao on Tuesday has put U.S. prosecutors in the limelight, they still have their work cut out for them. Here, Law360 looks at four challenges the government faces.

  • April 24, 2015

    Lynch’s Skills Could Help Mend DOJ Rift With Lawmakers

    Incoming U.S. Attorney General Loretta Lynch is unlikely to make radical changes to the Justice Department's focus on issues such as cyber- and financial crime, but her strong relationship-building skills could still help mend a rift between Congress and the DOJ, former colleagues say.

  • April 24, 2015

    Fla. Appeals Court Upholds Acquitted Mayor's Reinstatement

    A Florida appeals court on Friday affirmed a lower court's ruling that Michael Pizzi should be reinstated as Miami Lakes mayor following his acquittal on federal bribery and extortion charges and the subsequent lifting of his suspension by the governor.

  • April 24, 2015

    Indiana Attorney Cops To Stealing $2M From Clients

    Attorney Clark Holesinger agreed to plead guilty Thursday in Indiana federal court for stealing $2 million from clients through a variety of schemes, from convincing the parents of a child injured at birth to give him their malpractice settlement to luring clients to invest in a fake development company.

  • April 24, 2015

    Calif. Fast Food Mogul Charged With $20M Loan Fraud

    A federal grand jury hit a California property developer with a 21-count indictment Thursday accusing the former owner of dozens of fast food franchises of defrauding banks of more than $20 million in inflated commercial loans.

  • April 24, 2015

    Blankenship Judge's Law Clerk Quarantined From Suit

    A law clerk allegedly friendly to mine workers' rights has been quarantined from the trial in which former coal magnate Don Blankenship is accused of mandating mine-safety obstructions that killed 29 Massey Coal Co. employees.

  • April 24, 2015

    Bharara Blasts 'Systemic' Corruption In NY

    U.S. Attorney Preet Bharara said Friday that corruption in New York is a "systemic" problem in need of public discussion, comments that come in the wake of a New York federal judge scolding the prosecutor for bundling allegations of corruption against former state Assembly Speaker Sheldon Silver with a broader commentary on corruption in the state.

  • April 24, 2015

    Houston Am., SEC Settle Over Colombia Oil Project 'Fiction'

    Houston American Energy Corp. and its former head have settled with the U.S. Securities and Exchange Commission in cease-and-desist proceedings over allegations the oil explorer and producer overstated the value of a Colombian oil field by billions of dollars.

  • April 24, 2015

    German Watchdog Winding Down Deutsche Bank Libor Probe

    Germany’s financial regulator will complete its investigation into alleged manipulation of the London Interbank Offered Rate and other key benchmarks by Deutsche Bank AG traders by the end of June, according to media reports.

  • April 23, 2015

    Canadian Hacker Gets 18 Months In $100M Microsoft IP Theft

    A Canadian man involved in an international hacking ring was sentenced to 18 months in federal prison on Thursday for stealing more than $100 million in intellectual property and other proprietary business data from Microsoft Corp. and others, according to Delaware federal court records.

  • April 23, 2015

    Barry Bonds Case Seen As Rebuke To Overzealous Feds

    In reversing Barry Bonds’ obstruction of justice conviction on Wednesday, the Ninth Circuit sought to rein in federal prosecutors’ use of a statute that some legal experts say is dangerously broad.

  • April 23, 2015

    Rothstein Trustee Settles Investor Row In Bankruptcy Case

    The liquidating trustee of Ponzi schemer Scott Rothstein's defunct Florida law firm moved Wednesday for court approval of a settlement agreement with creditor Coquina Investments LLC to divide about $6.5 million in an escrow account that is in dispute and avoid likely costly additional litigation.

  • April 23, 2015

    7 Sauciest Lines From Deutsche Bank's Libor Traders

    When U.S. and U.K. authorities slammed Deutsche Bank AG with $2.5 billion in penalties and a guilty plea for one subsidiary for manipulating a slew of benchmark interest rates, they also released a treasure trove of trader chats waxing less than poetic on everything from the link between employee bonuses and favorable rate submissions to how illegal the rate-fixing was. Here, Law360 looks at a few of the choicest lines.

  • April 23, 2015

    US Atty Details Alleged Bribes In New Silver Indictment

    Manhattan prosecutors bolstered their corruption suit against former New York State Assembly Speaker Sheldon Silver, saying Thursday that he shuffled more than $4 million in allegedly ill-gotten gains from Weitz & Luxenberg PC and a real estate tax firm between investment accounts.

  • April 23, 2015

    Alleged 'Flash Crash' Trader Told UK Watchdog To Ban HFT

    The British futures trader accused of helping to trigger the 2010 flash crash through a computerized manipulation scheme once urged U.K. regulators to ban high-frequency trading and block market participants from entering fake orders designed to fool others, according to emails made public Thursday.

  • April 23, 2015

    Store Designer Says Foot Locker Client Demanded Kickbacks

    Retail design CEO Steven Kaitz pled guilty to an $18 million bank fraud in Manhattan federal court Thursday, saying financial pressure on his business and demands for kickbacks from a now-fired Foot Locker Inc. director pushed him into breaking the law.

  • April 23, 2015

    Hitachi Exec Cops To Auto Parts Price-Fixing Role

    A former Hitachi Automotive Systems Ltd. manager was sentenced to 15 months in prison Thursday for his role in a conspiracy to manipulate prices on auto parts sold in the U.S., the latest executive ensnared in the U.S. Department of Justice's industry probe.

Expert Analysis

  • Court Has Broad Authority Over Assets To Satisfy Restitution

    Daniel W. Levy

    The Second Circuit recently affirmed the government’s sweeping authority over a defendant’s assets in the face of unpaid restitution obligations. This authority includes the power to restrain assets prior to the entry of a restitution order, and — as exemplified by U.S. v. Bengis — this authority extends to assets held overseas, says Daniel Levy, a principal at McKool Smith PC and former federal prosecutor.

  • BSI Provides Road Map For Future Swiss Bank Agreements

    Matthew D. Lee

    The BSI SA nonprosecution agreement is the first public declaration of how the U.S. Department of Justice will treat banks looking to resolve their potential tax evasion-related criminal liabilities. Swiss banks that fail to make the kind of full and complete disclosures that BSI appears to have made do so at their peril, says Matthew Lee, partner at Blank Rome LLP and a former DOJ trial attorney.

  • Trading Inside Information With 'Friends' Post-Newman

    Jon Eisenberg

    Newman is a sea change in the law when it comes to insiders who tip friends without a quid pro quo. At least in the Second Circuit, the government’s argument that a mere tip to a friend violates insider trading law is dead on arrival, says Jon Eisenberg of K&L Gates LLP.

  • A New Tool For Extraterritorial Sanctions Enforcement

    Christopher LaVigne

    Recent sanctions enforcement actions have focused on overseas financial institutions and U.S. dollar clearing and associated “stripping.” The Schlumberger Oilfield Holdings Ltd. case, however, reflects a break from this trend. Relying on a theory of “facilitation,” the U.S. Department of Justice dramatically expanded the scope of prior criminal enforcement actions in this arena, say Christopher LaVigne and Danforth Newcomb of Shear... (continued)

  • Major Changes Coming To Sentencing Guidelines For Fraud

    Vince Farhat

    Through proposed amendments to the sentencing guidelines, the U.S. Sentencing Commission appears to be shifting the emphasis away from severely punishing those who caused a large group of victims to lose a small amount of money and toward those who meant to cause "substantial" financial harm to even one victim, say attorneys with Holland & Knight LLP.

  • A Look At The 1st Criminal 'Spoofing' Prosecution: Part 2

    Clifford C. Histed

    Given a recent decision in the first “spoofing” criminal case involving futures trader Michael Coscia, as well as recent regulatory guidance, it is fair to say that there is now a regulatory dragnet set for spoofers. One of the most effective ways rule enforcers prove intent is through the use of a trader’s own admissions, says Clifford Histed, partner at K&L Gates LLP and former federal prosecutor who supervised the investigation ... (continued)

  • 2015 Begins With A Drop In FCPA Enforcement Activity

    Marc Bohn

    The pace of enforcement under the U.S. Foreign Corrupt Practices Act has slowed considerably in 2015, with just three resolved enforcement actions during the year’s first quarter — all brought by the U.S. Securities and Exchange Commission — which represents the lowest level of enforcement to begin a year since 2006, say Marc Bohn and Austen Walsh of Miller & Chevalier Chtd.

  • A Look At The 1st Criminal 'Spoofing' Prosecution: Part 1

    Clifford C. Histed

    A federal judge recently ruled, in the first criminal case of its kind, that the "spoofing" and fraud indictment against futures trader Michael Coscia would not be dismissed. But under what circumstances will canceling a trade be considered a regulatory violation or, worse yet, a crime? The answer to that question is not always clear, says Clifford Histed, partner at K&L Gates LLP and former federal prosecutor who supervised the in... (continued)

  • REBUTTAL: Donziger’s Lies Cannot Excuse His Fraud

    Stephen W. Green

    Steven Donziger’s recent “op-ed” in this publication is his latest deception — repeating on the eve of appeal the lies he has told a thousand times before. Far from a never-before-detailed account, his article is nothing more than a recycling of discredited misrepresentations and outright falsehoods, says Stephen Green, vice president for policy, government and public affairs, Chevron Corp.

  • Lessons From The Schlumberger Settlement

    Ed Krauland

    The case against Schlumberger Oilfield Holdings Ltd. is particularly noteworthy in that it is a non-U.S. company whose non-U.S. subsidiary was charged with criminal conspiracy to violate U.S. sanctions laws based on the conduct of employees — many of whom were non-U.S. citizens — of another business unit located in the United States, say attorneys with Steptoe & Johnson LLP.