White Collar

  • August 21, 2014

    US Defends $150B Forfeiture Claim Against Madoff Aides

    EDITING -- Federal prosecutors told a New York federal judge Thursday that five people convicted of buttressing Bernie Madoff's 40-year-long investment fraud should receive the harshest sentences possible, including $150 billion in forfeitures, arguing that all five reasonably foresaw the alleged fraud at least a decade before it collapsed in spectacular fashion.

  • August 21, 2014

    Man Gets 7 Months For Unregistered Lobbying For Zimbabwe

    A Chicago man was sentenced Thursday in Illinois federal court to seven months in prison for illegally lobbying U.S. lawmakers on behalf of Zimbabwean officials, including President Robert Mugabe, to have sanctions against the African nation lifted.

  • August 21, 2014

    Lowenstein Sandler Adds Former Newark Mayoral Candidate

    Lowenstein Sandler LLP said Thursday that it will strengthen its litigation and white-collar criminal defense departments in its Roseland office with the addition of a former Newark mayoral candidate who previously served as New Jersey’s assistant attorney general and counsel to Attorney General Anne Milgram.

  • August 21, 2014

    Perry's Lawyers Say Veto Not Linked To Ethics Investigation

    Lawyers for indicted Texas Gov. Rick Perry released an affidavit Thursday morning they say shows there's no link between the governor's veto of funding for a state ethics unit — which led to his indictment — and an investigation the ethics unit was conducting into a cancer research agency he supported.

  • August 20, 2014

    Ex-Aeropostale Exec Gets 8 Years For $350M Kickback Scheme

    The former Aeropostale Inc. executive convicted of receiving more than $25 million in kickbacks from a clothing supplier in exchange for $350 million worth of business was sentenced Wednesday to eight years in prison by a New York federal judge.

  • August 20, 2014

    Fla. Condo Seller Pleads Guilty To Bank Fraud, To Pay $18M

    Brendan Bolger has pled guilty to his role selling condominiums through shell company Capital Management Guarantee LLC as part of a bank fraud scheme and has agreed to pay $18 million, the U.S. Attorney’s Office for the Middle District of Florida said Wednesday.

  • August 20, 2014

    Blackwater Guard Asks For Acquittal Of Murder Charge

    A former Blackwater Worldwide security guard called on a Washington, D.C., federal judge on Tuesday to throw out the first-degree murder case against him for allegedly killing an Iraqi driver in a Baghdad traffic circle, saying prosecutors have provided no evidence linking him to the man's death.

  • August 20, 2014

    S. African Antitrust Watchdog Names New Cartel Chief

    South Africa's antitrust enforcer has tapped a 14-year agency veteran to run its cartel unit, as the watchdog continues to bulk up its ranks.

  • August 20, 2014

    Aerospace Co. Head Pleads Not Guilty To Illegal Exports

    The co-founder of aerospace technology company Valley Forge Composite Technologies Inc. pled not guilty in Kentucky federal court Friday to conspiracy and money laundering charges stemming from his allegedly illegal microcircuit sales to Hong Kong and China.

  • August 20, 2014

    WD Trading Ponzi Schemer Agrees To CFTC Trading Ban

    WG Trading Co. Ponzi schemer Stephen Walsh, who has yet to be sentenced after pleading guilty to criminal charges in April, on Wednesday agreed to a permanent ban on trading and soliciting funds, and to cooperate with investigators, to settle civil litigation brought against him by commodities regulators.

  • August 20, 2014

    TD Urges 11th Circ. To Rehear $67M Rothstein Fraud Verdict

    TD Bank NA on Tuesday urged the Eleventh Circuit to revisit a ruling that investors in jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme had standing to win a $67 million verdict from the bank, saying plaintiff Coquina Investments LLC didn't suffer personal injury and thus lack standing.

  • August 20, 2014

    House Committee's Bid For 'Fast and Furious' Docs Stymied

    The U.S. Department of Justice does not have to immediately cough up documents subpoenaed by a House committee in a dispute over the controversial “Fast and Furious” gun-tracking program, but must prove that privilege legitimately applies to each document, a D.C. federal judge ruled Wednesday.

  • August 20, 2014

    Ex-SEC, DOJ Litigator Joins DLA Piper In DC

    A U.S. Securities and Exchange Commission lawyer who focused on public corruption has left the regulator for a partner spot at DLA Piper, where he'll continue to work on global investigations, white collar defense and securities enforcement, the firm said Wednesday.

  • August 20, 2014

    Feds Want 3 Years For Ex-DuPont Worker In Trade Secret Plot

    Prosecutors urged a California federal judge on Tuesday to sentence a former DuPont Co. engineer to three years in prison for conspiring to steal proprietary information and sell it to Chinese government-owned companies, days after the engineer himself asked for just home confinement.

  • August 19, 2014

    Samsung To Pay $2.3M To End FCA Suit Over Trade Breach

    Samsung Electronics America Inc. has agreed to pay $2.3 million to settle a whistleblower suit in Maryland federal court accusing the tech giant of violating the False Claims Act by providing resellers with inaccurate information regarding its products’ country of origin, the U.S. Department of Justice announced Tuesday.

  • August 19, 2014

    Wedbush Calls FINRA Market-Access Practices Case 'Unfair'

    Wedbush Securities Inc. shot back Tuesday at the Financial Industry Regulatory Authority's disciplinary action targeting Wedbush's trading practices, saying that its risk-management controls were designed to comply with FINRA rules and accusing the agency of attempting to regulate through enforcement proceedings.

  • August 19, 2014

    Ex-DuPont Engineer Wants No Prison For Trade Secret Plot

    A former DuPont Co. engineer convicted of taking part in a conspiracy to steal the company's proprietary information and sell it to Chinese government-owned companies urged a California federal judge to sentence him to just home confinement — far less than the 15 years his partner in crime got last month.

  • August 19, 2014

    Va. Hotel Broker Gets 11 Years For Alleged $55M Scams

    The owner of Virginia hotel brokerage Molinaro-Koger was sentenced Tuesday to 11 years in prison on charges he caused more than $55 million in losses through multiple fraud schemes, including an alleged Ponzi scheme that ripped off prospective hotel buyers.

  • August 19, 2014

    Lawsky Bares Teeth With Latest Standard Chartered Penalty

    With Tuesday's latest penalty for Standard Chartered PLC over anti-money laundering violations, New York Superintendent of Financial Services Benjamin Lawsky is proving himself to be as feared an enforcer as his federal counterparts — if not even more so.

  • August 19, 2014

    Texas Gov. Waives Arraignment, Faces Corruption Charges

    Texas Gov. Rick Perry waived his right to an arraignment and turned himself in for booking at a Texas courthouse Tuesday afternoon, days after a grand jury indicted him on two felony charges related to allegations of public corruption, vowing to fight the charges.

Expert Analysis

  • AKS Unlikely To Be Raised Over Pharma Discount Sales

    Stephanie Trunk

    A recently issued opinion from the U.S. Department of Health and Human Services' Office of Inspector General assented to a drug manufacturer’s online discount program for branded drugs, making discount and referral arrangements less likely to raise concerns when they avoid federal reimbursement systems, say Stephanie Trunk and Brian Schneider of Arent Fox LLP.

  • How To Control Risk And Cost Of E-Discovery

    "If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.

  • From Landlord To Locked Up: The Long Arm Of The SCRA

    Kirk D. Jensen

    While financial institutions — including private equity firms — rarely think of themselves as landlords, they may be subject to a narrow window of exposure under the eviction provisions of the Servicemembers Civil Relief Act, violations of which can lead to severe penalties, including incarceration, say attorneys with BuckleySandler LLP.

  • Inside 2nd Circ. Ruling On Overseas Whistleblower

    Mary Beth Hogan

    For companies with global operations, the Second Circuit's recent decision in Liu v. Siemens AG should provide at least some level of comfort that allegations by foreign employees regarding conduct exclusively outside the United States are outside the reach of Dodd-Frank’s anti-retaliation provision, say attorneys with Debevoise & Plimpton LLP.

  • How To React To Chinese Anti-Monopoly Surprise Inspections

    Lipeng Mei

    Recently, Chinese anti-monopoly authorities raided Chinese offices of Microsoft and Mercedes-Benz, shocking many companies doing business in China. When facing a surprise inspection, companies should keep five points in mind, says Lipeng Mei, an anti-monopoly enforcement official with the Chinese government, and Lei Mei of Mei & Mark LLP.

  • Picard Powerless To Block Independent Madoff Settlements

    Jonathan Sablone

    The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.

  • 5 Most Common Weaknesses In Anti-Corruption Compliance

    Michael Volkov

    Chief compliance officers who spend more than 20 percent of their time on gifts, meals, entertainment and travel procedures and expenses are prime examples of misguided compliance, says Michael Volkov of The Volkov Law Group LLC.

  • Lessons From SEC Focus On Compliance Officers

    Louis Greenstein

    The two recent U.S. Securities and Exchange Commission proceedings involving Penson Financial Services Inc. and Private Capital Management Inc. illustrate the continued focus of SEC enforcement on the duties and potential liability of compliance officers, say attorneys with McGuireWoods LLP.

  • Is Project Labscam II On The Horizon?

    Marilyn May

    While there is no way of knowing whether — or how many — lab investigations and sealed qui tams are proceeding in U.S. attorney’s offices, there is a strong likelihood that law enforcement will be taking a closer look at a recent study from the U.S. Department of Health and Human Services' Office of Inspector General in deciding what cases are worth pursuing, say Marilyn May and Jennifer Kang of Arnold & Porter LLP.

  • An In-House Lawyer's Top 10 Tips For Outside Counsel

    Francis M. Drelling

    To this day, I have yet to see a litigation hold letter that was written by someone who understands the realities of how a business is actually run. In-house counsel cannot issue decrees to business units that read like they are issued by the king to his subjects, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.