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White Collar
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September 29, 2023
Cigna To Pay $172M To End Medicare Advantage Investigation
Health insurer Cigna Corp. announced on Friday that it will pay approximately $172 million in an agreement with the federal government to resolve claims that the insurer exaggerated patient illnesses in order to extract more money from the Medicare Advantage program.
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September 29, 2023
CFTC Fines Goldman Sachs $3M Over Disruptive Trades
Goldman Sachs has agreed to pay a $3 million fine after the U.S. Commodity Futures Trading Commission determined the financial institution failed to make sure the trading of one of its customers was not disruptive and then omitted information from the commission's subsequent investigation.
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September 29, 2023
Banks Must Continue Fighting Hedge Fund's Spoofing Claims
A New York federal judge has again refused to dismiss a hedge fund's spoofing claims against the U.S. and Canadian securities arms of three major financial institutions, ruling that the fund pointed to specific examples of the alleged misconduct and evidence suggesting the banks knew what they were doing.
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September 29, 2023
Deutsche Bank ESG Fine May Be Preview Of SEC Climate Rule
The U.S. Securities and Exchange Commission's $19 million settlement with a Deutsche Bank unit over its controls related to environmental, social and governance goals may be a sign of what's to come for public companies if and when the regulator's planned climate disclosure rule is finalized, experts say.
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September 29, 2023
CFTC Says Forex Pool Bilked $7.1M From Participants
The Commodity Futures Trading Commission has filed suit against a purported forex commodity pool operator and its agent for allegedly bilking more than $7.1 million from participants to pay for luxury cruises and vehicles while operating a Ponzi-like scheme.
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September 29, 2023
SEC Fines Newell Brands, Ex-CEO Over Accounting 'Scrub'
The U.S. Securities and Exchange Commission on Friday fined consumer products giant Newell Brands Inc. $12.5 million and penalized its former CEO over claims that they misled investors by engaging in dubious accounting practices to boost disappointing sales figures.
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September 29, 2023
Wait For New Judges Frustrates Mass. Lawyers
The 40 vacant judgeships in Massachusetts state courts are contributing to litigation delays and causing tension — especially in criminal cases, product liability and medical malpractice matters, where getting to trial as quickly as possible can be crucial, attorneys say.
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September 29, 2023
Chemical Co. To Pay Feds $218M To End Bribery Claims
A North Carolina chemical manufacturer has agreed to pay the government more than $218 million in a nonprosecution agreement to resolve allegations that it bribed foreign officials for business at state-owned oil refineries, the U.S. Department of Justice announced Friday.
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September 29, 2023
1st Guilty Plea In Georgia Trump Election Interference Case
Atlanta bail bondsman Scott Graham Hall on Friday became the first defendant to plead guilty in the Georgia election interference case against former President Donald Trump and others, a federal judge ruled that former U.S. Department of Justice official Jeffrey Clark can’t move his prosecution to federal court, and the court rejected a bid by former Trump campaign attorney Kenneth Chesebro to suppress his emails from evidence. Here Law360 breaks down the latest developments in the case.
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September 29, 2023
CFTC Charges Seychelles Company With Crypto Fraud
The U.S. Commodity Futures Trading Commission sued an international web of entities collectively known as Cryptobravos for allegedly scamming tens of millions from U.S. investors through a crypto trading business that did "little or no trading on behalf of its customers."
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September 29, 2023
Investors Drop Case Against Terraform Over Crypto Collapse
Investors in Terraform Labs have voluntarily dropped their claims accusing the crypto company and its CEO of racketeering, selling unregistered securities and misleading investors ahead of the multibillion-dollar crash of its signature digital assets.
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September 29, 2023
Trump To Face NY AG As 'Fraud' At Trial, His Empire At Stake
After three years of investigation, litigation and ceaseless appeals, the New York attorney general is set to bring former President Donald Trump to trial Monday as she seeks to put him out of the real estate business for good and claw back $250 million in allegedly ill-gotten gains.
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September 29, 2023
Mosby Asks To Tell Jury Retirement Funds Were 'Her' Money
Former Baltimore state's attorney Marilyn Mosby urged a federal judge Friday to reject prosecutors' attempt to prevent her from arguing at her upcoming trial that money she took from her retirement account under allegedly false pretenses was "her" money.
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September 29, 2023
Pro Say: A Cheat Sheet For The New Supreme Court Term
The U.S. Supreme Court justices return to the bench on Monday for a new term sure to have an impact, with issues ranging from gun ownership rights in domestic violence cases to the legality of administrative courts and the First Amendment implications of public officials blocking critics on social media.
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September 29, 2023
SkyeTec To Pay $2.35M Over False Energy Star Certifications
Florida-based energy rating and building inspection company SkyeTec will pay $2.35 million to settle claims that it violated federal laws by knowingly making false statements to the U.S. Environmental Protection Agency about thermal bypass inspection results it was performing for homes seeking Energy Star certification, the U.S. Department of Justice announced Friday.
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September 29, 2023
11th Circ. Scraps Conviction Of Former Stun Gun Co. Worker
A three-judge Eleventh Circuit panel has decided a federal court went too far when it sentenced the former employee of a Florida stun-gun maker to three weeks in prison for her involvement in selling weapons to police that had been at the heart of a $7.6 million intellectual property judgment won by the Taser brand.
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September 29, 2023
South Korea Bank's NY Unit Fined $25M Over AML Lapses
The New York-based subsidiary of South Korean financial giant Shinhan Financial Group will pay federal and New York state banking regulators a total of $25 million in connection with claims that "substantial compliance deficiencies" affected its transaction monitoring and its obligations under the anti-money laundering Bank Secrecy Act despite previous enforcement actions to address the issues.
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September 29, 2023
Up First At High Court: CFPB's Funding, ADA Tester Suits
The U.S. Supreme Court will begin its new term by hearing arguments over the constitutionality of the Consumer Financial Protection Bureau's funding structure, the meaning of "and" in a criminal sentencing statute and whether so-called Americans with Disabilities Act testers have standing to sue. Here, Law360 breaks down this week's oral arguments.
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September 29, 2023
Fla. Tax Preparer, Others Indicted In Refunds Scam
A Florida tax preparer violated a court order to leave the tax business and falsified returns to trigger inflated refunds for participants in a three-year scheme called "the note program," according to a federal indictment in Orlando.
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September 29, 2023
PE Exec Avoids Prison On 'Varsity Blues' Tax Charge
A parent whose "Varsity Blues" fraud and bribery convictions were undone by the First Circuit was sentenced Friday to six months of home confinement for taking tax deductions on payments he made to the ringleader of the college admissions scheme, with a judge rejecting the government's bid for a 15-month prison term.
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September 29, 2023
High Court To Tackle Confrontation, Forfeiture Procedures
The U.S. Supreme Court on Friday agreed to review two criminal court procedure cases related to a defendant's right to cross-examine expert witnesses who testify at trial for the prosecution and the flexibility of a criminal forfeiture order deadline.
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September 29, 2023
States Ask To Block Sandoz Spinoff Over Price-Fixing Claims
State enforcers and others have asked a Pennsylvania federal court to halt Novartis AG's planned spinoff of its Sandoz unit, saying the move could stop them from recovering overcharges from the company for a sprawling conspiracy to fix generic drug prices.
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September 29, 2023
Ex-Philly Union Business Manager Can't Delay Corruption Trial
A Pennsylvania federal judge has denied former International Brotherhood of Electrical Workers Local 98 business manager John Dougherty's counsel's request for more time to prepare for Dougherty's second corruption trial, cementing the ex-union leader's court date for sometime this fall.
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September 29, 2023
Importer's Atty Won't See Protected Docs, Trade Court Rules
The U.S. Court of International Trade on Friday denied a Florida importer's request to allow his criminal defense attorney access to government documents in a civil case alleging he evaded duties on Chinese products, a bid the government described as a ploy.
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September 29, 2023
Hospice Head Gets 4 Years For $150M Medicare Billing Fraud
A hospice medical director was sentenced to four years in prison and ordered to pay $18 million for his role in submitting more than $150 million in bogus Medicare claims on behalf of patients he falsely claimed were near death.
Expert Analysis
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Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees
The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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Tornado Cash Saga Presents Thorny Issues For Fintechs
A recent Texas federal court ruling and a U.S. Department of Justice indictment concerning the cryptocurrency mixer service Tornado Cash raise novel and important issues regarding smart contracts that could complicate the development and nature of decentralized crypto projects, as well as the future of fintech business models, say attorneys at Venable.
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The Likable Witness: Key Traits And Psychological Concepts
Though witnesses must appear credible to juries, they should also be likable in order to make an emotional connection, and certain gestural, behavioral and psychological aspects of their testimony can be modified to improve their perceived likability, says Gillian Drake at On Trial Associates.
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Takeaways From Recent Corporate Cooperation Rulings
Recent decisions from New York and New Jersey federal courts in U.S. v. Coburn and U.S. v. Tournant suggest that a company’s consistent communication and cooperation with prosecutors does not render it a government actor, but also highlight certain internal investigation pitfalls for corporations to avoid, say attorneys at Sidley.
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Biden Impeachment Probe May Turn On Definition Of 'Benefit'
The U.S. House of Representatives’ impeachment inquiry into whether President Joe Biden benefited from his son Hunter Biden's business dealings could turn on a narrow interpretation of “personal benefit,” but a broader definition also has legal precedent in securities and bribery laws, says Andrew Vollmer at George Mason University.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Checking In On How SuperValu Has Altered FCA Litigation
Four months after the U.S. Supreme Court's ruling in U.S. ex rel. Chutte v. SuperValu, the decision's reach may be more limited than initially anticipated, with the expansion of the scienter standard counterbalanced by some potential defense tools for defendants, say Elena Quattrone and Olivia Plinio at Epstein Becker.
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Tossed FIFA Bribery Convictions May Spur New DOJ Offense
After a New York federal court vacated the bribery convictions of two defendants in the U.S. Department of Justice’s sprawling FIFA probe, prosecutors may continue to pursue foreign commercial corruption through other means, albeit with some limitations, say attorneys at Cleary.
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Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Opinion
Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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Opinion
Calif. Ruling Got It Wrong On Trial Courts' Gatekeeping Role
Ten years after the California Supreme Court reshaped trial judges’ role in admitting expert opinion testimony, a state appeals court's Bader v. Johnson & Johnson ruling appears to undermine this precedent and will likely create confusion about the scope of trial courts’ gatekeeping responsibility, say Robert Wright and Nicole Hood at Horvitz & Levy.
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How Jan. 6 Riot Cases Could Affect White Collar Defendants
Though the prosecutions of individuals involved in the Jan. 6 attack on the U.S. Capitol deal with fact patterns markedly different from white collar offenses, the emerging case law on what it means to act “corruptly” will likely pose risks and opportunities for white collar defendants and their attorneys, says Ben Jernigan at Zuckerman Spaeder.
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How To Protect Atty-Client Privilege While Using Generative AI
When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.
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Futility Exception To Remanding Rule Could Be On Last Legs
A recent Fifth Circuit decision squarely confronting the futility exception to remanding cases with insufficient subject matter jurisdiction leaves the Ninth Circuit alone on one side of a circuit split, portending a tenuous future for the exception, say Brett Venn and Davis Williams at Jones Walker.
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How New Lawyers Can Leverage Feedback For Growth
Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.