White Collar

  • March 16, 2018

    Sessions Fires FBI's Former No. 2 Just Before Retirement

    Attorney General Jeff Sessions fired former FBI Deputy Director Andrew McCabe late Friday night, roughly a day before McCabe was set to retire, because he said an internal report found the longtime Trump target made an unauthorized disclosure to the news media and lacked candor under oath multiple times.

  • March 16, 2018

    Alleged Ponzi Promoters Can't Nix $340M SEC Suit In Mass.

    A Massachusetts federal judge denied bids by two alleged former promoters of TelexFree LLC to escape a U.S. Securities and Exchange Commission lawsuit on Friday, saying the government had identified specific statements both had made to members of the state’s Dominican community urging them to invest in a company authorities have called a $340 million pyramid scheme.

  • March 16, 2018

    Va. Woman Gets 2½ Years For Microlender Investment Fraud

    A northern Virginia church member who admitted to helping her pastor and his wife run what federal prosecutors have alleged was an investment fraud disguised as an empowering, internationally oriented microlending firm was sentenced Friday in Alexandria federal court to serve 30 months in prison.

  • March 16, 2018

    Businessman Fudged Funds To Nab $30M Loan, DOJ Says

    The owner of a company that helps employers provide legal services for their employees was charged with wire fraud in Pennsylvania federal court Friday for allegedly falsifying the company’s financial health to coax a $30 million line of credit out of potential lenders.

  • March 16, 2018

    Test Of Percoco Verdict Will Shape Corruption Law

    New York Gov. Andrew Cuomo’s former aide Joseph Percoco took a blow recently in one of the first trials to produce a bribery conviction post-McDonnell, but its impact on public corruption cases will depend on whether such jury verdicts can pass muster before more discerning appeals courts.

  • March 16, 2018

    Wilmington Trust Past Due Waivers Said To Run For Years

    A Wilmington Trust Corp. backlog of unacknowledged, past due commercial loans included 142 debts worth $177.3 million that were six months to three-and-a-half years past due when 2009 ended, a witness said Friday during a Delaware fraud and securities trial for four bank executives.

  • March 16, 2018

    NY Docs Got Lap Dances, Booze From Insys, DOJ Says

    Five New York doctors prescribed a potent painkiller sold by Insys Therapeutics Inc. in exchange for money and lavish kickbacks, including lap dances and liquor that two of the doctors accepted, the U.S. Department of Justice said in a felony indictment unsealed Friday.

  • March 16, 2018

    IRS Says It's Protected From Trustee's $3.6M Clawback Suit

    The IRS is pushing back against the $3.6 million clawback suit brought by the bankruptcy trustee of doomed Ponzi vehicle DBSI Inc., telling an Idaho federal court the tax agency is merely a “conduit,” no different from a bank, and therefore immune to this type of avoidance action.

  • March 16, 2018

    Zarrab Says Former Cellmate's Rape Allegation Is 'Fiction'

    A jailhouse-rape suit lodged against Reza Zarrab, the famed Turkish-Iranian trader who admitted to participating in a sanctions-evasion scheme benefiting the Iranian government, is fiction, Zarrab's lawyer said Friday.

  • March 16, 2018

    Experts At Heart Of Tension In Health Care Prosecutions

    The rare reversal of a Kentucky heart doctor’s fraud conviction and prosecutors’ appeal highlights the way the U.S. Department of Justice is using experts to dispute the necessity of health care procedures and could add another answer to when a medical outlier can be distinguished from a fraud.

  • March 16, 2018

    3rd Circ. Affirms Plastic Surgeon's 3-Year Prison Sentence

    The Third Circuit on Friday declined to overturn a plastic surgeon's three-year prison sentence and $96,000 fine for tax evasion — and was unswayed by his argument that the trial court erred in excluding evidence that he eventually paid the tax.

  • March 16, 2018

    Aegerion Placed Under Supervision In Misbranding Settlement

    A federal judge on Friday appointed a special master to keep a watchful eye on Aegerion Pharmaceuticals Inc. as it faces court-ordered audits and the payment of $36 million to patients who were unnecessarily prescribed its expensive cholesterol drug and to government health programs that footed the bill.

  • March 16, 2018

    9th Circ. Affirms Ex-CBP Official's Bribery Convictions

    The Ninth Circuit on Thursday affirmed six jury convictions against a former U.S. Customs and Border Protection official for his participation in a scheme to pay bribes to government employees to obtain green cards and other benefits for immigrants, saying questions about his past were fair game.

  • March 16, 2018

    Enron Debt Investors Push Back On Banks' Quick Win Bids

    A group of investment funds seeking to hold Merrill Lynch, Deutsche Bank and Credit Suisse responsible for losses stemming from the infamous 2001 collapse of Enron Corp. have urged a New York federal judge to let their 15-year-old case proceed to trial, battling back against the banks’ latest efforts to slip the suit.

  • March 16, 2018

    Calif. Man Admits To $6.8M Investment Fraud Scams

    A purported California entrepreneur has admitted to bilking investors out of $6.8 million by falsely claiming that three different companies he controlled were developing technology that could dramatically increase gas mileage for any car, working on anti-counterfeiting technology and coming up with a method to convert used tires into oil.

  • March 16, 2018

    Chicago Pol Says No Evidence Supporting Bribery Charges

    A Chicago alderman accused of accepting bribes asked an Illinois federal judge to dismiss some of the charges Friday, arguing that the government’s witnesses have not established the payments were bribes or extortion.

  • March 16, 2018

    2nd Circ. Case Doesn’t Clear Kelly In GWB Scandal, Say Feds

    Prosecutors on Thursday blasted the defense argument that a recent Second Circuit opinion dealing with a convicted sex offender supports a former public official's claims that she did not violate residents' civil rights to travel freely by allegedly causing gridlock near the George Washington Bridge in a political revenge scheme.

  • March 16, 2018

    Reinsurance Execs Can Arbitrate $50M RICO Suit, Judge Says

    A New York federal judge Tuesday sent a $50 million Racketeer Influenced and Corrupt Organizations Act case against three reinsurance executives to arbitration, saying the arbitration clause in the reinsurance agreement applies to them as well as their company.

  • March 16, 2018

    Metals Co. Pleads Guilty To AML Weakness, Will Pay $15M

    Texas metals firm Elemetal LLC has pled guilty to having an inadequate anti-money laundering program and has agreed to pay $15 million and to stop buying precious metals overseas, the company and Florida federal prosecutors said Friday.

  • March 16, 2018

    Phone Co. CEO Accused Of Encrypting Devices For Cartels

    The CEO of a company that made smartphones supposedly impervious to decryption was indicted Thursday and accused of helping drug traffickers escape detection, marking the first time the U.S. says it has pursued a business accused of intentionally providing tech tools to foil law enforcement.

Expert Analysis

  • An Update On Spoofing And Its Challenges

    Ilan Guedj

    Regulators have recently increased their efforts in cracking down on spoofing, yielding an increasing number of criminal indictments and civil settlements. However, an important challenge in identifying spoofing is separating legitimate calculations from those that were intended to manipulate the market, say Ilan Guedj and An Wang of Bates White LLC.

  • Are ICOs In The Crosshairs Of New York’s Martin Act?

    Daniel Alter

    Although much attention has been paid to the U.S. Securities and Exchange Commission’s actions in the initial coin offering space, little thought has been given to the applicability of New York’s own securities fraud statute. That could be a serious oversight, says Daniel Alter of Murphy & McGonigle PC.

  • Key Statistical Issues In Eye Doc Fraud Sentencing

    Jennifer Dowdell Armstrong

    The reasonableness of an extrapolated loss calculation was a significant sentencing issue in U.S. v. Melgen last month in the Southern District of Florida. The court found flaws in both the government's and defendant’s analyses, and then calculated its own loss figures, say Jennifer Dowdell Armstrong of McDonald Hopkins LLC and Chris Haney of Forensus Group LLC.

  • What To Expect From DOJ Shift In Marijuana Enforcement

    Gerald Sachs

    Under the U.S. Department of Justice's new marijuana enforcement strategy, the DOJ is unlikely to begin prosecuting marijuana growers and distributors who are operating in compliance with state law. The DOJ will likely prosecute the most egregious violators of state law, say Gerald Sachs and Evan Shea of Venable LLP.

  • Lawyering A La Carte: Unbundled Dispute Resolution Services

    David Wallace

    There's no reason for limiting unbundled legal services to family law or even pro se litigants. Wider adoption, especially by litigators, presents an opportunity to correct law's distribution and pricing problem, to make justice practically available to all, and to dethrone litigation as the "sport of kings," says New York-based trial lawyer David Wallace.

  • 3 Critical Events For Cryptocurrency Exchanges: Part 2

    John Reed Stark

    Coordinated federal initiatives scrutinizing cryptocurrency exchanges may be viewed as alarming by entrepreneurs and their advisers. But we believe such concerns are largely misguided, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • You’re Perfect, Now Change: Perfectionism Hurts Lawyers

    Peter Norman

    Like medical professionals, lawyers often resist policies to reduce errors due to the culture of perfectionism that permeates the industry. Autonomy is key to the legal professional's prestige and the outward demonstration of competence is key to maintaining autonomy, says Peter Norman of Winnieware LLC.

  • 3 Critical Events For Cryptocurrency Exchanges: Part 1

    John Reed Stark

    Cryptocurrency exchanges must be prepared for a relentless U.S. regulatory onslaught. That seems to be the clear warning embodied in the confluence of three events last week involving three agencies that are no longer content with generating regulatory headwinds, say John Reed Stark, president of John Reed Stark Consulting LLC, and David Fontaine, CEO of Kroll Inc.

  • Fed. Circ. Implies Narrowing Of Claims Court Jurisdiction

    Stuart Turner

    Following the Federal Circuit's decision in Cleveland Assets, any protest filed at the U.S. Court of Federal Claims alleging violation of a statute or regulation that does not obviously qualify as a “procurement statute” may face a jurisdictional challenge, say Stuart Turner and Nathaniel Castellano of Arnold & Porter.

  • Opinion

    Grassley, Feinstein Debate Judicial Vetting, Obstruction

    Sen. Chuck Grassley

    It is undisputed that in his first year in office President Trump was able to confirm a significant number of judges to the federal bench. How it happened — and whether it's a good thing — are debated here by Sen. Chuck Grassley, R-Iowa, and Sen. Dianne Feinstein, D-Calif.