White Collar

  • November 06, 2019

    Ex-Twitter Employees Spied For Saudi Arabia, Feds Say

    Two former Twitter employees have been charged with stealing private information from critics of Saudi Arabia’s regime and thousands of other users by exploiting their backdoor access to the social media site’s internal system, the U.S. Department of Justice announced Wednesday.

  • November 06, 2019

    Former Exec In Kickback Scheme Pressed On Inconsistencies

    The ex-business partner of the former president of a nuclear logistics company on trial for allegedly participating in a bribery scheme to secure contracts from a Russian state uranium supplier on Wednesday was repeatedly pressed to explain why he offered different dates for the conspiracy's beginning.

  • November 06, 2019

    Roger Stone Lied Because 'Truth Looked Bad' For Trump: DOJ

    A federal prosecutor came out swinging Wednesday during opening arguments in the criminal trial of former Trump adviser Roger Stone, asserting that the self-described political "dirty trickster" willfully and repeatedly lied to Congress "under oath to cover up his tracks" because "the truth looked bad for Donald Trump."

  • November 06, 2019

    KPMG Audit Wasn't Up To Snuff, Accounting Expert Tells Jury

    An accounting expert testifying for Merrimack College told a Massachusetts jury Wednesday that KPMG’s annual audits of the school’s financial statements did not meet professional standards because of a lack of “professional skepticism” that let indications of a then-employee’s $4.1 million student loan fraud slip by.

  • November 06, 2019

    GPB Capital Ran $1.8B Ponzi Scheme, Suit Says

    The controversy enveloping private equity fund GPB Capital Holdings LLC widened Wednesday with a proposed class action alleging the firm folded shady Russian money into a $1.8 billion Ponzi scheme that a onetime regulator said should have been obvious to any compliance officer.

  • November 06, 2019

    With Amendment Looming, TelexFree MDL Nabs 3 Settlements

    Victims of the $3 billion TelexFree Ponzi scheme told a Massachusetts federal judge on Tuesday they've reached three settlements with the company's former chief financial officer, one of its payment processors and Synovus Bank.

  • November 06, 2019

    Feds Accuse Another Ex-UAW Official Of Taking Kickbacks

    A former top United Auto Workers official was criminally charged Wednesday with scheming to use his position to illicitly obtain a contract for a watch vendor and then demanding the vendor pay him $250,000 in kickbacks, federal prosecutors said.

  • November 06, 2019

    Goldman Directors' Inaction Key To 1MDB Scandal, Fund Says

    A Georgia pension fund said that the billion-dollar 1Malaysia Development Bhd. fraud scheme was "only made possible" by a slate of current and former Goldman Sachs directors that repeatedly ignored its duties to the bank.

  • November 06, 2019

    JPMorgan Spoofing Case Keeps Civil Suit On Ice

    Spurred by prosecutors’ intensifying criminal racketeering case against current and former JPMorgan traders accused of spoofing the precious metals market, a New York federal judge maintained a stay on consolidated antitrust lawsuits against the bank but would not guarantee that he'll keep the civil action frozen until the criminal proceeding wraps up.

  • November 06, 2019

    Feds Ordered To Hand Over Docs To Ex-Theranos CEO

    A California federal judge Tuesday ordered the U.S. Food and Drug Administration to produce key evidence in the criminal case alleging former Theranos CEO Elizabeth Holmes defrauded investors and patients with faulty blood-testing technology, finding that the U.S. Department of Justice indeed has "knowledge of and access to" the requested documents.

  • November 06, 2019

    Sports Group Exec Accused Of Leading Fake ICO

    The president of a global sports group was indicted in New York federal court Tuesday on charges of defrauding investors in the IGOBIT initial coin offering by lying about promised returns on investments in the digital assets and using funds for personal benefit.

  • November 06, 2019

    Adviser Targeted NY Haitians In $2M Ponzi Scheme, SEC Says

    A New York man bilked at least 100 participants in his investment club out of more than $2 million by promising them impossibly high returns in what was actually a Ponzi scheme, federal prosecutors and the U.S. Securities and Exchange Commission said Wednesday.

  • November 06, 2019

    After Cryptoqueen Fled, Bro Faced Death Threats, Jury Hears

    The brother of OneCoin founder Ruja Ignatova testified Wednesday that he got death threats after she disappeared in 2017, taking the stand as a Manhattan jury heard the feds' case against an ex-Locke Lord LLP partner charged with helping Ignatova, the so-called "Cryptoqueen," launder $400 million.

  • November 06, 2019

    Hazardous Waste Violations Land Mich. Man In Prison

    A Michigan federal judge sentenced a Michigan business owner to a year in prison for using drums and a pit to improperly store hazardous waste that the federal government had to spend nearly $1.5 million to clean up.

  • November 06, 2019

    Sports Betting Scheme Runners Want SEC Suit Tossed

    A pair of felons accused by the U.S. Securities and Exchange Commission of taking funds from a $30 million sports betting operation for their own use are asking a Nevada federal court to toss the complaint, saying their wagering operation has nothing to do with securities.

  • November 06, 2019

    Hausfeld Ponders Rival Forex Rigging Class Action In UK

    Hausfeld LLP is considering whether to file a competing collective action suit in London accusing several banks of rigging the global foreign exchange market, setting up a potential tussle with Scott & Scott, the rival firm helming the existing British claim.

  • November 05, 2019

    Alleged Ex-CIA Leaker Attacks Spying Laws' Constitutionality

    A former CIA employee accused of spilling secrets to WikiLeaks is leveling a constitutional challenge against the Espionage Act and the federal larceny statute, urging a New York federal court to block the federal government from prosecuting him under the allegedly sweeping and vague statutes.

  • November 05, 2019

    Ex-Bumble Bee CEO's Attorney Rips Into Tearful Key Witness

    Defense counsel representing Bumble Bee Foods' former CEO Christopher Lischewski hammered one of his former lieutenants before a California federal jury Tuesday, asking the tearful witness whether he took a guilty plea and then lied about Lischewski's involvement in tuna industry price-fixing to avoid jail.

  • November 05, 2019

    SEC Wants Quick Win In $30M Sports Betting Scheme Suit

    The U.S. Securities and Exchange Commission is asking a Nevada federal court to hand down a default judgment against a broker and a financial services company, saying they’ve failed to respond to a complaint alleging they were part of a $30 million sports betting scheme.

  • November 05, 2019

    Nuke Exec Helped Steer Russian Kickback Scheme, Jury Told

    The former president of a nuclear logistics company knew of and participated in a bribery scheme to secure contracts from a Russian state uranium supplier, his ex-business partner told a Maryland federal jury on Tuesday.

  • November 05, 2019

    Trump Casts Long Shadow Over Roger Stone's Jury Selection

    Several D.C. residents called for jury duty in the criminal trial of President Donald Trump's former adviser Roger Stone acknowledged Tuesday they have strong feelings about the president and would find it hard to be impartial if chosen, citing allegations of corruption inside the Trump White House.

  • November 05, 2019

    Turkish Bank's Bid To Dodge Arraignment Vexes Judge

    A Manhattan federal judge on Tuesday puzzled over a Turkish bank’s request to make a special appearance in court — rather than face a formal arraignment — to address charges of violating U.S. sanctions against Iran, as the government called the bank’s request “strange.”

  • November 05, 2019

    SEC Drops 4-Year-Old Claims Against Ex-Nomura Trader

    The U.S. Securities and Exchange Commission agreed to drop securities fraud claims Tuesday against a former Nomura trader accused of lying to investors about the pricing of residential mortgage-backed securities, according to a brief motion filed in New York federal court.

  • November 05, 2019

    5th Circ. Upholds Houston Doc’s 5-Year Fraud Sentence

    The Fifth Circuit denied a Houston-area doctor’s attempt to abandon his health care fraud conviction, five-year prison sentence and bill of more than $4 million in restitution, rejecting his claims that the jury received bad instructions from the trial judge.

  • November 05, 2019

    Boustani In On Loan Scam, 2nd Ex-Credit Suisse Banker Says

    A former Credit Suisse Group investment banker on Tuesday took the witness stand in the trial of Privinvest Group executive Jean Boustani over a complex purported $2 billion fraud and kickback scheme involving Mozambican maritime projects, telling jurors he agreed to take bribes from Boustani in exchange for smoothing over loan deals.

Expert Analysis

  • How Europe’s Energy Regulators Are Tackling Market Abuses

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    European regulators are increasingly cracking down on manipulation of the European wholesale energy market, with pending investigations that may result in fines, lawsuits and criminal proceedings. This enforcement wave comes as means to detect market manipulation have become more sophisticated, says Gabriele Haas of Dentons.

  • Opinion

    Litigation Finance Can And Should Protect Its Reputation

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    This month’s controversy surrounding alleged financial misrepresentations by Burford Capital underlines the need for litigation financiers to unite in educating the public about the value of litigation finance, lest opportunists use cases like this to disparage the industry as a whole, says Charles Agee at Westfleet Advisors.

  • CFTC's Silence Stings In Wheat Futures Manipulation Case

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    The U.S. Commodity Futures Trading Commission v. Kraft and Mondelez case was expected to clarify new standards for prosecuting market manipulation, but instead ended in a settlement that failed to provide any guidance or context, and even barred the CFTC from publicly commenting on the case, says Braden Perry at Kennyhertz Perry.

  • What 2 Recent OFAC Cases Say About Compliance Priorities

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    Findings of violation issued by the Office of Foreign Assets Control earlier this month to U.S. companies DNI Express Shipping and Southern Cross Aviation are illustrative of the continued focus, by OFAC and other agencies, on completeness and accuracy in both responsive and voluntary disclosures, say attorneys at Akin Gump.

  • Crisis Messaging To Protect Law Firm Brand And Bottom Line

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    When crises occur, such as data security incidents or gender bias suits, a well-prepared law firm has a thoroughly tested communications plan at the ready, which ensures the firm is the most proactive news source, prevents the crisis from escalating and notifies stakeholders about mitigation efforts, says Zach Olsen at Infinite Global.

  • The Escalating Sanctions Against Venezuela, Russia And Iran

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    The past few weeks saw a flurry of activity demonstrating that imposition and enforcement of economic sanctions against Venezuela, Russia and Iran — and by extension China — continues to be a key driver for the Trump administration in confronting foreign policy challenges, say attorneys at Kirkland.

  • Assessing The Cost, Legal Fallout Of Capital One Data Breach

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    Following Capital One's recent massive data breach, Jack Lu of IPMAP estimates the incremental direct cost incurred for management of the breach and for post-breach legal and regulatory processes, shedding light on the economic and legal uncertainties.

  • Perspectives

    What You Should Know About Courtroom Closures

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    At attorney Greg Craig’s trial in D.C. federal court this week, the courtroom was cleared so prospective jurors could answer sensitive questions. Even seasoned litigators were left wondering about the nature of this subtle, yet significant, issue involving Sixth Amendment public trial rights, says Luke Cass at Quarles & Brady.

  • Next US Move Against Iran Could Block Humanitarian Aid

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    If the U.S. government uses its anti-money laundering authority under the USA Patriot Act to further isolate Iran, the consequences are likely to extend far beyond the purported aim of ensuring the exclusion of Iranian banks from the international financial system, says Jeremy Paner at Ferrari & Associates.

  • Spacey Case Points To Cos.' Need To Preserve Devices, Data

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    Criminal and civil proceedings against actor Kevin Spacey related to sexual assault allegations were recently dropped after the alleged victim’s mobile phone vanished. The lesson for companies is that employees’ use of personal devices and messaging apps for business purposes comes with legal risks, say Matt Horvitz and Nordo Nissi of Goulston & Storrs.

  • Series

    Why I Became A Lawyer: A Seaweed Scientist's Odyssey

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    In the early 1980s, I was working on my Ph.D. in marine biology and ecology. As part of an international team of scientists studying oil spill impacts on marine ecosystems, I saw a niche opportunity to combine science and law, says Andrew Davis of Shipman & Goodwin.

  • DOJ Enforcement Insights From Poultry Price-Fixing Case

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    The U.S. Department of Justice recently stayed the discovery process in the broiler chicken antitrust litigation in order to pursue a criminal investigation over the next six months. The potential crackdown on U.S. poultry companies demonstrates changing DOJ antitrust enforcement priorities, says Bill Dillon of Taylor English.

  • Mistakes Vs. Falsehoods In Trade Controls Submissions

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    Federal regulators have dramatically increased the number of economic sanctions enforcement actions this year — with many investigations focusing on whether companies have made false statements in submissions. There are seven key steps that companies can take to keep trade submissions accurate and reduce criminal liability, say attorneys at Covington.

  • US V. Craig And The Criminalization Of Nondisclosure

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    A D.C. federal court's recent decision in United States v. Greg Craig highlights important points about the contours of a concealment charge under the false statements statute — under which silence can be criminal — and indicates that deliberate engagement with a governmental unit can itself impose a duty to disclose, say Eric Nitz and Emily Damrau of MoloLamken.

  • Durational Disconnect Between Cartel Pleas And Class Certs.

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    Three key takeaways emerge from comparing class settlement time periods with related plea agreement time periods for the companies assessed the 40 largest fines by the U.S. Department of Justice for Sherman Act violations dating from 2005 to the present, says Jon Tomlin of Ankura Consulting.

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