White Collar

  • November 05, 2019

    NJ Broker Accused Of Reaping $28M From 'In-And-Out' Trades

    A New Jersey broker-dealer’s state registration has been revoked and its assets frozen as it faces a lawsuit alleging the company and its agents unlawfully pocketed more than $28.7 million in commissions and sales charges through improper short-term trading activities, authorities said.

  • November 05, 2019

    SEC Disgorgement Could Survive A High Court Defeat

    The U.S. Supreme Court recently agreed to review the U.S. Securities and Exchange Commission's authority to seek disgorgement in federal court, but there's a chance that any negative outcome for the securities regulator will be temporary.

  • November 05, 2019

    Ex-Locke Lord Atty Tells Jury Crypto Job Was His Big Chance

    Former Locke Lord LLP partner Mark S. Scott made the "tough decision" to leave BigLaw because he thought cryptocurrency concern OneCoin was legal, and the next big thing, and he wanted to leave "bread and butter" client billing behind, his lawyer told a Manhattan jury Tuesday at Scott's trial on charges of helping OneCoin launder $400 million.

  • November 05, 2019

    3rd Circ. Won't Rethink Convictions In Payday Lending Suit

    The Third Circuit on Tuesday declined to revisit a ruling upholding the convictions of a Delaware attorney and a Philadelphia-area businessman on racketeering charges in connection with a payday lending scheme.

  • November 05, 2019

    Father And Son Stole $1.3M In Investment Scheme, Jury Hears

    A father and son pocketed $1.3 million by duping their family members and two church congregations to invest in what was really a Ponzi scheme involving apartment buildings in distress, an Illinois federal jury heard Tuesday.

  • November 05, 2019

    Ex-Tanker Engineer Dodges Prison For Oil Dump Cover-Up

    A New Jersey federal judge on Tuesday allowed a former engineer with an Italian shipping company to stay out of prison over his role in the attempted cover-up of pollution from an oil tanker, but she said the worker’s failure to object to such misconduct illustrated the need to "take a stand."

  • November 05, 2019

    Baker Donelson Director Seeks Ch. 7 Cover From Ponzi Suit

    A member of the board of directors at Baker Donelson Bearman Caldwell & Berkowitz has filed for Chapter 7 bankruptcy in Mississippi, asking to hit the pause button on allegations that he had been involved in propping up a Ponzi scheme.

  • November 05, 2019

    Class Action Comes To UK With Major Forex Rigging Suit

    A consumer antitrust suit brought by investors seeking at least £1 billion ($1.3 billion) from five banking giants, including JPMorgan and Barclays, over allegations of foreign exchange rigging is set to be heard at a London tribunal on Wednesday in a test case for U.S.-style class actions brought in England.

  • November 04, 2019

    Ex-Bumble Bee CEO Ordered Price-Fix, Tearful Witness Says

    The criminal price-fixing trial of Bumble Bee's onetime CEO Christopher Lischewski kicked off in a San Francisco federal courthouse Monday with tearful testimony from a former top sales executive, who told jurors that Lischewski gave him a "direct order" to conspire with competitors to fix tuna prices.

  • November 04, 2019

    Ex-Theranos CEO Claims FDA Destroyed Key Evidence

    Former Theranos CEO Elizabeth Holmes told a California federal judge Monday that the U.S. Food and Drug Administration destroyed key evidence in the criminal case alleging she defrauded investors and patients with faulty blood-testing technology, including emails of the former director of the FDA's diagnostics regulatory division.

  • November 04, 2019

    Blame Game Won't Save Texas Condo Developer From Prison

    A Texas entrepreneur convicted of using his high-security luxury condominium project to launder suspected Colombian drug money was sentenced to 15 months in federal prison Monday by a federal judge who refused to believe he caved to violent threats from his New Jersey accomplice.

  • November 04, 2019

    Gorsuch Conflicted About 'Common Sense' Traffic Stops

    Justice Neil Gorsuch, arguably the Supreme Court's new swing vote in Fourth Amendment cases, appeared torn Monday over whether police officers can pull someone over for no other reason than the registered owner of the car has a suspended license, questioning the basis for a Kansas deputy's "common sense" assumption.

  • November 04, 2019

    Longfin Investors Push To Update Network 1 Allegations

    Investors in the failed cryptocurrency company Longfin Corp. have told a New York federal judge that they should be able to file an amended complaint accusing broker-dealer Network 1 Financial Securities Inc. of knowing about Longfin's alleged fraud.

  • November 04, 2019

    NY Judge's Atty 'Implicated' In Obstruction Case, Feds Say

    Prosecutors say an attorney representing a New York state judge may have unwittingly helped her obstruct an investigation into the Municipal Credit Union, raising questions about whether he can defend her through a trial set for May.

  • November 04, 2019

    College's Loans Eclipsed By $4.1M Fraud, KPMG Jury Told

    A forensic accountant hired by Merrimack College testified Monday that a former employee had generated more than $4.1 million in fraudulent loans, outnumbering the valid loans issued over several years, as the Massachusetts trial on KPMG's alleged negligence in not spotting the scheme entered its second week.

  • November 04, 2019

    Scammers Milked $1.8M From NY Dairy Co., Suit Says

    Scammers ripped off Ultra Dairy for $1.8 million by posing as the New York dairy business' construction contractor, Ultra Dairy told a New York federal court.

  • November 04, 2019

    Dual Charges Are A Catch-22 For Ex-Mossack Fonseca Atty

    A former lawyer at defunct Panamanian firm Mossack Fonseca told a Manhattan federal court on Monday that he shouldn't be considered a fugitive for not coming to the U.S. to face a tax conspiracy indictment since a court in Panama has ordered him to stay and answer charges there.

  • November 04, 2019

    Roger Stone Trial 'In Excellent Shape' To Begin, Judge Says

    The D.C. federal judge overseeing the criminal trial of President Donald Trump’s former adviser Roger Stone, who's charged with obstructing the Mueller probe, said Monday that the case is “in excellent shape” to move forward for jury selection.

  • November 04, 2019

    LeClairRyan, Eckert Seek $100K Fees For $13.7M Ponzi Deal

    Eckert Seamans and now-shuttered LeClairRyan are seeking $100,258 for their work representing the receiver following the U.S. Securities and Exchange Commission’s $13.7 million settlement with Kiddar Capital LLC over a real estate investment Ponzi scheme.

  • November 04, 2019

    Under Armour Confirms DOJ, SEC Probes As Earnings Slip

    Sportswear giant Under Armour formally acknowledged a pair of federal investigations into its accounting practices in a regulatory filing Monday as it sought to allay investor concerns over trimmed revenue projections that sent the company’s share price tumbling.

  • November 04, 2019

    4 Charged In Scheme To Smuggle Military Boats To China

    A U.S. Navy officer, his wife and two Chinese nationals have been indicted in Florida federal court on charges related to an alleged conspiracy to smuggle military-style inflatable boats and motors to China, the U.S. Department of Justice announced.

  • November 04, 2019

    CBS Says Ex-MoFo Atty Can't Sue Over Sex Assault Interviews

    CBS has told a federal court that it should throw out a $400 million defamation suit by Virginia Lt. Gov. Justin Fairfax, saying that the network’s decision to air interviews with two women who accused the former Morrison & Foerster LLP partner of sexual assault did not defame him and is protected by the First Amendment.

  • November 04, 2019

    Receiver Says Texas Firm Involved In $150M Securities Fraud

    The receiver appointed to unwind self-described “frack master” Christopher Faulkner’s $80 million securities fraud scheme has sued his longtime lawyers at Scheef & Stone LLP, alleging they saw “red flags” as early as 2010 but refused to “lift the veil” on the scam until it was too late.

  • November 04, 2019

    High Court Won't Hear Challenge To SEC's International Reach

    The U.S. Supreme Court declined on Monday to hear a case challenging a ruling that the Dodd-Frank Act allows the federal government and regulators to pursue international securities fraud claims — a stance the Tenth Circuit affirmed earlier this year.

  • November 04, 2019

    Trump Must Hand Over Tax Returns, 2nd Circ. Says

    President Donald Trump and his accounting firm must comply with a subpoena from the Manhattan district attorney and hand over tax returns, the Second Circuit ruled Monday in a decision that will likely be appealed to the U.S. Supreme Court.

Expert Analysis

  • 5th Amendment Strategy For Parallel Civil, Criminal Litigation

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    Whenever there is any prospect of criminal liability in civil litigation — as in the recent cases against Harvey Weinstein and former Theranos executives — it is important for both sides to understand the consequences of a party or key witness choosing to assert Fifth Amendment privilege, says Joshua Robbins at Greenberg Gross.

  • Opinion

    Clients Benefit From Law Firm Expense Growth

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    Although there continue to be corporate clients who are seduced by the idea that cheapest is always best when it comes to outside counsel, there are many negative implications on service delivery that result from myopically focusing only on cost reduction at the expense of quality and innovation, says Keith Maziarek at Katten Muchin.

  • Federal Courts Shed Light On Extraterritorial Reach Of DTSA

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    Recently, federal courts in California and Texas applied Section 1837(2) of the Defend Trade Secrets Act to civil claims for foreign misappropriation, demonstrating that foreign actors should now be cognizant that courts are willing to apply the Economic Espionage Act’s extraterritorial reach to civil DTSA claims, say attorneys at Paul Hastings.

  • Opinion

    Changing Ethics Rules Is Key To Law Firm Innovation

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    As demonstrated by the California bar proposal to allow nonlawyers to invest in law firms, we can change the legal ethics rules in a way that protects clients while permitting firms to innovate and serve clients better, say Todd Richheimer of ​​​​​​​Lawfty and Peter Joy of Washington University Law School.

  • Decrypting The New IRS Cryptocurrency Compliance Letters

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    Last month the IRS announced it will send over 10,000 taxpayers "educational letters" concerning their cryptocurrency reporting compliance, providing a high-level overview of virtual currency activity that may trigger reporting obligations, say Victor Jaramillo and Zhanna Ziering at Caplin & Drysdale.

  • Witness For The Prosecution: A Smart Speaker?

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    Several recent criminal cases involving evidence potentially recorded on smart devices, like the Amazon Echo or Google Home, may signal a coming conflict between government and law enforcement agencies seeking access to information essential to solving crimes and technology companies seeking to preserve the privacy of customer records, says David Moser of Isaac Wiles.

  • 9th Circ. Opinion Validates Broader CFTC Authority

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    The Ninth Circuit's decision last month in U.S. Commodity Futures Trading Commission v. Monex is consistent with the Commodity Exchange Act amendments' intention to expand the regulator's reach beyond futures contracts and into leveraged metals transactions, despite the court's sometimes conflicting reasoning, says Thomas Gorman at Dorsey & Whitney.

  • Series

    Judging A Book: Castillo Reviews 'Raising The Bar'

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    A timely new book, “Raising the Bar: Diversifying Big Law," is one of the first honest assessments of the challenging battleground for people of color at large law firms, and I hope that firm management committee members read it, says U.S. District Judge Rubén Castillo of the Northern District of Illinois.

  • Cisco FCA Deal Shows Viability Of Cybersecurity Qui Tams

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    The July 31 $8.6 million False Claims Act settlement between Cisco Systems and the government — for Cisco's failure to adequately remedy a known cybersecurity vulnerability — will likely be the first of many such lawsuits given the chronic problems that companies have with cybersecurity and the rewards available to whistleblowers under the FCA, says Alexis Ronickher of Katz Marshall.

  • A Road Map For A Cryptocurrency Crackdown: Part 3

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    By supporting a U.S. Securities and Exchange Commission-led sweep of the cryptocurrency arena, President Donald Trump could prevent crypto crime, fortify the capital markets, and reinforce the SEC's mission of investor protection, says cybersecurity consultant John Reed Stark.

  • Perspectives

    2nd Circ.'s Approach To Bail Is Backward

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    The Second Circuit's decision in United States v. Boustani correctly identifies the dangers of a "two-tiered" bail system, but the proper solution is to make bail more accessible to everyone, not to fewer people, says Alexander Klein of Barket Epstein.

  • A Road Map For A Cryptocurrency Crackdown: Part 2

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    As cryptocurrency usage proliferates, proper regulation should include enforcing money transmitter registration for crypto financial intermediaries, prosecuting crypto intermediaries that violate federal trade requirements, and compelling them to identify those who fail to pay crypto-related capital gains taxes, says cybersecurity consultant John Reed Stark.

  • What The Dramatic Rise In FCPA Enforcement Means For M&A

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    The U.S. Department of Justice's recent expansion of its Foreign Corrupt Practices Act Corporate Enforcement Policy provides new incentives for companies to self-report misconduct that is discovered after a merger or acquisition, while also potentially increasing exposure for companies that sell assets tainted by corruption, say Fry Wernick and Francis Yang of Vinson & Elkins.

  • A Road Map For A Cryptocurrency Crackdown: Part 1

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    Following President Donald Trump's anti-cryptocurrency tweets last month, cybersecurity consultant John Reed Stark drills down into some of the best enforcement strategies for a cryptocurrency sweep, including the utilization of gatekeeper theory to focus prosecutorial and regulatory efforts on th​ose who control access to cryptocurrency markets.​

  • Debunking 3 Myths About Contract Attorneys

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    Although contract attorneys represent a quality source of legal work, inaccurate assumptions cause many legal departments and law firms to hesitate when considering them, say Matthew Weaver and Shannon Murphy of Major Lindsey.

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