White Collar

  • January 19, 2017

    Longtime Texas Lawmaker Indicted On 15 Corruption Charges

    Texas state Rep. Dawnna Dukes, D-Austin, was indicted this week by a Travis County grand jury on charges she misused legislative resources, abused her official capacity and tampered with government records, District Attorney Margaret Moore announced Wednesday.

  • January 19, 2017

    Accused Fraudster's Suicide Doesn't Void Ponzi Deal: 6th Circ.

    An escrow agent who was accused of defrauding the mastermind behind a $45 million Ponzi scheme must pay the entirety of a previously agreed-to settlement despite his co-defendant committing suicide, the Sixth Circuit ruled on Wednesday.

  • January 19, 2017

    4th Circ. Backs Ex-Massey CEO's Conspiracy Conviction

    The Fourth Circuit on Thursday upheld former Massey Energy Co. CEO Don Blankenship's conviction for conspiring to violate mine safety laws before a 2010 coal mine explosion that claimed 29 lives, finding no mistakes by the lower court to warrant a reversal.

  • January 19, 2017

    Feds Say Sports Agent Trying To Distract In Smuggling Trial

    The U.S. government asked a Florida federal court Wednesday to bar a sports agent who allegedly participated in a $16 million scheme to smuggle Cuban baseball players into the U.S. from distracting the jury by impeaching the law enforcement investigation against him.

  • January 18, 2017

    Morissette's Manager Had Hand In Her Pocket, Stole $4.8M

    Alanis Morissette's former business manager has admitted to wire fraud, tax fraud and embezzling from his clients to the tune of $6.5 million, including $4.8 million from the singer-songwriter, the U.S. Attorney's Office for the Central District of California said Wednesday.

  • January 18, 2017

    Ex-JPMorgan Analyst Tipped Pals To Tech Deals, Jury Told

    Former J.P. Morgan Securities LLC analyst Ashish Aggarwal tipped two friends to a Salesforce.com acquisition and another pending deal in a scheme that “cheated the market and lined their own pockets” with $600,000, a prosecutor told jurors Wednesday during opening statements in California federal court.

  • January 18, 2017

    SAC Trader, Feds Feud At 2nd Circ. Over Salman Impact

    Jailed ex-SAC Capital Advisors manager Mathew Martoma sparred with federal prosecutors Tuesday over the U.S. Supreme Court’s recent decision upholding the Salman insider trading case conviction, with the hedge funder saying a Second Circuit decision still carries weight.

  • January 18, 2017

    Fraud Conviction Stands, But Atty Wins $13M Penalty Review

    The Eleventh Circuit on Wednesday upheld an attorney's conviction for conspiring with former NFL player Willie Gault to inflate a heart-monitor company's stock but vacated $13.2 million in restitution in his sentence, finding the calculations were based on insufficient evidence and failed to consider intervening events.

  • January 18, 2017

    Bio-Rad’s Ex-GC Testifies CEO Resisted FCPA Investigation

    The former general counsel for Bio-Rad Laboratories Inc. took the stand in his retaliation suit accusing the life sciences company of firing him for reporting possible Foreign Corrupt Practices Act violations related to payments in China, testifying that Bio-Rad’s CEO resisted his attempts to investigate possible wrongdoing.

  • January 18, 2017

    Health Care Co. Owner Fights Evidence In $45M Fraud Case

    One of the three relatives who owned a trio of home health care companies accused of running a $45 million Medicare fraud scheme fought back against some government evidence Tuesday, saying certain witness statements are untrustworthy and that some evidence may confuse jurors.

  • January 18, 2017

    Widow Tells Jury Of Husband’s Death From Tainted Steroids

    The widow of a man who was injected with tainted steroids described her husband’s death to a federal jury in Boston on Wednesday, for the first time giving voice to the human agony behind a pharmacist’s murder trial and the most devastating pharmaceutical disaster in American history.

  • January 18, 2017

    Feds Fight Defendants' Bid To Toss GWB Scandal Convictions

    Prosecutors on Tuesday urged a New Jersey federal court to uphold the guilty verdict against two former public officials in the George Washington Bridge lane-closing trial, rejecting their bid to toss the convictions over a contentious jury instruction and allegations that some jurors deliberated when they were not supposed to.

  • January 18, 2017

    Indicted CEO Can't Escape Securities Fraud Charges

    A New York federal judge on Wednesday refused to toss criminal securities fraud and money laundering charges against private equity CEO Benjamin Wey, and said the court would rule on his effort to suppress evidence seized during government searches after a hearing next week.

  • January 18, 2017

    Jury Blocks Stanford Receiver's $88M Clawback Claim

    A Texas federal jury on Wednesday found billionaire Gary Magness acted in good faith when taking out $88.2 million in loans from a bank affiliated with R. Allen Stanford’s $7 billion Ponzi scheme, blocking a clawback claim by the receiver for the Stanford fraud.

  • January 18, 2017

    Med Device Co. Pays $14M Over Accounting, FCPA Violations

    Texas-based medical device company Orthofix International will pay $14 million in disgorgement and penalties and admit wrongdoing for improperly booking revenue and paying off Brazilian doctors to boost sales, the U.S. Securities and Exchange Commission said Wednesday.

  • January 18, 2017

    Goldman Fee Fight Could Shift To NJ As Del. Appeal Boils

    A multicourt battle over an ex-Goldman Sachs programmer’s rights to corporate legal defense benefits could soon hop back to New Jersey even as the Delaware Supreme Court wrestles with an appeal over the Chancery Court’s rejection of the claim.

  • January 18, 2017

    Del. Justices Kick Wal-Mart Investor Suit To Chancery

    The full Delaware Supreme Court on Wednesday criticized the lack of coordination between investors’ attorneys from two separate suits targeting an alleged Wal-Mart Mexico bribery scandal, ordering a lower court to contemplate whether one shareholder group’s rights were violated by the other’s case.

  • January 18, 2017

    Finance Pros Tell Fund Fraud Jury Visium Quotes Were Off

    A series of asset management professionals told Manhattan jurors Wednesday that price quotes procured by Stefan Lumiere from allegedly complicit brokers to overvalue a distressed-credit fund appeared to be inflated in value, as prosecutors closed their fraud case against the former Visium Asset Management LP portfolio manager. 

  • January 18, 2017

    State Attys Say Sessions' Record Makes Him Unfit As AG

    Attorneys general in New York, Massachusetts and four other states urged U.S. senators on Wednesday to reject Jeff Sessions as the new U.S. Department of Justice head, pointing to a judge's finding of “serious and wholesale prosecutorial misconduct” when he was Alabama's state attorney.

  • January 18, 2017

    Ex-NY Sen. Leader Gets 5 Years For Obstruction, Lying To FBI

    The former minority leader of the New York state Senate was sentenced Wednesday to five years in prison on his conviction for obstruction of justice and lying to federal agents in connection with a corruption case over his alleged embezzlement of real estate funds.

Expert Analysis

  • Criminal Trade Secret Prosecutions Under President Trump

    Barak Cohen

    Under the Obama administration, there has been an increase by the U.S. Department of Justice in the number of criminal trade secret prosecutions. Statements by President-elect Donald Trump and his U.S. attorney general nominee suggest that the Trump administration will be equally, if not more, likely to encourage prosecution of suspected trade secret theft, say Barak Cohen and Chelsea Curfman of Perkins Coie LLP.

  • Another Year Of Enforcement At FERC And CFTC

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    The Federal Energy Regulatory Commission and the U.S. Commodity Futures Trading Commission recently released their annual reports on enforcement activities for fiscal year 2016. In addition, FERC enforcement staff released white papers on market manipulation and effective compliance programs. These materials provide useful insight into agency staff’s expectations regarding the behavior of market participants, say attorneys from Bracewell LLP.

  • United Case Highlights Achilles’ Heel Of Fraud Prevention

    Joseph Moreno

    United Airlines recently paid a $2.4 million penalty to the U.S. Securities and Exchange Commission for failing to follow its own anti-corruption policies, underscoring the fact that even a perfectly designed internal control environment will not operate effectively when management can circumvent or ignore controls, say attorneys with Cadwalader Wickersham & Taft LLP.

  • Deciphering RJR Nabisco's 'Domestic Injury' Requirement

    Robert P. Reznick

    Since the U.S. Supreme Court's decision in RJR Nabisco v. European Union last year, courts have grappled with the ruling's articulation of the “domestic injury” requirement for private claims under the Racketeer Influenced and Corrupt Organizations Act, and their analyses and conclusions as to where an “injury” has occurred are all over the map, say attorneys at Orrick Herrington & Sutcliffe LLP.

  • Time To Reopen Some DOJ Antitrust Field Offices

    Robert E. Connolly

    President-elect Donald Trump has pledged to spend up to $1 trillion upgrading America’s infrastructure. To help ensure that money is spent free from corruption, the incoming administration should reopen at least two of the four Antitrust Division field offices that were shuttered in January 2013, says Robert Connolly of GeyerGorey LLP.

  • Be Prepared For Law Firm Data Breach Litigation

    Scott Vernick

    The April 2016 leak of "Panama Papers" documents from law firm Mossack Fonseca removed any doubt that the threat of cyberattacks against the legal industry is more than hypothetical. While the case law on law firm data breach litigation has largely yet to be written, there are certain fundamental tenets worth reviewing, say Scott Vernick and Peter Buckley of Fox Rothschild LLP.

  • End Of The Road For A Challenge To Rule 17(c)

    Daniel Wenner

    Despite a powerful pitch, the U.S. Supreme Court recently denied the petition for certiorari in U.S. v. Rand. The Fourth Circuit's decision highlights that criminal defendants might not be able to obtain third-party discovery, which places them in a far worse position than their civil counterparts, says Daniel Wenner of Day Pitney LLP.

  • 7 Legal Industry Predictions For 2017

    Haley Altman

    Since 2008, the legal relationship dynamic has consistently evolved, leading clients to demand more "value" for services received. In 2017, investment in and adoption of new technology and prioritizing cybersecurity will lead to an increase in billable hours and shifts in realization rates, says Haley Altman of Doxly.

  • 6 Key Commercial Litigation Finance Trends For 2017

    Ralph J. Sutton

    With commercial litigation funding gaining acceptance throughout the U.S., law firms and corporations are investigating how they can benefit from the capital that funders provide, and which criteria they should use in selecting a funder. Ralph Sutton, chief investment officer of Bentham IMF, discusses several major trends to watch in 2017.

  • 5 Ways To Fight Costlier Legal Malpractice Claims In 2017

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    There are a number of concrete, practical steps that law firms can take to address the high cost of defending legal malpractice claims, both before and after a claim is made, says Richard Simpson, a partner with Wiley Rein LLP who serves on the ABA Standing Committee on Lawyers’ Professional Liability.