White Collar

  • June 16, 2017

    Teva's Russian Subsidiary Pleads Guilty To FCPA Charge

    Generic-drug giant Teva Pharmaceutical's Russian subsidiary pled guilty Friday in Florida federal court to conspiring to violate the Foreign Corrupt Practices Act, and the judge indicated she will accept a sentence that involves a monitoring program and $519 million in payments imposed on the parent company through related cases.

  • June 16, 2017

    Qualcomm Stockholder China Bribery Suit Dismissed In Del.

    Delaware’s Chancery Court dismissed on Friday a stockholder suit seeking damages on behalf of telecommunications giant Qualcomm Inc. from directors serving during a decade when the company was accused of violating the Foreign Corrupt Practices Act.

  • June 16, 2017

    Ex-Pa. AG Slams Prosecutor's Powers In Leak Probe

    An ex-Pennsylvania attorney general facing prison time for leaking confidential material and lying about it to a grand jury sought to undercut her conviction Friday, telling an appeals court that the special prosecutors in her case had been vested with improperly broad power.

  • June 16, 2017

    Takata Stock Trading Halted Amid Reports Of Bankruptcy

    The Tokyo Stock Exchange temporarily halted trading of shares of Takata Corp. on Friday, after local media reports that the embattled Japanese air bag manufacturer was getting ready to file for bankruptcy reorganization amid growing legal woes stemming from Takata air bag recalls.

  • June 16, 2017

    Shkreli Wants Millions In Bail Back For Bills

    Martin Shkreli, the devil-may-care former pharma CEO whose securities-fraud trial is set to start in less than two weeks, asked a New York federal judge on Thursday to release over half of his bail money — $3 million — for pressing legal and tax bills.

  • June 16, 2017

    Ex-Patent Examiner Gets 7 Years For Stabbing DJ At USPTO

    A former patent examiner who stabbed a DJ leaving an after-hours event at the U.S. Patent and Trademark Office location in Alexandria, Virginia, will serve seven years in prison after previously pleading no contest to a malicious wounding charge.

  • June 16, 2017

    Conspirator In Fake 5-Hour Energy Scheme Gets 6 Months

    A conspirator who pled guilty in California federal court to being part of a scheme to peddle fake 5-Hour Energy drinks was sentenced Thursday to six months in prison and ordered to pay $555,801 in restitution to Living Essentials LLC, the drink’s maker.

  • June 16, 2017

    Ex-Commerce Employee Found Guilty On Bribery Charges

    A Virginia federal jury has convicted a former information technology worker at the U.S. Department of Commerce of receiving bribes in exchange for awarding lucrative contracts and funneling the payments through a restaurant business he owned, federal prosecutors announced on Thursday.

  • June 16, 2017

    Booz Allen's Gov't Contract Billing Under DOJ Inquiry

    Government contractor Booz Allen Hamilton said it is under investigation by the U.S. Department of Justice for possible irregularities in its billing for U.S. government contracts.

  • June 16, 2017

    Reinsurer Exec Says $50M RICO Suit Must Be Arbitrated

    Three reinsurance executives Thursday asked a New York federal court to send a $50 million Racketeer Influenced and Corrupt Organizations Act case against them to arbitration, saying the arbitration clause in the reinsurance agreement applies to them as well as their company.

  • June 16, 2017

    'Why Are You Here?' 2nd Circ. Asks Convicted Former Lawyer

    The Second Circuit expressed deep doubt Friday with a disbarred lawyer who is seeking a writ dissolving his nearly 12-year-old fraud conviction, with two judges bluntly suggesting that his pro bono counsel had no business before them.

  • June 16, 2017

    Ex-Philly Hotel Engineer Gets 1 Year For UPenn Fraud

    The former chief engineer at the Sheraton University Hotel in Philadelphia, who pled guilty to helping defraud the University of Pennsylvania of about $2.3 million through false billing, was sentenced to one year and one day in prison on Thursday.

  • June 16, 2017

    Accused Fraudster Claims Ex-Employer's Exec Lied In Depo

    A former Oak Investment Partners executive who has been living in India while he fights off a U.S. Securities and Exchange Commission fraud suit asked a Connecticut federal court Friday to sanction a top Oak executive for allegedly telling repeated lies about him during a marathon deposition.

  • June 16, 2017

    NJ Hedge Fund Owner To Face All Counts In 1 Trial

    A New Jersey federal judge has denied a bid from a purported hedge fund owner to sever one count of a four-count indictment alleging he stole $4 million from investors, but the jurist ordered a hearing on his motion to dismiss the indictment over claims the government destroyed evidence.

  • June 16, 2017

    Jurors With Strange Verdict In Meningitis Case To Be ID'ed

    A federal judge in Massachusetts said Friday he will release the names of jurors who convicted a pharmacist of fraud and acquitted him of murder — and indicated, with an unusual series of numbers, how they were voting.

  • June 16, 2017

    Hogan Lovells Expands To Boston, Combines With Collora

    International law firm Hogan Lovells is expanding to Boston by combining with the small but prominent litigation boutique Collora LLP.

  • June 16, 2017

    Ex-InterMune Exec, Friend Must Pay $746K For Insider Trading

    A California federal court on Thursday ordered a former InterMune Inc. director and his friend to collectively pay about $745,600 in disgorgement and interest over their insider trading scheme that capitalized on nonpublic information about the pending approval of InterMune’s lung disease drug.

  • June 15, 2017

    9th Circ. Backs Conviction For Tax Fraudster

    The Ninth Circuit on Wednesday affirmed the fraud conviction of a former Nevada businessman for his role in a scheme to sell a product to small businesses that promised them nonexistent tax credits, finding there was enough evidence to support the conviction.

  • June 15, 2017

    No Rules On Key REIT Metric, Witness Says In Ex-CFO Trial

    A cooperating witness in the prosecution of ex-American Realty Capital Properties Chief Financial Officer Brian S. Block conceded in a New York federal court Thursday that there were no laws, rules or regulations about the reporting of an earnings metric that Block is charged with falsifying in SEC filings.

  • June 15, 2017

    Nixed Enhancements Cut 20 Mos. From Fraudster's Sentence

    An oil and mining investment fraudster who was granted a resentencing by the Second Circuit because of incorrectly applied enhancements had 20 months shaved off his 10-year sentence by a New York federal judge on Thursday.

Expert Analysis

  • Weekly Column

    'Talking Bull': Episode 21, How To Dodge A Bullet

    Roy Futterman

    In this column, real-life New York City jury consultant and psychologist Roy Futterman parses fact from fiction in "Bull," the new TV series airing on CBS about a fictional NYC jury consultant/psychologist. Spoiler alert ...

  • Questioning The Controlled Substances Act After Enmon

    Jack Sharman

    Following the Eleventh Circuit's recent decision in United States v. Enmon, it remains unclear what conduct is prohibited under the Controlled Substances Act and what intent a physician must possess in order to support a conviction, say attorneys with Lightfoot Franklin & White LLP.

  • Defending Against SOX Whistleblower Retaliation Claims

    Joseph Costello

    Employers defending against retaliation claims brought under the Sarbanes-Oxley Act often build their defense around the argument that there was a legitimate, nonretaliatory basis for any adverse employment action taken against the whistleblower. However, an alternative approach that is sometimes overlooked is to take on the issue of the whistleblower’s reasonable belief, say Joseph Costello and Joseph Nuccio of Morgan Lewis & Bockius LLP.

  • Bail Reform Will Imperil California's Justice System

    Quentin Kopp

    Each year more than 300,000 defendants are released on bail in California. But new legislation seeks to take this constitutional right away from defendants and replace it with an expensive and onerous pretrial release system. Shifting from privately funded bail to taxpayer-funded pretrial release programs will undoubtedly strain California’s already underfunded court system, says retired San Mateo Superior Court Judge Quentin Kopp.

  • Why US Law Firms Need Anti-Money Laundering Policies

    Kristine Safos

    For U.S. law firms, anti-money laundering compliance are a business necessity. As large financial institutions and other clients adopt their own AML policies, they expect law firms they work with to do the same. Kristine Safos of HBR Consulting offers guidance on AML and client due diligence best practices.

  • Protecting Privilege, Work-Product During Investigations

    Eric Gorman

    Companies conducting investigations in cooperation with regulators must carefully balance the benefits of sharing certain types of information with the government against the risks — including the risk that privileged communications and attorney work product could fall into the hands of plaintiffs suing the company, says Eric Gorman of Skadden Arps Slate Meagher & Flom LLP.

  • Prosecuting The Person On The Other Side Of FCPA Violation

    Randall Eliason

    The Foreign Corrupt Practices Act applies only to the U.S. persons and companies who pay the bribes, not to the foreign officials who receive them. But the U.S. Supreme Court's Ocasio decision last year may revive a long-dormant legal theory — charging foreign officials with conspiracy to violate the FCPA, says Randall Eliason, a former federal prosecutor.

  • Clarifying UK Penalty Model For Financial Sanctions Breach

    Elizabeth Robertson

    While there are clear similarities between the recent guidance from HM Treasury’s Office of Financial Sanctions Implementation and the economic sanctions enforcement guidelines in the United States, companies that engage in activities subject to U.S. and U.K. financial sanctions should also understand the important differences between the two penalty regimes, say partners of Skadden Arps Slate Meagher & Flom LLP.

  • 13 FCPA Enforcement Actions Resolved In 2017 So Far

    Marc Bohn

    The first three weeks of 2017 served as a capstone to the flurry of Foreign Corrupt Practices Act enforcement activity that marked the end of 2016, while the remainder of the quarter saw little in the way of additional enforcement actions by the U.S. authorities. However, there are no significant indications that FCPA enforcement efforts will shift dramatically under the Trump administration, say attorneys with Miller & Chevalier Chtd.

  • A Reminder That Market Regulators Are Still Watching

    Clifford Histed

    It is clear that the Trump administration has no intention of relenting when it comes to pursuing complex market manipulation cases, and the U.S. Securities and Exchange Commission’s Lek Securities case is the first tangible example of that, say Clifford Histed and Gilbert Perales of K&L Gates LLP.