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White Collar
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May 29, 2025
Investment Firm Says It Was Duped Into $349M Dental Deal
Investment firm TSG8 SDB Group Holdings LP has filed suit in Delaware Superior Court claiming a Texas-based holding company tricked it into pouring $349 million into a specialty dental practices platform based on fake financials and phony growth claims, and hid the business's problems just long enough to cash out.
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May 29, 2025
House Introduces CFTC-Focused Crypto Market Structure Bill
A bipartisan group of House lawmakers introduced a long-awaited proposal to regulate crypto markets on Thursday that would establish a registration path at the U.S. Commodity Futures Trading Commission and codify the boundaries of jurisdiction between commodities and securities regulators.
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May 29, 2025
Restaurant Liable After Fraudster Steals $475K Settlement
A California appeals court has found in a case of first impression that a restaurant is responsible for $475,000 in settlement funds that its attorneys sent to a fraudster impersonating the other party in a personal injury suit, saying it missed a number of red flags in the impostor's correspondence.
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May 29, 2025
DOJ Officially Files To Drop Boeing 737 Max Conspiracy Case
The U.S. Department of Justice on Thursday formally moved to drop its criminal conspiracy case against Boeing over the deadly 737 Max 8 crashes and asked a Texas federal judge to vacate the June 23 trial date, saying a $1.1 billion nonprosecution agreement is a meaningful resolution that holds the company accountable.
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May 29, 2025
SD Tribe Issues State Of Emergency Over Police Resources
The Rosebud Sioux Tribe in South Dakota has declared a public safety state of emergency on its reservation due to methamphetamine use and illicit drug trafficking, urging the federal government to give the tribe more law enforcement resources.
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May 29, 2025
SEC Drops Binance Suit In Latest Crypto Reversal
The U.S. Securities and Exchange Commission on Thursday voluntarily ended a lawsuit accusing crypto platform Binance of mishandling customer funds and deceiving regulators, citing the agency's ongoing efforts to change the way it regulates the digital asset industry.
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May 29, 2025
Trump Pardons Twice-Convicted Former Conn. Governor
President Donald Trump has pardoned former Connecticut Gov. John G. Rowland, a one-time chairman of the Republican Governors Association, who resigned from office in 2004 and served two stints in prison for corruption and lying to federal election officials.
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May 29, 2025
Judge Tells FDIC 'Whistleblower' To Stop Texting Gov't Attys
A D.C. federal judge threatened a self-proclaimed Federal Deposit Insurance Corp. "whistleblower" with criminal referral if he reaches out to the agency's lawyers again, calling his claim that one attorney was trying to frame him with sending "harassing" messages sent to the attorney's wife "patently ridiculous."
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May 29, 2025
'Keyboard Terrorism' Against Officials Gets Colo. Man 3 Years
A Colorado federal judge Thursday sentenced a man to just over three years in prison for social media posts threatening to kill a state judge, the state's top election official and federal law enforcement, citing the seriousness of his "keyboard terrorism" in denying a plea for leniency.
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May 29, 2025
Investors Allege Manhattan Firm Aided $43M Ponzi Scheme
A pair of investors filed suit against New York-based Moritt Hock & Hamroff LLP and two of its former attorneys on Thursday, alleging that the midsize firm and the attorneys, who have since departed for Saul Ewing LLP, lied on behalf of a client who has since been charged with running a $43 million Ponzi scheme.
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May 29, 2025
Ga. Justices Nix Reprimand For Solicitor General Over Theft
The Georgia Supreme Court has rejected former Hall County Solicitor General Stephanie Woodard's bid to receive a public reprimand after she pled guilty to stealing taxpayer dollars, finding that the suggested discipline is not enough.
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May 29, 2025
Ex-US Attorney For DC Joins Winston & Strawn
The former U.S. attorney for Washington, D.C., has moved into private practice at Winston & Strawn LLP after stepping down from his post in January as former President Joe Biden left office.
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May 29, 2025
'Dr. Cash' Gets 3 Years For Bilking Elderly Fund Investors
A recidivist fraudster nicknamed "Dr. Cash" was sentenced in Manhattan federal court Thursday to three years in prison, after he admitted to defrauding clients who poured $4.8 million into his purported "Chairman's Fund."
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May 29, 2025
Lindberg Can't Skirt $122M Contempt Order, NC Panel Told
Insurance companies that convicted billionaire Greg Lindberg allegedly bled dry told the North Carolina Court of Appeals not to let him duck a $122 million contempt order, saying he didn't even show up for the hearing and has done nothing since to purge his contempt.
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May 29, 2025
Javice Request To Sink Guilty Verdict Turned Aside By Judge
A Manhattan federal judge declined on Thursday to toss a verdict convicting Frank founder Charlie Javice of tricking JPMorgan Chase into buying the student aid startup for $175 million, saying he properly declined to sever her trial from that of her co-defendant.
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May 29, 2025
Ex-Goldman Partner, Star Witness In 1MDB Trial, Gets 2 Years
Former Goldman Sachs partner and star 1MDB prosecution witness Tim Leissner was sentenced Thursday to two years in prison for his role in a global conspiracy to siphon more than $2.7 billion for bribes and kickbacks from the Malaysian sovereign wealth fund in order to facilitate Goldman-backed bond deals.
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May 28, 2025
FBI Misled Court In Russia Sanctions Probe, Judge Rules
Federal prosecutors cannot use certain evidence to prove charges that a Russian bank executive dodged sanctions because an FBI agent "recklessly omitted material facts" from the related warrant application, a New York federal judge ruled.
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May 28, 2025
Flooring Co. Faces Trafficking, Forced Labor Suit In Ga.
An Oregon-based flooring manufacturer has been sued in Georgia federal court by a group of Chinese nationals who allege they were brought to the U.S. to work at a flooring manufacturing facility in Cartersville, Georgia, then exploited, underpaid and subjected to forced labor.
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May 28, 2025
Law Firm's Suit Against AIG Unit Cut Down To Contract Claims
A Florida federal judge on Wednesday trimmed a law firm's suit claiming an AIG unit allegedly misled it into representing a sports memorabilia collector in underlying civil and criminal fraud cases without payment.
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May 28, 2025
1st Circ. Revives Hedge Fund Priest's SEC Fee Bid
A Greek Orthodox priest and hedge fund founder who partially defeated an SEC suit at trial will have his request the agency pay his attorney fees reconsidered following a First Circuit ruling that a lower court should consider the gap between the SEC's requested relief and the relief it obtained.
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May 28, 2025
SEC Says Florida Adviser Targeted Catholics In $17.3M Fraud
The U.S. Securities and Exchange Commission has accused a former investment adviser and his two Florida companies of misappropriating $17.3 million from dozens of clients, including elderly individuals and Catholic dioceses in Venezuela.
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May 28, 2025
Regeneron Urges Judge In FCA Kickback Suit To Set Trial Date
Regeneron Pharmaceuticals Inc. on Wednesday pressed a Massachusetts federal judge to ready a long-running False Claims Act suit for a jury and reject the government's second bid for a pretrial win under a different legal theory following a First Circuit setback.
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May 28, 2025
Stay Won't Be Lifted On Claims Over $93M Real Estate Fraud
Victims of a $93 million Miami real estate development scheme won't be able to pursue their claims — at least for now — against the company's former CEO after a Florida federal judge on Wednesday denied their request to lift a stay on litigation during a U.S. Securities and Exchange Commission receivership.
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May 28, 2025
Execs Smuggled Billions In Goods To Skirt Duties, Feds Say
Two California shipping company executives have been charged with smuggling billions of dollars' worth of goods from the United States into Mexico — avoiding millions of dollars in duties to Mexico — using bogus documents, shell companies, bribes to public officials and kickbacks to drug cartels.
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May 28, 2025
French Duo Can't Escape SEC's $40M Real Estate Fraud Suit
Two French half-brothers whom the U.S. Securities and Exchange Commission has accused of misappropriating $40 million from investors in a real estate investment fraud scheme lost their bid to get the suit tossed, with a Florida federal judge ruling Wednesday that the investment contracts at issue in the suit qualify as securities.
Expert Analysis
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Series
Adapting To Private Practice: From DOJ Enviro To Mid-Law
Practitioners leaving a longtime government role for private practice — as when I departed the U.S. Department of Justice’s environmental enforcement division — should prioritize finding a firm that shares their principles, values their experience and will invest in their transition, says John Cruden at Beveridge & Diamond.
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AG Watch: Letitia James' Major Influence On Federal Litigation
While the multistate cases brought by New York Attorney General Letitia James appear to be based upon her interpretation of the effect of the Trump administration's policies on New York state and its residents, most also have a decidedly political tone to them, says Dennis Vacco at Lippes Mathias.
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3 Change Management Tools To Boost Compliance Efforts
As companies grapple with rapidly changing regulations and expectations, leaders charged with implementing their organizations’ compliance programs should look to change management principles to make the process less costly and more effective, says Liisa Thomas at Sheppard Mullin.
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Understanding How Jurors Arrive At Punitive Damage Awards
Much of the rising trend of so-called thermonuclear verdicts can be tied to punitive damages amounts that astonish the imagination, so attorneys must understand the psychological underpinnings that drive jurors’ decision-making calculus on damages, says Clint Townson at Townson Litigation.
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DOJ Memo Maps Out A Lighter Touch For Digital Assets
A recent memo issued by the Justice Department signals a less aggressive approach toward the digital asset industry, with notable directives including disbandment of the National Cryptocurrency Enforcement Team, a higher evidentiary bar for unlicensed money transmitting, and prosecutions of individuals rather than platforms, say attorneys at Cleary.
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Legal Ethics Considerations For Law Firm Pro Bono Deals
If a law firm enters into a pro bono deal with the Trump administration in exchange for avoiding or removing an executive order, it has an ethical obligation to create a written settlement agreement with specific terms, which would mitigate some potential conflict of interest problems, says Andrew Altschul at Buchanan Angeli.
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Series
Playing Football Made Me A Better Lawyer
While my football career ended over 15 years ago, the lessons the sport taught me about grit, accountability and resilience have stayed with me and will continue to help me succeed as an attorney, says Bert McBride at Trenam.
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10 Arbitrations And A 5th Circ. Ruling Flag Arb. Clause Risks
The ongoing arbitral saga of Sullivan v. Feldman, which has engendered proceedings before 10 different arbitrators in Texas and Louisiana along with last month's Fifth Circuit opinion, showcases both the risks and limitations of arbitration clauses in retainer agreements for resolving attorney-client disputes, says Christopher Blazejewski at Sherin and Lodgen.
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The SEC's Administrative Law Courts Are At A Crossroads
The U.S. Department of Justice's recent departure from its prior defense of the U.S. Securities and Exchange Commission's administrative law judges' legitimacy moves the forum deeper into a constitutional limbo that likely requires congressional action, says Dean Conway at Carlton Fields.
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Self-Disclosure Calculus Remains Complex Under Trump DOJ
Shifting policy focus under the Trump administration's Justice Department has created uncertainty for individuals considering voluntarily self-disclosing crimes that are no longer considered an enforcement priority, but there has been no indication that the administration intends on dialing back self-disclosure programs, say attorneys at Fox Rothschild.
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Series
Power To The Paralegals: The Value Of Unified State Licensing
Texas' proposal to become the latest state to license paraprofessional providers of limited legal services could help firms expand their reach and improve access to justice, but consumers, attorneys and allied legal professionals would benefit even more if similar programs across the country become more uniform, says Michael Houlberg at the University of Denver.
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Pay Cos. That Adapt Can Benefit As Gov't Ends Paper Checks
Recent executive orders, instructing the government to cease issuing paper checks and to modernize and fraud-proof federal payments, will likely benefit financial services providers that facilitate government disbursements — provided they can manage the challenges and risks of transitioning to fully digital payments, say attorneys at Davis Wright.
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New Anti-Corruption Task Force Bolsters Int'l Collaboration
The recent creation of an anti-corruption task force by the U.K., France and Switzerland demonstrates a commitment to tackling bribery within national and international frameworks, and organizations within these jurisdictions’ remit, including U.S. companies operating in Europe, should review their compliance practices to ensure they address diverging requirements, say lawyers at Skadden.
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10 Soft Skills Every GC Should Master
As businesses face shifting regulatory and technological uncertainty, general counsel will need to strengthen certain soft skills to succeed, from admitting when they make a mistake to maintaining a healthy dose of dispassion, says Douglas Brown at Manatt.
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Reviving A Dormant Criminal Statute In Antitrust Prosecution
The U.S. Department of Justice is poised to revive a dormant misdemeanor statute to resolve bid-rigging charges against a foreign national, providing important context to a recent effort to entice foreign defendants to take responsibility for pending charges or face the risk of extradition, say attorneys at Axinn.