Corporate Compliance

$4B BOA-Countrywide Deal Price Tag Doesn’t Include Legal Woes

Bank of America Corp.’s newly announced deal to buy Countrywide Financial Corp. likely could cost considerably more than the $4 billion purchase price. That’s because BOA is taking on a lengthy list of legal issues faced by Countrywide, the nation’s largest mortgage lender, as part of the deal, according to…

Jan 11, 2008 6:53 PM CST

Lawyer Says Subprime Suits Could Be ‘Bigger Than Enron’

A lawyer at a well-known British firm says a wave of lawsuits being filed over subprime mortgage issues could eventually exceed the scope of the litigation over the infamous Enron debacle. “In terms of the potential numbers of lawsuits, the subprime crisis could be bigger than Enron,” Tim House, an…

Jan 11, 2008 4:49 PM CST

Martin Lipton’s Latest Client Memo ‘Wrongheaded,’ Columnist Says

The latest advice offered by high-profile lawyer Martin Lipton to his corporate clients is “wrongheaded” and “dangerous,” Andrew Ross Sorkin asserts in a Dealbook column for the New York Times. The 76-year-old lawyer sent out a pre-Christmas memo advising corporate board members to resist shareholder efforts to dictate executive compensation…

Jan 8, 2008 5:15 PM CST

Ex-GC to Be Sentenced this Month for Insider Trading

The former general counsel of semiconductor maker Amkor Technology Inc. faces up to five years in prison when he is sentenced Jan. 28 for insider trading. At one time, Kevin Heron was in charge of insider trading compliance for the company. But he was convicted July 19 based on evidence…

Jan 8, 2008 1:19 PM CST

The Hammer Goes In-House

Latest chapter in corporate fraud probe has SEC going after general counsel

Jan 1, 2008 7:58 PM CST

Seventeen Percent

The percentage of in-house counsel surveyed who said that, in the past year, they’ve waived attorney-client privilege for employees in an enforcement proceeding with the Securities and Exchange Commission. “They undoubtedly believed that under the SEC’s present policy and practice on rewarding cooperation, they would receive appropriate positive consideration in…

Jan 1, 2008 4:53 PM CST

Mayer Brown Partner Sued—and Charged—by SEC in Refco Case

Updated:: The SEC filed civil and criminal cases today against a partner at Mayer Brown, accusing him of helping one of the world’s biggest commodities brokerages hide from investors information about debt that it was owed and related transactions. Joseph P. Collins, 57, allegedly helped Refco Group Ltd. and its…

Dec 18, 2007 6:36 PM CST

Corp. Crime Crackdown: Many Serve Minimal Sentences

Despite a renewed emphasis on corporate compliance in recent years and a high-profile crackdown on executives who don’t play by the rules, such prosecutions may be sending a mixed message to those tempted by white-collar crime. That’s because nearly half of the defendants convicted in such cases during the past…

Dec 13, 2007 7:00 PM CST

U.K. Considering Sarbanes-Like Rules

In the wake of an unprecedented loss of a government database containing confidential information about tens of millions of people, British legislators are reportedly considering new data-protection safeguards. Possible changes in the law being discussed would hold company chief executives directly responsible for data protection and make it a crime…

Dec 7, 2007 5:51 PM CST

Mortgage Mess Gets Messier

Despite cleanup efforts, the mortgage mess continues. The Bush administration announced today a plan to freeze the interest rate on some subprime mortgages for five years, which could help more than a million homeowners. As an article on the CNN Money.com website details, the plan would grant those current on…

Dec 6, 2007 8:24 PM CST

Prosecutors Bringing More Foreign Bribery Cases

Prosecutors and securities officials are increasingly targeting companies for paying bribes to obtain foreign contracts, bringing more than double the number of cases this year than the number filed in 2004. The government has already collected more than $100 million in penalties this year, the Washington Post reports. Prosecutions are…

Dec 5, 2007 4:17 PM CST

Auditors’ Quest for Legal Documents Could Risk Exposure

Auditors complying with post-Enron laws are increasingly asking for legal documents, putting the material at risk for disclosure in lawsuits. When confidential documents are shown to outside parties, they are no longer protected from disclosure by the attorney-client privilege, the New York Times explains. Only around 30 states protect the…

Nov 16, 2007 4:37 PM CST

Kansas Utility Owes CEO $2.46M in Defense Costs

Echoing a similar holding by a federal judge concerning another company executive, a special master in Kansas state court has found that a utility company wrongly refused to pay $2.46 million in legal fees to defend its former chairman and CEO in a criminal fraud case. The utility, Westar Energy…

Nov 15, 2007 7:17 PM CST

Are New U.S. Accounting Rules Bad News for Banks?

The last few months have not been good ones for the global banking industry, as rapidly rising mortgage defaults sparked a credit crisis. But the situation may get even worse before it gets better. And, if so, new U.S. accounting standards may be one big reason why, a British columnist…

Nov 12, 2007 8:10 PM CST

William Lerach Goes Down Fighting With WaPo Commentary

Securities class-action lawyer William Lerach, who pleaded guilty to paying kickbacks to lead plaintiffs, takes aim at sweet deals for corporate CEOs who lose shareholder money in a commentary published in the Washington Post. Lerach complains that he is being held “accountable for overzealously pursuing these corporate scam artists” while…

Nov 12, 2007 7:11 PM CST