Securities Law

3rd Parties Will Pay for Alleged $50B Madoff Fraud, Experts Predict

For those who invested in the claimed $50 billion Ponzi scheme allegedly run by Bernard Madoff under the guise of a hedge fund, exactly how they invested in the hedge fund could be crucial in determining whether they get their money back. Those who put their money directly into the…

Dec 17, 2008 8:32 PM CST

Mukasey Recuses Himself in Madoff Probe

U.S. Attorney General Michael Mukasey won’t participate in an investigation of Bernard Madoff, accused of defrauding investors of $50 billion in a huge Ponzi scheme. Mukasey did not give a reason for his recusal, report FOX News and ABC News. But his son, Marc Mukasey, a lawyer with Bracewell &…

Dec 17, 2008 5:23 PM CST

Judge Refuses to Approve Settlement Proposal in Backdating Case

A federal judge has refused to accept a proposed settlement in an options backdating suit. U.S. District Judge James Ware refused to dismiss a derivative suit at the request of KLA-Tencor Corp. earlier this month, citing concerns about the independence of a member of the board of directors’ special litigation…

Dec 17, 2008 4:50 PM CST

Judge Questions Dewey Fee Application Seeking About $100K a Day

A federal judge is seeking more information on a $2.1 million fee application by Dewey & LeBeouf that breaks down to about $100,000 a day in attorney fees. U.S. District Judge Denny Chin asked for more information on the application by Dewey partner Timothy Coleman, who is the receiver for…

Dec 17, 2008 2:55 PM CST

Cox: SEC Lax on Madoff Oversight, Seeks Probe of His Own Agency’s Work

In a situation he describes as “deeply troubling,” the head of the Securities and Exchange Commission says the federal securities watchdog failed to pursue aggressively “credible and specific allegations” going back at least as far as 1999 that the now-notorious hedge fund run by Bernard Madoff was not what it…

Dec 17, 2008 12:53 AM CST

NY Law School Leads Litigant Pack in Suits Over Alleged $50B Madoff Fraud

Less than a week after Bernard Madoff’s claimed $50 billion hedge fund fraud first came to light, lawsuits are already being filed. Among the prime targets are apparent victims of the fraud who allegedly didn’t do enough to investigate before recommending the massive Ponzi scheme to others. And front and…

Dec 17, 2008 12:01 AM CST

Why Wasn’t Madoff’s Alleged $50B Ponzi Scheme Discovered Earlier?

After staggering news last week that the longtime head of a respected Wall Street investment firm had allegedly been running a massive $50 billion Ponzi scheme under the guise of a hedge fund for years, there has been fallout on many fronts. As victims lawyer up, both the Securities and…

Dec 16, 2008 6:25 PM CST

Siemens Reaches $1.3B Bribe Settlement with Help of Debevoise, Davis Polk

The engineering firm Siemens AG has agreed to pay more than $1.3 billion to settle corruption charges in the United States and Germany. The company entered a guilty plea in Washington, D.C., on Monday, the Associated Press reports. It will pay more than $800 million to settle U.S. charges of…

Dec 16, 2008 3:53 PM CST

Another Issue for Dreier Lawyers: Lapsed Malpractice Coverage

A scary law firm financial situation that already posed possible liability risks to non-equity partners at Dreier has gotten even more frightening. Initially, with Marc Dreier, the firm’s only equity partner, as the sole person in charge of the 250-attorney partnership’s finances, it seemed that other attorneys there were benefited…

Dec 15, 2008 5:50 PM CST

Bernard Madoff’s Alleged $50B Investor Fraud ‘a Debacle for the SEC’

The Securities and Exchange Commission received several warnings about the conduct of Bernard Madoff, accused last week of cheating investors out of $50 billion in a “giant Ponzi scheme.” Madoff had a reputation for such spectacular investment returns that his conduct aroused some suspicion, but in many circles he had…

Dec 15, 2008 1:10 PM CST

Ill. AG Files Motion Seeking Court Ouster of Blagojevich

Updated: Illinois Attorney General Lisa Madigan has filed a motion with the Illinois Supreme Court seeking the ouster of Gov. Rod Blagojevich. Madigan is citing Rule 382, which gives the Illinois Supreme Court the power to determine the ability of the governor to serve, the Chicago Sun-Times reports. “I recognize…

Dec 12, 2008 5:24 PM CST

Ex-Nasdaq Chair Accused of ‘Stunning’ $50B Fraud in ‘Giant Ponzi Scheme’

The former chairman of the Nasdaq stock market has been charged with a “stunning” $50 billion securities fraud after his sons alerted officials that their father had confessed to running “a giant Ponzi scheme.” Bernard Madoff, 70, was accused in civil and criminal complaints of paying returns to investors in…

Dec 12, 2008 12:21 PM CST

Dreier Controller: I Refused Jailed Boss’s Request for Escrow Millions

The controller of the Dreier law firm says in a sworn statement that he refused to wire up to $10 million in escrow funds to his boss sitting in a Canadian jail. The statement was contained in court filings by the Securities and Exchange Commission, the Wall Street Journal reports.…

Dec 10, 2008 1:52 PM CST

How Attorney Marc Dreier Allegedly Sold Worthless Forged Paper for $113M

In an era of high-tech fraud, the founder of the Dreier law firm is accused of doing it the old-fashioned way. Using little more than his position and skills as a prominent and seasoned attorney, Marc Dreier allegedly tricked sophisticated investors into paying more than $100 million for worthless forged…

Dec 9, 2008 8:20 PM CST

Dreier Founder Charged in ‘Brazen’ Alleged $100M Investment Fraud Attempt

The founder of the not quite 250-attorney Dreier law firm was charged today by federal prosecutors in Manhattan with securities and wire fraud, in connection with what an Securities and Exchange Commission official describes as an alleged “brazen” attempt to cheat three unnamed hedge funds out of $100 million. Marc…

Dec 8, 2008 8:09 PM CST