White Collar Crime

Former Sullivan & Cromwell Partner Allegedly Failed to File Returns and Pay Tax on $10.8M in Income

A former mergers and acquisitions partner at Sullivan & Cromwell has been criminally charged for allegedly failing to file returns and pay federal tax on almost $10.8 million in income he earned at the firm between 2001 and 2008. John O’Brien is accused of spending money he should have used…

Aug 4, 2011 6:00 PM CDT

Family Wary of Russia’s Decision to Reopen Tax Case of Lawyer Who Died in Custody

Russian officials announced they are reopening a criminal tax evasion case against a lawyer who died in custody two years ago after he accused police officials of corruption. Prosecutors in Russia say the decision could result in clearing Sergei L. Magnitsky’s name. But Magnitsky’s family is wary of the news.…

Aug 4, 2011 12:56 PM CDT

Firms Chase White-Collar Defense Work in Asia as U.S. Investigations Persist

While federal prosecutors in the U.S. are pursuing dozens of cases under the Foreign Corrupt Practices Act in an effort to root out bribery in Asia and beyond, law firms are beefing up practices to advise clients who can face millions of dollars in fines to resolve claims of wrongdoing.…

Aug 4, 2011 10:26 AM CDT

Defendant State’s Attorney Scores 2nd Directed Verdict, May Sue His Accusers

For the second time in four months, a sitting Illinois prosecutor facing felony charges over his alleged misuse of his office for political purposes has won a directed verdict in a bench trial. McHenry County State’s Attorney Louis Bianchi will now consider possible litigation against his accusers, his lawyer, Terry…

Aug 2, 2011 9:13 PM CDT

Former GC Sentenced to 15 Years for Aiding Life Settlement Fraud; Defense Argued He Was Naïve

The former general counsel of a Houston life settlement company has been sentenced to more than 15 years in prison for aiding a corporate scheme that defrauded investors of $100 million. Even the prosecutor described the defendant, Russell Mackert, as kind and mild-mannered, Corporate Counsel reports. Mackert’s lawyer, Carolyn Grady,…

Jul 29, 2011 3:49 PM CDT

Ex-Law Dean at Kaplan Gets 1 Year for Sending Threatening Internet Messages

A former law dean at Kaplan Inc. has been sentenced to a year and a day in federal prison for sending threatening messages concerning the online educational institution and its chief executive officer. Bennie Wilcox, 45, maintained that he did not send the 2007 emails and Internet postings at issue…

Jul 22, 2011 6:41 PM CDT

Suspended Lawyer Found Dead After Failing to Appear for Sentencing in Mail-Fraud Case

Updated: Scheduled to be in federal court in East St. Louis for sentencing today at 9 a.m. in a mail fraud case, an Illinois attorney sent his lawyer a fax at 8 a.m. saying he wouldn’t be there. The judge issued a warrant for the arrest of Dennis Nalick, 63,…

Jul 21, 2011 7:02 PM CDT

Attorney Facing 80 Felony Counts in Law Firm Embezzlement Case

A lawyer working as a paralegal at a small Fort Lauderdale law firm is facing over 80 felony counts in a case concerning her alleged embezzlement from Hermelee & Geffin and an attorney officed there. Charged yesterday in Miami-Dade Circuit Court with crimes including grand theft and forgery, 53-year-old Brenda…

Jul 20, 2011 4:48 PM CDT

Former Kirkland & Ellis Partner Indicted, Accused of Cheating on Personal Income Tax

A former bankruptcy partner at Kirkland & Ellis has been indicted on four counts of income tax fraud. Theodore Freedman, 63, is accused of underreporting by over $2 million his nearly $5.4 million in total income between 2001 and 2004. He is also accused of claiming over $500,000 in expenses…

Jul 14, 2011 6:38 PM CDT

Neighbor Gets 18 Years for Hacking Lawyer’s Wi-Fi Account, Using His ID to Harass Others

Attorney Matt Kostolnik wound up with a seeming MySpace page featuring teens having sex and was visited at work by the Secret Service after the Minneapolis lawyer moved next door to a computer technician who quickly developed a grudge against him and his wife. Law firm superiors also wanted an…

Jul 13, 2011 9:28 PM CDT

Warrant Issued for Ex-Prosecutor Who Was a No-Show at His Own Client-Theft Trial

An arrest warrant has been issued for a former Louisiana prosecutor who was a no-show both Monday and Tuesday at his scheduled trial on charges of client theft. Stephen Callahan, 51, allegedly took money from four women while subsequently working as a private practitioner but then did not perform promised…

Jul 13, 2011 6:41 PM CDT

US Wiretapped 104 Callers to Primary Global’s Conference Lines

With the permission of a federal judge in Manhattan, federal investigators in 2009 listened in to conversations involving 104 callers to conference lines at Primary Global Research, Bloomberg reports. The so-called expert networking firm is at the center of an ongoing insider-trading probe. A lawyer for at least one defendant…

Jul 13, 2011 5:12 PM CDT

Ex-Office Manager’s Theft of Over $1M from NJ Law Firm Forced Layoffs, Partners Say

A former office manager allegedly forced a Morristown, N.J., area law firm to lay off associates and staff by taking more than $1 million between 2003 and the beginning of 2010. Beth Friedland admittedly took $448,721 from the Maloof Lebowitz Connahan & Oleske, which is located in Chatham Borough, and…

Jul 11, 2011 4:50 PM CDT

Chamber of Commerce-Funded Movie Focusing on Scruggs, Milberg Weiss Is Set to Premiere Monday

The new Hot Coffee, which premiered at Sundance in January and on HBO last month, offered a positive look at the plaintiff’s side in the infamous 1994 case in which Stella Liebeck won $3 million from McDonald’s, among other cases. But a Chamber of Commerce-funded movie set to premiere on…

Jul 8, 2011 7:41 PM CDT

Prominent Lawyer Gets 8 Months as Her Attorney Husband Urges Court to Blame Him in Tax Case

A third-generation lawyer in a prominent Michigan legal family was sentenced to eight months yesterday in a federal tax case. Nancy Dilley, who pleaded guilty to the misdemeanor of failing to file a 2007 tax return, must also serve a year of supervised release after she completes her prison term…

Jul 7, 2011 4:54 PM CDT