White Collar Crime

Hackers Routinely Sell E-Mail Passwords With Virtual Impunity, WaPo Reports

Think you’re personal e-mail’s secure? Think again. Hackers can obtain virtually anyone’s password, experts say, and the penalties for doing so, in the rare cases that are prosecuted, ordinarily provide little or no protection, according to the Washington Post. Those who wish to obtain someone else’s e-mail password can purchase…

Sep 8, 2009 5:44 PM CDT

Accused of $74M Loan Fraud, Nemazee Did it Again—Twice, Prosecutors Say

Accused of duping Citibank into giving him a $74 million loan based on fraudulent documents misrepresenting his assets, a prominent Democratic political fundraiser reportedly had paid the money back by the time he was criminally charged with bank fraud last week. But now prosecutors say Hassan Nemazee, 59, got the…

Sep 3, 2009 9:51 PM CDT

Madoff Thought Jig Was Up in 2006, But SEC Didn’t Check Trades

Questioned by the U.S. Securities and Exchange Commission in 2006, Bernard Madoff gave the feds his account number at the Depository Trust Co. independent clearing agency and figured he was only hours away from being exposed as the architect of a massive investment fraud. “I thought it was the end,…

Sep 3, 2009 6:12 PM CDT

SEC Never Did ‘Thorough & Competent’ Madoff Probe, Internal Report Says

Despite at least six complaints over a period of nearly a decade that Bernard Madoff was running a Ponzi scheme under the guise of a hedge fund, the U.S. Securities and Exchange Commission never did a “thorough and competent” investigation into what turned out to be a record-breaking $65 billion…

Sep 2, 2009 7:59 PM CDT

Stanford Receiver Defends $27M Bill Against SEC’s ‘Shrill Objections’

In an unusual public battle over a court-appointed receiver’s $27 million bill, attorney Ralph Janvey is telling the feds that cleaning up an alleged $7 billion bank Ponzi scheme of which Texas billionaire R. Allen Stanford is the accused mastermind costs money. In a filing last night in federal district…

Sep 2, 2009 6:22 PM CDT

Pfizer to Pay Record $2.3B, Subsidiary to Plead to Felony in Drug Marketing Case

A $2.3 billion global settlement by Pfizer Inc. detailed by federal authorities today reportedly includes a number of record payments to resolve both a federal criminal probe and a pharmaceutical whistle-blower case. The case concerns the company’s alleged illegal off-label marketing of multiple drugs and related claimed Medicare/Medicaid fraud, according…

Sep 2, 2009 5:41 PM CDT

Town Without Pity

For years, a judge in Pennsylvania jailed kids illegally. Whether it was for ‘tough love’ or just cold cash, where were the lawyers?

Sep 2, 2009 4:40 AM CDT

Rule of Law School

It is really encouraging to see “Russia Claws at the Rule of Law” (July) on the cover of the ABA Journal. As a lawyer practicing in Russia for the past six years, I can confirm that most of the issues described take place, especially with regard to criminal investigations. However I strongly disagree with the teaser stating: “In the 1990s, Russia embraced the rule of law.”

Sep 2, 2009 4:20 AM CDT

Fed’l Judge Dismisses Big Drug Case, Calls DOJ Misconduct Issue Moot

Perhaps seeing the handwriting on the wall, the U.S. Department of Justice asked a federal judge to dismiss a major drug case with prejudice, and the judge has agreed. Friday’s dismissal with prejudice of a conspiracy case against Zhenli Ye Gon is expected to send the defendant to Mexico to…

Aug 31, 2009 10:30 PM CDT

Investors Sue Proskauer & Partner Over Alleged Conspiracy With Stanford

Investors who lost money in R. Allen Stanford’s alleged $7 billion Ponzi scheme run under the guise of a banking operation based in Antigua have reportedly filed a class action against Proskauer Rose and partner Thomas Sjoblom. Filed yesterday in federal court in Dallas, it alleges that the firm participated…

Aug 28, 2009 9:36 PM CDT

Accused Record ID Theft Mastermind to Plead Guilty in 2 Earlier Cases, Feds Say

A 28-year-old Florida resident accused of masterminding what authorities say is the largest-ever computer hacking and identity theft case is expected to plead guilty in two earlier cyberfraud conspiracy cases, prosecutors say. Paperwork filed in federal court in Boston today states that Albert Gonzalez will plead guilty by Sept. 11…

Aug 28, 2009 8:15 PM CDT

Heart Issue Sends Stanford to Hospital; Ex-CFO Pleads Guilty

The billionaire financier accused in an alleged $7 billion fraud involving certificates of deposit missed a court hearing today because of an irregular heartbeat, while one of his executives pleaded guilty in the case. James Davis, former chief financial officer of Stanford International Bank, pleaded guilty to fraud and conspiracy,…

Aug 27, 2009 3:11 PM CDT

4 New York Lawyers Indicted in Alleged $1.4M Equity-Stripping Scam

Four New York lawyers are among eight individuals indicted in an alleged $1.4 million equity-stripping scheme involving four homeowners in the New York City suburbs. They are accused of having defrauded four Westchester County homeowners and two lenders by purchasing homes from owners facing foreclosure at lowball prices, then taking…

Aug 26, 2009 7:49 PM CDT

Ex-Lawyer Found Dead as Fed’l Trial in Embezzlement Case Is Hours Away

Accused of embezzling at least $2.2 million from clients over a two-year period, a former lawyer was found dead in his Indiana home early Sunday, hours before he was scheduled to go to trial in federal court in Hammond. Authorities say the death of 46-year-old William Crabtree II was not…

Aug 25, 2009 9:30 PM CDT

Accused of Acting as ‘De Facto G-Man,’ Lawyer Says Ex-Client Is in Dreamland

Attorney David Blythewood was supposed to be defending Nassau County Legislator Roger Corbin in a criminal tax evasion case. But “Mr. Bythewood’s representation of Roger Corbin throughout the entirety of this case has been so far beneath the standard of effective assistance of counsel as to render Mr. Bythewood a…

Aug 25, 2009 7:14 PM CDT