White Collar Crime

Prosecutors Seized All Files in My Law Office, NY Attorney Says

A former member of the Suffolk County Legislature says the county’s district attorney seized virtually every file in his Long Island law office this week. “They took 30 years of my files,” attorney George Guldi, 57, tells Newsday. “They’re trying to drive me out of business.” In addition to real…

Feb 7, 2009 1:05 AM CST

Attorney Marc Dreier Gets Unsecured $10M Bail, Under Strict House Arrest

Like another alleged white-collar criminal who has been much in the news lately, attorney Marc Dreier will soon be out of jail and under house arrest. He is to be released on an unsecured $10 million bond, a federal judge in New York City decided yesterday, over the objections of…

Feb 5, 2009 9:30 PM CST

Fla. Closing Attorney Pleads in $83M Loan Fraud Case, Could Get 10 Years or Less

A Sarasota, Fla., lawyer pleaded guilty yesterday in federal court in Tampa to charges that could result in a sentence of eight to 10 years for his role in an almost $83 million loan fraud scheme from which he reportedly received about $7.6 million. According to the plea agreement, John…

Feb 5, 2009 8:39 PM CST

Suspended Pa. Judge Changed Other Judges’ Sentences, His Successor Says

A suspended judge who formerly served as the president judge of Luzerne County had been changing sentences for some convicted felons, often without the knowledge of the judges who originally imposed the sentences, his successor says. “Former Luzerne County President Judge Mark A. Ciavarella Jr. bypassed the rest of the…

Feb 5, 2009 7:24 PM CST

Pressure Grows for Bipartisan Probe of Regulatory Lapses Behind Financial Crisis

In response to calls for action from outraged constituents, there is growing bipartisan support among rank-and-file members of Congress for a full-scale investigation of the regulatory lapses that allowed an economic debacle perhaps second only to the Great Depression of the 1930s to sweep through the country. Many are now…

Feb 5, 2009 2:26 AM CST

Paul Weiss Partner Calls $6.6M Divorce Settlement Unfair, Blames Madoff

A partner at Paul Weiss Rifkind Wharton & Garrison is seeking to reopen his $6.6 million divorce settlement with his wife of more than 30 years, saying that he paid her far more than he would otherwise have agreed to because of fraudulent investment account statements from a Bernard Madoff…

Feb 4, 2009 9:23 PM CST

Luzerne County, Pa., Court Shakeup Expands Exponentially

After news that two now-suspended senior Luzerne County judges have agreed to plead guilty to criminal charges, Pennsylvania state lawmakers plan to discuss possible compensation for juveniles that the two judges are accused of sending to detention facilities in exchange for monetary kickbacks. “Meanwhile, the state Supreme Court has agreed…

Feb 4, 2009 7:56 PM CST

Madoff Whistle-blower to Blast SEC in Congressional Testimony Tomorrow

Trying to warn the U.S. Securities and Exchange Commission about an apparent fraud being perpetrated by Bernard Madoff was not only frustrating but potentially dangerous, a whistle-blower reportedly plans to say in testimony tomorrow before a congressional subcommittee. Despite his repeated warnings to the SEC, starting in 1999 or 2000,…

Feb 4, 2009 1:02 AM CST

Alleged $50B Madoff Fraud is Keeping a Lot of Law Firms Busy

More than 30 law firms around the world are representing an estimated 3 million alleged victims of the claimed $50 billion Ponzi scheme that Bernard Madoff is accused of running as a purported hedge fund. “Our calculations are that at least 3 million people were affected by the Madoff affair,…

Feb 3, 2009 8:39 PM CST

FDA Opens Criminal Probe of Peanut Co.; Obama Calls for Agency Overhaul

The federal Food and Drug Administration has opened a criminal investigation into a closely held Virginia-based company that has been blamed for a salmonella outbreak that allegedly sickened more than 500 people and killed eight. Although Peanut Corp. of America’s own tests in 2007 and 2008 showed that salmonella was…

Feb 2, 2009 5:55 PM CST

Suspended Pa. Judge Now at Issue in $3.4M Legal Malpractice Judgment

Accusations that two now-suspended Pennsylvania judges accepted $2.6 million in kickbacks in exchange for incarcerating juveniles at specific detention facilities have spilled over into another multimillion-dollar case. A law firm seeking to overturn a $3.4 million legal malpractice award says in a motion for a new trial yesterday that it…

Jan 30, 2009 8:20 PM CST

How Did Court Examiners Miss $4M Allegedly Siphoned By N.Y. Guardian?

News this week that a New York lawyer serving as a court-appointed guardian has been accused of taking $4 million from some $30 million in funds that he was in charge of overseeing is sparking scrutiny of the system for reviewing guardians’ work. Outside examiners selected by judges from a…

Jan 30, 2009 5:41 PM CST

Attorney Marc Dreier is Indicted in Alleged $400M Schemes

Indicted today by a federal grand jury in New York on securities fraud, wire fraud and conspiracy charges, attorney Marc Dreier apparently is hoping to strike a plea deal. Prosecutors contend he cost clients and sophisticated investors, respectively, more than $400 million by misappropriating trust money and selling fictitious promissory…

Jan 30, 2009 1:24 AM CST

Ill. Senate Ousts. Gov. Blagojevich; Lt. Gov, a Lawyer, Now Takes His Place

A historic impeachment trial of Illinois Gov. Rod Blagojevich ended today and, within a few hours, the state senate voted to remove him from office. They convicted Blagojevich of abusing his power as governor after accusations that he tried to barter the U.S. Senate seat once held by President Barack…

Jan 29, 2009 9:51 PM CST

2 Pa. Judges are Suspended, Due to Kickbacks-for-Jailed-Juveniles Case

Acting within days of news that two longtime Pennsylvania judges have agreed to plead in a case alleging that they accepted $2.6 million in exchange for jailing juveniles in specific detention facilities, the state supreme court has suspended both, citing the criminal charges against them. Mark Ciavarella Jr., 58, who…

Jan 29, 2009 5:54 PM CST