‘Look to Libby’ Plea Loses

A federal judge in San Francisco didn’t give much weight to a former lawyer’s bid for a reduced sentence that cited President Bush’s decision to commute the sentence of an ex-aide. U.S. District Judge Jeffrey White sentenced Troy Ellerman yesterday to 30 months in jail for leaking grand jury transcripts…

Jul 13, 2007 1:04 PM CDT

26 Charged in $200 M Mortgage Fraud

Federal prosecutors in New York City announced today charges against 26 people in an alleged $200 million subprime mortgage scheme that involved 1,000 fraudulent loans. Participants allegedly cooperated to submit fraudulent mortgage applications between 2004 and 2006, obtaining funding for loans that otherwise would never have been made, reports CNN.…

Jul 11, 2007 1:57 AM CDT

Milberg Changes Name, Fights On

Milberg Weiss & Bershad has changed its name to simply Milberg Weiss following a guilty plea by ex-partner David Bershad. Now Bershad will cooperate in the investigation of the embattled firm, which is accused of paying kickbacks to lead plaintiffs in securities class action suits. The firm has been indicted…

Jul 10, 2007 2:00 PM CDT

Ex-Milberg Partner Reaches Plea Deal

Updated: A former partner at securities class-action firm Milberg Weiss & Bershad has agreed to plead guilty to conspiracy and cooperate with a probe into whether the firm paid kickbacks to clients, the Wall Street Journal reports (sub. req.). David Bershad will be the first Milberg attorney to plead guilty…

Jul 9, 2007 9:03 PM CDT

Bush Breaks Routine in Libby Case

When he was governor of Texas, George W. Bush generally exercised his power to grant clemency only when actual innocence had been demonstrated. Bush explained his philosophy in his 1999 memoir, A Charge to Keep, according to a New York Times article. “In every case,” he wrote, “I would ask:…

Jul 9, 2007 5:05 PM CDT

CEO Intent Critical in Options Case

Federal prosecutors will file briefs this morning backing up their assertion that the former CEO of Brocade Communications acted with criminal intent when he authorized backdated stock options. U.S. District Judge Charles Breyer ordered the briefs on Friday after the government wrapped up its case against Gregory Reyes, the Recorder…

Jul 9, 2007 12:49 PM CDT

Posturing Shown in KPMG Notes

Recently released notes of conversations between federal prosecutors and lawyers for accounting firm KPMG reveal posturing and bluster as both sides pressed for a favorable resolution of tax shelter allegations. KPMG avoided criminal charges by fulfilling a two-year delayed prosecution agreement, but the criminal prosecution of 16 former tax employees…

Jul 6, 2007 8:19 PM CDT

Ex-CEO Scrushy Sentenced

Former HealthSouth CEO Richard Scrushy has been sentenced to almost seven years in prison for paying a bribe to obtain a spot on a state board that regulates hospitals. U.S. District Judge Mark Fuller refused to stay the jail sentence for Scrushy or for former Alabama Gov. Don Siegelman, ordered…

Jun 29, 2007 2:44 PM CDT

Weiss, Lerach: No Deal to Plea Deal

Updated: Famed plaintiff securities lawyers Melvin Weiss and William Lerach reportedly have said no deal to a plea deal offered by federal prosecutors in a criminal kickbacks case against the New York City law firm Weiss founded and two partners there. The rejected plea deal, offered weeks ago in the…

Jun 28, 2007 9:14 PM CDT

Silicosis Lawyer Indicted

A Houston lawyer has been indicted along with two insurance company employees on charges they participated in a kickback scheme in silicosis cases. Prosecutors claim Warren Todd Hoeffner agreed to pay two claims managers for the Hartford a $3 million kickback for approving a $34 million settlement of silicosis cases,…

Jun 28, 2007 5:35 PM CDT

Conrad Black Case Moves to Jury

Jurors are expected to begin deliberations today in the trial of media baron Conrad Black, accused of diverting noncompete payments from Hollinger International. Black is on trial along with two co-defendants on charges they defrauded investors of about $60 million and lied to investigators. About 50 witnesses testified, but the…

Jun 27, 2007 2:01 PM CDT

Civil Rights Lawyer Convicted

A crusading civil rights lawyer convicted of tax evasion and other charges could be sentenced to more than six years in prison. Stephen Yagman of Venice, Calif., was convicted of tax evasion, bankruptcy fraud and money laundering on Friday, the Los Angeles Times reports. Prosecutors had claimed Yagman hid money…

Jun 25, 2007 3:10 PM CDT

Wealth Isn’t Criminal, Ex-CEO’s Lawyers Say

A lawyer for Conrad Black told jurors today that prosecutors appeared to be trying to convict their client for his wealth and lavish lifestyle. “Being wealthy doesn’t make you a bad man,” lawyer Edward Genson said in closing arguments today, according to an Associated Press account. Genson characterized Black as…

Jun 20, 2007 8:11 PM CDT

Ex-Enron Executive Sentenced

The former CEO of Enron’s broadband unit was sentenced today to 27 months in prison for misleading investors. Kenneth Rice will also pay a $50,000 fine and forfeit more than $13 million in cash and property, the Houston Chronicle reports. He was accused of lying about the capabilities of the…

Jun 18, 2007 8:39 PM CDT

Legal Fees an Issue in Dynegy Case

The case of a former executive at Dynegy Inc. illustrates the importance of company-paid legal fees.

Former Dynegy accountant Jamie Olis maintains he didn’t have the resources to mount an adequate defense against criminal charges after his company ceased paying fees, according to a Wall Street Journal (sub. req.) account of his case. He claims then-U.S. Attorney Michael Shelby pressured the company to stop paying fees.

A civil jury in Texas agreed, ordering the energy company last month to pay $2.5 million in damages for wrongly holding back the fees.

But the verdict came too late for Olis, who is serving a six-year prison term for helping create sham financial transactions.

Jun 12, 2007 3:52 PM CDT