White Collar Crime

CEO Convicted in 1st Backdating Case

Updated: In a result seen as a major victory for federal prosecutors, a jury in San Francisco today convicted the former CEO of Brocade Communications Systems Inc. of securities fraud in the first criminal stock options backdating case to go to trial. Today’s conviction of Gregory Reyes, 44, on 10…

Aug 7, 2007 10:06 PM CDT

Milberg Weiss Loses Dismissal Motion

Are kickbacks to lead plaintiffs in securities class actions perfectly legal? Not according to a Los Angeles federal judge. Judge John Walter refused to dismiss charges of illegal kickbacks yesterday against law firm Milberg Weiss and one of its former partners, the Los Angeles Times reports. “It seems to me…

Aug 7, 2007 1:32 PM CDT

It Pays to be Wary, as Bribe Cases Rise

Depending on where you are in the world, it might be thought of as payola. Or baksheesh. Or a backhander, among other terms. But for American companies, a bribe by any name is a bigger problem these days than it used to be. The increased focus on corporate compliance in…

Aug 6, 2007 4:13 PM CDT

DOJ Confession Didn’t Help Chiquita

Chiquita International Brands met with a top Justice Department official in April 2003 to disclose paying protection money to a Colombian paramilitary group on a U.S. list of terrorist organizations. Then the company waited for a response. And waited. The official was Michael Chertoff, sources told the Washington Post. At…

Aug 2, 2007 6:36 PM CDT

Subprime Woes Good News for Lawyers

As the nation’s subprime mortgage market continues to implode, a booming practice area is being created for lawyers in various related areas of practice. In fact, subprime mortgage issues—which apparently are likely to include a heavy focus on white-collar crime—will be virtually a full-employment act for attorneys, in much the…

Aug 1, 2007 9:26 PM CDT

CA Museum Returns Allegedly Stolen Art

Ending a long-standing dispute over the ownership of some of the most prized art works in its collection, the J.P. Getty Museum has agreed to return to the Italian government 40 antiquities illegally excavated and exported from that country. The draft agreement is still being finalized, but will return to…

Aug 1, 2007 5:42 PM CDT

GOP Senator’s Home Raided

Federal authorities raided the Alaska home of Sen. Ted Stevens yesterday as part of an investigation into his ties to an energy company that oversaw a renovation of his house. The chief executive of the energy company, Veco, pleaded guilty to bribing Alaska state legislators in early May, the Washington…

Jul 31, 2007 12:23 PM CDT

Firm Resolves IRS Dispute

A former California law firm and one of its partners have reached an agreement in a dispute with the Internal Revenue Service over documents related to tax shelter advice. Details of the agreement reached last week are not available, the National Law Journal reports. The defunct firm–Lee, Goddard & Duffy…

Jul 31, 2007 11:46 AM CDT

Deputy AG Jumps to Baker

Deputy Attorney General Paul McNulty is jumping to a big law firm: Baker & McKenzie. His new job should pay enough to help him finance college for his children, his stated reason for leaving the Justice Department. The Wall Street Journal’s Law Blog reports that McNulty will work in the…

Jul 30, 2007 8:39 PM CDT

Qwest Ex-CEO Gets Six-Year Sentence

Updated: A federal judge has ordered the ex-CEO of Qwest Communications to serve six years in prison for insider trading. Joseph Nacchio was also ordered to forfeit $52 million in profits from illegal stock trades and to pay $19 million in fines, the Denver Post reports. Nacchio cried before U.S.…

Jul 27, 2007 8:30 PM CDT

More Backdating Charges

The government has announced charges against three more executives as its pursuit of options backdating offenses intensifies. ABAJournal.com noted one of the cases against the ex-CEO of KLA-Tencor in a post earlier today. The Securities and Exchange Commission filed a civil suit yesterday against the former executive, Kenneth Schroeder, accusing…

Jul 26, 2007 6:11 PM CDT

Strong Support for Privilege Bill

Supporters predict that legislation to protect attorney-client privilege in corporate probes could pass by the end of a year. Bills introduced in the House and Senate have strong bipartisan backing, the National Law Journal reports. The measures would bar federal prosecutors from requiring waiver of attorney-client and work-product protections in…

Jul 26, 2007 2:29 PM CDT

N.Y. Lawyer Sentenced

A New York corporate lawyer has been sentenced to 33 months in prison for his role in an insider trading scheme. Amir Rosenthal was sentenced in New York federal court on Friday, according to Dow Jones Newswires. He was a former associate at Thacher Proffitt & Wood, the New York…

Jul 24, 2007 1:50 PM CDT

Japan Changing Corporate Rules

A two-year sentence for a Japanese fund manager who traded on inside information shows Japan’s growing resolve to police its markets. Yoshiaki Murakami received a two-year prison sentence for buying shares in Nippon Broadcasting System Inc. based on knowledge a suitor planned to acquire the company, the Wall Street Journal…

Jul 19, 2007 4:40 PM CDT

Prosecutors Feel Pressure in Wake of KPMG Ruling

Federal prosecutors are facing increased pressure to preserve legal protections for corporations and employees accused of misconduct. The most recent impetus is a judge’s decision to dismiss charges against 13 KPMG employees because the government pressured the company to cut off their legal fees. ABAJournal.com wrote about the decision on…

Jul 18, 2007 3:57 PM CDT