White Collar Crime

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

Attorney-Client Privilege Bill Praised By ABA Prez

The president of the ABA is backing legislation that would bar prosecutors from pressuring companies to waive attorney-client privilege and cut off employees’ legal fees. U.S. Rep. Bobby Scott, D-Va., introduced the bill in the House last week, Corporate Counsel reports. It is co-sponsored by Randy Forbes, R-Va. The bill…

Jul 18, 2007 12:31 PM CDT

Ex-Mayor Indicted

The former mayor of Newark, N.J., has been indicted on charges he used city credit cards to pay for more than $58,000 in personal expenses and sold city land to a friend for less than its value. Prosecutors claim Sharpe James used the cards for liquor, movies, meals and travel,…

Jul 13, 2007 7:11 PM CDT

Media Mogul Convicted of Mail Fraud

Updated: A federal jury has convicted media mogul Conrad Black of mail fraud for diverting money from Hollinger International Inc., the Associated Press reports. He faces a maximum penalty of 35 years in prison and a $1 million fine. Black and three co-defendants were each found guilty of three counts…

Jul 13, 2007 6:59 PM CDT

‘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