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White Collar
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November 20, 2024
DEA Accused Of Colluding With Reform Foes In Pot Row
Cannabis reform advocates have alleged that the Drug Enforcement Administration "stacked the deck" by colluding with anti-legalization interests and giving them improper opportunities to participate in upcoming hearings on a proposal to loosen federal restrictions on the drug.
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November 20, 2024
Cross-Border Sales Were Unlawful Monopoly, Feds Say
Prosecutors have urged a Texas federal judge to deny a dismissal bid from two people accused of using violence to monopolize cross-border sales of used cars, saying the individuals were not operating the lawful clerical service they claimed to be running.
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November 20, 2024
Wells Fargo Must Turn Over E-Docs In TelexFree Litigation
A Massachusetts magistrate judge on Wednesday ordered Wells Fargo Advisors LLC to hand over electronic files maintained by a compliance manager who investigated potential misconduct by an employee handling accounts of TelexFree associates under investigation in a $3 billion Ponzi scheme.
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November 20, 2024
Insurance Mogul Seeks Transfer To Fla. Halfway House
A billionaire businessman embroiled in a host of criminal and civil suits centered on his crumbling insurance empire wants to relocate to a halfway house in Florida as he awaits sentencing on federal bribery charges, saying restrictions at the county jail have hamstrung his ability to talk to his defense attorneys.
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November 20, 2024
Fla. Tax Preparer Gets 4 Years For Tax Fraud Scheme
A barred Florida tax preparer was sentenced to four years in prison for falsifying returns to trigger inflated refunds for participants in a three-year tax fraud scheme called the "note program," the U.S. Department of Justice said Wednesday.
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November 20, 2024
Feds Want 1 Year In Prison For Accountant Who Hid $1.4M
An accountant who hid $1.4 million from the IRS should be sentenced to at least a year in prison despite his stated mental health issues, the government told a Connecticut federal court, saying he seemed driven at least partly by greed and thought he wouldn't get caught.
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November 20, 2024
Trump Seeks Dismissal Of Central Park Five Defamation Suit
President-elect Donald J. Trump has told a Pennsylvania federal judge that a lawsuit brought by the Central Park Five should be dismissed, calling their allegations that he defamed them with comments about their criminal case "meritless" and saying his statements are protected as public expression under the state's anti-SLAPP statute.
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November 20, 2024
Irish Social Democrats Run On Wealth Tax For Millionaires
Ireland's Social Democrats are campaigning for this month's general election on a 0.5% tax on individuals' assets over €1 million ($1.1 million) — excluding homes, family businesses, art and pensions — and 1% for assets over €2 million, according to its manifesto.
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November 20, 2024
Girardi Pushes For New Trial Over Competency Claims
Counsel for Tom Girardi told a federal judge the disbarred attorney is plainly mentally incompetent and deserves a new trial over charges he defrauded clients of $15 million worth of settlement money.
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November 20, 2024
NJ Power Broker, Attys Demand Wiretap Docs In RICO Case
George E. Norcross III, a politically influential insurance executive in New Jersey, and others accused alongside him of a massive racketeering scheme demanded Wednesday that state prosecutors turn over complete wiretap application information dating back to 2016, arguing that those details form the core of the state's case against them.
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November 20, 2024
Archegos Founder Gets 18 Years For Massive Market Fraud
Bill Hwang, the founder of collapsed hedge fund Archegos, was sentenced Wednesday to 18 years in prison after he was convicted of lying to banks in order to secure billions of dollars in loans used to manipulate the market.
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November 20, 2024
Trump Wants 'Immediate Dismissal' Of NY Hush Money Case
President-elect Donald Trump's legal team told the New York judge who presided over his hush money trial that his conviction should be thrown out due to his "overwhelming victory" at the polls, according to a filing released Wednesday.
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November 20, 2024
Bankman-Fried Tech Deputy Who Parsed Code Avoids Prison
A Manhattan federal judge allowed tech expert Zixiao "Gary" Wang to avoid jail Wednesday for his role in the $11 billion FTX fraud, crediting his effort to detail programming "back doors" that enabled Sam Bankman-Fried to loot the bankrupt crypto exchange.
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November 19, 2024
Pfizer Unit Can't Get $75M Left In Insider Trading Deal Fund
A New York federal judge Tuesday agreed with the U.S. Securities and Exchange Commission that roughly $75.2 million leftover in settlement funds should be transferred to the U.S. Treasury — not a Pfizer subsidiary — now that distribution of the $602 million insider trading deal has concluded.
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November 19, 2024
Ex-OpenSea Staffer Says Insider Trading Verdict Must Fall
A former OpenSea manager accused of insider trading from digital tokens sold on his employer's platform urged the Second Circuit Tuesday to overturn his conviction, saying his ideas about what to feature on his company's website cannot be construed as property.
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November 19, 2024
11th Circ. Weighs Whether Tornado Cash Sanctions Overreach
An Eleventh Circuit panel on Tuesday dove deep into the mechanisms of cryptocurrency mixing service Tornado Cash as the judges weighed whether government sanctions intended to curb illicit finance on the protocol are permitted under the law.
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November 19, 2024
Ex-Fed Examiner Cops To Insider Trading, Settles With SEC
A former senior banking supervisor with the Federal Reserve Bank of Richmond pled guilty Tuesday in Virginia federal court to insider trading, the same day he resolved the U.S. Securities and Exchange Commission's claims accusing him of inappropriately trading in shares of New York Community Bancorp and Capital One Financial Corp.
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November 19, 2024
Yoga Teacher Gets 7½ Years For Defrauding Mentally Ill Doctor
A yoga instructor who helped defraud $2.7 million from a mentally ill doctor by moving into his Malibu home and feeding him psychedelic drugs was sentenced to 90 months in prison by a California federal judge Tuesday, more than twice the time recommended by prosecutors.
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November 19, 2024
SEC's $196M Win Revived After Judge Fixes 'Scrivener's Error'
A Florida federal judge has granted a $196 million judgment against a group of fraudsters to the U.S. Securities and Exchange Commission after fixing what he called a "scrivener's error" in the original order that caused the Eleventh Circuit to overturn a part of the award in September.
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November 19, 2024
AI School Tech Founder Stole $10M From Investors, DOJ Says
The founder of AllHere Education Inc., a startup venture that sold artificial intelligence-powered chatbots to schools, is charged with fleecing investors out of nearly $10 million by lying about the company's revenue and using some of the money to pay for her wedding and a house, New York federal prosecutors announced Tuesday.
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November 19, 2024
Ex-US Attorneys See Risks In Working Under Gaetz
Some prospective U.S. attorneys may think twice about joining the U.S. Department of Justice if Matt Gaetz ends up in charge, veterans of the position told Law360.
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November 19, 2024
Parties Voluntarily Toss Sewer Expansion Coverage Row
An Indiana federal court dismissed a lawsuit Tuesday from a utility company's insurer seeking to avoid covering a $5 million consent judgment and a $14 million damages claim from underlying litigation concerning a sewer expansion plan, after it was told in September the parties reached a global settlement in principle.
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November 19, 2024
'Survivor' Winner Needs To Pay $3.3M Tax Bill, Judge Advises
The winner of the "Survivor" television series who evaded taxes on his $1 million in prize money and served time in prison should pay $3.3 million of his civil liabilities, including fraud penalties, a federal magistrate judge said.
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November 19, 2024
Feds Ordered To Delete Combs Notes From Raid, For Now
A Manhattan federal judge directed prosecutors Tuesday to temporarily delete potentially privileged notes recovered from the jail cell of Sean "Diddy" Combs pending briefing, after lawyers for the hip-hop mogul called the seizure "outrageous."
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November 19, 2024
Ballard Spahr Brings On Former Federal Prosecutor In LA
Ballard Spahr LLP is expanding its consumer finance services team, announcing Tuesday that a former assistant U.S. attorney is joining its Los Angeles office as of counsel.
Expert Analysis
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E-Discovery Quarterly: Recent Rulings On Metadata
Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.
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Parsing SEC's Emerging Trend Of Section 204A Enforcement
The U.S. Securities and Exchange Commission recently settled with Sound Point Capital Management for violating Section 204A of the Investment Advisers Act, adding to a slew of charges against investment advisers that allegedly failed to safeguard material nonpublic information, say attorneys at Cozen O'Connor.
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2nd Circ. Maxwell Ruling Adds To Confusion Over NPA Reach
The Second Circuit’s recent decision upholding Ghislaine Maxwell’s conviction made an analytical leap in applying plea agreement precedent to a nonprosecution agreement, compounding a circuit split and providing lessons for defense counsel, say attorneys at Kropf Moseley.
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What FTC's 'Bitcoin ATM' Report Tells Us About Crypto Scams
The Federal Trade Commission's recent insights into bitcoin ATM scams highlight the technical evolution of fraudsters, the application of old scams to new technology, and the persistent financial impact on victims, say attorneys at DLA Piper.
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Recent Developments In Insurance Coverage For FCA Claims
As the U.S. Department of Justice continues its vigorous False Claims Act enforcement, companies looking to their insurers to help defray the costs of an investigation or settlement should note recent decisions on which types of policies cover FCA claims, which policy periods apply and which portions of FCA-related losses are covered, say attorneys at Covington.
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A Look At Grewal's Record-Breaking Legacy After SEC Exit
Gurbir Grewal resigned as director of the U.S. Securities and Exchange Commission's Division of Enforcement last month after more than three years on the job, leaving behind a legacy marked by record numbers of penalties and enforcement actions, as well as mixed results in aggressive lawsuits against major crypto players, say attorneys at Debevoise.
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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Empathy In Mediation Offers A Soft Landing For Disputes
Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.
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Series
Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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Consider The Impact Of Election Stress On Potential Jurors
For at least the next few months, potential jurors may be working through anger and distrust stemming from the presidential election, and trial attorneys will need to assess whether those jurors are able to leave their political concerns at the door, says Ken Broda-Bahm at Persuasion Strategies.
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How Judiciary Can Minimize AI Risks In Secondary Sources
Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.
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3 Steps For Companies To Combat Task Scams
On the rise in the U.S., the task scam — when scammers offer a victim a fake work-from-home job — hurts impersonated businesses by tarnishing their name and brand, but companies have a few ways to fight back against these cons, says Chris Wlach at Huge.
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Perspectives
Protecting Survivor Privacy In High-Profile Sex Assault Cases
Multiple civil lawsuits filed against Sean "Diddy" Combs, with claims ranging from sexual assault and trafficking to violent physical beatings, provide important lessons for attorneys to take proactive measures to protect the survivor's anonymity and privacy, says Andrea Lewis at Searcy Denney.
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How Attorneys Can Break Free From Career Enmeshment
Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.
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A Look At Insurance Coverage For Government Investigations
Attorneys at Jenner & Block discuss the quirks and potential pitfalls of insurance coverage for government claims and investigations, including those likely to arise from the U.S. Department of Justice's recently announced whistleblower program.