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White Collar
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October 29, 2024
Oil Trader's Brother Gets Probation, Fine For Brazilian Bribes
An ailing Connecticut man who admitted to helping his brother pull off a scheme to bribe officials at Brazil's state-owned oil company has been sentenced to probation, a fine and asset forfeiture, federal court records showed Tuesday.
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October 29, 2024
NJ Judge Exits Disbarred Atty's Suits Over Ties To State Bar
A disbarred New Jersey civil rights attorney persuaded a New Jersey federal judge to recuse herself from cases he has pending before her due to the "slim, but conceivable chance" of an appearance of impropriety stemming in part from her time as president of the New Jersey State Bar Association.
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October 29, 2024
2nd Circ. Says FBI Agents Immune From Suit Over No-Fly List
The Second Circuit on Tuesday upheld a lower court's decision finding immunity for FBI agents who were accused of placing four Muslim men on a no-fly database after they declined to become informants.
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October 29, 2024
Ex-Jones Day Litigator Joins Honigman In Detroit
Honigman LLP has brought on a former Jones Day business and tort litigation associate as a business litigation practice group partner.
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October 29, 2024
Navy Reservist Gets 30 Months For Visa Letter Bribe Scheme
A Navy reserve commander was sentenced to 30 months in prison after being convicted of taking bribes from Afghan nationals in exchange for recommendation letters for visa applications.
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October 28, 2024
Crypto Co. Operator Faces Money Laundering, Tax Charges
Federal prosecutors accused an Indiana property owner of laundering the proceeds of a crypto money transmitter — AurumXchange — that they say should have been licensed and of failing to file tax returns despite realizing six figure gains from investing the proceeds.
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October 28, 2024
Ontrak Founder Can't Wipe Novel Insider Trading Verdict
A California federal judge has upheld Ontrak founder Terren Peizer's first-of-its-kind insider trading conviction, holding that jurors had "more than enough evidence" to determine he based a $20 million share sale on nonpublic information that the health tech company was about to lose its biggest client.
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October 28, 2024
Ex-Atty Charged With $9.2M Commodities Ponzi Scheme
Federal prosecutors have charged a former New Orleans-based attorney with operating a Ponzi scheme, saying he promised dozens of individuals that he would invest their $9.2 million in low-risk commodities when he was really using the funds to gamble and to pay off personal expenses.
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October 28, 2024
Ex-'Bob's Burgers' Actor Gets 1 Year And 1 Day For Jan. 6 Riot
A D.C. federal judge on Monday sentenced former "Bob's Burgers" actor Jay James Johnston to a year and a day in prison after he pled guilty to a single felony count of obstructing officers during civil disorder for his role in the Jan. 6, 2021, insurrection at the U.S. Capitol.
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October 28, 2024
Investment Firm's Head Indicted For Alleged Ponzi Scheme
Federal prosecutors have unsealed an indictment accusing a Utah man of carrying out a Ponzi scheme to embezzle millions of dollars from private investors who believed they were contributing to restaurant ventures.
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October 28, 2024
Leader Of Bankers' Group Calls For Anti-Fraud Watchdogs
The head of the nation's largest banking trade group on Monday called on Congress and the White House to establish a federal office of scam and fraud prevention to counteract the rising tide of fraud costing the U.S. tens of billions annually.
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October 28, 2024
Creditors Get Ponzi Finding In Wash. Bankruptcy Trial
A Washington state bankruptcy judge has found that real estate investment firm iCap Enterprises Inc. had operated as a Ponzi scheme, opening up the door for creditors to bring lawsuits and deduct some part of the losses from their taxes, attorneys for the official committee of iCap's unsecured creditors said Monday.
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October 28, 2024
Boston Pizzeria Owner Gets Over 8 Years In Forced Labor Row
A Massachusetts federal judge sentenced the owner of a Boston pizzeria to 8½ years in prison after a jury in June convicted him for using physical abuse and threats of violence and deportation to control hourly foreign workers who lacked work authorization.
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October 28, 2024
Columbus Zoo's Ex-Marketing Head Gets 5 Years Behind Bars
Ohio Attorney General Dave Yost announced Monday that the former head of marketing at the Columbus Zoo and Aquarium who pled guilty to his part in a $2.3 million fraud scheme involving public funds was sentenced to five years in prison.
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October 28, 2024
Feds Defend DEI Monitor Provision In Boeing Plea Deal
The U.S. Department of Justice said it will consider diversity and inclusion when it picks an independent compliance monitor for The Boeing Co. under a proposed plea agreement in the company's criminal conspiracy case, reassuring a Texas federal judge that the selection process will be rigorous.
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October 28, 2024
Metals Co. Owner Convicted Of Tax Fraud In $58M Theft Case
A Delaware federal jury convicted the owner of a gold and silver depository of tax fraud and other crimes tied to the government's accusations that he stole $58 million in precious metals from his customers, according to court filings.
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October 28, 2024
Mass. Court's Wiretap Ruling May Be Bad Omen For Plaintiffs
A ruling by the Massachusetts high court rejecting wiretap claims over website operators' use of tracking software like Meta Pixel and Google Analytics shows the steep climb plaintiffs may continue to face as they try to apply older laws to modern technologies, experts told Law360.
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October 28, 2024
Ozy Media CEO Wants Conviction Nixed Over Judge's Assets
The New York federal judge who presided over the fraud and identity theft trial of former Ozy Media CEO Carlos Watson should be disqualified from the case because he failed to disclose that he had investments in four of the companies victimized by Watson, according to the onetime executive, who is trying to get his conviction overturned.
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October 28, 2024
Report Says To Allow Bulk Of Software Investor Suit
A U.S. magistrate judge has recommended against dismissing the bulk of an investor's suit alleging Decentral Life Inc. and a group of its licensees, including a cannabis social media site, misled him into investing more than $1.7 million by boasting bogus user counts.
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October 28, 2024
Cleary Adds Northern Calif. Deputy Criminal Chief As Partner
The deputy chief of the criminal division of the U.S. Attorney's Office for the Northern District of California has joined Cleary Gottlieb Steen & Hamilton LLP's Bay Area office as a partner in the Americas litigation practice, the firm said Monday.
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October 25, 2024
Chicago Rapper Lil Durk Accused Of Ordering Rival's Murder
Grammy Award-winning rapper Lil Durk was charged with orchestrating the attempted murder of a rival rapper, which led to a shooting near a Los Angeles shopping mall that left one person dead, the U.S. Department of Justice announced Friday.
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October 25, 2024
Crypto Rapidly Transforming IRS Criminal Cases, Agent Says
Cryptocurrency is altering the size of many criminal cases that federal law enforcement agencies are handling, an Internal Revenue Service criminal investigator told the UCLA Tax Controversy Conference, commenting that over the past three years the agency broke its record for asset seizures three times.
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October 25, 2024
9th Circ. Backs 7-Year Sentence Over Chip Exports To China
The Ninth Circuit on Friday upheld the seven-year prison sentence imposed on a former University of California, Los Angeles, electrical engineering professor convicted of illegally exporting high-powered semiconductor chips to China, saying the district court did not err in holding that the conduct amounted to an evasion of national security controls.
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October 25, 2024
Shoplifter's Probation Pot Ban Upheld By Mich. Appeals Court
A Michigan appeals court on Thursday ruled that, notwithstanding the state's legalization of recreational cannabis, a woman who pled guilty to shoplifting violated the terms of her probation by smoking marijuana while it remains federally illegal.
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October 25, 2024
FTX Reaches $228M Deal With Crypto Co. Bybit
The FTX bankruptcy estate reached a deal worth about $228 million to resolve its lawsuit against cryptocurrency exchange Bybit and the firm's investment arm, Mirana Corp., that alleged they unfairly jumped the line to withdraw funds during FTX's meltdown in late 2022 and held the estate's own funds hostage.
Expert Analysis
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Playing The Odds: Probing Sports Betting Allegations
With gambling-related controversies becoming a mainstay of the athletics landscape, it's essential for in-house and outside counsel to stay abreast of best practices for conducting sports betting investigations, say attorneys at Steptoe.
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Opinion
Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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What FTX Case Taught Us About Digital Asset Recoverability
FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.
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'Outsourcing' Ruling, 5 Years On: A Warning, Not A Watershed
A New York federal court’s 2019 ruling in U.S. v. Connolly, holding that the government improperly outsourced an investigation to Deutsche Bank, has not undercut corporate cooperation incentives as feared — but companies should not completely ignore the lessons of the case, say Temidayo Aganga-Williams and Anna Nabutovsky at Selendy Gay.
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Series
Serving In The National Guard Makes Me A Better Lawyer
My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.
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Opinion
Post-Chevron, Good Riddance To The Sentencing Guidelines
The U.S. Supreme Court’s overturning of the Chevron doctrine may signal the end of the U.S. sentencing guidelines, which is good news given that they have accomplished the opposite of Congress’ original intent to bring certainty, proportionality and uniformity to sentencing, say attorneys Mark Allenbaugh, Doug Passon and Alan Ellis.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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A Timeline Of Antisemitism Legislation And What It Means
What began as hearings in the House of Representatives Committee on Education and the Workforce has expanded to a House-wide effort to combat antisemitism and related issues, with wide-ranging implications for education, finance and nonprofit entities, say attorneys at Morgan Lewis.
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Criminal Enforcement Considerations For Gov't Contractors
Government contractors increasingly exposed to criminal liability risks should establish programs that enable detection and remediation of employee misconduct, consider voluntary disclosure, and be aware of the potentially disastrous consequences of failing to make a mandatory disclosure where the government concludes it was required, say attorneys at Crowell & Moring.
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Opinion
States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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FBI Raid Signals Growing Criminal Enforcement Of Algorithms
The U.S. Department of Justice Antitrust Division's increased willingness to pursue the use of algorithmic pricing as a potential criminal violation means that companies need to understand the software solutions they employ and stay abreast of antitrust best practices when contracting with providers, say attorneys at Rule Garza.
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How Attorneys Can Reduce Bad Behavior At Deposition
To minimize unprofessional behavior by opposing counsel and witnesses, and take charge of the room at deposition, attorneys should lay out some key ground rules at the outset — and be sure to model good behavior themselves, says John Farrell at Fish & Richardson.
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Best Text Practices In Light Of Terraform's $4.5B Fraud Deal
Text messages were extremely important in a recent civil trial against Terraform Labs, leading to a $4.5 billion settlement, so litigants in securities fraud cases need to have robust mobile data policies that address the content and retention of messages, and the obligations of employees to allow for collection, say Josh Sohn and Alicia Clausen at Crowell & Moring.
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Tricky Venue Issues Persist In Fortenberry Prosecution Redo
Former Rep. Jeff Fortenberry was recently indicted for a second time after the Ninth Circuit tossed his previous conviction for improper venue, but the case, now pending in the District of Columbia, continues to illustrate the complexities of proper venue in "false statement scheme" prosecutions, says Kevin Coleman at Covington.
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Series
Solving Puzzles Makes Me A Better Lawyer
Tackling daily puzzles — like Wordle, KenKen and Connections — has bolstered my intellectual property litigation practice by helping me to exercise different mental skills, acknowledge minor but important details, and build and reinforce good habits, says Roy Wepner at Kaplan Breyer.