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White Collar
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January 15, 2025
SEC Dings Pharma Co., Ex-CFO Over Prescription Scheme
The U.S. Securities and Exchange Commission announced it has settled claims against bankrupt DMK Pharmaceuticals Corp. and its ex-chief financial officer over their alleged role in a fraudulent scheme to generate revenues using illegal prescriptions for horse medications.
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January 15, 2025
Crypto Co. Kraken's Legal Chief Says He's Stepping Down
The legal head of Kraken announced Wednesday that he is stepping down as chief legal officer and stepping into a senior adviser role that will see him build a global advisory council at the crypto exchange.
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January 15, 2025
Hino Motors Inks $1.6B Deal To End Emissions Fraud Claims
Toyota unit Hino Motors Ltd. will pay approximately $1.6 billion in criminal and civil penalties to close out claims it illegally manipulated emissions and fuel-economy test results for more than 100,000 diesel vehicles sold in the U.S., the Justice Department announced Wednesday.
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January 15, 2025
Mich. US Atty Talks Rooting Out Public Corruption 'Poison'
U.S. Attorney Mark Totten said Wednesday he's proud of his office's work prosecuting Michigan's former speaker for taking bribes from players in the state's nascent marijuana industry, calling the corruption crackdown vital to maintaining a healthy democracy, as he reflected on his time as the top federal prosecutor for the Western District of Michigan.
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January 15, 2025
Free Speech Groups Push State Law In Trump Defamation Suit
Several free speech advocacy groups and the American Civil Liberties Union of Pennsylvania urged a federal judge Wednesday to apply the Keystone State's anti-SLAPP law in a defamation suit brought against President-elect Donald Trump by the so-called Central Park Five but took neither party's side on dismissal.
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January 15, 2025
Madigan Testimony Requires Separate Trials, Ex-Friend Says
Michael Madigan's former longtime friend and political ally on Tuesday renewed his request to be separated from the ex-Illinois House speaker as they defend criminal racketeering and bribery charges at trial, arguing that Madigan's testimony amounts to an attack against the former lobbyist that is impossible for him to fend off.
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January 15, 2025
Stacey Abrams' Group Fined $300K For Aiding Ga. Gov. Run
A Georgia voting rights group founded by Democrat Stacey Abrams agreed to pay a record $300,000 fine Wednesday after admitting it illegally funneled millions of dollars to support Abrams' first campaign for governor in 2018.
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January 15, 2025
DOJ Reports $2.9B Haul Under FCA, Largest In 3 Years
Litigation under the False Claims Act generated a little over $2.9 billion in settlements and judgments in the most recent fiscal year, a 5% bump over 2023's total and the most in three years, according to data released Wednesday by the U.S. Department of Justice.
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January 15, 2025
Legislators Say Transparency Act Defies First Amendment
The Corporate Transparency Act is an unnecessary intrusion into the First Amendment rights of Americans, U.S. Sen. Thom Tillis, R-N.C., and 13 House members told the Supreme Court in seeking to maintain an injunction issued in December.
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January 15, 2025
Broker, Traders Charged With $1M Insider Trading Scheme
A securities broker and three traders have been charged in New York federal court for their roles in what prosecutors described as a yearslong, $1 million insider trading scheme that involved tips about upcoming secondary stock offerings, including one by the owner of DVD rental company Redbox, an indictment unsealed Wednesday showed.
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January 15, 2025
Chinese Execs Sent Fentanyl Precursor To NY, Jury Told
A novel fentanyl-trafficking case went to trial in New York federal court on Wednesday, with prosecutors arguing that two Chinese chemical executives inked a multimillion-dollar deal to export the raw materials for the drug to a Manhattan lab in 2023.
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January 15, 2025
7th Circ. Wary Of New Bribery Trial Sought Over FBI Interview
A Seventh Circuit panel appeared skeptical Wednesday of a sweepstakes machine business owner's argument that his roughly five-year bribery sentence should be vacated because his conviction was largely based on audio from an FBI interview that the original jurors shouldn't have been allowed to hear.
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January 15, 2025
Fla. Man Says Gov't Miscalculated Forfeiture In PPP Fraud
A Haitian man currently serving a 50-month prison sentence for concealing a COVID-19 loan fraud scheme from U.S. immigration officials to get citizenship urged the Eleventh Circuit on Wednesday to reverse a forfeiture judgment against him, arguing that the government miscalculated the amount of his ill-gotten gains from the scheme.
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January 15, 2025
NJ Prosecutors Can Shield Certain Docs In Atty Bribe Cases
New Jersey prosecutors won't have to turn over certain documents related to investigations involving potential crimes committed by a tax attorney who was a cooperating witness in a bribery case against three former public officials, a state appeals panel has ruled.
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January 15, 2025
Retired Admiral's Bribery Trial Postponed To May
A D.C. federal judge on Wednesday postponed a bribery trial for a retired Navy admiral accused of steering a government contract to two executives of a New York company, finding the volume of discovery material in the case justified the delay.
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January 15, 2025
Booz Allen Must Pay For Harm Of Tax Info Leaks, Court Told
A proposed class action in Maryland federal court blames IRS contractor Booz Allen Hamilton over the thousands of tax returns that were stolen by an employee who took financial information about President-elect Donald Trump and others while on the job and leaked it to the media.
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January 15, 2025
New Jersey AG Deputy Steps Up To Director In Staff Shake-Up
The deputy director of New Jersey's Division of Criminal Justice will rise to the division's top role later this month when the current director returns to the private sector as part of a staffing shuffle that includes filling the office's chief of staff, Attorney General Matt Platkin said Wednesday.
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January 15, 2025
Judge Warns DOJ: Settle Burger Forfeiture Suit Or Pay Up
A Michigan federal judge on Tuesday expressed frustration with Justice Department officials' delays in resolving a civil forfeiture action over an alleged $11 million healthcare fraud scheme involving money laundered through Big Boy Restaurant, telling federal prosecutors they have until next week to settle the case or pay the chain's recent legal bills.
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January 15, 2025
US Atty For Central Calif. To Resign Before Inauguration
The U.S. attorney for the Central District of California, Martin Estrada, is stepping down at the end of the week, ending an eventful two-year tenure that's seen several high-profile prosecutions in the nation's most populous federal judicial district.
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January 15, 2025
Trump's AG Pick Tries To Assure Congress On Independence
President-elect Donald Trump's nominee for attorney general attempted to assuage uneasiness from Democrats on Wednesday, saying the U.S. Department of Justice will be free of politics and will not go after perceived enemies.
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January 15, 2025
Elusive Cognizant Witness Ready To Testify, Gov't Says
A witness from India whose 2023 absence on the brink of the foreign bribery trial of two former Cognizant Technology Solutions Corp. executives set off a lengthy delay is now willing to testify, federal prosecutors said, despite stating they were under no obligation to respond to defense counsel's concerns.
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January 15, 2025
DHS Wants NM Pot Cos.' Property Seizure Suit Tossed
The U.S. Department of Homeland Security and U.S. Customs and Border Protection are urging a New Mexico federal court to toss claims by eight cannabis companies alleging that federal agents wrongfully seized cannabis, money and property at checkpoints.
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January 15, 2025
BitMEX Fined $100M For 5 Years Of Flouting US Banking Law
A Manhattan federal judge slapped BitMEX with a $100 million fine Wednesday, rejecting its suggestion that $110 million of earlier penalties sufficed to punish the offshore crypto exchange for a five-year course of evading U.S. financial controls as it earned $1.3 billion.
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January 15, 2025
Mass. Atty Charged In $2.5M Embezzlement Schemes
A Massachusetts attorney blamed an addiction to prostitutes and a failed spa investment for his embezzling a total of $2.5 million from a couple and their multiple businesses, according to federal prosecutors.
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January 15, 2025
Western Pennsylvania US Atty Joins Pre-Inauguration Exodus
Pittsburgh-based U.S. Attorney Eric G. Olshan announced Wednesday that he is stepping down in advance of President-elect Donald Trump's inauguration, joining the wave of similar resignations throughout the U.S. Department of Justice in recent weeks.
Expert Analysis
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Series
Being An Opera Singer Made Me A Better Lawyer
My journey from the stage to the courtroom has shown that the skills I honed as an opera singer – punctuality, memorization, creativity and more – have all played a vital role in my success as an attorney, says Gerard D'Emilio at GableGotwals.
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Pros, Cons Of Disclosing Improper Employee Retention Credit
Employers considering the Internal Revenue Service’s second voluntary disclosure program, which allows companies to avoid penalties for erroneously claiming employee retention credits for the 2021 tax year by repaying the credits and naming the tax advisers who encouraged these abusive practices, should carefully weigh the program’s benefits against its potential drawbacks, say attorneys at Winston & Strawn.
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Until Congress Acts, EDNY 'Insider Betting' Case Is Premature
The Eastern District of New York’s novel wire fraud conspiracy indictment in U.S. v. Pham may have prematurely heralded a new era in federal gambling enforcement, but in the absence of an “insider betting” statute, sportsbooks — not prosecutors — should be responsible for enforcing their terms of use, says attorney Jonathan Savella.
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How Law Firms Can Avoid 'Collaboration Drag'
Law firm decision making can be stifled by “collaboration drag” — characterized by too many pointless meetings, too much peer feedback and too little dissent — but a few strategies can help stakeholders improve decision-making processes and build consensus, says Steve Groom at Miles Mediation.
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When The Supreme Court Gives You Lemons, Make Lemonade
Instead of grousing about the U.S. Supreme Court’s recent decisions overturning long-standing precedents, attorneys should look to history for examples of how enterprising legal minds molded difficult decisions to their advantage, and figure out how to work with the cards they’ve been dealt, says Reuben Guttman at Guttman Buschner.
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Philly Project Case Renews Ongoing Fraud Theory Tug-Of-War
In its upcoming term, the U.S. Supreme Court will hear Kousisis v. U.S., a case involving wire fraud convictions related to Philadelphia bridge repair projects, and may once again further rein in prosecutorial attempts to expand theories of fraud beyond core traditional property rights, say Jonathan Halpern and Kyra Rosenzweig at Holland & Knight.
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Opinion
Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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Playing The Odds: Tackling Athlete Gambling Investigations
The rapid rise of sports gambling presents new and unique challenges, so it's important for attorneys to be able to navigate a dynamic web of complex, high-stakes relationships between athletes, the betting public, athletic organizations, sportsbooks and law enforcement — all while under intense public scrutiny, say attorneys at Steptoe.
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Carbon Offset Case A Win For CFTC Enviro Fraud Task Force
An Illinois federal court's decision in Commodity Futures Trading Commission v. Ikkurty — earning the CFTC a sizeable monetary award that will likely incentivize similar enforcement pursuit — shows the impact of the commission's Environmental Fraud Task Force, say attorneys at Steptoe.
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Whistleblowers Must Note 5 Key Differences Of DOJ Program
The U.S. Department of Justice’s recently unveiled whistleblower awards program diverges in key ways from similar programs at other agencies, and individuals must weigh these differences and look first to programs with stronger, proven protections before blowing the whistle, say Stephen Kohn and Geoff Schweller at Kohn Kohn.
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What NFL Draft Picks Have In Common With Lateral Law Hires
Nearly half of law firm lateral hires leave within a few years — a failure rate that is strikingly similar to the performance of NFL quarterbacks drafted in the first round — in part because evaluators focus too heavily on quantifiable metrics and not enough on a prospect's character traits, says Howard Rosenberg at Baretz+Brunelle.
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Open Questions 3 Years After 2nd Circ.'s Fugitive Ruling
The Second Circuit’s 2021 decision in U.S. v. Bescond, holding that a French resident indicted abroad did not meet the legal definition of a fugitive, deepened a circuit split on the fugitive disentitlement doctrine, and courts continue to grapple with the doctrine’s reach and applicability, say attorneys at Lankler Siffert.
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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How DOJ May Change FARA Exemption In Forthcoming Rule
Any day now, the U.S. Department of Justice is expected to issue proposed revisions to the Foreign Agents Registration Act regulations, and signs suggest that it will likely narrow one of FARA's broadest exemptions, which may compound public confusion about the law's requirements, says Murad Hussain at Arnold & Porter.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.