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White Collar
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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.
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October 25, 2024
Dental Exec Flees Ahead Of Possible 7-Year Fraud Sentence
An arrest warrant was issued Friday for the former CEO of a dental device company who pled guilty to defrauding investors out of $10.7 million after he did not show up for his sentencing hearing, where Washington federal prosecutors were asking for seven years in prison.
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October 25, 2024
Feds Seek 6½ Years For Ex-Takeda Worker Over Invoice Fraud
Federal prosecutors in Boston want a former senior Takeda Pharmaceutical Co. employee jailed for 6½ years for the complex scam she pulled off with her boyfriend that raked in millions of dollars through fake invoices, according to a Friday filing.
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October 25, 2024
Va. Man Gets 7½ Years For $15M Gov't Contract Investor Scam
A Virginia man was sentenced Friday to over seven years in prison for defrauding dozens of investors out of $15 million by misleading them into believing that his company had millions of dollars in contracts with federal and state government agencies.
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October 25, 2024
High Court Bar's Future: Mitchell Law's Jonathan F. Mitchell
The pantheon of U.S. solicitors general doesn't include many lawyers who've openly challenged the U.S. Supreme Court's authority or sought to undermine its landmark precedents. But there aren't many lawyers like Jonathan F. Mitchell, a crusading conservative who rescued former President Donald Trump's reelection run — and in the process positioned himself to become the government's top oral advocate.
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October 25, 2024
Ga. Woman Gets 12 Years For $30M COVID Fraud Scheme
A Georgia woman was sentenced to 12 years in prison Thursday for her role in filing more than 5,000 fraudulent COVID-19 unemployment insurance claims with the Georgia Department of Labor, which resulted in at least $30 million in stolen benefits.
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October 25, 2024
Ex-Abercrombie CEO Pleads Not Guilty, Gets $10M Home Bail
Former Abercrombie & Fitch CEO Michael Jeffries pled not guilty on Friday to charges of operating a sex trafficking and prostitution ring that preyed on male models, and was released to home confinement on a $10 million bond.
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October 25, 2024
Heinz Charity Ends Embezzlement Suit Against Ex-Adviser
The Pittsburgh-based Heinz Endowments has dropped a federal lawsuit accusing a former technology adviser of steering nearly $1 million of work to a sham company, according to court filings.
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October 25, 2024
Election Records Law Needs Update, Mich. Justice Says
The Michigan Supreme Court declined on Friday to revive criminal charges against an election worker who downloaded a copy of a voter list onto a personal thumb drive, prompting one justice to argue the law he was cleared of violating is out of touch in the digital age.
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October 25, 2024
Pharmacy Must Pay $39.2M In Conn. Kickback Case
A defunct compounding pharmacy must pay $39.2 million in damages and penalties for its role in a kickback scheme that made illegal payments to Connecticut state employees and retirees, a state court judge ruled Friday while letting the company's proprietor off the hook.
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October 25, 2024
'Magician' Tax Preparer Close To Plea Deal In $100M Case
A New York City-based tax preparer who earned the nickname "the magician," allegedly making $15 million while fraudulently depriving the IRS of $100 million, is in "fruitful" plea talks with prosecutors, a Manhattan federal judge heard Friday.
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October 25, 2024
Woman Accused Of Threatening To Kill Judge Kacsmaryk
Prosecutors have indicted a woman who allegedly threatened death on a Texas federal judge a week after he blocked federal approval of the abortion drug mifepristone, saying the woman sent communications promising murder and assault around April 2023, according to an unsealed indictment.
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October 25, 2024
Trump Co-Defendants Stuck In Ga. State Court, 11th Circ. Says
The Eleventh Circuit on Thursday rejected attempts from four co-defendants of former President Donald Trump to have their Georgia election interference cases moved from state to federal court.
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October 25, 2024
Ga. Atty Can't Beat Contempt Charge Over Trial Tardiness
The Georgia Court of Appeals on Friday rejected an attorney's argument that his due process rights were violated when he was found in contempt, finding that his tardiness to a trial — where the judge sent the jury home due to the absence of the lawyer and his client — was direct contempt.
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October 25, 2024
IRS Agents To Appeal Exclusion From Biden Tax Privacy Case
The IRS agents accused of improperly revealing Hunter Biden's tax return information in his privacy lawsuit against the U.S. government told a D.C. federal court Friday that they're planning to challenge a decision preventing them from personally intervening in the case.
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October 25, 2024
Baldwin 'Rust' Judge Rejects State's Bid To Revive Case
A New Mexico judge declined to reconsider a decision throwing out the "Rust" movie shooting case against actor-producer Alec Baldwin based on prosecutorial misconduct, according to an order released Friday.
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October 25, 2024
Adams Rips Feds, Calling Explanation For Leaks 'Far-Fetched'
Attorneys for New York City Mayor Eric Adams on Friday renewed their claims that the prosecutors handling his bribery and corruption case leaked secret grand jury information to the press, arguing that the alternative explanation that either Adams or his co-defendants made the leaks was a "far-fetched claim."
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October 25, 2024
Conn. Justices Will Hear Ex-Dem Chief's Ballot Fraud Appeal
The Connecticut Supreme Court has agreed to review a lower court's refusal to let former Stamford Democratic Party chair John Mallozzi find a handwriting expert to counter testimony during criminal fraud proceedings that he had forged signatures on phony ballots in a 2015 municipal election.
Expert Analysis
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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.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.