2nd Circuit Court

Unpaid Intern Sues Harper’s Bazaar Publisher for Wages and Overtime, Seeks Class Action Status

Updated: Labor lawyers have been sounding a warning in recent years that employers could be violating the law by hiring unpaid interns to do work that ordinarily would be performed by a paid employee. And now a lawsuit seeks to put that argument to the test, contending that a 28-year-woman…

Feb 3, 2012 6:23 PM CST

Full 2nd Circuit OKs Hefty Sanction for 2 Lawyers re ‘Cynical Delusion and Fantasy’ 9/11 Case

Local counsel beat the rap. But in an en banc ruling today, the New York City-based 2nd U.S. Circuit Court of Appeals agreed that that two other lawyers involved in the filing of a 9/11 case described by a U.S. District Court judge as a “cynical delusion and fantasy” should…

Feb 2, 2012 10:24 PM CST

Disbarred NY Lawyer, 82, Gets 45 Days for Hiding $26M in Swiss Bank

A disbarred New York lawyer was sentenced today to only 45 days for tax evasion by a federal judge in Manhattan, apparently because of his advanced age and failing health. Kenneth Heller, 82, had faced a maximum 15 years in prison, and sentencing guidelines called for 30 to 37 months.…

Jan 20, 2012 7:09 PM CST

Former BigLaw Partner Gets 2 Years in ‘Greek Tragedy’ Tax Evasion Case

John J. O’Brien told a federal judge in Manhattan today that he never expected to get away with failing to pay $2.5 million in tax on $10.8 million in income he earned as a partner at Sullivan & Cromwell. “I never believed for one minute that I was going to…

Jan 11, 2012 7:23 PM CST

2nd Circuit Axes Refco Lawyer’s Conviction in $2.4B Fraud Case, Says Judge Erred re Juror Note

Convicted by a federal jury in New York in 2009 and sentenced to seven years in a $2.4 billion corporate securities fraud case, a former Mayer Brown partner today won a vacation of his conviction. Because Joseph Collins was denied his constitutional right to be present at every stage of…

Jan 9, 2012 8:21 PM CST

SEC Appeals Judge’s Rejection of Citigroup Deal, Cites Investor Interest in Immediate Benefit

The Securities and Exchange Commission is appealing a federal judge’s rejection of a $285 million settlement with Citigroup. Robert Khuzami, who heads the SEC’s enforcement division, announced the appeal on Thursday, report the National Law Journal and the Wall Street Journal Law Blog. In a statement, Khuzami said the rejection…

Dec 16, 2011 4:06 PM CST

Federal Magistrate Judge Accuses 2 Prominent Lawyers of Ethical Lapses During ‘Festival of Perjury’

A federal judge has accused two prominent New York lawyers of ethical lapses during what he had previously described as a “festival of perjury” related to a convicted criminal’s appeal in a 1993 double-murder case, reports the Utica Observer-Dispatch. At issue in the appeal, which seeks a new trial for…

Nov 30, 2011 1:00 AM CST

Baum Foreclosure Firm to Close After Fannie and Freddie Pull Files, Plans Mass Layoffs

Bad judgment about Halloween costumes worn last year by some employees of the Steven J. Baum law firm has come back to haunt New York’s largest mortgage foreclosure practice. After recent news reports that Fannie Mae and Freddie Mac (as well as some major loan servicers) have pulled their business…

Nov 21, 2011 6:40 PM CST

Hearing OK’d re Convicted Tax Lawyer’s Claim That Juror’s Hidden Legal Past Prevented Fair Trial

A federal judge in Manhattan today agreed to hold a hearing on a convicted tax lawyer’s claim that he was denied a fair trial because one of the jurors failed to disclose crucial information about her background. Catherine Conrad allegedly failed to tell the court that she was a suspended…

Nov 15, 2011 7:22 PM CST

Law Firm Says It Didn’t Ban Client’s Service Dog, Blames Partner Allergy, Worker Phobia for Issues

An upstate New York law firm sued by a former personal injury client whose service dog was refused entry blames a partner’s allergy and a worker’s phobia for issues with the animal, but says it tried to make amends and subsequently invited the German shepherd into its offices. Attorney James…

Nov 11, 2011 7:28 PM CST

Feds Charge 7, Shut Down 100 Rogue Servers, Allege Massive ‘Click Hijack’ Malware Scheme

Officials say a massive “click hijack” malware scheme affecting 4 million computers and 500,000 individuals, businesses and even government agencies in 100 countries including the United States has been shut down by U.S. authorities working cooperatively with Estonia. Trend Micro’s Malware Blog is calling the raid the biggest cybercriminal takedown…

Nov 10, 2011 12:52 AM CST

Hedge Fund Co-Founder Rajaratnam Told to Pay Record $92.8M SEC Fine Within 14 Days

Already sentenced to a record 11 years, fined $10 million and ordered to forfeit another $53.8 million after being convicted in an insider-trading case, Galleon Group co-founder Raj Rajaratnam made legal history again today. He was fined $92.8 million by the U.S. Securities and Exchange Commission, the highest civil penalty…

Nov 8, 2011 11:58 PM CST

Feds Sue Personal Injury Law Firm, Say It Banned Disabled Client’s Service Dog From Its Offices

A federal prosecutor has sued an upstate New York personal injury law firm, contending that it banned a client from bringing her service dog into its offices. A lawsuit filed in White Plains today by the U.S. Attorney’s Office for the Southern District of New York says Newburgh-based Larkin Axelrod…

Nov 8, 2011 9:24 PM CST

Hired to Help Worker Seek Commissions, Tiny Law Firm Winds Up in Monster Case Seeking $2.5B

Retained to represent a former employee of a mortgage brokerage after he unsuccessfully sued over allegedly unpaid commissions, a tiny Milwaukee, Wis., law firm wound up with a monster case. Researching Allied Home Mortgage Capital Corp. for Peter Belli’s appeal, the Mahany & Ertl firm discovered Allied had the highest…

Nov 4, 2011 12:21 PM CDT

NY Closing Attorney Is Convicted of Bank Fraud and Money Laundering

A New York real estate lawyer has been convicted of bank fraud and money laundering for closing purchases in pricey Westchester County in which mortgages were allegedly obtained by the buyers based on phony documentation. However, Louis Cherico, 70, was acquitted by a federal jury Tuesday of obstruction of justice…

Nov 3, 2011 5:43 PM CDT