2nd Circuit Court

2 Lawyers Convicted in Witness-Tampering Case, Could Face Life in Prison

After nearly a week of deliberation, a federal jury in Brooklyn, N.Y., today convicted two lawyers in a witness-tampering case that reportedly could put them in prison for life. Robert Simels sat back in his chair at the defense table and looked furious as his associate, Arienne Irving, put her…

Aug 20, 2009 5:11 PM CDT

$65B Madoff Ponzi Scheme May Have Begun As Early as 1984

A gigantic Ponzi scheme orchestrated by Bernard Madoff under the guise of a hedge fund could have gotten its start as early as 1984, reports Newsday. According to in-court testimony Tuesday by right-hand-man Frank DiPascali Jr. as he pleaded guilty to his role in the scheme and a civil filing…

Aug 13, 2009 11:54 PM CDT

Fed’l Judge Casts Cold Eye on Lawyer’s ‘Simply Ridiculous’ Shrimp Claim

When Marc Verzani purchased a 16-ounce shrimp platter at Costco in February, the New York lawyer noticed something seemingly a bit fishy. As further investigation confirmed, the platter—and others like it nationwide—allegedly contained less than one pound of the tasty crustaceans. So Verzani retained an attorney and filed a federal…

Aug 12, 2009 12:03 AM CDT

Madoff Aide Pleads Guilty, Says ‘It Was All Fake,’ Judge Nixes $2.5M Bond Deal

After Frank DiPascali pleaded guilty today to carrying out one of the biggest frauds on Wall Street with the help of unidentified “other people” who put together its fictitious books and investment statements, the plan was for the cooperating witness and longtime aide to convicted $65 billion Ponzi schemer Bernard…

Aug 11, 2009 10:21 PM CDT

Fed’l Judge Balks Again, Further Delays Ruling on SEC’s $33M Pact With BofA

A proposed $33 million settlement by the U.S. Securities and Exchange Commission to resolve allegations that the Bank of America didn’t disclose to investors that it was to pay $3 billion in executive bonuses when acquiring Merrill Lynch & Co. “might be approvable,” a federal judge said at a hearing…

Aug 10, 2009 11:22 PM CDT

‘Garbage’ New York Fair Housing Suit Leads to Landmark Settlement

A lawsuit initially dismissed as “garbage” by officials in the well-to-do New York City suburb of Westchester County has now led to what the New York Times describes as a landmark settlement. Without admitting liability concerning claims that the county misrepresented when obtaining federal funds that it had complied with…

Aug 10, 2009 7:34 PM CDT

Retired N.Y. Judge Gets 18 Months for Bringing Prostitutes to Fraternal Meeting

After pleading guilty in federal court last year to transporting prostitutes across state lines to a meeting of a national men’s fraternal club of which he is a member, a retired New York Supreme Court judge was sentenced today to an 18-month prison term. Referring to Ronald Tills, 74, as…

Aug 7, 2009 10:16 PM CDT

Law Firm Won Tax Case, But Says Ex-KPMG Partner Still Owes $1.3M Bill

A law firm is suing a former KPMG partner, saying that he hasn’t paid $1.3 million of the legal bill that Kostelanetz & Fink racked up while successfully defending him in a high-profile criminal tax case concerning illegal tax shelters. Although Richard Smith obtained a settlement from KPMG that was…

Aug 7, 2009 6:04 PM CDT

GE Pays SEC $50M, Professionals $200M to Settle Financial Statements Complaint

It cost General Electric Co. $50 million to settle—without admitting liability—a U.S. Securities and Exchange Commission complaint that the company materially misstated information in 2002 and 2003 financial statements. But resolving the matter cost the company another $200 million or so in legal and accounting fees, notes the Am Law…

Aug 4, 2009 9:52 PM CDT

Directed Verdict Against Tenenbaum; Jury to Decide Music Download Damages

A federal judge last night granted the directed verdict sought by the plaintiffs in a high-profile music downloading case against a Boston University physics graduate student. But the jury still has a role: It will determine whether the copyright violations Joel Tenenbaum admitted during his trial testimony yesterday were willful…

Jul 31, 2009 4:43 PM CDT

Trustee Sues Madoff’s Wife for $45M, Cites ‘Life of Spendor’

A court-appointed trustee charged with recovering money for investors in the Ponzi scheme operated by Bernard Madoff under the guise of a hedge fund has sued the jailed swindler’s wife for almost $45 million. Ruth Madoff knew or should have known her “life of splendor” was funded with ill-gotten gains…

Jul 29, 2009 10:04 PM CDT

Fair Use Nixed in Music Download Case, So Defense Team to Focus on Damages

The defense team in a high-profile illegal music downloading case against physics graduate student Joel Tenenbaum had hoped to rely on a fair-use doctrine defense. But after that plan was nixed by U.S. District Judge Nancy Gertner, who said interpreting fair use in this manner would eviscerate copyright law, the…

Jul 29, 2009 8:12 PM CDT

Jury Hears Tape of Witness Talk By N.Y. Attorney on Trial in Obstruction Case

Although a federal judge decided this month that a number of tape-recorded conversations between criminal defense attorney Robert Simels and a high-profile client would not be heard at trial, jurors got an earful Tuesday of the lawyer’s taped conversation with a witness for his client, accused drug kingpin Shaheed “Roger”…

Jul 29, 2009 6:48 PM CDT

Auction of Dreier’s Home Offers View of Disgraced N.Y. Lawyer’s Luxe Lifestyle

The $40,000 worth of Baccarat crystal and a set of seven Dale Chihuly glass light fixtures for which attorney Marc Dreier paid $180,000 will be sold separately. But many emblems of his luxurious lifestyle in a three-bedroom, four-bathroom “pied-a-terre” in one of New York City’s most fashionable Midtown apartment buildings…

Jul 21, 2009 7:20 PM CDT

Collecting Madoff and Dreier Assets Keeps New York Lawyers Busy—and Stressed

Despite the dismal economy, there’s been quite a bit of work lately for lawyers who specialize in recovering assets held by convicted swindlers. But it isn’t an easy gig. As partner Mark Pomerantz of Paul Weiss Rifkind Wharton & Garrison moves toward the finish line concerning his role as a…

Jul 20, 2009 7:49 PM CDT