Lerach Gets 2 Years in Claimed Milberg Weiss Kickbacks Case

A once-mighty partner at the nation’s biggest and best-known plaintiffs securities firm was given a two-year federal prison sentence today for his role in an alleged law firm scheme to pay $11.3 million in kickbacks to lead plaintiffs in securities class actions. In addition to the prison term, William Lerach,…

Feb 11, 2008 9:44 PM CST

BP Pleads Guilty in Texas Refinery Explosion That Killed 15

A federal judge in Houston is one step closer to approving a criminal plea deal by petroleum giant BP concerning a 2005 explosion at a Texas refinery that killed 15 and injured more than 170. BP entered a guilty plea today, but U.S. District Judge Lee Rosenthal hasn’t yet decided…

Feb 5, 2008 12:03 AM CST

Debevoise Probe of Siemens Hits Roadblocks

Debevoise & Plimpton’s internal corporate probe of misconduct at Siemens AG has been hindered by uncooperative employees and prosecutors. The investigation into allegations of bribes for business was proceeding so slowly last summer that some board members questioned whether the law firm should have been hired, according to the Wall…

Jan 23, 2008 8:11 PM CST

Judiciary Committees to Probe Corporate Monitors Following Ashcroft Deal

The House and Senate judiciary committees are seeking more information about the appointment of corporate monitors amid questions about whether prosecutors are rewarding political pals with the lucrative work. The move comes after news reports that the Justice Department is investigating a no-bid contract for monitoring work awarded to the…

Jan 15, 2008 12:39 PM CST

No Cash Awarded, But $9.5M Fee Allowed

A federal judge in New Jersey has approved $9.5 million in attorney fees in an investor suit against Schering-Plough Corp. even though no money damages were awarded. U.S. District Judge Katharine Sweeney Hayden said fees were justified because the company agreed to changes in its corporate governance, and the litigation…

Jan 15, 2008 11:44 AM CST

$4B BOA-Countrywide Deal Price Tag Doesn’t Include Legal Woes

Bank of America Corp.’s newly announced deal to buy Countrywide Financial Corp. likely could cost considerably more than the $4 billion purchase price. That’s because BOA is taking on a lengthy list of legal issues faced by Countrywide, the nation’s largest mortgage lender, as part of the deal, according to…

Jan 11, 2008 6:53 PM CST

Lawyer Says Subprime Suits Could Be ‘Bigger Than Enron’

A lawyer at a well-known British firm says a wave of lawsuits being filed over subprime mortgage issues could eventually exceed the scope of the litigation over the infamous Enron debacle. “In terms of the potential numbers of lawsuits, the subprime crisis could be bigger than Enron,” Tim House, an…

Jan 11, 2008 4:49 PM CST

Martin Lipton’s Latest Client Memo ‘Wrongheaded,’ Columnist Says

The latest advice offered by high-profile lawyer Martin Lipton to his corporate clients is “wrongheaded” and “dangerous,” Andrew Ross Sorkin asserts in a Dealbook column for the New York Times. The 76-year-old lawyer sent out a pre-Christmas memo advising corporate board members to resist shareholder efforts to dictate executive compensation…

Jan 8, 2008 5:15 PM CST

Ex-GC to Be Sentenced this Month for Insider Trading

The former general counsel of semiconductor maker Amkor Technology Inc. faces up to five years in prison when he is sentenced Jan. 28 for insider trading. At one time, Kevin Heron was in charge of insider trading compliance for the company. But he was convicted July 19 based on evidence…

Jan 8, 2008 1:19 PM CST

The Hammer Goes In-House

Latest chapter in corporate fraud probe has SEC going after general counsel

Jan 1, 2008 7:58 PM CST

Seventeen Percent

Jan 1, 2008 4:53 PM CST

Mayer Brown Partner Sued—and Charged—by SEC in Refco Case

Updated:: The SEC filed civil and criminal cases today against a partner at Mayer Brown, accusing him of helping one of the world’s biggest commodities brokerages hide from investors information about debt that it was owed and related transactions. Joseph P. Collins, 57, allegedly helped Refco Group Ltd. and its…

Dec 18, 2007 6:36 PM CST

Corp. Crime Crackdown: Many Serve Minimal Sentences

Despite a renewed emphasis on corporate compliance in recent years and a high-profile crackdown on executives who don’t play by the rules, such prosecutions may be sending a mixed message to those tempted by white-collar crime. That’s because nearly half of the defendants convicted in such cases during the past…

Dec 13, 2007 7:00 PM CST

U.K. Considering Sarbanes-Like Rules

In the wake of an unprecedented loss of a government database containing confidential information about tens of millions of people, British legislators are reportedly considering new data-protection safeguards. Possible changes in the law being discussed would hold company chief executives directly responsible for data protection and make it a crime…

Dec 7, 2007 5:51 PM CST

Mortgage Mess Gets Messier

Despite cleanup efforts, the mortgage mess continues. The Bush administration announced today a plan to freeze the interest rate on some subprime mortgages for five years, which could help more than a million homeowners. As an article on the CNN Money.com website details, the plan would grant those current on…

Dec 6, 2007 8:24 PM CST