Corporate Compliance

US: Milberg Weiss Firm Was ‘Racketeering Enterprise’

Updated: In a stunning series of body blows today in an ongoing battle between the government and one of the country’s most powerful plaintiff firms, federal prosecutors in California announced enhanced charges against the firm itself, the indictment of its co-founding partner and the latest plea deal with a former…

Sep 20, 2007 10:10 PM CDT

Firm: Melvyn Weiss Faces Charges

Updated: A founding partner of one of the nation’s most powerful plaintiffs securities law firms is reportedly resigning from a management role in the face of expected new federal charges against both him and the firm in an ongoing case concerning alleged payments of illegal kickbacks to clients. Melvyn Weiss…

Sep 19, 2007 10:22 PM CDT

FL Condo Fraud Squad Nabs Board Prez

Stealing $50,000 doesn’t put the perpetrator on the FBI’s Most-Wanted list. But an alleged embezzlement of that amount by a condominium board president is big news in South Florida. That’s because such crimes apparently aren’t unusual among the state’s many condominium associations, and fed-up condominium residents are hailing efforts to…

Aug 24, 2007 5:22 PM CDT

Sarbanes Case Against Lawyer Continues

The controversial prosecution of a Connecticut lawyer under the Sarbanes-Oxley Act for what he says was an unknowing destruction of evidence will proceed, a federal judge has decided. Although Philip Russell says he didn’t know when he destroyed a computer containing child pornography that the FBI had just started a…

Aug 24, 2007 4:33 PM CDT

Sarbanes Misused, Expert Says

Whistle-blower complaints brought under the Sarbanes-Oxley Act are failing because claimants are “misusing the law as a club in garden-variety workplace disputes,” according to an expert in the field. Michael Delikat, a lawyer with Orrick, Herrington & Sutcliffe, writes in a Wall Street Journal commentary (sub. req.) that 1,000 whistleblower…

Aug 23, 2007 5:39 PM CDT

Ex-SEC Chair Investigated

Prosecutors are considering whether to charge a former chair of the Securities and Exchange Commission in connection with a banana company’s payments to a Colombian paramilitary group, the New York Times reports. Former SEC chair Roderick Hills was a director on the board of Chiquita Brands International when he disclosed…

Aug 16, 2007 1:19 PM CDT

Cost of Biggest Data Breach: $256 Million

It will cost at least $256 million to correct a massive data breach involving the theft of computerized information about 45 million credit and debit cards. Reportedly the biggest such security breach ever to occur in the U.S., the yearlong theft of computer data from TJX Cos., based in Framingham,…

Aug 15, 2007 6:31 PM CDT

Green Lawyers Can Rile SOX Enforcers

Five years ago last week, the Sarbanes-Oxley Act took effect, giving the government a whole new set of tools to fight corporate corruption. Its anti-fraud provisions immediately affected public companies with tougher auditing requirements for officers, directors and outside advisers, including accountants and lawyers. For the first time, prison became…

Aug 11, 2007 9:41 PM CDT

‘Dirty’ Money Enforcement Blitz in FL

So-called dirty money is big business in Florida. And that means the state is a magnet for enforcement of federal laws banning banks from participating in money-laundering and similar schemes. ”On a proportional basis, [given] the number of institutions that Miami has, South Florida leads the country in Bank Secrecy…

Aug 8, 2007 5:08 PM CDT

CEO Convicted in 1st Backdating Case

Updated: In a result seen as a major victory for federal prosecutors, a jury in San Francisco today convicted the former CEO of Brocade Communications Systems Inc. of securities fraud in the first criminal stock options backdating case to go to trial. Today’s conviction of Gregory Reyes, 44, on 10…

Aug 7, 2007 10:06 PM CDT

Suit: Insurer Issued False Katrina Reports

A federal whistleblower lawsuit ordered unsealed today claims that State Farm Insurance Co. pressured engineers investigating homeowner claims to falsify reports about the cause of damage from Hurricane Katrina. Instead of saying that wind damage from the August 2005 storm, which is covered by homeowner policies, destroyed insured houses on…

Aug 6, 2007 11:14 PM CDT

It Pays to be Wary, as Bribe Cases Rise

Depending on where you are in the world, it might be thought of as payola. Or baksheesh. Or a backhander, among other terms. But for American companies, a bribe by any name is a bigger problem these days than it used to be. The increased focus on corporate compliance in…

Aug 6, 2007 4:13 PM CDT

Taser Talks Tough, Settles Quietly

Taser International Inc. talks a tough game concerning its litigation strategy in cases brought over its controversial stun guns. “The word has gotten out: Taser doesn’t settle,” said the company’s general counsel, Doug Klint, in an April interview with Bloomberg. “Anyone who sues us is in for a fight.” But…

Aug 2, 2007 8:02 PM CDT

Deputy AG Jumps to Baker

Deputy Attorney General Paul McNulty is jumping to a big law firm: Baker & McKenzie. His new job should pay enough to help him finance college for his children, his stated reason for leaving the Justice Department. The Wall Street Journal’s Law Blog reports that McNulty will work in the…

Jul 30, 2007 8:39 PM CDT

Atty Dad, Atty Daughter Fight for Viacom

Corrected: Recently, 84-year-old Sumner Redstone has won or settled lawsuits with several relatives concerning the $50 billion Viacom Inc. media empire he was instrumental in creating. But now he may well be facing his toughest opponent yet–his 53-year-old daughter, Shari Redstone. Until lately her father’s heir-apparent and a 20 percent…

Jul 30, 2007 8:28 PM CDT