Corporate Compliance

GC Fired As Company Probes Backdating

Another backdating probe, another general counsel gets the boot. But in the case of Matthew Gloss, dismissed as general counsel of Marvell Semiconductor Inc., it’s not clear if his firing was because of backdating, according to the Recorder. A press release noting the departure of Gloss and others at the…

May 8, 2007 12:14 PM CDT

Lawyer: Sarbanes-Oxley Misused Against Me

A Greenwich, Conn., lawyer charged with destroying evidence under the Sarbanes-Oxley Act says he has a clear conscience. Prosecutors claim Philip Russell destroyed a computer containing child pornography, owned by the music director for a church he represented, the Greenwich Time reports. He has pleaded not guilty to destruction of…

May 7, 2007 4:40 PM CDT

Tough Testimony for Renowned Chicago Lawyer

This hasn’t been a great week for former Illinois Gov. James R. Thompson. Now a well-known lawyer at a prominent Chicago law firm, he spent several days this week testifying as a witness at the fraud trial of former Hollinger International corporate executives. The company is the parent of the…

May 4, 2007 11:55 PM CDT

Lax Corporate Board Practices Long Gone?

Seemingly lax oversight by members of the Hollinger International board and audit committee revealed in testimony this week in an ongoing Chicago prosecution of high-level corporate employees undoubtedly have raised some eyebrows amongst those familiar with current oversight standards. One prominent lawyer called as a witness, for example, reportedly testified…

May 4, 2007 10:50 PM CDT

Eek Is for E-Mail

You can manage the mess of messages–but first let go of the paper

May 1, 2007 11:27 AM CDT

Penalty for Foreign Bribe is Largest

An oil company has agreed to pay $44 million in combined fines and penalties for bribing foreign officials, the largest penalty to date, the Justice Department has announced. Baker Hughes Services International Inc. pleaded guilty yesterday to violating anti-bribery provisions of the Foreign Corrupt Practices Act in a deal that…

Apr 27, 2007 5:13 PM CDT

Frist Cleared in Insider Trading Probe

Federal prosecutors have cleared former Senate Majority Leader Bill Frist of any wrongdoing in his sale of stock in a hospital chain, the Washington Post reports. Frist had sold shares in the chain founded by his brother and father days before its stock price fell. E-mails showed he had put…

Apr 27, 2007 4:08 PM CDT

Indicted Ex-CEO Eats and Bleats

Former White House budget director David Stockman is talking to reporters in an apparent effort to revive his image. Stockman has been indicted for fraud and conspiracy in connection with his handling of finances as CEO for auto parts maker Collins & Aikman. Prosecutors claim he misled investors to preserve…

Apr 27, 2007 3:49 PM CDT

The Case of the Disappearing CEO

The federal government hasn’t collected a $22.3 million judgment against the former CEO of Gemstar-TV Guide International Inc.—and doesn’t know where he is, according to a Wall Street Journal (sub. req.) story. A federal judge had ordered the payment last March in an accounting fraud case brought by the Securities…

Apr 25, 2007 3:12 PM CDT

Surprise Statement, Gutsy Defense in Apple Case

The Wall Street Journal (sub. req.) reports that a public statement by Apple’s former CFO could complicate matters for Apple CEO Steve Jobs. Fred Anderson says he warned Jobs that the company would have to take a charge against earnings if it backdated stock options. The Securities and Exchange Commission…

Apr 25, 2007 12:46 PM CDT

SEC Sues Past Apple GC; Was She Singled Out?

As previously predicted, the U.S. Securities and Exchange Commission sued former Apple Inc. general counsel Nancy Heinen today, claiming that she participated in a scheme to backdate stock options grants for CEO Steve Jobs and herself, among others. Heinen’s lawyer, however, says she did nothing wrong, and criticizes the securities…

Apr 24, 2007 11:58 PM CDT

Lawyer: Stop ‘Rush to Judgment’ in Bank Case

Wasting no time getting to work after his weekend appointment to represent beleaguered World Bank President Paul Wolfowitz, powerhouse Washington attorney Robert Bennett called today for measured consideration of the situation. The bank’s board is already reportedly deliberating about the fate of Wolfowitz, who is accused of having given a…

Apr 24, 2007 10:32 PM CDT

E-mail ‘Rant’ Costs Job; No Whistleblower Shield

A jaw-dropping e-mail reportedly sent to all employees at Kaiser Permanente last fall by an unauthorized 22-year-old worker shows that so-called company whistleblower rules intended to protect those who bring corporate wrongdoing to public attention only go so far. At the same time, though, it also demonstrates, as the Wall…

Apr 24, 2007 9:45 PM CDT

Apple’s Ex-GC to Use E-Mail in Defense

The attorney for Apple Inc.’s former general counsel told the Wall Street Journal (sub. req.) her client will use e-mails to show she did not backdate stock options to benefit herself or CEO Steve Jobs. “Nancy Heinen did not backdate, and she will defend herself based on her actions, e-mails…

Apr 24, 2007 2:44 PM CDT

Scrushy Makes Deal with SEC, But Can He Pay?

The former CEO of HealthSouth will pay $81 million to resolve a lawsuit filed by the Securities and Exchange Commission. Richard M. Scrushy will forfeit $77.5 million and pay a $3.5 million fine, but neither admits nor denies allegations that he was part of accounting fraud, according to the New…

Apr 24, 2007 2:23 PM CDT