Ex-Nixon Peabody Lawyer Gets Probation in SEC False-Information Case

A former lawyer with Nixon Peabody who earlier settled an insider-trading complaint without admitting liability has been sentenced to two years of probation for providing false information to the Securities and Exchange Commission. Melissa Mahler was credited by a federal prosecutor in a court hearing today in the District of…

Nov 3, 2011 8:46 PM CDT

5 Lawyers, Ex-Crime Boss Son Among 13 Indicted in Alleged Lender Takeover by Racketeer Enterprise

Five lawyers and a certified public accountant are among 13 defendants indicted in a federal racketeering conspiracy and securities fraud case in Camden, N.J. It concerns the alleged use of threats against board members to take over a publicly traded Texas-based subprime lender and loot it of at least $12…

Nov 1, 2011 9:28 PM CDT

Securities Lawyers Outside SEC are Casting a Wary Eye at New Inspector Gen’l, H. David Kotz

Few would dispute that the Securities and Exchange Commission has missed some major frauds in recent decades, including the massive Ponzi scheme that Bernard Madoff operated under the guise of a hedge fund for years without executing a single trade. But critics contend the pendulum has swung too far in…

Oct 28, 2011 10:47 PM CDT

Is It Insider Trading if Tips Don’t Result in Payoff? Reported Gupta Charges Will Test Theory

Updated: Former Goldman Sachs board member Rajat Gupta has turned himself in to face charges he leaked inside information to Galleon Group hedge fund founder Raj Rajaratnam, according to published reports. Gupta turned himself in this morning, the Wall Street Journal Law Blog reports. The charges remain sealed, but news…

Oct 26, 2011 11:35 AM CDT

Citigroup to Pay $285M to Settle SEC Allegations It Bet Against Its Own Clients on Mortgage CDO

Citigroup has agreed to pay $285 million to settle allegations that it sold mortgage-backed securities to clients while betting against the investments through short sales. The payment settles a suit filed Wednesday by the Securities and Exchange Commission, report the Los Angeles Times, the New York Times and a press…

Oct 20, 2011 12:21 PM CDT

With Gloria Allred at Her Side, Lawyer Denounces AG’s Response to Dominatrix Story

Lawyer Alisha Smith says she has quit her job at the New York Attorney General’s office after her employer didn’t give her a chance to respond to a New York Post story claiming she had moonlighted as a dominatrix. Alisha Smith appeared at a press conference Monday with her lawyer,…

Oct 18, 2011 11:35 AM CDT

Red-Flagging China: Regulators Eye Chinese Companies Using Reverse Mergers to Enter US

Oct 1, 2011 8:40 AM CDT

SEC Inspector General Hits $120K in Payments to Law Prof Heading ‘Office of Smart People’

The Securities and Exchange Commission is under fire by its inspector general for paying $120,000 in living expenses to a law professor when he headed an SEC division known as the “Office of Smart People.” SEC Inspector General David Kotz says the agency failed to follow federal guidelines when it…

Sep 26, 2011 5:35 PM CDT

Former SEC General Counsel Defends His Madoff Work amid Conflict Questions

A former Securities and Exchange Commission lawyer defended his role in the Bernard Madoff case at a congressional hearing Thursday. Former SEC general counsel David Becker is under fire for failing to recuse himself in policy matters involving compensation formulas for victims of accused Ponzi schemer Bernard Madoff, report the…

Sep 23, 2011 5:16 PM CDT

Oops. Six Years into Securities Suit, Lawyers Learn Lead Plaintiff Didn’t Own Shares

U.S. District Judge William Pauley of Manhattan has chastised lawyers for “a remarkable revelation” after six years of “hard-fought and costly litigation” in a shareholder securities fraud suit: The lead plaintiff didn’t own any of the funds at issue. In a memorandum and order (PDF) released Thursday, Pauley said the…

Sep 23, 2011 12:16 PM CDT

DOJ to Mull Possible Criminal Probe of Former SEC General Counsel’s Role in Madoff Liquidation

Already facing a clawback suit, along with siblings, concerning an investment account with convicted Ponzi schemer Bernard Madoff that was part of his mother’s estate, a former general counsel of the Securities and Exchange Commission is now potentially the subject of a federal criminal probe. In a report (PDF) dated…

Sep 20, 2011 10:34 PM CDT

2 High-Level SEC Veterans Move to BigLaw Jobs, Where They Will Help Clients Comply with Dodd-Frank

After decades with the Securities and Exchange Commission, two high-level veterans are leaving to take BigLaw posts in which they will help clients comply with the Dodd-Frank Act. After 25 years with the SEC, James Brigagliano is leaving his job as deputy director of the trading and markets division for…

Sep 19, 2011 5:14 PM CDT

‘Notoriously Cranky’ Lawyers Stay Content in Jobs at DOJ, But Not at SEC

The U.S. Justice Department ranks only 16th in a new report on the satisfaction levels of younger government workers. But there is some good news for the department in the report by Deloitte and the Partnership for Public Service: Employees there tend to stay content. The satisfaction score of new…

Sep 16, 2011 11:31 AM CDT

SEC Officials Hire Lawyers Amid Ethics Scrutiny

Several current and former officials with the Securities and Exchange Commission are hiring lawyers amid increased scrutiny by Congress and the agency’s inspector general. Even SEC chairman Mary Schapiro has legal representation, the Washington Post reports. Lawyer Richard Sauber accompanied Schapiro when she met in April with SEC Inspector General…

Sep 15, 2011 2:05 PM CDT

Rajaratnam Calls Requested 20 Years ‘Grotesquely Severe,’ Says Insider Trading Definition Not Clear

Interviewed by a probation officer for a presentence investigation report, a hedge fund co-founder recently convicted in the biggest insider-trading case in decades said he still isn’t clear on the concept of what is and isn’t permitted, reports Bloomberg. “In my own mind, the line between permissible ‘detective work’ and…

Sep 12, 2011 5:47 PM CDT