Securities Law

Prosecution to Seek 150-Year Sentence for Bernard Madoff on Monday

In a federal court filing tonight, prosecutors argue for a 150-year sentence for Bernard Madoff, convicted of operating a record-breaking $65 billion swindle under the guise of a hedge fund. Contending that Madoff “engaged in wholesale fraud for more than a generation,” the filing argues that “the scope, duration and…

Jun 26, 2009 11:31 PM CDT

Kerviel Should Be Tried Concerning $7B SocGen Trading Loss, Prosecutors Say

Jerome Kerviel, a low-level trader blamed by Societe Generale SA for a $7 billion trading loss last year, should be tried on criminal charges, French prosecutors have recommended in a report today to the judge in charge of investigating the case. Prosecutors recommend that Kerviel, 32, should be tried for…

Jun 25, 2009 5:50 PM CDT

Bernard Madoff Should Get 12 Years in Stupendous Swindle, His Lawyer Argues

Convicted in a Ponzi scheme of stupendous scope that has reportedly left many of his formerly well-to-do victims virtually penniless, Bernard Madoff could get as much as 150 years in prison when he is sentenced Monday in Manhattan federal court. But his lawyer is arguing for a 12-year term, saying…

Jun 23, 2009 5:46 PM CDT

Refco Execs Lied to Me, Mayer Brown Partner Testifies

Speaking forcefully and looking jury members straight in the eyes as he testified yesterday in federal court in Manhattan about his own role in a $2.4 billion corporate fraud case, a Mayer Brown partner said executives of Refco Inc. lied to him about financial issues underlying the loan transactions on…

Jun 19, 2009 5:53 PM CDT

Receiver Sues Davis Wright for $400M, Claims Firm Aided Client’s Ponzi Plan

The receiver for a retirement home operator claims in a $400 million lawsuit that Davis Wright & Tremaine helped the company operate a Ponzi scheme. The suit filed last week in an Oregon federal court claims the law firm played a critical role in creating and “propping up” Sunwest Management,…

Jun 17, 2009 5:34 PM CDT

Accused Ponzi Schemer Claims He’s Holed Up in a Hotel, Lawyer Says

A Chicago lawyer contacted the Chicago Tribune to report an unusual call from a client who disappeared after the Securities and Exchange Commission filed a civil suit accusing him of running an $11 million Ponzi scheme. The client is David Hernandez, accused of bilking investors who thought they were funding…

Jun 17, 2009 4:09 PM CDT

Motion Seeks to Oust Baker Botts from Role in Stanford Case

Lawyers representing accused financier R. Allen Stanford are seeking to get Baker Botts removed from a role in the case. Baker Botts represents the court-appointed receiver overseeing Stanford’s businesses. Court papers claim the law firm has a conflict of interest because it represented Stanford and his father from 1985 to…

Jun 17, 2009 12:42 PM CDT

SEC Lawyer Says Critical E-Mail Sent to Media Didn’t Come from Her

Media organizations got some unusual e-mail in their in-boxes Tuesday morning. The first, a lengthy e-mail harshly criticizing the chairman and inspector general of the Securities and Exchange Commission, was sent in the name of Securities and Exchange Commission lawyer Irene Gutierrez. The second e-mail, also from Gutierrez, said the…

Jun 10, 2009 12:25 PM CDT

Lawyer Discovers ‘Guaranteed’ Annuity Isn’t a Sure Thing

A retired lawyer and investment banker in Montville, N.J., recently learned that his variable annuity with a guaranteed minimum income isn’t a sure thing. Herbert Wreschner, 60, told the Wall Street Journal (sub. req.) that he learned of a provision that could cancel the guarantee in a conversation with a…

Jun 9, 2009 6:40 PM CDT

Financier Allen Stanford Hires Maritime Lawyers for Investment Fraud Case

Billionaire financier R. Allen Stanford has hired maritime lawyers to defend him on civil charges of running an $8 billion investment fraud. Stanford has hired lawyers from the Gulf Law Group in Washington, D.C., to help defend him on civil fraud charges brought by the Securities and Exchange Commission, reports…

Jun 9, 2009 12:19 PM CDT

Ex-Countrywide CEO Accused of Securities Fraud in ‘Strategic’ Case

Former Countrywide CEO Angelo Mozilo is facing accusations of securities fraud in a civil suit by the Securities and Exchange Commission. The SEC said Mozilo made $140 million selling stock in Countrywide at the same time he warned in e-mail messages that the company’s loan products were “toxic” and “poison,”…

Jun 5, 2009 11:08 AM CDT

Once Set for Life, Ark. Plaintiffs Lawyer Takes Plea in $9.3M Client Theft Case

In an extraordinary April 20 hearing transcript documenting the beginning of the end of Gene Cauley’s enviable story of professional success, a federal judge calls for an investigation of the high-flying Arkansas plaintiffs security lawyer and chastises co-counsel for not keeping closer track of his activities. Now the 41-year-old Cauley…

Jun 1, 2009 9:45 PM CDT

Ex-Prof and Houston Lawyer Accused of Faking Investor Returns

A Houston lawyer and former finance professor at Texas A&M have been accused of faking bank records to mislead investors into believing they were able to produce annual returns of more than 23 percent in foreign exchange trading. The Securities and Exchange Commission says Houston lawyer Daniel Petroski and former…

May 27, 2009 3:12 PM CDT

Supreme Court Grants Cert in Vioxx Investor Class Action

The U.S. Supreme Court will consider whether investors filed a lawsuit too late to recover losses associated with the withdrawn painkiller Vioxx. The suit could result in tighter deadlines in investor class actions, Bloomberg reports. At issue is how much notice is needed to trigger the two-year statute of limitations…

May 26, 2009 4:35 PM CDT

SEC Seeks Sanctions Against Three Akerman Lawyers in Discovery Dustup

The Securities and Exchange Commission is seeking sanctions of up to $20,000 a day against three Akerman Senterfitt lawyers, a Miami solo practitioner and the company they represent. The agency says the lawyers should be held in contempt of court and prodded to comply with discovery orders with the imposition…

May 21, 2009 12:33 PM CDT