Securities Law

Ex-SEC Lawyer Who Married into Madoff Family Said to be ‘Straight Arrow’

A former lawyer at the Securities and Exchange Commission who married the niece of Bernard Madoff has been described as a “straight arrow” whose work in the investigation of his future wife’s uncle was relatively minor. Former and current SEC officials told the New York Times that Eric Swanson handled…

Dec 19, 2008 3:47 PM CST

Paul Hastings Associate Accused in $4.8M Insider Trading Scheme

A Paul Hastings tax associate was one of four people charged Thursday with insider trading based on information provided by the husband of a public relations representative who had information on pending deals. Lawyer Eric Holzer, 34, is accused of buying stock based on information provided by former Lehman Brothers…

Dec 19, 2008 12:50 PM CST

How SEC Probe Missed Alleged $50B Madoff Fraud, Despite 2000 Tip

Pressured by his boss at a Boston investment firm to amp up results, after a colleague came back from a trip to New York with news of Bernard Madoff’s stellar hedge fund returns, Harry Markopolos tried to figure out how Madoff was doing it. Try as he might, Markopolos and…

Dec 18, 2008 10:28 PM CST

How Did Lawyers Enable the Meltdown?

In the game of blame that followed the deepest financial implosion since the Great Depression, bankers and money managers have borne their share of attention. But how much blame should lawyers bear? Plenty. As legislators, they helped remove restrictions on commercial banks that allowed them to get involved with subprime…

Dec 18, 2008 3:25 PM CST

Latest Obama Appointee—SEC Chief—Is Third Lawyer Named in Two Days

Barack Obama’s three latest appointees to top jobs in his administration are all lawyers. The latest is Mary Schapiro, chosen to head the Securities and Exchange Commission. Schapiro currently heads the Financial Industry Regulatory Authority, a self-regulatory body for the securities industry, Reuters reports. She has also served as an…

Dec 18, 2008 12:03 PM CST

3rd Parties Will Pay for Alleged $50B Madoff Fraud, Experts Predict

For those who invested in the claimed $50 billion Ponzi scheme allegedly run by Bernard Madoff under the guise of a hedge fund, exactly how they invested in the hedge fund could be crucial in determining whether they get their money back. Those who put their money directly into the…

Dec 17, 2008 8:32 PM CST

Mukasey Recuses Himself in Madoff Probe

U.S. Attorney General Michael Mukasey won’t participate in an investigation of Bernard Madoff, accused of defrauding investors of $50 billion in a huge Ponzi scheme. Mukasey did not give a reason for his recusal, report FOX News and ABC News. But his son, Marc Mukasey, a lawyer with Bracewell &…

Dec 17, 2008 5:23 PM CST

Judge Refuses to Approve Settlement Proposal in Backdating Case

A federal judge has refused to accept a proposed settlement in an options backdating suit. U.S. District Judge James Ware refused to dismiss a derivative suit at the request of KLA-Tencor Corp. earlier this month, citing concerns about the independence of a member of the board of directors’ special litigation…

Dec 17, 2008 4:50 PM CST

Judge Questions Dewey Fee Application Seeking About $100K a Day

A federal judge is seeking more information on a $2.1 million fee application by Dewey & LeBeouf that breaks down to about $100,000 a day in attorney fees. U.S. District Judge Denny Chin asked for more information on the application by Dewey partner Timothy Coleman, who is the receiver for…

Dec 17, 2008 2:55 PM CST

Cox: SEC Lax on Madoff Oversight, Seeks Probe of His Own Agency’s Work

In a situation he describes as “deeply troubling,” the head of the Securities and Exchange Commission says the federal securities watchdog failed to pursue aggressively “credible and specific allegations” going back at least as far as 1999 that the now-notorious hedge fund run by Bernard Madoff was not what it…

Dec 17, 2008 12:53 AM CST

NY Law School Leads Litigant Pack in Suits Over Alleged $50B Madoff Fraud

Less than a week after Bernard Madoff’s claimed $50 billion hedge fund fraud first came to light, lawsuits are already being filed. Among the prime targets are apparent victims of the fraud who allegedly didn’t do enough to investigate before recommending the massive Ponzi scheme to others. And front and…

Dec 17, 2008 12:01 AM CST

Why Wasn’t Madoff’s Alleged $50B Ponzi Scheme Discovered Earlier?

After staggering news last week that the longtime head of a respected Wall Street investment firm had allegedly been running a massive $50 billion Ponzi scheme under the guise of a hedge fund for years, there has been fallout on many fronts. As victims lawyer up, both the Securities and…

Dec 16, 2008 6:25 PM CST

Siemens Reaches $1.3B Bribe Settlement with Help of Debevoise, Davis Polk

The engineering firm Siemens AG has agreed to pay more than $1.3 billion to settle corruption charges in the United States and Germany. The company entered a guilty plea in Washington, D.C., on Monday, the Associated Press reports. It will pay more than $800 million to settle U.S. charges of…

Dec 16, 2008 3:53 PM CST

Another Issue for Dreier Lawyers: Lapsed Malpractice Coverage

A scary law firm financial situation that already posed possible liability risks to non-equity partners at Dreier has gotten even more frightening. Initially, with Marc Dreier, the firm’s only equity partner, as the sole person in charge of the 250-attorney partnership’s finances, it seemed that other attorneys there were benefited…

Dec 15, 2008 5:50 PM CST

Bernard Madoff’s Alleged $50B Investor Fraud ‘a Debacle for the SEC’

The Securities and Exchange Commission received several warnings about the conduct of Bernard Madoff, accused last week of cheating investors out of $50 billion in a “giant Ponzi scheme.” Madoff had a reputation for such spectacular investment returns that his conduct aroused some suspicion, but in many circles he had…

Dec 15, 2008 1:10 PM CST