Securities Law

Ill. AG Files Motion Seeking Court Ouster of Blagojevich

Updated: Illinois Attorney General Lisa Madigan has filed a motion with the Illinois Supreme Court seeking the ouster of Gov. Rod Blagojevich. Madigan is citing Rule 382, which gives the Illinois Supreme Court the power to determine the ability of the governor to serve, the Chicago Sun-Times reports. “I recognize…

Dec 12, 2008 5:24 PM CST

Ex-Nasdaq Chair Accused of ‘Stunning’ $50B Fraud in ‘Giant Ponzi Scheme’

The former chairman of the Nasdaq stock market has been charged with a “stunning” $50 billion securities fraud after his sons alerted officials that their father had confessed to running “a giant Ponzi scheme.” Bernard Madoff, 70, was accused in civil and criminal complaints of paying returns to investors in…

Dec 12, 2008 12:21 PM CST

Dreier Controller: I Refused Jailed Boss’s Request for Escrow Millions

The controller of the Dreier law firm says in a sworn statement that he refused to wire up to $10 million in escrow funds to his boss sitting in a Canadian jail. The statement was contained in court filings by the Securities and Exchange Commission, the Wall Street Journal reports.…

Dec 10, 2008 1:52 PM CST

How Attorney Marc Dreier Allegedly Sold Worthless Forged Paper for $113M

In an era of high-tech fraud, the founder of the Dreier law firm is accused of doing it the old-fashioned way. Using little more than his position and skills as a prominent and seasoned attorney, Marc Dreier allegedly tricked sophisticated investors into paying more than $100 million for worthless forged…

Dec 9, 2008 8:20 PM CST

Dreier Founder Charged in ‘Brazen’ Alleged $100M Investment Fraud Attempt

The founder of the not quite 250-attorney Dreier law firm was charged today by federal prosecutors in Manhattan with securities and wire fraud, in connection with what an Securities and Exchange Commission official describes as an alleged “brazen” attempt to cheat three unnamed hedge funds out of $100 million. Marc…

Dec 8, 2008 8:09 PM CST

Problems Amid the Promise

SEC disclosure changes can cause headaches for clients

Dec 2, 2008 2:00 AM CST

Dewey Lawyers Defend Mark Cuban on Blog, Claim SEC Misconduct

Lawyers for billionaire Mavericks owner Mark Cuban are defending civil accusations of insider trading on his blog and leveling their own charge of misconduct against the Securities and Exchange Commission. Lawyers from Dewey & LeBoeuf write on the blog that Mark Cuban never agreed to keep information confidential about a…

Nov 19, 2008 2:33 PM CST

SEC Sues Billionaire Mavericks Owner Mark Cuban, Alleges Insider Trading

Mark Cuban, a billionaire Internet entrepreneur who owns the Dallas Mavericks basketball team, has been charged by the SEC in a civil case with insider trading. The federal Securities and Exchange Commission contends that Cuban acted almost immediately to sell his entire position in Mamma.com Inc.in 2004, after the online…

Nov 17, 2008 5:27 PM CST

Skadden Sues Thelen to Cover Any Damages in Bankruptcy Litigation

A dispute over which party is to blame for losses by holders of debt securities in a failed funeral company has prompted Skadden, Arps, Slate, Meagher & Flom to sue the dissolving law firm Thelen. Skadden filed the lawsuit one day after Thelen announced it was likely to dissolve, the…

Nov 13, 2008 12:07 PM CST

Fed Could Be Sole Regulator for Financial Institutions, Says Sullivan Chair

Speaking at a conference today in New York on the outlook for mergers and acquisitions, a famed attorney dealmaker predicted that one result of the current economic crisis will be streamlined regulation for financial institutions. H. Rodgin Cohen, the chairman of Sullivan & Cromwell, “said the crisis was likely to…

Nov 13, 2008 12:03 AM CST

Wachtell to Clients: Lessons Learned from Lehman Brothers Bankruptcy

A memo to clients yesterday from Wachtell, Lipton, Rosen & Katz discusses lessons that some major investors learned the hard way from the Lehman Brothers bankruptcy. For example, hedge funds and other counterparties who put up collateral, as a condition of making trades through Lehman’s prime brokerage unit, discovered that…

Nov 12, 2008 5:50 PM CST

Taxpayers May Have to Pay Legal Bills of Fannie, Freddie Execs

Taxpayers would likely have to pay the legal bills of former executives at Fannie Mae and Freddie Mac if they are sued by dissatisfied shareholders or the federal government decides to prosecute. The two mortgage companies that were taken over by the federal government had contracts with their executives that…

Nov 6, 2008 12:35 PM CST

Broadcom Names Strong Diversity Proponent as New GC

Broadcom Corp. has hired a new general counsel after a backdating scandal that led to the resignation of the man who once held the position. The new GC is Arthur Chong, who was deputy general counsel at the McKesson Corp. when it survived an accounting scandal, the Recorder reports. His…

Nov 4, 2008 6:19 PM CST

Two Ex-Milberg Partners Each Sentenced to Six Months in Prison

Former Milberg partner Steven Schulman was sentenced yesterday afternoon to six months in jail for a conspiracy to pay kickbacks to lead plaintiffs, the same sentence given to another partner, David Bershad, earlier in the day for his role in the scheme. The Daily Journal (sub. req.) reports that the…

Oct 28, 2008 11:09 AM CDT

Ex-Milberg Partner Gets 6 Months in Class Action Kickbacks Case

Developing: Doubling the three months recommended by prosecutors, a federal judge today sentenced a former name partner of the New York City-based law firm now known as Milberg to half a year in prison. David Bershad, 68, who cooperated with the government, got a six-month sentence from U.S. District Judge…

Oct 27, 2008 9:26 PM CDT