tag:blogger.com,1999:blog-279297132011-04-21T17:56:05.755-04:00file editornoreply@blogger.comBlogger4241100tag:blogger.com,1999:blog-27929713.post-1158937016774294072006-09-22T10:56:00.000-04:002006-09-22T10:56:56.796-04:00

As you can see, the File hasn't been updated in a while. I have been distracted with other matters. Please check back for updates down the road.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1155310015517616312006-08-11T11:25:00.000-04:002006-08-11T11:26:55.516-04:00

RED COLLAR CRIME? -- "That would be white collar crime that results in injury or death."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1155309434557814752006-08-11T11:16:00.000-04:002006-08-11T11:17:14.560-04:00

UNCOVERING HUMAN TRAFFICKING -- Authorities said nine people were arrested Thursday as investigators broke an international sex-trafficking ring that smuggled Asian women into the U.S. in shipping containers.Seven conspirators in a "highly organized national network prostitution ring" were arrested in Seattle and two in Los Angeles, the U.S. attorney's office said.According to court documents,

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1155309353647376262006-08-11T11:14:00.000-04:002006-08-11T11:15:53.646-04:00

SETBACK FOR AIPAC SPY CASE DEFENDANTS -- "A U.S. judge refused on Thursday to dismiss charges accusing two former pro-Israeli lobbyists of violating the espionage law, clearing the way for a trial in a case involving classified defense information."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1155309284455952842006-08-11T11:13:00.000-04:002006-08-11T11:14:44.466-04:00

BRITISH FREEZE ASSETS -- Acting under the instruction of the chancellor, Gordon Brown, and on the advice of the police and security services, the bank froze the assets of 19 of those arrested yesterday in connection with an alleged plot to blow up passenger jets leaving UK airports for the US.It acted under powers granted by the United Nations to tackle the financing of terrorism in the wake of

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1155225591264019602006-08-10T11:50:00.000-04:002006-08-10T12:00:49.420-04:00

COMVERSE OPTIONS SCHEME -- "Describing a brazen scheme to manipulate the granting of options, federal prosecutors in Brooklyn charged three former executives of Comverse Technology with mail, securities and wire fraud yesterday. The three executives, prosecutors said, used fictitious employees to create a secret slush fund of options to be distributed to favored employees." See also WaPo.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1155224993763406872006-08-03T18:48:00.000-04:002006-08-10T11:49:53.776-04:00

TALK AMONGST YOURSELVES -- I'll be tied up with other matters over the next week, so blogging will be very light.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154612728565998582006-08-03T09:42:00.000-04:002006-08-03T09:45:28.580-04:00

QUICK BITS -- Pump & Dump indictments -- "This just in: eight brokers have been indicted in an alleged 'pump-and-dump' scheme to artificially inflate the stock of Stratus Services Group Inc., a New Jersey temporary-staffing company. Manhattan District Attorney Robert M. Morgenthau announced the news at a press conference this afternoon."WSJ Law Blog Backdating Roundup. Speaking of which, "A

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154528621783413952006-08-02T10:21:00.000-04:002006-08-02T10:23:41.783-04:00

DOJ UNDER PRESSURE -- "The Justice Department is coming under intense pressure to soften some of the tactics it embraced in the early half of the decade, when a spate of corporate fraud put the conviction of white collar criminals at the top of the Bush administration's law enforcement agenda."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154528437990402902006-08-02T10:19:00.000-04:002006-08-02T10:20:37.990-04:00

AND YOU THOUGHT YOU HAD A BAD DAY -- "Yesterday was a scorching day around the country (100 degrees in NYC!), but it was a chilly one for federal white-collar prosecutors. First, an appeals court largely overturned the convictions of several ex-Merrill employees connected with Enron. And for the first time, the government lost a New York Stock Exchange trading case."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154528265798643722006-08-02T10:17:00.000-04:002006-08-02T10:19:28.460-04:00

LANDIS DOPING UPDATE -- "After spending several days in New York, Floyd Landis has returned home to Southern California, where he will await his fate as Tour de France champion. But antidoping officials working on his case already have evidence that some experts say is convincing enough to show that Landis cheated to win the Tour, regardless of further testing or appeals." See also In the

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154527482521401882006-08-02T10:03:00.000-04:002006-08-02T10:04:42.523-04:00

MUCH TO LOVE & HATE IN HOUSE PENSION BILL -- The bill's main focus is defined-benefit retirement plans. Employers are not putting enough money into these plans to fund the pension promises they've made: The gap is estimated to be $450 billion. When firms go into bankruptcy, they often terminate their underfunded pension plans and hand the wreckage over to the federal Pension Benefit Guaranty Corp

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154527358026424332006-08-02T10:01:00.000-04:002006-08-02T10:02:38.030-04:00

COX ANNIVERSARY AS S.E.C. CHAIR -- In an hour-long interview yesterday, Cox continued that tradition, speaking in measured tones on some of the most hotly contested issues before the SEC, including whether the agency should oversee investment pools known as hedge funds and how it should respond to complaints from trade groups about the expense of accounting rules."We're trying to go right down

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154527217737688572006-08-02T09:59:00.000-04:002006-08-02T10:00:17.740-04:00

IRAQ AUDIT MIXED -- The United States has completed 82 percent of its planned projects, having spent $15 billion. Those funds have brought oil and electricity production above prewar levels. They have given 5 million more people access to sanitized water. And they have paid for more than 1,200 security facilities such as fire and police stations.The reconstruction program, though, is also

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154527015996739092006-08-02T09:55:00.000-04:002006-08-02T09:56:56.006-04:00

PENTAGON DECEPTION IN 9/11 PROBE? -- "Some staff members and commissioners of the Sept. 11 panel concluded that the Pentagon's initial story of how it reacted to the 2001 terrorist attacks may have been part of a deliberate effort to mislead the commission and the public rather than a reflection of the fog of events on that day, according to sources involved in the debate."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154458370948047872006-08-01T14:50:00.000-04:002006-08-01T14:53:16.420-04:00

FRIST DISCLOSURES PROBED -- Frist and his wife are the sole trustees in charge of a family foundation bearing the senator's name, according to Internal Revenue Service forms. However, he has not been listing that position on his Senate disclosure forms, which are made public every year.Annual forms detailing lawmakers' personal finances are supposed to list all positions members of Congress hold

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154443718599411992006-08-01T10:27:00.000-04:002006-08-01T10:48:38.926-04:00

LANDIS DOPING ALLEGATIONS -- "Tests performed on the cyclist Floyd Landis’s initial urine sample showed that some of the testosterone in his body had come from an external source and was not produced by his system, according to a person at the International Cycling Union with knowledge of the results." See also WaPo.Similarly, "In the wake of Justin Gatlin’s positive drug test, some in track and

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154442460183964882006-08-01T10:26:00.000-04:002006-08-01T10:27:40.183-04:00

MORE CUNNINGHAM SCANDAL FALLOUT -- "The Pentagon has decided not to renew a contract with a company caught up in the scandal involving former House member Randy 'Duke' Cunningham (R-Calif.), forcing the closure of an intelligence center in Virginia that grew out of a 2003 'earmark' in legislation by Rep. Virgil H. Goode Jr. (R-Va.)."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154442389229513302006-08-01T10:24:00.000-04:002006-08-01T10:26:29.246-04:00

MASSIVE TAX CHEATING -- "Wealthy Americans avoid paying $40 billion a year in U.S. taxes through illegal offshore havens that could be tamed with mandatory financial reporting and stronger penalties, according to a Senate investigative report to be issued Tuesday." See also NYT; WaPo.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154358020611953262006-07-31T10:58:00.000-04:002006-07-31T11:00:20.613-04:00

EBBERS CONVICTION UPHELD -- "A federal appeals court upheld the fraud conviction of WorldCom Inc. founder Bernard J. Ebbers yesterday, rejecting defense arguments that he was deprived of a fair trial and paving the way for the once-brash mogul to spend the rest of his life in prison." See also WSJ Law Blog.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154357764090934692006-07-31T10:55:00.000-04:002006-07-31T10:56:04.093-04:00

CAPTIOL HILL RAID UPDATE -- "A federal appeals court ruled yesterday that prosecutors may not examine documents seized from Rep. William J. Jefferson's Capitol Hill office until the congressman has a chance to review them for privileged legislative materials."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154357723889835832006-07-31T10:54:00.000-04:002006-07-31T10:55:23.906-04:00

HOMELAND SECURITY FUNDS MISSPENT -- "Virginia distributed federal homeland security grants to local governments sloppily in the months after the Sept. 11 attacks, and a few of them, including Fairfax County, misspent the funds, according to an investigation by the Department of Homeland Security's inspector general."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154356917637425292006-07-31T10:41:00.000-04:002006-07-31T10:41:57.640-04:00

SILICON VALLEY'S LAWYER -- Powerful, but discreet. Powerful, but rarely center stage. While Mr. [Larry] Sonsini is hardly a shrinking violet, he cultivates the image of Silicon Valley’s most ubiquitous supporting player, often preferring to say his lines behind the scenes. “It’s not my job to be in the newspapers,” he said in a telephone interview Wednesday. “I think my clients like me to be a

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154356327477351302006-07-31T10:29:00.000-04:002006-07-31T10:32:07.486-04:00

ACCOUNTING FRAUD IN IRAQ RECONSTRUCTION -- "The State Department agency in charge of $1.4 billion in reconstruction money in Iraq used an accounting shell game to hide ballooning cost overruns on its projects there and knowingly withheld information on schedule delays from Congress, a federal audit released late Friday has found."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154354518501671062006-07-31T09:57:00.000-04:002006-07-31T10:03:22.860-04:00

DOPING AT TOUR DE FRANCE -- Before setting out on the Alpine stage that became the high point, then the nadir of this year’s Tour de France, Floyd Landis went through his usual ritual with his physiologist, Allen Lim.Sitting in a team bus festooned with sponsors’ logos, the pair took turns reading dark, humorous quotations from a book by Jack Handey while listening to Metallica.“He told me that

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1154354219665722112006-07-31T09:53:00.000-04:002006-07-31T09:56:59.676-04:00

SPITZER IPO FRAUD SETTLEMENT -- Clark E. McLeod, the former chairman and chief executive of McLeodUSA Inc., agreed to turn over $4.4 million he was accused of earning from the act of "spinning," [New York State] Attorney General Eliot L. Spitzer said. The deal was to be formally announced today. McLeod was accused of directing more than $77 million of McLeodUSA's investment banking business to

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153930160611988262006-07-26T12:06:00.000-04:002006-07-26T12:09:20.630-04:00

BANK BATTLE GONE BAD -- "Independence Federal Savings Bank officials created a front group to influence shareholders and secretly offered to buy out one large investor in exchange for his support in a racially tinged battle last year for control of the historically black D.C. thrift, a federal judge has concluded."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153836912006186362006-07-25T10:14:00.000-04:002006-07-25T10:15:55.876-04:00

IMPACT OF HOUSE ANTI-GAMBLING BILL -- "The question of further curbing Internet gambling has been a perennial issue in Congress in recent years. But people involved with the legislation say the reason for its success, at least in the House, is mainly explained by lawmakers wanting to distance themselves from the corruption scandal involving the convicted lobbyist Jack Abramoff and his association

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153835891482418922006-07-25T09:57:00.000-04:002006-07-25T10:13:20.766-04:00

RELIGIOUS FRAUD -- Two former executives of a failed Southern Baptist foundation were convicted here Monday in what prosecutors said was the nation's largest fraud ever targeting members of a religious group.William Pierre Crotts, who was president of the Baptist Foundation of Arizona, and Thomas Dale Grabinski, the group's former chief legal counsel, were each convicted of three counts of fraud

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153835410972511732006-07-25T09:48:00.000-04:002006-07-25T09:50:10.986-04:00

BUDGET WOES -- Apparently U.S. Attorney's offices are getting shorted by DOJ.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153765662105199092006-07-24T14:27:00.000-04:002006-07-24T14:29:10.370-04:00

POLITICS OF CORRUPTION -- "The defeat of former Christian Coalition director Ralph Reed in a Georgia primary last week has raised Democratic hopes there may be further fallout from the Jack Abramoff corruption scandal. Reed, once a rising GOP star, lost his race for lieutenant governor after being hammered in campaign ads over his ties to the "convicted felon" Abramoff. Dem strategists are now

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153765581750980992006-07-24T14:18:00.000-04:002006-07-24T14:28:59.563-04:00

F.D.A. TO REVISE CONFLICT RULES -- The Food and Drug Administration is expected to announce Monday an effort to write guidelines detailing the kind of industry ties that are permitted for those who serve on its powerful advisory boards.The agency is hoping the move will appease some of its critics who have complained for years that those who sit on its boards often have such deep financial ties

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153756008423238962006-07-24T11:45:00.000-04:002006-07-24T11:46:48.433-04:00

HOW SPITZER GOT THE MUTUAL FUNDS -- "I think you should investigate mutual funds," said a clearly nervous female voice.The anonymous phone message, left with a staff lawyer for New York Attorney General Eliot L. Spitzer, touched off an intense investigation of the mutual fund industry in the summer of 2003. Spitzer, the ambitious prosecutor who had just nailed Wall Street investment banks for

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153755029403260442006-07-24T11:29:00.000-04:002006-07-24T11:30:29.403-04:00

AUDITOR JOBS CUT -- "The federal government is moving to eliminate the jobs of nearly half of the lawyers at the Internal Revenue Service who audit tax returns of some of the wealthiest Americans, specifically those who are subject to gift and estate taxes when they transfer parts of their fortunes to their children and others."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153754940879784352006-07-24T11:28:00.000-04:002006-07-24T11:29:00.893-04:00

S.E.C. QUIZ MORGAN STANLEY CHIEF -- "Federal regulators will interview Morgan Stanley chief executive John J. Mack within the next two weeks as part of an investigation into possible insider trading at the prominent hedge fund Pequot Capital Management Inc., the investment bank said yesterday."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153513193900490852006-07-21T16:19:00.000-04:002006-07-21T16:19:53.926-04:00

BACKDATING CHARGES FILED -- "The U.S. attorney's office in San Francisco, which a week ago formed a task force to probe corporate backdating of stock-option grants, in a criminal complaint accused former Brocade Communications Systems Inc. chief executive Gregory L. Reyes and former human resources executive Stephanie Jensen of securities fraud."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153509967363733852006-07-21T15:24:00.000-04:002006-07-21T15:26:07.366-04:00

CABINET MEMBER SCAMMING IRS? -- Health and Human Services Secretary Mike Leavitt and his relatives have claimed millions of dollars in tax deductions through a type of charitable foundation they created that until recently paid out very little in actual charity, tax records show.. . . .The tax structure used to create the foundation is called a Type III supporting organization. The Internal

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153509766004692882006-07-21T15:21:00.000-04:002006-07-21T15:22:46.006-04:00

BONDS NOT INDICTED (YET?) -- "Barry Bonds escaped a possible perjury indictment Thursday, but actions by the U.S. attorney's office suggested the government, far from dropping its case, is trying to line up as ironclad a prosecution as possible to go after the Giants slugger."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153509688529431792006-07-19T15:20:00.000-04:002006-07-21T15:21:50.676-04:00

BOGGED DOWN -- with other matters. Blogging light the rest of the week.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153322036383516102006-07-19T11:08:00.000-04:002006-07-19T11:13:56.396-04:00

NO GOOD DEED GOES UNPUNISHED -- When a drought left pastures in a handful of Plains states parched in 2003, ranchers turned to the federal government for help. Officials at the U.S. Department of Agriculture quickly responded with what they considered an innovative plan.They decided to dip into massive stockpiles of powdered milk that the agency had stored in warehouses nationwide as part of its

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153320713224081212006-07-19T10:51:00.000-04:002006-07-19T10:51:53.226-04:00

THE GHETTO TAX -- Drivers from low-income neighborhoods of New York, Hartford and Baltimore, insuring identical cars and with the same driving records as those from middle-class neighborhoods, paid $400 more on average for a year’s insurance.The poor are also the main customers for appliances and furniture at “rent to own” stores, where payments are stretched out at very high interest rates; in

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153320622157692042006-07-19T10:49:00.000-04:002006-07-19T10:50:22.156-04:00

BUSH BLOCKED ETHICS REVIEW -- "Attorney General Alberto R. Gonzales told the Senate Judiciary Committee on Tuesday that President Bush had personally decided to block the Justice Department ethics unit from examining the role played by government lawyers in approving the National Security Agency’s domestic eavesdropping program."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153320575844078082006-07-19T10:48:00.000-04:002006-07-19T10:49:35.846-04:00

DHS CREDIT CARD ABUSE -- Flat-bottomed rescue boats at double the retail price, $68,500 worth of unused dog booties, hundreds of thousands of dollars’ worth of computers that somehow disappeared and a $227 beer brewing kit.These are just a few of the questionable purchases that Congressional auditors have found by digging through half a year of credit card records from the Homeland Security

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153320498170328182006-07-19T10:47:00.000-04:002006-07-19T10:48:18.186-04:00

MEDICAL DEVICE KICKBACK SETTLEMENT -- "Medtronic said it had agreed to pay the federal government $40 million to settle accusations that its spinal-implant division paid kickbacks to doctors to induce them to use its products. The DOJ said that from 1998 to 2003 the Minnesota-based medical device maker paid doctors kickbacks through 'sham consulting agreements, sham royalty agreements and lavish

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153231241254042712006-07-18T09:59:00.000-04:002006-07-18T10:00:41.256-04:00

MILBERG WEISS ARRAIGNMENT -- (From yesterday:) "After the court finally found a judge who didn’t recuse him or herself from the case, Milberg Weiss Bershad & Schulman is expected to plead not guilty today to criminal charges before U.S. District Judge John Walter in Los Angeles. The two name partners individually indicted — David Bershad and Steven Schulman — are also expected to plead not guilty

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153231169597741922006-07-18T09:58:00.000-04:002006-07-18T09:59:29.596-04:00

SENATE CANDIDATE UNDER INVESTIGATION? -- "It looks like the Justice Department finally may have become as fascinated by Rep. Katherine Harris' (R-FL) deeds as we have been, lo these many months. Justice Department lawyers and FBI agents have recently interviewed Ed Rollins, Harris' former Senate campaign manager, about her dealings with admitted briber Mitchell Wade and his company, MZM, the

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153231115633681112006-07-18T09:56:00.001-04:002006-07-18T09:58:35.633-04:00

ONLINE GAMBLING ARREST -- "In a sharp escalation of their crackdown on Internet gambling, United States prosecutors said yesterday that they were pressing charges against the chief executive of BetOnSports, a prominent Internet gambling company that is publicly traded in Britain, and against several other current and former company officers." See also WSJ Law Blog.And the fallout for his company

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153231004758282122006-07-18T09:56:00.000-04:002006-07-18T09:56:44.760-04:00

NO BRAINER -- "Bowing to criticism from Democratic and Republican House leaders, a congressionally chartered historical society dropped plans Monday to include imprisoned former Rep. Randy ''Duke'' Cunningham in a tribute to retiring members of Congress."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153230962807546752006-07-18T09:55:00.000-04:002006-07-21T15:20:50.616-04:00

TROUBLE AT THE FBI -- "The Justice Department has concluded there is "reasonable cause" to believe that senior FBI officials retaliated against the bureau's highest-ranking Arabic speaker for complaining that he was cut out of terrorism cases despite his expertise."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1153230911925355562006-07-17T09:54:00.000-04:002006-07-18T09:55:11.936-04:00

TIED UP -- and away from the blog today. Back tomorrow, though.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152988550234881582006-07-15T14:34:00.000-04:002006-07-15T14:35:50.236-04:00

CORRUPTION WITHIN BORDER PATROL -- Federal law enforcement officials are investigating a series of bribery and smuggling cases in what they fear is a sign of increased corruption among officers who patrol the Mexican border.Two brothers who worked for the U.S. Border Patrol disappeared in June while under investigation for smuggling drugs and immigrants, and are believed to have fled to Mexico.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152988258021031092006-07-15T14:30:00.000-04:002006-07-15T14:30:58.023-04:00

GREENBERG TRAURIG RECORDS SUBPOENAED -- The House Government Reform Committee has subpoenaed the former law firm of convicted lobbyist Jack Abramoff for records of any contacts he or members of his lobbying team had with the Bush White House.Chairman Thomas M. Davis III (R-Va.) authorized a subpoena weeks ago to Greenberg Traurig, according to several of the law firm's former clients who have

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152988165384806442006-07-15T14:28:00.000-04:002006-07-15T14:29:25.396-04:00

HOUSE ETHICS PROGRESS REPORT -- Representative John A. Boehner won the job of House majority leader amid a post-Abramoff clamor for an overhaul of lobbying and ethics rules. But nearly six months later, the changes are still tied up in Congress.And far from trying to put the brakes on lobbyists and the money they channel into Republican coffers, Mr. Boehner, who has portrayed his ties to

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152886560581450442006-07-14T10:13:00.000-04:002006-07-14T10:16:00.583-04:00

GOVERNMENT SETS UP ITS OWN TASK FORCE -- Yesterday we told you about Proskauer Rose's new stock options task force. Well: "On cue, the U.S. Attorney in San Francisco announced today the formation of a local stock options backdating task force."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152886355502472032006-07-14T10:11:00.000-04:002006-07-14T10:12:35.503-04:00

PRIME MINISTER'S QUESTIONS -- Tony Blair will fly off on his summer holiday knowing that on his return he will be the first serving British prime minister to be interviewed by police in a corruption investigation. Downing Street publicly denied again yesterday having been given any indication that the Prime Minister would be interviewed by the Scotland Yard team of detectives leading the

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152886255997395832006-07-14T10:07:00.000-04:002006-07-14T10:10:55.996-04:00

ANTI-TRUST CONFUSION IN EU -- A European Union court on Thursday tossed out the approval of the two-year-old merger that created Sony BMG and had blunt criticism for the regulators that endorsed the union. For the first time in its history, the European Court of First Instance in Luxembourg entirely voided the approval of a company combination, plunging the music industry into confusion and

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152886003646776922006-07-14T10:05:00.000-04:002006-07-14T10:06:43.646-04:00

ARYAN BROTHERHOOD LEADERS FACE RICO CHARGES -- "The four are charged with participating in 15 murders or attempted murders under the Racketeer Influenced and Corrupt Organization laws, which have been used to prosecute Mafia families and other criminal groups. Federal prosecutors called the case against the Aryan Brotherhood, the result of four years of investigation, the largest death penalty

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152885766942384102006-07-14T10:01:00.000-04:002006-07-14T10:02:46.943-04:00

FCC FRAUD SETTLEMENT -- "Money manager Mario Gabelli and companies affiliated with him agreed yesterday to pay $130 million to settle allegations that he used sham companies to buy cellphone licenses under a federal program for small and minority-owned businesses." See also WSJ Law Blog.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152885597784945112006-07-14T09:58:00.000-04:002006-07-14T09:59:57.783-04:00

MEXICAN ELECTION MESS -- "Leftist presidential candidate Andrés Manuel López Obrador widened his allegations Thursday that government and private groups conspired against his candidacy, and he claimed there was enough fraud to annul the extremely close July 2 balloting." Sort of reminds me of something...

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152885492386443592006-07-14T09:56:00.000-04:002006-07-14T09:58:12.396-04:00

LOBBYIST CONVICTED IN U.N. SCANDAL -- A U.S. federal jury convicted South Korean lobbyist Park Tong-sun on Thursday for acting as an unregistered agent for the former Iraqi regime under Saddam Hussein.The jury in New York found Park, 71, had lobbied high-level U.N. officials to remove sanctions imposed on Iraq for its invasion of Kuwait in 1990. The prosecution claimed he received at least US$2.5

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152805396210601752006-07-13T11:33:00.000-04:002006-07-13T11:43:16.210-04:00

YOU HAVE TO BE KIDDING -- "One year after the Department of Homeland Security created a high-level post for coordinating U.S. government efforts to deal with attacks on the nation's critical technological infrastructure, the agency still has not identified a candidate for the job." So much for homeland security.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152804810025399792006-07-13T11:32:00.000-04:002006-07-13T11:33:30.026-04:00

ANOTHER ENRON LAWSUIT -- But this one is interesting: "Bolivia's government said on Friday it would sue former executives of U.S. energy company Enron as well as ex-government officials for fraud in relation to a natural gas pipeline to Brazil built in the 1990s." (emphasis added).

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152804716745128112006-07-13T11:30:00.000-04:002006-07-13T11:31:56.746-04:00

SAN JOSE MAYOR ALLEGEDLY CORRUPT -- "The embattled but defiant mayor of San Jose was arraigned Monday on public corruption charges stemming from a secretly negotiated deal with a garbage contractor that cost taxpayers more than $11 million."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152804614574583732006-07-13T11:29:00.000-04:002006-07-13T11:30:14.576-04:00

CREDIT-RATING INDUSTRY REFORM -- "Retooling the credit-rating industry, dominated by Standard & Poor's and Moody's Corp., would address one of the last major issues many business and consumer groups raised in response to a string of corporate scandals in recent years, beginning with the meltdown of energy trader Enron Corp. in the fall of 2001, which cost thousands of employees their jobs and

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152804570104135472006-07-13T11:28:00.000-04:002006-07-13T11:29:30.106-04:00

WHY RUSSIA IS SO WEAK -- There are lots of reasons, but here is one example: "But in November, William Browder was turned away at the Moscow airport. Browder wasn't told why, but he says he believes he ran afoul of someone influential because of his outspoken criticism of Russian corporate governance. Since then, he's been unable to get a visa to return to Russia, even though his Hermitage

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152804198932171432006-07-13T11:22:00.000-04:002006-07-13T11:23:18.933-04:00

AND NOW THE CIVIL SUITS -- "An Indian tribe sued the former superlobbyist Jack Abramoff and Ralph Reed, a candidate for lieutenant governor in Georgia, on Wednesday, seeking millions of dollars in lost revenues from a casino that the Texas tribe said had been fraudulently closed." See also Dallas Morning News.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152804108173235012006-07-13T11:20:00.000-04:002006-07-13T11:21:48.173-04:00

WAL-MART SHIFTS POLICY ON SHOPLIFTING -- "According to internal documents, the company, the nation’s largest retailer and leading destination for shoplifting, will no longer prosecute first-time thieves unless they are between 18 and 65 and steal merchandise worth at least $25, putting the chain in line with the policies of many other retailers." Will this generosity lead to an increase in

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152803998804565122006-07-13T11:18:00.000-04:002006-07-13T11:19:58.803-04:00

STOCK OPTIONS TASK FORCE -- At least one law firm has formed one, suggesting there is a long way to go (and alot of fees to be earned) until this scandal sorted out.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152803881582649222006-07-13T11:15:00.000-04:002006-07-13T11:18:01.583-04:00

KPMG DEFENDANTS SEEK PAYMENT OF FEES -- Following Judge Kaplan's decision admonishing prosecutors for pressuring KPMG to cut off the payment of legal fees to its employee-defendants in the ongoing tax shelter case, the defendants have filed a civil suit against KPMG seeking payment.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152803285947088642006-07-13T11:05:00.000-04:002006-07-13T11:08:05.960-04:00

IRS GETS WIN IN TAX SHELTER CASE -- In 1996, Coltec, an industrial concern, reported a capital loss of approximately $380 million on its consolidated tax return. It generated the loss through a transaction structured by Arthur Andersen, creating a special-purpose entity and then selling it high-basis stock for a relatively low price. The IRS disallowed the loss and assessed additional taxes,

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152722406540946462006-07-12T12:39:00.000-04:002006-07-12T12:40:06.543-04:00

EU FINES MICROSOFT -- "Microsoft has been fined 280.5m euros ($357m; £194m) by the European Commission for failing to comply with an anti-competition ruling."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152722363619011352006-07-12T12:37:00.000-04:002006-07-12T12:39:23.646-04:00

MEXICAN MONEY LAUNDERING CELL IDENTIFIED -- "Lorenzo Arce Flores' principal money laundering method is the smuggling of U.S. currency into Mexico. It is then converted into Mexican Pesos through a number of money service businesses (commonly referred to as "casas de cambio" or "centros cambiarios") that he or AFO lieutenant Jesus Abraham Labra Aviles own or control. Two key Arce Flores operatives

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152714145825781562006-07-12T10:21:00.000-04:002006-07-12T10:22:25.826-04:00

BONDS TO BE INDICTED FOR PERJURY? -- WCC Prof Blog discusses.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152714067104475262006-07-12T10:19:00.000-04:002006-07-12T10:21:07.106-04:00

BACKDATING SCANDAL GAINS MOMENTUM -- "For the first time in the mushrooming stock options-timing scandal, there is indication that a company’s employees knew that manipulating the dates of stock-options grants might be a no-no in the eyes of auditors." See also WSJ Law Blog (discussing defense of backdating practice by WSJ columnist).

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152713804998983422006-07-12T10:15:00.001-04:002006-07-12T10:16:45.000-04:00

Update -- HOUSE APPROVES LIMITS ON INTERNET GAMBLING -- "The House easily approved a bill yesterday to curb online poker games, sports betting and other Internet-based wagering that gained infamy as a central focus of a major lobbying scandal."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152713745467632662006-07-12T10:15:00.000-04:002006-07-12T10:15:45.466-04:00

STATE DEP'T HIT BY HACK ATTACK -- The State Department is recovering from large-scale computer break-ins worldwide over the past several weeks that appeared to target its headquarters and offices dealing with China and North Korea, The Associated Press has learned.Investigators believe hackers stole sensitive U.S. information and passwords and implanted backdoors in unclassified government

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152713182737387662006-07-12T10:05:00.000-04:002006-07-12T10:06:22.736-04:00

IRAQ RECONSTRUCTION CONTRACT CANCELLED -- "The Army is discontinuing a controversial multibillion-dollar deal with oil services giant Halliburton Co. to provide logistical support to U.S. troops worldwide, a decision that could cut deeply into the firm's dominance of government contracting in Iraq." Halliburton and the Army had been heavily criticized for what some claimed to be a sweetheart

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152713050546007672006-07-12T10:03:00.000-04:002006-07-12T10:04:10.556-04:00

CAPITOL SEARCH RULING REAX -- "When the F.B.I. searched the offices of William Jefferson, the scandal-plagued Democratic congressman from Louisiana, it produced a rare moment of bipartisanship. Leaders of both parties insisted that the search infringed on the rights of Congress. This week, Thomas Hogan, a federal district court judge in Washington, gave Congress a much-needed reminder that no one

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152629846412219282006-07-11T10:55:00.000-04:002006-07-11T10:57:26.440-04:00

TREASURY OFFICIAL DEFENDS FIN DATA MONITORING PROGRAM -- As this Committee knows well, tracking and combating terrorist financing are critical facets of our overall efforts to protect our citizens and other innocents around the world from terrorist attacks. This is true for two main reasons. First, when we block the assets of a terrorist front company, arrest a donor, or shut down a corrupt

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152626673715313512006-07-11T10:03:00.000-04:002006-07-11T10:04:33.716-04:00

LESSONS FROM THE MEXICAN ELECTION -- "Mexico is likely to weather the controversy over its photo-finish election despite the protestors that losing candidate Andrés Manuel López Obrador brought into the streets on Saturday to claim the election had been stolen. Mexico's nonpartisan National Election Commission has built up a decade of credibility in running clean elections and international

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152626477792526772006-07-11T10:00:00.000-04:002006-07-11T10:01:17.793-04:00

PROSECUTORS NARROW FOCUS IN DEUTSCHE BANK PROBE -- "The criminal investigation of Deutsche Bank covers several types of shelters, but in recent months prosecutors have been focusing on a shelter known as Cards that was sold through a California investment firm once known as MyCFO.com. That firm was founded in 1999 by James H. Clark, a founder of Netscape Communications, to manage the wealth of

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152626310450142242006-07-11T09:57:00.000-04:002006-07-11T09:58:30.450-04:00

DRUG PLANS MISLEAD CONSUMERS -- Federal investigators said Monday that Medicare prescription drug plans generally provided incomplete and inaccurate information to callers who asked questions about the new benefit. The findings, from the Government Accountability Office, a nonpartisan investigative arm of Congress, are significant because the premise of the new program is that consumers will make

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152626229960480202006-07-11T09:56:00.000-04:002006-07-11T09:57:09.970-04:00

METH TIED TO GROWTH IN ID THEFT -- "Meth users — awake for days at a time and able to fixate on small details — were looking for checks or credit card numbers, then converting the stolen identities to money, drugs or ingredients to make more methamphetamine. For these drug users, Mr. Morales said, identity theft was the perfect support system."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152625897361062532006-07-11T09:51:00.000-04:002006-07-11T09:51:37.363-04:00

DOOLITTLE PAC UNDER SCRUTINY -- "In the past two years, campaign and political action committees controlled by Rep. John T. Doolittle (R-Calif.) paid ever-larger commissions to his wife's one-person company and spent tens of thousands of dollars on gifts at stores such as Saks Fifth Avenue and Tiffany & Co. and a Ritz-Carlton day spa."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152625527740954072006-07-11T09:44:00.000-04:002006-07-11T09:45:27.740-04:00

COULTER ACCUSED OF PLAIGARISM -- "The syndicator of Ann Coulter’s newspaper column is looking into allegations that the right-wing pundit has lifted material from other sources."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152625388489149602006-07-11T09:40:00.000-04:002006-07-11T09:44:36.900-04:00

BILL TO BAN INTERNET GAMBLING (AGAIN) -- Gamblers who prefer their laptops to blackjack tables won't like what Congress is doing. On Tuesday, the House plans to vote on a bill that would ban credit cards for paying online bets and could padlock gambling Web sites.The legislation would clarify existing law to spell out that it is illegal to gamble online.To enforce that ban, the bill would

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152625069132542802006-07-11T09:34:00.000-04:002006-07-11T09:37:49.146-04:00

JEFFERSON SEARCH UPHELD -- "'"Congressman Jefferson's interpretation of the speech or debate privilege would have the effect of converting every congressional office into a taxpayer-subsidized sanctuary for crime,' said [federal district judge Thomas] Hogan, who had approved the search warrant for the May 20-21 search of Jefferson's office." See also WaPo; NYT; Instapundit.The case will no doubt

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152554929806691092006-07-10T13:48:00.000-04:002006-07-10T14:08:50.060-04:00

NEWS & NOTES --Further disclosure of Abramoff visits to the White House: "The appointments included a meeting with a domestic policy aide to Vice President Cheney and a meeting in the Office of Faith-Based and Community Initiatives attended by about 40 people. The logs also reflect that Abramoff attended one or more social events, as well as a gathering of Indian tribal officials and state

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152283647125227062006-07-07T10:44:00.000-04:002006-07-07T10:47:27.126-04:00

CHICAGO PATRONAGE SCANDAL (AND THE SUN ROSE IN THE EAST) -- "A jury convicted four former city officials here on corruption charges Thursday, sending a resounding message, prosecutors said, that City Hall's legendary patronage machine should come to a halt." See also WaPo (discussing political impact on Chicago Mayor Richard M. Daley).

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152282502849046862006-07-07T10:18:00.000-04:002006-07-07T10:44:04.140-04:00

NEWS & NOTES -- Missed from yesterday, Boeing and DOJ entered into a non-prosecution agreement with some unusual features (See also WSJ Law Blog.): In the agreement, which covers a two-year period, Boeing agrees not to commit any criminal offenses related to stealing of other companies' sensitive procurement information or the laws governing federal bribery, graft and conflict of interest. But

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152197972024045582006-07-06T10:44:00.000-04:002006-07-07T10:28:49.026-04:00

NEWS & NOTES -- Western Union has blocked scores of wire transfers on terrorist finance suspicions based on the names of senders and recipients, the company disclosed.According to WSJ Law Blog, the options timing scandal has cost Mercury Interactive $70 million in legal fees.Prosecutors have sent a letter to Judge Kaplan objecting to his harsh tone in slapping the government for pressure KPMG to

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152197028391997172006-07-06T09:46:00.000-04:002006-07-06T10:43:51.496-04:00

KEN LAY'S PASSING -- It has been big news, so here's a brief round-up:The Man:NYT opines: "A true bootstraps story, Mr. Lay's life seemed at first scripted by Horatio Alger, now by Theodore Dreiser. With his folksy charm, the preacher's son who grew up poor in Missouri captivated the nation's attention in a way that Jeffrey Skilling, the former McKinsey consultant who was Mr. Lay's co-defendant,

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152112540758568452006-07-05T11:12:00.000-04:002006-07-05T11:15:40.773-04:00

PROFILE OF INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION -- "His office in the Crystal City neighborhood of Arlington across the Potomac offers a stunning view of the Washington power structure that created one of the most influential investigative jobs in the world. He has near carte blanche to probe how the administration has managed nearly $70 billion in Iraqi and U.S. taxpayer rebuilding money.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152110936838099962006-07-05T10:48:00.000-04:002006-07-05T10:48:56.840-04:00

PROFILE OF AN IDENTITY THIEF -- "By the time of Shiva Brent Sharma's third arrest for identity theft, at the age of 20, he had taken in well over $150,000 in cash and merchandise in his brief career. After a certain point, investigators stopped counting."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152110469936020902006-07-05T10:40:00.000-04:002006-07-05T10:41:09.936-04:00

THE FIGHT OVER INTERNET GAMBLING -- "Faced with bills to curb online betting, which attracts an estimated $12 billion a year in wagers worldwide, an array of interest groups like casinos here and abroad, as well as sports leagues, antigambling coalitions and even poker players, has dispatched lobbyists to argue what should be legal and what should not."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152110116461239912006-07-05T10:34:00.000-04:002006-07-05T10:35:16.463-04:00

"CORRUPTICUT," LAND OF THE SCANDAL -- "There was the mayor who liked to be plied with $100-plus bottles of Bordeaux. The governor who took a free hot tub. The state senator who was given a job that paid $30,000 for doing nothing -- and then demanded a raise."

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152110055112970452006-07-05T10:32:00.000-04:002006-07-05T10:34:15.116-04:00

NEW EFFORT TO FIGHT GOV'T WASTE/FRAUD/ABUSE -- While advocating for openness, Mr. Coburn is also placing a philosophical bet that the more the public learns about federal spending, the less it will want. "Sunshine's the best thing we've got to control waste, fraud and abuse," he said. "It's also the best thing we've got to control stupidity. It'll be a force for the government we need."But Mr.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152109909509712252006-07-05T10:26:00.000-04:002006-07-05T10:31:49.510-04:00

FIGHTING TERRORIST FINANCE -- WaPo profiles Stuart Levey, the Tresury official responsible for the financial intelligence and terrorist finance. See also WSJ Law Blog.

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152109542992057652006-07-05T10:22:00.000-04:002006-07-05T10:25:42.993-04:00

DIGESTING THE KPMG DECISION -- No doubt that law firms are burning up the information superhighway with analysis of the recent KPMG decision that slapped the DOJ for pressuring corporations not to pay the legal bills of their employee-defendants. See, e.g., WSJ Law Blog (discussing Wachtell's guidance to clients).

file editornoreply@blogger.comtag:blogger.com,1999:blog-27929713.post-1152109370058032882006-07-05T10:21:00.000-04:002006-07-05T10:36:29.443-04:00

FARM SUBSIDIES GO TO RICH PEOPLE WHO AREN'T FARMERS -- Even though Donald R. Matthews put his sprawling new residence in the heart of rice country, he is no farmer. He is a 67-year-old asphalt contractor who wanted to build a dream house for his wife of 40 years.Yet under a federal agriculture program approved by Congress, his 18-acre suburban lot receives about $1,300 in annual "direct payments,

file editornoreply@blogger.com