White Collar Crime Prof Blog

In the News and Around the Blogosphere

Eric Torbenson & Brendan Case, Dallas Morning News, Dallas Attorney charged with conspiracy here; DOJ Press Release, Attorney Indicted for Conspiracy and Wire Fraud in Stock Registration and Manipulation Scheme

Thomas Zambito & Corky Siemaszko, Daily News, What was Ponzi con Bernie Madoff worth? $826 million, claim court papers filed by lawyer Ira Sorkin

Andy Vuong, Denver Post, Nacchio may file for review next week

Marisa McQuilken, BLT Blog, Treasury's TARP Office Needs Lawyers

DOJ Press Release, Director of Singapore Firm Pleads Guilty to Illegally Exporting Controlled Aircraft Components to Iran

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Conferences

ALI/ABA Confidentiality and Attorney-Client Communications, March 31 Webcast here

ABA, Recognizing and Defending Against Foreign Corrupt practices Act Violations, April 2 Webcast here

ABA, Ethics, Politics, and Public Corruption, April 3 Birmingham, Alabama here

2nd Annual Global Anti-Corruption Summit USA 2009, May 14-15, Washington, D.C. here.

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Madoff- Raising the Bail Issue

The trial court sent Bernie Madoff to jail upon his entering of a guilty plea (see here).  He has now appealed to a higher court for his release pending his sentencing.  See Chad Bray, WSJ, Madoff Appeals Jailing; Thomas Zambito & Corky Siemaszko, Daily News, Bernard Madoff's lawyer Ira Sorkin appeals to spring Bernie from jail

(esp)(blogging from Cambridge, Massachusetts)

Nacchio: A New Direction

The Tenth Circuit recently reinstated the convictions of former CEO of Qwest Communications International, Inc, Nacchio. (see here) But the decision was a close one at 5-4.  Nacchio is now presenting new evidence and asking the court to consider this new evidence and also to provide bail pending the resolution of this matter.

What is particularly fascinating here, is that normally the government is the one who obtains favorable evidence in a parallel civil proceeding and the defense may be contesting the use of this evidence in a criminal case.  This case finds a reverse scenario, in that the evidence the defense wants the court to consider was evidence obtained in a SEC deposition.  As the court typically allows the prosecution to use parallel proceeding evidence, then shouldn't it also be permitted for use by the defense?  Now there are other considerations that the court will need to consider here, such as the timing of obtaining this evidence and whether it is inconsequential or harmless evidence.  But from a fairness perspective, it would seem that if the government can use evidence from a parallel proceeding, then the defense should have the same benefit.  It may be particularly important here with the close vote on the case and new evidence that goes to an issue before the court.

Motion for a New Trial Pursuant to Federal Rule of Crim Proc 33 - Download Motion

(esp)(blogging from Cambridge, Massachusetts)

Madoff Pleads

There  were no surprises in Bernie Madoff entering a guilty plea today as the indications of this had been broadcast for several days. (see here and here) To read a transcript of the proceedings see here.  He admits his guilt and explains how he concealed his fraud.  He also states that "other business [his] firm engaged in, proprietary trading and market making, were legitimate, profitable, and successful in all respects.  Those businesses were managed by [his] brother and two sons." Perhaps some were surprised that he was taken immediately into custody.  In many white collar cases the accused remains free on bail while the case is pending.  Individuals have remained free in some cases after conviction while the case is pending on appeal (see here).  The applause in the courtroom upon sending Madoff to jail says it all - the victims wanted retribution and they wanted it now.

See Chad Bray & Amir Efrati, WSJ, Madoff Pleads Guilty to Massive Fraud; Diana B. Henriques & Jack Healy, Madoff Goes to Jail After Guilty Pleas to All Charges

Official documents related to the Madoff case can be accessed here and here.

(esp) (w/ thanks to Whitney Curtis)

In the News and Around the Blogosphere

Larry Neumeister & Tom Hayes, AJC (AP), Madoff to plead guilty, could face up to 150 years; Diana B. Henriques, NYTimes, Madoff Guilty Plea Expected; He Could Face Life in Prison; Robert Chew, Time, No Deal for Madoff, As Victims Prepare to Face Him in Court; Dealbook, NYTimes, Madoff Lawyer Responds to $177 Billion Forfeiture Demand

Brian Baxter, American Lawyer, Madoff Lawyers' Alliance Pushes for International Financial Court

David Ingram, BLT Blog, What do Harvard and Bernie Madoff Have in Common?

Mike Scarcella, BLT Blog, New DOJ Team in Stevens Case Makes Courtroom Debut

DOJ Press Release, Former Congressional Staffer Pleads Guilty to Conspiracy to Commit Honest Services Fraud

DOJ Press Release, Hitachi Displays Agrees to Plead Guilty and Pay $31 Million Fine for Participating in LCD Price-Fixing Conspiracy - Hitachi to Plead Guilty to Fixing Prices for LCD Panels Sold to Dell Inc.

FBI is Seeking Victims in the Stanford Financial Group Case here

Lynne Marek, NLJ, Judge rejects effort by ex-Illinois governor to bounce U.S. attorney from corruption case

Edith Honan (editing Alan Elsner) Reuters, Cyrus Vance Jr seeks Manhattan top prosecutor job

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Where Did They Graduate?

Chronicle of Higher Education has a piece that names the institutions for some of what they call "disgraced alums."  To be evenhanded, they couple this with a recognition of a famous grad of the institution.  See here  (subscription required).

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New Sentencing Article

Andrew George, Alexandra Walsh, and Bridget Moore, attorneys with Baker Botts LLP, authored a new article in 9 Criminal Litigation (2009) titled "Kimbrough, White Collar Sentencing, and the New Primacy of the Sentencing Commission."  One point made in this article is that "in this new era of commission primacy, defendants may not make much headway focusing on sentencing factors available only to the wealthy, white collar offenders.  Rather, they are probably better served by highlighting factors available to all - factors like age, health, lack of criminal history, commitment to family, or community service."

It is posted here -  Download aba_crim_lit_article_cropped.pdf with permission and a thank you.

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In the News and Around the Blogosphere

Allan Lengel, Tickethewire.com, Uncertainty Abounds When it Comes to Appointments of U.S. Attorneys

John Pacenti, Daily Business Review, law.com, Black Market Peso Exchange at Issue in Kuehne Money-Laundering Case

DOJ Press Release, N.J. Industrial Pipes Supply Company and its Co-Owner Plead Guilty to Fraud at Two N.J. Superfund Sites

Doug Berman, Sentencing Law & Policy, "The Libby Letters: Reflections on Sentencing and Mercy in a Post-Booker World" (discussing Professor Scott Sundby's new article on SSRN)

Jeralyn, TalkLeft, Ted Wells Discusses Scooter Libby's Conviction

WSJ Blog, Former KB Home CEO Karatz Indicted on Backdating Charges

WSJ Blog, The UBS Tax Probe: Are Execs Next To Face Prosecution?; David Voreacos & Ryan Donmoyer, Bloomberg, UBS Says It Won’t Turn Over More Names in IRS Suit ; Evan Perez, Wall St Jrl, U.S. Pushes for Crackdown on Tax Havens

Forexpros.com, Reuters, Ex-Qwest CEO to report to Penn. prison

DOJ Press Release, Former Staff Member in U.S. House of Representatives Indicted on Corruption Charges

DOJ Press Release,  Former U.S. Tax Court Official Sentenced for Engaging in a Conspiracy to Commit Bribery

Michael Powell, NYTimes, Mortgage Fraud Case Poses Federal Quandary

AP, NYTimes, Ex-Official at NASA Is Indicted

Brian Wlash & Tiffany Joslyn, Real Clear Politics, Congress's Hammer: Another Criminal Law

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