White Collar Crime Prof Blog

In the News & Around the Blogosphere

Jeff Jeffrey, BLT Blog, Former U.S. Attorney Joins Hughes Hubbard & Reed

DOJ Press Release, Former Michigan School Official Sentenced to Serve 46 Months in Jail for Role in Fraud Scheme

Alison Frankel, AmLaw Litigation Daily, Delaware Court Orders D&O Insurer to Cough Up Legal Fees for Criminal Defense (w/ a hat tip to Clark Furlow)

Bob Johnson, Montgomeryadvertiser, AP, Siegelman, Scrushy seek review from appeals court

Mary Williams Walsh, NYTimes, Inquiry Asks Why A.I.G. Paid Banks

Mary Flood, Houston Chronicle, Judge sets Skilling's resentencing for July (w/ a hat tip to Bill Olis)

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30 and 25 Year Sentences in White Collar Case

For those who might be thinking that white collar offenders will not face heavy sentences in a post Gall and Rita world -  today's sentences prove otherwise. A DOJ Press Release tells that "[t]wo former National Century Financial Enterprises (NCFE) executives were sentenced today for their roles in a scheme to deceive investors about the financial health of NCFE," with one receiving a sentence of 30 years and 3 years of supervised release following the prison term, and the other being sentenced to 25 years in prison and 3 years of supervised release following the prison term. The first individual, age 65, who served as the "president, owner and chief executive officer of NCFE," also was sentenced to a concurrent sentence of 10 years in prison.  The former "chair[ ], secretary, treasurer, director and owner of NCFE, age 60, who received the 25 year sentence was convicted of conspiracy, securities fraud, wire fraud and money laundering. The press release states that she "fled after the conviction and remains at large."  In addition to the prison sentences, the court also ordered the two "to forfeit $1.7 billion of property representing the proceeds of the conspiracy and to pay restitution of $2.3 billion, jointly and severally with other defendants."  The joint and several part may be an issue with one party still at large.  The press release notes that "NCFE, formerly based in Dublin, Ohio, was one of the largest healthcare finance companies in the United States until it filed for bankruptcy in November 2002."

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In the News & Around the Blogosphere

DOJ Press Release, Miami Doctor and Chemist Plead Guilty in HIV Infusion Fraud Scheme

David Ingram, BLT Blog, 3 Top Justice Department Nominees Move Forward

Lynne Marek, NLJ, Chicago U.S. attorney indicts two lawyers on mortgage fraud charges

USA Today (AP), FBI Says It's Speeding Up Some Financial Probes

Amy Zipkin, NYTimes, A Help-Wanted Sign for Fraud Investigators

Vesselin Mitev, NYLJ, law.com, Judge Freezes Assets of Madoff's Brother

DOJ Press Release, Sixth Aegis Company Principal Sentenced in Chicago to Ten Years in Prison for His Part in Firm’s $60 Million Tax Fraud Conspiracy

Christine Hanley, LA Times, Probation report urges 6 years in prison for Carona - The former Orange County sheriff was acquitted on most charges but convicted of witness tampering.

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In the News & Around the Blogosphere

DOJ Press Release, Veterans Affairs Official to Plead Guilty to Conspiracy and Wire Fraud

Doug Berman, Sentencing Law & Policy Blog, Disparities Seen in Federal Securities Fraud Sentences

Press Release, Attorney General Cuomo Announces Sweeping Indictment in Pay-To-Play Kickback Scheme at the New York State Comptroller's Office

Ashby Jones, WSJ Blog, Bernie’s Prison Number Comes up Big for Queens Man

Ashby Jones, WSJ Blog, Alarm Bells for Allen? Stanford Financial’s No. 2 to Cooperate With the Feds

DOJ Press Release, Irish Trading Firm and Its Officers Charged in Scheme to Supply Iran with Sensitive U.S. Technology

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Experts in White Collar Cases - The Goyal Case

In the Nacchio case (see here), the defense was precluded from having an expert witness testify.  In the Goyal case (see here), the issue is that the prosecution failed to provide an expert witness to show that there was a GAAP violation. It is interesting to see the importance of expert testimony in white collar cases -- cases that tend to be more complicated and require educating the jury on the technicalities of transactions.

The National Association of Criminal Defense Lawyers (NACDL) has filed an amicus brief in the Goyal case arguing that the government was required to "offer expert testimony that a GAAP violation in fact occurred."  As stated in the brief, "a jury should not be treated as a team of accountants and asked to interpret and apply GAAP without expert guidance." (note- a similar issue, although not the same circumstances, was discussed in the  Rigases and Ebber's case - see here).  This is a particularly interesting issue as the need for an expert has been noted in civil accounting cases. The amicus brief notes that "the need is even more pressing in criminal cases, where the burden of proof of each element is higher- beyond a reasonable doubt, rather than merely by a preponderance of the evidence." The brief also examines the mens rea requirement for corporate officers.

NACDL Amicus Brief in U.S. v. Goyal - Download U.S._v._Goyal_Amicus_Brief

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In the News & Around the Blogosphere

DOJ Press Release,Former Hospital Executive Pleads Guilty to Paying Kickbacks in 'Skid Row' Healthcare Fraud Scheme

Nate Carlisle, Salt Lake Tribune, Utah:  Where the con is on

DOJ Press Release, Veterans Affairs Official to Plead Guilty to Conspiracy and Wire Fraud

Chicago Breaking News Center (Chicago Tribune), Sanchez Convicted of Rigging City Hiring

Jennifer A. Dlouhy, Houston Chronicle, High court justices skeptical on Enron exec

DOJ Press Release, Two Doctors and Two Medical Assistants Plead Guilty in $10 Million Medicare Fraud Scheme

DOJ Press Release, Former Accounting Firm Vice Chairman and Board Member Pleads Guilty to Tax Fraud Related to Tax Shelters Claiming Over One Billion Dollars of Fraudulent Tax Losses (Download Plea_Agreement)

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Conferences

Institute of Continuing Legal Education in Georgia, Corporate Internal Investigations, March 20 - see Download corporate_internal_investigations_seminar_march_20.pdf

14th Annual LatCrit Conference - OUTSIDERS INSIDE:   CRITICAL OUTSIDER THEORY AND PRAXIS IN THE POLICYMAKING OF THE NEW AMERICAN REGIME - see Download latcrit_xiv_call_for_papers_and_panels_final_march9noon1.doc

Federal Sentencing Guidelines - The Annual National Seminar - June 10-12, New Orleans here

ABA, Criminal Accountability for Civilians in the Battle Space, March 19, webcast here

ABA, The 19th Annual National Institute on Health Care Fraud, May 13-15 here

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In the News & Around the Blogosphere

DOJ Press Release, Third Defendant Pleads Guilty to Money Laundering Scheme Involving Bribes for Contracts at Kuwait Army Base

David Hechler, Corporate Counsel, Did compliance programs fail the test during the financial industry meltdown?

Chad Brey, WSJ, DOJ Releases Letters By Victims Regarding Madoff Plea

Brent Kendall, WSJ, FBI Ramps Up Probes of Financial, Mortgage Fraud

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