White Collar Crime Prof Blog

The New SEC

PBS Nightly Business report had an exclusive interview with SEC Chair Mary Schapiro and one particular interchange caught my eye/ear. Schapiro was asked by Stephanie Dhue whether more people were calling in with tips about Ponzi schemes. Noting the backdrop of the Madoff scandal, SEC Chair Schapiro was asked what they were doing with this information.  The response:

"We receive close to a million tips per year at the agency and we need to handle them better and more effectively then we have historically, and we are reviewing from A to Z our process so we can be more effective with them.  But I tell you the number of Ponzi schemes that we are detecting early on and stopping, shutting down immediately has grown dramatically in the time that I've been here and I think to quote Warren Buffet, 'when the tide goes out we see who's been swimming naked' and that's what happened with Ponzi schemes.  They can't maintain the scheme in more difficult economic times and as a result they are being exposed earlier on."

It will be interesting to see what the A to Z review produces and whether there will be a strong "effective program" of compliance implemented by the SEC.

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In the News & Around the Blogosphere

Paul N. Monnin & R. Joseph Burby IV, Legal Times (law.com), Dead Companies Can Tell Tales - After a bankruptcy, corporate officers may no longer control the privilege

Askby Jones, WSJ Blog, Joe Nacchio Reports to FCP Schuylkill

Emily Chasan, Reuters,Ex-Deloitte exec loses bid to dismiss trading case

Pamela A. MacLean, National LJ, law.com, Many GCs Still Fighting Backdating Charges

Mike Robinson, law.com (AP), Former Ill. Governor Headed for Arraignment Despite Uncertainty Over Legal Team; Chicago Tribune, Blagojevich pleads not guilty

Kieran Crowley, New York Post, Jail for Dummies

DOJ Press Release, Oregon Corporation Sentenced for Clean Water Act Violation

Mike Scarcella, BLT Blog, Ted Stevens Rejected Plea Deal, Records Show

Amir Efrati, WSJ Blog, Second American Client Charged in UBS Tax Probe

Joe Palazzolo, BLT Blog, King & Spalding's Gary Grindler Joins DOJ Criminal Division

Josh Gerstein, Politico, Under the Radar -Sky’s the limit for punishment in Stevens case

DOJ Press Release, UBS Client Pleads Guilty to Filing False Tax Return Hid Assets Worth $3 Million in Secret Swiss Bank Account -Ft. Lauderdale Yacht Broker Second UBS Client Charged, First to Plead Guilty

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April 15th - Tax Day Is Approaching

One can easily tell that tax day is getting near by just looking at the DOJ Press Releases.  Although tax prosecutions occur year round, one can't help but notice the many appearing around April 15th.  In a way this publicity is good, because what better way to achieve general deterrence then publicizing the ramifications of not filing a tax return, or filing an improper one. Although some of these are indictments, and the individuals are of course presumed innocent until convicted, if they are, here are some of the latest press releases -

DOJ Press Release, Louisiana Tax Defier Convicted on Federal Tax Charges -Defendant Had Filed Millions of Dollars in Fictitious Liens to Harass Law Enforcement

DOJ Press Release, Federal Court Blocks Chicago Tax Preparation Firm from Claiming Improper Tax Credits -Tax Preparer Allegedly Claimed Fraudulent Fuel Tax Credits for Customers

DOJ Press Release, Bronx Return Tax Preparer Indicted for Aiding in Preparation of False Tax Returns

DOJ Press Release, Disbarred Maryland Attorney Pleads Guilty to Preparing False Tax Returns

And of course, one also finds DOJ issuing this week the highlights of the 2008 year, which includes mention and reference to the  UBS deferred prosecution agreement.

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In the News & Around the Blogosphere

DOJ Press Release,Two Department of Defense Contractors Charged in Bribery Conspiracy Related to DOD Contracts in Afshanistan

DOJ Press Release, Former Bristol-Myers Squibb Senior Executive Pleads Guilty for Role in Dishonest Dealings with the Federal Government

Ernest Scheyder, Houston Chronicle (AP), Dynegy CEO's 2008 compensation drops 40 percent

Glenn C. Colton joins Sonnenschein’s Litigation Practice and Co-Chair of the White Collar & Government Investigations Practice. 

Neil A. Lewis, NYTimes, Dismissal for Stevens, but Question on ‘Innocent’

Fraud With Peril, Stephanie’s Fresh Perspective

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Conferences

Northwestern University Law - Judicial Symposium - Criminalization of Corporate Conduct - April 20 - here

Georgetown Law Corporate Criminal Law Conference - Achieving the Right Balance: The Role of Corporate Criminal Law in Ensuring Corporate Compliance- April 21 - here

ABA - Insider Trading, April 29, webcast here

ABA - Internal Corporate Investigations and IN-House Counsel, May 6-8 here

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

18th Annual Federal Sentencing Guidelines Conference in Clearwater, Florida, May 21-22 - Download 290200_09_guidelines_book

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