July 24, 2010
Alberto Gonzales Materials
Here is Assistant AG Ronald Weich's letter to House Judiciary Committee Chairman John Conyers explaining DOJ's declination in the matter of former Attorney General Alberto Gonzales and the firing of U.S. Attorney David Iglesias. And here is George Terwilliger's statement celebrating the declination. Terwilliger and Bob Bittman of White & Case represented Gonzales in the investigation.
July 23, 2010
Dell Settles for $100 Million; Michael Dell & Others to Pay $4 Million
The SEC announced the civil charging and settlement with Dell Inc. premised on allegations that "Dell did not disclose to investors large exclusivity payments the company received from Intel Corporation to not use central processing units (CPUs) manufactured by Intel’s main rival." The SEC Press Release also alleges that "[a]fter Intel cut these payments, Dell again misled investors by not disclosing the true reason behind the company’s decreased profitability." The cost of this can be summed up in the following penalties that were agreed to by the parties:
"Dell Inc. agreed to pay a $100 million penalty to settle the SEC’s charges. Michael Dell and Rollins each agreed to pay a $4 million penalty, and Schneider agreed to pay $3 million, to settle the SEC’s charges against them. Dunning and Jackson also agreed to settle the SEC’s charges."
Checking out the Dell website here, they say in part:
"Dell Inc. today announced that it has reached a settlement with the U.S. Securities and Exchange Commission (SEC) resolving the previously-disclosed SEC investigation into Dell’s disclosures and alleged omissions prior to Fiscal 2008 regarding certain aspects of its commercial relationship with Intel Corporation and into separate accounting and financial reporting matters. The settlement terms are consistent with the settlement framework disclosed by the company on June 10, 2010." (italics added).
Also stated in this release are that:
"Sam Nunn, presiding director of the Dell Board, said, 'The Board believes that this settlement is in the best interest of the company, its customers and its shareholders, as it brings a five-year SEC investigation to closure. Dell’s Board reaffirms its unanimous support for Michael Dell’s continued leadership, and the management team in its ongoing commitment to transparent accounting, integrity in financial reporting and strong corporate governance.'"
July 22, 2010
Dodd-Frank Criminal Provisions
Here are NACDL's updated materials on the new criminal provisions found in Dodd-Frank. Hat tip to NACDL's white-collar guru, Shana Regon.
July 20, 2010
Talk About the Dodd-Frank Act
Check out Macia Coyle's article in the National LJ (law.com), Corporate Sector Sounds the Alarm Over Financial Reform's 'Bounty' System as it highlights whistleblower provisions in the forthcoming financial reform package. But one can also expect some new penalty provisions. NACDL has a list of some of the items that were included in drafts of the legislation here. On the NACDL website here it states "[t]hese new offenses, if enacted into law, will further explode the federal criminal code, which already contains an estimated 4,450 criminal offenses."
Fabrice Tourre's Answer has been filed in SEC v. Goldman, Sachs & Co. and Fabrice Tourre. Among other things, Tourre contends that neither he nor Goldman "had a duty to disclose any allegedly omitted information" and that the ABACUS 2007-AC1 offering materials "expressly disclosed that no one was purchasing notes in the equity tranche of the transaction."
July 19, 2010
Conrad Black Granted Bail
The Seventh Circuit Court of Appeals has granted bail to Conrad Black. Like Skilling, the Supreme Court vacated and remanded Black's case back to the Seventh Circuit in light of its holding that honest services applies only to schemes premised on bribery or kickbacks. The grant of bail is "pending the disposition of his appeal" in the appellate court. The Seventh Circuit did, however, remand the case to the trial court "for the limited purpose of permitting the district court to determine the conditions of release."
Court's Order - Download Black-Bail
In the News & Around the Blogosphere
Jenny Anderson, NYTimes, 2 New York Institutions Want to Keep Ponzi Gifts
Martha Neil, ABA Law Jrl News Now, 7 Cops, 2 Lawyers & 1 FBI Agent Charged in Claimed $16M Mortgage Fraud
DOJ Press Release,Former Corrections Officer Pleads Guilty to Obstruction of Justice
Michael Hiltzik, LA Times, Judicial system takes a hit in Broadcom case
Mark Guarino, Christian Science Monitor, Rod Blagojevich defense: advisers gave him bum advice (w/ a hat tip to Ted Gest); Mike Robinson & Michael Tarm, Prosecution rests in Blagojevich corruption trial (AP)
Martha Neil, ABA Law Jrl News Now, Ex-Detroit Mayor Pleads Poverty, Gets PD, in New Federal Tax Fraud Case (w/ a hat tip to Ivan Dominguez)
CBS News, Feds Bust 36 for Alleged Medicare Scams
Bob Johnson, (AP) Al.com, Richard Scrushy asks for prison release on appeal bond