Saturday, 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 24, 2010 in Current Affairs, Government Reports, Investigations, Legal Ethics, News | Permalink | Comments (2) | TrackBack (0)

Friday, 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."

Complaint here.

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 23, 2010 | Permalink | Comments (0) | TrackBack (0)

Thursday, 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 22, 2010 in Current Affairs, Fraud, News, SEC, Securities, Statutes | Permalink | Comments (0) | TrackBack (0)

Tuesday, July 20, 2010

Talk About the Dodd-Frank Act

Check out Macia Coyle's article in the National LJ (,  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."


July 20, 2010 in Congress, News | Permalink | Comments (1) | TrackBack (0)

Tourre's Answer

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 20, 2010 in Civil Enforcement, Current Affairs, SEC, Securities, Statutes | Permalink | Comments (0) | TrackBack (0)

Monday, 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


July 19, 2010 in Fraud, Judicial Opinions | Permalink | Comments (1) | TrackBack (0)

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