White Collar Crime Prof Blog

In the News

Amir Efrati, Wall Street Journal, has a fascinating piece titled, A Look at Judge in Bear Case:
He's Fair, Funny and Frank.  Efrati looks at the judge that will preside over the case of the former Bears Stearns managers (see here).

DOJ Press Release, Owner of Medical Equipment Company Sentenced to 130 Months in Prison for Health Care Fraud

Chronicle of Higher Education, Diploma-Mill Operator is Sentenced to 3 Years in Prison (subscription required)

Marcia Coyle, 'McNulty Memo' Triggers an Ultimatum (subscription required)

(esp)

In the News & Blogosphere

Karen Donovan, Conde Nast Portfolio.com, The Unknown Milberg 

Carrie Johnson, Washington Post, A Backlog Of Cases Alleging Fraud - Whistle-Blower Suits Languish at Justice

Chronicle of Higher Education, 2 Former Tufts Administrators Are Accused of Embezzling Nearly $1-Million

Eric Lichtblau, New York Times, New Scrutiny of Hiring at Justice Department 

Justin Scheck, Wall Street Jrl, Former H-P Executive Indicted in Email Case

(esp)

In the News

Ashby Jones, Wall Street Jrl, Scruggs Gets Maximum Five-Year Sentence

Paula Reed Ward, Pittsburgh Post-Gazette, House panel subpoenas Wecht prosecution documents; Jason Cato, Pittsburgh Tribune Review, Congress subpoenas Wecht, Siegelman documents; Subpoena from U. S. House of Representatives, Committee on the Judiciary here

U.S. House of Reps, Committee on the Judiciary, Press Release, Conyers Issues Subpoena to DOJ for Valerie Plame Documents (see subpoena above)

Jonathan Vuocolo, Wall Street Jrl., Former Home Depot Executive Pleads Guilty in Kickback Case ; DOJ Press Release, Former Home Depot Employee Pleads Guilty to Vendor Kickback Scheme and Tax Evasion

DOJ Press Release, Fresno, California, Electrical Contractor Pleads Guilty to Bid Rigging on Two E-Rate Funded School Technology Projects (Company Agrees to Pay $3.3 Million in Criminal Fines, Restitution and Civil Settlement For Role in Bid Rigging Conspiracy)

DOJ Press Release, Illinois Veterans Affairs Official Pleads Guilty to Conspiracy and Accepting Illegal Gratuities

Evan Perez, Wall Street Jrl, Feds Press Swiss Bank To Name U.S. Clients

(esp)

In the News & Blogosphere

Phillip Inman, Guardian, UK is weak on tackling white collar crime and short sellers, says HBOS chairman

Martha Neil, ABA Law Journal News, Ex- Prosecutor: DOJ Destroyed My Career

Lawrence Hurley, Washington Briefs, Leahy Reveals Discussions with DOJ Over McNulty

(esp) (blogging from Denver, Colorado)

In the News

DOJ Hiring Practices - Carrie Johnson, Washington Post, Report Says Partisanship Reigned in Justice Department Hiring Program

Plea in Options Backdating - "Dr. Henry Samueli, the co-founder and former chief technical officer of Broadcom, Inc., pleaded guilty . . . to making a false statement in testimony before the Securities and Exchange Commission relating to that agency’s investigation into options backdating at the Irvine-based technology company." His "plea agreement calls for a sentence of five years probation, a $250,000 criminal fine, and the payment of $12 million to the United States for making a false statement to the SEC." DOJ Press Release - Download broadcom_samueli_plea.086.pdf ; See also LaTimes - E. Scott Reckard and Christopher Goffard,  Broadcom co-founder Samueli pleads guilty in stock options fraud case

El Paso Corruption Investigation - DOJ Press Release reporting on a guilty plea to conspiracy to defraud in El Paso County, Texas.  This is part of an ongoing corruption Investigation in El Paso.  The individual admitted that "he conspired with others to pay cash money to an elected member of the El Paso County Commissioner's Court to secure their support and vote for contracts between the County and various vendors seeking to do business with the County."

Criminal Investigation Leads to Bankruptcy - Sean P. Murphy and Jonathan Saltzman, Boston.com (Globe) - Accused Big Deal Firm Files for Ch. 11 - facing US Charges, seeks financial shield

(esp)

In the News and Blogosphere

Carrie Johnson, Washington Post, Justice Dept. Grant Overseer Subject of Criminal Probe

John Fritze, Gus G. Sentementes and Lynn Anderson, Baltimore Sun, State raids mayor's home

DOJ Press Release - "A former New York City engineer pleaded guilty . . . to participating in a conspiracy to commit bribery in connection with a project to repair New York’s Pier 86, the principal location of the Intrepid Sea, Air and Space Museum."

Instapundit - Sharpton Lawyers Up in Tax Probe

Jessica Gresko, AP, Ex-UBS banker pleads guilty in US tax evasion case

Larry Ribstein, Ideoblog, More on the Bear Indictments

William Rashbaum, NYTimes, Prosecutors Question Tests of Concrete in City Buildings (an investigation coming from Robert Morgenthau's Office - Mahattan District Attorney)

DOJ Press Release - Banker Pleads Guilty to helping American Real Estate Developer Evade Income Tax on $200 Million

DOJ Press Release - Chinese National Sentenced for Economic Espionage (the 3 year sentence is the first ever for a violation of 18 USC Section 1831)

(esp)

Addendum -

Jenna Johnson, Washington Post - Corporate Espionage Detailed in Documents   (excellent article regarding corporate spying)

In the News and Blogsphere

David Marcus, SDFL Blogspot, Former Atlanta Mayor Bill Campbell  (provides thoughtful commentary to Bill Rankin's AJC Article - Ex-mayor misled officials to enter rehab program, documents say)

Brian Baxter, AMLaw Daily, Former Bear Stearns Managers Could Face Securities Fraud Charges

Carrie Johnson, Washington Post, Ex-Civil Rights Official's Testimony Under Review

DOJ Press Release - German-Based Operator of Ship and Chief Engineer Plead Guilty to Falsifying Records

Larry Ribstein, Ideoblog, Insurance and the Criminilization of Agency Costs

NYTimes Editorial, A Case of Politics (discussing the Don Siegelman case)

Washington Post, National Republican Congressional Committee (NRCC) to Reveal Embezzlement Details

The BLT - Blog of Legal Times, House Panel Subpoenas Valerie Plame Records

Dan Slater, WSJ Blog, It’s Official: Feds Call Former Bayou CEO a Fugitive from the Law

Davide Beretta, WSJ, Former EADS Executive is Detained

Tenth Circuit Rules in Wittig  (former CEO of Western Resources, Inc. - now Westar) - opinion here (court affirms sentence with the exception of the "special condition of supervised release") See Doug Berman's Sentencing Law & Policy - Third time's (almost) the charm in Tenth Circuit sentencing case for an excellent discussion and commentary.

(esp)

In the News

Chronicle of Higher Education (subscription required) - Former Director of Alabama Fire College Found Guilty of Stealing $1.5-Million

Ovetta Wiggins, Washington Post, Md. Couple Indicted in Fraud Probe: Scam Allegedly Cheated Lenders And Homeowners

Jeff Coen, Chicago Tribune, Ex-Chicago Department of Buildings supervisor gets 15 months for taking bribes

DOJ - Texas Businessman Found Guilty of Submitting False Statements to Federally Insured Bank

(esp)

In the News

Bob Martin, The Montgomery Independent, U.S. Attorney Offices in Northern Middle Districts are being probed by the Justice Department for possible political prosecution in the Siegelman cases (previously discussed here, here and here)

DOJ Press Release - Ex- Finance Director of Soka University of America Pleads Guilty in $1.7 Million Embezzlement

DOJ Press Release -Santa Barbara County Man Surrenders in Federal Fraud Case Alleging $ 6 Million in Losses to Victims Across U.S.

DOJ Press Release - Second Former Home Depot Employee Charged in Alleged Kickback Scheme

Chris Ornelas KOB-TV, and Joshua Panas KOB.com, Businessmen implicated in travel scam

Linda Stamato, NJ.com, Corporate wrongdoing and deferred criminal prosecution: An issue that won't go away 

Michael Stanton, Providence Jrl,  Judge rejects Licht affidavit ("Robert A. Urciuoli, the former president of Roger Williams Medical Center, is trying to convince a judge that he should not be retried on federal corruption charges because prosecutors improperly pressured the hospital to fire him and stop paying for his legal defense.') 

(esp)

In the News

Laurel Brubaker Calkins, Bloomberg, Ex-Merrill Banker Asks U.S. to Probe Enron Prosecutor

Mike Robinson, USA Today (AP) - Corruption fighters find Chicago a challenge

DOJ Press Release - San Gabriel Valley Woman Arrested on Federal Fraud Charges for Defrauding Medicar out of $12 Million

DOJ Press Release - Three Miami Area Brothers and Physician’s Assistant Charged in $110 Million Health Care Fraud Scheme

NYTimes, Grim Clues as Bayou Founder Goes Missing

Ben Schmitt, Detroit Free Press, City hires lawyer to fight council's ouster of mayor (discussing the hiring of Professor Robert A, Sedler from Wayne State Law School) (see prior posts on the text message scandal here)

Johanna Newman, LA Times, Barack Obama advisor Jim Johnson quits under fire ("The former chairman of Fannie Mae was one of three advisors considering vice presidential candidates. He resigns after questions are raised about favoritism he may have received from Countrywide.")

Wall Street Jrl (AP) - China Hackers Hit U.S. Congress

Peppi Kiviniermi, Wall Street Jrl, EU Launches Probe of Alitalia Loan

Nathan Koppel, Wall Street Jrl Blog, More Details on Expected Milberg Settlement

(esp)

In the News

Stephen Labaton, NYTimes, Intel Facing Antitrust Investigation

DOJ Press Release - Oregon Corporation and Its President Sentenced for Hazardous Waste Violations

(esp)

In the News

Russell Hubbard, Birmingham News, Scrushy must return to Birmingham to testify in civil suit, order says

Paul Waldie, GlobeandMail.com, Black's lawyers headed to court for 'long-shot' appeal

Corporate Legal Times, Paul Weiss Adds Partner From SEC's Enforcement Division

DOJ Press Release - Former New York City Employee Indicted in Conspiracy to Commit Bribery (was a former NYC engineer)

DOJ Press Release - FBI Employee Pleads Guilty to Illegally Accepting Gratuity

DOJ Press Release - Walgreens to Pay $35 Million to U.S., 46 States & Puerto Rico
to Settle Medicaid Prescription Drug Fraud Allegations (civil settlement)

DOJ Press Release - Defense Contractor Pleads Guilty in Bribery Scheme Involving Department of Defense Contracts in Iraq

(esp)

In the News - Fieger Acquitted; Weiss 30 Months; Brocade Pays; Another Fall From Abramoff

Attorney Geoffrey Fieger acquitted on all counts; another win for Gerry Spence - see here (Detroit Free Press); here (Jim Irwin, MLive.com (AP)); here (TalkLeft)   

Ashby Jones, Wall Street Jrl Blog, Mel Weiss Gets 30 Months in Prison

Ashby Jones, Wall St. Jrl. Blog, Brocade Pays $160 Million to Settle Options-Backdating Suit

DOJ Press Release - Former Congressional Chief of Staff Pleads Guilty to Public Corruption Charge - ("former chief of staff to a former Member of the U.S. House of Representatives has pleaded guilty to conspiracy to commit honest services wire fraud" - this is yet another case related to former lobbyist Jack Abramoff)

(esp)

In the News

DOJ Press Release - Florida Businessman Charged with Forging Correspondence Purportedly From Securities and Exchange Commission Attorney

International Herald (AP) - Former Credit Suisse banker gets 10-year sentence 

DOJ Press Release - Lawyer Indicted on Wire Fraud and Money Laundering Charges for Stealing from Client Escrow Account

(esp)

In the News

Sylvia Moreno, Washington Post, D.C. Official's Brother Pleads Guilty in Tax Scam

Ann Zimmerman, Wall St Jrl, Home Depot Ex-Executive is Charged with Fraud

Glenn R. Simpson & Carrick Mollenkamp, Wall St Jrl, Ex-Banker to Cooperate, Plead Guilty in UBS Probe

Rosalind S. Helderman, John Wagner, & Ovetta Wiggins, Washington Post, FBI Raids Home of Maryland State Senator

David Armstrong & Jesse Drucker, Wall St. Journal, IRS Scrutinizes Rabobank's Dealings with Newell

Judith Burns, Wall St Jrl, Ernst & Young Ex-Partner is Indicted

David Heinzmann, Chicago Tribune, Officers were Encouraged to Lie, Indicted Chicago Cop Tells '60 Minutes'

(esp) (blogging from Firenze, Italy)

In the News

Amy Shipley, Washington Post, Track Coach Convicted on 1 of 3 Steroid-Related Charges (Balco Related)

International Herald (Bloomberg, AP) - Prosecutors open inquiry into possible spying by Deutsche Telekom (German Prosecutors)

Ha'aretz,  Olmert: Not every person under probe must resign (discussing the investigation involving Israeli Prime Minister Ehud Olmert)

DOJ, Toray Industries to Pay U.S. for Price Fixing on Carbon Fiber Materials ($15.25 Million - civil settlement)

DOJ, FBI Agent Arrested for Attempting to Influence Criminal Case of Man Married to His Mistress

DOJ, Third Defendant Pleads Guilty in China Espionage Case

(esp) (limited posting this week as I am blogging from Firenze, Italy)

In the News

Mary Owen, Chicago Tribune - U.S. Supreme Court rejects Ryan appeal

Dan Slater, WSJ Blog, Indicted Former Baker & McKenzie Partner Hit With More Charges

Carrie Johnson, Washington Post, Awaiting new Pardon Attorney: Backlog, and Chance to Make Mark

(esp)

In the News

New York Times (Reuters), 5 More Indicted in Stock-Loan Inquiry

Joby Warwick, Washington Post, Ex-CIA Official Indicted Over Agency Job for Mistress

DOJ Press Release, Canadian Man Sentenced to 41 Months in U.S. Prison for Role in International Check Stealing Scheme

DOJ Press Release - Medtronic Spine, Formerly Kyphon Inc., to Pay U.S. $75 Million to Resolve Allegations of Defrauding Medicare (civil settlement)

DOJ Press Release - National City Mortgage to Pay $4.6 Million to Settle False Claims Allegations Involving Federally Insured Mortgages

(esp)

Siegelman - Former Governor of Alabama & Karl Rove

All in one day -

Al.com (AP) Siegelman asks appeals court to throw out conviction

Al.com (AP) House Subpoenas Karl Rove

(More to come)

(esp)

What's Happening Right Now: Chicago Indictments & Rigas

Indictments are coming down in Chicago - Chicago Tribune here

Rigas father and son being resentenced- Yahoo News here

Details to follow -

(esp) (w/ a hat tip to Kathy Fox)

In the News & Blogsphere

Kim Christensen, LATimes - Bail Denied for Securities Lawyer in Investment Fraud Case

Betsy McKay, WSJ - Ex-Fund Manager Is Convicted of Fraud

FBI Report - MORTGAGE FRAUD: New Analysis of a Rising Threat

DOJ Press Release - 38 Individuals in U.S. and Romania Charged in Two Related Cases of Computer Fraud Involving International Organized Crime

Amir Efrati & Liam Plevin, WSJ, Greenberg May Face SEC Civil Charges

Dan Slater, WSJ Blog,  Kentucky Heart Charity Takes Center Stage in Fen=Phen Trial

(esp)

In the News and Blogsphere

Kim Christensen, LA Times - Irvine Lawyer Arrested on Wire Fraud Charges (securities lawyer)

John Christoffersen, Newsday (AP) - Lawyer Challenges Government Use of GPS Tracking Device (discussing the government placement of a GPS tracking device on a defendant - an accountant's vehicle)

FCPA Blog - U.S. Prosecutors Detain and Search BAE Leaders

Detroit Free Press - The Detroit City Council’s request that Gov. Jennifer Granholm remove Mayor Kwame Kilpatrick from office because of his conduct in the text message scandal was delivered to Granholm’s office today.

(esp) (from DC at the American Law Institute Meeting -with hats off to Michael Traynor who gave an incredible speech at the ALI Annual Dinner)

In the News & Blogsphere

Scotus Blog reports that the Supreme Court did not accept to hear the case of Forbes v. United States (former board chair of Cendant Corp.) (for sentencing see here) (for 2d Circuit appeal affirmed see here)

DOJ Press Release- Federal Court Enjoins Nationwide Tax Scheme Promoters

NY Attorney General Andrew Cuomo Press Release - "Attorney General Andrew M. Cuomo and Nassau County District Attorney Kathleen M. Rice today announced that the former operator of a Manhattan-based home care agency and his former billing manager pleaded guilty to stealing over $314,000 from the state through false Medicaid billing schemes."

DOJ Press Release - D.C. Metropolitan Police Detective Turned Tax Defier Convicted of Tax Fraud

WSJ - Amir Efrati, Greenberg Role Seen in AIG-Gen Re Case

WSJ Blog, Dan Slater, Miami Defense Bar Turns Out in Droves to Honor Ben Kuehne; Southern District of Florida Blog, David Oscar Markus, Ben Kuehne Receives Award

(esp)

In the News

DOJ - Two Individuals Indicted on Charges of Conspiracy and Bribery in Connection with a U.S. Army Corps of Engineers News Orleans Levee Reconstruction Project

Houston Chronicle - Court Upholds Punishment for Ex-Reliant Trader

DOJ - Oregon Man Pleads Guilty to Selling Counterfeit Software Worth $1 Million

ABA LawJrlNews - Founders & Gen’l Counsel Sued By SEC in Broadcom Options Backdating Case

DOJ - California Man Sentenced to 37 Months in Prison in Connection with $10 Million Scheme to Defraud the Export-Import Bank of the United States 

In the News & Blogsphere

DOJ Press Release - Former Alaska State Representative Victor Kohring Sentenced On Public Corruption Charges (sentenced to 22 months in prison) ("part of an ongoing investigation into public corruption in the State of Alaska")

ABA Law Journal News - Ex-Prosecutor Acquitted at Trial Loses Bid for Attorney Fees; Paul Egan, Detroit News - Convertino Request is Denied - He Sought Attorney Fees for Case that Resulted in Acquittal on Obstruction of Justice Charges

Reuters - UBS facing subprime banking investigations: report

Bloomberg - Polaris Falls After Brokerage Searched by Prosecutors

WSJ - Kazakh Leader's Daughter Monitored U.S. Bribe Case

WSJ - Siemens Ex-Chairman faces Civil Proceedings

NYTimes - Corruption Case Taints Rising Political Star (discussing Rezko trial and presidential candidate Obama & Governor Blagojevich)

(esp)

Chiquita and 60 Minutes

60 Minutes aired a special on Chiquita Banana, The Price of Bananas, in which they reported on the issues that faced this company in trying to operate in Colombia and their self-reporting to the DOJ of violations in making illegal payments to a paramilitary group in Colombia.  Their self-reporting resulted in the company facing a significant penalty - a $ 25 million dollar fine and 5 years probation. (see Sentencing Memo here) The company also was the subject of a prosecution and plea, and not the recipient of a deferred prosecution agreement.  To a large extent, this recent report mirrored and expounded upon the work of former Wall Street Journal reporter Laurie Cohen, who back in August 2007 discussed the dilemma faced by Chiquita in trying to protect employees and also trying to comply with the law. (see Laure Cohen, Chiquita Under the Gun, WSJ)   

Some interesting points:

• 60 Minutes reported that "the Colombian government is now talking about extraditing Chiquita executives to Colombia." The extraterritorial application of U.S. laws by the DOJ may be coming back to haunt them as other countries may now think they have the right to come into the U.S. and proceed against corporate executives here.  The cost of a company operating abroad may be significantly increased if CEOs, or others within the U.S., start facing indictment in other countries. 
• The 60 Minute Special includes names of other companies that are alleged to be in violation, although the source of the allegations is in prison and charged with offenses in Colombia. One has to wonder if the DOJ has investigated these other companies, or if the only one who gets prosecuted is the one who comes forward and does the right thing by turning themselves into the government.  Based on this 60 Minute Special one might have a certain skepticism about whether the government is taking a proactive role in this investigation.  On the other hand, the effect of the WSJ article, and now 60 Minutes, may stimulate further DOJ activity. Of course, there is also the possibility that they did investigate and find no merit to the allegations that other companies were involved in illegal payments.
• The DOJ took a positive approach in not indicting individuals after Chiquita turned themselves into authorities. Perhaps this will send a message to corporate executives at other companies that they need to work with the DOJ to avoid individual liability. This could place the company against the individual when an individual may be trying to protect themselves from personal liability while the company is saying that proof is not present, so the company should not self-report.
• Why is it that Chiquita received a plea with conviction, while other companies get a deferred prosecution agreement?  Is this but another example of the enormous discretion of the DOJ?

(esp)

Addendum - ABA Jrl Law News Now - Colombia Extradites 14 Warlords to Face U.S. Drug Charges

Thornburgh Enters Appearance in Wecht Appeal

The Third Circuit Court of Appeals entered a stay of the Cyril Wecht trial pending appeal (for background on this case see here).  The case of the 77 year old coroner charged with federal violations for alleged state conduct was set for retrial following a hung jury.

A motion to expedite the appeal was also entered.  The appellee's brief is due on or before May 15th and the appellant's reply brief has a deadline of May 20th.  On the day this order was granted, there was also an entrance of appearance by Richard L. Thornburgh, former Pennsylvania Governor and former Attorney General of the United States and now with the law firm of Kirkpatrick & Lockhart, Preston, Gates, Ellis LLP. 

Should DOJ really be spending taxpayer money on this attempt to re-prosecute this individual? 

Government's Response Arguing that a Stay is Not Necessary - Download govt. Response-Wecht.pdf

Court Order Rejecting Government's Position - Download wecht_order.pdf

(esp)

In the News

Jason Cato, Pittsburgh Tribune Review - Court delays Wecht's 2nd trial

WPXI.Com - Wecht Retrial Delayed By Federal Appeals Court

Pillyburbs.com (AP) - Circuit court stays Wecht retrial over defense appeal

DOJ Press Release - McKesson Corporation Agrees to Pay More than $13 Million to Settle Claims that it Failed to Report Suspicious Sales of Prescription Medications

Mary McGuire, Georgetown University's Newspaper - the hoya.com - First U.S. Crime Museum to Open in D.C. (reported that it will include materials related to white collar crime)

(esp)

In the News

DOJ Press Release - Justice Department Announces Creation of 43 New Assistant United States Attorney Positions for Project Safe Childhood

In the News

Investment News - Money Fund Scrutiny Urged  (Letter of several groups calling for "the Commission to adopt a rule requiring that money market funds make non public monthly electronic filings of their portfolios to enable the Commission to monitor more closely the fund's risk of loss of principal.")

DOJ Press Release - Former FirstEnergy Nuclear Operating Company Employee Sentenced for Lying to the Nuclear Regulatory Commission (4 months of home confinement, "three years of probation, 200 hours of community service and a $7,500 fine. During his probation,  [the defendant] is barred from working for any organization holding a license from the NRC.")

Houston Chronicle (AP) - Ex-Dynegy exec says judge not impartial

(esp)

In the News and Blogsphere

FBI Press Release - Two owners and corporate officers of Engineering Dynamics, Inc. ("EDI") plea to a one-count information of conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transactions Regulations

Doug Berman's Sentencing Law & Policy Blog - A (record-setting?) long white-collar sentence (330 years)

FCPA Blog - Ex-World Bank Manager Sentenced for FCPA Offense

Examiner.com - Baltimore man gets lengthy sentence in $8 million fraud case (15 years - 27 counts of mail and wire fraud)

FBI Press Release - TENNESSEE WALTZ -The Dance is Over (Tennessee Waltz undercover sting operation ends) (see here for background)

DOJ - Southern District of Indianapolis Press Release - Louisville Woman Sentenced for Embezzling $7,000,000 From Credit Union (97 months)

DOJ - U.S. Coast Guard Officer Pleads Guilty for Lying about Vessel Pollution

Houston Chronicle (AP) - 3 NatWest Bankers Get Different Prisons (here)

Detroit Free Press - The latest in the case against the Detroit Mayor (here) (see here for background)

(esp)

The Latest in the Olis Case

Check out Mary Flood at Houston Chronicle - Kelley asks judge to leave the Olis case

(esp) (w/ a hat tip to Bill Olis)

Addendum -  WSJ Blog here.

Commentary - When should a judge recuse him or herself from a case?  There are many times that the answer to the question is easy, such as when the judge is related to a party or when the judge has personal knowledge of the facts in question.  But many times the answer to this question is less clear.  The ABA Model Code of Judicial Conduct provides judges with guidance to assist in deciding whether recusal is necessary.  Specifically Rule 2.11 pertains to disqualification (see here).  But as with so many ethics rules, one is often left trying to decide an issue in the gray area of the rules.

For defense counsel, filing such a motion may pose problems.  If the defense counsel is successful, then they have succeeded with their motion and a new judge is appointed.  But if defense counsel raises the issue and is unsuccessful, then one often wonders if they continue their case in front of the judge with a certain stigma attached to their cause.  It is easy to say that judges will not hold this against the party who loses a judicial recusal motion, after all defense counsel is just doing their job.  But this fear may cause hesitation in the filing of a judicial recusal motion.

In the News

Wall Street Journal - SEC Sues Alabama Mayor in Muni Case

Philly.com - Feds Object to Wecht retrial delay during 3rd Circuit appeal

Washington Post - Police: 'D.C. Madam' Palfrey Hanged Self in Fla.

FBI Release- Director Robert Mueller Speaks on Mortgage Fraud Crisis 

(esp)

In the News

Forbes.com - Wachovia says has never discussed deferred-prosecution deal with DOJ

Wall Street Journal - Gabelli Funds to Pay $16 Million To Settle SEC Market-Timing Case

DOJ (Press Release) - Owner of Kansas City Computer Service Companies and Family Member Indicted in Scheme to Defraud Federal E-Rate Program

ABA Law Jrl News - E-Mails Show More Abramoff Links to Ex-DOJ Staffers; Probe Continues

DOJ (Press Release) - Former State Prison Supervisor Sentenced for Obstruction of Justice-Related Charge (15 months in prison)

Houston Chronicle -Oscar Wyatt asks to finish his prison term in Houston

(esp) (w/ a hat tip to Bill Olis on the last item)

What's Happening at Wachovia?

WSJ- Marketwatch - Wachovia Faces Money-Laundering Probe: Report

Washington Post (Reuters) - Wachovia Part of Probe into Latin Drug Money: Report

NYTimes - AP - Wachovia Pays $144 Million to Settle Marketing Claims

(esp)

Addendum - See Wall St. Jrl Correction here.

In the News

Law.com - Former Refco Owner Convicted in $2.4 Billion Fraud Case

Phillyburbs.com - News orgs appeal judge's decision to shield jurors' names (Wecht Case)

Pittsburgh Post-Gazette - Wecht lawyers seek dismissal (3rd time)

DOJ Press Release - Canadian Night Vision Goggles Manufacturer and Two Executives Charged in Scheme to Defraud U.S. Military Procurement Unit for Iraq

(esp)

In the News - From the DOJ - Antitrust

DOJ Press Release -

LONG ISLAND DEFENSE CONTRACTOR EMPLOYEE PLEADS GUILTY TO BID RIGGING AND CONSPIRACY TO COMMIT WIRE FRAUD

WASHINGTON — A former employee of a Long Island, N.Y., defense contractor pleaded guilty to participating in a conspiracy to rig bids on military contracts for Navy straps that are used to secure munitions and other supplies, the Department of Justice announced today. Navy straps are a type of tiedown equipment used by the U.S. Navy to secure munitions and other supplies for transportation on ships and airplanes....

DOJ Press Release -

FORMER U.S. EXECUTIVE OF ITALIAN MARINE HOSE MANUFACTURER
AGREES TO PLEAD GUILTY TO PARTICIPATING IN
WORLDWIDE BID-RIGGING CONSPIRACY

Former Executive Agrees to Serve Jail Time

WASHINGTON — A former U.S. executive of Manuli Rubber Industries SpA, a Milan, Italy-based marine hose manufacturer, has agreed to plead guilty and serve jail time for participating in a conspiracy to rig bids, fix prices and allocate market shares of marine hose in the United States and elsewhere, . . .

DOJ Press Release -

JAPAN AIRLINES INTERNATIONAL AGREES TO PLEAD GUILTY AND PAY
CRIMINAL FINE FOR FIXING PRICES ON CARGO SHIPMENTS

WASHINGTON — Tokyo-based Japan Airlines International Co. Ltd. (JAL) has agreed to plead guilty and pay a $110 million criminal fine for its role in a conspiracy to fix rates for international cargo shipments, the Department of Justice announced today. . .

(esp)

Former Newark Mayor Convicted

The former major of Newark, Sharpe James, was convicted following a jury trial.  A press release of the US Attorney's Office in New Jersey tells of his conviction on corruption-related charges.  It notes that "James remains under indictment on another set of chages related to his alleged fraudulant use of city credit cards.

See also NYTimes here.

(esp)

In the News

ABA Jrl News - Greenberg Traurig Settles Guam Case Over Jack Abramoff Matter

The Sentinel Online (AP) - Judge Warns Wecht Attorneys About Setting Media "Firestorm"

Phillyburbs.com - House Committee Asks for Documents Related to Wecht Case

ABA Journal News - FBI Expects Massive Rise in Mortgage Fraud Cases

CNN Wire - Rove Asked to Testify Over Ex-Alabama Governor’s Prosecution

DOJ Press Release - Information Security Consultant Pleads Guilty to Federal Wiretapping and Identity Theft Charges

(esp)

Memorial for Stanton Wheeler

Susan Shapiro, Senior Research Fellow, American Bar Foundation writes:

At the upcoming Law & Society Association meeting, we will be honoring the memory of Stanton Wheeler, one of the founders of the Association and a mentor and friend to many of us, who passed away in December.

As part of our remembrance, we will be assembling a family tree, recording those whose lives were touched by Stan. If you feel part of that extended family, please contact Susan Shapiro at sshapiro@abfn.org . Please respond by April 21.

The family tree will be on display at the Law & Society meeting in Montreal and then given to his family. On Friday, May 30, 2008 from 4:30-6:15, there will be a roundtable remembrance panel at the meeting to honor Stan. In addition to the official commentators, those in attendance will have an opportunity to offer their memories (time permitting). For details contact Susan Shapiro.

To learn more about Professor Stanton Wheeler, see here.

(esp)

The Wecht Case - Should There Be A Retrial?

Cyril Wecht's possible retrial is receiving close scrutiny, as it should. The 77 year old gentleman's trial went for 7 weeks, had hundreds of exhibits, and the government presented 44 witnesses. It probably cost the taxpayers a pretty penny to try this case, and most certainly the defense tab was likely to have been high. As I stated here:

"The case is a relatively simple one.  The government charges corruption with expansive statutes like wire fraud and honest services fraud under section 1346. They take each fax and make it into separate counts, even when the faxes were sent the same day. The Indictment makes one wonder what a case like this is doing in federal court, except for the fact that the accused is charged with activities while in his role as a county coroner."

See Indictment. It seemed like the government was throwing spaghetti against the wall and hoping something would stick.

But the jury was not as hungry as the prosecution hoped. And despite many days of deliberation, it was hung. A press report states that it was a hung with a majority in favor of acqu