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Don’t Ask How It’s Made
I recall something about not watching how sausage or legislation is made, and it gets a bit scarier when the sausage-maker does not follow the federal meat inspection rules. The U.S. Attorney’s Office for the District of Connecticut announced the sentencing of Nicholas DeYulio to three years probation for selling meat products without the required…
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Former Executive Settles FCPA Complaint with SEC
The SEC settled a civil complaint against Jim Bob (J.B.) Brown — my favorite defendant name this year — a former executive of Willbros Group for violating the Foreign Corrupt Practices Act. The company provides engineering services to the oil and gas industry, and according to the SEC Litigation Release (here): The Commission alleges in…
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Former HealthSouth CFO Receives 3-Year Prison Term
The third time was the charm for federal prosecutors, who finally had a substantial prison term imposed on former HealthSouth CFO Michael Martin. Twice before, Martin, who cooperated in the case after pleading guilty, was sentenced for his role in the $2.7 billion fraud, receiving probation and then a seven-day term in prison. Martin was…
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Tough Times for Two GCs
The Sarbanes-Oxley Act increased the pressure on in-house lawyers by requiring that a company’s "chief legal officer" be the key conduit for reviewing claims of potential wrongdoing and advising the independent directors on how to act in response to potential legal violations. This week, that seat got even hotter as Bristol-Myers Squibb fired its general…
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The Best Way to Rob a Bank
There is an old adage that the best way to rob a bank is to work for it. While not always successful, the sentencing of Dana Smith shows that at least you won’t get as much time as you would if you pulled a gun, which usually triggers a five-year mandatory minimum. Smith was the…
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Scrushy Gets Some of His Attorney’s Fees Covered
An arbitrator has decided that HealthSouth must pay former CEO Richard Scrushy’s attorney’s fees from the criminal trial in which he was acquitted of all counts related to the massive accounting fraud at the company. Scrushy claimed that his employment contract required the company to pay the fees, and under Delaware corporate law — HealthSouth…
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“Challenges Facing Today’s Federal Prosecutors”
After yesterday’s hearing on the Thompson Memo and its inclusion of a waiver provision, waiving the attorney-client privilege, today brings a subcommittee hearing on the "Challenges Facing Today’s Federal Prosecutors" (see here). The witnesses lined up to appear today are: Mike Battle Director Executive Office of U.S. Attorneys United States Department of Justice Washington, DC…
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The Thompson Memo Hearings
The Thompson Memo has without doubt raised significant controversy in the legal community. It contains provisions such as waiver of the attorney-client privilege, that factor into whether the company will be prosecuted or receive the benefit of a deferred prosecution agreement. Today was the day of airing this issue before a Senate Judiciary Committee (see…
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Republican Fundraiser Gets Two Years +
Tom Noe, an Ohio Republican fundraiser and rare coin dealer, was sentenced today to two years and three months in prison, in addition to receiving a fine. (see AP here) He pleaded guilty to these charges related to campaign funds, but has pleaded not guilty to other charges pending against him. According to Reuters here,…
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USA Attends Special Board Meeting at Bistol Myers
The Wall Street Jrl here reports of the special board meeting at Bristol Myers. This was clearly an important meeting as CEO Peter Dolan was "ousted." But one sentence of the Wall Street Jrl article is fascinating. It says, "[t]he meeting was attended by the U.S. Attorney for New Jersey, Christopher Christie, who appointed…
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