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Former Brocade CEO Accused of Securities Fraud for Options-Timing
Former Brocade Communications Systems, Inc. CEO Gregory Reyes and Stephanie Jensen, former VP for human resources at the company, were charged in a criminal complaint with securities fraud in the first prosecution arising from the many stock options-timing investigations. The SEC filed a civil securities fraud action (complaint here) against Reyes, Jensen, and Antonio Canova,…
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Bonds Perjury Investigation Goes Into Extra Innings
[Note: The following is a corrected post in light of updated media reports] The investigation of San Francisco Giants slugger Barry Bonds will shift to a new grand jury so that prosecutors can continue to determine whether to indict him on perjury and tax evasion charges. The grand jury panel that had been hearing evidence…
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Four Deputy Sheriffs Indicted on Bribery Charges
Four St. Louis County deputy sheriffs were indicted on corruption charges for taking cash payments from moving companies to schedule evictions. The four sheriffs took money in exchange for recommending movers to landlords and owners who had obtained eviction orders that were subject to enforcement by the Sheriff’s Office. A press release (here) issued by…
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Can’t Stop the Insider Trading
The SEC’s role policing insider trading continued with a complaint filed in federal court in San Diego freezing the accounts of unknown call option purchasers of Petco before the leveraged buy-out announced on July 14 at $29 per share, a nearly 50% premium over its market price. The SEC complaint (currently unavailable) alleges that purchasers…
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Common Sense in Sentencing
A summary discussion of the sentencing of former Impath Inc. President, Richard Adelson, appears here, in a post that noted how white collar offenders in the fraud/theft category were receiving increased sentences in recent years. As noted in that post: "Are white collar offenders getting the biggest breaks in this post-Booker world? Some may think…
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Cunningham Bribery Fallout Hits Harris Campaign
Katherine Harris achieved a measure of fame in 2000 as Florida’s Secretary of State from her involvement in the vote counting there, and then moved on to the House of Representatives a couple years later. Her campaign for the U.S. Senate has bogged down over various issues, and now the whiff of scandal is hitting. …
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Options-Timing Probes = Law Firm Marketing Opportunity
A Wall Street Journal article (here and Law Blog entry here with access to the article) discusses the response of major law firms to the current spate of SEC and grand jury investigations of companies related to the timing of their options awards. Not surprisingly, the firms have viewed this as a marketing opportunity, informing…
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Medtronic Pays $40 Million to Settle Kickback Allegations
Medical device maker Medtronic Inc. settled a civil action with the Department of Justice by agreeing to pay $40 million and entering into a corporate integrity agreement for alleged kickbacks paid to spinal surgeons to use devices manufactured by its Medtronic Sofamor Danek division. According to a DoJ press release (here), "The government had alleged…
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Collateral Consequences in Political Races
Ralph Reed, a former lobbying associate of Jack Abramoff, lost his political race as Republican nominee for the office of Lt. Governor. (see NYTimes here). (esp)
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DOJ Cracks Down on Online Gambling
The DOJ is cracking down on online gambling as seen by the unsealing of an indictment that had been issued by a federal grand jury in the Eastern District of Missouri. The "22-count indictment charg[es] 11 individuals and four corporations on various charges of racketeering, conspiracy and fraud." (see DOJ Press Release here; see also…
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