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More Overseas Insider Trading
It’s an oft-repeated scenario: an offer is made for a company at a premium to its market price, and a few days later the SEC files a suit in the U.S. District Court for the Southern District of New York (effectively its home court) for a freeze on brokerage accounts through which options in the…
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Lucky Winners in the Enron Jury Sweepstakes
It’s not as much fun as Ed McMahon showing up on your front door with the prize patrol, but the extensive jury questionnaire in the upcoming Enron conspiracy trial has been delivered to 400 residents of the Southern District of Texas. The questionnaires include approximately 70 questions regarding the background and work history of the…
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Mercury Interactive’s Options Timing Problem
Mercury Interactive Corp. announced the appointment of a new CEO, CFO, and General Counsel as a result of an internal investigation that turned up substantial problems in reporting by officers of the dates on which options were granted. According to the company’s press release (here): From 1995 to the present, there have been forty-nine instances…
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Former Hospital CFO Settles Criminal and Civil Accounting Fraud Charges
The former CFO for Bon Secours Cottage Health Services, David Zilli, entered a guilty plea in the U.S. District Court for the District of Maryland and settled an SEC securities fraud action alleging that he cooked the books by approximately $117 million between 1998 and 2003. The SEC Litigation Release (here) states: According to the…
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New Judge For Tom DeLay
The judge in the Tom DeLay case was removed from the case after a finding that his donations to the Democratic National Committee and other organizations, might not make him the best judge for what is likely to be a case with political issues. (See Dallas Morning News, Houston Chronicle, NYTimes) Dick DeGuerin appeared to…
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Not Everything Has to Be White Collar Crime
The government has the power, ability, and discretion to "punish" individuals and corporations using civil mechanisms. DOJ issued a press release yesterday showing a civil settlement in a case involving King Pharmaceuticals. The press release states that the company "has agreed to pay $124 million plus interest to resolve allegations that it underpaid rebates owed…
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5th Circuit Rules in Jamie Olis Case
It took a long time for the 5th Circuit to rule, but at last a decision is rendered in the case of United States v. Jamie Olis, former "Senior Director of Tax Planning and International (and later, Vice President of Finance) at Dynegy." Olis had received a sentence of 24 years (292 months total) for…
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Do the President and Vice-President Have An Appropriate Compliance Program?
With the indictment of "Scooter" Libby, and an ongoing investigation by Prosecutor Fitzgerald, one has to ask how a leak such as this could have happened. If this was a US corporation or a business and there was alleged criminal activity occurring within the corporation, a prosecutor might be looking at the entity to discern…
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KPMG- The Civil Side
According to the Wall Street Jrl here, it looks like the court has given preliminary approval in the class action suit resulting from the KPMG tax shelters. The amount – $225 million. The settlement appears to include the Sidley Austin law firm. (esp)
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Happy Birthday Blog
This blog started on November 1, 2004, and today marks our first birthday. We thank all of our readers, and hope that you will continue to write us, read us, and send us bloggable information. (esp) & (ph)
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