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SEC Adds Civil Fraud Charges Against Former Bristol-Myers Executives
The SEC added its two cents to the Bristol-Myers Squibb Co. channel-stuffing accounting fraud by filing civil securities fraud charges against former CFO Frederick Schiff and executive vice president Richard Lane. Schiff and Lane were indicted this past June on conspiracy and securities fraud charges arising from the scheme to pump up the company’s sales…
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When the Right-Hand Man Turns
The indictment of former Chicago Sun-Times publisher F. David Radler, along with the former general counsel for Hollinger Inc. and Lord Conrad Black’s private holding company, Ravelston (see earlier post here), signals a significant step forward in the government’s civil and criminal investigation of large payments made to Black and other senior officers of Hollinger,…
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Who Pays for the Lawyers When Accounting Fraud Hits the Company?
When a company and its senior executives are caught up in a government investigation, it sometimes seems like an invitation to a Lawyers Full Employment seminar because of the number of fronts on which the company has to fight, and the number of lawyers that have to be hired for individual officers, directors, and employees…
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Chicago Bridge & Iron Subpoenaed by SEC in FCPA Investigation of Halliburton
Chicago Bridge & Iron Co. N.V., a Dutch construction company, filed an 8-K that makes a terse disclosure that the company received an SEC subpoena as part of an Foreign Corrupt Practices Act investigation of possible bribery in connection with the construction of a liquefied natural gas (LNG) facility in Nigeria. The company’s entire release…
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Animal House and Federalism
For aficionados of one of the finest movies ever made, you know that the Deltas extracted their revenge on Dean Wormer and Faber College in the annual homecoming parade, involving such traditional college hijinks as assault with a deadly weapon, mayhem, and the like. It’s not just in the movies that such fun among the…
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Tax Protester Tricks Net Upward Departure
Within the tax protester movement, there are those with firmly held beliefs on the impropriety of the federal tax system. Some take their protests beyond just refusing to pay taxes by seeking to exploit the system and take advantage of the various protections it affords to individuals. In U.S. v. Saldana (here), the Fifth Circuit…
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Old(er) Bloggers
An article from the San Jose Mercury News entitled "Bucks for Blogs" (here) caught my eye, especially this opening paragraph: "When it comes to blogging, big corporations are turning to twentysomething mavericks for advice. If they can’t lick them, they may have to join them." How about the 40+ mavericks who are members of Paul…
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Cosmed Settlement
DOJ and EPA have entered into a settlement (subject to 30 day public comment and court approval) with Cosmed-Group, Inc. for environmental violations. The DOJ press release states that the settlement reached is for Clean Air Act violations and "[u]nder the consent decree, . . . Cosmed will pay a $500,000 civil penalty and spend…
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MBIA Joins the Wells Notice Parade
MBIA Inc., a large municipal bond insurance company, disclosed that it has received a Wells Notice from the SEC indicating that the Enforcement Division staff intends to recommend to the Commission the filing of a civil action for securities fraud. The case involves MBIA’s purchase of "finite risk insurance," which is the same product that…
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Former Kansas Congressional Candidate Indicted for Misusing Campaign Funds
Adam Taff, who ran for the Republican nomination in the Kansas Third Congressional District in 2004 and lost by 207 votes, faces a more daunting challenge because he has been indicted on a wire fraud charge and for misusing campaign funds for personal use. Taff was charged along with mortgage broker John Myers for their…
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