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Grand Jury Investigation of Milberg Weiss Lawyers Heats Up
The grand jury investigation of leading lawyers from famed securities class action firm Milberg Weiss is expanding, according to a report in the Wall Street Journal (here). According to the Journal, two former Milberg Weiss partners have received immunity, and one has testified before the grand jury. The investigation has already produced the indictment of…
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Division of Authority in Ohio GOP Fundraiser Investigation
The brouhaha triggered by the revelation that prominent Ohio Republican fundraiser Tom Noe may have defrauded the Bureau of Workers’ Compensation through non-existent investments in rare coins has resulted in an interesting division of authority over the investigation among federal and state prosecutors. A press release (here) issued by the U.S. Attorney’s Office for the…
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Louisiana Congressman’s Home Searched
CNN reported here on government searches of the homes and vehicle of United States Representative William Jefferson (Louisiana, D). CNN states "Jefferson was elected to Congress in 1990 as the first black House member in the state since Reconstruction. He serves on the influential House Ways and Means Committee." (esp)
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The Investigation of Berkshire Hathaway’s Insurance Subsidiaries Just Keeps Going
The wide-ranging investigation of the reinsurance industry for its "finite insurance" products that were used by purchasers to engage in earnings management shows no signs of abating, according to Berkshire Hathaway’s most recent quarterly report (here). The company’s 10-Q — filed as usual on a Friday after 5:00 p.m. — has disclosures about the various…
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Corruption Charges in Chicago
When the conversation turns to corruption, Chicago is frequently near the top of the list ("vote early and often" and all that), and two recent indictments carry on the tradition. In an indictment filed Aug. 3, a former trustee for the Illinois Teacher’s Retirement System and two Chicago attorneys were charged with seeking kickbacks from…
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Harvard Pays $26 Million to Settle False Claims Case
The federal government settled its long-running civil False Claims Act case against Harvard University and two University advisors who worked on a program funded by USAID to provide advice to the post-Communist Russian government on how to structure a market economy. Harvard agreed to pay $26 to settle the false-billing claims, and the two advisors,…
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SEC Doesn’t Get It
Reported here (AP Ala.Com) and here (Wall Street Jrl) are how two judges (one in the civil case and another in the criminal case) reached the same conclusion in the Richard Scrushy case – the DOJ and SEC had worked too closely together. The SEC is concerned that these rulings will obligate them to notify…
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FCPA Investigations Hit DaimlerChrysler and Oil Companies
Investigations of possible violations of the Foreign Corrupt Practices Act are hitting major international companies. DaimlerChrysler has been under investigation since August 2004 for possible bribes paid by its Mercedes division, an investigation triggered by a lawsuit filed by an accountant for the company who claimed he was fired because he tried to blow the…
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Does This Sound Like Insider Trading?
The SEC filed an emergency action in the U.S. District Court for the Southern District of New York (it’s favorite jurisdiction) to freeze an account that traded in call options in Reebok stock in the two days before the company announced that it would be acquired by Adidas in a friendly takeover, which caused Reebok…
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Will KPMG Dodge the Indictment Bullet?
It appears that KPMG will avoid a criminal indictment for its sale of tax shelters as prosecutors are seeking a settlement with the firm that will likely involve a civil penalty and perhaps a deferred prosecution agreement that allows the firm to avoid the fate of Arthur Andersen. A Bloomberg story (here) indicates that the…
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