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Cooperation Buys Probation for Former HealthSouth Exec
Often when the government is investigating a company or individual, they uncover criminal conduct that may be outside the focus of their initial investigation. The question arises – what do you do with this evidence? These extraneous criminal charges sometimes serve as the basis for the government securing cooperation agreements with individuals who will provide…
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Spitzer Raking in Pleas
N.Y. Attorney General Eliot Spitzer is building a pretty impressive file of pleas in the ever continuing investigation of the insurance industry. Bloomberg News reports here in the New York Times that the latest pleas are "[t]wo former insurance brokers at the Marsh & McLennan Companies and a former underwriter at Zurich Financial Services." Although…
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Cendant Exec Sentenced to Ten
After a seventh month trial and 33 day deliberation (see here and here), former Vice Chairman of Cendant, E. Kirk Shelton, was sentenced today to 10 years in prison. The Wall Street Journal (AP) also notes here that the judge ordered him "to pay almost $3.3 billion in restitution, including an initial payment of $15…
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CIA Leak Case – Are We Going in Circles?
We left off here, asking, – where is this investigation heading? John Dean looks squarely at Rove here, and speaks about his thoughts and in one instance a comparison to Watergate. Then the New York Times here titles its article, "2 Aides to Rove Testify in CIA Leak Inquiry." Then you have columnist Novak and…
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Plea in Fen-Phen Fraud Case
Fen-Phen, a weight loss drug, was removed from the market in 1997. (See here). As one might suspect, it was followed by lawsuits to compensate those injured, and a class action settlement. (see here). A recent sentencing in Mississippi concerns fraud related to this settlement. A DOJ Press Release states here that, "[a] Mississippi woman…
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Major Settlement in Enron Case
The Canadian Imperial Bank of Commerce (CIBC) reports here in a press release that it has reached an agreement "in principle to settle the Enron class action litigation entitled Newby v. Enron Corp., brought on behalf of Enron security purchasers." The lawsuit was pending in federal court in Houston. The press release states in part:…
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Kozlowski and Swartz Remain Free Pending Sentencing Hearing
The sentencing of Dennis Kozlowski and Mark Swartz has been officially set for September 19th. At a hearing today, a New York State court judge considered whether these two individuals should remain free on bail pending the upcoming sentencing. The court rejected the prosecutor’s argument that the two remained a flight risk and in so…
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MCA – With Pleas all in, is the Case Over?
In many white collar cases, prosecutors start at the bottom and move up the ladder as they secure new information and the assistance of lower level employees through the use of cooperation agreements. Pleas are often offered to employees within a corporation to testify against higher-ups. And as recently seen in many cases, the government…
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Who Is Minding the Cash Drawer?
The old saw is that the best way to steal from a store or bank is to work for it, especially if you’re a trusted employee. Similarly, when the accounting firms advise clients on their internal controls, one of the key steps to ensuring that employees do not embezzle is to require double checking of…
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Getting a Resentencing in the Seventh Circuit
As Doug Berman points out on the Sentencing Law & Policy blog (here), the differing approaches of the circuit courts on the question of whether to remand to the district court for resentencing in light of the advisory nature of the Guidelines has created some inequities, at least regarding what must be shown to get…
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