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More on Rigas’ Sentences- A Different Perspective
Many were concerned with the Court’s decision in Booker and what effect it might have in white collar cases. These individuals can sleep easy tonight as the sentences issued today, to father and son Rigas, far exceed many we saw in pre-guidelines years. These sentences of 15 and 20 years send a clear message that…
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Sentencing of John and Timothy Rigas
Adelphia Communications founder and former CEO John Rigas received a 15-year term of imprisonment, while his son Timothy received a 20-year sentence, both of which are substantially below the 215-year term sought by the government under the Federal Sentencing Guidelines. Nevertheless, John, who is 80 years old, received what is effectively a life-term because he…
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A Cornucopia of Corporate Crime Issues
The issues related to the investigation and prosecution of corporate misconduct are front and center today. The Wall Street Journal has a front-page article (here) about the focus on corporate crime by federal prosecutors, including the expanding use of deferred prosecution agreements that avoid the pitfalls of an Arthur Andersen scenario (a corporate death sentence,…
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Were the Tyco Jurors “Just Sadly Mistaken”?
Charles Stillman, the lead defense lawyer for former Tyco CFO Mark Swartz, said after the guilty verdict for his client that the jurors "are just sadly mistaken." An article in the Wall Street Journal (here) includes statements made by two jurors who said that the testimony of Swartz and former CEO Dennis Kozlowski was not…
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Scrushy- How Long is Too Long?
Ebbers and Kozlowski have had a resolution of their cases, although most likely one they are not pleased with, as both were found guilty. Adelphia Communications executives John and Timothy Rigas are set for sentencing today. And the jury is still out for Richard Scrushy. How long should a judge keep a jury out, especially…
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Wine Fraud Can Be Wire Fraud
When you have a wine fraud, how do you charge the crime. In the case of the United States Attorney’s Office for the Central District of California, the case becomes a wire fraud and other charges. According to a recent press release of the of this office, a Colorado wine merchant will be pleading guilty…
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How Will it Play to the Jury
Kurt Eichenwald of the NYTimes, has a wonderful article here titled, "Big Paychecks Are Exhibit A at C.E.O. Trials." He states, "the Kozlowski verdict demonstrates that, at a criminal trial, high pay scales can serve as the government’s Exhibit A of the defendant’s potential knowledge of wrongdoing." What is particularly interesting about this statement is…
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Civil Resolution in Environmental Case
Many cases are resolved by the government civilly. In some cases it is because the element needed to proceed criminally is not present. That is the government may not have acted willfully. It is possible in some cases that Congress only permitted civil penalties, as opposed to criminal sanctions. In other cases it is because…
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Another Two Cents on the Kozlowski/Swartz Guilty Verdict
I figured I’d throw in my two cents (and I’m rounding up on the value) about the convictions of former Tyco CEO Dennis Kozlowski and CFO Mark Swartz. First, a question I heard on two news programs as I was flipping the channels was, "How will this verdict affect the Scrushy prosecution?" Not one iota,…
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Determining the Reasonableness of an Upward Departure in a Fraud Case
The Sixth Circuit’s decision in U.S. v. Meeker (here) involves an upward departure by the district court for a fraudulent scheme by an investment adviser who took advantage of long-time clients. Meeker had operated a tax service when he began soliciting clients to invest in conservative securities, gathering approximately $5.1 million. Rather than invest the…
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