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Illinois Governor’s Office Subpoenaed for Records in Corruption Investigation
An AP story (here) states that Illinois Governor Rod Blagojevich’s office and campaign fundraising committees have been subpoenaed for records by a state grand jury investigating corruption. The investigation concerns possible job appointments being given in exchange for campaign contributions, and the grand jury seeks a broad array of records on campaign contributions and hiring. …
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More Dismissals at Delphi
The internal investigation at Delphi, the large auto parts supplier, is coming to a close, with more executives being dismissed for their involvement in improper accounting. In early March, the company announced the dismissal of its CFO, Alan Dawes, and two other accounting executives (see earlier post here), and Delphi’s Form 8-K filing (here) on…
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(Belated) Happy First Birthday to Sentencing Law & Policy
While Doug Berman is on top of all sentencing issues, even he missed Sentencing Law & Policy’s first birthday (here), but we’re even later in wishing him (it?) a Happy Birthday! SL&P is, quite simply, the best, and should not be missed for a day, lest you fall further behind on all that takes place…
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Update On the (So-Called) Detroit Terrorism Trial
The so-called Detroit Terrorism trial, which ended with the government admitting that its theory of prosecution was unsupported by the evidence, resulted in an apology by outgoing Deputy Attorney General James Comey recently. An AP story (here) quotes Comey as stating, "I think that the people we represent — the people of the United States…
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Perelman Wins $604 Million Verdict Against Morgan Stanley
A jury awarded financier Ronald Perelman $604.3 million in damages against Morgan Stanley related to its faulty advice regarding the sale of his interest in the Coleman Company to Sunbeam in 1998 (AP story here). Morgan Stanley advised Sunbeam in the acquisition, and Perelman accused the firm of failing to disclose Sunbeam’s fraudulent financials. Perelman…
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First Thing We Do, Let’s Pay All the Lawyers
With American International Group caught up in a widening federal and state investigation of its accounting practices, the company took steps to protect its directors by entering into indemnification agreements on May 9 with them that contractually obligates AIG to advance all costs — most importantly, attorney’s fees — in connection with the investigation and…
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FBI Unable to Account for Health Care Fraud Funding
A New York Times story (here) discusses a report that will be issued this week by the Government Accountability Office (GAO) reviewing the FBI’s spending of funds appropriated by Congress for health care fraud investigations. According to the Times’ discussion of the report, a portion of an annual appropriation of $114 million from the Medicare…
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Greenspan Gives His Imprimatur to the Sarbanes-Oxley Act
Federal Reserve Chairman Alan Greenspan endorsed the changes in business practices mandated by the Sarbanes-Oxley Act in the commencement address (here) delivered to the graduates of the Wharton School at the University of Pennsylvania on May 15. In a speech that stressed the need for trust and honesty in business, Greenspan said: The Sarbanes-Oxley Act…
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General Re Executive Is Target of DOJ Investigation While AIG May Dismiss More Executives Involved in Accounting Problems
In typically cryptic fashion, Berkshire Hathaway disclosed that one of its executives it now the target of a grand jury investigation in connection with the investigation of the AIG-General Re reinsurance transaction (see earlier post here). The executive will be placed on paid leave as of May 16, along with another executive who is also…
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Extradition Issue in Price-Fixing Case
With globalization, more and more international issues are arising in the area of white collar crime. The issue this time is whether price-fixing is a basis for the extradition of a British executive. (see New York Times here) Extradition requires adherence to the double criminality rule and rule of speciality. The double criminality rule requires…
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