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Is AIG the Next . . . ?
With all the turmoil swirling around American International Group Inc., I wonder whether the company will become the new poster-child for corporate misconduct. An insurance company is built on trust, that the money given to them today (the float, as Warren Buffett discusses ad nauseam in his letters to shareholders of Berkshire Hathaway) will be
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SEC Sues Former IMPATH Inc. Officers for Fraudulent Accounting
The SEC filed a securities fraud lawsuit alleging accounting fraud and self-dealing against seven former top executives at IMPATH, Inc., a company that provided diagnostic and laboratory services for cancer treatments before it filed for bankruptcy in 2003 (complaint here). Among the seven former executives named as defendants are Anuradha Saad, former CEO and chairman
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Scrushy Trial Starts Up Again
After a one week hiatus, the trial of Richard Scrushy has resumed. After the fifth of the Guilty CFOs, Weston Smith, completed his direct testimony on Monday, March 21, the court cancelled Tuesday’s session because of a juror’s illness, and a planned recess for the rest of the week started a day early. The sick
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Lawyers Everywhere at AIG
The SEC has launched another set of subpoenas to twelve American International Group Inc. executives, on top of the scheduled deposition of former CEO Maurice Greenberg set for April 12, as part of an ever-expanding probe of the multinational insurance company. In addition, another senior executive with close ties to Greenberg, Michael Murphy, apparently has
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Statute of Limitations May Not Be Suspended for Evidence-Gathering in Foreign Countries When Application Made After Evidence Received
One aspect of international white collar crime investigations that is problematic for the government is the delay in gathering evidence from outside the United States, which can be a laborious process. A federal statute, 18 U.S.C. Sec. 3292, permits a district court to suspend the running of the statute of limitations by up to three
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Ex-Prosecutors Landing As Chief Compliance Officers
An article in Corporate Counsel (available at Law.Com here) discusses how some of the leading insurance companies that are being investigated by Eliot Spitzer and the SEC have hired former prosecutors to lead their compliance efforts. Even higher up the ladder, Marsh & McLennan promoted a former supervisor of Spitzer in the New York Attorney
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White Collar Crime – International
White Collar Crime is not unique to the United States. A new paper is listed on SSRN, although the abstract is all that now appears. The paper by Amarjeet Sinth, discusses white collar crime in the context of Singapore. The abstract states that the piece examines "the lack of comprehensive statistical data and the dearth
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Is the Fuse Burning Down at AIG?
Things just seem to get worse by the week at American International Group Inc. After long-time CEO Maurice Greenberg resigned last week because of the multi-agency investigation of an AIG-General Re reinsurance contract that has all the hallmarks of accounting window dressing rather than a real economic exchange, two senior executives — one the (now
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Wal-Mart Vice-Chairman Resigns Over Expense Account Irregularities
Thomas Coughlin, vice-chairman of Wal-Mart and one of the last remaining executives and board members from the reign of company founder Sam Walton, was forced to resign because of problems regarding the reimbursement of expenses. The company filed an 8-K (here) with the SEC stating: The Company’s request for Mr. Coughlin’s resignation arose from a
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Quattrone Challenges NASD’s Permanent Bar
Frank Quattrone, who was convicted last year of obstruction of justice (the case is currently on appeal to the Second Circuit), is challenging the permanent bar on associating with any broker-dealer imposed by the NASD. The basis for the NASD’s disciplinary action is that Quattrone invoked his Fifth Amendment right and refuse to testify in
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