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“You ought to go down fighting.”
These is just something irresistible about the quotes that emerge from the parallel accounting fraud trials of Bernie Ebbers in New York and Richard Scrushy in Birmingham, Alabama. In the HealthSouth case, former CFO Bill Owens completed his eighth day on the witness stand (time sure flies by when you’re having fun) and the government
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“The most impeachable witness ever to hit a witness stand.”
Scott Sullivan, former CFO of WorldCom, continued his testimony tying Bernie Ebbers to the accounting fraud at the company. Sullivan recounted how WorldCom entered negotiations with Verizon Communications Inc. in 2001 about a possible merger, but Ebbers ended the talks because due diligence by Verizon likely would have revealed the fraud. Sullivan said that Ebbers
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Operator of Ponzi Scheme Seeks Tax Refund
A potential new high (or low) in chutzpah may have been reached in by George Fiorini, who agreed to plead guilty last year to mail fraud, tax evasion, and ITSP charges related to a ponzi scheme called the "Ten Percent Plus Plan" that bilked at least 170 investors — as usual, many them elderly and
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Texas DA Pleads Guilty to Being Addict in Possession of a Firearm
The underlying crime is not a white collar offense (weapons possession under Section 922), but the defendant certainly qualifies as a white collar professional: a District Attorney in the Texas Panhandle region. Richard J. Roach entered a guilty plea on Feb. 8 to a Section 922(g)(3) charge of being an addicted or unlawful user of
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NY Attorney Convicted Related to Representation of Radical Egyptian Sheik Client
New York attorney Lynne Stewart was convicted of conspiracy, giving material aid to terrorists, and defrauding the government for smuggling messages from her client — Omar Abdel-Rahman, a radical Egyptian sheik sentenced to prison in 1995 for conspiracy to kill Egyptian President Mubarak and blow up landmarks in the New York City — to his
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Two More Mutual Fund Market Timing Settlements
The SEC entered into settlements with two more mutual fund companies regarding improper market timing by favored customers that effectively permitted the customers to bypass the 4:00 p.m. settlement time and engage in late trading to the detriment of other investors in the funds. The settlements by Bank of America (for the mutual funds marketed
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“This conversation did not take place.”
The Owens Tapes have been admitted at the trial of former HealthSouth CEO Richard Scrushy, including Scrushy’s statement regarding the non-existence of certain conversations. The defense had fought vigorously to keep the tapes made from a wire worn by former CFO Bill Owens from being admitted at trial. After foundational testimony from Owens and an
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Sixth Circuit Mail Fraud Decision
The Sixth Circuit issued a decision on Feb. 8 (U.S. v. Douglas) reversing the dismissal of an indictment of two former United Auto Workers representatives charging them with mail fraud, conspiracy, and Hobbs Act extortion related to union demands made as part of a contract negotiation. Donny Douglas and Jay Campbell were officials of Local
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Attorney-Client Privilege Ruling in Shareholder Suit Against Martha Stewart Living Omnimedia
Martha Stewart’s sale of ImClone Systems stock has spawned a cottage industry of cases beyond the criminal prosecution (and now appeal), including the SEC’s civil action alleging insider trading and a shareholder lawsuit against her company, Martha Stewart Living Omnimedia, alleging violations of Rule 10b-5 for failing to make proper disclosure about her legal situation.
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It Could Get a Bit More Expensive to Violate the Securities Laws
The SEC has raised the maximum Civil Monetary Penalty it can impose for violations of various provisions of the federal securities laws (including the Sarbanes-Oxley Act), as detailed in a final rule adopted by the Commission that becomes effective on Feb. 14 — Happy Valentine’s Day! (Rule available here). The changes range from $5,000 to
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