The changes, which could require local U.S. attorneys to obtain input from high-level Justice Department officials before seeking corporate indictments, could be unveiled by Deputy Attorney General Paul J. McNulty next month, according to sources briefed on the issue who spoke on condition of anonymity because the deliberations are not yet complete. The administrative revisions also may forbid government lawyers from forcing companies to stop paying attorney fees to employees ensnared in investigations, a move that was declared unconstitutional in June by a federal judge in New York.

Separately, Senate Judiciary Chairman Arlen Specter (R-Pa.) is drafting legislation that would bar prosecutors from forcing companies to waive their attorney-client privilege over internal documents in order to avoid criminal charges, a key part of the current guidelines. Specter, who has received support from Sen. Patrick J. Leahy (D-Vt.), could release the bill as early as Monday.

Debate about the appropriate use of prosecutorial power over business has simmered for years, reigniting in 2002 when the Justice Department charged Arthur Andersen LLP with obstruction of justice, a move that prompted partners and clients to flee and hastened the death of the audit firm...

For business groups, the biggest concern is waiver of the attorney-client privilege to avoid prosecution, a move that puts sensitive documents and e-mail messages -- often involving communication with company lawyers -- into the hands of prosecutors, securities regulators and, ultimately, plaintiff lawyers who can use the waivers to obtain potentially damaging information in costly class-action lawsuits.

Labels: Department of Justice, New York AG, pre-trial agreements

Labels: Dealbreaker, Edward Ehee, Fraud, hedge fund, SEC, Viper

Allegedly, a group of managers conspired to channel off at least €200 million from the company's Communications division to a series of shell companies. The funds landed in secret accounts, which investigators suspect were used to bribe officials into awarding contracts to Siemens. Regardless of location -- Greece, Nigeria, Russia or Indonesia -- Siemens is accused of using the funds to win orders. And, the same methods were likely used at the company's other divisions.

In the end, is it possible that not 200, but perhaps 300 or even €500 million flowed through these secret channels? Is it possible that a team of creative employees skimmed off sums in the triple-digit millions of euros, without senior managers becoming aware of the situation, as they claim? And, why didn't company management and the supervisory board use all of their powers to clear up the matter, which they must have been aware of since 2003?

Labels: bribery

Labels: Bill Lerach, David Bershad, David Boies, kickbacks, Lazar, Melvyn Weiss, Milberg, Milberg Weiss

Labels: bribery, Siemens

Labels: Quest

The Meltdown.

The Apology.

Labels: background checks

GICs guarantee institutions a certain rate of return on specific amounts of money. Providers promise to pay an agreed rate and get the money to invest in return. Profits are made on the spread between the rate the provider offers the buyer and the returns it can generate itself.

Municipalities often use GICs when they get large sums of money from a recent bond offering, but don't want to spend the cash straight away. Municipalities often ask brokers to help them track down the most attractive GICs.

"The investigations appear to be centered on broker activities in the municipal GIC market," said Thomas Abruzzo, managing director at rating agency Fitch and senior credit analyst for financial guaranty companies. "We don't anticipate that this will create problems for GIC providers, but that depends what things might be uncovered. It's an ongoing investigation and the story only started snowballing this week."

Labels: AIG, Department of Justice

• $750,000 - Azimut pleasure yacht
• $220,000 - 1999 Ferrari Maranello 550
• $230,000 - 2001 Ferrari Maranello 550
• $30,000 - 2004 Land Rover
• $30,000 - 2004 Volvo
• $9 million - proceeds from sale of stake in New York Islanders hockey team
• $6 million - home in Upper Brookville, New York, jointly owned with his wife
• $20 million - bond portfolio transferred to his wife
• $5 million - transferred to real estate trust of teenage daughters

Labels: Department of Justice

Labels: Comverse

Labels: bribery

Labels: identity theft

Labels: Gary Weiss

Labels: Milberg Weiss

Labels: Eliot Spitzer, Houston's Clear Thinkers, New York AG

Labels: Melvyn Weiss, Milberg Weiss

Labels: Techdirt

Labels: Cendant