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12/28/2006
Latest Attempt at Huge Law Enforcement Database
12/27/2006
Apple Stock Options Investigation - It's Not Over Yet
Miss Rosemary Ekosso Lays into BAE
Nortel Reaches Multi-Billion $ Settlement in Fraud Suit
Holiday Catch-Up - What'd I Miss?
Holiday Hiatus
Six Siemens Bribery Probe Suspects Released
Morgan Stanley Blames 9/11 For Failure to Turn Over Emails
IBM Ditches Options for Directors in Favor of Cold Hard Cash
Philippe Jabre Returns to Hedge Funding
Holiday Reading Recommendations from a P.I.
SEC Risk Guru, Charles Fishkin, Heads to Private Practice
Ideoblog on Corporate Governance and Backdating
I Know You Love the Classics
More on Thomas Ganswindt, the Former Siemens Board Member Arrested in the Ongoing Bribery Probe
Techdirt on Bank IPO Class Action Ruling
Fannie Mae Execs Facing Suit from Government Oversight Office
Former SEC Chief Enforcement Officer Signs on at JPMorgan Chase
"Lucky Directors"
Asher Weizman, Soccer P.I.
Broadcom to Face Formal SEC Inquiry
Siemens Aware Bribery Probe Brewing Since '04?
HP Ditches Sonsini, General Counsel Too
Senate Passes Anti-Pretexting Bill
Senior Ex-Siemens Official Held in Bribery Probe Has a Name
Today's Mystery Visit
In Corporate Scandal, The Road Less Travelled
Siemens Bribery Probe Expands
Former Collins & Aikman CEO Facing Criminal Charges
Steven Schulman Out at Milberg
Skilling Does Not Pass GO, Goes Directly To Jail
Prosecutorial Guidelines, They are a' Changin'
Skilling Gets Brief Reprieve on Jailtime
Borat: 1, Drunken Racist Frat Boys: Zippy
Home Depot - 25 Years of Stock Option Backdating?
Turnabout is Fair Play, Public Corruption Investigations Up 30% in the Past Four Years
Former Cendant Exec Gets House Arrest on Fraud Charges
SEC Probe For Siemens
Witness Systems CEO Resigns
The New Blogger Beta 12/08/2006
Repeat After Me...Background Checks are Your Friend
HP Settles With California AG on Spying Episode
Delay of Game
Anti-Pretexting Legislation Goes Federal
Hard Times for Sonsini Continue on HP Investigation Tactics
Senate Hearing Raises Questions about SEC Preferential Treatment of Morgan Stanley's John Mack
13 Firms Named in Short Seller Price Rigging Class Action
Feds Gain Access to Expert Witness Pay Records in Milberg Trial
MPAA Torpedoes California's Anti-Pretexting Legislation
Data Mining Blog & Personal Data as a New Form of Pollution
AIG's Maurice Greenberg the Man Behind the Paulson Committee Report?
HP Execs Profiting on Pretexting Flap
Backdating Bite Coming to Canada?
"Very Elegant Whining" - The Paulson Committee Releases Market Regulation Findings
Latest Attempt at Huge Law Enforcement Database
Codename: ONE DOJ. While I can't say for sure, this sounds much like the "The Matrix" or Multistate Anti-Terrorism Information Exchange. This was a similar system that was proposed, developed and shelved a few years back. Is this the same program under a new, less machine-led-humans-as batteries-armageddon moniker?
The Maxtrix was designed to aggregate public records along with private data sources (credit headers, etc.) to create one massive personal info chopper. For the time being, ONE DOJ appears to be a much more modest effort, geared toward nation-wide availability of casefiles and investigative reports from around the country.
Techdirt, for its part, will tell you why this is a bad idea (again).
-- MDT
The Maxtrix was designed to aggregate public records along with private data sources (credit headers, etc.) to create one massive personal info chopper. For the time being, ONE DOJ appears to be a much more modest effort, geared toward nation-wide availability of casefiles and investigative reports from around the country.
Techdirt, for its part, will tell you why this is a bad idea (again).
-- MDT
Labels: database, Matrix, Techdirt, Total Information Awareness
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Apple Stock Options Investigation - It's Not Over Yet
It pains me to even think bad thoughts about the fine folks at Apple. This is a company whose products I've used since their earliest incarnations and have great affection for (my wife would say too great). I also think that Apple, by in large, acts pretty responsibly as a corporate citizen. Not saying they are perfect, but especially with Steve Jobs in the driver's seat the company expresses a vision and ethos of progress and refinement. These are things I can get behind, whether we're talking about technology or civil society. Thus it pains me to observe that Apple may be in deeper waters than it was originally thought when it comes to potential problems arising from stock option backdating.
Some prominent (and probably pre-emptory) resignations have already taken place, including that of former Apple General Counsel, Nancy Heinen and former Apple CFO Fred Anderson. Everybody across the board has lawyered up, including Apple itself. With an SEC investigation of the company still looming, this Mac addict is starting to sweat...just a little. Falsified documents will do that to ya.
Read the absolute latest from the FT.
-- MDT
Some prominent (and probably pre-emptory) resignations have already taken place, including that of former Apple General Counsel, Nancy Heinen and former Apple CFO Fred Anderson. Everybody across the board has lawyered up, including Apple itself. With an SEC investigation of the company still looming, this Mac addict is starting to sweat...just a little. Falsified documents will do that to ya.
Read the absolute latest from the FT.
-- MDT
Labels: Apple, backdating, stock options
Miss Rosemary Ekosso Lays into BAE
Arms dealing and corruption part of your daily routine? I would not suggest messing with Miss Rosemary.
-- MDT
-- MDT
Labels: arms dealing, BAE, corruption, Rosemary Ekosso
Nortel Reaches Multi-Billion $ Settlement in Fraud Suit
And yea the shareholders were very pleased, as Sean Coffey had once again brought them to the promised land.
-- MDT
12/26/2006
-- MDT
Labels: Bernstein Litowitz and Berger, class action, Nortel, Sean Coffey
Holiday Catch-Up - What'd I Miss?
Welcome back folks. The Daily Caveat will be in mid-week and then I'll jet off again to visit the Louisiana branch of our NJ/LA martital union. I hope the holiday weekend treated everyone well. Dog boarded, cats in tow, we made our way out towards the Eastern shore and up to NJ for the weekend.
We also hit NYC for a quick brunch with friends and visited the the usual spots, including Rockefeller Center. I have to say the tree was pretty mediocre this year - it looked down right droopy. Swampy, even. Kind of Christmas on the bayou - which of course makes me feel right at home.
Now...to business..what'd we miss (I'll keep updating this over the course of the day, as time allows):
-- MDT
12/24/2006
We also hit NYC for a quick brunch with friends and visited the the usual spots, including Rockefeller Center. I have to say the tree was pretty mediocre this year - it looked down right droopy. Swampy, even. Kind of Christmas on the bayou - which of course makes me feel right at home.
Now...to business..what'd we miss (I'll keep updating this over the course of the day, as time allows):
- Former FBI directory Louis Freeh is set to lend a hand at DaimlerChrysler, running their internal investigation into the recent bribery scandal. Siemans, DaimlerChrysler...what is it with the Germans this year?
- Accusations of faked documents arise in Apple options probe. (Say it ain't so, Steve).
- Nikko dumps execs implicated in falsified earnings report. Several asset managers have also cut ties to the firm.
- Biomet facing scrutiny on options backdating.
-- MDT
Labels: Apple, bribery, DaimlerChrysler, Louis Freeh, Louisiana, Nikko Biomet
Holiday Hiatus
See you all back next week. I'll probably be back online for Wed. morning.
Happy holidays to ya. Go Saints!
-- MDT
12/22/2006
Happy holidays to ya. Go Saints!
-- MDT
Six Siemens Bribery Probe Suspects Released
Released, that is, after "providing evidence that supports the allegations against them."
The real questions is, who else they might have provided evidence against. For those keeping score, Thomas Ganswindt, the former head of Siemens telecommunications equipment unit was among those released. It is unclear whether any or all of the six will face charges and they remain under investigation.
More here.
-- MDT
The real questions is, who else they might have provided evidence against. For those keeping score, Thomas Ganswindt, the former head of Siemens telecommunications equipment unit was among those released. It is unclear whether any or all of the six will face charges and they remain under investigation.
More here.
-- MDT
Labels: bribery, Siemens, Thomas Ganswindt
Morgan Stanley Blames 9/11 For Failure to Turn Over Emails
Unamused, the NASD filed a complaint earlier this week. Morgan Stanley, they claim, had backed up their systems on August 30, 2001 and has since that time been systematically deleting emails that would have been relevant to the investigation into whether or not Morgan Stanley was routinely overcharging customers. This would also not be the first time Morgan Stanley has dragged its collective wingtipped heels when asked to turn over potentially incriminating details to regulators. The SEC has already slapped the firm on the same issue.
Read on at The Washington Post.
-- MDT
Read on at The Washington Post.
-- MDT
Labels: disclosure of evidence, Morgan Stanley, NASD, SEC
IBM Ditches Options for Directors in Favor of Cold Hard Cash
Comment here from Eric Jackson's "Breakout Performance" blog, as well as the full text of the WSJ article detailing IBM's reasons for the change....
-- MDT
-- MDT
Labels: backdating, Breakout Performance, directors, Eric Jackson, IBM, stock options
Philippe Jabre Returns to Hedge Funding
The non-compete from GLG is over. With his personal scandal is more or less behind him and Philippe Jabre is getting back on the horse. Jabre has opened Jabre Financial Services in Switzerland and is building up his initial staff with some notable friends and family, including former GLGers, James Saltissi and Daniel Horsely and former Morgan Stanley head of risk management (as well as brother in law), Philippe Riachi. $2.5 billion is the year one target for assets under management.
Jabre had previously opened a firm called Ballena Captial, which was a vehicle for managing his own substantial wealth. The launch of Jabre Financial Services marks his return to managing other peoples money.
-- MDT
Jabre had previously opened a firm called Ballena Captial, which was a vehicle for managing his own substantial wealth. The launch of Jabre Financial Services marks his return to managing other peoples money.
-- MDT
Labels: Ballena Capital, FSA, GLG, hedge fund, Jabre Financial Service, Morgan Stanley, Philippw Jabre
Holiday Reading Recommendations from a P.I.
Not from The Daily Caveat, though. In this case the P.I. in question is one Betsy Blumenthal, a Senior Managing Director for Kroll (perhaps you've heard of them?) based in their San Francisco office.
She confided a few of her book-of-'06 picks to the Berkeley, CA-based Ghost Word literary blog. Scroll about halfway down this post to see Mrs. Blumenthal's recommendations - that last minute something for the corporate P.I. on your list.
-- MDT
12/21/2006
She confided a few of her book-of-'06 picks to the Berkeley, CA-based Ghost Word literary blog. Scroll about halfway down this post to see Mrs. Blumenthal's recommendations - that last minute something for the corporate P.I. on your list.
-- MDT
Labels: 2006, Betsy Blumenthal, books, Ghost Word, Kroll
SEC Risk Guru, Charles Fishkin, Heads to Private Practice
The SEC's loss is asset management firm, Alliance Bernstein's gain. Charles Fishkin currently serves as the head of the the SEC's Office of Risk Assessment, which was established in 2004 under SEC Chairman William Donaldson.
Fishkin came to the SEC after spending the first half of his career in private practice, most notably as VP of firmwide risk at Fidelity.
He also, apparently, occasionally finds time to rate books on Amazon.com (Reviewer Rank: 687746) and is an author in his own right.
Mr. Fishkin is expected to finish up at the SEC early in the new year. Here's GARP's take on the SEC's press release announcing Fishkin's departure.
-- MDT
Fishkin came to the SEC after spending the first half of his career in private practice, most notably as VP of firmwide risk at Fidelity.
He also, apparently, occasionally finds time to rate books on Amazon.com (Reviewer Rank: 687746) and is an author in his own right.
Mr. Fishkin is expected to finish up at the SEC early in the new year. Here's GARP's take on the SEC's press release announcing Fishkin's departure.
-- MDT
Labels: Alliance Bernstein, Charles Fishkin, risk assessment, SEC
Ideoblog on Corporate Governance and Backdating
If you are not already stopping by Ideoblog on a regular basis, you should consider adding it to your weekly web trawlings. University of Illinois College of Law professor, Larry Ribstein bangs the drum over there regarding all manner of good stuff. I don't always agree with his conclusions, but I sure do like reading his stuff. You'll find a link to the Ideoblog homepage under the Legal tab in the links section, stage right. Or you could just click on through to read Mr. Ribstein's most recent comments on the whole stock option backdating shebang.
-- MDT
12/20/2006
-- MDT
Labels: backdating, Ideoblog, stock options
I Know You Love the Classics
Classic financial scandals, that is...
And just in time for your holiday reading pleasure, here's a collection of some of the greatest hits of white collar crime, as collected by University of Exeter librarian, Roy Davies. I suggest bookmarking it.
-- MDT
And just in time for your holiday reading pleasure, here's a collection of some of the greatest hits of white collar crime, as collected by University of Exeter librarian, Roy Davies. I suggest bookmarking it.
-- MDT
Labels: corporate scandal, financial scandal, list, Roy Davies
More on Thomas Ganswindt, the Former Siemens Board Member Arrested in the Ongoing Bribery Probe
Techdirt on Bank IPO Class Action Ruling
And why they think, in this case, rejection was the right move for the courts...
What are we talking about? Well, it goes something like this... Back in a mystical time we call the dot com boom, there were lots of shady practices from internet-based companies that had a URL, a superbowl ad and not much else in the way of prospects for success. In turn, securities class action firms experienced their own boom, filing case after case, chasing busted dot coms on behalf of their investors (and boy, as a young investigator it was fun to be in the thick of it).
Another issue arising from this era has been the allegedly questionable conduct of the Wall Street bankers behind many of these IPOs. It has been suggested that they manipulated the prices of these public offerings in order to reap great monetary benefits for themselves on the backs of myriad small investors who got caught in their double-dealing wake.
There have been some individual settlements relating to this issue, but another suit had been working its way forward, in which the most of the biggest Wall Street banks would have had their dirty laundry aired. Earlier this month, plaintiffs received a serious setback when a Federal Appeals Court ruled that several of the 310 conglomerated cases that are part of the potentially massive class action were wrongfully given "class" status.
While this doesn't mean the case, which is being led by embattled plaintiff firm, Milberg Weiss is dead, it is a certainly substantial setback for one of the longest running class actions kicking around the courts. So why does TechDirt say this is all so much the better? Find out.
-- MDT
12/19/2006
What are we talking about? Well, it goes something like this... Back in a mystical time we call the dot com boom, there were lots of shady practices from internet-based companies that had a URL, a superbowl ad and not much else in the way of prospects for success. In turn, securities class action firms experienced their own boom, filing case after case, chasing busted dot coms on behalf of their investors (and boy, as a young investigator it was fun to be in the thick of it).
Another issue arising from this era has been the allegedly questionable conduct of the Wall Street bankers behind many of these IPOs. It has been suggested that they manipulated the prices of these public offerings in order to reap great monetary benefits for themselves on the backs of myriad small investors who got caught in their double-dealing wake.
There have been some individual settlements relating to this issue, but another suit had been working its way forward, in which the most of the biggest Wall Street banks would have had their dirty laundry aired. Earlier this month, plaintiffs received a serious setback when a Federal Appeals Court ruled that several of the 310 conglomerated cases that are part of the potentially massive class action were wrongfully given "class" status.
While this doesn't mean the case, which is being led by embattled plaintiff firm, Milberg Weiss is dead, it is a certainly substantial setback for one of the longest running class actions kicking around the courts. So why does TechDirt say this is all so much the better? Find out.
-- MDT
Labels: class action, IPO, Melvyn Weiss, Milberg, Milberg Weiss, securites, Techdirt, Wall Street
Fannie Mae Execs Facing Suit from Government Oversight Office
A suit of this kind had been expected since at least September. The Office of Housing Enterprise Oversight, in a fit of holiday cheer, filed 101 charges against Fannie Mae formers, ex-CEO, Franklin Raines, ex-CFO, Timothy Howard and ex-controller, Leanne Spencer. OHEO would like to recover as much as $215 million from these folks for their part in Fannie Mae's recent financial shenanigans (a $6 billion overstatement, for starters).
-- MDT
-- MDT
Labels: Fannie Mae, financial overstatement, Franklin Raines, Fraud, Leanne Spencer, Timothy Howard
Former SEC Chief Enforcement Officer Signs on at JPMorgan Chase
A case of keep your enemies closer? Mr. Stephen Cutler has, in is previous role in SEC enforcement, cost JPMorgan billions in settlements and fines relating to the financial firm's various legal and ethical missteps. Cutler is coming aboard JPM in February of '07 as xecutive vice-president and general counsel in February. We wish him well!
-- MDT
12/18/2006
-- MDT
Labels: JPMorgan, SEC, Stephen Cutler
"Lucky Directors"
It is not just corporate executives who have been benefiting from backdated stock option grants. According to a newly released Harvard Law School study, some 1,400 company directors have also reaped the rewards of the practice. Read the full report here.
-- MDT
-- MDT
Labels: backdating, directors, harvard law school, stock options
Asher Weizman, Soccer P.I.
Mr. Weizman is the friendly neighborhood P.I. assisting the Israeli Football Association in sorting out their current match-fixing scandal. Five players are currently in custody and three have been arrested thusfar in the ongoing probe. Details here.
-- MDT
-- MDT
Labels: Asher Weizman, match fixing, Soccer
Broadcom to Face Formal SEC Inquiry
Broadcom announced over the summer that it would be filing restatements covering the ears 2000 to 2005, as well as the first quarter of '06 - all in relation to the granting stock options to executives. The company's own internal review of its options granting process has been completed and the revamped financials are expected sooner rather than later, but in less that good news the SEC has announced that they'll be stepping up their own inquiry into Broadcom's practices into a formal investigation.
-- MDT
12/17/2006
-- MDT
Labels: Broadcom, SEC, stock options
Siemens Aware Bribery Probe Brewing Since '04?
Looks like the trail in the Siemens bribery probe goes back quite a long way. According to recent filings with the SEC, (link goes to EDGAR - search Siemens, form 20-F, 12/11/06) the company was been aware for more than a year of frozen accounts and seized assets amongst the firm's former employees. The question becomes then, what was Siemens planning to do about all this up until the point that international law enforcement officers broke down the front door?
Read all about it, here.
-- MDT
Read all about it, here.
-- MDT
HP Ditches Sonsini, General Counsel Too
While Wilson Sonsini may still do some legal work for HP, Larry Sonsini is out as HP's outside counsel, severing a ten year relationship.
Also seeking new opportunities is former HP General Counsel, Ann Baskins. Law.com does their usual bang-up job on digging deep into Baskin's troubling, scandal-ridden last few months with HP. Recommended reading.
-- MDT
Also seeking new opportunities is former HP General Counsel, Ann Baskins. Law.com does their usual bang-up job on digging deep into Baskin's troubling, scandal-ridden last few months with HP. Recommended reading.
-- MDT
Labels: Ann Baskins, HP, Larry Sonsini, pretexting, Wilson Sonsini
Senate Passes Anti-Pretexting Bill
Signed unanimously this past Friday, the Senate has passed a bill making it illegal to use pretexting to obtain phone records via the heretofore commonly used investigative tactic. The heat and been rising on this issue for more than a year, with many states taking the lead with their own laws forbidding the practice. The recent shenanigans at Hewlett Packard saw things boil over, scalding several executives careers in the process.
Provided President Bush finds time to sign the bill into law, pretexting violations will now result in fines and potential jailtime for offenders. Further details, via InformationWeek.
-- MDT
12/14/2006
Provided President Bush finds time to sign the bill into law, pretexting violations will now result in fines and potential jailtime for offenders. Further details, via InformationWeek.
-- MDT
Labels: HP, pretexting
Senior Ex-Siemens Official Held in Bribery Probe Has a Name
Thomas Ganswindt - the former head of Siemens telecom equipment division. Before his dependence on the insistent hospitality of European law enforcement, Ganswindt reported directly to Siemen's chief exec Klaus Kleinfeld and served on Siemen's central executive board. Ganswindt left Seimans back in September and had most recently served as CEO of Elster Group based out of Luxembourg. Further details on Ganswindt and the ongling Siemens bribery investigation can be found here.
-- MDT
-- MDT
Labels: bribery, Elster Group, Klaus Kleinfeld, Siemens, Thomas Ganswindt
Today's Mystery Visit
Most folks who end up at the Daily Caveat, I understand. IP addresses show upon a regular basis from the SEC, the New York Attorney General's Office, major law firms, investigative firms, etc. These I get. However, how and why someone ended up at The Daily Caveat based on the search phrase "suppliers of hickory handle for hammer in china" leaves me more than a little mystified, I must confess.
I guess I'll have to do the search in BIG G myself to find out.
-- MDT
I guess I'll have to do the search in BIG G myself to find out.
-- MDT
Labels: China, Google, hickory hammer handles, keywords, mystery
In Corporate Scandal, The Road Less Travelled
Rentway... here's a company that back in 2000 was booming, at least according to what folks on the outside thought. Unfortunately, on the inside, some people knew better. When faults - fraud, really - were discovered in the company's accounting CEO, William E. Morgenstern faced a tough decision - gloss it over or take it to the board. Did they start shredding? Not exactly:
Details here, via an engrossing article at TheLedger.com.
-- MDT
Rent-Way’s board made a decision within days of detecting the fraud — Mr. Morgenstern called the Securities and Exchange Commission and revealed everything. The company would turn over documents typically protected by attorney-client privilege, he said. He then invited the S.E.C. to set up an office at Rent-Way’s headquarters to conduct an on-site investigation.How did it all work out for Rentway?
Details here, via an engrossing article at TheLedger.com.
-- MDT
Labels: Enron, Fraud, pre-trial agreements, Rentway, SEC, Worldcom
Siemens Bribery Probe Expands
The hole is getting deeper and deeper on this one.
-- MDT
-- MDT
Labels: bribery, embezzlement, investigation, Siemens
Former Collins & Aikman CEO Facing Criminal Charges
A former Michigan congressman and Reagan-era public official is facing a criminal indictment relating to his time as CEO of auto supplier Collins & Aikman. David Stockman became CEO of C&A in 2003, after having orchestrated a buyout of the firm in 2001.
Federal investigators are interested in a variety of perhaps overly optimistic statements Stockman made in 2005 about C&A's health in the months before the company declared bankruptcy. Stockman will also likely face an SEC probe into and civil charges arising from his activities during that time. It is thought Stockman may be indicted as soon as January '07.
More here.
-- MDT
Federal investigators are interested in a variety of perhaps overly optimistic statements Stockman made in 2005 about C&A's health in the months before the company declared bankruptcy. Stockman will also likely face an SEC probe into and civil charges arising from his activities during that time. It is thought Stockman may be indicted as soon as January '07.
More here.
-- MDT
Labels: Collins and Aikman, David Stockman, indictment, SEC
Steven Schulman Out at Milberg
He'll be pursing "new opportunities" including defending himself against the criminal indictment he's currently facing relating to kickbacks Milberg aledgedly made over the years to their lead plaintiffs who put in repeat performances. Current Milberg partner David Bershad is also under indictment on the same charges.
-- MDT
12/13/2006
-- MDT
Labels: David Bershad, indictment, kickbacks, Milberg, Milberg Weiss
Skilling Does Not Pass GO, Goes Directly To Jail
Jeff Skilling, the former Enron chief exec, had been anticipating the possibility of a reprieve from jail time while he awaited the outcome of his appeal on fraud charges. It was not to be. The same court that signaled the possibility of bail for Skilling has snatched it away. He may report as soon as today to the Federal pen where, barring reversal on appeal, he'll be serving some or all of a 24 year sentence.
-- MDT
12/12/2006
-- MDT
Labels: appeal, Conviction, Enron, Fraud, jail, Jeff Skilling
Prosecutorial Guidelines, They are a' Changin'
The Department of Justice released new guidelines yesterday regarding the powers and practices allowed for prosecutors pursing corporate investigations. A rollback of prosecutorial power had been called for from a variety of corners and the DOJs action has been expected for a while now. At the heart of the "McNulty Memo," named for Deputy Attorney General, Paul McNulty, are changes in how prosecutors may go about compelling the release of documents from companies. Prosecutors must now receive permission from McNulty himself before asking that a corporation to turn over potentially self incriminating documents.
For a close look at the changes this will bring to courtrooms and corporate boardrooms across our fair, land, you could do worse that to check out Peter Henning and Ellen Podgor's superb White Collar Crime Prof Blog. Mr. Henning is an amigo of The Daily Caveat from the Round Table days and shares your host's affinity for former Louisiana Governor (and current resident of the Oakedale Louisiana Federal Correctional Institution), Edwin Edwards. You may have heard Henning quoted on this subject in a widely run NPR story from yesterday evening. Partner in (white collar) crime, Ellen Podgor's comments on McNulty can be found here.
-- MDT
12/11/2006
For a close look at the changes this will bring to courtrooms and corporate boardrooms across our fair, land, you could do worse that to check out Peter Henning and Ellen Podgor's superb White Collar Crime Prof Blog. Mr. Henning is an amigo of The Daily Caveat from the Round Table days and shares your host's affinity for former Louisiana Governor (and current resident of the Oakedale Louisiana Federal Correctional Institution), Edwin Edwards. You may have heard Henning quoted on this subject in a widely run NPR story from yesterday evening. Partner in (white collar) crime, Ellen Podgor's comments on McNulty can be found here.
-- MDT
Labels: Department of Justice, Louisiana, mcnulty memo, Peter Henning, prosecution guidelines, white collar crime
Skilling Gets Brief Reprieve on Jailtime
He might just make bail while he waits on appeal. The WSJ elaborates.
Also, Tom Kirkendall at the always charming (even when I disagree with him) Houston's Clear Thinkers, takes his usual hard look at the full gamut of Enron-related prosecutions. Well worth a look in case you've lost track of who all got left with the tab when Enron went belly up. Check it out.
-- MDT
Also, Tom Kirkendall at the always charming (even when I disagree with him) Houston's Clear Thinkers, takes his usual hard look at the full gamut of Enron-related prosecutions. Well worth a look in case you've lost track of who all got left with the tab when Enron went belly up. Check it out.
-- MDT
Labels: appeal, bail, corruption, Enron, Houston's Clear Thinkers, Jeff Skilling, prosecution, white collar crime
Borat: 1, Drunken Racist Frat Boys: Zippy
Despite claims that the uproariously funny blockbuster film, Borat, has besmirched their good names two as yet unidentified South Carolina college students (and Chi Psi brethren) have lost their bid for a court order preventing the film from minting any more money at their expense. Details.
-- MDT
-- MDT
Labels: Borat, frat boys, justice, racism, restraining order
Home Depot - 25 Years of Stock Option Backdating?
Turnabout is Fair Play, Public Corruption Investigations Up 30% in the Past Four Years
Lordy...
More than 1,000 public officials of various levels on the pecking order have been convicted in government corruption investigation over the last two years. With ample time (and seemingly endless corruption) left for the current administration in Washington, I think we can accurately predict that quite a few medium to large sized fish are going to be joining the convicted list in '07.
Sarbox for the guv'ment, perhaps?
The Washington Post has the rest of the story.
-- MDT
More than 1,000 public officials of various levels on the pecking order have been convicted in government corruption investigation over the last two years. With ample time (and seemingly endless corruption) left for the current administration in Washington, I think we can accurately predict that quite a few medium to large sized fish are going to be joining the convicted list in '07.
Sarbox for the guv'ment, perhaps?
The Washington Post has the rest of the story.
-- MDT
Labels: Conviction, corruption, FBI, government
Former Cendant Exec Gets House Arrest on Fraud Charges
In addition to the ten year prison sentence and more than $3 billion in fines and restitution former Cendant vice Chair, E. Kirk Shelton has otherwise been facing, he has now been placed under house arrest while he awaits the outcome of his appeals. Shelton was previously convicted on a variety of charges relating to his role in artificially inflating Cendant's revenues by some $500 million. When the fraud was discovered back in 1998, Cendant's value dropped by $14 billion in a single day. Ouch.
More here.
-- MDT
More here.
-- MDT
Labels: Cendant, Conviction, E. Kirk Shelton, Fraud
SEC Probe For Siemens
Siemens, the European manufacturing giant, is still reeling at the revelations of an internal embezzlement and bribery scandal. Policy raids, seized documents and employees behind bars have been the start of this story. Law enforcement and regulatory bodies across the EU are currently digging for the next chapter and it appears that an SEC inquiry may be a part of the story.
-- MDT
-- MDT
Labels: bribery, corruption, investigation, SEC, Siemans
Witness Systems CEO Resigns
Stock option questions to blame. The company has just released the results of investigations into their stock options granting process dating back to February 2000.
More here.
-- MDT
12/10/2006
More here.
-- MDT
Labels: backdating, david gould, stock options, witness systems
The New Blogger Beta 12/08/2006
Repeat After Me...Background Checks are Your Friend
HP Settles With California AG on Spying Episode
Check it:
"Under terms of the settlement with the California attorney general, HP will pay $13,5m to create a "Privacy and Piracy Fund" for law enforcement activities related to privacy and intellectual property rights operated in the state Attorney General's Office. The company will also pay $650 000 in civil penalties and $350 000 to cover expenses of the investigation, California Attorney-General Bill Lockyer announced."
More here.
-- MDT
Labels: HP
Delay of Game
Blogger technical issues yesterday waylayed the usual posting. Family in town today, so look for posts too resume on Monday. Gotta run, Kirby is barking at dad (Sigh).
-- MDT
12/06/2006
-- MDT
Anti-Pretexting Legislation Goes Federal
14 states currently have anti-pretexting legislation on the books. Earlier this week California seemed poised to pass one of the most restrictive such bills in the country, that is until MPAA lobbying stopped their state senate short. The bill the ended up passing was geared primarily towards protecting phone records, but not much else. A federal law is also looming with a big push coming up to get the proposed bill passed prior to the end of the year. Details on the proposed federal anti-pretexting legislation can be found here.
-- MDT
-- MDT
Labels: pretexting
Hard Times for Sonsini Continue on HP Investigation Tactics
Great Law.com article. There is some massive balancing force in the universe that sees Milberg Weiss and Wilson Sonsini (two law firms that have spent more than a fair amount of time on opposing sides of the aisle from one another) both in the legal cross-hairs at the same time.
It is weird the way the world works.
-- MDT
It is weird the way the world works.
-- MDT
Labels: HP, Melvyn Weiss, Milberg Weiss, Patricia Dunn, Wilson Sonsini
Senate Hearing Raises Questions about SEC Preferential Treatment of Morgan Stanley's John Mack
Gary Aguirre finally gets some on-the-record back-up from former colleagues (scorn from others) and SEC official, Robert Hanson faces some tough questions...Details at Bloomberg.
Need a little background? Need a lot?
-- MDT
12/05/2006
Need a little background? Need a lot?
-- MDT
Labels: Gary Aguirre, John Mack, Morgan Stanley, Pequot Capital
13 Firms Named in Short Seller Price Rigging Class Action
Amongst the twelve named: Goldman Sachs, Merrill Lynch & Co., JPMorgan Chase, Lehman Brothers Holdings, Credit Suisse, the Canadian Imperial Bank of Commerce and others. Sounds dicey:
-- MDT
Morgan Stanley, Goldman Sachs Group Inc. and 11 other securities firms have been accused in a lawsuit of conspiring to rig the fees charged to short sellers...Read on at Bloomberg.
...In a class action filed in federal court New York on Dec. 1, two short sellers claimed that the 13 firms conspired to charge excessive fees for certain ``hard-to-borrow'' stocks, in violation of antitrust laws. The defendants locate, borrow and deliver stocks involved in most short sales, the complaint said.
The firms "orchestrated a massive scheme whereby they have combined and conspired to raise, fix, and maintain, at artificially inflated levels, the fees paid by plaintiffs,'' the complaint said...
...Plaintiffs Forza Capital Management LLC of Bend, Oregon, and BHL Capital Partners LP of Westport, Connecticut, who are represented by Milberg Weiss Bershad & Schulman, are seeking unspecified damages...
-- MDT
Labels: Melvyn Weiss, Milberg Weiss, Morgan Stanley
Feds Gain Access to Expert Witness Pay Records in Milberg Trial
Federal prosecutors gained a key victory in what appears to be a new front in their ongoing war against class action giant, Milberg Weiss. The L.A. County district court judge administering the case has ruled that investigators will be provided access to the payment records of John Torkelsen a former expert witness for Milberg.
The Daily Caveat first hipped loyal readers to Mr. Torkelson's significance in this drama back in November '05.
Prosecutors had recently announced that they would be expanding the scope of their investigation into Milberg's practices to include the possibility that clients may have been billed for expert work that was never actually conducted.
More at Law.com.
-- MDT
12/04/2006
The Daily Caveat first hipped loyal readers to Mr. Torkelson's significance in this drama back in November '05.
Prosecutors had recently announced that they would be expanding the scope of their investigation into Milberg's practices to include the possibility that clients may have been billed for expert work that was never actually conducted.
More at Law.com.
-- MDT
Labels: Melvyn Weiss, Milberg Weiss
MPAA Torpedoes California's Anti-Pretexting Legislation
Why, you might ask? Because pretextual techniques are a key arrow in the MPAA's anti-piracy quiver. Or so they claim. California's state legislature did pass a much more narrow bill than the one originally proposed. The compromise bill pertains only to pretexting relating to telephone records.
Wired has details and great embedded links to original sources.
-- MDT
Wired has details and great embedded links to original sources.
-- MDT
Data Mining Blog & Personal Data as a New Form of Pollution
Insightful (if technical) commentary abounds at the Data Mining Blog maintained by Matthew Hurst. Cory Doctorow over at Boing Boing can give you a bit more detail as to why you should. Also..don't miss the link in the above Boing Boing post to Bruce Schneier's comments on personal data as a new form of pollution. Pretty cool. There's a podcast of his lecture if you're into that sort of thing.
-- MDT
12/03/2006
-- MDT
AIG's Maurice Greenberg the Man Behind the Paulson Committee Report?
So says the Huffington Post. Read Jamie Court's column for a little push-back on the Paulson recommendations. Also, the comments that follow are a fun time, as you would expect at Arianna Huffington's online hotspot.
-- MDT
-- MDT
HP Execs Profiting on Pretexting Flap
Oops... Who got caught selling shares while HP was taking a beating as word of Patty Dunn's pretexting initiative hit the papers? Chief Executive, Mark Hurd - that's who. The inevitable shareholder lawsuit has already been filed. Details here.
-- MDT
-- MDT
Labels: HP
Backdating Bite Coming to Canada?
More than 100 U.S. firms are currently squirming under the fixed gaze of regulators intent on examining their executive stock option grants. Canadian firms may soon be facing the same issues, if a recent study is any indication. Much like the U.S. stock option embroglio, the Canadian situation threatens to be broken open not by a Spitzer-esq. regulatory tough-guy, but by a wake-up call from academia:
-- MDT
12/01/2006
Canada has avoided the options-backdating scandal in the United States, but a forthcoming academic study suggests backdating could be prevalent north of the 49th parallel. The study, by economics professors at the University of Manitoba, examined executive stock options granted by 66 of Canada's biggest publicly traded companies from June 2003 to October 2006. It found trading patterns that may be consistent with backdating and also that many stock-option grants aren't being reported as quickly as securities laws require. "While it is impossible to determine unequivocally that companies are engaging in backdating ... the aggregate evidence certainly supports such a story," the study concluded.More here.
-- MDT
"Very Elegant Whining" - The Paulson Committee Releases Market Regulation Findings
To both cheers and jeers from the predictable constituencies... :The Paulson Group" is a 20 some odd member committee convened by Treasury Secretary, Hank Paulson to kvetch on the subject of current market regulation and its effect on competitiveness. Not shockingly, reforms were urged on a variety of fronts.
While changes to SarBox, tort reform and consolidation of overlapping regulatory jurisdictions all show up in the Paulson group's recs, the dramatic drop in IPOs brought in the U.S. versus other markets seems to be the most repeated cause for concern. In 2000 half of all dollars worldwide raised in IPOs were doneso on U.S. exchanges. In 2005, that number was down to 5% (although, frankly many factors are at work in this shift).
The question becomes, what, if any of these suggested deregulatory measures will gain traction. In all 32 separate recommendations were made by the star-studded bipartisan group (but one notably absent any former regulators). However, the suggestions are being put to a very different congress than would have received them had the recent elections turned out differently.
-- MDT
While changes to SarBox, tort reform and consolidation of overlapping regulatory jurisdictions all show up in the Paulson group's recs, the dramatic drop in IPOs brought in the U.S. versus other markets seems to be the most repeated cause for concern. In 2000 half of all dollars worldwide raised in IPOs were doneso on U.S. exchanges. In 2005, that number was down to 5% (although, frankly many factors are at work in this shift).
The question becomes, what, if any of these suggested deregulatory measures will gain traction. In all 32 separate recommendations were made by the star-studded bipartisan group (but one notably absent any former regulators). However, the suggestions are being put to a very different congress than would have received them had the recent elections turned out differently.
-- MDT
