Congress and the public frequently express concern as to
whether defendants in white collar cases are sufficiently punished. It is
popular to think that defendants in these cases serve a short term at "Club
Fed," a kind of country club prison...
On the same day the SEC issued its long-awaited proposed
rules on advisory votes for executive compensation and "golden parachutes,"
The Conference Board Governance Center announced in its 2010 U.S. Directors'
Compensation and Board Practices...
Below is Part IV of my article comparing certain aspects
of Delaware, Nevada and Wyoming business-related legislation. As I said
earlier, I wrote this in April of 2010, so the information here may have become
outdated. Information contained is this...
In the October 2010 issue of the Harvard Business Review there is a Spotlight article on " The
Transparent Supply Chain ". In this article, author Stephen New discusses
the evolution in Supply Chain from opaqueness to transparency and focuses...
Among the most frequently recurring and arguably most
vexatious D&O insurance coverage issues are the questions of the carrier's
obligation under the policy for defense expenses incurred either in connection
with an informal SEC investigations...
Former SEC Enforcement Director Steve Cutler once told a
meeting of the DC Bar Association that "no matter how bad the underlying
conduct, you can always make things worse." At the time Mr. Cutler was talking
about failing to produce documents...
As the SEC continues to implement the Dodd-Frank Act,
Commissioner Luis Aguilar outlined five key principles to guide the
deliberations and actions of the agency. "An Insider's View of the SEC:
Principles to Guide Reform," available
SEC complaints usually contain great stories about what
you should not to do. A recent case involving PEF Advisors caught my eye. The
SEC claimed that hedge fund managers Paul Mannion, and Andrew Reckles, and
their investment advisory company PEF Advisors...
One of the ways to increase market share is to build a
mousetrap and it increasingly appears that one of the fastest ways to increase
market share is to pilfer a company's plans for a better mousetrap. As reported
in the October 18, 2010 online...
by Steuart H. Thomsen, Phillip E. Stano, Evan J. Taylor
In a substantial victory for deferred annuity issuers,
Judge Claudia Wilken of the U.S. District Court for the Northern District of
California on October 6, 2010, granted Defendant's motion...
We recently wrote about ongoing assessments as a key
component of a best practices anti-corruption and anti-bribery program.
One of our colleagues commented that such a tool is also one with which a
company should begin to craft its compliance program...
On the eve of trial the SEC settled one of its most
significant market crisis cases, SEC v. Mozilo , Case No. CV 09-03994
(C.D. Cal. Filed June 4, 2009). The case is significant because it is one of
the few which pierces to the sub-prime center of...
In a public report that makes for some interesting reading,
UBS on October 14, 2010 released a statement disclosing that though its own
investigation had concluded that "what happened should not have been
allowed to happen," the company will...
One of the requirements consistent throughout the
Principles of Federal
Prosecution of Business Organization (US Sentencing Guidelines) and its
section on corporate compliance programs; the Organization for Economic
Co-operation and Development (OECD...
In this Part III I will focus on the costs of
incorporation and annual fees and taxes to determine which state out of three
is the least expensive. I will take a look at the privacy laws of the three
states, since privacy is a major concern for business...
In this part I am discussing the ability of
Delaware, Nevada and Wyoming courts to handle corporate law cases.
State Court System
Delaware has been praised for its court system.12 Delaware has a separate
Court of Chancery, dating back to 1792...
The First Circuit has overturned a lower court's decision
holding that Genzyme's D&O insurance policy did not provide coverage for
additional amounts paid to claimants who asserted they had not received enough
in a share exchange. Though...
The SEC's Inspector General found that there is no
evidence the filing and settlement of the enforcement action against Goldman
Sachs ( here ) was politically
timed or that there were leaks to the media. The Report , made available
I find looking at fraud cases instructive, seeing common
themes, failures and techniques. Since my company is in real estate, real
estate fraud catches my eye. Recently the SEC brought a case against Rosand Enterprises
and one of its principals, Robert...
Stanford Financial's D&O insurers do not have to
continue to advance the criminal defense attorneys' fees of R. Allen Stanford
and two other former Stanford related individuals, according to an October 13,
2010 ruling by Southern District...
In Miles Away... Worlds Apart , Alan Sakowitz tells the story of
the biggest financial fraud in South Florida history, from his unique
perspective of a whistleblower. Throughout the book Sakowitz compares his
close-knit neighborhood to the Scott Rothstein's...
Overall levels of corporate and securities litigation
remained at elevated levels in the most recent quarter even as securities class
action filing levels remained flat, according to the third quarter 2010 report
of the insurance information firm,...
by Robert J. Pile, Jennifer D. Lambert, and Heather J.
Third-party service providers to financial institutions
have often taken the position that they are not "financial institutions" for
purposes of federal law and thus are typically...
I. Schlumberger and Agent in Yemen
On Friday the Wall Street Journal , (WSJ) reported that the US Department
of Justice (DOJ) was investigating allegations of possible bribery in Yemen by
Schlumberger Ltd., in connect with Schlumberger's 2002...