LexisNexis® Legal Newsroom
Making a Bad Day Worse

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 in a Commission investigation. His remarks ...

The Role of Compliance in Criminal Cases

Plan Now or Pay Later . Compliance failures are expensive. Failures result in big fines, expensive investigative costs and expensive legal fees. Plus you end up diverting valuable management resources from managing the business to managing the damage. Executives would much rather be sitting in...

This Week in Securities Litigation (March 25, 2011)

The Galleon insider trading trial continues this week in New York. In another New York court room the Commission struggled to have a partial settlement approved by the court. While the agency secured the necessary approval it was not without a cost: The court reserved the right to reconsider the...

Concerns and Strategies in Parallel Investigations

One of the risks in eggshell civil audits -- where risk of criminal prosecution is material -- is the possibility of parallel investigations. Parallel investigations are simultaneous civil investigations and criminal investigations. These can involve the same agency and cooperating agencies (such as...

Rambo Judge Grants Mercy to Convicted Foreign Account Holder

In United States v. Purpura , 2012 U.S. Dist. LEXIS 28748 (MD PA 2012), Judge Sylvia H. Rambo granted the convicted defendant's motion to withdraw his plea of guilty to two counts of tax perjury, Section 7206(2) related to a false answer to the Schedule B foreign account question. The opinion is...

Ninth Circuit Speaks on FOIA, but Ducks Fugitive Disentitlement

A common parry in a tax criminal investigation or prosecution is to file a FOIA request with the IRS. The IRS / DOJ thrust is to resist. I provide at the end of this blog a general discussion of FOIA and the theories of resistance. In Shannahan v. United States, ___ F.3d ___, 2012 U.S. App. LEXIS...

Plea Bargains Generally and in Tax Cases; Moneyball

In two cases, the Supreme Court has recognized the central role of plea bargaining in the criminal system and held the right to effective assistance of counsel extends to advising the client in plea negotiations. Missouri v. Frye, ___ U.S. ___, 2012 U.S. LEXIS 2321 (2012) (enhanced opinion available...

Waiting to Exhale: Employee Firing for Off-Duty Medical Marijuana Use

How Will the Colorado Supreme Court Decide Coats v. Dish Network? In a case being closely watched nationwide, the Colorado Supreme Court will address for the first time an important issue for employers and employees in the state: whether an employer may terminate an employee for the off-duty use of...

Two Criminal Investment Fund Fraud Actions

Despite massive publicity and numerous cases by enforcement authorities, investment fund fraud actions continue to be a staple of the SEC, CFTC and the DOJ. In case after case investors are convinced to part with their hard earned cash, trusting those who claim to have a safe path to large profits. That...