Having problems viewing or printing this newsletter? Click here.
Blank Rome

What Can Be Done About the Rash of Flagrant DOJ Discovery Violations?

Gregory F. Linsin

In the past two months, four highly experienced federal judges from districts around the country have issued a series of scathing opinions finding that federal prosecutors engaged in repeated, egregious violations of statutory and constitutional discovery obligations. Greg Linsin's article analyzes these disturbing developments.


The Peiser Case A vivid example of discovery violations

Jerry D. Bernstein

Jerry Bernstein discusses an ongoing case that illustrates prosecutorial discovery violations and how the Court has indicated it will deal with the situation.


Attorney-Client Privileged Information and Corporate Counsel

Matthew Lee James T. Strawley

Matthew Lee and Jim Strawley's article examines a key ruling by the U.S. District Court for the Central District of California on attorney-client privileged information obtained by corporate counsel during an internal investigation and subsequently turned over to the government in connection with the prosecution of a corporate executive. To learn about the issues addressed in this decision please click here.


False Claims Act and Qui Tam Cases

Nicholas C. Harbist

Blank Rome partner Nicholas Harbist recently presented at Seton Hall Law School New Jersey’s Health Care Compliance Certification Program. Mr. Harbist’s presentation focused on the Introduction to the False Claims Act and Qui Tam Cases.

 
  • Justice Department Increases Funds to Fight Financial Fraud
  • White-Collar Criminals Often Get Caught Due to Lack of Know-How
  • Justice Department Increasing Corporate Bribery Prosecutions
  • Recessions Known to Cause Increase of White Collar Crime
  • Officials Create Task Force to Prevent Health Care Fraud
  • SEC Brings First Insider Trading Case Over Credit Default Swaps
  • Hardware Maker Claims it May Have Broken U.S. Bribery Law
  • Brokers Charged with Fraud in Sale of Mortgage-Backed Securities
  • Eight Charged in $6.2 Million Stock Price Manipulation Scam
  • Analyst, Madoff Whistleblower Calls for Major Changes at SEC
  • Judge Orders Guilty Ex-Pharmaceutical Executive to Write Book
  • Justice Department Increases Funds to Fight Financial Fraud
    The U.S. Justice Department's proposed $26.7 billion budget for fiscal 2010 included more FBI agents to investigate mortgage fraud and white-collar crime, Attorney General Eric Holder said. In prepared testimony to a Senate appropriations subcommittee, Holder said the 3.8 percent increase in the total budget from the previous year included more money for combating financial fraud and for a number of other areas.
    (Source: Reuters, 2009-05-07) Read the article
    White-Collar Criminals Often Get Caught Due to Lack of Know-How
    White-collar fugitives such as Sam Israel and Marcus Schrenker often fail to escape the law because of what prosecutors and bounty hunters say is a lack of preparation for the rigors of life on the lam. White-collar fugitives often run out of money or lack the mental sturdiness to elude police, said Duane Chapman, star of the television program "Dog the Bounty Hunter."
    (Source: Bloomberg, 2009-06-05) Read the article
    Justice Department Increasing Corporate Bribery Prosecutions
    The Justice Department is increasing its prosecutions of alleged acts of foreign bribery by U.S. corporations, forcing them to take costly steps to defend against scrutiny. The crackdown under the Foreign Corrupt Practices Act, or FCPA -- a post-Watergate law largely dormant for decades -- now extends across five continents and penetrates entire industries, including energy and medical devices.
    (Source: The Wall Street Journal, 2009-05-26) Read the article
    Recessions Known to Cause Increase of White Collar Crime
    There's pretty good evidence that white-collar crime, primarily embezzlement, increases during a recession. A 2009 study on the topic by the Association of Certified Fraud Examiners revealed that more than 55 percent of its members performed more fraud-related investigations in 2008 than in 2007.
    (Source: Denver Business Journal, 2009-05-26) Read the article
    Officials Create Task Force to Prevent Health Care Fraud
    Senior Obama administration officials launched a high-level task force to use technology to help detect and prevent health-care fraud, which robs the nation's coffers of billions of dollars each year. Attorney General Eric H. Holder Jr. and Health and Human Services Secretary Kathleen Sebelius also directed federal investigators and prosecutors to expand special strike forces to Detroit and Houston, where "erratic" billing data suggest high levels of fraud, waste and abuse in Medicare and Medicaid programs.
    (Source: The Washington Post (free reg. req'd), 2009-05-21) Read the article
    SEC Brings First Insider Trading Case Over Credit Default Swaps
    In what the agency describes as its first insider trading case involving credit default swaps, the Securities and Exchange Commission has charged a former hedge fund portfolio manager and a salesman at Deutsche Bank with sharing nonpublic information about VNU bonds that allowed the portfolio manager to reap a quick profit. The S.E.C. said in a press release that Jon-Paul Rorech, of Deutsche Bank, tipped off Renato Negrin, who was at Millennium Partners at the time, about likely changes to a VNU bond offering in 2006 that Deutsche was underwriting.
    (Source: The New York Times (free reg. req'd), 2009-05-05) Read the article
    Hardware Maker Claims it May Have Broken U.S. Bribery Law
    Sun Microsystems Inc, a hardware maker that Oracle Corp is buying for more than $7 billion, may have broken a U.S. law prohibiting companies from bribing foreign officials, Sun said in a regulatory filing. "We have identified potential violations of the Foreign Corrupt Practices Act, the resolution of which could possibly have a material effect on our business," Sun said in a 10-Q filing with the U.S. Securities and Exchange Commission.
    (Source: Reuters, 2009-05-08) Read the article
    Brokers Charged with Fraud in Sale of Mortgage-Backed Securities
    Federal authorities charged 10 current and former stockbrokers -- including seven from Florida -- with concocting a massive fraud in the sale of risky mortgage-backed securities to more than 750 investors. The Securities and Exchange Commission accused the brokers from the now-defunct Brookstreet Securities Corp. with falsely portraying the Collateralized Mortgage Obligations as safe and secure investments for retirees and investors with conservative goals.
    (Source: Miami Herald (free reg. req'd), 2009-05-30) Read the article
    Eight Charged in $6.2 Million Stock Price Manipulation Scam
    The U.S. Securities and Exchange Commission sued eight people in Florida, California and Delaware, claiming they generated more than $6.2 million in illicit profits by manipulating stock prices in four companies.
    (Source: Bloomberg, 2009-05-21) Read the article
    Analyst, Madoff Whistleblower Calls for Major Changes at SEC
    Chartered financial analyst Harry Markopolos spent 10 years unsuccessfully trying to convince the Securities & Exchange Commission to investigate Bernie Madoff. Now that Madoff's $65 billion Ponzi scheme has been revealed as the biggest fraud in U.S. investing history, Markopolos is pushing for dramatic changes at the SEC, which oversees the brokerage and investment industries.
    (Source: BusinessWeek, 2009-06-05) Read the article
    Judge Orders Guilty Ex-Pharmaceutical Executive to Write Book
    A federal judge in Washington, D.C., issued a unique sentencing for former pharmaceutical executive Dr. Andrew G. Bodnar over his involvement in duping federal investigators in a drug-patent dispute: to write a book. In April, Bodnar pleaded guilty to a misdemeanor charge for filing false statements with the federal government in a patent dispute between Bristol-Myers Squibb and a Canadian generic drug maker.
    (Source: Courthouse News Service, 2009-06-10) Read the article
     
    By listening to general counsel, business leaders, and entrepreneurs and anticipating their needs, Blank Rome has provided service to clients for more than 60 years. We have become one of America's fastest-growing law firms by adding leading talent and new practice areas to handle critical matters. Learn why our know-how, depth, and diversity, can enhance your business. At Blank Rome, we see the world through our clients' eyes.

    Complete Profile

     

    For the Defense is a quarterly e-mail service edited by Joseph Poluka and provided by Blank Rome LLP. © 2009, Blank Rome LLP. Notice: The purpose of this newsletter is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. The For the Defense newsletter should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel. Additional information may be found on website www.blankrome.com.

    To opt out of this Blank Rome newsletter, click here or call 215-569-5500, ext. 4685. To subscribe to this Blank Rome newsletter, click here to access our online form. We can be reached at the following U.S. postal address: One Logan Square, Philadelphia PA 19103.


    Any Federal tax advice contained herein is not intended or written to be used, and cannot be used by you or any other person, for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Code. This disclosure is made in accordance with the rules of Treasury Department Circular 230 governing standards of practice before the Internal Revenue Service. Any written statement contained herein relating to any Federal tax transaction or matter may not be used by any person without the express prior written permission in each instance of a partner of this firm to support the promotion or marketing of or to recommend any Federal tax transaction(s) or matter(s) addressed herein.