Business Torts › Criminal Law

Q&A With Carlton Fields' Brian Rosner

Brian Rosner is a shareholder in Carlton Fields' New York office. Q: What is the most challenging case you have worked on and what made it challenging? Originally Published in Law360, New York - April 29, 2013....more

DOJ and SEC Scrutinize Potential Misuse of Rule 10b5-1 Trading Plans by Corporate Directors Affiliated with Investment Advisers

Over the past four years, the U.S. Department of Justice (“DOJ”) and U.S. Securities and Exchange Commission (“SEC”) have focused on insider trading involving private funds as one of their key targets in the fight against...more

Appeals Court Set to Consider Key Sentencing Issue on Profits Derived From Fraud

The U.S. Court of Appeals for the 3rd Circuit is currently considering a sentencing issue of great significance in cases in which a number of individuals work together to bring about a financial fraud. The question posed is...more

Sheriff Joe Costs Maricopa County Another $1.4M in Lawsuits

An Arizona developer has settled a lawsuit against Maricopa Country, Arizona Sheriff Joe Arpaio and former County Attorney Andrew Thomas for $1.4 million. Conley Wolfswinkel had filed suit after his office was publicly...more

Fourth Circuit Court Of Appeals Puts Teeth Into The "In Fact" Exclusions Of A D&O Policy

In Farkas v. Nat'l Union Fire Ins. Co. of Pittsburgh, PA, No. 12-1481, 2013 WL 1459248 (4th Cir. Apr 11, 2013), the Fourth Circuit Court of Appeals affirmed a decision that put teeth into the "in fact" exclusions of a...more

New Laws Increase Criminal Liability For Disclosure Of Trade Secrets: Are You Protected?

Two new criminal laws underscore the value of trade secrets as a critical asset to a corporation. These new laws, the Trade Secrets Clarification Act (TSCA) and the Foreign and Economic Espionage Penalty Enhancement Act...more

What Does Cooperation Buy You?

Cooperation. The word is filled with meaning for enforcement professionals. The U.S. Securities and Exchange Commission and the U.S. Department of Justice profess to weigh it heavily when making charging and sanctioning...more

The Cahill Prosecution In Massachusetts: Vagueness Is Still A Problem After Skilling

Vagueness is a common problem in white-collar criminal cases. In many instances the line between legal and illegal conduct is blurry at best. This means that someone could face prosecution, a damaged reputation, loss of...more

Financial Regulators Compete, JPMorgan Loses

The Federal Bureau of Investigation (FBI); the Federal Deposit Insurance Corporation (FDIC); the Commodity Futures Trading Commission (CFTC); the Securities and Exchange Commission (SEC); and the Office of the Comptroller of...more

Prudential Sues Bank of America Over $2 Billion in RMBS

On March 14, several Prudential entities filed suit in the United States District Court for the District of New Jersey against several Bank of America and Merrill Lynch entities in connection with Prudential’s investments in...more

Restatements Resurrected?: Accounting Fraud By The Numbers

Several months ago, I raised the question of why the large-scale accounting fraud cases of the type that had been so prevalent in the early 2000s were no longer a staple for either federal prosecutors or the SEC. In so doing,...more

Breach Of Fiduciary Duty: Son Of Brooke Astor Convicted For Stealing Millions

In December 2009 Anthony D. Marshall, the 85-year-old son of longtime philanthropist and darling of New York high society Brooke Astor, was sentenced to one to three years in prison for stealing millions from his mother while...more

SEC Ramps Up Its Private Equity Parade

Bruce Karpati, chief of the SEC’s Asset Management Unit, promised us several weeks ago that enforcement actions against private equity firms were about to heat up. He wasn’t kidding. Last Monday, the SEC filed two sets of...more

Former Futures Trader at JP Morgan Cazenove is Sentenced to 4 Years Imprisonment for Insider Dealing

Following a prosecution brought by the FSA, Richard Joseph was found guilty at Southwark Crown Court of six counts of conspiracy to deal as an insider. Joseph received inside information from a print room manager at JP Morgan...more

Inside The Lawyers Studio: Media Coverage On Cases Involving Insider Trading

The Securities and Exchange Commission (SEC) defines illegal insider trading as “…buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material,...more

Orrick's Financial Industry Week in Review - March 18, 2013

In This Issue: *Financial Industry Developments - CFTC Announces the Start of Mandatory Clearing - CFTC Reminds Market Participants of Swap Data Reporting Requirements - Rating Agency Developments...more

Rule 10B5-1 Trading Plans: Considerations in Light of Increased Scrutiny

The aggressive use (or misuse) of Rule 10b5-1 trading plans is likely to become a significant area of focus for regulatory enforcement and securities class action plaintiffs. The floodlights now aimed at such plans are the...more

Defrauding Facebook: How One Man Almost Stole The World’s Largest Social Network

In October 2012 Paul Ceglia of New York was arrested on charges he forged documents in a multibillion-dollar scheme to defraud Facebook and its chief executive Mark Zuckerberg. Mr. Ceglia had brought a much publicized lawsuit...more

Internal Investigation Fees Awarded To Goldman Sachs

On Monday, February 25, Goldman Sachs won its bid to force former director Rajat K. Gupta to pay legal fees it incurred while investigating Gupta’s insider trading activities. In October 2012, Gupta was sentenced to two years...more

Supreme Court in Gabelli: Clock Starts Ticking When Fraud Occurs, Not When It's Discovered

The law requires the SEC to bring enforcement actions seeking penalties against individuals who violate the securities laws within five years. The Supreme Court issued a unanimous ruling today that rejects the SEC’s argument...more

SEC And FBI Try To Ketchup To Heinz Insider Traders

In the latest development in an SEC lawsuit filed Friday, February 15, U.S. District Judge Rakoff extended a freeze on a Swiss Goldman Sachs account linked to possible insider trading in H.J. Heinz Company call options. The...more

Engineers Convicted For Theft Of Trade Secrets

Two engineers were recently convicted under federal law for stealing trade secrets from Goodyear. (United States v. Howley and Roberts, 2013 WL 399345 (Feb. 4, 2013 6th Cir.).) Charles Roberts and Sean Howley worked as...more

Insider Trader Arrested in Hong Kong – First Such Extradition in a Decade

In the past several years, legal commentators have consistently written about the increasing emphasis on cross-border regulatory enforcement, and the global crackdown on insider trading in particular. However, it is rare to...more

Sharon Bell v. Igal Feibush

Opinion -- California Court of Appeal Permits Treble Damages for Failure to Repay Loan

Court of Appeal affirmed trial court's determination that making a loan based on a false promise to repay amounted to theft by false pretense, and Penal Code 496 therefore applied, entitling the victim to recover treble...more

New Jersey's Medical Marijuana Law Impacts Employers

The New Jersey Compassionate Use Medical Marijuana Act raises a slew of issues for employers that have yet to be fully explored and resolved in litigation. New Jersey employers must have an ongoing relationship with an...more