The deadline for Foreign Bank Account Reporting was June 30. The Report of Foreign Bank and Financial Account is IRS TD F 90-22.1 (.pdf). Any United States person who has a financial interest in or signature authority, or other authority over any financial account in a foreign country, if the aggregate value of these accounts … Read more »
Ex-Madoff Finance Chief Frank DiPascali Pleads Guilty
Frank DiPascali, the finance chief at Bernard Madoff’s investment advisory business, pleaded guilty to helping his boss carry out a $65 billion Ponzi scheme. DiPascali pleaded guilty to 10 counts, including conspiracy, fraud and money laundering. DiPascali has been cooperating with prosecutors, explaining how he and others helped Madoff defraud investors by using money from … Read more »
DiPascali to Plead Guilty as Madoff’s Accomplice
Frank DiPascali, the finance chief at Bernard Madoff’s investment advisory business, is being charged with 10 crimes related to his boss’s $65 billion Ponzi scheme. Nobody thinks Madoff was acting alone in his scheme. They already arrested Madoff’s auditor, David G. Friehling. U.S. Attorney Lev Dassin posted the charges today in a one- page filing … Read more »
Placement Agents Fight Bans
Placement agent bans were put in place at the New York State Common Retirement Fund and the New Mexico State Investment Council because of the pay-to-play scandals at those pension funds. Now the SEC has proposed a ban on using placement agents when seeking capital investments from public pension funds. A coalition of placement agents … Read more »
Indemnification for Investment Professionals by Their Funds
A recent case decided some issues relating to the indemnification of private equity and venture capital professionals by their affiliated funds in connection with their service as directors and officers of their portfolio companies. Stockman v. Heartland Industrial Partners, L.P., (July 14, 2009), Delaware Chancery Court. David A. Stockman and J. Michael Stepp were investment … Read more »
FCPA Opinion Procedure Release 09-01
The Department of Justice released its latest Opinion Procedure Release under the FCPA: 09-01 The Requestor designs and manufactures a specific type of medical device. The Requestor’s competitors already operate and sell their products to the government of a certain foreign country and the Requestor wants to enter that market. A senior government official laid … Read more »
Jefferson Case Will be Remembered for Cash in the Freezer
Former Congressman William Jefferson’s corruption trial will always be remembered as the one about the guy with the cash in his freezer. But Jefferson was acquitted of Count 11, violation of the Foreign Corrupt Practices Act. This was the primary crime related to the stash of $100 bills the FBI found between boxes of Boca … Read more »
Jefferson Convicted of Corruption Charges
William Jefferson, the former nine-term congressman from Louisiana, was found guilty of 11 of 16 corruption charges on Wednesday by a federal jury. The Jefferson case was most famous for the discovery of $90,000 of cash stuffed in his freezer. Prosecutors said Jefferson planned to use the cash for a bribe. Jefferson’s lawyers said the … Read more »
Respondeat Superior and Compliance
Back in January, a company was found criminally liable for the action of its employees. (Second Circuit Affirms Ionia Management Case.) Under respondeat superior (Latin for “let the master answer”) a company can be held vicariously liable for crimes committed by employees acting within the scope of their employment. Ionia operates and manages shipping vessels … Read more »
Fired for Foiling a Bank Robbery
Jim Nicholson was working at a Key Bank branch when a man entered the bank and demanded money. Rather than comply with the robber’s demands, Nicholson tossed his bag to the floor, lunged at the suspect and demanded to see a weapon. The man ran, and Nicholson chased him for several blocks before knocking him … Read more »