Tag: fraud

Former Lawyer of Martin Shkreli Convicted of Fraud

Sung Hui KimLeave a comment

In case you missed the news over the winter holidays, in late December 2017, Evan Greebel, who was outside counsel to Martin Shkreli’s former pharmaceutical company, Retrophin, was found guilty by a jury in Brooklyn of charges that he conspired to commit wire fraud and securities fraud.  In August 2017, a different jury found Shkreli guilty of defrauding hedge fund investors but cleared Shkreli of conspiring with Greebel to steal from Retrophin.  This conviction offers a stark reminder that lawyers cannot use their legal expertise to facilitate the commission of a crime or fraud.

 

The news story can be found here.

Jury Deliberations Begin in Dewey & LeBoeuf Accounting Fraud Case

Sung Hui KimLeave a comment

Yesterday, on September 16, 2015, in the New York State Supreme Court in Manhattan, the jury began deliberating whether the three former executives of the now defunct law firm of Dewey & Leboeuf conspired to manipulate the finances in an effort to defraud investors and bank lenders.  In a daring move, defense lawyers chose not to call any witnesses and rested their case. For more detailed information about the trial, it is reported that one legal newswire, Law360, has been live blogging the event. Warning: the testimony “has often been dull and focused on arcane accounting treatments.” Latest news of the trial can be found here. Prior posts can be found here and here.

Dewey & LeBoeuf Criminal Trial Has Begun

Sung Hui KimLeave a comment

It is a rare event when the top managers of a major, venerable U.S. law firm are being criminally prosecuted for fraud.  So those of you who plan on teaching Chapter 6, Part II (Duties to Third Parties and to the Law) may want to take advantage of the ongoing trial involving top executives of the law firm of Dewey & Leboeuf, which collapsed in bankruptcy in May 2012.   The trial is expected to last (by some accounts) until Labor Day.

Opening statements began on May 26, 2015 in the New York Supreme Court before Justice Robert M. Stolz. The defendants, former chairman Steven Davis, executive director Stephen DiCarmine, and chief financial officer Joel Sanders were charged with concealing Dewey & LeBoeuf’s failing financial situation from lenders and creditors, including insurers that invested in a debt offering to raise about $150 mililion.

Natasha Lydon from Above the Law is reporting on the trial.  Her recent post about the opening statements can be found here.

For background on the case, The New York Times has a fairly informative article here.