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Gambling / Gaming

John McCain's Tax Returns: What Happens in Vegas, Stays in Vegas

John McCain Senator John McCain Above the Law blog.jpgIn September 2004, we had the pleasure of shooting craps with Senator John McCain, now the presumptive Republican presidential nominee. Senator McCain was in Las Vegas to attend the Oscar De La Hoya-Bernard Hopkins boxing match. We were in town to, well, do what people do in Vegas -- including, but not limited to, gambling.

We were impressed by Senator McCain's stamina. It was well past midnight, he was on his feet for several hours (no sitting allowed at the craps table), and he was still going strong. We were also impressed by his large stack of chips. He wasn't the luckiest roller; when it was his turn to shoot, he "sevened out" after about three rolls of the dice. But the table was generally hot, so he did well betting on other players.

Senator McCain was accompanied by his lovely and statuesque wife, Cindy McCain. Every now and then, people would come over to greet the McCains. In a testament to his focus, the senator never lost track of what was happening on the table. If he can chat with well-wishers while simultaneously monitoring craps-table action, surely he can handle the economy AND Iraq.

In light of Senator McCain's fondness for gambling, we weren't completely surprised by this issue, raised by Paul Caron over at TaxProf Blog:

I previously blogged the release of John McCain's 2006 and 2007 tax returns. The Daily Kos asks why McCain has not reported any gambling gains on Line 21, or gambling losses on Line 28, Schedule A, of his Form 1040, given widespread press reports that he is a frequent gambler at casinos who wagers thousands of dollars per trip. If the press reports are accurate, it is hard to imagine that McCain would not have won at least $600 on some occasions and received a Form W-G....

We reached out to the McCain campaign for comment. From spokesman Tucker Bounds [FN1]:

John McCain has had little occasion to try his luck at gaming in 2006 and 2007, as he was otherwise occupied during that time -- and had no winning sessions. As a result, Senator McCain had no taxable income when he did.

But don't shed tears for the senator. Considering his wife's vast -- and growing -- fortune, we're sure he can handle some losses at the gaming tables.

As for Senator McCain, we wish him better luck at the craps table in the future. Hopefully he won't end up like yesterday's LOTD, Joseph Levine.

[FN1] As noted by Politico, Tucker Bounds is the younger brother of our law school classmate and co-clerk, newly appointed White House staffer Ryan Bounds (whose recent wedding we covered here).

Update / Correction: The friend who was with us at the craps table that night has a contrary recollection about the presence of Mrs. McCain:

Although Mrs. McCain accompanied John McCain on the Vegas trip (I met her earlier that day in the hotel lobby), she was not at the craps table with him. I remember distinctly that he was there with two women who were younger and much less attractive. (I also believe at least one of them had a feather boa around her neck, something, I am quite confident, Mrs. McCain would never wear.)

Why Hasn't McCain Reported His Gambling Gains and Losses on His Tax Returns? [TaxProf Blog]

Lawyer of the Day: Joseph Levine

Caught stealing.jpgSince L.A. Judge Charles Lee was our Lawyer of 1984, we're giving a different attorney Lawyer of the Day honors. Joseph Levine of New York is helping to give a bad name to both lawyers and gamblers.

He's pleaded guilty to second-degree grand larceny, after stealing more than $400,000 from his clients, including money that was to be used for heart surgery for his client's daughter. That's cold.

From Newsday:

"I think this case underscores the pitfalls of compulsive gambling," said Levine's attorney, Michael Soshnick of Mineola.

A spokesman for District Attorney Kathleen Rice said Levine advised one of his clients to accept a $300,000 settlement in a personal injury lawsuit. He then asked her insurance carrier for the money immediately, saying she needed it to pay for her daughter's heart surgery.

After getting the check, Levine returned to New York, forged the signature of his client and her husband and deposited the check in his own bank account, police said.

By the time the client notified the DA's office, Levine's bank account stood at -$139.44. Having an account with a negative balance after stealing almost half a million dollars? That's just embarrassing.

Disbarred attorney pleads guilty to grand larceny [Newsday]
DA: Lawyer Pocketed $300k from Clients [Nassau County District Attorney's Office]

Lawyer of the Day: Jane Willis

Jane Willis Jane E Willis Ropes Gray Kate Bosworth Above the Law blog.jpgPicking our Lawyer of the Day was easy. Today the winning hand belongs to Ropes & Gray partner Jane Willis. From the Boston Globe:

Jane Willis was always a standout student. Her reputation as a math whiz was well known at Phillips Exeter and Harvard, where she graduated in 1991 with a lofty recommendation from Lawrence Summers.

But no one suspected how Willis was using those skills, and she wasn't about to tell. Even as a partner at a high-powered Boston law firm, she has kept her curious back story to herself.

"Sounds weird to say, but it just never came up," Willis says, sipping a draft beer in a hotel bar not far from her office at One International Place.

She likes beer? Ick. Why not some fine wine or top-shelf liquor? But Jane Willis is not your ordinary Biglaw partner:

She might still be mum if not for 21, the new movie about MIT's celebrated blackjack team. Willis, it turns out, was a member of the card-counting cadre that beat the casinos and, later, inspired the best-selling book Bringing Down the House: The Inside Story of Six MIT Students Who Took Vegas for Millions. In the film, which opens Friday, Kate Bosworth's character is based on Willis.

How cool is that? We like the casting of Bosworth; there's definitely a resemblance (see photos; Willis is on the left).

More after the jump.

Continue reading "Lawyer of the Day: Jane Willis"

Non-Sequiturs: 10.23.07

poker online gambling gaming Above the Law blog.jpg* Remember the Mystery Pimp from our recent column about Cadwalader? Peter Lattman, who works in the same building as CWT, has solved the mystery. Fantastic! [WSJ Law Blog]

* "Despondent Microsoft Has Nervous Breakdown; Jumps Into Elliott Bay To Live With Alien Sea Creatures." [What About Clients?]

* New digs for The American Lawyer. Their landlord is now Larry Silverstein, who was recently featured on the magazine's cover. Did they get a break on the rent for that kind of publicity? [The Real Estate]

* Brilliant Harvard Law professors rush to the defense of... online poker! Charlie Nesson and Alan Dershowitz? Now that's what we call a full house. [Conglomerate]

* "Is Dumbledore gay simply because Rowling says he is?" Discuss. [PrawfsBlawg]

Going to Heller in a Handbasket? (Part 1)

Heller Ehrman LLP Above the Law blog.JPGIt appears that lots of things are going up in smoke out west. From Blogonaut:

Two weeks ago the 700-lawyer San Francisco firm announced 65 staff were laid off. Now Heller has lost two leading and loyal partners to rival firms.

Patricia Gillette, a co-chairwoman of Heller Ehrman’s the labor and employment practice has defected to Orrick, Herrington & Sutcliffe along with another labor partner and four associates, the Recorder reports.

This defection in San Francisco comes at the same time that Jerry Marks, Heller's Los Angeles managing partner and a well-known securities litigator, is jetting for Milbank, Tweed, Hadley & McCloy.

Not good news. A slowdown in work, staff layoffs, and partner defections are the hallmarks of a law firm implosion. They've foreshadowed the demises of several firms over the years, such as Brobeck and Testa Hurwitz.

Remember how the Heller Ehrman summer associates were grumpy over not getting paid at the $160K level? At this rate, they should be grateful to have somewhere to go after graduation.

Speaking of the Heller Ehrman summers, we have a summer associate story not previously posted, after the jump.

Continue reading "Going to Heller in a Handbasket? (Part 1)"

A Quick Update on Vick

Michael Vick middle finger Abovethelaw Above the Law blog.jpgThe plea hearing for the embattled star quarterback took place this morning. One of Michael Vick's lawyers, Billy Martin, spoke to reporters on the courthouse steps. He stated that "this matter is concluded until December 10th, when Judge Hudson will sentence Michael Vick according to the plea agreement." He also announced that Vick will make a statement of his own at 11:30 AM today.

At the hearing, Judge Henry Hudson told Michael Vick something along these lines: "You know you're taking your chances here. I'm not bound by the recommendations [of the parties]."

A correct statement of the law, especially after Booker? Yes. A smart thing for a judge to do at a plea hearing, to prevent the defendant from later claiming he was blindsided? Sure.

But, reading the tea leaves a bit, we'd hazard a guess that Judge Hudson might give Vick significantly more than the 12 or so months that the parties will recommend (per the plea agreement). Stay tuned.

(We'd guess that the parties will recommend a year and a day, which will make Vick eligible for certain "good time" credits applicable only to sentences over a year.)

Michael Vick: His Bark Is Worse Than His Betting

The plea agreement (PDF) for star quarterback Michael Vick has been filed in federal court. In the statement of facts (PDF) accompanying the agreement, Vick admits involvement in the dogfighting conspiracy (including funding it), but declines to admit a number of other allegations. According to ESPN, Vick claims that he "did not place side bets and did not receive proceeds from purses from the fights."

Here's what the agreement provides with respect to sentencing:

Michael Vick plea agreement Above the Law blog.jpg

Assuming zero criminal history, an adjusted offense level of 13 gives you an imprisonment range of 12 to 18 months. Of course, and as noted in the agreement, the sentencing judge is not bound by the guidelines (thanks to Booker).

What's next in procedural terms, from CNN:

Vick, 27, is scheduled to appear in federal court in Richmond, Virginia, on Monday, where he is expected to plead guilty before a judge. The judge in the case will have the final say over the plea agreement.

Presiding over Vick's case is Judge Henry Hudson, a Bush II appointee to the bench and a former U.S. Attorney for the Eastern District of Virginia (under Bush I). He has an impressive resume, but we don't know much about him personally. We welcome your thoughts on Judge Hudson in the comments.

Vick files plea agreement admitting to dogfighting [ESPN.com]
Vick admits dog killing, conspiracy [CNN]

Lawsuit of the Day: Sixth Circuit Horses Around With Literary References

Sally Hemings horse filly Abovethelaw Above the Law blog.jpgNews of an amusing appellate decision, from that leading source of legal news, ESPN:

A federal appeals court ruled Tuesday that a filly can't be named "Sally Hemings" after Thomas Jefferson's most famous slave and reputed lover.

The 6th Circuit Court of Appeals in Cincinnati ruled that the Jockey Club can legally bar horse owner Garrett Redmond from naming his 4-year-old horse after Hemings.

We can understand the Sixth Circuit's reluctance to allow anyone to "ride Sally Hemings." Thomas Jefferson already tried that, and his historical reputation will never be the same.

But the court's decision was grounded in law as well as good taste:

Judge Alice Batchelder, writing for the three-judge panel, said Redmond has other options that may be approved by the Jockey Club, which forbids horse owners from using names of famous or notorious people without special permission.

No "famous or notorious" people? So much for Redmond's fallback option, "Wanda Sykes."

Did being denied this name of choice have an adverse effect on the horse's performance? Quite possibly:

The horse, now known as "Awaiting Justice," ran at Churchill Downs on July 1 and at Ellis Park in Henderson on July 25. She did not finish in the top 3 in either race.

A little more discussion, after the jump.

Continue reading "Lawsuit of the Day: Sixth Circuit Horses Around With Literary References"

Morning Docket: 05.08.07

Queen Elizabeth II QE2 Above the Law blog.jpg* Still excited about last weekend's Kentucky Derby? Here are the rules for betting on the Iowa and NH Derbies. [Slate]

* NBA playoffs as a metaphor for the presidential race. [SI]

* World Bank panel finds Wolfowitz violated rules in getting his girlfriend a job. [MSNBC]

* Prominent U.S. lawyers to dine with Queen of England. [WSJ Law Blog]

* "A series of sometimes bizarre events, including a judge's tumble from a ladder and a case of appendicitis, have delayed" R. Kelly's trial for five years. [CNN]

Morning Docket: 05.04.07

* No do-over for Vonage. [c|net via How Appealing]

* Legislature approves $5 million settlement in Florida boot camp death case. [CNN]

* Katrina wrongful death claims blown away by judge. [Jurist]

* Reno trial lawyer faces his own trial. [Reno Gazette-Journal]

* Fen-Phen plaintiffs have a horse in Saturday's race. [WSJ Law Blog]

Morning Docket: 12.04.06

* You have a right to a jury trial, whether you want it or not. [Atlanta Journal-Constitution via How Appealing]

* Santa's big behind is gonna make kids want to drink beer?. [CNN]

* Now my case is at the Supreme Court, and I know why; because I got high, because I got high, because I got high... [WSJ Law Blog]

* It's sad when otherwise good people get sucked into the seedy underbelly of the Arizona bingo scene. [MSNBC]

* Nice try, Jane, but a little too late to get your job on the Intelligence Committee back. [Jurist]

Morning Docket: 11.14.06

* If a tree falls and there is no one around to see it, who's liable? [Random Local News]

* Griffith v. Griffith is sure to make it into your IP casebook in no time. [MSNBC]

* Who knew Robin of Locksley was as good with partnership law as he was with a bow and arrow. [CNN]

* Sticking with the Dakotas, "District judge grants injunction in Fighting Sioux nickname case." [CBS]