Insider Trading

An Above the Law / Dealbreaker Debate: Insider-Trading Sentencing

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Ed. note: This post was written by Matt Levine, the new editor on our sister site, Dealbreaker, and Elie Mystal.

Matt here. You might think that Dealbreaker HQ exists only metaphorically in virtual space, or maybe in the fan fiction you’re hiding in your desk, but in fact Bess and I share a real physical garrett both with our sibling sites Fashionista and Above the Law. Occasionally we even talk to each other. “Talk,” in this context, normally means that Above the Law editor Elie Mystal shouts at us about some outrageous political position. In order to quiet him down a bit, we’ve decided to take it to the internet, thus spawning the first – and maybe last! – Above the Law / Dealbreaker Debate Society.

I have been set the task of defending a proposition like “white-collar criminals should not get anything near the jail time they get.” (We are pretty casual with our resolutions here at the Breaking Media Debate Society.)

Fortunately I believe that, so here goes…

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Morning Docket: 09.13.11

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* Mississippi’s “personhood” ballot measure could ban not only abortion, but birth control, too. This is supposed to “protect women.” Protect women from what, their right to choose? [Huffington Post]

* This defense attorney has seen plenty of big cases before, but this may be his biggest one yet. Paul Bergrin has been given the green light to represent himself in his own racketeering case. [The Record]

* More doctors are facing criminal charges than ever before. Here’s an idea: stop helping cultural icons (yes, this includes Anna Nicole) OD, and we’ll stop prosecuting you. [Thomson Reuters News & Insight]

* Raj Rajaratnam still has no idea why he’s been convicted of insider trading, but he’ll have plenty of time to ponder the law if he gets the maximum sentence later this month. [Bloomberg]

* “One of the plaintiffs, Kyle Rooker, 14, has not declared his sexual orientation but . . . likes to wear glittery scarves and belt out Lady Gaga songs.” Most fabulous plaintiff ever? [New York Times]

* Why the hell does Baker & McKenzie think that its associates in Japan need spiritual guidance? Everyone knows that lawyers have no souls. [Careerist]

Quote of the Day: Sounds Like Someone Needs A Little Vacation

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This is the worst piece of whoring journalism I have read in a long time. How long are you going to suck [U.S. Attorney Preet Bharara]’s teat? All to hurt a decent, honest witness, [whom assistant U.S. attorney Reed] Brodsky could not lay a glove on. It did not work. The jury was not impressed by the worst cross examination ever delivered. So in the style of Preet, try to smear him by working the sycophants in the back of the Courtroom. He learned from Schumer in the Senate… Preet is scared sh[**]less he is going to lose this case so he feeds his whores at the WSJ. What a disgrace for an otherwise great paper.

– John Dowd, partner at Akin Gump and defense lawyer to Raj Rajaratnam, in an irate email to Wall Street Journal reporter Chad Bray.

Quote of the Day: Good Question

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We all wanted to give Raj the benefit of the doubt. I wanted to believe he was an honest man. How could someone so smart and rich already be involved in something so horrendous?

– Leila Gonzalez Gorman, a 44-year-old teacher from Westchester County, who served on the jury that found Raj Rajaratnam guilty of insider trading and conspiracy.

(According to the Wall Street Journal, Rajaratnam “is estimated to have paid as much as $40 million for his defense… about two-thirds of the amount prosecutors said [his Galleon Group hedge fund] made from the insider trading addressed in the charges.”)

Breaking: Raj Rajaratnam Found Guilty

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Raj Rajaratnam

Raj Rajaratnam, the billionaire leader of the Galleon Group, has been found guilty.

The jury returned a verdict of guilty on all 14 counts Rajaratnam was facing — nine counts of insider trading and five of conspiracy. Rajaratnam could get a sentence of up to 19 and a half years under the federal sentencing guidelines, according to prosecutors.

Rajaratnam’s defense lawyer, John Dowd of Akin Gump, is a renowned advocate — but he’s not a miracle worker. Raj was just too big a target.

Check out our sister site Dealbreaker for continuing coverage.

Raj Rajaratnam Found Guilty [Dealbreaker]
Galleon’s Rajaratnam Found Guilty [Dealbook]

Back to Square One for the Raj Rajaratnam Jury

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After seven days of deliberations, one juror in the insider trading trial of Raj Rajaratnam has been dismissed, for unspecified medical reasons. An alternate has been seated, but this means the jury has to begin its deliberations anew. The original jurors must be thrilled.

Let’s hope that the dismissed juror was a holdout (either way). The suspense is killing us!

Readers: Any predictions on how this will turn out? Will celebrated criminal defense lawyer John Dowd — who successfully represented the fabulous Monica Goodling, among others — pull this off? Or will the prosecutors of the legendary S.D.N.Y. get their man?

Did Raj Rajaratnam Rub His Athlete’s Foot All Over A Just Dismissed Juror? [Dealbreaker]
Rajaratnam Trial, Take 2 [WSJ Law Blog]

Quote of the Day: John Dowd, Mr. Congeniality

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I hate you, I’m not telling you a thing.

– John Dowd, leading criminal defense attorney and Akin Gump partner, responding (or not responding) to reporters’ inquiries about the whereabouts of his client, Raj Rajaratnam. The jury in Rajaratnam’s insider trading trial is still deliberating.

Morning Docket: 04.22.11

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Harvard Law School

* Attorney Jason Goldfarb pleaded guilty to securities fraud and conspiracy yesterday in a case that originated with the Rajabba investigation. Here’s his firm website photo. [WSJ Law Blog]

* Harvard Law is being investigated for violating Title IX. As someone who did not attend Harvard, I assume IX rhymes with sticks. Which brings me no closer to understanding exactly what was violated here. [Harvard Law Record]

* The Bonds trial ended just in time for us to get super-psyched about the Roger “Frosted Tips” Clemens perjury trial. Let’s start boning up on it! [Reuters]

* Mexico is considering filing a lawsuit against U.S. gun manufacturers. Poor Mexico, so far from God and so close to Remington. [CBS News]

Frank and Jamie McCourt, in happier days.

* Here’s a thorough breakdown of the McCourt mess, including details on the ongoing Bingham divorce debacle. [Am Law Daily]

* So there’s a Canadian lawyer who looks like Kate Middleton? Yeah, well my buddies say I look like Hedo Turkoglu. #humblebrag [Vancouver Sun via ABA Journal]

* Fox News wins the headline contest for Obama’s new gasoline price task force. [Fox News]

* It’s Friday. Let’s consider the better bonobos of our nature, guys. [Times Higher Education]

Morning Docket: 04.13.11

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Raj Rajaratnam

* Raj Rajaratnam’s got a cute insider trading friend named Octopussy. Maybe he’s been doing some other insider trading, if you know what I mean. [Bloomberg]

* Florida redefines “beating it.” It may be time to reconsider things if you’re paying $2.99 to watch a hate crime with your pants off. Come on, at least look into some free porn. [Washington Post]

* Speaking of beating it, here’s a memo to file for John Branca from Katherine Jackson: she doesn’t wanna see your face, you better disappear. [Newark Star-Ledger]

* Listen, Frank, Bingham might be trying to “defend conduct that is indefensible,” but you were thinking about trading Chad Billingsley. Give me a break. [NBC Sports]

* Google v. Government. The DOJ isn’t buying what Google’s selling because Microsoft is a little bit less evil, and a little bit more FISMA compliant. [Los Angeles Times]

* Nothing says corporate equality for women lawyers like a picture of a woman in a fugly suit trapped inside of a dog cage. [The Careerist]

Morning Docket: 04.12.11

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Matt Kluger

* Baker & McKenzie is being sued for $600 million. First they were the inspiration for Philadelphia. Then they gave me a cold offer. Now this? Horrific mistakes, all. [Sports Money / Forbes]

* Meanwhile, Bingham McCutchen is preemptively suing Frank McCourt for letting them screw him over so badly. [Los Angeles Times]

* The middleman in the Matthew Kluger brouhaha, Kenneth Robinson, has pleaded guilty to securities fraud charges. No word yet on whether he is a gay dad. [Bloomberg]

* The Ninth Circuit ruled that the most controversial parts of the Arizona immigration law will remain blocked. [Washington Post]

* A man was fired from his job as a part-time urine monitor because he was born a woman. He’s suing (with help from Gibson Dunn), but has already found new employment. As a package handler. [New York Times]

* Speaking of packages, this employment discrimination lawsuit filed against a Dallas law firm is struggling with penis ID. [ABA Journal]

* NFL owners and players have been ordered into mediation by a federal judge. Who gives a sh*t? It’s a great band, it’s a bad band. It’s like pizza, baby! [ESPN]

Matt Kluger, Ex-Biglaw Associate Charged With Insider Trading, Is A Gay Dad — and Once Sued Fried Frank Over It

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Matthew Kluger aka Big Gay Matt

“Aww, Matt, why do you have to go around giving us a bad name?”

Ever since Matthew Kluger was charged in a massive insider trading case, involving an alleged conspiracy that spanned 17 years and generated more than $32 million in profit, the foregoing question could be asked by many groups: Cornell grads, NYU law grads, Cravath lawyers, Skadden lawyers, and Wilson Sonsini lawyers.

Tonight we can add more groups to the list: Fried Frank lawyers, and gays — specifically, gay dads.

As reported by the Wall Street Journal earlier tonight, Matt Kluger worked at yet another major law firm: Fried Frank. After he was fired by the firm in 2002, he sued, claiming that partners there discriminated against him because he’s gay — and a father of three, with parenting responsibilities.

Just when you thought this case couldn’t get any weirder, it just did. Matthew Kluger is gay. And a dad. With three kids. Thanks for sending America such a positive image of LGBT parents, Matt!

Let’s take a closer look at Kluger’s suit against Fried Frank — and additional details about Matt Kluger’s complicated personal life, gleaned from ATL tipsters….

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Morning Docket: 04.07.11

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Jeff Skilling

* Former Enron CEO Jeffrey Skilling’s appeal was denied by the Fifth Circuit. While he remains the smartest guy in the room, the room consists of him and a half-wit cellmate whose only discernible talent is making Prune-o. [WSJ Law Blog]

* Bruce Fein, an attorney who worked on Clinton’s impeachment and called for Bush’s impeachment as well, has drafted articles of impeachment for Barack Obama. His high crime and misdemeanor? Time theft. [Politico]

* An Ohio man has been charged with a misdemeanor for barking at a police dog. When asked why he was barking at the female dog, the man calmly replied, “Bitch owes me money.” [CBS News]

Raj Rajaratnam

* The government rested its case in the Raj Rajaratnam trial yesterday. Of additional note is the fact that Rajabba sits ten feet behind his defense table, partially obstructed from the jury box. You can’t completely block Rajabba from view. You can only wish to contain him. [New York Times]

* The government has warned attorneys for former Madoff employees not to use money that might be associated with Madoff’s Ponzi scheme. That includes, for their own health, any ass pennies. [ABA Journal]

* The Fourth Circuit rules in favor of a pundit-professor, in a case about the free speech rights of faculty members at public universities. [Chronicle of Higher Education]

* Charlie Sheen is trying to trademark his catchphrases now. He’s overexposed like a frostbitten penis — is there anything funny left to say about him at this point? (We might try; check in later.) [Forbes]