Securities and Exchange Commission

A number of attorneys at the SEC were not getting enough stimulation from their securities work, so they turned to porn. Lots and lots of porn — one attorney ran out of room on his computer and had to start storing his porn on CDs and DVDs in boxes in his office, according to the Inspector General’s report earlier this year.

Who were these attorneys who, for so many years, were more focused on wanking it than spanking the Madoffs? We don’t know. The 33 XXX-site-surfing SEC employees — mostly accountants and attorneys — were identified only by their work titles in the Inspector General report and not by name.

According to the Denver Post, the SEC turned down FOIA requests from both the Washington Times and Colorado attorney Kevin Evans, seeking the names of employees involved in the scandal. From the Denver Post:

[T]he SEC maintains in court records that the request for employee names and discipline is an invasion of privacy.

“Public identification of the Commission staff could conceivably subject them to harassment and annoyance of the conduct of their official duties and in their private lives,” a government legal adviser wrote in a denial of Evans’ FOIA request.

Evans is a former partner at Hogan & Hartson and Schiff Hardin, and is now a name partner at his own firm. And he was not content to have his FOIA turned down. He sued the SEC last month, and will let the courts decide if this is a true invasion of privacy.

His justification: how would your clients feel if you were billing them for “rubbing the redweld” while looking at www.ladyboyjuice.com?

double red triangle arrows Continue reading “Colorado Partner Wants To Expose Porn Lovers at the SEC”

While the economy was in freefall, an attorney at the SEC had a crisis of a different kind: his work computer had run out of room for his porn stash.

Thankfully, this was more easily solved than the mystery of Madoff’s returns. The SEC headquarters senior attorney, who spent up to eight hours a day surfing porn sites at work according to a recent SEC inspector general report, is a problem solver. He started downloading his porn directly to CDs and DVDs that he kept stored in boxes in his office. SEC attorneys know how to get the job done!

He was not the only SEC employee obsessing over porn while the economy was being raped. Bess Levin has a whole collection of anecdotes from the Office of the Inspector General report, over at sister site Dealbreaker.

Can you blame them for turning to sites like “www.ladyboyx.com, www.ladyboyjuice.com, www.trannytit.com, and www.anal-sins.com”? They weren’t having much luck nailing economic criminals after all…

double red triangle arrows Continue reading “Securities Law Not Sexy Enough, So SEC Attorneys Turn To Porn”

The Securities and Exchange Commission filed a civil suit against Goldman Sachs this morning. According to the SEC, Goldman is guilty of taking a “do what I say, not what I do” approach to mortgaged-backed securities.

Well, d’uh. That’s why Goldman isn’t suckling on the federal teat right now.

The SEC claims Goldman sold a financial instrument that they knew was going to fail, while at the same time taking short positions against that instrument.

Goldman denies the charges:

The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.

Am Law Daily reports that Sullivan & Cromwell partner Richard Klapper will be representing Goldman in this matter.

Let’s unpack the SEC’s complaint (pdf). Whether or not the SEC prevails in this civil litigation, their complaint certainly succeeds in making Goldman look very shady — the company’s stock tanked this morning.

double red triangle arrows Continue reading “SEC Accuses Goldman Sachs of Hypocrisy in Civil Suit”

They’re overlawyered. They’re poisoned by lawyers.


Harry Markopolos, on what’s wrong with the SEC.

bank regulation thrift savings loan investment bank commercial bank.jpgWe continue our lateblogging of the Federalist Society’s 2009 National Lawyers Convention. The conversations at the conference are always interesting. As far as we’re concerned, this has to be one of the most painless ways to rack up CLE credits.
Here’s the next panel discussion that we attended:
Regulation of Financial Institutions

  • Hon. Paul S. Atkins, Congressional Oversight Panel and Former U.S. SEC Commissioner
  • Ms. Stephanie R. Breslow, Partner, Schulte, Roth & Zabel LLP
  • Dean Paul G. Mahoney, David and Mary Harrison Distinguished Professor of Law, Arnold H. Leon Professor of Law, University of Virginia School of Law
  • Hon. Annette L. Nazareth, Partner, Davis Polk & Wardwell LLP
  • Moderator: Hon. Edith H. Jones, U.S. Court of Appeals, Fifth Circuit
    A quick and dirty write-up, after the jump.

    double red triangle arrows Continue reading “Regulation of Financial Institutions”

  • scott black child marathon runner.jpgThe New York City marathon happens this Sunday. We know many lawyers who will be running it, and we wish them luck.

    The marathon did not impose a minimum age until 1981 (16, raised to 18 in 1988). Pegged to the upcoming marathon, the New York Times had a fascinating article earlier this week about child marathoners, focusing on Wesley Paul, Scott Black (pictured), and Howie Breinan:

    The adventures of Paul, Black and Breinan offer a glimpse into a forgotten aspect of the running boom of the late 1970s. Preternaturally self-disciplined, they were among about 75 children (ages 8 to 13) who tackled the early years of the New York City Marathon in a time of novelty and naïveté….

    With no conclusive study, physicians still debate risks to children who compete in marathons, like muscular-skeletal injuries, stunted growth, burnout, parental pressures and the ability to handle heat stress.

    Another risk: going on to become a securities lawyer. Two out of the three child marathoners profiled by the Times now practice in that field.

    Scott Black is a senior trial lawyer at the Securities and Exchange Commission in New York (after several years at Wachtell Lipton, where he worked with Lat on a number of cases). Wesley Paul is a partner at Michelman & Robinson, where he practices corporate and securities law.

    We touched base with Black and Paul to ask about possible connections between their running and legal careers. Read more, after the jump.

    double red triangle arrows Continue reading “‘Run, Forrest, Run!’ (And then go get a J.D.)”

    wall street bull backside.jpgWill the mainstream media ever hold law firms accountable for their roles in the global financial crisis? Probably not. Relatively speaking, only a small sector of society understands that Biglaw firms played a significant role making “toxic assets” lucrative and legal. Without attorneys, bankers wouldn’t know their tranches from their enhancements.
    Too few people can get their head around what actually happened to cause the market crisis. But the public — the average American citizen — can wrap its mind around the concept of bonuses. I think it goes something like this:
    Bonuses, BAD. Wall Street, BAD. Pitchforks and Torches, GOOD.
    Can the mainstream media latch onto that?

    double red triangle arrows Continue reading “The Mainstream Media Is Aware That Law Firms Exist, Right?”

    champagne glasses small.jpg
    The current online front page of the NYT weddings section is worth a click. The head blurb leads with “Despite their differences in age . . . ” underneath a picture of a 20-something bride embracing a “groom” who appears to be about nine years old. “Differences in age,” indeed. Somebody alert Morality in Media! (Of course, when you click on the link, you learn that the real groom is 40-something. Still yucky, but not illegal.)
    Our spotlighted weddings this week feature couples who are well-matched not only in age, but in accomplishments. Here they are:

    1. Robyn Maslynsky and Paul Goldschmid
    2. Stacy Humes-Schulz and Matthew Frazier
    3. Courtney Dankworth and Russell Capone Jr.

    Read more about these couples, after the jump.

    double red triangle arrows Continue reading “Legal Eagle Wedding Watch 7.19: Editorial Indiscretion”

    Mark Cuban tongue sticking out.jpgWe previously covered the Securities and Exchange Commission’s lawsuit against Mark Cuban. Today brings some good news on that front for the billionaire businessman. From Mark Cuban’s brother, lawyer / blogger Brian Cuban:

    Chief Judge Sidney Fitzwater said in a 35-page ruling released Friday that the SEC had failed to prove that Cuban, who owns the Dallas Mavericks, “undertook a duty of non-use of information required to establish liability under the misappropriation theory of insider trading.”

    As the SEC has 30 days to amend the complaint, further comment by me would be inappropriate until the deadline has passed.

    The complete ruling is here (PDF). Professor Stephen Bainbridge offers more detailed analysis.
    SEC Dimissed Lawsuit Against Mark Cuban [The Cuban Revolution]
    Mark Cuban Wins a Big Round Against SEC Insider Trading Rap [Professor Bainbridge]
    SEC’s Insider Trading Suit Against Mark Cuban Is Dismissed [WSJ Law Blog]
    SEC v. Cuban [PDF]
    Earlier: Mark Cuban: Meet the SEC

    Morning Docket 1.21.09

    financial crime.jpg

    * Lawyers are winning in the long rivalry between lawyers and bankers. Endless financial fraud cases make lawyers look ethical. There is another fraud charge in Philadelphia against money manager Joseph Forte. [The Philadelphia Inquirer]

    * The SEC is investigating Apple’s disclosures about CEO Steve Jobs’ health, to make sure the company did not mislead investors. [Bloomberg]

    * The point man for Madoff’s investor Frank DiPascali will now be the go-to guy for prosecutors investigating the scheme. [The Wall Street Journal]

    * Former Enron CEO Jeff Skilling asked the 5th U.S. Circuit Court of Apeals to review his 19 convictions. [The Houston Chronicle]

    * A Czech businessman settled a suit filed against him by hedge fund Omega advisors, after he alegedly bribed government officials in Azerbaijan, defrauding investors hundreds of millions. [The New York Times]

    * In the aftermath of India’s Enron–the Satyam scandal, the Indian government will likely rescue Satyam’s workers from losing their jobs. [Time.com]

    * SEC chairman Christopher Cox resigned in the wake of scrutiny of the SEC for failing to investigate allegations in the Madoff scandal. [The Associated Press]

    Page 5 of 71234567