Arthur Cutillo

Maria Shriver

* A former Ropes & Gray attorney caught up in the Galleon Group insider trading scandal, Brien Santarlas, testified yesterday that he was paid thousands of dollars for tips. Then, he was told “to dispose of the phone — break it in half, submerge it in water and put it in a garbage can.” He was also told to “Fart on it, dredge it in panko bread crumbs, and talk mess about its momma.” [Bloomberg]

* A candidate to succeed Dominique Strauss-Kahn as head of the IMF, former Baker & McKenzie chairman Christine Lagarde, may have a legal problem of her own. A less rapey one, but still. [Reuters]

* Maria Shriver has retained prominent divorce attorney Laura Wasser, but has not decided whether to divorce Ahnuld or not. Every decent Arnold Schwarzenegger joke has been done, so here’s Jean-Claude Van Damme dancing. [CBS News]

* An Oregon woman has won her fight to get high and carry a handgun. A three-episode arc on Cops is still being negotiated. [WSJ Law Blog]

* Vivia Chen continues her impeccable trolling with a post on lawyers who were voted “most likely to succeed” in high school. Money quote: “If you’re in law, odds are slim that you came within breathing distance of cheerleaders or star athletes.” [The Careerist]

* The owners of the Mets considered buying fraud insurance for their Madoff money in 2001. Instead, they traded for Mo Vaughn. Bad Idea Jeans. [New York Times]

When I worked in private practice, I once had a case opposite Ropes & Gray. The Ropes lawyers made a highly positive impression on me. They were very talented advocates (and they continue to be talented advocates; note the firm’s recent, high-profile victory in the defense of an in-house lawyer for a drug company).

Of course, many top firms have excellent lawyers. The Ropes attorneys were also… nice. They were polite, and genteel, and not difficult to deal with (in contrast to some of their co-counsel). They met my expectations of what lawyers from an old white-shoe firm should be like. [FN1]

In light of this overall Ropes & Gray “niceness,” it’s a bit surprising to see discrimination claims lodged against the firm. In March, we wrote about a lawsuit filed against Ropes by Patricia Martone, a former partner and noted IP litigatrix. Martone, represented by the high-powered Anne Vladeck, alleged age discrimination, sex discrimination, and retaliation.

Today we bring you news of another discrimination lawsuit brewing against the firm. The potential plaintiff has an impressive pedigree. But do his claims hold water?

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Bill Lerach, looking sex-ay.

* Lawsuit lending, i.e., investing in lawsuits, is a booming business — but are plaintiffs getting screwed (again)? [New York Times]

* The “state secrets” doctrine goes before the Supreme Court tomorrow. [USA Today via How Appealing]

* Elsewhere in SCOTUS news, Justice Breyer gets a shout-out in the title of a new study: “‘People Did Sometimes Stick Things in my Underwear’: The Function of Laughter at the U.S. Supreme Court.” [Washington Post]

* The new year is off to a great start for M&A lawyers. [Am Law Daily]

Arthur Cutillo

* A second ex-Ropes & Gray associate, Arthur Cutillo, pleaded guilty on Friday to charges arising out of the Galleon Group insider trading scandal. (Brien Santarlas pleaded guilty back in December 2009.) [Bloomberg via ABA Journal]

* If Cutillo and Santerlas go to prison, what can they expect? Check out Nathan Koppel’s interesting interview with former high-flying plaintiffs’ lawyer Bill Lerach, which touches on Lerach’s time in the big house (including a story about how he got the prison TV switched back to CNBC). [WSJ Law Blog]

* Steven Harper, the Kirkland & Ellis partner turned blogger, writes: “Are law schools deceiving prospective students into incurring huge debt for degrees that aren’t worth it? Of course they are.” [The Belly of the Beast]

Michael Kimelman Mike Kimelman Michael Kimmelman Arthur J Cutillo Arthur Cutillo Ropes Gray headshot.JPGToday the winners of Lawyer of the Day honors are obvious. Congratulations to Arthur Cutillo, Michael Kimelman, and Jason Goldbfarb, three attorneys who stand accused of involvement in the infamous Galleon Group insider trading scheme.

Both Cutillo and Kimelman have distinguished pedigrees, with ties to two top firms. Cutillo (left), a holder of an M.S. in chemical engineering as well as a J.D. (both from Villanova), was an associate at the white-shoe firm of Ropes & Gray. Kimelman (right), a partner at Incremental Capital LLC, once worked as an associate at super-prestigious Sullivan & Cromwell.

Check out Cutillo’s firm bio and Kimelman’s LinkedIn profile over here.

The third charged lawyer, Jason Goldfarb, apparently worked as a personal injury lawyer in Brooklyn. He allegedly served as a conduit of information between Cutillo and Zvi Goffer — the former Galleon employee apparently referred to as “Octopussy” at the SEC, because “he had his arms in so many insider” trading schemes.

More on our three honorees, after the jump.

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Arthur J Cutillo Arthur Cutillo Ropes Gray headshot.JPGThe news was first reported by CNBC. See Dealbreaker for more details.
We have phone calls and emails in to Ropes & Gray and are waiting to hear back. We will keep you posted on further developments.

If you have more info, please email us. Thanks.

UPDATE (10:00 AM): According to Bloomberg, the FBI has arrested Arthur Cutillo (pictured). He is no longer on the Ropes & Gray website, but you can find his bio via Google Cache. Interestingly enough, he was an IP litigator, not a corporate attorney.

CNBC is now reporting that a Ropes & Gray employee allegedly provided inside information about various “going private” transactions the firm was involved in. Some of these transactions apparently involved companies heavily dependent upon intellectual property, such as technology companies.

UPDATE (10:10 AM): In case the Google Cache entry is removed, we have posted Arthur Cutillo’s bio after the jump. He graduated from Rutgers (undergrad) and Villanova (law), and he worked at Merck before joining Ropes.

UPDATE (10:15 AM): Here is a statement from Ropes & Gray:

We are deeply disappointed to learn about this situation, which suggests an extreme breach of this person’s duty of trust to our clients and to the firm. We cannot comment in detail on an ongoing investigation but we are moving quickly to protect our clients and are cooperating fully with authorities.

UPDATE (12:15 PM): U.S. Attorney Preet Bharara (S.D.N.Y.) is giving a press conference discussing the charges. One of the other individuals charged, Michael Kimelman, once worked as an associate at Sullivan & Cromwell.

UPDATE (4:30 PM): We’ve honored Artie Cutillo, Michael Kimelman, and a third lawyer, Jason Goldfarb, as our Lawyers of the Day.
Art Cutillo’s Ropes bio and Mike Kimelman’s LinkedIn profile, after the jump.

Seven Arrested In Insider Trading Case [Dealbreaker]

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