Bernard Madoff

Yesterday, Judge Laura Taylor Swain issued a curious evidentiary decision. In the fraud trial of several aides to Bernie Madoff, the judge ruled that prosecutors will have to Photoshop out a decoration from pictures of Madoff’s office. Lawyers for Daniel Bonventre argued that photos of the decoration, a four-foot statue of a screw, would be unduly prejudicial.

A Ponzi scheme operator flaunting a statue of a giant screw sounds a lot more probative than prejudicial, actually.

In any event, the art is not coming into evidence and is coming out of any pictures of the office. There may not have been a good reason to introduce the piece into evidence, but introducing Photoshop to the legal process creates a whole new wrinkle in the fabric of the “reality” put in front of juries….

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Amanda Bynes

* Dewey know which Biglaw firms and ex-partners were sued by the failed firm’s bankruptcy estate? Sadly, they must all be asking, “Howrey going to survive now that Allan Diamond is on the case?” [Am Law Daily]

* You’d probably love to work as an associate on a 9-5 schedule with billable requirements so low you’d get canned anywhere else. There’s just one catch: You’d have a “proportionately lower salary.” [Daily Report]

* “Law professors and law deans are paid too much,” so the ABA is reducing tenure requirements for law school accreditation, which will make it easier for them to be laid off. [Wall Street Journal (sub. req.)]

* The ABA also decided to cut law schools some slack in terms of graduates’ employment data, and it’s likely due to the U.S. News rankings reckoning. Say hello to the 10-months-after graduation jobs statistic. [National Law Journal]

* Following the Windsor ruling, the Social Security Administration is paying claims for married gay couples living in states where same-sex marriage is recognized. As for the rest, better luck next time. [BuzzFeed]

* Would-be senator Cory Booker has taken annual payouts from his former firm, Trenk DiPasquale, since he left. You may remember that firm’s name from the C&D letter seen around the world. [New York Post]

* Author John Grisham was so pissed his books were banned at Guantánamo Bay that he took up the cause of prisoners wrongfully accused, detained for years, and released without apology. [New York Times]

* Almost as if to add insult to injury, Bernie Madoff was allegedly involved in a love triangle with one of his employees who’s about to go to trial. Apparently having dirty money is a desirable trait in a man. [Reuters]

* Amanda Bynes is still in the psych ward on a 5150, and her mother was granted a temporary conservatorship over her cray cray kid’s financial affairs. Way to follow in Britney Spears’s footsteps. [CNN]

Bernie Madoff

The SEC needs more resources to protect investors. It’s grossly undercapitalized and it doesn’t have money to hire the right people. Basically it’s a training ground, by the time people are qualified they leave and work for private firms.

They didn’t catch me because the whistleblower, Harry Markopolos, was leading them down the wrong alley. He was an idiot.

– Infamous Ponzi schemer Bernie Madoff, offering his thoughts on why the Securities and Exchange Commission is unable to effectively police financial markets, during a two-hour long interview with the WSJ’s MarketWatch.


Peter Madoff (via Getty Images)

You can call notorious Ponzi schemer Bernard Madoff many things, but thankfully you can’t call him a lawyer. Although he has gotten to know the law quite well over the years, thanks to his journey through the legal system, Bernie Madoff has no formal legal training law degree.

[UPDATE (6:40 p.m.): As noted in the comments, Madoff briefly attended Brooklyn Law School.]

But Bernie Madoff’s brother, Peter Madoff, is an attorney. Peter graduated from Fordham Law School in 1970 and is a member in good standing of the New York bar, next scheduled to register in October 2014.

Query why Peter Madoff hasn’t been disbarred. In June 2012, he pleaded guilty to numerous federal charges related to his service as “chief compliance officer” of Madoff Securities. In December 2012, he received a sentence of ten years in prison.

Now that Peter Madoff’s in the Big House — FCI Estill, according to the handy BOP Inmate Locator — let’s have a look at the big house he leaves behind. The federal government is trying to sell it for a sizable sum, almost $4.5 million….

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Jodi Arias

* A bipartisan immigration reform bill made its way through the Senate Judiciary Committee and will head to the Senate floor. Of course, the amendments in support of gay marriage didn’t make it in, but that may be moot soon anyway. [CNN]

* IRS official Lois Lerner may not be very “good at math,” but at least she seems to know the basic principles of constitutional law. She’ll invoke her Fifth Amendment rights before the House Oversight Committee today. [Politico]

* The D.C. Circuit ruled that the top secret Osama bin Laden death photos will remain top secret, but the internet’s desperate cries of “pics or it didn’t happen” will live on in our hearts. [Thomson Reuters News & Insight]

* Attention naysayers: it may be time to face the music. According to the latest Altman Weil survey, most law firm leaders think all of these fun recession-driven changes are here to stay. [Am Law Daily]

* Twenty-two law firms are banding together to fight against fraudulent financial products on a worldwide scale. It’s too bad this legal alliance didn’t exist before the Bernie Madoff scandal. [New York Times]

* It looks like New Jersey may soon be hopping aboard the “pro bono work before bar admission” train. You better hope you get your clinic placements in order, people. [New Jersey Law Journal (sub. req.)]

* The results for the February 2013 bar exam in California are out, and they’re frightening. It’s time to try that acting thing again, because only 41 percent of all test takers passed the exam. [The Recorder]

* Jodi Arias is now begging jurors to allow her to live out the rest of her days in prison. She wants to contribute to society by painting, recycling, and… not slashing additional throats. Lovely. [Fox News]

Judge Jed Rakoff

The trustee… having for more than three years issued empty threats to seek a halt to the attorney general’s suit, has lost his right to complain. Even on the merits, moreover, his bluster proves to be without substance.

– Judge Jed Rakoff (S.D.N.Y.), issuing a harsh benchslap to Irving Picard, the trustee involved in the Bernie Madoff case, for trying to block a settlement he wasn’t involved in between J. Ezra Merkin and New York Attorney General Eric Schneiderman.

* She loves me, she loves me not: media darling Sonia Sotomayor used to be in favor of the use of cameras during Supreme Court arguments, but she’s done a complete about-face on the issue, just like Justice Elena Kagan before her. [National Law Journal]

* Everyone and their mother knows what Antonin Scalia thinks of the State of the Union address, but let’s find out what my colleague Elie Mystal thinks about the good justice’s antics — namely, Scalia’s non-attendance for the past sixteen years. [HuffPost Live]

* American Airlines and US Airways will be merging to create the largest (and most awful) airline in the country. Perhaps the DOJ’s antitrust division can save us from this parade of horribles. [DealBook / New York Times]

* It looks like Team Togut is going to have a crappy Valentine’s Day. They thought that their partner problems were all wrapped up, but according to these filings, it seems that they’ve only just begun. [Am Law Daily]

* If Irving Picard, the trustee in charge of the Bernie Madoff bankruptcy case, is able to get his way, money will soon be raining upon the victims of the massive Ponzi scheme at warp speed. [WSJ Law Blog (sub. req.)]

* This probably isn’t just a “distraction” or “silly sideshow” anymore, because Apple now says it will be fighting Greenlight’s attempt to block the tech company from restricting its issuance of preferred stock. [Bloomberg]

* Instragram has asked a federal court to toss a lawsuit over changes to the photo-sharing app’s terms of service because it contests that users still own the rights to all of their fugly Walden-filtered pictures. [Reuters]

* Remember Kenneth Kratz, the former Wisconsin prosecutor who referred to himself as “the prize”? He’s settled his sexting suit with Stephanie Van Groll, also known as the “hot nymph.” [Twin Cities Pioneer Press]

* Go to grad school at Lehigh for free: check. Sue for $1.3M over your C+: check. Get chastised by a judge over your ridiculous lawsuit: check. Whatever, we still beat Duke, and that’s really all that matters. [Morning Call]

Today Allen Stanford, the former knight turned convicted Ponzi schemer, learned his fate. He was just sentenced by Judge David Hittner (S.D. Tex.).

Did Stanford get a bigger sentence than Bernie Madoff? The prosecution sought a longer sentence — 230 years for Stanford, compared to the 150 years received by Madoff.

Find out the Stanford sentence, and comment, over at our sister site Dealbreaker.

Steven Simkin: now with neckwear.

Remember Steven Simkin, the prominent Paul Weiss partner who sued his ex-wife for a better divorce deal? Simkin argued that even though he negotiated for and obtained the couple’s investment account with one Bernard Madoff as part of their 2006 separation agreement, his former wife should now pay him more money — since it was subsequently revealed, years later, that Madoff was running a huge Ponzi scheme.

As you may recall, I was not terribly sympathetic to Simkin. In my view, an expert negotiator like Simkin — the head of PW’s real estate practice, who was also represented by separate counsel in the divorce — should be required to live with the bargain he struck. In negotiating for and taking on the Madoff account, he also took on the risks associated with that investment.

An intermediate appeals court sided with Simkin. But now New York’s highest court, the Court of Appeals, has spoken….

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What you do in mediation is recite the realities. You don’t have to be brilliant. It’s called common sense.

Mario M. Cuomo, the former New York governor who spoke to the New York Times about mediating the lawsuit brought against the New York Mets by the trustee for the victims of Bernie Madoff. Today, the parties agreed to settle for $162 million.

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