The thing is that when you run a brokerage company and it goes and loses $1bn of customer money, the CFTC really ought to charge you with “fail[ing] to supervise diligently the activities of [your] officers, employees, and agents,” no? At least? There are various views of Jon Corzine’s role in MF Global’s efforts to misplace a billion dollars – did he intentionally misuse customer funds? was he aggressive but above-board? just confused? – but no one is going around saying “oh, yeah, Corzine was really on the ball there protecting customer money.” You’re just irreducibly not supposed to lose a billion dollars in customer money, and if you do, “failure to supervise diligently” is pretty much the kindest possible description…
- Blogging, Bloomberg, Continuing Legal Education / CLE, DealBreaker, Guns / Firearms, Law Schools, Non-Sequiturs, Paul Caron, Politics
* Yesterday, we shared Paul Caron’s plan to end the sequester by forcing government officials to experience delays due to air traffic control furloughs. Well, Congress voted to end the furloughs. We should have known that once the sequester inconvenienced a member of Congress this would end. [Reuters via Yahoo!]
* Ken Langone does not agree with Richard Farley of Paul Hastings. And tells him so. Loudly. [DealBreaker]
* If you’re looking for CLE credits in Houston, check out this event where you can win a semi-automatic 12-gauge shotgun for your trouble. And it counts for Ethics! [NRA Blog]
* “Izadi suggested she could pay her law school tuition by turning tricks.” Is a pimp really that much worse than Sallie Mae? [Las Vegas Review Journal]
* Getting tossed from a case for “bad behavior”? That’s the Chicago way! [Chicago Tribune]
* An interview with American Lawyer Editor-in-Chief Robin Sparkman about the newly released Am Law 100 law firm rankings, after the jump….
To get a sense of how old and long-drawn-out the SEC’s insider trading lawsuit against Mark Cuban is, consider this: the company in which he allegedly insider traded was Mamma.com. The .com was right there in the name. Future generations — hell, present generations — will indiscriminately add “.com” to the end of words to create an old-timey feel, the way we doeth with “-eth.”1
Actually it happened in 2004, and I don’t even need the “allegedly”: there’s no dispute that Cuban insider traded. Everyone agrees that:
- Mamma.com was planning to sell some stock in a PIPE offering which would, inevitably, drive down its stock price;
- Mamma.com’s CEO called Cuban and told him about the planned PIPE offering in advance, hoping to get Cuban to buy more stock;
- Cuban instead sold the stock he already had, prior to the public announcement of the PIPE deal; and
- Then the PIPE was announced and the stock dropped.
So he had material nonpublic information, and he traded on it, and he avoided losses by doing so. INSIDER TRADING. The only debate is whether he insider traded illegally, which, as I often find myself reminding people, is a separate question. The SEC’s lawsuit2 turns not on the facts above, but on whether Cuban agreed not to trade before learning the inside information. Here the evidence is less clear, but there’s enough evidence that he did for the SEC to survive summary judgment yesterday and take the case to trial. Here is that evidence:3
- 2nd Circuit, Cyberlaw, DealBreaker, Free Speech, Kellogg Huber, Racism, SCOTUS, Sentencing Law, Supreme Court
* If you were thinking of calling your friend from the Philippines a “skank” on Facebook, you may want to reconsider. [Philippine Inquirer]
* If you’re a powerful financial executive, lay off the bath salts. [DealBreaker]
* Judicial throwdown at the Second Circuit! Short version: Judge Raagi thinks Judge Jacobs should care way more about punishing guys sexting underage girls. Judge Jacobs thinks Judge Raagi watches too much Dexter. [Second Circuit / FindLaw]
* Federal District Judge John Lungstrum calls out a couple trial teams for terrible trial work. Biglaw litigators may not be the best trial attorneys? You don’t say. [New York Personal Injury Attorney Blog]
* Kenneth Anderson describes the U.S. government’s longstanding love affair with “imminence” in the context of the Obama drone strike white paper. To borrow from Rev. Lovejoy’s sermon: “Imminence…sweet imminence.” [Lawfare]
* Judges: If you’re going to base a decision on a particular fact… don’t include pictures in the opinion that directly contradict that finding. Check out page six, line two and Appendix 2 [Court of Appeals, State of Oregon]
* SCOTUSBlog and Bloomberg Law have a competition for law students. Beat your peers AND the SCOTUSBlog team and win $5000. [SCOTUSBlog]
* Obama has made more women federal judges than any other president in history. But he still has a long way to go to match Bill Clinton’s record for being judged by women. [Wall Street Journal]
* Let’s agree that neither of the people running for president should be a tax lawyer. [Going Concern]
* This story about law firms involved in a class action suit allows me to quote one of the great Abraham Lincoln lines, as retold by the late Shelby Foote: “There’s too many pigs for the tits.” [Forbes]
* Proof that bankers have a better life. [Dealbreaker]
* Did you know that there is a typo on the Liberty Bell? [Josh Blackman's Blog]
* Louisiana has a problem with deadbeat corporations that owe money to the state. Apparently, businesses run from their debts just as well as students. [Lexis Tax Community]
- Crime, DealBreaker, Insider Trading, Reader Polls, Securities Law, Sentencing Law, Wall Street, White-Collar Crime
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…
A lot of my closest friends are male. It’s probably because we share the same sense of humor about most things. But sometimes broish pranks cross the line from being funny to freakin’ disgusting at warp speed. Guys, here’s a little tip: anything outside of the bedroom that has to do with giving a girl a protein slurpee usually crosses that line.
Earlier this week, we brought you a story about a sushi roll with “special sauce” that was allegedly served up in New York. Now we learn that a California man who laced a lady’s drink with his load has been ordered to pay for it.
Why did this mediocre mixologist decide to shake up his co-worker’s drink with a shot of his DNA? And how much did the court award to his victim?
If you are lawyer who is looking for a career change, you really might want to give blogging a try. You won’t make as much money as you would in a Biglaw job. You probably won’t make as much as you would working for a well-respected small law firm.
But money isn’t everything. Take it from me. Or Lat. Or Staci. For instance, right now I’m sitting in my backyard, my dog is curled up by my feet, and I have a fresh pot of coffee. Once I turn the ringer off on my phone (so I can’t hear my creditors calling), it’s a pretty good life. Beat that with a stick.
The law is a service industry. We serve clients. And if you work in Biglaw, you serve very wealthy clients. Uber-wealthy clients who find your legal fees annoying, but can pay them out of the petty cash lying around the office.
Lawyer don’t make real money in this country. Businessmen do. Hedge fund managers really do.
You want proof? Take a look at this ATM receipt uncovered by our sister-site, Dealbreaker…
* Tipsters, I’ve seen the Milbank / Harvard Law news. I just don’t have a strong opinion about it. Good, bad, indifferent? You tell me. [Harvard Law School; National Law Journal via Truth on the Market]
* Is Ashley Madison (the dating site for adulterers) a scam? [Forbes]
* Ah, the real reason Hosni Mubarak finally stepped down. [Slate]
* These are the kind of epic meltdowns that happen when hedge fund folks tangle with Bess Levin. [Dealbreaker]
* Which law firm claims to embrace diversity while one of its partners — a woman who was once married to a gay man, by the way — goes on TV to bash GOProud (a prominent gay conservative group)? [Pam's House Blend]
* Speaking of law firms and LGBT issues, why is it taking so long for WilmerHale partner Edward DuMont, the first openly gay nominee for a federal appeals court in U.S. history, to get a hearing? [The BLT: The Blog of Legal Times]
* I didn’t know the world had a rape capital, but if we had to pick one this seems right. [ABA Journal]
* You’re not so naive as to think that only guilty plead guilty? [Underdog]