Insider Trading

‘We’re not Case Western Law.’

* Justice Antonin Scalia isn’t quite ready to publicly weigh in on whether computer data is considered a protected “effect” under the Fourth Amendment. “[T]hat may well come up [before the Supreme Court],” he says. Thanks NSA. [Business Insider]

* “[I]t doesn’t take many bad apples in a barrel to cause a stink.” No matter how hard Biglaw firms try to keep their confidential information locked down, someone’s going trade on it. It looks like STB is learning that the hard way. [Wall Street Journal (sub. req.)]

* The day after Michigan’s ban on same-sex marriage was struck down by Judge Bernard Friedman, couples who rushed to marry were met with some serious Sixth Circuit sadness. Way to stay and spoil all of the celebrations, judges. [New York Times]

* “We’re not the Cleveland Browns,” says one of Case Western Law’s interim co-deans. With that kind of a glowing endorsement, we don’t see how this law school could possibly fail. [Crain's Cleveland Business]

* Rutgers Law-Newark has a new low-bono fellowship program “believed to be the first of its kind in the nation.” Some other law schools might have a bone to pick about that statement. [New Jersey Star-Ledger]

Over the years, we’ve covered many Biglaw employees who have been accused or convicted of insider trading. This should come as no surprise, given the confidential and market-moving information that regularly flows through the hallways and computers of leading law firms.

The latest accusations of insider trading involve a lawyer who worked at a white-shoe law firm. This individual stands accused of taking confidential information he was privy to by virtue of his work and passing it along through a middleman to a broker, who then allegedly traded on it. According to the Securities and Exchange Commission, the scheme generated over $5.6 million in illegal profits, with over $168,000 going to the Biglaw tipster.

At which elite law firm did this defendant work, and from which school did he receive his law degree?

double red triangle arrows Continue reading “Biglaw Employee Charged In $5.6 Million Insider Trading Scheme”

* Congrats to Weil Gotshal and Fenwick & West for getting in on Facebook’s $19 billion acquisition of WhatsApp, the biggest Internet deal in a decade. [The Recorder]

* In South Carolina, you can get arrested for crimes that aren’t even things any more. Like “failure to return a VHS tape.” [Lowering the Bar]

* Drunk lawyer at heart of alleged insider trading scheme. [Dealbreaker]

* Did LBJ colossally screw up the Supreme Court? [Concurring Opinions]

* Were you curious about who would be on the Mount Rushmore of Tax Law professors? No? Well, here they are anyway. [TaxProf Blog]

* The so-called “trial penalty” is really a myth and empirical data confirms that defendants who reject plea deals and go to trial actually garner a “trial discount.” Yep, prosecutors aren’t overreaching at all. [PrawfsBlawg]

* President Obama called for patent law reform in the State of the Union address. Now we have some insight into what he’s thinking about. [Patently-O]

* Congratulations to Matthew Skinner, the next executive director of the LGBT Bar Association of Greater New York! [LeGal]

* The Woody Allen-Mia Farrow custody findings were pretty damning. But for legal geeks, the important point is footnote 1, where the opinion shouts out then-clerk, now federal judge Analisa Torres for her role in drafting the opinion. [Huffington Post]

* Um… you shouldn’t do that with a sea anemone. [Air Force Court of Criminal Appeals]

* Judge Stanwood Duval presided over the criminal trial of a BP engineer arising from the BP oil spill. He forgot to mention that he was a plaintiff in a suit against BP arising from the BP oil spill. Oops.[New Orleans Times-Picayune]

* Maybe Harvard needs some new tax lawyers. [Chronicle of Higher Education]

* Apparently, the Brits aren’t too thorough with their background checks. A lawyer got exposed for lying about having two Harvard degrees. It only took bar authorities 9 years to figure it out. [Legal Cheek]

* Elie weighs in on the McGruff the crime dog story from last week. [ATL Redline]

* And part of the problem with the background check may start at the law school stage — the U.K. doesn’t consider criminal convictions for fraud in the U.S. as “relevant” for future practitioners of law. One tipster wonders if Stephen Glass should try his luck outside America? [New York Times]

* UNLV Professor Nancy Rapoport offers some mixed thoughts on the Santa Clara professor’s “Local Rules.” [Nancy Rapoport's Blogspot]

* Mathew Martoma’s conviction probably doesn’t mean all that much. Except to him, of course. For him it means some quality time in federal prison. [Dealbreaker]

Mathew Martoma

This afternoon, here in Manhattan, a jury found former SAC Capital portfolio manager Mathew Martoma guilty of insider trading. The verdict wasn’t a shock, given the strong evidence against Martoma and the fact that another former SAC trader, Michael Steinberg, got convicted in December on weaker evidence.

The trial involved a number of boldface names of the legal profession. The office of U.S. Attorney Preet Bharara (S.D.N.Y.), one of our 2013 Lawyer of the Year nominees, was represented by assistant U.S. attorney Arlo Devlin-Brown, one of the office’s most prominent prosecutors (and a star of the college debate circuit, for those of you who used to do debate). Martoma was defended by a team from Goodwin Procter that included Richard Strassberg, an S.D.N.Y. alumnus, and Roberto Braceras, another former federal prosecutor — and the son-in-law of Judge José Cabranes. The prosecution’s lead witness, Dr. Sidney Gilman, was represented by Bracewell & Giuliani’s Marc L. Mukasey — son of former S.D.N.Y. judge and U.S. Attorney General Michael Mukasey.

And some of our readers might know Mathew Martoma. He was a student at Harvard Law School back in the 90s, before he got expelled for fabricating his transcript while applying for clerkships.

Here are some notable numbers relating to the Mathew Martoma mess:

double red triangle arrows Continue reading “The Mathew Martoma Case, By The Numbers”

It’s Harvard Law School’s world, and the rest of us are just living in it.

1999: ARLO DEVLIN-BROWN writes that you never know where you’ll run into a classmate. He is prosecuting MATHEW MARTOMA (née Ajai Mathew Thomas) on insider trading charges in Lower Manhattan. Devlin-Brown has asked U.S. District Judge Paul Gardephe (unfortunately Penn ’79, Columbia ’82) for permission to talk about Matt’s expulsion from Harvard for doctoring his transcript, so get ready for fireworks! The trial is expected to last several weeks, so for anyone who missed WILLIAM PULLMAN and Lisa Frank’s (Yale ’03, NYU Law ’08, NYU Stern ’08) Christmas Eve nuptials, it would be a great opportunity for a mini-reunion!

That is Bess Levin’s imagined entry for the next edition of Harvard Law School alumni news, offered over at our sister site Dealbreaker. It’s based on a New York Times piece marveling at the many HLS folks involved in this major insider trading trial (which also include Martoma’s lawyer, Richard Strassberg of Goodwin Procter, and Lorin Reisner, chief of the criminal division of the U.S. Attorney’s Office).

A takeaway from the Martoma matter: HLS students are the best! At forgery and fraud, that is.

Years before he allegedly cheated on Wall Street, Mathew Martoma, then known as “Ajai Mathew Thomas,” cheated at Harvard Law School by fabricating his transcript when applying for clerkships. It was a sophisticated effort that fooled multiple jurists. Which D.C. Circuit judges came thisclose to hiring him as a law clerk?

double red triangle arrows Continue reading “Harvard Law Students Are The Best — At Making Up Fake Transcripts”

* Kansas Law School has been fined and censured by the ABA for recruiting violations surrounding Andrew Wiggins. Wait, no, I got that wrong. KU Law started an LL.M. program without asking, which I’m sure they did only because Wiggins is from Canada. [Topeka Capital-Journal]

* The proposed merger between Patton Boggs and Locke Lord has been called off. Fingers crossed that Bendini Lambert is the next target for Locke Lord. [Am Law Daily]

* Mayor Bloomberg swears at his last set of judges. I mean swears “in.” Man, who gets up this early? [NYC.gov]

* President Obama commutes the sentences of eight inmates convicted of crack-cocaine offenses. [New York Times]

* New Mexico is Breaking Gay. [Bloomberg]

* Did EA know Battlefield 4 would kind of suck before they released it? [Techspot]

* So evidently R. Kelly isn’t “trapped” in the closet, so much as he’s hiding there waiting for your daughter to come home. [The Root]

* Here’s your homework for today: everybody has to go find a dispirited Duck Dynasty fan and patiently explain to him or her the difference between a government infringement on free speech and a network momentarily suspending a bigot. You’re not allowed to punch the fans, you can only use words, and if necessary, hand gestures. [Huffington Post]

* An inside look at the jury deliberations in the recent insider trading trial of Michael Steinberg of SAC Capital. [New York Times]

* Law professors testify to Congress that President Obama is abusing his power by circumventing Congress. Is this the Congress that takes 239 days of vacation each year and set a record for being the least productive in history? I wonder why any chief executive would circumvent them… [The Blog of the Legal Times]

* Magic Circle firms raise their rates, with partners billing around $1375.56/hour. Blimey! [The Careerist]

* A law firm paid for a nativity scene in a state capitol building. Sound the litigation alarm! [ABA Journal]

* Supreme Court seems hesitant to help out a guy who lost his frequent flyer miles for constantly complaining to his airline. On the one hand, customers shouldn’t be penalized for voicing their concerns. On the other hand, this guy’s “complaints” included his luggage taking too long to come out on the carousel. Chill the hell out. [Associated Press via Daily Finance]

* A SAC Capital employee carefully weighed the “risk-reward” of complying with the “law.” [Dealbreaker]

* Former Tyco CEO Dennis Kozlowski is getting paroled. Now I feel old because I represented a witness in that trial. [Dealbook / New York Times]

* A middle school principal in Texas is placed on administrative leave for banning students from conversing in Spanish at school. What a puta. [Associated Press via Business Insider]

* The rules to the self-proclaimed greatest law school drinking game of all time. Or a look at what Australian law school guys do instead of study. Video after the jump… [YouTube]

double red triangle arrows Continue reading “Morning Docket: 12.04.13″

Kent W. Easter

* Former U.S. Attorney Neil H. MacBride will be joining Davis Polk as a partner in the firm’s white-collar defense practice. Nice work, DPW — he’s actually kind of cute. Earn back that rep! [DealBook / New York Times]

* Matthew Kluger, most recently of Wilson Sonsini, was disbarred in D.C. following his insider trading conviction. His criminal career apparently began while he was still in law school. Sheesh. [Blog of Legal Times]

* Kent Easter, he of the “I am but a spineless shell of a man” defense, was just on the receiving end of a mistrial. It seems the jury was totally deadlocked. Guess they felt bad for him. [Navelgazing / OC Weekly]

* The Iowa Law Student Bar Association supports the school’s decision to cut out-of-state tuition by about $8,000 because to stand against such a measure would be absolutely ridiculous. Congratulations on not being dumb. [Iowa City Press-Citizen]

* Apple won more than $290 million from Samsung in its patent infringement retrial. Siri, tell me what the fifth-largest jury award in the U.S. was in 2013. OMG, I didn’t say delete all my contacts. [Bloomberg]

* The trial for James Holmes, the shooter in the Aurora, Colorado movie theater massacre, was delayed by a judge until further notice. A hearing has been scheduled to reassess the situation in December. [CNN]

* Myrna S. Raeder, renowned expert on evidence and criminal procedure, RIP. [ABA Journal]

* President Obama won’t “just sit idly by” as his D.C. Circuit nominees are picked off one by one by Senate Republicans. No, instead he’s going to have his White House Counsel give interviews for him. [National Law Journal]

* Today is the 150th anniversary President Abraham Lincoln’s Gettysburg Address. If you’d like, you can watch a live stream of an event celebrating the occasion here at 12 p.m. EST today. [Constitution Accountability Center]

* If you want to learn how to write like the U.S. Solicitor General, you can get the “Bluebook for Supreme practitioners” right here (affiliate link) to see exactly how it’s done. [Supreme Court Brief / National Law Journal (sub. req.).]

* The Second Circuit slapped down a few requests yesterday, the most notable of which being Argentina’s bid for a full rehearing and Raj Rajaratnam’s plea for a review of his conviction. [Bloomberg; Bloomberg]

* You don’t know what you got till it’s gone: Weil Gotshal is welcoming back a former finance partner after a seven-year stint at Norton Rose Fulbright to fill out its emptied Dallas office. [Law 360 (sub. req.)]

* Dewey know when the axe man commeth for those who refused to join the failed firm’s $70 million partner contribution plan? Right now. Will Marcoux is the first to face off against Alan Jacobs. [Am Law Daily]

* Despite all warnings, you want to go to law school so badly that you’re reapplying. Well, we probably can’t help you much, but here are some tips. [Law Admissions Lowdown / U.S. News & World Report]

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