SAC Capital

* 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”

The law firm of Goodwin Procter is in the news these days. Some of the firm’s top trial lawyers are defending Mathew Martoma — formerly of SAC Capital and Harvard Law School, where he famously falsified a transcript — in one of the biggest and most exciting insider-trading cases in history.

(Fun fact: one of the members of Martoma’s trial team, Roberto Braceras, is the son-in-law of Judge José A. Cabranes. So if the Martoma case ever winds up before the Second Circuit, Judge Cabranes may have to recuse.)

Martoma earned millions while at SAC Capital, and some of that money will be making its way into the coffers of Goodwin Procter. And some of that money will then get paid out as associate bonuses, which the firm recently announced….

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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”

If you want to be a partner at one particular firm, it’d behoove you to know this guy…

* Breaking News: “An Indian diplomat has been indicted on federal charges of visa fraud. Prosecutors say Devyani Khobragade has left the U.S.” [CNN]

* The Bancroft firm just added three new partners. It’s apparently “not a prerequisite” to clerk for Chief Justice Roberts to be a partner at the firm, but it sure looks like it is. [The Blog of the Legal Times]

* Pressure is mounting on courts to recognize that Americans have a reasonable expectation of privacy. Do these people not watch Person of Interest? [Ramblings on Appeal]

* In a continuing series on why the “nuclear option” isn’t the panacea liberals thought it was, here are four reasons why Noel Canning is still a huge deal even if the Senate Democrats can force through judicial nominations over filibusters. [Constitutional Accountability Center]

* A fun interview with a lawyer turned professional athletics commissioner. Specifically, the commissioner of Sterling Archer’s favorite sport, lacrosse. [The Legal Blitz]

* Vermont is looking to pass a bill affirming abortion as a right, majorly bucking the trend of the rest of the country over the last year. Sounds about right for the state with a socialist senator. [Jezebel]

* The NFL’s concussion settlement sounded kind of fishy already, but now it looks like the initial prediction is going to be way off. [PR Log]

* Turns out a former SAC Capital Advisors trader embroiled in an insider trading case was expelled from Harvard Law School in 1999 for creating a false transcript. It’s good to know Wall Street is right there for all those cast off by law schools for ethical lapses. [Dealbook / New York Times]

* More coverage of the Insane Clown Posse suit, and more insight from our own Juggalo Law. [Washington Post]

* Chris Brown rejected a plea deal on an assault charge. Any time I think of Chris Brown I think of this Key & Peele bit. And if you don’t know who Key & Peele are, then you’re missing out… [Billboard]

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* 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″

Ted Cruz

* After months of gains, the legal industry lost 900 jobs in October, just as some of the big state bar exam results came out. We imagine the folks who rallied for the 10-months-after-graduation employment statistic are as pleased as punch. [Am Law Daily]

* “How do we find a new inventory of high net worth clients?” The answer for Kelly Drye was really quite simple: it seems that pro athletes are willing to pay just about anything to keep themselves from going bankrupt. [Capital Business / Washington Post]

* “I don’t know why it’s better to use a bigger firm.” When it comes to the latest law firm mega-mergers, some say that it’s not the size of the boat, but the motion of the ocean. [Wall Street Journal (sub. req.)]

* It’s like Groundhog Day for these Biglaw attorneys: Apple and Samsung are preparing for the “patent trial of the century,” part deux, and both MoFo and Quinn Emanuel have enlisted new lineups. [The Recorder]

* SAC Capital’s general counsel is okay, “[a]ll things considered.” His painful appendectomy is nothing compared to the $1.2 billion his hedge fund has to pay the government. [DealBook / New York Times]

* Ted Cruz might be an “AASS,” but he’s done at least one awesome thing in his life. He once drank so much Everclear that he completely ruined a play put on by the Harvard Law drama society. [Boston Globe]

* The Z-list actress who sued IMDb for revealing her age filed an appeal with the Ninth Circuit because hey, some of those judges are pretty old. Maybe they’ll sympathize. [Hollywood, Esq. / Hollywood Reporter]

* “Some discrimination’s okay. It’s only certain kinds that aren’t good.” We’ve got a feeling we know which side the Supreme Court will come out on when it comes to the Mount Holly Gardens case in New Jersey, so fare thee well, Fair Housing Act. [MSNBC]

* Hallelujah! After last month’s miraculous news of this troubled firm finding a savior in Cooley LLP, the Left-Behinders of the Dow Lohnes partnership ranks are counting their blessings as they slowly but surely find new homes elsewhere. [Am Law Daily]

* After a political process that’s lasted for ages, now all that’s needed is the governor’s signature, and then Illinois will become the 15th state to officially have legalized same-sex marriage. Hooray! [New York Times]

* Lawyers for accused Boston Marathon bomber Dzhokhar Tsarnaev are annoyed that access to their client has been limited by jailhouse rules. A judge will slap down their motion next week. [National Law Journal]

* Bring it on: To keep things “simple,” prosecutors have dropped two felony charges against Kent Easter, the lawyer who allegedly planted drugs on a PTA volunteer at his son’s school. [Navelgazing / OC Weekly]

* What does SAC Capital’s $1.2 billion settlement with the government mean for the hedge fund industry? [DealBook / New York Times]

One hopes “black edge” wasn’t on the list. Anyway, today’s indictment against SAC, for wire fraud and securities fraud, is something to behold:

“For example, on or about July 29, 2009, a recently hired SAC PM (the ‘New PM’) sent an instant message to [Steve Cohen] and relayed that, due to some ‘recent research,’ the New PM planned to short Nokia when he started work 10 days later. The New PM apologized for being ‘cryptic’ but noted that the head of SAC compliance ‘was giving me Rules 101 yesterday – so I won’t be saying much[.] [T]oo scary.'”

Possibly the weirdest part here is that new hires got compliance lectures two weeks before they showed up at the firm? But maybe not; the DOJ takes a pretty dim view of SAC’s hiring process generally, and if you believe the DOJ that SAC’s main hiring criterion was “is good at insider trading,” then you could imagine the need for a little pre-start-date warning in email etiquette:

Continue reading over at DealBreaker….

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