SEC

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.

* Obama nominates a Bush Republican to head the FBI. James Comey was on all sorts of Bush short lists. Kumbaya. [New York Times]

* A nice summer reminder: this woman didn’t recover damages from Great Adventure water ride injury. Here’s another reminder: Six Flags destroys Disney. [New Jersey Law Journal]

* NASDAQ gets BTCHSLAPD. [National Law Journal]

* Meanwhile, Total Oil is also getting slapped by the SEC. Looks like somebody over there ate their Total. [Breaking Energy]

* The “elitist white boy” approach to law enforcement gets called out. Bobby Rush is now my hero. [Talking Points Memo]

* Darius Kingsley, a former Treasury official, is the new co-general counsel of JPMorgan’s commercial bank. [Corporate Counsel]

* Florida Governor Rick Scott can’t randomly drug test all state workers. I’d be in favor of random drug testing for Rick Scott voters. [Reuters]

Casey Anthony

* “Is there a public interest in unwanted pregnancies … that can often result in abortions?” The judge who ordered that Plan B be made available to all women regardless of age is pissed at the DOJ. [The Caucus / New York Times]

* Mary Jo White, the littlest litigatrix, will “review” the Securities and Exchange Commission’s policy of allowing financial firms to settle civil suits without affirming or denying culpability, but for now, she’s defending it. [Reuters]

* Dewey know what this failed firm is supposed to pay its advisers for work done during the first nine months of its bankruptcy proceedings? We certainly do, and it’s quite the pretty penny. [Am Law Daily]

* In a round of musical chairs that started at Weil Gotshal, Cadwalader just lost the co-chairs of its bankruptcy practice and another bankruptcy partner to O’Melveny. [DealBook / New York Times]

* Another day, another law school comparison website. Take a look at Law Jobs: By the Numbers, which includes a formula from the laughable National Jurist rankings system. [National Law Journal]

* In a move that shocked absolutely no one, attorneys for Colorado movie theater shooting suspect James Holmes announced they will enter a plea of not guilty by reason of insanity for their client. [CNN]

* From the “hindsight is 20/20″ file: the judge who presided over the Casey Anthony trial thinks there was enough evidence to convict the ex-MILF. He also likened Jose Baez to a used car salesman. [AP]

* Check out Logan Beirne’s book (affiliate link). Even when sensationalizing George Washington’s rise from general to president, attention must be paid to the rule of law. [Wall Street Journal (sub. req.)]

* OMG! Get ready to have a lawgasm, because the Supreme Court is going to be releasing same-day audio recordings from oral arguments during next week’s gay marriage cases: Proposition 8 and the Defense of Marriage Act. [National Law Journal]

* “Way to go, Justice.” Justices Ruth Bader Ginsburg and Elena Kagan work out with a personal trainer who’s got a client list that would make Article III Groupie swoon — and he just so happens to be a records manager at D.C.’s federal court. [Washington Post]

* Debevoise & Plimpton’s littlest litigatrix, Mary Jo White, sailed her way through the Senate Banking Committee with a vote of 21-to-1. Her nomination to lead the SEC will now head to the full Senate. [DealBook / New York Times]

* “Our 2012 numbers aren’t as good as we would have liked.” Gee, ya think? From attorney headcount to gross revenue to profits per partner, just about everything was down in 2012 for Fried Frank. [Am Law Daily]

* Eckert Seamans will be merging with Sterns & Weinroth, adding 17 partners and seven associates to its ranks. Someone please come up with the semen joke so I don’t have to. [Philadelphia Business Journal]

* As if Inside the Law School Scam weren’t candid enough, Professor Paul Campos sat down for an interview to discuss how to make an informed decision when considering law school. [U.S. News & World Report]

* Hey, they actually found one instance of voter fraud. By a nun. I can’t wait for the GOP to try to construct an entire argument for restrictions on voter access based on this case. [Talking Points Memo]

* Defense attorneys can go to jail for lying? In Detroit? Mind: blown. [Washington Post]

* The Senate grills would-be SEC chairman Mary Jo White. The hypocrisy of a bunch of Senators in the pocket of Wall Street asking about White’s potential conflict of interest would be stunning if this wasn’t the U.S. Senate. [National Law Journal]

* Former prosecutor and former FBI agent join forces to start a… private equity litigation finance group. I guess their years of investigation showed them where the money is. [Reuters]

* A law professor blames “no child left behind” for the poor quality of students these days. Yes, but what do we blame for the quality of law professors? [Chronicle of Higher Education]

* We’re going to have to do something about these sinkholes. [Daily Mail]

After the jump, a propaganda video purportedly made by North Korea “seems to mistake TTT grads for regular Americans,” according to a tipster….

double red triangle arrows Continue reading “Morning Docket: 03.13.13″

* Mary Jo White isn’t the only Debevoise partner who will face high scrutiny while being vetted for the SEC. Andrew Ceresney may be up for co-chief of enforcement. [DealBook / New York Times]

* The Crowell & Moring ethics complaint alleging the firm suggested Appalachians have family circles instead of family trees was chalked up to an “inbreeding memo mishap.” [Am Law Daily]

* A panel of the Appellate Division, Second Department will hold court at St. John’s School of Law next month. Perhaps the students will be a little less embarrassed happier with the school now. [New York Law Journal]

* Patrick Fitzgerald, ex-U.S. attorney and current Skadden partner, will teach a course in national security law at Chicago Law School. Attend his class, lest his “extraordinary brilliance” go to waste. [National Law Journal]

* Looks like somebody forgot about Dre. The rapper’s headphones company, Beats By Dr. Dre, is now going after people for trying to register anything with “beat” or “beats” as trademarks. [WSJ Law Blog (sub. req.)]

* Ross Ehlinger, a litigator who died while competing in the Alcatraz triathlon, RIP. [San Francisco Chronicle]

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

Continue reading at Dealbreaker….

* Dewey was quick about getting its Chapter 11 plan confirmed, but all of these unfinished business claims are taking a little longer to resolve than previously hoped. But hey, at least Paul Hastings settled. [Am Law Daily]

* Because sometimes profit sharing isn’t enough: Theodore Freedman, a former Kirkland & Ellis partner, pleaded guilty to tax fraud after underreporting his partnership income by more than $2M. [New York Law Journal]

* Here are some tips if you’re trying to get off a law school’s wait list. Apparently it’s wise to wait patiently instead of being a complete gunner from the get go. [Law Admissions Lowdown / U.S. News & World Report]

* Imagine a land filled with millions of little Honey Boo Boos. That’s what the great state of Arkansas is going to look like if the legislature passes the most restrictive abortion law in the country. [WSJ Law Blog (sub. req.)]

* Not only do the Mavericks suck, but Mark Cuban’s luck in court does, too. His bid to toss an insider trading case was denied. He’d probably jump over the bench and have a fit if he could. [DealBook / New York Times]

* Dawn Clark Netsch, beloved Illinois pol and one of the nation’s first female law profs, RIP. [Chicago Tribune]

* A full run-down of the suspension of a 7-year-old for brandishing a danish shaped like a gun. He was loaded for bear… claw. [Lowering the Bar, Part I; LTB, Part II]

* U.S. drones are helping out the French in Mali. Jeez, drones are getting used everywhere from here to Timbuktu. [Volokh Conspiracy]

* Do you need to report to the SEC if your company gets hacked? Probably… if you don’t tell them about possible violations how would they ever know? [IT-Lex]

* Someone wants help finding a WordPress theme for their law firm. Totally Best Magazine, bro. That’s hawt. [Yahoo Answers]

* Just a reminder, Ms. JD’s Fellowship applications are due March 8. [Ms. JD]

* The Supreme Court will be hearing oral arguments today on a challenge to the Voting Rights Act. If for some reason you’re not sure why you should care about this, here’s everything you need to know to sound intelligent at the water cooler. [New York Times]

* If the sequester goes into effect this Friday, Attorney General Eric Holder warns that we’re probably going to see “profound” effects across the entire justice system. America, f**k yeah! Coming again to save the motherf**kin’ day, yeah! [National Law Journal]

* It looks like the tiny and terrifying Mary Jo White is currently on the Congressional pageant trail ahead of her March confirmation hearing for SEC leadership, and now she’s even vowed never to return to Debevoise & Plimpton. [DealBook / New York Times]

* A coup for Cadwalader and a casualty for Cravath: Jim Woolery chose another firm over his former home of 17 years, and it may have something to do with the Biglaw bonus market leader’s “sometimes antiquated” regime. [Am Law Daily]

* “There are many more fish chasing the same business,” but that’s not stopping new white-collar boutiques from trying to compete for business in what some say is an overly crowded market. [New York Law Journal]

* Louis Oberdorfer, district judge of the D.D.C. and former SCOTUS clerk, RIP. [Blog of Legal Times]

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