Wall Street

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:

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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?

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* Judge William Pauley ruled that the NSA’s warrantless spying program is legal, noting that — if it had existed — the government could have predicted the 9/11 attacks. Good point, because intelligence agencies were in no position to figure out that there was an attack brewing without a Big Brother initiative. Oh… wait. [Huffington Post]

* On a related note, a cartoon from 1994 that predicted the NSA’s controversial programs. It’s really kind of scary…. [Slate]

* Britain’s clowns are furious that people are dressing up as clowns and trying to scare people. For their sake, let’s make sure they never hear about Pennywise. [Lowering the Bar]

* Professor Dave Hoffman evaluates the case for flat-rate tuition. [Concurring Opinions]

* The Wolf of Wall Street is about a criminal ripping off poor people. Bankers cheered at a recent showing. There is a lesson to be had there about what bankers would do if given an opportunity. [Business Insider]

* “Knockout,” a game where young boys cold-cock unsuspecting victims, is a serious issue. Nah, just kidding, it’s a crypto-racist overreaction. But at least one kid was stupid enough to try it and then tell a cop about it. Seriously. [Gawker]

* 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]

Remember the 80s? Big hair, Dynasty, Huey Lewis was popular for some reason. Well, Judge Jed Rakoff remembers the 80s, and he also remembers the way the federal government used to actually investigate and prosecute people who committed massive financial crimes — Mike Milken, Ivan Boesky, Charles Keating, a bevy of other savings and loans kingpins. Good times.

And Judge Rakoff wants to know what happened to prosecuting financial crimes, specifically the sort of fraud that crippled the economy. So he took to the pages of the New York Review of Books to ponder all the financial prosecutions that could have been. And he has some theories about what happened and how prosecutors could do a better job in the future.

It’s a fascinating look at a bunch of ideas that the government is going to totally ignore…

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Three cheers for “cultural capital.”

* Despite his hatred of 3L classes like “Law and Unicorns,” Justice Scalia believes that the third year of law school is necessary — perhaps a necessary evil, but still necessary. [Memphis Daily News]

* “[T]his excuse — sometimes labeled the ‘too big to jail’ excuse — is disturbing, frankly….” The eminently quotable Judge Rakoff is at it again, this time with harsh words for the DOJ. [New York Times]

* According to the latest survey from Citi Private Bank’s Law Firm Group, managing partners think that 2014 will be better than 2013. This means bonuses will be the same next year. [Am Law Daily]

* Attorneys from Wiley Rein are fighting for $2 million in fees in the wake of their SCOTUS win in the Shelby County Voting Rights Act case. The firm’s quest has been called “absurd.” [National Law Journal]

* “The record is utterly devoid of any evidence of criminal intent or intentional misconduct.” It turns out the attorneys accused of malpractice by the Miccosukee Indians weren’t bad after all. [Daily Business Review]

* Rather than pegging its value at $1 million, a professor from a fourth-tier law school is promoting the “non-economic value” of a law degree. Can “cultural capital” repay your loans? [WSJ Law Blog (sub. req.)]

* “[N]o law school in Canada should be allowed to weed out gay students.” Too bad. Trinity Western University, the law school that bans gay “sexual intimacy,” received preliminary approval. [Globe and Mail]

* Law school specialization and you: follow these three simple steps to help you decide which niche you’ll be unable to find a job in after you graduate. [Law Admissions Lowdown / U.S. News & World Report]

I love how this picture is somehow demeaning to both men and women. Being a stay-at-home spouse does NOT involve filing your nails while someone goes out there with a sledgehammer.

This weekend, the New York Times ran a big, splashy article about house husbands and their wealthy, “Wall Street” wives. The premise is that successful Wall Street women are doing it with the help of stay-at-home spouses… you know, the way that wealthy Wall Street men have been doing it for generations.

It’s an annoying premise. Of course, working a high-intensity job is easier when somebody is taking care of everything else at home. But, as Slate’s Jessica Grose points out, the problem is that anybody is expected to work to the point that they have to outsource their entire domestic lives.

Vivia Chen points out another problem in her article in Time. The New York Times article focuses on very wealthy women and their kept men. But is this really a trend? Are husbands really willing to stay home when their wives make a more “pedestrian” salary — like, say, what a lawyer makes?

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* Stan Stallworth, the Sidley partner accused of sexual assault, has hired a prominent criminal defense attorney to represent him in the case while the firm stands by its man. [Am Law Daily]

* Wall Street regulators are considering approval of a formidable version of the Volcker Rule that would ban banks from proprietary trading. Voting occurs later today. [DealBook / New York Times]

* Skadden Arps has asked a judge to toss an FLSA lawsuit filed against the firm by one of its document reviewers. Aww, silly contract attorney — there’s no way you’re getting overtime pay. [Law360 (sub. req.)]

* Weil Gotshal is still leaking like a sieve. This time, Bruce Colbath, a partner from the firm’s New York office, defected to the Antitrust and Trade Regulation practice group at Sheppard Mullin. [Market Wired]

* Lawyerly Lairs, China Edition: Raymond Li, chair of the Greater China practice at Paul Hastings, just purchased a townhouse for about $95 million — and paid “mostly in cash,” homie. [Wall Street Journal]

* They’re extremely tardy to the party, but if the ABA Section of Legal Education and Admissions to the Bar gets its way, law schools will be subject to random audits of their employment stats. [ABA Journal]

* It’s a tough job that “can really beat you down,” but an organization called Gideon’s Promise just made it a whole lot easier for law students to secure jobs as public defenders in the South. [National Law Journal]

Debrahlee Lorenzana

[S]he got nerve damage. What’s unusual about that? Sometimes they screw up.

Frank Panetta, lawyer for Debrahlee Lorenzana, issuing comment on the buxom beauty’s latest lawsuit against Quest Diagnostics. She’s now claiming that she suffered “serious and severe permanent injuries” after getting her blood drawn.

(You may remember Ms. Lorenzana from her lawsuit against Citigroup, in which she alleged that she was let go for being distractingly attractive.)

* “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]

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