On July 23, 2014, the U.S. Securities and Exchange Commission (SEC) voted 3–2 to significantly amend the regulatory framework of money market mutual funds (MMFs), particularly Rule 2a-7 under the Investment Company Act of 1940, as amended (the 1940 Act).1 These changes come four years after the SEC last adopted several amendments to Rule 2a-7 and follow a lengthy debate surrounding MMF reform among regulators and industry participants. The amendments and related regulations will drastically alter the MMF industry and force MMFs and their boards of directors and advisers to make substantial changes to their product offerings, operations, and compliance processes.
* Apparently, heckling Carmelo Anthony can cost you your job. [Dealbreaker]
* There’s nothing the Supreme Court can do to stop cops who want to take a long time to release you from a stop, even if the Court wants to. [Simple Justice]
* I think we should just ask John Roberts to tell every state precisely how they are allowed to discriminate against black voters and be done with it. Just tell us the rules so we can start the GOTV campaigns. [Election Law Blog]
* Former Manhattan Assemblywoman Gabriela Rosa gets a year in jail for purchasing a sham marriage to gain citizenship. The “for citizenship” part is what got her, because lots of politicians are in sham marriages. [Journal News]
* Judge Frank Easterbrook thinks that the new proposed length limit for appellate briefs is too short. Verbose litigators everywhere, rejoice. [How Appealing]
* I thought “spoofing” was bad for the market, but Matt Levine says cracking down on spoofing “helps” high-frequency traders, who I also think are bad for the market. You know why I’m not an SEC lawyer? Prosecuting people based on them being “bad” becomes untenable when everybody involved is rich. [Bloomberg View]
- Events, Law Professors, Media and Journalism, Movies, Rudeness, Sexism, Wall Street, White-Collar Crime
Last night, I attended a panel discussion at the 92nd Street Y featuring some very interesting individuals — including two lawyers. Thane Rosenbaum, the law professor and novelist, moderated a panel featuring former federal prosecutor Daniel Alonso, CNBC anchor Kelly Evans, and the “star” of the evening, Jordan Belfort — the disgraced stockbroker turned convicted felon turned bestselling author who served as the inspiration for Martin Scorsese’s 2013 film, The Wolf of Wall Street.
So what was the evening like? One attendee described it as “cringeworthy” — and I have to agree….
- 11th Circuit, Biglaw, Dewey & LeBoeuf, Drugs, Federal Judges, Insider Trading, Judicial Nominations, Law Firm Mergers, Marijuana, Morning Docket, Privacy, Wall Street
* Congratulations to Judge Jill Pryor, who will join Judge Bill Pryor on the Eleventh Circuit. [Fulton County Daily Report]
* Can you be fired for medical marijuana in Colorado, where the drug is legal even for recreational purposes? [ABA Journal]
* Dewey have some good news for the embattled ex-leaders of the defunct law firm? [New York Law Journal]
* Home Depot is the latest major retailer to be hit by a data breach. [Washington Post]
[T]he solution to the knot [of complex legal problems] has been to add more string. Simply adding more lawyers and compliance professionals will only create far worse, more complicated and more costly problems.
– Geoffrey A. Moore, author of the bestselling Crossing the Chasm (affiliate link) and other books, and Mark Harris, CEO of Axiom, in an interesting DealBook piece about the need to rethink the current model for delivery of legal services.
The legal world doesn’t have too many “crossover celebrities,” figures who are big enough to be known outside our little corner of the world. We can all think of a few — Alan Dershowitz, Judge Judy, Supreme Court justices (arguably) — and not all of them are awesome (cough cough, Nancy Grace).
One of the youngest crossover celebrities is Preet Bharara, U.S. Attorney for the Southern District of New York. He’s been on the cover of Time magazine. He’s attended the Vanity Fair Oscars party.
Bharara is best known for his crackdown on Wall Street abuses and insider trading, but he’s a fun person underneath the prosecutor’s dark suit. Yesterday the New York Times ran an interesting profile of Bharara. Here are some highlights….
- 2nd Circuit, Insider Trading, S.D.N.Y., Securities and Exchange Commission, U.S. Attorneys Offices, Wall Street, White-Collar Crime
In the federal criminal world, there are certain cases where the government almost always wins.
Illegal reentry for a previously deported person, for example, is pretty close to a lock for a government win — all the government has to show is that the person isn’t a citizen, was previously deported, and is in the United States again. If the dude’s in the courtroom, the government is a third of the way there. For example, in the last fiscal year, there were 20,840 folks charged with illegal reentry. Four of them were acquitted at trial.
Similarly, bank robbery is a high-percentage game for the government. These days, most banks have amazing technology that lets them record pretty much everyone inside. Last fiscal year, 896 people were charged with bank robbery. One lucky guy was acquitted.
These days, federal law enforcement is using wiretaps and, according to the Wall Street Journal, old-school sting operations, to go build white-collar cases (it’s a pretty cool article — very cloak and dagger). The strategies that got the federal government the conviction rate it has in drug and gun cases are being applied to investment fraud and insider trading cases.
This is one reason that insider trading cases have looked like as much of a layup as a bank robbery case. The U.S. Attorney’s Office in the Southern District of New York has secured a record of 85 convictions in either guilty pleas or trials without a single loss.
Until this week….
- 8th Circuit, Biglaw, Celebrities, Law Firm Mergers, Law Professors, Law Schools, Morning Docket, Movies, Murder, Sexual Harassment, Small Law Firms, Trials, Wall Street
* The Eighth Circuit axed a $900K jury award after a lawyer recounted her tale of sexual harassment by a law professor at Drake University Law during closing arguments. Well, that sucks, but we’d really love to know which professor this was. [ABA Journal]
* If flat is the new up, then mergers must be the new growth. The new year is upon us, and law firms are on track to either meet or break the merger record set in 2013. Thus far, 22 firms have announced mergers or acquisitions in 2014. [Washington Post]
* A lawyer in Minnesota who’s been in trouble with the bar quite a few times was recently charged with setting his girlfriend on fire. Yikes, someone’s way too excited about the Fargo mini-series. [Star-Tribune]
* Oscar Pistorius took the stand in his murder trial yesterday, revealing that when he killed his girlfriend Reeva Steenkamp, he was really trying to protect her. This case gives us the sads. [New York Times]
* Sorry we’re not sorry about the toupee: Paramount wants this Wolf of Wall Street suit dismissed since it’s undeniable the plaintiff was part of “bizarre travesty that was Stratton Oakmont.” [Hollywood Reporter]
- Bankruptcy, Biglaw, Crime, Job Searches, Kasowitz Benson, Law Professors, Law Schools, Morning Docket, Partner Issues, Partner Profits, Rap, Wall Street
* The federal judiciary is hiring for staff and public defender positions lost during the government’s sequestration throughout the better part of last year. Ready, aim, fire those résumés! [Legal Times]
* New York Biglaw firms always manage to find their way to the top of the Am Law 100 rankings. When all’s said and done, being so close to Wall Street definitely has its perks. [Bloomberg Businessweek]
* Absolutely no one should be alarmed about the fact that Kasowitz Benson’s profits per partner have dropped by 15 percent — well, no one but the equity partners, that is. Have fun with that. [Am Law Daily]
* The managing partner of Jacoby & Meyers is worried people will think his personal injury firm is going under, not Jacoby & Meyers Bankruptcy. Either way, those commercials won’t die. [New York Law Journal]
* A professor at George Mason University Law was pepper sprayed IN THE FAAAAAACE by an unknown assailant in his classroom yesterday afternoon. We’ll obvious have more on this story later. [ARLNow]
* La Verne is the first law school to offer flat-rate tuition. There will be no scholarships and no discounts. Students will pay $25K/year, nothing more, nothing less. This is, dare we say, wise. [National Law Journal]
* “Passion over pension.” Mekka Don, the Weil Gotshal corporate lit attorney turned rapper, just released his first CD, and it’s all about leaving Biglaw to follow his dreams. Go buy it here (affiliate link). [MTV]
- Biglaw, Insider Trading, Securities and Exchange Commission, Securities Law, Wall Street, White-Collar Crime
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?