Category Archives: The Legal Round-Up

The FBI has 26 open investigations for corporate fraud, including newly opened investigations at Fannie Mae, Freddie Mac, Lehman Brothers, and American Express — Stay tuned!

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Former KB CEO Settles Backdating Case with SEC for $7 Million

Former KB Home CEO agreed to pay $7 million to settle SEC charges that he backdated stock options granted to him by the company.  Bruce Karatz, known for being a brilliant marketer of homes, did not admit any wrongdoing as … Continue reading

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Settle Up; Don’t Fight

A study published in Columbia Business Law Review teaches an important principle when it comes to personal injury suits brought against businesses:  Pay early and pay less.  The study shows that the savings per claim average is $114,000 and for … Continue reading

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Broadcom Co-Founder’s Plea Agreement Rejected in Options Case

Dr. Henry Samueli, a co-founder of Broadcom Corporation, entered a guilty plea in June to lying to SEC investigators during the agency’s investigation of the backdating of the company’s options grants.  Broadcom settled with the SEC by paying a $12 … Continue reading

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The SOX Subsdiary Loophole

Since 2002, the Department of Labor has received 1,273 whistleblower complaints under the protective provisions of Sarbanes-Oxley (SOX) .  Of those 1,273 complaints, only 17 have been upheld by the Department of Labor as retaliatory conduct prohibited under SOX.  A total of 841 of … Continue reading

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Jack Abramoff: Brazen Lobbyist Says “My name is the butt of a joke” At Sentencing Hearing

In a quintessential end to a Greek tragedy, Jack Abramoff, the millionaire lobbyist who was once at the center of Washington’s movers and hakers, was sentenced to four years in prison for conspiracy to corrupt public officials.  There is some irony that … Continue reading

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Kwame Kilpatrick, Detroit’s Soon-to-be-Former Mayor, Enters Into Plea Agreement, Jail Time Included

The saga has ended.  Detroit can move on to dealing with its citizens’ issues.  Mr. Kilpatrick can begin his introspection and reform.  Mr. Kilpatrick entered a guilty plea to two counts of obstruction of justice as well as a no … Continue reading

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Kwame Kilpatrick, Detroit’s Mayor, Not in Jail for 3 weeks!

Mayor Kilpatrick has been leading an exemplary life for three weeks:  no assaults, no bail violations, and no new charges.  However, September 3 does bring Governor Jennifer Granholm’s hearings on whether the mayor should be removed from office.  Michigan planned … Continue reading

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Brocade Settles Options Backdating for $160 Million

Brocade Communications Systems Inc.  entered into an agreement to settle a class action lawsuit over alleged tampering with stock options.  Brocade will pay $160 million to the plaintiffs in the suit.  Two Brocade officers have already been convicted of criminal … Continue reading

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Kwame Kilpatrick, Detroit’s Mayor, Not in Jail

The Ethical Barometer may need to get a changing number system in order to keep track of the legal comings, goings, and bond issues of Detroit’s mayor, Kwame Kilpatrick.  After serving an evening in jail for attending a business meeting … Continue reading

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Kwame M. Kilpatrick, Detroit’s Indicted Mayor

Mayor Kwame M. Kilpatrick has his share of legal difficulties.  He is under indictment for perjury that relates to his testimony in a wonrgful termination suit of two city employees who had thrown down the flag on the mayor’s parties … Continue reading

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Former NBA Referee Tim Donaghy Gets 15 Months

After entering a guilty plea to accepting cash in exchange for providing gamblers with so-called “inside information” on NBA games, former NBA referee Tim Donaghy was sentenced to 15 months in prison.  The judge did not go with the recommended … Continue reading

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Alaska: Land of the Midnight Sums; Senator Ted Stevens Indicted on Gifts Disclosure Charges

‘Tis not a good time to be in politics in Alaska.  Senator Ted Stevens was indicted on charges that he did not disclose gifts from oil service company, VECO Corporation, including the remodeling of his home, a Viking stove, and a … Continue reading

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Truth Percolates: The Mattel Victory in the Bratz Case

Following a seven-wekk trial, a jury found that MGA and a former designer for Mattel had taken the Bratz doll from a design made whilst the designer was under contract for Mattel.  Using forensic evidence to date the designer’s notebook … Continue reading

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