Latest from Mishcon de Reya

Mishcon Fraud Watch - April 2012

feedback@mishcon.com — Mon, 30 Apr 2012 16:25:31 GMT

Welcome to the April edition of Mishcon Fraud Watch. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of fraud in the last month.

We make no judgment whatsoever as to the morality, legality or appropriateness of the conduct which forms the subject matter of this bulletin. We simply aim to bring these matters to the attention of those involved in the prevention, detection and investigation of fraud.

UNITED KINGDOM

Legislation

Plans allowing British companies to "put up their hands" to corporate fraud, bribery, market-fixing and other white-collar offences, and pay a fine and compensation, are reported to be included in legislation in the next parliamentary session.
Frances Gibb
The Times, 22 March 2012

Financial Services

Kautilya Nandan Pruthi has been jailed for masterminding what is believed to have been Britain’s largest Ponzi scheme, duping victims out of £115 million.
Jane Croft
Financial Times, 8 March 2012

Gaming

Worldspreads, one of the UK's largest spread betting operators, is to be wound up after the discovery of an alleged accounting fraud that left up to £12 million missing from its clients' accounts.
Simon Mundy
Financial Times, 19 March 2012

United States of AMERICA

Securities and Exchange Commission (SEC)

The SEC has charged two managers of private investment funds, Frank Mazzola and Laurence Albukerk over allegations of misleading investors and pocketing undisclosed fees and commissions.
SEC press release 2012-43, 14 March 2012

The SEC has charged Thornburg Mortgage Inc executives Larry Goldstone, Clarence Simmons and Jane Starrett over an alleged scheme to fraudulently overstate the company’s income by more than $400 million.
SEC press release 2012-42, 13 March 2012

The SEC has charged investment adviser Brian Raymond Callahan with allegedly defrauding investors in five offshore funds.
SEC press release 2012-38, 6 March 2012

The SEC has charged Chinese citizens Siming Yang, Caiyin Fan, Shui Chong Chang, Biao Cang, Jia Wu, and Ming Ni, and Prestige Trade Investments Ltd., a British Virgin Islands company, with insider trading for trading in shares of Zhongpin Inc., a China-based pork processor. In addition to the charges, the SEC also obtained a court order freezing the defendants' assets in U.S. brokerage accounts.
SEC press release, 6 April 2012

The SEC has charged Michael A. Baker and Michael Gluk, former chief executives of Texas-based ArthroCare Corporation, pursuant to Section 304 of the Sarbanes-Oxley Act, seeking the clawback of bonus compensation and stock sale profits received during a time when ArthroCare was in material non-compliance with financial reporting requirements. The complaint does not allege any personal misconduct by either defendant.
SEC press release, 2 April 2012

The SEC has charged former Coca-Cola Enterprises, Inc. executive Steven Harrold with insider trading for the purchase of company stock through his wife's brokerage account prior to the company's public announcement that it was to acquire The Coca-Cola Company's bottling operations in Norway and Sweden.
SEC press release, 8 March 2012

U.S. Department of Justice

BizJet International Sales and Support Inc., an Oklahoma-based aircraft maintenance, repair and overhaul services corporation, entered a deferred prosecution agreement with the U.S. Department of Justice to resolve a charge of bribing officials in Latin America in violation of the U.S. Foreign Corrupt Practices Act. BizJet agreed to pay an $11.8 million criminal penalty and implement an enhanced compliance program and internal controls. BizJet's indirect parent company, German company Lufthansa Technik AG, entered a separate agreement relating to BizJet's unlawful actions. Lufthansa's agreement requires it to implement internal controls and cooperate with the U.S. Department of Justice.
U.S. Department of Justice press release, 14 March 2012

Broadcasting

Trinity Broadcasting Network, the world's largest Christian TV channel, has become embroiled in a multimillion-dollar financial scandal after allegations of widespread embezzlement against founder Paul Crouch and his wife Janice Crouch. Mr and Mrs Crouch deny the allegations.
Peter Beaumont
The Guardian, 24 March 2012

Banking

The former CFO of Taylor, Bean & Whitaker Mortgage Corp, Delton de Armas, pled guilty to making false statements and conspiring to commit bank and wire fraud for his participation in a $2.9 billion fraud scheme that contributed to his company's collapse as well as the failure of Colonial Bank. Six other individuals have already pled guilty for their participation in the scheme; Lee Bentley Farkas, the chairman of Taylor, Bean & Whitaker, was convicted of 14 counts of conspiracy, bank, securities, and wire fraud in June 2011 and sentenced to 30 years in prison.
U.S. Department of Justice press release, 20 March 2012

EUROPE

Manufacturing

German prosecutors have charged Holger Haerter, the former chief financial officer of Porsche's holding company, with credit fraud for allegedly making incorrect statements to a bank during a €10 billion loan refinancing. Mr Haerter denies the allegations.
Chris Bryant
Financial Times, 6 March 2012

ASIA

Financial Services

Japanese regulators have fined Chuo Mitsui Asset Trust and Banking after allegations of insider dealing before new share issues.
Michiyo Nakamoto and Brooke Masters
Financial Times, 27 March 2012

Mishcon de Reya

Mishcon's Fraud Watch is published by the Dispute Resolution Department of Mishcon de Reya. Widely recognised as the leader in the field of fraud investigations, the Department has pioneered the use of financial fraud techniques in numerous fields, including the rapidly growing areas of theft of confidential information and counterfeiting. The Department founded and run both the Fraud Network, made up of international legal fraud specialists and the Financial Risk Group, for risk and compliance officers.

Mishcon's Culture vs Corruption Diary - April 2012

feedback@mishcon.com — Mon, 30 Apr 2012 16:18:56 GMT

Welcome to the April edition of Mishcon's Culture vs Corruption Diary. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of corruption in the last month.

UNITED KINGDOM

Sport

The Bribery Act has prompted a rush of Olympic sponsors to seek legal advice on their hospitality packages and companies to tighten their internal procedures after fears of falling foul of bribery rules which outlaw "lavish" entertainment.
Roger Blitz
Financial Times, 13 March 2012

Reports

According to a report published by the OECD the way UK authorities settle bribery cases can be opaque and lead to uncertainty over whether penalties are proportionate.
Caroline Binham
Financial Times, 31March 2012

WESTERN EUROPE

Technology

Greece has reached an out-of-court settlement with Siemens over alleged bribery by Siemens Hellas, the group's Greek subsidiary, of local politicians and state officials.
Kerin Hope
Financial Times, 9 March 2012

EASTERN EUROPE

Government

President-elect Vladimir Putin has acknowledged that corruption in Russia is "systemic" and that levels of bribery payments depend on favouritism from officials within the state mechanism.
Tony Halpin
The Times, 21 March 2012

NORTH AMERICA

Pharmaceuticals

Medical device company Biomet has been fined $23 million by the United States Department of Justice for false record keeping and bribery in Argentina, Brazil and China.
Andrew Jack
Financial Times, 27 March 2012

ASIA

Real Estate

Thomas Chan, a manager at Sun Hung Kai Properties, the largest property developer by revenue in Hong Kong, has been arrested in an investigation over allegations of bribery.
Enid Tsui
Financial Times, 21 March 2012

Mishcon de Reya

Mishcon's Culture vs Corruption Diary is published by the Dispute Resolution Department of Mishcon de Reya. Widely recognised as the leader in the field of fraud investigations, the Department has extensive experience in conducting and/or project managing highly sensitive international investigations in respect of bribery and corruption allegations. The Department founded and runs both the Fraud Network, made up of international legal fraud specialists, and the Financial Risk Group, for risk and compliance officers.

Mishcon's Culture vs Corruption Diary - March 2012

feedback@mishcon.com — Thu, 29 Mar 2012 16:40:12 GMT

Welcome to the March edition of Mishcon's Culture vs Corruption Diary. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of corruption in the last month.

UNITED KINGDOM

Media

Sue Akers, the police officer leading an investigation into alleged bribery by journalists at Rupert Murdoch's British newspapers, has told the Leveson Enquiry that The Sun newspaper had a culture of corrupt payments to a network of public officials which was authorised at a senior level.
Ben Fenton
Financial Times, 28 February 2012

Reports and Surveys

Key parts of the Government's plans to crack down on corporate criminality are too "lenient" according to a report by the Organisation for Economic Co-operation and Development. The Ministry of Justice has rejected the report's claims.
David Leppard
The Sunday Times, 5 February 2012

WESTERN EUROPE

Government

Germany's president, Christian Wulff, has resigned after applications were made for his immunity to be removed as part of a cash-for-favours investigation.
Bruno Waterfield
The Daily Telegraph, 18 February 2012

NORTH AMERICA

Legal Profession

In one of the world's biggest bribery prosecutions, British solicitor Jeffrey Tesler has been jailed by a US court for his role as a middle man in the payment of $180 million in bribes to secure contracts to build a $6 billion gas plant in Nigeria.
David Brown
The Times, 24 February 2012

AFRICA

Government

A Zimbabwean diamond field is allegedly being mined by companies staffed by Robert Mugabe's police and military chiefs who may use the proceeds as a "war chest" to crack down on opponents, according to a study by Global Witness.
Peta Thornycroft and Aislinn Laing
The Daily Telegraph, 14 February 2012

ASIA

Companies

An alleged $1.7bn accounting fraud at Olympus has led Japanese authorities to arrest seven people including the camera company's former chairman and outside financial advisers.
Jonathan Soble and Michiyo Nakamoto
Financial Times, 17 February 2012

Mishcon de Reya

Mishcon Fraud Watch - March 2012

feedback@mishcon.com — Thu, 29 Mar 2012 16:30:20 GMT

Welcome to the March edition of Mishcon Fraud Watch. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of fraud in the last month.

UNITED KINGDOM

Legal Services

Lawyer Nathan Andrew Iyer has been struck-off after admitting he stole £3million from his company and clients in what the Solicitors Disciplinary Tribunal described as one of the worst cases of fraud it had encountered.
Nick Collins
The Telegraph, 8 February 2012

United States of AMERICA

Securities and Exchange Commission (SEC)

The SEC has charged three former Noble Corporation executives, Mark A. Jackson, James J. Ruehlen and Thomas F. O’Rourke, over allegations of participating in a bribery scheme to obtain illicit permits for oil rigs in Nigeria.
SEC press release 2012-32, 24 February 2012

The SEC has charged Puda Coal Inc.’s chairman Ming Zhao and former CEO Liping Zhu over allegations of defrauding investors.
SEC press release 2012-31, 22 February 2012

The SEC has charged Smith & Nephew PLC over allegations that its U.S. and German subsidiaries bribed public doctors in Greece for more than a decade to win business.
SEC press release 2012-25, 6 February 2012

The SEC has charged former Credit Suisse employees, David Higgs, Faisal Siddiqui and Salmaan Siddiqui over allegations of engaging in a complex scheme to fraudulently overstate the prices of $3 billion in subprime bonds.
SEC press release 2012-23, 1 February 2012

A U.S. Federal Judge has ordered Stanley C. Brooks, the former CEO of Brookstreet Securities Corp., to pay a $10,010,000 penalty for violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Brooks was also ordered to disgorge $110,713.31. The violations related to the selling of risky mortgage-backed securities with conservative investment goals.
SEC press release, 2 March 2 2012

US Department of Justice

The U.S. Justice Department announced it collected over $900 million in consumer fraud protection cases in 2011. The Department secured convictions against 37 defendants, a 95% conviction rate overall in consumer protection cases.
U.S. Department of Justice press release, 5 March 2012

A Kazakhstani national, Alexey Li, pled guilty in U.S. Federal Court to aiding and abetting money laundering as part of a stock 'hack and dump' scheme. Li faces a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Department of Justice press release, 2 March 2012

Hedge Funds

Doug Whitman, the head of Whitman Capital, has been charged with insider trading as part of the US government's long-running investigation into corruption on Wall Street. Mr Whitman denies the allegations.
Kara Scannell
Financial Times, 11 February 2012

EUROPE

Financial Services

Hreidar Mar Sigurdsson, former chief executive of Kaupthing Bank, and Sigurdur Einarsson, former chairman, have been formally indicted on charges of fraud and market manipulation in the latest phase of the investigation into the collapse of the Icelandic banking system in 2008. They are both expected to plead not guilty.
Michael Stothard
Financial Times, 23 February 2012

AFRICA

Government

James Ibori, formerly one of Nigeria's wealthiest and most influential politicians, has pleaded guilty to conspiracy to defraud more than $79m and is alleged to be part of total embezzlement that could exceed $250m.
Fay Schlesinger
The Times, 28 February 2012

Mishcon de Reya

Mishcon de Reya increases focus on family businesses

rashmikumar@mishcon.com (Rashmi Kumar) — Wed, 07 Dec 2011 16:01:48 GMT

It will be headed by Michael Stutman, an expert in resolving family disputes and divorce settlements. The New York-based office will handle clients who are involved in family businesses.

To read the full article, please click here.

Mishcon expands New York base with launch of family practice

katydowell@mishcon.com (Katy Dowell) — Thu, 01 Dec 2011 13:25:09 GMT

To read the full article, please click here.

Mishcons recruits partner to launch US family practice

suziring@mishcon.com (Suzi Ring) — Thu, 01 Dec 2011 13:14:49 GMT

Mishcon de Reya has launched a family law practice in New York with the hire of a new US partner. Michael Stutman joined the UK law firm this month from his own firm Mayerson Stutman Abramowitz, which he founded in 1998.

Leading Law Firm Mishcon de Reya Launches Family Practice in New York

feedback@mishcon.com — Wed, 30 Nov 2011 16:39:14 GMT

Leading London law firm Mishcon de Reya, renowned in the UK for its exceptional Family practice, has today announced the expansion of its US capability with the appointment of Partner Michael Stutman, who joins the Firm’s New York office on 1 December 2011 from Mayerson Stutman Abramowitz LLP, the Family practice he founded in 1998.

Michael, who has over thirty years of Family law experience, is a Fellow of the American Academy of Matrimonial Lawyers; Vice President and on the Board of Governors of the New York Chapter; and author of ‘How to Divorce in New York’, first published in 1993 by St Martin’s Press. He is included in the Best Lawyers in America publication and has been listed in the annual Super Lawyers publications since 2006.

An expert in helping clients settle disputes in a financially prudent and creative manner, Michael was recently lead counsel in Desilva v. Desilva, in which a wife received 100% of marital property.

Commenting on his appointment, Michael said: “Mishcon de Reya has an outstanding reputation for its Family work in the UK and I feel privileged to have the opportunity to build and expand upon that here in New York. I look forward to helping to develop what we believe will be one of the leading cross-Atlantic Family practices.”

James J. McGuire, Managing Partner of Mishcon de Reya New York LLP, added: “For some time now we have witnessed the increasingly international nature of our clients needs, and recognise the growing value of multijurisdictional expertise in wealth management. Michael’s appointment, with his wealth of experience in Family law, will help us to accommodate these needs as we develop our cross-border practice. We are delighted to welcome him to the firm.”

Founded in 1937, Mishcon de Reya offers a wide range of legal services to companies and individuals, specifically: corporate; dispute resolution; employment; family; private client; and real estate.

Mishcon de Reya New York LLP opened in January 2010. Headed by McGuire, it has to date focused on white collar criminal and complex commercial litigation, including regulatory and international arbitration, with notable cases including an ongoing class action suit against Google Inc.

Stutman Launches Family Practice at Mishcon de Reya

johncaher@mishcon.com (John Caher) — Wed, 30 Nov 2011 13:27:37 GMT

Michael D. Stutman, the matrimonial law partner and co-founder of Mayerson Stutman Abramowitz has left the firm to help launch a family practice in the New York City office of London-based Mishcon de Reya. The Mayerson firm will become Mayerson, Abramowitz & Kahn.

An Annual Report from Mishcon de Reya

feedback@mishcon.com — Tue, 26 Jul 2011 00:00:00 GMT

In anticipation of our 75th anniversary in 2012, we wanted to share with you how far we’ve come and where we are today.

Download PDF - 4,716 KB

View Flipbook version

Mishcon de Reya announces promotions on both sides of Atlantic

feedback@mishcon.com — Thu, 21 Apr 2011 00:00:00 GMT

Mishcon de Reya has today announced its annual promotions and, for the first time, is delighted to be able to announce them on both sides of the Atlantic.

In the London office, litigator Derval Walsh has been promoted to Partner and Kate Higgins, the Firm's Head of Corporate Know-How, has been promoted to Legal Director.

Derval Walsh is a Solicitor Advocate, and deals with a broad range of contentious matters across banking and corporate sectors. He has experience of a number of major commercial and banking cases in English Courts, including the High Court and the Court of Appeal.

Kate Higgins is a skilled and experienced knowledge manager, with responsibility for know-how, training and development in the Corporate Group. Prior to joining Mishcon de Reya in 2009 she spent over 15 years in City law firms - in corporate law, mergers and acquisitions and corporate finance.

All UK promotions will come into effect on 10 April 2011.

In addition, Mishcon de Reya New York LLP is delighted to announce the promotion of Vincent Filardo, Jr to Partner, effective 1 April 2011.

Vincent joined Mishcon de Reya in January 2010 from Sheppard Mullin, where he had worked for five years in the white collar and internal investigations group. Prior to this, he spent four years at White and Case specialising in commercial litigation and IP.

In London, Mishcon de Reya's Managing Partner, Kevin Gold commented: “It is a great pleasure to be able to announce promotions on both sides of the Atlantic this year. I would like to offer sincere congratulations to Derval, Kate and Vin, all of whom are very deserving of this recognition of their valued contribution.”

Mishcon de Reya New York LLP secures victory for Islamic financial group wrongfully accused of links to 9/11 attacks

feedback@mishcon.com — Fri, 17 Sep 2010 00:00:00 GMT

New York, 17 September 2010 – Mishcon de Reya New York LLP today announces a major victory for its client Dar Al-Maal Al-Islami Trust ("DMI Trust"), in the massive and long-running litigations in which DMI Trust was wrongfully accused of financing Al Qaeda prior to the devastating September 11 terrorist attacks.

The United States District Court for the Southern District of New York dismissed all claims against DMI Trust, ruling that the plaintiffs had shown nothing to indicate that DMI Trust ever did anything more or less than engage in routine banking services, and the alleged actions of DMI Trust's putative subsidiaries could not rightly be attributed to DMI Trust.

The case is the last of a series of similar law suits handled by the Mishcon de Reya New York team since August 2002, involving DMI Trust, Sheikh Abdulaziz bin Ibrahim al-Ibrahim, and companies and individuals related to both parties. All claims against all of those parties have now been dismissed, capping a complete victory in the District Court for the Firm and its clients in this long-running and complex dispute.

With several hundred named defendants and potential damages in the trillions of dollars, these complex law suits have traversed a circuitous course over eight years, through two United States District Courts, the Court of Appeals for the Second Circuit, and the United States Supreme Court. Nevertheless, Mishcon de Reya was able to navigate the matter to dismissal, without any of its clients being subjected to extremely expensive discovery.

James J. McGuire, Managing Partner of Mishcon de Reya New York LLP comments “This is clearly a case that has been very emotionally charged and the allegations against our clients were extremely serious. The judgments have cleared our clients of any connection to 2001’s devastating attacks on the US and we can now draw a line under these cases.”

The Mishcon de Reya New York team was led by partners James J. McGuire and Tim McCarthy, assisted by associate Aimee Kahn.