Corporate Crime Roundup: Price-Fixing, Antitrust Violations, Insider Trading, Tax Fraud & More

For reference, a roundup of recent legal commentary and analysis:

Five Major Freight Forwarding Companies Debarred by U.S. Government (King & Spalding)

“Five freight forwarders who have performed significant work for the U.S. Government and Government contractors have been added to the Excluded Party List System (EPLS), meaning that they have been debarred from U.S. Government contracting… The debarment follows a September 30, 2010 guilty plea by certain of these companies to criminal price-fixing charges, antitrust violations, and an agreement by them to pay $50.7 million in criminal fines to the United States Government.” Read more»

David Einhorn and Greenlight Capital Inc. Fined £7.2M for Insider Trading (Katten Muchin Rosenman LLP)

“On January 25, the UK Financial Services Authority (FSA) announced the imposition of penalties totaling £7.3M (approximately $11.5M) on David Einhorn and Greenlight Capital Inc., for market abuse in June 2009 in relation to trading in equities of Punch Taverns… The FSA Decision Notice states that, ‘…Mr. Einhorn did not believe that the information that he had received was inside information, and he did not intend to commit market abuse. Nevertheless, the FSA considers Mr. Einhorn’s error of judgment to be a serious failure to act in accordance with the standards reasonably expected of market participants.’” Read more»

Two Officers Of The Company That Owns The Ambassador Bridge Will Both Return To Jail (Warner Norcross & Judd – Appellate Practice Group)

“Moroun and Stamper argued that they were not afforded due process in the contempt proceedings because DIBC was held in contempt, and DIBC is a separate entity from them. In her opinion, Judge Kelly rejected this argument, noting that the corporation could act only through its agents and that Moroun did have authority over DIBC, despite his contentions to the contrary. She also concluded that both men had notice of the hearings in advance, given that Stamper received the show-cause order and had been previously imprisoned for civil contempt in this case, and given that Moroun filed a motion in advance of the hearing asking to be excused from it.” Read more»

Criminal Competition Law Developments in 2011 (Osler, Hoskin & Harcourt LLP)

“On November 30, a former executive of a Peruvian airline, Cierlos Airlines, pleaded guilty to a charge of participating in an antitrust price fixing conspiracy by agreeing to impose an increase to fuel surcharges on air cargo shipments from the U.S. to locations in South and Central America, over the period September 2005 until at least November 2005. Two other executives had previously pleaded guilty on their participation in the alleged conspiracy” Read more»

Sixth Circuit Vacates White-Collar Conviction For Insufficient Evidence (Warner Norcross & Judd – White Collar)

“In an unusual move, the Sixth Circuit ordered that a Tennessee businessman’s conviction for bank fraud must be vacated. Timothy Parkes has apparently spent more than two years in prison awaiting appeal.  The Sixth Circuit held that the jury convicted him with insufficient evidence of guilt beyond a reasonable doubt.  The Sixth Circuit also held that the Court improperly excluded motive evidence critical to the defense.” Read more»

More of Your Assets May Be Exposed Than You Think (Akerman Senterfitt)

“Following the precedent set by the United States Government’s settlement with UBS in 2009, the United States Government has offered eleven financial institutions in Switzerland and Israel a settlement agreement in which the United States Government’s investigations in these financial institutions for aiding tax evasion and potential prosecution would be dropped. The terms of this agreement … would require each of the eleven Swiss and Israeli financial institutions to share data regarding United States clients and, most likely, pay a fine.” Read more»

Swiss Bankers Charged by IRS Identified (Darrin Mish) 

“The word is out. The identity of the three Swiss bankers charged by the IRS of abetting wealthy US taxpayers in avoiding taxes is revealed. The three work for Switzerland’s Wegelin & Co and are accused of helping US taxpayers dodge taxes on more than $1.2 billion in taxable income… The three individuals face a prison term of at least 5 years if convicted.” Read more»


See also: Liability and Immunity for Human Rights Violations: The Impact of Current Legal Developments on Corporate Responsibility (Foley Hoag LLP) 


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