Former New York Supreme Court Justice Thomas J. Spargo has been indicted by a federal grand jury on charges of attempted extortion and attempted bribery for allegedly soliciting payments from a lawyer who was practicing before him in 2003. Spargo, who was removed from the bench after a state conduct commission investigation in 2006, was accused of shaking down lawyers to make contributions to a defense fund that he said he wanted to establish to fight earlier investigations by the commission.
Posts on ‘December 11th, 2008’
Leahy: History Supports Early Confirmation Hearing for Holder
In a sharply worded letter Wednesday, the chairman of the Senate
Judiciary Committee says he wants Eric Holder Jr.’s confirmation hearing
to go on as scheduled. Sen. Patrick Leahy’s letter responds to requests
that Sen. Arlen Specter made for more time before the Senate considers
Holder’s nomination to be attorney general. The letter focuses on the
history of nominations for attorney general, noting that the committee
has “customarily held hearings on a new President’s pick before
inauguration.”
Release of ‘Red Book’ a Move Toward SEC Transparency
On Oct. 6, in a substantial step towards greater transparency, the Office of Chief Counsel of the Securities and Exchange Commission’s Division of Enforcement published its Enforcement Manual, informally known as the “Red Book.” It will serve as a resource to help standardize the SEC’s investigative process by compiling many SEC enforcement procedures in one document available to the public. Attorneys Harold K. Gordon and Tracy V. Schaffer review some of the more noteworthy provisions of the manual.
First Take on Federal Rule of Evidence 502
In a recent case, Judge Michael M. Baylson issued the first opinion to apply Federal Rule of Evidence 502, which governs how to treat privileged materials inadvertently produced in discovery. Attorney Leonard Deutchman sees weaknesses in both the court’s analysis and the rule itself.
Watch Out for the Bus!
The Snark reminds us that, while the dangers associated with Big Law employment aren’t as obvious as those associated with, say, using a wood chipper, they can be almost as devastating to your career. One specific danger looms large in seemingly safe Big Law Land — buses. As in: Be careful or you will be “thrown under the bus.” As a Cog, you need to recognize the signs of a bus headed in your direction, so you can avoid finding out how it feels to be under it.
To Avoid Dissolution, Thacher Proffitt Talks With King & Spalding
Atlanta-based King & Spalding is in talks to acquire most, but not all of Thacher Proffitt & Wood’s lawyers, say sources aware of the discussions. Thacher Proffitt’s overall headcount is down more than 100 lawyers compared to last year — and so are its profits. In order to avoid dissolution, New York-based Thacher hopes to find a partner to acquire it. The two firms are said to be seeking an agreement by year-end.
Collecting, but Hardly Calm and Cool
In a normal year, December is nerve-racking, with law firms hustling to get clients to pay their bills, and making the year-end push to fill their coffers. This year, nerves are worse than racked, they’re frayed, particularly at firms that do a lot of corporate financing, M&A and private equity deals or that were working on one of the many deals or financings that have been postponed or terminated. Those firms may never get paid for the significant hours they logged.
Dreier Lawyers Describe Depleted Accounts, Departures From Firm
As Marc S. Dreier was being arrested for attempting to defraud hedge funds of more than $100 million, some of the 10 affiliates of Dreier LLP were peeling off and others were trying to hold the firm together even as money for insurance and some operating expenses is frozen. Declarations filed by the Securities and Exchange Commission in connection with its civil case against Dreier also indicated that some firm attorneys were concerned that escrow accounts, which Dreier controlled, had been depleted.
Mass. High Court Upholds Order Restricting Subprime Lender From Foreclosing
The Massachusetts Supreme Court upheld a lower court order restricting subprime lender Fremont Investment & Loan from foreclosing on certain types of mortgage loans without court approval and notification to the state attorney general. The high court criticized oral arguments by Fremont’s attorneys that the loans were underwritten when there was a reasonable expectation “that housing prices would improve during the introductory loan term, and thus could be refinanced before the higher payments began.”