Monthly Archives: October 2014

How Much Cooperation Is Enough to Avoid Prison?

How much cooperation with the government does your client have to provide to avoid prison? If portfolio manager Reema Shah is any example, the answer is…over a year. On May 21, 2014, Ms. Shah pleaded guilty to conspiracy to commit … Continue reading

Posted in Insider Trading, Securities fraud, Sentencing | Tagged | Leave a comment

A Look-Back Review Gone Wrong – SEC Charges Wells Fargo Compliance Consultant with Altering Records Related to Insider Trading

The SEC has charged Judy Wolf, a former compliance consultant for Wells Fargo Advisors, with falsifying records that were submitted to the SEC during the investigation of a registered Wells Fargo representative. Ms. Wolf allegedly falsified her internal investigation logs … Continue reading

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When an FBI Agent is the Bad Guy

On September 30, 2014, Robert Lustyik entered a guilty plea in connection with alleged grand jury tampering and obstruction of justice. Mr. Lustyik has been charged with interfering with the investigation of his alleged business partner, Michael Taylor. In return … Continue reading

Posted in Obstruction, Plea Agreement | 1 Comment

When Criminal Law and the First Amendment Meet: Can Internal Investigation Reports Be Defamation?

At the end of an internal investigation, outside counsel frequently prepares a written report. That written report may be for the Board of Directors only or it may be passed along to the Department of Justice. In the report, the … Continue reading

Posted in FCPA, internal investigation | Tagged , | 1 Comment

Betraying a Client’s Trust: Wilson Sonsini Employee and CEO of Investor Relations Firm Separately Accused of Insider Trading

The Department of Justice and the Securities and Exchange Commission are not specifically tasked with protecting client confidentiality of U.S. corporations. But the calculus changes when service providers use their client’s confidential information to profit from insider trading. An information … Continue reading

Posted in Insider Trading | Tagged | 1 Comment