Corporate Fraud Data Base
Corporate Fraud Data Base
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Last spring, as the five-year anniversary of the Corporate Fraud Task Forceapproached, The American Lawyer set out to review its record of fraudprosecution. This turned out to be a difficult undertaking. The U.S.Department of Justice, after repeated inquiries, finally explained that itcollects its statistics from individual U.S. attorney's offices and does notmaintain a centralized record of the corporate fraud cases that produced the1,236 convictions cited by then–attorney general Alberto Gonzales at thetask force's anniversary celebration last July.So we developed our own database of significant corporate fraudprosecutions. In this we were guided by the Corporate Fraud Task Force Website, which identified about 80 investigations deemed important by theJustice Department. We added criminal cases cited in reports published bythe task force, as well as more recent prosecutions mentioned by JusticeDepartment officials in speeches or testimony. In all, we analyzed 124corporate fraud investigations, which resulted in 440 indicted defendants.Our sources were publicly available case records, as well as interviews withhundreds of prosecutors and defense lawyers.This database contains information about when and where these 440 cases werebrought, the lawyers on both sides, and how the cases turned out. In all, webelieve the database provides a historic portrait of corporate fraudprosecution in the post-Enron age.
- Adaptec, Inc.-Countrymark Cooperative, Inc.
- Craig Consumer Electronics Inc.- HealthSouth Corporation
- HealthSouth Corporation-McKesson, Inc.
- Med-Hut Co., Inc.- Smith Technologies (Basic Research Corporation)
- Smith Technologies (Basic Research Corporation)- YBM Magnex International Inc.
| Company | Individual/Entity Indicted | Individual/Entity Background | Charges | District / Date Filed | Year Filed | Prosecutors (Location) | Defense Lawyers | Defense Firms (Location) | Overall Outcome | General Result | Sentence | Financial Penalty / Fine | Trial | Appellate Reversal |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Smith Technologies (Basic Research Corporation) | Patricia Moreno Smith | Wife of Stephen Smith | Income tax conspiracy, making false statement, aiding and abetting | Southern District of California (San Diego), filed 7/13/01 | 2001 | Leah Bussell, Phillip Halpern (San Diego) | Victor Torres | Grimes & Warwick (San Diego) | Stephen Smith's wife, Patricia, indicted as a co-conspirator and pled guilty to making a false statement to the government | Guilty plea | Three years probation | No | ||
| Smith Technologies (Basic Research Corporation) | Gilbert Holloway III | Director and president of Advanced Technologies | Tax/income-tax conspiracy, tax evasion, money laundering, mail and wire fraud, false statements to a government agency | Southern District of California (San Diego), filed 7/13/01 | 2001 | Leah Bussell, Phillip Halpern (San Diego) | Stephen Frantz | Law Offices of Stephen H. Frantz (San Diego) | Holloway pled guilty to mail and wire fraud and ordered to pay $1,500,000 in restitution; released 9/11/06; more than 100 investors—many of them evangelical Christians—lost $12 million in the scam | Guilty plea | Five months in prison and three years supervised release | $1,500,000 restitution and $100 assessment | No | |
| Smith Technologies (Basic Research Corporation) | Paul Scheibe | Fundraiser and co-creator of Basic Research Corporation | Tax/income-tax conspiracy, tax evasion, money laundering, mail and wire fraud, false statements to a government agency | Southern District of California (San Diego), filed 7/13/01 | 2001 | Leah Bussell, Phillip Halpern (San Diego) | Charles Kreindler; Ezekiel Cortez | Beck, De Corso, Daly, Kreindler & Harris (Los Angeles); Law Office of Ezekiel E. Cortez (San Diego) | Scheibe pled guilty to tax conspiracy, mail and wire fraud, and ordered to pay $2,439,350 in restitution; incarcerated until 2/14/08; more than 100 investors—many of them evangelical Christians—lost $12 million in the scam | Guilty plea | 18 months in prison and three years supervised release | $2,439,350 restitution and $100 assessment | No | |
| Smith Technologies (Basic Research Corporation) | Richard Boyer | Former CFO, accountant | Tax/income-tax conspiracy, tax evasion, money laundering, mail and wire fraud, false statements to a government agency | Southern District of California (San Diego), filed 7/13/01 | 2001 | Leah Bussell, Phillip Halpern (San Diego) | Bernard Skomal; Eugene Iredale; Boyer also represented himself pro se for a time | Law Offices of Bernard G. Skomal (San Diego); Law Offices of Eugene G. iredale (San Diego) | Boyer convicted of tax conspiracy and ordered to pay a $5,000 fine and serve a year and one day in prison; more than 100 investors—many of them evangelical Christians—lost $12 million in the scam | Guilty verdict | One year and one day in prison and three years supervised release | $5,000 fine and $100 assessment | Yes | |
| Smith Technologies (Basic Research Corporation) | Lawrence Taggart | San Diego lawyer who solicited funds as president of Basic Research, later became in-house legal counsel (former California S&L commissioner in the 1980s) | Tax/income-tax conspiracy, tax evasion, money laundering, mail and wire fraud, false statements to a government agency | Southern District of California (San Diego), filed 7/13/01 | 2001 | Leah Bussell, Phillip Halpern (San Diego) | Michael Berg; Wendy Gerboth | Law Offices of Michael S. Berg (San Diego); Law Offices of Wendy S. Gerboth (San Diego) | Taggart pled guilty to tax conspiracy, mail and wire fraud, and ordered to pay $6,900,000 in restitution; released 8/11/06; more than 100 investors—many of them evangelical Christians—lost $12 million in the scam | Guilty plea | Three years probation | $6,900,000 restitution and $100 assessment | No | |
| Standard Automotive | Steven Merker | Chairman, president, and CEO | Conspiracy, securities fraud, false filings with the SEC, bank fraud | Southern District of New York, filed 7/03 | 2003 | David Kelley -- now with Cahill Gordon & Reindel (New York); Adam Lurie (Newark); Kim Berger -- now deputy commissioner of investigations for NYC (New York) | Matthew Queler; Roger Stavis | Proskauer Rose (New York); Gallet Dryer & Berkey (New York) | Pled guilty in April 2005; the case was transferred to New Jersey for sentencing, which was scheduled for May 2007,since then, though, nothing seems to have happened | Guilty plea | Awaiting sentencing | No | ||
| Standard Automotive | William Merker | Director | Conspiracy, securities fraud, false filings with the SEC, bank fraud | Southern District of New York, filed 7/03 | 2003 | David Kelley -- now with Cahill Gordon & Reindel (New York); Adam Lurie (Newark); Kim Berger -- now deputy commissioner of investigations for NYC (New York) | Ira Sorkin; Jaime Wilsker | Dickstein Shapiro (New York); Carter Ledyard & Milburn (New York) | Pled guilty in April 2005; the case was transferred to New Jersey for sentencing, which was scheduled for May 2007, since then, though, nothing seems to have happened | Guilty plea | Awaiting sentencing | No | ||
| Stevens Financial Group Inc. | Damian Sinclair | Founder | Conspiracy, false statement, illegal participation, fraud, obstruction of justice | Western District of Missouri, filed 9/17/03 | 2003 | Matt Whitworth (Kansas City, Missouri); Pamela Wechsler -- no longer with DOJ (Universal City, California) | Donald Cooley | Donald Cooley, P.A. (Springfield, Missouri) | Sinclair died after his first court appearance. | Defendant deceased | Defendant deceased | No | ||
| Stevens Financial Group Inc. | Susan Wintermute | Also known as Susan Sinclair, wife of Damian Sinclair and a lawyer | Conspiracy, false statement, illegal participation, fraud, obstruction of justice | Western District of Missouri, filed 9/17/03 | 2003 | Matt Whitworth (Kansas City, Missouri); Pamela Wechsler -- no longer with DOJ (Universal City, California) | Helen Davis Chaitman, Peter Smith | Phillips Nizer (Hackensack, New Jersey/New York) | Wintermute sentenced to probation on two counts; later disbarred | Guilty plea | Two years probation | $5,000 fine and $200 special assessment | No | |
| Stevens Financial Group Inc. | Clarence Stevens | President | Conspiracy, false statement, illegal participation, fraud, obstruction of justice | Western District of Missouri, filed 9/17/03 | 2003 | Matt Whitworth (Kansas City, Missouri); Pamela Wechsler -- no longer with DOJ (Universal City, California) | Jason Coatney | The Law Office of Jason Coatney, LLC (Springfield, Missouri) | Stevens found guilty on one count and given 60-month sentence | Guilty plea | 60 months in prison and three years supervised release | $4,206,425 restitution and $100 assessment | Yes | |
| Suprema Specialties, Inc. | Mark Cocchiola | Founder, chairman, and CEO | Conspiracy, bank fraud, making false statements to the SEC, wire fraud and mail fraud | District of New Jersey, filed 7/11/05 | 2005 | John Fietkiewcz, Eric Jaso (Newark) | Lawrence Lustberg | Gibbons (Newark) | Convicted on all counts after an eight-week trial in April 2007; defendants preparing post-trial motions now; due may 30; sentencing scheduled for July | Guilty verdict | Awaiting sentencing | Yes | ||
| Suprema Specialties, Inc. | Steven Venechanos | CFO and corporate secretary | Conspiracy, bank fraud, making false statements to the SEC, wire fraud and mail fraud | District of New Jersey, filed 7/11/05 | 2005 | John Fietkiewcz, Eric Jaso (Newark) | John C. Whipple | Arseneault, Whipple, Farmer, Fassett & Azzarello (Chatham, New Jersey) | Convicted on all counts after an eight-week trial | Guilty verdict | Awaiting sentencing | Yes | ||
| Suprema Specialties, Inc. | John Van Sickell | Former operations manager and assistant to its executive VP | Conspiracy to defraud the U.S. and misbranding charge | District of New Jersey, filed 1/7/04 | 2004 | John Fietkiewcz, Eric Jaso (Newark) | Stacy Biancamano | Federal Public Defenders Office (Newark) | Pled guilty to one count of conspiracy and one count of adulteration and misbranding with intent to defraud; waiting to be sentenced | Guilty plea | Awaiting sentencing | No | ||
| Suprema Specialties, Inc. | Lawrence Fransen | Former principal of customer of Supreme | Conspiracy to defraud the U.S. | District of New Jersey, filed 1/7/04 | 2004 | John Fietkiewcz, Eric Jaso, Lynn Neils (Newark) | Donald Segretti; Jacob Laufer | Donald Segretti, P.A. (Irvine, California); The Law Offices of Jacob Laufer/Laufer & Associates (Brooklyn, New York) | Pled guilty to one count of conspiracy and one count of securities fraud | Guilty plea | Awaiting sentencing | No | ||
| Suprema Specialties, Inc. | Robert Quattrone | Owner and president of company involved in importing and selling cheese | Conspiracy to defraud the U.S., manipulative and deceptive devices charge | District of New Jersey, filed 1/7/04 | 2004 | John Fietkiewcz, Eric Jaso (Newark) | Kevin Marino | Marino Tortorella (Chatham, New Jersey) | Pled guilty to one count of conspiracy and one count of securities fraud; waiting to be sentenced | Guilty plea | Awaiting sentencing | No | ||
| Suprema Specialties, Inc. | Arthur Christensen | Former Suprema controller | Conspiracy | District of New Jersey, filed 1/16/07 | 2007 | John Fietkiewcz, Eric Jaso (Newark) | Robert Kipnees | Lowenstein Sandler (Roseland, New Jersey) | Pled guilty to conspiracy; not yet sentenced | Guilty plea | Awaiting sentencing | No | ||
| Suprema Specialties, Inc. | Jack Gaglio | Principal of one of the biggest customers of Suprema | Conspiracy and securities-fraud | District of New Jersey, filed 3/3/05 | 2005 | John Fietkiewcz, Eric Jaso (Newark) | Richard Marmaro; Matthew Queler | Skadden, Arps, Slate, Meagher & Flom (Los Angeles); Proskauer Rose (New York) | Pled guilty to conspiracy and securities fraud; awaiting sentencing | Guilty plea | Awaiting sentencing | No | ||
| Suprema Specialties, Inc. | George Vieira | Manager of a milk and milk-related products broker | Conspiracy to defraud the U.S. | District of New Jersey, filed 1/7/04 | 2004 | John Fietkiewcz, Eric Jaso (Newark) | James Cecchi | Carella, Bryne, Bain, Gilfillan, Cecchi, Stewart & Olstein (Roseland, New Jersey) | Pled guilty to one count of conspiracy and one count of securities fraud; waiting to be sentenced | Guilty plea | Awaiting sentencing | No | ||
| SurgiLight, Inc. | Jui-Teng Lin | Former CEO | Securities fraud, money laundering | Eastern District of New York, filed 2002 | 2002 | David Pitofsky -- now with Goodwin Procter (New York) | Daniel Horowitz; Kenton Sands | Carter Ledyard & Milburn (New York); Sands White & Sands (Orlando) | Convicted in 2002; got 70 months, forfeited $1.5 mil | Guilty verdict | 70 months in prison | $1,500,000 forfeiture | Yes | |
| Symbol Technologies | Robert Korkuc | Chief accounting officer | Accounting fraud | Eastern District of New York, filed 5/21/03 | 2003 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Barry Bohrer | Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer (New York) | Korkuc pled guilty to criminal fraud and conspiracy charges; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Guilty plea | Awaiting sentencing | No | ||
| Symbol Technologies | Kenneth Jaeggi | Senior VP and CFO | Accounting fraud | Eastern District of New York, filed 5/28/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Steven Molo, Tai Park | Shearman & Sterling (New York) | Jaeggi, who was tried along with DeGennaro and Borghese, moved for a mistrial after jury said it was deadlocked—thus he is subject to retrial; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Mistrial | Yes | No | ||
| Symbol Technologies | Michael DeGennaro | Senior VP of finance | Accounting fraud | Eastern District of New York, filed 5/28/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Eugene Goldman, Michael Sommer | McDermott Will & Emery (New York/Washington, D.C.) | Jury deadlocked on charges against Jaeggi but acquitted DeGennaro; trial judge disagreed and said DeGennaro could be retried but that decision overturned by Second Circuit; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Acquittal | Yes | Yes | ||
| Symbol Technologies | Frank Borghese | Senior VP and general manager | Accounting fraud | Eastern District of New York, filed 5/28/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Bradley Simon | Simon & Partners (New York) | Jury deadlocked on charges against Jaeggi but acquitted Borghese; trial judge disagreed and said Borghese could be retried but that decision overturned by Second Circuit; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Acquittal | Yes | Yes | ||
| Symbol Technologies | Christopher DeSantis | Former VP of worldwide sales and finance | Accounting fraud | Eastern District of New York, filed 5/28/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Avraham Moskowitz | Moskowitz & Book (New York) | Pled guilty to one count of concealing knowledge of a felony; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Guilty plea | Awaiting sentencing | No | ||
| Symbol Technologies | James Heuschneider | Former VP of sales finance | Accounting fraud | Eastern District of New York, filed 5/28/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Gerald Di Chiara | Law Offices of Gerald Di Chiara (New York) | Awaiting final disposition of Borghese, DeGennaro, and Jaeggi case; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | TBD | TBD | |||
| Symbol Technologies | Gregory Mortenson | Former senior director of finance | Accounting fraud | Eastern District of New York, filed 6/1/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Stuart Abrams | Frankel & Abrams (New York) | Pled guilty in June 2004 and cooperating with government; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Guilty plea | Awaiting sentencing | No | ||
| Symbol Technologies | Leonard Goldner | Former general counsel | Accounting fraud | Eastern District of New York, filed 5/28/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Jim Walden | Gibson, Dunn & Crutcher (New York) | Pled guilty in 2004; not yet sentenced - cooperating with government | Guilty plea | Awaiting sentencing | No | ||
| Symbol Technologies | Tomo Razmilovic | Former CEO (fled to Croatia, then Sweden) | Accounting fraud | Eastern District of New York, filed 2002 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | David Nachman; Peter Utterstrom | DLA Piper (New York); Advokatfirman Delphi & Co. (Stockholm, Sweden) | Razmilovic has fled and is currently at large living in Sweden -- David Nachman is U.S.-based lawyer while Peter Utterstrom is his attorney-in-exile so to speak | Never extradited | No | |||
| Symbol Technologies | Brian Burke | Former senior VP of worldwide operations | Accounting fraud | Eastern District of New York, filed 5/28/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Andrew Lawler; Joseph DiBlasi | Andrew M. Lawler, P.C. (New York); Arkin Kaplan Rice (New York) | Pled guilty and cooperating with government; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Guilty plea | Awaiting sentencing | No | ||
| Symbol Technologies | James Dean | Former manager and director of operations finance | Accounting fraud | Eastern District of New York, filed 4/2/04 | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); Matthew Levine -- now with Fish & Richardson (New York); Craig Steven Warkol -- now with Bracewell & Giuliani (New York); Geoffrey Kaiser (Central Islip, New York) | Pamela Rogers Chepiga | Allen & Overy (New York) | Pled guilty in April 2004 and cooperating with government; company entered into non-prosecution agreement in 2004; agreed to restitution and independent monitoring | Guilty plea | Awaiting sentencing | No | ||
| Symbol Technologies | Symbol Technologies | Company entered into non-prosecution agreement on 6/3/04 with no official criminal charges ever filed | No charges filed | Eastern District of New York, 2004 (no charges officially filed) | 2004 | Eric Corngold -- now executive NYS deputy attorney general for economic justice (Albany); David Pitofsky -- now with Goodwin Procter (New York); Roslynn Mauskopf (Brooklyn) | Andrew Levander | Dechert (New York) | Symbol entered into non-prosecution agreements with U.S. attorney's office and SEC on 6/3/2004; as part of that no official criminal charges filed against company although it admitted to wrongdoing and set up $37 million restitution fund for shareholders and paid $3 million to U.S. Postal Inspection Service | Nonprosecution agreement | $37,000,000 restitution to shareholders; $3,000,000 fine | No | ||
| Targus Group International Incorporated | William Lloyd | CFO | 25 counts of wire fraud, money laudering, and aiding and abetting | Central District of California, filed 9/19/01 | 2001 | John Hueston -- now with Irell & Manella (Los Angeles/Newport Beach, California) | James Riddet | Stokke & Riddet (Santa Ana, California) | Plea agreement on 15 counts filed 11/01, sentenced 12/02 to 37 months, $18,000 in restitution | Guilty plea | 37 months in prison | $18,000 restitution | No | |
| The Leslie Fay Companies, inc. | Donald Kenia | Controller | 2 counts of securities fraud | Information and guilty plea entered in the Middle District of Pennsylvania, 10/18/94; indictment waived | 1994 | Bruce D. Brandler (Harrisburg, Pennsylvania) | Bradley T. Beckman | Beckman & Associates (Philadelphia) | Pled guilty on both counts, 10/18/94; sentenced on 10/10/01 to 24 months prison and two years supervised release | Guilty plea | 24 months in prison and two years supervised release | No | ||
| The Leslie Fay Companies, inc. | Paul Polishan | CFO and chief accounting officer | Conspiracy to defraud the U.S., bank fraud by wire, false statements, criminal forfeiture, securities fraud | Indictment filed 10/29/96 in the Middle District of Pennsylvania | 1996 | Bruce D. Brandler, Lorna N. Graham (Harrisburgh, Pennsylvania), Theodore B. Smith III (Scranton, Pennsylvania) | Thomas P. Polishan | Hoegen Hoegen Kelley & Polishan (Wilkes-Barre, Pennsylvania) | Convicted on 18 counts and acquitted on 2 counts in a non-jury trial on 7/5/2000; sentenced on 1/23/02 to 108 months prison plus three years supervised release | Guilty verdict | 108 months in prison and three years supervised release | Yes | ||
| The Sirena Apparel Group, Inc. | Maurice Newman | CEO and chairman | 10 counts of conspiracy and securities fraud | Central District of California, filed 9/20/00 | 2000 | Gregory Weingart -- now with Munger, Tolles & Olson (Los Angeles) | Michael Fitzgerald | Corbin & Fitzgerald (Los Angeles) | Pled guilty in July 2001 to 3 counts, 3 years probation and $30,000 fine. $210,000, with Gerhart, in restitution | Guilty plea | Three years probation | $210,000 restitution with Richard Gerhart and $30,000 fine | No | |
| The Sirena Apparel Group, Inc. | Richard Gerhart | CFO | 10 counts of conspiracy and securities fraud | Central District of California, filed 9/20/00 | 2000 | Gregory Weingart -- now with Munger, Tolles & Olson (Los Angeles) | Michael Meza | Law Offices of Michael S. Meza (Santa Ana, California) | Pled guilty on 9 counts in September 2001 and was sentenced to 4 months in prison, 3 years probation and a $6,900 fine; $210,000, with Newman, in restitution | Guilty plea | Four months in prison and three years probation | $210,000 restitution with Maurice Newman and $6,900 fine | No | |
| U.S. Technologies Inc. | C. Gregory Earls | Former director | Securities fraud, 19 counts of wire fraud, two counts of mail fraud | Southern District of New York, filed 12/18/02 | 2003 | William John Stellmach, Mei Lin Kwan-Gett -- now with Willkie Farr & Gallagher (New York) | Barry Coburn; Douglas Grover; John Markham II | Trout Cacheris (Washington, D.C.); Thompson Hine (New York); Markham & Read (Boston) | Found guilty on all counts after a month long trial; sentenced to 125 months in February 2005 | Guilty verdict | 125 months in prison and three years supervised release | $21,973,828 in restitution and $2,200 special assessment | Yes | |
| U.S. Wireless | Oliver Hilsenrath | Former CEO | 36 counts of mail and wire fraud, sec fraud, and tax evasion | Northern District of California, filed 7/03 | 2003 | Laurel Beeler, Hartley M.K. West (San Francisco) | Edwin Prather; Robert Breakstone; J. Michael Matthews; Steven Kalar | Clarence & Dyer (San Francisco); Rogers Joseph O'Donnell (San Francisco); Chapman, Popik & White (San Francisco); Federal Public Defenders Office (San Francisco) | Pled guilty 2/07 to one count each of securities fraud and tax evasion | Guilty plea | Five years probation | $2,000,000 restitution and $2,000 fine | No | |
| U.S. Wireless | David Klarman | Former general counsel | 36 counts of mail and wire fraud, sec fraud, and tax evasion | Northern District of California, filed 7/03 | 2003 | Laurel Beeler, Hartley M.K. West (San Francisco) | Edward Swanson | Swanson, McNamara & Haller (San Francisco) | Pled guilty 12/03 to one count each of mail fraud and money laundering | Guilty plea | Three years probation | No | ||
| Unify Corp. | Gholamreza Mikailli | President and CEO | 10 counts of securities fraud | Northern District of California, filed5/16/02 | 2002 | Jeffrey Bornstein -- now at Kirkpatrick & Lockhart Preston Gates Ellis (San Francisco) | Allen Ruby | Ruby & Schofield (San Jose) | Found guilty in 11/03 after trial of 10 counts of securities fraud; sentenced in 2004 to 51 months in prison, restitution of $950,000, and fine $1,000.00 | Guilty verdict | 51 months in prison and three years supervised release | $950,000 restitution and $1,000 fine | Yes | |
| Westar Energy, Inc. | Douglas Lake | Former director and executive VP for strategic planning | One count of conspiracy to defraud Westar, 14 counts of circumventing internal accounting controls and falsifying books and records, eight counts of wire fraud, 10 counts of submitting false statements, and six counts of engaging in monetary transactions derived from an unlawful activity | District of Kansas, filed 12/3/03 | 2003 | Richard Hathaway (Topeka, Kansas) | Edward J.M. Little; Seth Waxman | Hughes Hubbard & Reed (New York); Wilmer Cutler Pickering Hale and Dorr (Washington, D.C.) on appeal | First trial in 2004 resulted in hung jury; was convicted at second trial in 2005; appeals court reversed the conviction in 2007; currently awaiting third trial | Guilty verdict overturned | 15 years in prison and three years supervised release | $5,000,000 fine and $2,785,067.49 restitution | Yes | Yes |
| Westar Energy, Inc. | David Wittig | Former president, CEO, and chairman of the board | One count of conspiracy to defraud Westar, 14 counts of circumventing internal accounting controls and falsifying books and records, eight counts of wire fraud, 10 counts of submitting false statements, and six counts of engaging in monetary transactions derived from an unlawful activity | District of Kansas, filed 12/3/03 | 2003 | Richard Hathaway (Topeka, Kansas) | Adam Hoffinger; Gregory Coleman (appeal) | DLA Piper (Washington, D.C.) -- Hoffinger now at Morrison & Foerster (Washington, D.C.); Weil, Gotshal & Wanges (Austin, Texas) on appeal | First trial in 2004 resulted in hung jury; was convicted at second trial in 2005; appeals court reversed the conviction in 2007 | Guilty verdict overturned | 60 months in prison and three years supervised release | $1,000,000 fine and $600 assessment | Yes | Yes |
| WorldCom, Inc. | Bernard Ebbers | Former CEO, president, and board member | Securities fraud, conspiracy to commit securities fraud and falsely filing with the SEC | Southern District of New York, filed 4/1/04 | 2004 | William Johnson, Katherine Goldstein; David Anders -- now with Wachtell, Lipton, Rosen & Katz (New York) | Reid Weingarten, Brian Heberlig | Steptoe & Johnson (Washington, D.C.) | Found guilty on all counts against him of conspiracy, securities fraud and false regulatory filings in March 2005; sentenced to 25 years in prison in Sept. 2005; case is on appeal | Guilty verdict | 25 years in prison and three years supervised release | Yes | TBD | |
| WorldCom, Inc. | Scott Sullivan | Former CFO, treasurer, and secretary | Conspiracy to commit securities fraud, securities fraud, false filings with the SEC | Southern District of New York, filed 7/31/02 | 2002 | William Johnson, Katherine Goldstein; David Anders -- now with Wachtell, Lipton, Rosen & Katz (New York) | Irvin Nathan | Arnold & Porter (Washington, D.C.) | Pled guilty to conspiracy, fraud, and making false statements; sentenced to five years in August 2005 | Guilty plea | Five years in prison and three years supervised release | No | ||
| WorldCom, Inc. | Buford Yates, Jr. | Former director of general accounting | Conspiracy to commit securities fraud, securities fraud, false filings with the SEC | Southern District of New York, filed 8/28/02 | 2002 | William Johnson, Katherine Goldstein; David Anders -- now with Wachtell, Lipton, Rosen & Katz (New York) | David Schertler; David Pikus | Schertler & Onorato (Washington, D.C.); Bressler, Amery & Ross (Florham Park, New Jersey/New York) | Pled guilty to conspiracy and fraud charges and sentenced to one year and one day in August 2005 | Guilty plea | One year and one day in prison and three years supervised release | $5,000 fine | No | |
| WorldCom, Inc. | David Myers | Former senior VP president and controller | Conspiracy to commit securities fraud, securities fraud, false filings with the SEC | Southern District of New York, filed 9/26/02 | 2002 | William Johnson, Katherine Goldstein; David Anders -- now with Wachtell, Lipton, Rosen & Katz (New York) | N. Richard Janis | Janis, Schuelke & Wechsler (Washington, D.C.) | Pled guilty to conspiracy to commit securities fraud, securities fraud, and making false statements; sentenced to one year and one day in August 2005 | Guilty plea | One year and one day in prison and three years supervised release | No | ||
| WorldCom, Inc. | Betty Vinson | Former employee in the general accounting department | Conspiracy to defraud the U.S., manipulative and deceptive devices | Southern District of New York, filed 10/10/02 | 2002 | William Johnson, Katherine Goldstein; David Anders -- now with Wachtell, Lipton, Rosen & Katz (New York) | Joe Hollomon | Law Offices of Joe M. Hollomon (Jackson, Mississippi) | Pled guilty to conspiracy to commit securities fraud and securities fraud; sentenced to five months in jail and five months house arrest | Guilty plea | Five months in prison, five months of home detention, and three years supervised release | No | ||
| WorldCom, Inc. | Troy Normand | Former employee in the general accounting department | Conspiracy to commit securities fraud, manipulative and deceptive devides | Southern District of New York, filed 10/10/02 | 2002 | William Johnson, Katherine Goldstein; David Anders -- now with Wachtell, Lipton, Rosen & Katz (New York) | Joe Hollomon | Law Offices of Joe M. Hollomon (Jackson, Mississippi) | Pled guilty to conspiracy and securities fraud; sentenced to three years probation | Guilty plea | Three years probation | No | ||
| YBM Magnex International Inc. | Igor Fisherman | COO | RICO conspiracy, wire fraud, mail fraud, securities fraud, filing false segistration statement with the SEC, false filings with the SEC, falsification of books and records, money laundering conspiracy, money laundering, aiding and abetting, forfeiture (racketeering), forfeiture (money laundering) | Eastern District of Pennsylvania, filed 3/13/02 | 2002 | Richard Barrett, Suzanne Ercole, David Fritchey (Philadelphia) | N/A | N/A | Fugitive at large. | Never extradited | No | |||
| YBM Magnex International Inc. | Jacob Bogatin | President and CEO | RICO conspiracy, wire fraud, mail fraud, securities fraud, filing false segistration statement with the SEC, false filings with the SEC, falsification of books and records, money laundering conspiracy, money laundering, aiding and abetting, forfeiture (racketeering), forfeiture (money laundering) | Eastern District of Pennsylvania, filed 3/13/02 | 2002 | Richard Barrett, Suzanne Ercole, David Fritchey (Philadelphia) | Eric Sitarchuk | Morgan, Lewis & Bockius (Philadelphia) | Fugitive at large. | Never extradited | No | |||
| YBM Magnex International Inc. | Anatoly Tsoura | VP of finance for YBM's main subsidiary | RICO conspiracy, wire fraud, mail fraud, securities fraud, filing false segistration statement with the SEC, false filings with the SEC, falsification of books and records, money laundering conspiracy, money laundering, aiding and abetting, forfeiture (racketeering), forfeiture (money laundering) | Eastern District of Pennsylvania, filed 3/13/02 | 2002 | Richard Barrett, Suzanne Ercole, David Fritchey (Philadelphia) | N/A | N/A | Fugitive at large. | Never extradited | No | |||
| YBM Magnex International Inc. | Semion Mogilevich | Russian businessman with ties to organized crime | RICO conspiracy, wire fraud, mail fraud, securities fraud, filing false segistration statement with the SEC, false filings with the SEC, falsification of books and records, money laundering conspiracy, money laundering, aiding and abetting, forfeiture (racketeering), forfeiture (money laundering) | Eastern District of Pennsylvania, filed 3/13/02 | 2002 | Richard Barrett, Suzanne Ercole, David Fritchey (Philadelphia) | N/A | N/A | Fugitive at large is believed to control the largest Russian Mafia crime syndicate in the world | Never extradited | No | |||
| (American Lawyer, Litigation 2007, November 2007) | ||||||||||||||
