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LAWYER IN RENT FIGHT OVER IRAN HOUSE It sounds like a typical landlord/tenant dispute: Tenant allegedly fails to pay rent for several months, then moves out without notice, and leaves the place in severe disrepair. But this time the landlord happens to be the State Department, the property belongs to Iran, and the tenant is a D.C. lawyer. Last month the U.S. government filed suit in the U.S. District Court for the District of Columbia against William Tedards Jr., claiming the civil trial lawyer owes more than $43,000 in unpaid rent and property damage from his time living in the former Iranian ambassador’s residence in Northwest D.C. The State Department has been managing the property, along with a dozen others throughout the country, since the United States broke diplomatic ties with Iran in 1980 and froze its domestic assets. In its May 17 complaint, Assistant U.S. Attorney Brian Sonfield claims that Tedards stopped paying his monthly rent of $5,150 in January 2004. The Tedards family then moved to Arizona at the end of July 2004 without informing the State Department, the complaint states. By that point, Tedards owed $36,098.12 in back rent and late fees. The government also claims that it spent more than $11,500 restoring the property � a cost it says Tedards should pick up. Tedards, who says he lived in the yellow brick house with his wife and four children for nearly a decade, claims it was the government’s poor performance as a property manager that caused his family to stop paying rent and move out. In 2003, Tedards says, he received a letter from the State Department stating that only very serious repairs would be tended to because terrorism litigation against Iran had frozen the agency’s account used to pay for keeping up the premises. “We still liked [the house] and tried to stay with it,” Tedards says, adding that he paid for repairs himself. “But it was getting to where it was practically uninhabitable.” Tedards says he tried to settle the matter for about $20,000, but the government wanted $33,000. A State Department official familiar with the case says he is not aware of any settlement offer. � Tom Schoenberg SECURITIES STEW The nomination last week of Rep. Christopher Cox (R-Calif.) to chair the Securities and Exchange Commission was widely heralded as a nod to big business and a step away from the SEC’s aggressive enforcement posture under outgoing Chairman William Donaldson. The SEC’s actions have been a boon to D.C. law offices, who have seen their securities regulatory practices explode over the past three years as companies have paid top dollar to lawyers who could keep them off the front pages of The Wall Street Journal. That’s created something of a feeding frenzy by New York firms eager to grab a slice of the work. Last week Cadwalader, Wickersham & Taft nabbed Bruce Hiler, chair of the securities enforcement group at O’Melveny & Myers, to head its own new securities practice. In early May, New York powerhouse Simpson Thacher & Bartlett opened a D.C. office for the first time, in large part to provide a base for its SEC work. “There came a point that it was best that partners not conduct their business in Starbucks,”says Barry Ostrager, chair of the firm’s litigation department, “even though you get Internet access in Starbucks.” And in January, Leboeuf, Lamb, Greene &MacRae shoveled out millions to lure mega-rainmaker Ralph Ferrara from Debevoise & Plimpton. In Congress, Cox, a former Latham & Watkins partner, has supported limiting securities class actions and has opposed changes to accounting rules. So would his arrival at the SEC mean that the party is over? “It would probably lead to a sort of backing off,”says David Becker, a former SECgeneral counsel and partner at the D.C. office of Cleary Gottlieb Steen & Hamilton. “I would expect him to strike out on a somewhat different path.” Cadwalader’s Hiler is more sanguine. “Other people may view this as a sea change,” he says. “But I don’t think people should underestimate the persuasiveness of the staff of the commission to direct a pretty steady course.” � Jason McLure and Emma Schwartz DEEP END Even before Hal Holbrook memorialized Deep Throat in his 1976 performance in “All the Presidents Men,” Washington lawyers were prime suspects as the scotch-drinking government source that aided Washington Post reporters Bob Woodward and Carl Bernstein in their investigation of Watergate. Among the list of possibles were: Leonard Garment, a White House counsel under Richard Nixon who actually speculated about others in his 2000 book, In Search of Deep Throat; David Gergen, a lawyer and Nixon speechwriter; and, most famously, Fred Fielding, deputy to Nixon White House Counsel John Dean and now a partner at Wiley Rein & Fielding, who was named Deep Throat by a 2003 student journalism investigation at the University of Illinois. “I always thought that Deep Throat talked like a lawyer,” says William Gaines, an investigative reporter who led the students’ investigation of Deep Throat. Last week’s announcement that W. Mark Felt, then the No. 2 official at the Federal Bureau of Investigation, was Woodward’s famous source brought the game to a close. “I had a different horse in the race, but that doesn’t make any difference,” says Garment, who had named Republican strategist John Sears in his book. But even if much of the speculation was off, Deep Throat, it turns out, did have a law degree, although he didn’t practice law in the usual sense. And the story’s end involved another attorney: John O’Connor, a litigation partner at Howard, Rice, Nemerovski, Canady, Falk & Rabkin in San Francisco, who wrote the Vanity Fair article revealing Felt’s identity. � Emma Schwartz BITTER PILL Mylan Laboratories, one of the largest generic drug manufacturers in the country, was hit with a $12 million verdict last week when a D.C. jury found that the company had violated antitrust laws. Four health plans � Blue Cross Blue Shield of Massachusetts and of Minnesota, the Federated Mutual Insurance Co., and the Health Care Service Corp. � sued Mylan to recover millions in overpayments for the generic equivalents of two popular anti-anxiety drugs. In the suit, the health plans alleged that Mylan engaged in unfair trade practices when the company entered into an exclusive agreement with one of the few suppliers of the raw materials needed to make the drugs. After the agreement, Mylan raised its drug prices over 2,000 percent, resulting in a cost to insurers and consumers of more than $1 billion, says Scott Simmer, a partner at Robins, Kaplan, Miller & Ciresi who represented the insurers. He says he expects the $12 million award to be trebled because the jury found Mylan’s actions willful. “The jury did reach a verdict, and we respect that,” says Kevin Sullivan, a partner at King & Spalding, which represents Mylan. However, Mylan has asked the judge to reconsider the verdict and if that is unsuccessful, the company plans to appeal. � Bethany Broida HEAT SEEKER While many teenagers spend their high school years scheming up new ways to pull the wool over their parents’ eyes, Scott Newman did just the opposite. As a high school junior, Newman, now 19, developed a camera that uses infrared technology to identify liars by measuring face temperature. While Newman, who is now an electrical engineering major at Virginia Tech, originally developed the lie detector as a science fair project, he quickly discovered that his invention had a number of practical applications � especially in the areas of homeland security and military defense. So he turned to his former next-door neighbor, Finnegan, Henderson, Farabow, Garrett & Dunner partner Robert Burns, for help securing a patent. With the guidance of Burns and Christopher Kent, another Finnegan partner, Newman received his patent earlier this year. What Newman plans to do next with the camera is still uncertain, but he says, “It has the potential to be a real valuable tool for someone.” � Bethany Broida LIFETIME TENURE After landing the Justice Department’s outgoing Criminal Division chief Christopher Wray to head its white collar defense practice, Atlanta-based King & Spalding announced another high-profile hire last week. Andrew Hruska, former chief assistant U.S. attorney in the Eastern District of New York, will join the firm’s 185-lawyer Manhattan office in August and be charged with boosting the firm’s white collar practice in the region. Hruska and Wray have a long history of working together.Childhood friends in New York, both men attended Yale University and Yale Law School. Early in the Bush administration, they worked together in the office of King & Spalding alum, then-Deputy Attorney General Larry Thompson. Hruska is even the godfather of Wray’s 8-year-old son. “Chris is literally my oldest friend in the world,”Hruska says. “When the firm asked Chris to help find someone to start a practice in New York, he thought of me.” � Vanessa Blum HELPING HAND “None of us got where we are solely by pulling ourselves up by our bootstraps,”the late Justice Thurgood Marshall once said. The 18 high school seniors set to become the first graduates this week of the new Thurgood Marshall Academy in D.C.’s Anacostia neighborhood learned that lesson firsthand through the school’s mentoring program with several D.C. law offices. The charter school’s class of 2005 was “adopted” by the D.C. office of Clifford Chance. That meant that the firm has paid to bus the students to its offices one night a week for the past two years to serve them dinner and to have lawyers and legal staff tutor them. “When the kids come here, they come to a section of the city they don’t often see,” says Leiv Blad, Clifford Chance’s D.C. managing partner. “Also, we have to relearn some of this stuff, particularly the math.” All 18 graduating seniors will be off to college, and next year’s seniors have already been adopted by Vinson & Elkins and Jenner &Block. � Jason McLure

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