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Government Enforcement Exposed - "The GEE"
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27 Feb 2014 A Little-Known Exception to the 4th Amendment: Is Your Company’s Confidential, Proprietary Data Safe from Government Inspection When Entering the U.S.?

By Brian Weir-Harden* |    You arrive home to the United States from an international business trip. Customs directs you to open your bags for an inspection. Unconcerned, you acquiesce. The Customs Agent goes through your bags and finds nothing of interest, except your work laptop. To your surprise, the Customs Agent asks you to turn it on. He randomly opens files and reviews their contents. To your further surprise, the Customs Agent informs you that he will need to temporarily confiscate your work laptop in order to conduct a forensic examination. He takes your computer and makes an image of all its contents. You think to yourself, “This must be a violation of my Fourth Amendment rights against unreasonable searches and seizure, right?”   The answer:…

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19 Feb 2014 The Position Of Assistant Attorney General For The Criminal Division May Be Filled In The Near Future

By Mark Stuaan |   Leslie Caldwell, a partner at Morgan Lewis & Bockius LLP, was nominated in September 2013 by the White House for the position of Assistant Attorney General for the Criminal Division in the Department of Justice. She was re-nominated for the position in January 2014, and her nomination took a step forward when she testified last week before the Senate Judiciary Committee. If confirmed, she would fill the position left by Lenny Breuer when he returned to private practice in 2013.   In her prepared remarks, Caldwell told the Committee: “I will do my best to ensure the vigorous enforcement of our criminal laws, and to apply them with equal force whether the wrongdoing is in a boardroom, across a computer…

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13 Feb 2014 The CFTC: Armed and Dangerous

By Trace Schmeltz |   Matt Taibbi, a well-respected journalist who covers the commodities world, recently remarked about the commodities market that, “Certain people always win and certain people always lose.”  “How Markets Are Rigged Against You,” CBC Business News, Dec. 9, 2013.   Matt was referring to a variety of phenomena, including several recent high profile cases involving allegations that large banks have rigged the LIBOR market, the currency market, and even the metals market.  See, e.g., “Goldman Sachs Creating Artificial Shortages of Metals Rigging.”  Real or perceived market manipulation threatens the commodities markets—threatening the very fabric of an American capitalism that is largely based on our access to grains, oil, metals, and other valuable commodities.   Recently, Congress has provided the Commodity Futures…

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08 Feb 2014 DOJ Wins Big Insider Trading Case: Martoma Conviction; Bad News for Cohen and SAC

By Patrick J. Cotter |   On February 6, 2014, a federal jury in New York handed the Department of Justice and U.S. Attorney Preet Bharara another victory in their ongoing campaign against perceived insider trading on Wall Street.  Martoma, once a top lieutenant to Steve Cohen, the owner of large hedge fund SAC, was convicted of acquiring and using inside information about drug tests being conducted by drug manufacturer’s Wyeth and Elan to inform SAC stock sales and purchases which netted over $275 million in profit.   The Martoma conviction, while closely watched by Wall Street insiders, the media, and, no doubt, Mr. Cohen, was not altogether unexpected. The “timeline” that the prosecution put before the jury, showing Mr. Martoma visiting with one of the…

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07 Feb 2014 SEC Continues to Struggle in Insider Trading Jury Trials

By Brian E. Casey |   The SEC’s difficulties trying insider trading cases continued to mount this past week.  Two different juries, in Texas and Illinois, concluded that the SEC failed to prove its allegations of insider trading in separate cases brought by the agency.  These results form part of what seem to be a growing trend of losses in insider trading jury trials which perhaps may cause Chair Mary Jo White to temper the agency’s enthusiasm for pushing the envelope in deciding what cases to try.  They may also encourage defendants to press on to trial, knowing that the SEC’s recent track record includes an increasing number of defeats.   For the second time in a month, juries in the Northern District of Illinois…

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