Contingency Business Litigation Attorney Blog

Recent news broke that hedge fund Diamondback paid federal prosecutors $9 million to settle claims of insider trading on Wall Street after allegedly profiting illegally from trading shares of Nvidia and Dell, the Financial Times reports.

Allegations of insider trading are serious and can leave a mark on a company from which it may be difficult to break free. The skills of a contingency business litigation lawyer may be beneficial to a business in this situation, however.

Contingency law work is helpful to the company because they aren't required to put down any money. The law firm puts up the money and only is paid in the case of a victory or positive outcome.

At a time when the company may be in hot water and may need its capital to be fluid in order to pay fines, do public relations work or make other types of payments, having a law firm working for them and doing it with no money out of their pocket can be a big benefit. Whether the lawyers are needed to weed out bad employees or work with prosecutors to deal with the allegations, this setup can help a company in need.

The New York-based hedge fund worked with federal prosecutors in Manhattan to avoid company officials from being prosecuted criminally, according to the news report. They forfeited $6 million and agreed to a statement of facts that laid out the conduct of two employees. The company also will continue operating with the government.

The fund also paid out $3 million to resolve civil insider trading charges brought by the Securities and Exchange Commission. Some believe that the non-prosecution agreement was the first involving a hedge fund adviser.

Federal prosecutors so far have secured 56 convictions of traders, consultants and lawyers as part of an FBI operation regarding insider trading. The Diamondback settlement relates to trades from 2008 and 2009.

But some Diamondback employees have been prosecuted criminally. Recently, a former employee was one of seven people charged in an alleged $62 million insider trading scheme. A former employee recently entered a guilty plea. The news report states that the company managed $5.9 billion in December 2010, but that number has shrunk to $2.5 billion, following a November 2010 FBI raid.

It's obvious that these high-profile cases involving corporate misdeeds and employee ethical or criminal violations can be a major problem for the businesses that have to deal with this type of situation. Investors and other corporations that may do business with the company may also be bringing legal action.

Businesses who find themselves in this tough position may get served with legal notices from seemingly every angle. They need sound legal representation. For companies that don't have a team of experienced attorneys in-house, the next best thing is to find a strong team of lawyers willing to work on a contingency basis.

Continue reading "Insider Trading Claims Can Derail a Business Trying to Attract Investors" »

Embezzlement is a fancy word that means theft, but it is theft from the business you work for and can lead to serious criminal penalties.

And if employees are caught by the business owners themselves or law enforcement authorities, they can be forced to spent years behind bars and possibly be forced to pay back the money that was stolen.

A contingency business litigation law firm can aid small business owners who may have been victimized by their own employees. With the economy in bad shape and most employees surviving without raises for several years, employees sometimes make bad decisions. Money stolen from a company can lead to business closure. Having legal counsel to protect your rights and seek full and timely restitution is critical.

At a time when the company has become the victim of a financial crime, the last thing it needs to endure is expensive legal bills. A law firm that works on a contingency basis will accept clients who pay nothing up front, but who agree to an amount to be paid if they are victorious.

That means the business isn't required to put up money to ensure they get back the money that was stolen from them. In many embezzlement cases, the prosecution can convince a judge to order restitution, which means the defendant would be forced to pay back all or most of the money stolen.

But there are limitations on what a criminal court can order a defendant to pay, which is why a civil lawyer can be used to help the business recover. And embezzlement is happening all across the country in different business settings.

The Associated Press reports that a Catholic church business manager in Michigan is accused of stealing $73,000 from the church.

An Oregon woman now faces charges of stealing more than $148,000 from an organic herbal supplement company by using her position as company accountant to access funds. She now faces more than a dozen charges.

In Maine, a woman who used to work for the Maine Trial Lawyers Association faces charges of embezzling $166,000 from the organization. She will go to trial in December and could face five years in prison.

These are all examples of people who were in a position of trust within their businesses or organizations and who allegedly took advantage of that position of power to take money from their bosses.

None have yet been convicted, but it shows that people are willing to take the chance of stealing from their companies at a time when money is so tight. For businesses fighting for survival in this tough economy, a loss of cash can put them out of business, so action must be swift.

A contingency business litigation firm can hit the ground running and begin pursuing your case quickly. Our lawyers will be able to investigate the situation, parallel to the criminal investigation, and work to recover the money as soon as possible. The quicker the company can recover its resources, the quicker it can return to solid financial footing.

Continue reading "Small Businesses Facing Embezzlement Require Contingency Business Litigation Counsel" »

Four employees of a California research firm have been charged with insider trading by the U.S. Securities & Exchange Commission, according to a report in the Wall Street Journal.

The government is filing such charges with alarming frequency in the wake of the economic collapse. Consulting firms, hedge funds, traders, and corporate executives should consult an experienced law firm as early as possible when it is determined a firm is being targeted by federal investigators. Consulting a contingency business litigation attorney can help ensure your rights are protected at each stage of the process.

Our experienced white-collar criminal defense attorneys know what it takes to aggressively defend against charges of fraud, insider trading or other allegations of wrongdoing.

In this case, the former employees of a Mountain View research firm are charged by federal prosecutors in Manhattan as part of a broad probe into insider trading. Allegations are that the employees had inside ties to tech firms and passed along non-public information on earnings, sales and financial performance. That information was then allegedly used to benefit the firm's clients, including investors and hedge funds.

The lawsuit alleges the consultants received hundreds of thousands of dollars in fees as a result of sharing inside information. Authorities contend nearly $6 million in illegal profits were generated through trades in some of the nation's leading tech companies, including Apple Inc., Advanced Micro Devices Inc, Dell Inc, and Research in Motion Ltd., the maker or Blackberry.

Continue reading "Consultants Continue to Face SEC Insider-Trading Charges " »