David Safavian exonerated: another political prosecution bites the dust

June 17, 2008

What a difference two years and appellate review make! Today, the D.C. Circuit Court Appeals exonerated David Safavian, former General Services Administration Chief of Staff, overturning all of his June 2006 convictions for making false statements and obstruction of justice in connection with the Abramoff scandal. The convictions were reversed, in part, because the trial […]

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IASB & FASB crank out revenue sausage

June 14, 2008

They say once you’ve seen sausage made, you’ll never eat it again. In this sense, sausage and accounting principles may have something in common. Since 2004, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have been jointly engaged in an effort to create an accounting version of what physicists might call […]

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IFRS looming: U.S. accounting in transition

June 14, 2008

International Financial Reporting Standards (IFRS) are looming quickly for U.S. companies. A good sign of how quickly is SEC Chairman Cox’s speech at IOSCO, in Paris on May 28, 2008 where he referred to IFRS as the world’s accounting “lingua franca”. Another telling signal is that accounting firms and academics are getting together to talk […]

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EU treaty ship wrecks: Ireland rocks

June 14, 2008

Lucky or smart, Ireland has rejected the EU bureaucracy’s latest attempt — called the Treaty of Lisbon — at extending is power. A strangely bitter-sounding International Herald Tribune reports: Europe was thrown into political chaos Friday by Ireland’s rejection of the Lisbon Treaty, a painstakingly negotiated blueprint for consolidating the European Union’s power and streamlining […]

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EU’s Treaty of Lisbon foundering on Irish coast?

June 12, 2008

Like a lumbering Spanish galleon, the European Union’s most recent attempt at increasing its influence at home and abroad — the leviathan Treaty of Lisbon — has run into heavy seas off the coast of Ireland. The International Herald Tribune reports: DUBLIN: The final straw, Dermot Gilmartin said, was seeing an official struggling on television […]

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Radiologist whistleblower to receive $1.75 million

April 14, 2008

The Wall Street Journal reports today that a Florida medical-imaging center operator will pay $7 million to settle accusations that it billed CT scans not performed and offered doctors kickbacks for patient referrals. The radiologist whistleblower in the case, David Clayman, will receive $1.75 million for his efforts in the case.

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Arbitration is not for everyone

April 5, 2008

Illustrating yet again that a decisive majority — including the editors of the Wall Street Journal — can be wrong, 82 percent of respondents in a survey commissioned by the Obama campaign favored out-of-court arbitration over traditional courtroom litigation. The Wall Street Journal’s write up, “No Lawyers, Please,” notes that “most Americans do not want […]

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Jeff Skilling is innocent

March 25, 2008

What do Enron and Bear Stearns have in common? If you’re a Bear Stearns exec, you’d better hope the answer is “not much.” At least you won’t have to litigate in Houston. New York’s a bigger, better melting pot when it comes to judges and juries. Prosecutors and governors? Don’t change the subject! Today, a […]

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Société Générale’s U.S. Legal Torture Begins

March 20, 2008

It was bound to happen some time. It’s what you get, as a European company, for daring to market your shares (usually in the form of ADRs) in the United States. By providing extensive disclosures about how Jerome Kerviel whacked the the bank for nearly € 5 billion, SocGen also empowered Weiss & Lurie, an […]

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SocGen: Kerviel’s State of Mind & Timing his Gains & Losses

March 12, 2008

The SocGen debate continues. Thanks to Gaute Solheim who commented yesterday as follows: [Quoting Kurt Schulzke]: “The gains and losses were all a single product of the rogue behavior of a single trader who was discovered and ushered out of the company very early in 2008.” I am not able to follow your logic here. […]

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