Bear Stearns is not barred from seeking D&O insurance
The New York Court of Appeal held that Bear Stearns is not barred from seeking D&O insurance coverage in circumstances where Bear Stearn’s customers, rather than the Company itself, profited from alleged misconduct. The case does not involve the FCPA, however, the case could impact the way corporate FCPA defendants attempt to structure their settlements with the SEC and how they characterise disgorgement payments. Due to its unusual facts, it will have limited application.
Former Enron CEO resentenced for fraud and conspiracy charges
Jeffery Skilling, former Enron CEO has been resentenced (following appeal) to 168 months in prison for securities fraud and conspiracy charges relating to the collapse of Enron Corporation. Skilling has also been ordered to pay approximately US $42m to be applied towards restitution of the victims. This resentencing comes after Skilling entered into an agreement with the Government for a limited reduction in Skilling’s imprisonment in exchange for Skilling agreeing, among other things, not to contest the original forfeiture and restitution order and to waive all appeals and other litigation.
Former Security Contractor CEO sentenced for $31m small business fraud scheme
The former CEO of a Virginia security firm has been sentenced to 72 months in prison for creating a front company which obtained more than US $31m, intended for disadvantaged small businesses and for bribing the former regional director for the National Capital Region of the Federal Protective Service (FPS) as part of the scheme. Seven other defendants have pleaded guilty in the scheme.
Axius CEO Sentenced for Conspiracy to Pay Bribes in Stock Sales
Roland Kaufmann, CEO of Axius, Inc., was sentenced to serve 16 months in prison for his role in a conspiracy to bribe purported stock brokers and manipulate the stock of a company he controlled. In addition to his prison term, Mr. Kaufmann was sentenced to serve three years of supervised release and ordered to pay a fine of $450,000.