News

Yesterday, May 2, 2012, Morvillo Abramowitz partner Edward Spiro argued before the U.S. Court of Appeals for the Second Circuit that the wrong legal standard was applied in 2011 when the Southern District in Koch v. Christie's International, 11-1522-cv. dismissed William Koch's racketeering and civil fraud claims against the auction house Christie's because the statute of limitations had run.  Mr. Spiro's argument is discussed in "Jefferson Wine?  Circuit Samples Deal That Has Left a Sour Taste"  (New York Law Journal, May 3, 2012),  "Koch's 2010 suit against Christie's alleging a 'decades-long scam of promoting, authenticating, and selling supposedly rare wines that it knew to be counterfeit' was timely under the four-year statute of limitations, Spiro argued yesterday, because Koch only learned incriminating evidence in 2007."

The National Law Journal named Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. to the 2012 Midsize Hot List, one of only 20 law firms selected because they are not just good at what they do, but good at how they do it proving that process is as important as results. The firm was noted for recent cases centering on insider trading, the Foreign Corrupt Practices Act, stock-options backdating, tax shelters and tax fraud and for literally being "lawyers' lawyers" for representations of attorneys, accountants and physicians, among others. "We maintain a collegial, cooperative, nonhierarchical atmosphere which produces the highest quality work product that in our view exceeds the work done at other firms, large and small," said principal Elkan Abramowitz. "We have been able to attract the cream of the crop of available associate talent who come to us because they want to be part of this ethos, which is not duplicated in any other private firm of which I am aware."

On March 1, 2012, the United States Court of Appeals for the Second Circuit agreed with Morvillo Abramowitz Grand Iason Anello & Bohrer, P.C. in a precedent setting case applying the Supreme Court’s decision in Morrison v. National Australia Bank Ltd., which limited the extraterritorial reach of the Securities Exchange Act of 1934.  In Absolute Activist Value Master Fund Ltd., v. Ficeto, --- F.3d ----, 2012 WL 661771 (2d Cir. Mar. 1, 2012), the Second Circuit affirmed the dismissal of all claims brought by nine Cayman Islands hedge funds against former officers and directors of investment manger Absolute Capital Management Holdings Ltd., and its broker-dealer, for losses from an alleged scheme involving stocks in small-cap United States companies.  Morvillo Abramowitz Partner Robert J. Anello was lead counsel before the district court and argued the Second Circuit appeal on behalf of Sean Ewing, the former Chairman and Chief Executive Officer at Absolute Capital Management. 

In its decision, the Second Circuit explained that in order to allege sufficiently the existence of a “domestic transaction” in an off-market securities transaction after Morrison, a plaintiff must allege facts suggesting that either “irrevocable liability was incurred or title transferred within the United States.”  After reviewing the sixty-one page complaint, the Second Circuit found the allegations in this regard insufficient, but remanded to the district court to provide the plaintiffs an opportunity to re-plead.  The Second Circuit directed the district court on remand also to consider alternate arguments for dismissing the case, including failure to state a claim, expiration of the statute of limitations, and lack of personal jurisdiction.  Morvillo Abramowitz attorneys Judith L. Mogul and Eli J. Mark also represent Mr. Ewing in this matter.

Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. dominated The International Who's Who of Business Crime Defence Lawyers 2012 in terms of firms and number of individuals featured.  Noted as the, "renowned litigation boutique," Who's Who Legal noted that the firm, "sets the standard," with an impressive nine listings, two more than in the previous edition.  Morvillo Abramowitz lawyers listed in Who's Who Legal include Elkan Abramowitz Robert J. Anello, Barry Bohrer, Paul R. Grand, Lawrence Iason,  Gregory Morvillo, Jodi Misher Peikin, Jonathan Sack and Richard D. Weinberg.
 
Since 1996 Who's Who Legal has identified the foremost legal practitioners in multiple areas of business law.  In total, Who's Who Legal features over 10,000 of the World's leading private practice lawyers from over 100 national jurisdictions. Who's Who Legal prides themselves on the integrity and authority of their findings.  It is impossible to buy entry into this publication.

Morvillo Abramowitz ranked 17th on Law360's ranking of the largest white collar practice groups in the Law360 White Collar 100, a listing Law360 also noted as, "... a veritable who's who of prestigious firms."  
 
Law360 is a news source focused entirely on covering the entire spectrum of legal practice areas with news, tracking and reports, expert analysis, profiles and original articles.  From September-November 2011, Law360 surveyed law firms with 100 or more lawyers and select boutique firms to find the number of lawyers working for the firm in the following practice areas: Bankruptcy, Capital Markets, Competition, Energy, Environmental, Government Contracts, Insurance, Intellectual Property, International Trade, Labor & Employment, Litigation, Media & Entertainment, Mergers & Acquisitions, Privacy & Consumer Protection, Product Liability, Project Finance, Real Estate, Securities, Tax and White Collar.

With the start of the federal trial of alleged Ponzi schemer R. Allen Stanford, Morvillo Abramowitz partner Barry Bohrer, joined by Benjamin Brafman, share trade secrets on finding jurors in "Just One Not-Angry Man:  Jury Strategizing For Fat Cats," New York Magazine, January 29, 2012.

Morvillo Abramowitz served as appointed counsel in a nine-day trial that ended in the defendant's acquittal.  The firm was appointed by the court under the Criminal Justice Act to represent former Town of Ramapo police officer James Curley in United States v. James Curley, 08 Cr. 404 (S.D.N.Y.).  The charges in the case were interstate stalking, cyberstalking, and interstate violation of an order of protection.  Mr. Curley faced a maximum term of imprisonment of 15 years.  On Tuesday, January 31, 2012, the jury returned a verdict of not guilty on all charges.  The members of the Morvillo trial team were Richard F. Albert, James R. Stovall, Eric Ruben, Rebecca Braun, and Meredith McAvoy.

After 90 minutes of deliberation, a Southern District of New York jury awarded Morvillo Abramowitz client, Donald Drapkin, a judgment in excess of $16 million in two civil actions, Drapkin v. Mafco Consolidated Group LLC, No. 09 Civ. 4513 (SDNY) and MacAndrews & Forbes LLC v. Drapkin, No. 09 Civ. 1285.  For 20 years, Mr. Drapkin served as Vice Chairman of MacAndrews & Forbes, a company wholly owned by its Chairman and Chief Executive Officer Ronald O. Perelman. Mr. Drapkin brought a breach-of-contract lawsuit against his former employer in 2009, when the company ceased to honor payment obligations it had to Mr. Drapkin under his severance agreement and a stock purchase agreement.  In countersuit, MacAndrews & Forbes alleged that Mr. Drapkin had materially breached 5 provisions of his severance agreement.  On Friday, January 27, 2012, the jury found that Mr. Drapkin had adhered to the terms of a 2007 separation agreement when he left MacAndrews & Forbes, Mr. Perelman’s holding company, and was owed $16 million from that agreement.   Together with attorneys at Hogan Lovells, Mr. Drapkin was represented by Elkan Abramowitz, Thomas Keane, Sid Kamaraju, Christopher Robbins, and Max Rodriguez.

http://www.bloomberg.com/news/2012-01-28/perelman-s-macandrews-forbes-loses-16-million-drapkin-verdict.html

http://dealbook.nytimes.com/2012/01/27/perelman-loses-court-battle-over-16-million-suit/

Directors & Boards Corporate Governance for Thought Leaders January 2012 E-Briefing features Morvillo Abramowitz Partners Jonathan S. Sack, Catherine M. Foti and Robert J. Anello commenting on the attorney-client privilege as one of the critical issues facing directors today, including how it applies to corporations, internal investigation 'work product' with respect to privilege, considerations when privileged materials are inadvertently disclosed to third parties, and applications of privilege outside the United States. To view the entire Q&A click here.

With great sadness, Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. announces the passing of our partner and colleague, Robert G. Morvillo. Bob was an unrivaled advocate dedicated to protecting his clients, upholding the finest traditions of the legal profession. He also was a dear friend, wonderful colleague, and cherished mentor to us all. We extend our love and deepest sympathies to his family. We will miss him.

Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. was recognized both as a National Leader in White-Collar Crime and as a Recommended Litigation Firm in New York by the 5th annual edition of Benchmark Litigation: The Definitive Guide to America's Leading Litigation Firms & Attorneys. In addition, Morvillo Abramowitz partners Elkan Abramowitz and Robert G. Morvillo were named National Litigation Stars in White-Collar Crime with the publication also naming Mr. Abramowitz, Mr. Morvillo and Robert J. Anello as Local Litigation Stars in New York.

Benchmark is the only publication on the market to focus exclusively on litigation in the U.S. The guide's results culminate a six-month research period during which researchers conduct extensive interviews with litigators and their clients.

Morvillo Abramowitz was among a group of distinguished law firms honored by The Legal Aid Society as one of the recipients of the Society's 2011 Pro Bono Publico Award in recognition of the firm's outstanding pro bono service, dedication and commitment to The Legal Aid Society and its clients. In addition, Morvillo Abramowitz Associate Andrew Brunsden and Partner Robert Radick were also honored with 2011 Pro Bono Publico Awards for their work saving homes for low-income New Yorkers and their outstanding advocacy that saved the apartment of a low-income tenant who was wrongfully terminated from the Section 8 subsidy program while she was on maternity leave. The Awards, presented by The Honorable Jonathan Lippman, Chief Judge of the State of New York, recognize the outstanding work of volunteer lawyers, law firms, and corporations, and other professionals who support the Legal Aid Society and/or participate in the Society's Pro Bono Program by providing exceptional legal services to low-income New Yorkers.

The Legal Aid Society is a private, not-for-profit legal services organization, the oldest and largest in the nation, dedicated since 1876 to providing quality legal representation to low-income New Yorkers. It is dedicated to one simple but powerful belief: that no New Yorker should be denied access to justice because of poverty. The Society handles 300,000 individual cases and matters annually and provides a comprehensive range of legal services in three areas: the Civil, Criminal and Juvenile Rights Practices. More information on the Society can be found here.

Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. has received two First Tier Rankings in the 2011 - 2012 U.S. News - Best Lawyers "Best Law Firms" Rankings. The firm placed in the First Tier Ranking for New York: Criminal Defense: White-Collar - Governmental Investigations and New York: Criminal Defense: White-Collar - Litigation.

The U.S.News - Best Lawyers® "Best Law Firms" rankings are based on a rigorous evaluation process that includes the collection of client and lawyer evaluations, peer review from leading attorneys in their field, and review of additional information provided by law firms as part of the formal submission process. An unprecedented amount of data was collected in the project's second year, and this combined data resulted in the 2011-2012 "Best Law Firms" rankings.

Alison Frankel's ON THE CASE (Thomson Reuters 10/26/2011 "Gupta's best defense? Raj broke 'relationship of trust'") details how Goldman Sachs and Procter & Gamble director Rajat Gupta's best defense may rely on an SEC rule and a September 2011 ruling by the U.S. Court of Appeals for the Second Circuit in a previous insider trading case, U.S. v. Gansman. The Gansman appeal, argued by Gansman's lead defense lawyer Barry A. Bohrer of Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. established new law in this area. Frankel notes that, "... crucially, the appeals court ruled it's appropriate for accused tipsters to argue that they trusted the people who received their inside information not to trade on it." To view the entire article, click here.

Leading litigation firm Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. today announced that it has joined Forbes.com as a contributor, with its own page on Forbes.com entitled The Insider: White Collar Defense and Securities Enforcement (http://blogs.forbes.com/insider/.)  The Insider blog extends the firm's thought leadership platform from traditional print and online publications to interactive social media.

Posts on The Insider blog have tackled how to define fraud under federal criminal law, issues concerning Dodd-Frank's bounty program for whistleblowers, and the unintended consequences of recent Supreme Court rulings relating to private securities litigation.  Morvillo Abramowitz partners Richard Albert, Lawrence Bader, Lawrence Iason, Stephen Juris and Jeremy Temkin will regularly blog on a wide range of topics and the issues the firm is best known for:  white collar defense, securities enforcement and government investigations, internal investigations, the Foreign Corrupt Practices Act, securities litigation and criminal tax issues.  In addition, on occasion they will be joined by other Morvillo Abramowitz partners.

Forbes.com is the home page for the world's business leaders and is among the most trusted resources for business executives and affluent consumers - connecting them with relevant information, concise analysis, online communities and engaging tools that they need to succeed.  Throughout the business day, Forbes.com publishes thousands of articles from hundreds of editors and contributors across the globe, delivering a consistently rich and compelling experience with all the immediacy, depth and interactivity that the web allows.

Interested readers can subscribe to The Insider here: http://blogs.forbes.com/insider/

On Wednesday August 10, 2011, Principal Barry  A.  Bohrer  was interviewed by Bloomberg Law's Lee Pacchia about recent insider trading investigations, the standards defining criminal versus civil cases, and the sentencing phase for the trial of Galleon Group LLC founder, Raj Rajaratnam.   To view click here.

On Wednesday, July 13, 2011, Principal Robert J. Anello was interviewed by Lee Pacchia of BloombergLaw on the News Corp hacking scandal.  Mr. Anello discussed the intricacies of internal investigations, what this event means for others in the media industry, and the possibility of DOJ and SEC investigations.  To view click here.   http://ow.ly/5DWWb

For the eighth year in a row, Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C., has been recognized by Chambers USA:  Americas Leading Lawyers for Business as a leading litigation firm. Chambers USA 2011 gave its highest ranking, Band 1, to the firm in Litigation: Specialist Firms in White-Collar Crime & Government Investigations (New York).

The firm was heralded as, "...an excellent litigation firm with a deep bench of attorneys."  Five of the firm's attorneys received individual recognition in Litigation:  White-Collar Crime & Government Investigations, the highest number of individuals among all firms in this category.   The five attorneys who received individual recognition were Elkan Abramowitz, Robert Morvillo, Barry Bohrer, Lawrence Iason, and Robert Anello.  In addition, Robert Morvillo received individual recognition in Litigation:  Trial Lawyers (Nationwide).

Chambers USA is a product of Chambers & Partners, publishers of the world’s leading guides to the legal profession. To obtain their results, Chambers engages a team of 100 highly qualified full-time researchers, conducting thousands of interviews with lawyers and their clients worldwide every year.

On May 26, 2011, Principal Barbara Moses was inducted President-Elect of the New York County Lawyers' Association.  Most recently Ms. Moses served as Vice President of the Association.  She has also been a Director since 2007 and served as the Chair of the Federal Courts Committee from 2004 through 2006.

The Board of Directors of the Fund for Modern Courts and Committee for Modern Courts, non-profit organizations dedicated to judicial reform in New York State, announced that Barry A. Bohrer was elected Chair of the Executive Committee of both organizations.  Mr. Bohrer has been a member of Modern Courts’ Board since March 2007.  Founded in 1955, Modern Courts is a nonpartisan, nonprofit, statewide organization dedicated to improving the courts in New York State through advocacy, public education and in-court programming.  Additional information about Modern Courts is available here.

Leading litigation firm Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C., is pleased to announce that Lisa A. Prager has joined the firm as Principal. The firm also announces the opening of its Washington, DC, office, located at 1899 Pennsylvania Avenue NW (202-349-0122). The office will be led by Ms. Prager.

“We are very pleased that Lisa has joined our firm. She is an impressive trial lawyer with tremendous experience and a stellar reputation in the DC legal community. Her presence in Washington will greatly strengthen our ability to serve clients in the DC area,” said Elkan Abramowitz of Morvillo Abramowitz. “While we have been representing clients in Washington for many years, Lisa’s skills and expertise in government investigations, export controls and Foreign Corrupt Practices Act matters, including her considerable  trial experience, are perfect complements to our core white collar and regulatory practices, and will be a strong foundation in our development of a broad litigation practice in Washington.”

 “Morvillo Abramowitz is the gold standard for vigorous and sophisticated representation and I am honored to join them,” said Ms. Prager. “I look forward to launching our DC office and continuing my trial practice there.”  Ms. Prager will get her chance this summer as she goes to trial in United States  v. Goncalves et al., 1:09-cr-00335 (D.D.C.) (RJL), a case touted by DOJ as the largest single prosecution of individuals in the history of FCPA enforcement.  “Morvillo Abramowitz’s track record in forcefully and successfully defending its clients, coupled with increased criminal and regulatory enforcement activity in DC, make the establishment of our Washington practice a timely response to client needs,” said Ms. Prager.

Ms. Prager’s experience includes defending companies and individuals in government investigations and enforcement actions, both regulatory and criminal, arising from U.S. export controls, economic sanctions law, and the Foreign Corrupt Practices Act.  In addition, Ms. Prager counsels a wide range of domestic and foreign companies with respect to State Department, Treasury Department, and Commerce Department export control laws and regulations. Most recently, she was a Partner with Wilson, Sonsini, Goodrich & Rosati.

Prior to going into private practice, Ms. Prager was Acting Assistant Secretary and Deputy Assistant Secretary for Export Enforcement at the U.S. Department of Commerce's Bureau of Industry and Security.  While at Commerce, Ms. Prager served as the highest ranking career employee in Export Enforcement.  Her work at the Commerce Department included managing many of the agency's largest export control settlements and indictments to date, including criminal investigations related to Chinese exports and the freight-forwarding industry. In addition, Ms. Prager helped the agency establish a more streamlined and transparent process for resolving civil cases, including publication of the penalty guidelines.

Ms. Prager joined Commerce after a distinguished career at the United States Attorney’s Office in DC.   As an Assistant U.S. Attorney, she handled federal cases involving terrorism, wire and mail fraud, economic espionage, and export control violations, among many other matters.

Ms. Prager is also a member of the board of TheatreworksUSA , a nonprofit organization that brings theater to children and families around the country who otherwise would have no access to the performing arts. She received her J.D., magna cum laude, from Western New England College School of Law in 1982, and her B.A. from Yale University in 1978.

ABOUT MORVILLO ABRAMOWITZ

Morvillo Abramowitz is a New York-based litigation firm of over 60 attorneys. Since its founding in 1972, Morvillo Abramowitz has represented institutional and individual clients with complex white collar criminal and regulatory matters, securities litigation and sophisticated business disputes. The firm also has broad experience conducting internal investigations on behalf of corporate clients and provides litigation-avoidance advice and other confidential legal counseling, often in highly sensitive contexts.

On March 21, 2011, in a closely-watched case involving significant issues of national security and civil liberties, the United States Court of Appeals for the Second Circuit agreed with Morvillo Abramowitz and ruled that a coalition of attorneys, journalists, and human rights activists are entitled to challenge the Bush-era expansion of the federal wiretapping laws even if they cannot prove that their communications have been “acquired” by the government.  In Amnesty Int’l USA v. Clapper, ___ F.3d. ___, 2011 WL 941524 (2d Cir. Mar. 21, 2011), the Second Circuit reversed the district court and held that Amnesty International and its co-plaintiffs have standing to proceed with a constitutional challenge to the 2008 amendments to the Foreign Intelligence Surveillance Act.  Those amendments permit the government to conduct large-scale electronic eavesdropping – including surveillance of communications into and out of the United States – with no warrant and little judicial oversight, so long as it attests that “a significant purpose” of the wiretaps is the collection of foreign intelligence.

Morvillo Abramowitz Principal Barbara Moses, along with Associate Andrew Brunsden and attorneys from the Brennan Center for Justice, authored the lead amicus curiae brief , filed on behalf of the Brennan Center and other public interest organizations in support of the plaintiffs.  The amici argued that that unless a statute authorizing secret wiretaps can be challenged by plaintiffs whose telephone calls and emails fall squarely within the class that the statute permits the government to “acquire,” the validity of that statute would be effectively immunized from judicial review.  The Second Circuit agreed.  It noted that the plaintiffs had reasonably undertaken burdensome measures to protect the confidentiality of their communications against likely government eavesdropping, and held that “[n]othing more is required for standing.” 

After six years of hard-fought litigation against the S.E.C., on March 31, 2011 Morvillo Abramowitz, led by Principal Paul R. Grand, achieved an outstanding result for Afshin Mohebbi, the former President and Chief Operating Officer of Qwest Communications International, Inc. – a complete dismissal of the S.E.C.’s case against Mr. Mohebbi.  The firm has defended Mr. Mohebbi since the onset of the S.E.C.’s investigation into Qwest’s financial disclosures and throughout the S.E.C. enforcement action filed against Mr. Mohebbi in March 2005. 

The S.E.C. alleged that Mr. Mohebbi and others overstated revenue and failed to disclose Qwest’s reliance on sales of indefeasible rights of use, or IRUs.  In March 2010, the firm won a partial dismissal from the Honorable Marcia S. Krieger of the United States District Court of Colorado, who dismissed six out of eight claims against Mr. Mohebbi, finding that the alleged overstatements of revenue were “not due to any misconduct on Mr. Mohebbi’s part.”  A year later to the day, Judge Krieger issued an opinion dismissing the S.E.C.’s remaining claims against Mr. Mohebbi, finding “that the SEC has come forward with no evidence demonstrating Mr. Mohebbi’s substantial assistance to Qwest’s failure to disclose details of the IRU revenue,” and ordered Mr. Mohebbi’s name removed from the caption of the case.  “The simple fact is that Afshin Mohebbi was an exemplary executive who never should have been sued,” said Mr. Grand.  Morvillo Abramowitz Associate Jasmine Juteau also represented Mr. Mohebbi in this matter.

On March 2, 2011, Morvillo Abramowitz, led by Principals Robert J. Anello and Judith L. Mogul, won the dismissal of all claims against a well-regarded private wealth management company brought by three former investors in Westchester County Supreme Court.  The private wealth management company had provided the investors with decades of outstanding, long-term investment management services, earning the primary investor millions in profit.  In the wake of the general financial downturn in 2008 and Bernard Madoff’s now-infamous fraud, the investors sought to hold the wealth management company liable for the reduction in their portfolios’ profits, including for losses that the primary investor sustained in two indirect investments in Madoff feeder funds. 

The principal investor had previously brought and lost an arbitration before the Financial Industry Regulatory Authority (“FINRA”) against a number of entities and individuals related to the wealth management company.  In the subsequent New York State-court action, the judge accepted the argument advanced by Morvillo Abramowitz that the FINRA arbitration precluded relitigation of the primary investor’s claims.  The court held that the plaintiff “cannot pursue the same claims in another forum against the same parties or their privi[ti]es.”  It dismissed all claims against the private wealth management company by the investor with prejudice.  The court also dismissed with prejudice the fraud claims brought by the remaining two plaintiffs who were not parties to the arbitration, and also dismissed without prejudice negligence and breach of fiduciary duty claims by the same plaintiffs.

On January 5, 2011, New York City Police Department Commissioner, Raymond Kelly, announced that firm Principal and former federal prosecutor, Robert G. Morvillo, has been named as one of three members of a newly-formed panel to review the Department's internal crime-reporting system.  Faced with questions about how the Department has reported crime statistics to the public, Department spokesman, Paul J. Browne, indicated that the creation of the panel would represent the first outside inquiry into this matter.  As reported by The New York Times, Mr. Kelly announced that "....the panel, called the Crime Reporting Review Committee, ....would be given broad access to people and documents to review the ways the Police Department records, tracks and audits its own crime numbers."

MAGIAB Principal Robert J. Anello was among a group of distinguished authors who were honored on November 15, 2010 by the New York County Lawyers’ Association and Thomson West for their contributions to the recently published Third Edition of Commercial Litigation in New York State Courts.  Mr. Anello authored a chapter on White Collar Crime, which is a new addition to the six-volume treatise.  Commercial Litigation in New York State Courts is widely recognized as a leading resource on procedural and substantive legal issues in New York commercial litigation.  In a review of the treatise published in the New York Law Journal on November 22, 2010, Thomas E. Mercure wrote:

"Given that parallel civil and criminal proceedings in business matters are increasingly common, the chapter on white-collar crime and on the interplay between commercial litigation and criminal proceedings are particularly valuable.  Both chapters are strategically focused, providing practical advice on the issues such as immunity, privileged materials, protective orders and the interplay between civil damages and criminal restitution."

In his chapter, “White Collar Crimes in the New York State System,” Mr. Anello provides an overview of New York criminal statutes and case law relied upon in the prosecution of crimes related to commercial litigation, the investigative bodies which prosecute such white collar crime, the criminal trial process in New York State, and how New York’s system differs from the federal system.

Additional information about the treatise can be found here. 

On Wednesday, November 24, 2010, Principal Robert J. Anello was interviewed on CNBC about the intricacies of determining what insider trading is and what it isn't.

On Wednesday, November 24, 2010, Principal Robert J. Anello was interviewed on CNBC about the intricacies of determining what insider trading is and what it isn't.

After almost nine years of hard fought litigation, on October 28, 2010, the firm obtained a tremendous result fully vindicating its client Kenneth Lipper.  When a hedge fund managed by Mr. Lipper was dissolved in 2002 after it was revealed that the fund’s portfolio manager engaged in a mismarking fraud, Mr. Lipper was named in nearly 20 lawsuits and was accused of committing fraud, acting negligently, and breaching fiduciary duties.  After a 19 day arbitration hearing that concluded in January 2010, a FINRA arbitration panel totally rejected claims brought against Mr. Lipper by the fund’s liquidating trustee and concluded that Mr. Lipper acted appropriately in managing the fund.  In addition, the same FINRA arbitration panel awarded firm clients Mr. Lipper, Lipper & Company, L.P., and Lipper & Company, Inc. more than $15 million in damages, finding that the Trustee was contractually obligated to indemnify them for entirety of the legal fees and expenses they incurred in connection with their successful defense of the 20 actions and investigations arising after the fund’s dissolution in 2002.  On October 28, 2010, the Honorable Shirley Werner Kornreich of the Commercial Division of the New York Supreme Court, New York County issued a 21 page decision confirming the FINRA arbitration award.  The Panel’s decision and Justice Kornreich’s Order represents yet another affirmation of the firm’s long held position that Mr. Lipper acted properly and appropriately in managing Convertibles, that he was a victim of the portfolio manager’s underlying fraud, and that all of the lawsuits brought against him lacked any merit whatsoever.  The Morvillo Abramowitz attorneys representing the Lipper Parties at the FINRA arbitration and the New York state court proceedings included Elkan Abramowitz, Catherine M. Foti, Jeremy H. Temkin, Benjamin S. Fischer, David Austin, David J. Stankiewicz, and Scott Schirick.

For the seventh year in a row, Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C., has been recognized by Chambers & Partners, the British legal directory publisher, in its 2010 USA Guide.  The firm received the highest ranking, Band one, in the Litigation: Specialist Firms in White-Collar Crime & Government Investigations category in New York.  In addition, five attorneys received individual recognition, the highest number of individuals among all firms in this category.

To obtain their results, Chambers USA researchers conduct thousands of in-depth phone interviews with a wide range of lawyers, peers and their clients.

The five attorneys who received individual recognition were Robert Morvillo, Elkan Abramowitz, Lawrence Iason, Robert Anello, and Barry Bohrer.

For over 20 years, Chambers has published the world’s leading guides to the legal profession. With a team of 100 highly qualified full-time researchers, Chambers conducts thousands of interviews with lawyers and their clients worldwide every year.

Once again, Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C., has been recognized by Who's Who Legal, a British legal directory publisher, as Business Crime Defense Firm of the Year for 2010.  This is the fourth time that the firm has been cited by Who's Who in the six years that it has been awarding law firms for their excellence.  In addition, seven of the firm's attorneys were noted for their achievements.  They were Robert Morvillo, Elkan Abramowitz, Paul Grand, Lawrence Iason, Robert Anello, Barry Bohrer, and Richard Weinberg.

Who's Who bases its annual awards on their review of nominations received from thousands of clients and fellow professionals.  The winners were announced in their compendium edition of The International Who's Who of Business Lawyers 2010, which was published this month, and are available to view on their website at http://www.whoswholegal.com/awards/.

SEC’s First Derivatives-Based Insider Trading Case Dismissed in Federal Court

On June 25, 2010, following a three-week trial, Judge John G. Koeltl of the U.S. District Court for the Southern District of New York dismissed all claims against Renato Negrin, a former portfolio manager for Millennium Partners L.P., and Jon-Paul Rorech, a former bond salesman at Deutsche Bank.  Mr. Negrin was represented at trial by a Morvillo Abramowitz trial team led by Lawrence Iason and Linda Fang.

In the SEC’s first-ever insider trading case involving credit default swaps (CDS), the SEC alleged that Mr. Negrin had purchased CDSs following his receipt of material nonpublic information provided by Mr. Rorech concerning a proposed debt restructuring by VNU N.V., a Dutch Media holding company. 

In a 122-page opinion, Judge Koeltl rejected all of the SEC’s allegations against Messrs. Negrin and Rorech, finding that the SEC’s allegations were wholly without merit.  Specifically, the court found that Mr. Negrin had not traded on any inside information, and that neither defendant had acted inappropriately or with any deception.  On the contrary, the court concluded that the defendants’ actions were wholly consistent with prevailing custom and practice in the bond market, and that the overwhelming evidence presented at trial compelled the conclusion that the particular information at issue was neither material nor confidential.  Finding that the SEC’s allegations were entirely unsupported by the evidence, the court ruled in favor of defendants and dismissed all claims against Mr. Negrin in their entirety.

On May 27, 2010, Principal Barbara Moses was elected Vice President of the New York County Lawyers' Association.  Ms. Moses has been a Director of the Association since 2007 and served as the Chair of the Federal Courts Commitee from 2004 through 2006.

In an important decision for prime brokers, on March 25, 2010, a panel of the Eleventh Circuit Court of Appeals affirmed the district court’s dismissal with prejudice of a complaint against our client, Banc of America Securities LLC, in SFM Holdings, Ltd. v. Banc of America Securities, LLC, ---- F.3d -----, 2010 WL 1068230 (11th Cir. 2010).  MAGIAB Principal Robert J. Anello was lead counsel before the district court and argued the Eleventh Circuit appeal on behalf of Banc of America.  The appellant, SFM Holdings, Ltd., was one of nearly 200 hundred investors defrauded by corrupt investment advisors at Shoreland Trading; as part of its arrangement with Shoreland, SFM had opened a prime brokerage account with Banc of America.  A central issue on appeal was SFM's claim that Banc of America owed (and breached) a fiduciary duty to SFM based on the agreements entered into by SFM to open its account and Banc of America's role as a prime broker.  Accepting our arguments, the panel affirmed the district court's judgment, holding that the governing account documents specifically precluded imposition of a fiduciary duty on the bank.  Notably, the majority also explained that traditionally, it is the introducing brokers—those brokers who have a relationship with and provide investment advice to the client—that assume a fiduciary duty to the client; the prime or executing broker—the broker who merely executes securities transactions at the direction of the client or introducing broker—normally does not owe such a duty.

On August 4, 2009, the Honorable Avern Cohn, United States District Court, Eastern District of Michigan, ordered the dismissal, with prejudice, of all charges against our client, Scot McDonald, in Securities and Exchange Commission v. Delphi Corporation, et. al., 2:06-cv-14891-AC-SDP.  Mr. McDonald, the former Controller of EDS Corporation, had been charged by the SEC with aiding and abetting violations of Sections 13(a), 13(b) and 10(b) of the Securities and Exchange Act of 1933, and Rule 10b-5 promulgated thereunder.  These charges stemmed from a fraud allegedly committed by Delphi Corporation and various Delphi employees in 2001.  Throughout the SEC’s investigation and the subsequent litigation, we argued that Mr. McDonald did not aid and abet Delphi’s purported fraud, and did not violate the law in any way.  During discovery, the SEC ultimately concluded that its case against Mr. McDonald should be dismissed.  Thus, on August 3, 2009, the SEC agreed to dismiss all charges against Mr. McDonald. 

On May 15, 2009, Morvillo Abramowitz Principal Robert J. Anello will conduct a CLE program for the New York State Bar Association  at the New York Mariott East Side at 525 Lexington Avenue.  The topic to be discussed is International Practice after the Great Credit Crisis of 2008-2009.  Information regarding the CLE is available here.

On January 29, 2009, in conjunction with ALM Law Journal Newsletters and Law.com, Morvillo Abramowitz Principals Jonathan S. Sack, Stephen M. Juris, Judith Mogul, and Richard D. Weinberg will present a live CLE “webinar” concerning issues that frequently arise when representing employees in connection with internal and governmental investigations.  The topics to be discussed will include the basics of corporate internal investigations, advocacy on behalf of employees and executives with corporate counsel, ethical issues associated with internal investigations and the retention of counsel, and other issues that commonly arise in connection with governmental inquiries.  Information regarding the webinar is available here.

Today’s dismissal of all charges against David Stockman demonstrates what we have been arguing throughout this case:  he is innocent.  When Mr. Stockman was indicted, we said that there was no crime here and that Mr. Stockman would be vindicated.  As we pointed out then, the charges simply did not make sense.  Mr. Stockman would never have jeopardized his reputation by engaging in a scheme to defraud. 

The past few years have been a terrible ordeal for Mr. Stockman.  Fortunately, the U.S. Attorney’s Office for the Southern District of New York was willing to reconsider the case and our arguments, and should be commended for its commitment to justice.  Now, as we predicted, Mr. Stockman, and his reputation, have been vindicated.

In a cover article for its August 2008 edition, UK business magazine ACQ has profiled Morvillo Abramowitz as the “go-to”  firm for white collar defense. The full article may be found here.

On July 14, 2008, Morvillo Abramowitz Principals Robert J. Anello and Catherine M. Foti received the New York City Bar Association’s 2008 Thurgood Marshall Award for Capital Representation. The award is presented annually in recognition of exemplary service to the cause of justice in the United States, and was awarded to Mr. Anello and Ms. Foti for their pro bono representation of an individual on death row. Morvillo Abramowitz also was recognized for supporting its attorneys in their pro bono work.

Morvillo Abramowitz Principals Barbara Moses, Jodi Peikin, Catherine Foti and Judy Mogul appeared in “New York’s Women Leaders in the Law” in New York Magazine.

The section is featured online on New York Magazine’s web site at nymag.com/womenleaders, on the New York Law Journal’s web site at www.nylj.com/womenleaders