White Collar Defense

“My view is that while the law allows the prosecutor to play it close to the vest, it seems that best practice and fairness requires they reveal — to the extent they know — what the crimes are,” said Marc F. Scholl, who served in the district attorney’s office for nearly four decades in both trial and senior investigative roles. “And because it’s a matter of such public interest,” he added of the Trump case, “you really want to show the world you’re not hiding anything.”

Marc Scholl, a former prosecutor in the Manhattan DA's office, said that while Trump had a chance of success, it was more likely that the case would be sent back to state court.

"At the end of the day, New York is not trying to prosecute him for a federal crime or for anything he did in connection with his presidential duties," Scholl said. "But it's certainly a potential delaying tactic."

The United States Supreme Court decided for the first time that foreign sovereigns and foreign-owned entities are subject to criminal prosecution in United States courts, rejecting the contentions of a Turkish state-owned bank that it was immune from prosecution under the Foreign Sovereign Immunities Act (“FSIA”).  

Cristián Francos, partner at Lewis Baach Kaufmann Middlemiss and head of the firm’s Latin America practice, has again been recognized by Who's Who Legal as a global leader in the field of investigations.

According to recent policy announcements, the U.S. Department of Justice is increasing incentives for corporate cooperation to further its goal of prosecuting individuals rather than the corporations where they work.

While the DOJ has long pursued this goal, the recent changes create firm new incentives for corporations to report wrongdoing by their officers and employees.

Adam Kaufmann joined Dan Abrams on NewsNation to discuss the use and credibility of Michael Cohen as a witness in the Trump hush money case.

“The question is, should you prosecute or not,” John Moscow explained. “There’s some thought that falsifying business records is too small a crime. My thought is it is a very small crime. But your choices are to prosecute or not to prosecute, and if the evidence is there, you’ve got to prosecute.”

Marc Scholl, a former prosecutor in the Manhattan district attorney's office, told Reuters that Trump being given an opportunity to testify suggests that the grand jury had heard evidence implicating him in a crime. "The invitation should mean the prosecutor is preparing to seek criminal charges."

The International Bar Association (IBA) has appointed partner Cristián Francos as Co-Chair of its Business Crime Committee for a two-year term.

Adam Kaufmann, who has served in the past as a top executive in the district attorney’s office and is now in private practice, said Pomerantz is exposing himself to “a lot of possible jeopardy from a bunch of different directions.”

Eric Lewis, a lawyer and expert on extraditions, said that Bankman-Fried’s decision to go along with extradition might have been due to his not wanting to spend months in a Bahamian jail, where conditions are notoriously bad. While Bankman-Fried has the legal right to challenge the extradition, prosecutors might view that negatively “when it comes time to look at both bail and a potential sentence.”

Adam Kaufmann and John Moscow, both former financial crimes prosecutors, are quoted in this article on the possibility that a judge will give Allen Weisselberg more jail time than the five months promised as part of his plea deal.

El Departamento de Justicia de los Estados Unidos colocó en el ojo público la actividad de transferencia de dólares sin licencia habilitante en los Estados Unidos. Las repercusiones para la industria financiera de Uruguay fueron tratadas por Cristián Francos y Jean-Jacques Bragard Cooper en el siguiente artículo publicado en el diario El Observador.

Aisha Bembry, managing partner of LBKM's Washington office, was featured in Law.com's "How I Made It" series.

The Lafarge case illustrates the extent companies with operations in high-risk jurisdictions must be aware of increasing ATA-related risk, including the risk of civil litigation.

En una demanda por confiscación de fondos presentada ante una corte del Distrito Sur de Nueva York, los fiscales estadounidenses explicaron porqué el movimiento de esos dólares en su entrada y paso por el país norteamericano sería ilegal.

According to U.S. authorities, the U.S.-based activities of “blue dollar peso exchangers” are illegal, and those exchangers that maintain U.S. bank accounts are subject to asset forfeiture and criminal prosecution. The recent U.S. forfeiture case brought by U.S. authorities in the U.S. District Court for the Southern District of New York against Partners Capital Investment (“PCI”) illustrates intense interest by U.S. authorities in the “blue dollar peso exchange,” and additional U.S. actions should be expected. 

Solomon Shinerock joins LBKM from the Manhattan District Attorney's Office, where he worked in the Major Economic Crimes Bureau. Before that, he was an assistant U.S. attorney in the Northern District of New York.

A senior prosecutor who played a key role in New York’s investigations into former President Donald Trump has moved into private practice.

Solomon Shinerock, who left the Manhattan District Attorney’s Office on Sept. 30, joined litigation boutique Lewis Baach Kaufmann Middlemiss on Tuesday as a partner.

N.Y. Attorney General Letitia James has a solid case against Donald Trump and the Trump Organization, but it could take years for the case to get to trial, former prosecutors say.

As a Manhattan prosecutor, attorney John Moscow handled complicated white-collar criminal investigations. He's been following the public court filings in the AG's probe, and believes the lack of Trump documents is remarkable — and intentional.

Cristián Francos has again been recognized as a global leader in the field of investigations by Who’s Who Legal in its Investigations: 2022 guide.

“Statements made in a civil deposition are admissible in a criminal proceeding against the person who made the statement. That’s why people can invoke their Fifth Amendment protections against self-incrimination at civil proceedings as well as criminal,” said Adam Kaufmann, a partner at the law firm of Lewis Baach Kaufmann Middlemiss who previously served as chief of the Manhattan DA’s investigative division.

Arthur Middlemiss and Cristián Francos secured the return of all funds seized by the U.S. Department of Justice from U.S. accounts maintained by two broker-dealers based in Uruguay and New Zealand, respectively, both of which operated in Argentina. 

The Manhattan District Attorney’s investigation into former President Donald Trump seems doomed, but a little-known New York law is buying time for prosecutors to build a better case against him and convince the hesitant new DA to act—or wait until he’s replaced.

Prosecutors must "go and verify each statement of fact in the return," said John Moscow, who also prosecuted complex economic crimes during his 30 years at the Manhattan DA's office.

"You don't say the return is false until you can prove that its constituent parts, taken together, are false," said Moscow, who is now senior counsel with Lewis Baach Kaufmann Middlemiss. "And that takes time."

“This is bad news for Trump,” said John Moscow. “He can’t say, ‘I had top-level accountants doing this work.”’

Adam Kaufmann, speaking to Fox5's Teresa Priolo, said, "It's a little bit like blood in the water, I would say. There has to be something hard and objective that says: 'This is a problem.' That gives an accountancy -- or perhaps a law firm, in certain situations -- the signal they need to take some kind of adverse action."

Adam Kaufmann joined Dan Abrams on NewsNation Now to discuss New York's ongoing investigation into the Trump Organization.

Lewis Baach Kaufmann Middlemiss PLLC is pleased to announce that John Moscow has been named to the 2021 New York Super Lawyers list. Each year, no more than five percent of the lawyers in each state are selected to receive this honor. In addition, A. Mackenna White has been named to the 2021 New York Rising Stars list. Each year, no more than 2.5 percent of the lawyers in the state are selected to receive this honor.

"The fact that they are having sealed proceedings is consistent with an ongoing grand jury investigation and suggests the district attorney may be considering further charges or defendants," said Adam Kaufmann, a former investigations division chief at the Manhattan District Attorney's Office who is currently a partner with the law firm Lewis Baach Kaufmann Middlemiss.

Weisselberg may now be questioning whether continued loyalty will be rewarded, said John Moscow, a former senior white-collar prosecutor in the Manhattan district attorney’s office. Though still at the Trump Organization, Weisselberg was removed as CFO following the indictment, and he no longer serves as treasurer and secretary for many of the company’s subsidiaries.

“That’s a big change in his life, and if other people at the company are being told not to talk to him because they might be called to testify, that’s a change too,” said Moscow. “If I’m representing someone in that office, I would have to advise my client that someone like him may flip and may be wearing a wire.”

“This case had many flaws,” said Angerame’s lawyer Anthony Capozzolo. “The clients had their reputations tarnished in a way that simply was not fair or just.

“We are thankful for this decision, and the clients are eager to move on with their lives.”

In what defense attorneys characterized as a rare outcome for a government corruption indictment, a Manhattan judge dismissed charges that the New York Attorney General’s office brought against a former World Trade Center electric operations manager and two subcontractors.

[Judge] Wiley dismissed the full indictment based on testimony before a grand jury, which Lewis Baach Kaufmann Middlemiss partner Adam Kaufmann said is a not a common outcome for a bribery indictment filed by the AG. “Indictments don’t get tossed on grand jury minutes to begin with,” Kaufmann said. He added: “This was one of the most deeply flawed cases I have ever seen.”

"The most initial impact on Trump himself will be financial," Anthony Capozzolo, a former prosecutor in the Manhattan District Attorney's office and a former federal prosecutor in Brooklyn, told Insider. "One of the biggest collateral effects of a company being indicted is its banking relationships and other business relationships because, immediately, all of those companies have obligations, especially banks that are highly regulated. They are obligated to not do business with companies breaking the law."

Former President Donald Trump's company and its Chief Financial Officer Allen Weisselberg were indicted on 15 criminal charges Thursday for allegedly evading about $900,000 in taxes with the help of the Trump Organization and its payroll corporation. Yamiche Alcindor reports with Adam Kaufmann, former prosecutor and chief of the investigative division in the Manhattan district attorney's office.

Adam Kaufmann appeared on ABC News Prime to discuss the Trump Organization indictment and what might be next in the prosecution.

Adam S. Kaufmann, who served as chief of the office's investigative division, said that "it really suggests they've reached a point in their investigation where the district attorney believes there's evidence of a crime. You don't empanel a special grand jury unless you think you have a viable case."

Adam Kaufmann, who served 18 years as a prosecutor in the Manhattan district attorney’s office, appeared on MSNBC's The Last Word to discuss why witnesses are granted immunity when testifying before a grand jury in New York and what to expect of the grand jury in the criminal probe of Donald Trump.

John Moscow, who headed the DA office’s complex crimes unit under Vance’s predecessor, said Trump’s lawyers will take aim at every aspect of a prosecution, asking even whether unauthorized persons attended grand jury sessions.

Trump lawyers may invoke the five-year statute of limitations on conduct that occurred before 2016, saying some acts can’t be prosecuted, Moscow said. The DA could respond that Trump’s absence from New York during his presidency extended the period under scrutiny to 2012 -- a back-and-forth that will chew up more courtroom time.

John Moscow, a former top assistant to Manhattan District Attorney Robert Morgenthau, who competed with Giuliani for big cases and headlines in the 1980s, said the latter’s former positions more likely raised the bar for the prosecutors who sought the warrant and the judge who signed it.

“This is a search warrant for the home of the former mayor of New York City, a former high-ranking Justice Department official, and they’re saying there’s now probable cause to believe there’s evidence of a crime, that evidence exists, and it’s at his home,” said Moscow, who’s now in private practice.

John Moscow was quoted in a Bloomberg article on the U.S. Supreme Court's refusal to block a subpoena by the Manhattan District Attorney for Donald Trump's tax returns and other financial records.

“Now they have the evidence that the accounting firm and the corporation have,” said John Moscow, a former chief prosecutor for serious economic crimes at the Manhattan district attorney’s office. “At this point, Trump’s position has to be that he didn’t do anything wrong, because if he did, they’d find it.”

Adam Kaufmann was quoted in an analytical piece on Manhattan District Attorney Cyrus Vance’s investigation into Trump and his organization. 

LBKM partner Cristián Francos has been appointed as Senior Vice Chair of the IBA’s Business Crime Committee.

Cristián Francos been recognized as a Global Leader in Who’s Who Legal: Investigations 2021.  Who’s Who Legal is one of the world’s leading directories of legal practitioners.

Spanish newspaper El Mundo reported on a ruling by Spain's Constitutional Court holding that the imprisonment of Nervis Villalobos, a former Venezuelan official, was unconstitutional. Partner Manuel Varela represented Mr. Villalobos in the appeal.

Adam Kaufmann appeared on WNYC's "Trump, Inc." podcast to discuss what the Manhattan DA's investigation could mean for Trump.

This article sets out the basic process for obtaining extradition to the United States and reviews certain recent cases that suggest that the United States is trying to leverage its political power to bring defendants to the United States either to fulfill political agendas or where the United States’ interest is tangential at best in view of the demonstrable interest of other countries.

Six LBKM professionals have been selected to the 2019 New York and Washington, DC Super Lawyers lists - an honor limited to 5 percent of the lawyers in each state. In addition, one LBKM professional has been selected to the 2019 New York Rising Stars list. 

Former Assistant U.S. Attorney Anthony Capozzolo — who headed a tax fraud case against former U.S. Rep. Michael Grimm and other high-profile investigations — was retained by the city when Nassau County District Attorney Madeline Singas launched an investigation last year, in conjunction with an audit into the city’s payout practices by State Comptroller Tom DiNapoli’s office. 

Colleges and universities must recognize the risk of potential corruption in their admissions process, and build intelligent controls to guard against fraud. Lewis Baach’s Arthur D. Middlemiss explains that schools should employ cost-efficient compliance measures and warns of the dangers in failing to do so.

A government coverup of the Cohen reports “makes no sense,” said Aaron Wolfson, a lawyer who previously oversaw suspicious activity reporting for JPMorgan Chase. “I find that laughable.”

Mr. Francos was quoted in the article saying, “If someone received a bribe, then someone had to have paid the bribe,” he said. “Companies should be well prepared [to be investigated].”  He continued to say, many Argentinian companies that are contracted by the state do not have established policies in terms of compliance and integrity, and will likely rush to put together new compliance programmes. Francos said “this shock could be good” to improve standards quickly.  “This [scenario] creates a problem for companies, but also an opportunity that will bring change to Argentina’s business culture,” he said.

On Monday, Dec. 12, the U.S. Supreme Court issued a unanimous decision clarifying subsection 1 of the bank fraud statute, 18 U.S.C. §1344, in Shaw v. United States. Notwithstanding a veritable ocean of case law, regulations and statutes that delineate the difference between a bank’s property and that of its customers, the court quickly pushed such technical arguments to the side, holding that — for the purposes of the bank fraud statute — there is no practical difference between targeting a bank customer’s funds and targeting the bank’s own funds.

“The court’s decision is in keeping with the long-standing principle that a fraud can be prosecuted under the criminal law even if the victim does not suffer a loss — which is an important distinction between criminal fraud and civil fraud,” said A. Katherine Toomey, a partner at Lewis Baach PLLC.

For two years, stock traders and the attorneys who represent them said the law surrounding insider trading was a muddle, with no one knowing what exactly is or isn’t legal.
The U.S. Supreme Court Dec. 6 said it had ‘‘easily’’ settled the question (Salman v. United States, 2016 BL 404795, U.S., No. 15-628, 12/6/16).

‘‘Going forward, even remote tippees of inside information are at risk if the government can demonstrate that the defendant knew he was trading on inside information and the chain of disclosure is sufficiently close, even if no money changes hands.’’ Eric Lewis, Lewis Baach PLLC

Both the speed and the unanimity of the decision sent a strong message re-affirming existing insider trading prosecutions, according to Eric Lewis, a partner at Lewis Baach, a Washington DC law firm specializing in financial crimes.

"It was somewhat surprising that the Supreme Court took this case," Lewis told ValueWalk, noting that it had been two decades since the high court took up an insider trading case.

Mr. Francos is mentioned in the article.

Cristián Francos discussed the operation of Money Service Businesses without a license, US government enforcement and prosecution, and the impact for local financial actors.

Cristián Francos is Senior Vice Chair of the IBA’s Business Crime Committee and will be co-chairing “The transfer of criminal liability in M&A” session on November 3rd.

Adam Kaufmann served as a panelist for this CLE on federal and local enforcement trends in the construction industry.

Adam Kaufmann co-chaired the panel "Covid-19 fraud: law enforcement and where we are now."

The United States needs to consider carefully whether its treaty advantages and broad jurisdictional statutes should be aggressively used to bring foreign defendants to the United States when the American interest is limited and when other countries may have a greater interest in applying their own statutes, and their own penalty structures.

The Manhattan District Attorney’s investigation has nothing to do with federal law, public acts, or violations involving the political or electoral process. Moreover, as possible charges brought by a sovereign state, they cannot be pardoned by an outgoing President.

The increasing global focus on corruption has led to stronger international cooperation and coordination among regulators, resulting in landmark enforcement actions in new jurisdictions. [...] This panel offered private and public sector prespectives on the latest enforcement trends, the key elements of the new anti-corruption laws, and what all this means for businesses and individuals involved in transnational corruption cases.

Mr. Liston, an attorney for Rogicki in both the SEC and state court matters, told Law360 on Friday that his client has "accepted full responsibility for his actions.", an attorney for Rogicki in both the SEC and state court matters, told Law360 on Friday that his client has "accepted full responsibility for his actions."