Business Crimes Hotline

According to the DOJ, the defendants admitted that they entered into an unlawful agreement in which Ellef was paid by Tomasso in exchange for providing confidential information to Tomasso, fixing selection votes to send state construction projects to Tomasso's company, and steering other work to a company owned by Tomasso's son, LF Design, LLC. Both companies have also agreed to plead guilty. The four defendants will make restitution to the state in the amount of $1 million. Ellef and Tomasso each face up to 10 years in prison.

Former Merrill Lynch Broker Pleads Guilty to Mail Fraud

The U.S. Attorney's office announced that Kevin Lent has admitted that while working as a broker for Merrill, Lynch, Pierce, Fenner & Smith, he devised a scheme to defraud his own family members of over $ 420,000. Lent, who acted as a financial adviser for his family members, allegedly made fraudulent transfers between various family accounts, eventually transferring the cash to his own account or his wife's. Lent concealed the transfers by causing the addresses on the accounts to be changed so that the rightful owners did not receive the statements reporting the transfers. He faces up to a 20-year prison term.

DISTRICT OF COLUMBIA

Department of Justice Establishes Procedures for Seeking Privilege Waivers

In an Oct. 21, 2005 memorandum, Acting Deputy Attorney General Robert McCallum reiterated that one of the nine factors the government considers in determining whether to charge a corporation or business with a crime is the corporation's willingness to cooperate with investigators, including whether the corporation has waived its corporate attorney-client privilege and work product protections. In order to ensure that appropriate prosecutorial discretion is exercised in seeking such waivers, McCallum directed that the Heads of all DOJ components and all U.S. Attorneys require their federal prosecutors to request approval before seeking such waivers. The memorandum does not dictate at what level waiver requests must be approved, but suggests that approval could come from the U.S. Attorney “or other supervisor.” McCallum also directed that the United States Attorneys' Manual be amended to reflect this policy.

GEORGIA

CEO of Biotech Company Convicted of Securities Fraud, Perjury

The U.S. Attorney for the Northern District of Georgia has announced that Timothy Moses, the former Chairman, CEO, and President of International BioChemical Industries, Inc. (IBCL), has been convicted of securities fraud and perjury.

CONNECTICUT

Connecticut State Official and Contractor Plead Guilty to Bribery, Tax Charges

Federal prosecutors in Connecticut have announced that Peter Ellef, the former Co-Chief of Staff to Connecticut Governor John Rowland, and William Tomasso, President of Tunxis Management Company, have pled guilty to conspiracy to commit federal bribery and conspiracy to defraud the IRS.

According to the DOJ, the defendants admitted that they entered into an unlawful agreement in which Ellef was paid by Tomasso in exchange for providing confidential information to Tomasso, fixing selection votes to send state construction projects to Tomasso's company, and steering other work to a company owned by Tomasso's son, LF Design, LLC. Both companies have also agreed to plead guilty. The four defendants will make restitution to the state in the amount of $1 million. Ellef and Tomasso each face up to 10 years in prison.

Former Merrill Lynch Broker Pleads Guilty to Mail Fraud

The U.S. Attorney's office announced that Kevin Lent has admitted that while working as a broker for Merrill, Lynch, Pierce, Fenner & Smith, he devised a scheme to defraud his own family members of over $ 420,000. Lent, who acted as a financial adviser for his family members, allegedly made fraudulent transfers between various family accounts, eventually transferring the cash to his own account or his wife's. Lent concealed the transfers by causing the addresses on the accounts to be changed so that the rightful owners did not receive the statements reporting the transfers. He faces up to a 20-year prison term.

DISTRICT OF COLUMBIA

Department of Justice Establishes Procedures for Seeking Privilege Waivers

In an Oct. 21, 2005 memorandum, Acting Deputy Attorney General Robert McCallum reiterated that one of the nine factors the government considers in determining whether to charge a corporation or business with a crime is the corporation's willingness to cooperate with investigators, including whether the corporation has waived its corporate attorney-client privilege and work product protections. In order to ensure that appropriate prosecutorial discretion is exercised in seeking such waivers, McCallum directed that the Heads of all DOJ components and all U.S. Attorneys require their federal prosecutors to request approval before seeking such waivers. The memorandum does not dictate at what level waiver requests must be approved, but suggests that approval could come from the U.S. Attorney “or other supervisor.” McCallum also directed that the United States Attorneys' Manual be amended to reflect this policy.

GEORGIA

CEO of Biotech Company Convicted of Securities Fraud, Perjury

The U.S. Attorney for the Northern District of Georgia has announced that Timothy Moses, the former Chairman, CEO, and President of International BioChemical Industries, Inc. (IBCL), has been convicted of securities fraud and perjury.