Prosecuting Energy Trading Fraud under the CEA
April 01, 2004
In the aftermath of Enron's collapse, attention turned to the accounting and other practices of energy companies. Numerous investigations and suits have been brought against traders and energy companies involved with supplying power to California and elsewhere during the 2000-2001 energy crisis. The government has focused on such practices as "round-trip trades," in which energy companies entered into pre-arranged transactions, lacking market risk, to inflate reported trading volumes. Federal prosecutors in California and Texas have charged individuals with causing inaccurate or fictitious trades to be reported to trade journals.
In The Courts
April 01, 2004
The latest on what's happening in the courts.
Internal Controls: Cure-all or Snake Oil?
April 01, 2004
Internal controls" have been touted for years as the cure-all for corporate ills. Why, then, are we bombarded with daily revelations of abuses crippling corporations around the globe?
Can You? Should You? Must You?
April 01, 2004
As general counsel of a small public company, you discover that, for 2 years, a department head approved sending false invoices to customers, resulting in profits of at least $2 million. Although it stopped a year ago and is well concealed, the practice was intentional, and a half-dozen current employees were involved. You fear that the false invoices constitute at least mail and wire fraud. Moreover, if the victims find out, they might sue. What do you do?
Depreciating Assets Online
April 01, 2004
The Internet may be destroying your most valuable asset ' whether you know it or not. Day in, day out, your reputation and brand image may be deteriorating, simply by being part of the Net's price-cutting bazaar. This depreciation occurs when online resellers aggressively promote discounts on branded products ' without the brand owner's consent or awareness. It's a problem for your company because brand image may have no meaning in a world dominated by advertisements touting the lowest prices or discount merchandise.
Applying the EU's Data Protection Law
April 01, 2004
Given the ever-increasing amount of data that is collected and the sensitivity surrounding the use of personal data for market research and e-commerce purposes, Web site owners need to be aware of how they use the information they have collected and their obligations to the individuals concerned. In Europe, the European Union (EU) Data Protection Directive 1995 (Directive) aims to provide a working balance between the needs of data users and the public by facilitating and encouraging the free movement of personal data, while at the same time respecting the fundamental rights and freedoms of individuals ' notably their right to privacy. The Directive is intended to harmonize the position in European member states that, in the past, afforded different levels of protection to individuals. In particular, the Directive gives national regulators powers to control what type of data can be processed abroad and allows them to halt exports of personal data to countries deemed not have adequate protection, such as the United States.
Best Practices for e-Mail Filtering
April 01, 2004
Particularly during the last 2 years, the onerous task of filtering e-mail messages has grown to become a business and operational necessity ' largely because of the influx of spam, as well as regulations and legislation mandating retention of e-communications such as e-mail and, increasingly, instant messages. Coupled with the traditional reasons for filtering ' malicious code attached to or embedded within the message, and inappropriate or sensitive message content ' filtering technologies and the market are experiencing radical change. This shift makes purchasing and implementation decisions difficult, but e-commerce enterprises, especially new and fledgling ones, must be on guard against attack, whether inadvertent or deliberate, and they must meet regulatory requirements.
Developments of Note
April 01, 2004
Recent developments in e-commerce law and in the e-commerce industry.
A Patch in Time Saves Nine: Liability Risks for Unpatched Software
April 01, 2004
Computer security issues are commanding rapidly increasing attention from companies, due to increases in both targeted attacks from hackers, and Internet viruses and worms that affect numerous computer systems simultaneously. For both types of attacks, an important line of defense for a company is to make sure that its computers run only updated software, including the use of "patches" to repair identified security holes. Computer security experts have long recommended prompt installation of patches, invoking the old saw that "a stitch in time saves nine." This article suggests that risks of legal liability for companies that do not apply security patches promptly are significant and increasing.
