Here is what we are reading today:
Legal Costs At CitiBank Hit Earnings Amid Regulation Changes And Investigations (DealBook) - Six years after the financial crisis landed Wall Street in a thicket of legal troubles, the world’s biggest banks remain buffeted by a patchwork of international regulators and prosecutors. The latest reminder of their predicament came on Thursday, when Citigroup startled investors with an announcement that it had to lower its third-quarter profit by $600 million because of “rapidly-evolving regulatory inquiries and investigations.” Citigroup reported its results for the quarter two weeks ago, just before the legal development arose.
R.E.I.T. Scandal Could Be Perfect Test For Sarbanes-Oxley (DealBook) - A scandal at one of America’s biggest real-estate investment trusts could be the perfect test for the Sarbanes-Oxley Act. The stock of American Realty Capital Properties tumbled nearly 20 percent on Wednesday after the company said mistakes in its financial statements were intentionally left uncorrected. That sounds tailor-made for a case under the often-ignored law inspired by Enron, WorldCom and other accounting debacles.
Pirate Bay Founder And Accomplice Guilty Of Hacking (RT) - The founder of the Pirate Bay torrent site has been found guilty in “the largest hacking case to date.” Swede, Gottfrid Svartholm Warg, and his Danish co-defendant were accused of hacking and accessing confidential information.
Levittown NY Attorney Charged With Forging Judges Signature (LI Press) - A 51-year-old attorney from Levittown has been accused of forging the signature of a federal bankruptcy court judge. Jeffrey I. Stark was charged Thursday at Central Islip federal court with forgery of the signature of a judge. “Stark violated his ethical obligation to his clients and committed a serious crime which strikes at the foundation of our judicial system,” Loretta Lynch, U.S. Attorney for the Eastern District of New York. “Attorneys are expected to uphold the law, not to violate it.”
CellPhone Passcodes Protected Under 5th Amendment (NBC 29) - A judge has ruled that a criminal defendant cannot be forced give authorities the pass code to his cellphone. The Virginian Pilot reports that Virginia Beach Circuit Judge Steven Frucci issued the ruling this week in the case of David Baust, who is charged with trying to strangle his girlfriend. Prosecutors wanted to search Baust's cellphone for a possible video of the couple's altercation.
Fmr Shipping Chief In Korea Sentenced To 6 Years Prison (Global Post) - A Seoul court on Thursday sentenced the former head of the financially troubled shipping and shipbuilding conglomerate STX Group to six years behind bars for a host of corporate crimes. Kang Duk-soo, who headed the group from 2003 to February 2014, was convicted of diverting funds of STX Heavy Industries Co., a troubled shipbuilder unit, to illegally support other ailing affiliates, mostly STX Construction Co., by cooking accounting books.