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Fmr Qualcomm Exec Pleads Guilty to Insider Trading (Bloomberg) - A former Qualcomm Inc. (QCOM) executive pleaded guilty to using insider information to make about $1 million in profit from stock trades in 2010 and 2011, the Justice Department said. Jing Wang, 51, who was president of global business operations for Qualcomm, entered the plea today in federal court in San Diego, the department said in a statement. He bought the company’s stock based on nonpublic information that Qualcomm would boost its dividend in 2010 and before record earnings were announced in 2011, according to the statement.
The Difficulty In Holding Executives Accountable (DealBook) - It is difficult to determine who is responsible for a corporate decision when authority is dispersed throughout an organization, which means that no one can be held personally accountable for violations. A string of recent cases involving large banks, like the Justice Department’s settlement last week with Citigroup that Attorney General Eric H. Holder Jr. said involved “misconduct that was egregious,” have not included charges against any individuals for violating the law. General Motors seems to have elevated the inability to hold senior officials accountable for corporate misdeeds to an art form.
Wall Street's New Enforcers Aim To Muzzle Whistle Blowers (DealBook) - Welcome to Wall Street, where the unwritten rule has always been that you don’t talk about illegal or unethical activities with law enforcement or regulatory authorities. Of course, this type of code of silence is not new. What is new is that this corporate omerta is being enforced by lawyers wielding gag orders.
Workers At Caterpillar Unit Say Repairs Were Bogus (WSJ) - Ten thousand railcars a month roll into this sprawling port complex in Los Angeles County. While here, most are inspected by a subsidiary of Caterpillar Inc. CAT +0.05% When problems are found, the company repairs the railcars and charges the owner. Inspection workers, to hear some tell it, face pressure to produce billable repair work. Some workers have resorted to smashing brake parts with hammers, gouging wheels with chisels or using chains to yank handles loose, according to current and former employees. In a practice called "green repairs," they added, workers at times have replaced parts that weren't broken and hid the old parts in their cars out of sight of auditors. One employee said he and others sometimes threw parts into the ocean.
Fired Broward Co Lieutenant Gets 5-Years Related To Rothstein Ponzi Scheme (Sun Sentinel) - Fired Broward Sheriff's Lt. David Benjamin was sentenced to five years in federal prison Monday for acting as Scott Rothstein's law enforcement muscle. He was handcuffed behind his back and taken into custody in the courtroom — about three feet from Marcy Romeo, a woman whose illegal arrest on trumped-up drug charges he ordered in 2009. "I think it's important that Ms. Romeo see the defendant taken into custody," U.S. District Judge James Cohn said as he ordered that Benjamin begin serving his prison term immediately.
Fmr Evercore Group Exec Pleads For Lower Prison Term On Insider Trading Charges (Bloomberg) - Former Evercore Group LLC investment banker Frank Perkins Hixon Jr., who pleaded guilty to insider trading prosecutors said was intended to generate funds to pay child support, asked for a prison term of less than four years. Hixon said today his trading was intended to ensure he remained in contact with his child, conceived during a two-year extramarital relationship with Destiny Robinson, and didn’t stem from greed.
Bus Kickbacks Land School Board Member In Prison For 10 Years (ENews Park Forest) - A former North Chicago school board member was sentenced July 16 to 10 years in federal prison for receiving at least $566,000 in kickbacks from three co-defendants who controlled several different transportation companies that received more than $21 million in student bus contracts over nearly a decade. The defendant, GLORIA HARPER, 63, formerly of North Chicago, pleaded guilty last October to one count each of wire fraud and filing a false federal income tax return. Harper admitted that between 2001 and 2010 she schemed to deprive the approximately 4,000-student North Chicago Community Unit School District 187 (NCSD) of her honest services. Harper instigated and orchestrated the fraud scheme with four co-defendants, including Alice Sherrod, the district’s former transportation director. The three co-defendants funneled kickbacks totaling at least $800,000 to Harper and Sherrod and made more than $9.6 million in profits.
Prosecutors Want 3-Years Prison For Frenchman Tied to BSGR Bribery Probe (Bloomberg) - A Frenchman with ties to billionaire Beny Steinmetz and his BSG Resources Ltd. should be sentenced to more than three years in prison for interfering with a probe of bribes allegedly paid to mine the world’s biggest untapped iron-ore deposit, the U.S. said. Prosecutors charged Frederic Cilins, 51, with trying to pay Mamadie Toure, the fourth wife of Guinea’s late President Lansana Conte, to lie to investigators and to turn over documents for Cilins to destroy. Cilins pleaded guilty in March to a single count of obstructing a U.S. investigation.
Jail Switches To Old-School Stripes Because Orange Is Too Cool (NY Post) - A Michigan sheriff says he’s trading orange jumpsuits for black-and-white stripes as the new attire for his jail inmates in part due to pop culture. Saginaw County Sheriff William Federspiel tells The Saginaw News that all-orange jumpsuits are increasingly viewed as fashionable as they’re seen on TV in places such as the Netflix prison show “Orange Is the New Black.”