Here is what we are reading today:
Insider Trading Case Mishandled In U.K., Story of Carl Exprey (Forbes) - On February 26, 2013, Carl Esprey was excited to close on his first home in the suburbs of London. Born in South Africa, he had started in the oil industry in east Africa, worked in the mining industry, did some mergers and acquisition work for BHP Billiton BHP +0.87%, then took a position as an analyst with GLG Partners Inc. in London where he became an analyst in 2008. In June 2010 he was named asset manager in a GLG fund specializing in mining and related sectors within GLG’s European Long Short Fund (ELSF). It was a successful rise in business built on experience and industry knowledge … and it would all come crashing down.
Fmr Dewey & LeBoeuf Partners Arrested For Using Old Accounting Tricks (Bloomberg) - Three former executives at Dewey & LeBoeuf LLP, once the No. 3 legal adviser to banks handling merger deals, were charged with a “blatant” $200 million fraud that spurred the largest law firm bankruptcy in history. The three, including the chairman, executive director and chief financial officer, were accused of using accounting gimmicks similar to those that sent top executives at WorldCom Inc. and Tyco International Ltd. to prison a decade ago. Authorities cited e-mails in which the men referred to “fake income,” “cooking the books” and “accounting tricks.”
Two Banks Suspend Traders Amid Currency Investigation (DealBook) - Two more banks have suspended employees in the latest escalation of an investigation into potential manipulation of the $5 trillion-a-day foreign exchange markets, according to people with knowledge of the matter. Bank of America Merrill Lynch has placed Joseph Landes, the head of spot foreign exchange trading in Europe, on leave, while BNP Paribas has suspended Robert de Groot, its head of spot currency trading, according to the people, who spoke on condition of anonymity because they were not authorized to speak publicly.
JPMorgan's Stonewalling In Madoff Investigation (DealBook) - Attorney-client privilege and protection for attorney work product are often seen as the core of the relationship of trust between lawyers and their clients. But that shield of confidentiality can be enormously frustrating in an investigation of possible wrongdoing because it puts a wall around potentially valuable evidence. Earlier this week, DealBook reported on a decision by the Justice Department to deny financial regulators’ request to try to force JPMorgan Chase to disclose information gathered by the bank’s lawyers on its ties to Bernard L. Madoff’s firm. That decision highlights the delicate balance the government faces in respecting the protection given to communications between lawyers and clients and the need to obtain information about possible violations.