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Corporations and securities brief ~ Quattrone asks court to delay start of prison term

[JURIST] In Wednesday's corporations and securities law news, Frank Quattrone, former investment banker at Credit Suisse First Boston, has asked a federal appeals court to let him stay out of prison while he appeals his conviction on obstruction-of-justice charges. Quattrone has been ordered to report to prison October 28 to begin serving an 18-month sentence. Read the indictment against Quattrone here [PDF]. Read more about the background of the Quattrone case here. AP has more.

In other news...

  • As reported earlier on JURIST's Paper Chase, Computer Associates International Inc. agreed Wednesday to pay $225 million in restitution and to an outside monitor of its accounting practices to avoid prosecution in a multibillion dollar accounting scandal. Also, prosecutors expect the company's former general counsel, Steven Woghin, to plead guilty in federal court Wednesday to securities fraud, conspiracy and obstruction of justice. The company's former top executives, Sanjay Kumar and Stephen Richards, are expected to be indicted shortly on securities violations. Bloomberg has more.

  • Also as reported earlier on JURIST's Paper Chase, Fannie Mae has announced the SEC has begun an informal inquiry into the mortgage finance provider based on the Office of Federal Housing Enterprise Oversight (OFHEO) report that Fannie Mae had violated generally accepted accounting principles, tolerated internal control deficiencies, and deferred expenses to meet bonus requirements. Read Fannie Mae's charter act here [PDF]. Read Fannie Mae's filing to the SEC including the announcement of the investigation here [PDF]. The Financial Times has more.

  • Japan’s finance ministry has banned Citibank from participating in auctions of government bonds on September 29. This announcement comes a week after the Financial Services Agency ordered the bank to close its private banking business in Japan for a year. The Financial Times has more.

  • Prosecutors in the first Enron criminal trial said in court that Enron wrongly booked a $12 million in pretax profit because "the company had promised to sell or buy back Merrill Lynch's equity in the barges within six months - meaning the brokerage was never at risk of losing any money and its investment was a loan." AP has more.

  • Interstate Bakeries, maker of Wonder Bread and Twinkies, has filed for bankruptcy court protection amid accounting problems and loss of sales. Read the Interstate press release here. CNN has more.

  • As reported earlier on JURIST's Paper Chase, jury selection began Wednesday in the trial of a former Secret Service ink expert on perjury charges stemming from his testimony in the trial of Martha Stewart. AP has more.

  • The Walt Disney Co. has announced plans to have a new chief executive in place by next June to replace outgoing CEO Michael Eisner. Read a statement from the Board at Disney here. AP has more.
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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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