Digital Commons Network^™

Towards A Market For Bank Safety, Chris Jay Hooofnagle

Loyola Consumer Law Review

Imagine shopping for a car in 1960. Safety is important to you. How do you assess a car's performance in surviving a crash? What tools were available then to take an informed decision?

The modern consumer of financial services is in a similar position as the car shopper of the z96os. How does the modern consumer choose a bank that is relatively safe from identity thieves and other malicious individuals? Perhaps she chooses the larger institution, because it has more resources to address fraud. Or perhaps a smaller institution offers more protection, because it is more obscure. There is no …

"Unfit To Serve" Post-Enron, Regina F. Burch

Valparaiso University Law Review

No abstract provided.

Corporate America Fights Back: The Battle Over Waiver Of The Attorney-Client Privilege, Michael L. Seigel

UF Law Faculty Publications

This Article addresses a topic that is the subject of an on-going and heated contest between the business lobby and its lawyers, on the one side, and the U.S. Department of Justice on the other. The fight is over federal prosecutors' escalating practice of requesting that corporations accused of criminal wrongdoing waive their attorney-client privilege as part of their cooperation with the government. The Department of Justice views privilege waiver as a legitimate and critical tool in its post-Enron battle against white collar crime. The business lobby views it as encroaching on corporations' fundamental right to protect confidential attorney-client communications. …

Parallel Proceedings In The Post-Enron Era: The Duty To Warn And The Case For Abolishing The Government Misconduct Test, Peter N. Downing

Catholic University Law Review

No abstract provided.

Codes Of Ethics And State Fiduciary Duties: Where Is The Line?, Z. Jill Barclift

Faculty Scholarship

The important function of disclosure under federal securities laws and regulations, and the role of management in running the affairs of the corporation consistent with state fiduciary principles have a history of discord. The recent mandates of the Sarbanes-Oxley Act (“SOX Act” or “SOX”), and the Security and Exchange Commission’s (“SEC”) implementing regulations continue to increase the disclosure obligations of public companies. This article examines the implementation of code of ethics requirements under SOX. It examines the SEC’s regulations, which implement SOX requirements on the disclosure of codes of ethics, and self-regulatory agency (“SRO” or “listing agency”) rules on codes …

Computer Crimes & Criminals, Bethany Hart

Senior Seminars

No abstract provided.

Evaluating The Mission: A Critical Review Of The History And Evolution Of The Sec Enforcement Program, Paul S. Atkins, Bradley J. Bondi

Fordham Journal of Corporate & Financial Law

No abstract provided.

An Unholy Alliance: Perceptions Of Influence In Insurance Fraud Prosecutions And The Need For Real Safeguards, Aviva Abramovsky

Journal of Criminal Law and Criminology

No abstract provided.

Fraud Not On The Market: Rebutting The Presumption Of Classwide Reliance Twenty Years After Basic Inc. V. Levinson, Matthew L. Mustokoff

UC Law Business Journal

This article explores a wave of recent federal court decisions addressing the applicability of the "fraud-on-the-market" presumption of reliance in securities fraud cases at the class certification stage. In the two decades since the US Supreme Court first recognized the fraud-on-the-market doctrine in Basic, Inc. v. Levinson, the district and circuit courts have taken somewhat divergent approaches to the question of classwide reliance. The most recent decisions, however, mark an emerging trend, one which signifies heightened judicial scrutiny - in many cases, going beyond the pleadings and involving extensive fact-finding and expert analysis. Among the decisions discussed are the Second …

An Analysis Of Networking Between Top Executives Of Companies Suspected Of Backdating Stock Options, Rebecca Kin-Ming Lo

Honors Theses

"More than 100 companies are under investigation for options backdating... If options backdating problems are found at more companies, Congress may be driven to act. ” - Brian Cleaiy (Cleary 2007). The purpose of this thesis is to analyze how the practice of backdating employee stock options has become so widely used. The first hypothesis for this research is that networking between executives and board members of corporations has caused the idea of backdating employee stock options to spread. The second hypothesis is that particular auditing firms are more likely than others to audit corporations accused of backdating employee stock …

Sarbanes-Oxley, Kermit The Frog, And Competition Regarding Audit Quality, Matthew J. Barrett

Journal Articles

The regulatory scheme after Sarbanes-Oxley has significantly improved public company audits in the United States, or at least has demonstrated the potential to do so, but the obligation to preserve client confidentially still prevents auditors from competing for new clients on the basis of audit quality. This paper suggests a simple way for the SEC to facilitate such competition within the existing regulatory framework. The SEC should require issuers and registrants to disclose whether their independent audits uncovered any financial fraud and, within specified ranges, the number and amount of all audit adjustments incorporated into the financial statements filed with …

Are Leveraged Buyouts A Form Of Governance Arbitrage?, Dale A. Oesterle

Brooklyn Journal of Corporate, Financial & Commercial Law

No abstract provided.

The Impact Of Corporate Governance On The Choice Of Transfer Pricing Methods In China, Xue Han

Lingnan Theses

Recent scandals involving related party transactions (RPTs) have attracted researchers’ and governments’ attention. Because imperfections exist in the legislation of RPTs, business groups might abuse transfer pricing of such transactions for certain purposes. These purposes include earnings management of listed companies that seek to attract investors and profit shifting from subsidiaries to parent companies. This study investigates the impact of corporate governance on the choice of transfer pricing methods in China.

I classify transfer pricing methods into two major groups (i.e., market-based and cost-based methods). I hypothesize that companies with weak corporate governance are more likely to use cost-based pricing …

Class Action Criminality, Lisa L. Casey

Journal Articles

This paper examines the criminal prosecution of Milberg Weiss, formerly the most successful plaintiffs’ securities class action firm in the country, for allegedly making undisclosed incentive payments to class representatives. In particular, the article examines the government’s primary charge - that the firm’s practice violated the “honest services” theory of mail and wire fraud. The government’s application of this theory presumes a fiduciary relationship between the class representatives and the class which has never been clearly delineated and, indeed, is against the weight of case law and the realities of class action litigation.

The Article proceeds on two different levels. …

Rediscovering Board Expertise: Legal Implications Of The Empirical Literature, Lawrence A. Cunningham

GW Law Faculty Publications & Other Works

This paper reviews and draws insights from recent empirical research in financial accounting on the value of director expertise for financial reporting quality. Among important consequences of Sarbanes-Oxley is an increase in the percentage of accounting experts on boards of directors, particularly on audit committees.

The research reviewed here documents the value of this expertise in promoting financial reporting quality measured in terms of "accounting earnings management" (artificial bookkeeping manipulations). These findings contrast with well-known evidence showing little value arising from director independence.

The research holds numerous implications and raises important questions, including the following:

1. It shows that accounting …

International Trafficking In Persons: Suggested Responses To A Scourge Of Humankind, Franklyn M. Casale

Intercultural Human Rights Law Review

"International Trafficking in Persons: Suggested Responses to a Scourge of Humankind", a statement presented by Rev. Monsignor Franklyn M. Casale (St. Thomas University President) to the Distinguished Members of the United States House of Representatives Committee on Foreign Affairs.

New Legal Frontier: Mass Information Loss And Security Breach, Chad Pinson

SMU Science and Technology Law Review

No abstract provided.

Data Mining Techniques In Fraud Detection, Rekha Bhowmik

Journal of Digital Forensics, Security and Law

The paper presents application of data mining techniques to fraud analysis. We present some classification and prediction data mining techniques which we consider important to handle fraud detection. There exist a number of data mining algorithms and we present statistics-based algorithm, decision treebased algorithm and rule-based algorithm. We present Bayesian classification model to detect fraud in automobile insurance. Naïve Bayesian visualization is selected to analyze and interpret the classifier predictions. We illustrate how ROC curves can be deployed for model assessment in order to provide a more intuitive analysis of the models.

Business Risk In Early Design: An Approach, Rahul Basavaraj Patil

Masters Theses

"The Business Risk in Early Design (B-RED) method is a tool used to determine the potential risks in business, in the early business development stages. In order to launch a successful business in today's competitive market environment, the business should equip itself to face the risks involved in business. If the potential risks are identified even before the launch of the business, then there is an opportunity to avert risks with little or no impact to the budget and schedule. The B-RED method presented in this thesis helps entrepreneurs and people with little or no experience in business to identify …

Louis Aragon And Pierre Drieu La Rochelle: Servility And Subversion, Oana Carmina Cimpean

LSU Doctoral Dissertations

This dissertation addresses the use of literature in support of political ideologies, starting from the cases of Louis Aragon and Pierre Drieu La Rochelle. Aragon and Drieu wrote extensively about man’s alienation in the modern world and, more importantly, about the possibility of overcoming that alienation. Both argued for the creation of a new man who could erect a new world on the ruins of the old. Though Aragon was a communist and Drieu a fascist, they shared an apocalyptic view of the world and believed themselves to be living in the last stage of history, the prelude to a …

Prosecuting Elder Abuse: Setting The Gold Standard In The Golden State, Arthur Meirson

UC Law Journal

This Note proposes amending California's elder abuse law. Currently, California Penal Code sections 368(b) and (c) allow the prosecution of any person who willfully causes or permits a person they know to be an elder or dependent adult "to suffer, or inflicts thereon unjustifiable physical pain or mental suffering." The failing of this law is its focus on the subjective experience of the elder or dependent adult victim. Because the law only allows punishment where the victim suffers or experiences unjustifiable physical pain or mental suffering, there are numerous circumstances that allow a perpetrator of abuse to escape prosecution. These …

Foreword, Corporate Governance Five Years After Sarbanes-Oxley: Is There Real Change, Faith Stevelman

Articles & Chapters

No abstract provided.

Global Finance, Business And Human Rights, Faith Stevelman

Articles & Chapters

Global Finance, Business and Human Rights: With Commentary on Backer's Views on the 2008, Protect-Respect-Remedy Framework Presented to the United Nations Human Rights Council

Of Breaches Of The Peace, Home Invasions, And Securities Fraud, A. Christine Hurt

Faculty Scholarship

No abstract provided.

The Phantasm Of Atm Withdrawal, Nattakant Utakrit

Australian Information Security Management Conference

Despite the stringent legislation and increased enforcement aimed at combating financial crime, fraud using cash machines remains a public concern. The problem of ATM fraud is happening on a global scale and the ramifications have been felt in Australia. This paper highlights the stratagems of financial crime, in particular of ATM fraud. The abuse of ATMs with intelligent methods used by perpetrators will be discussed. At the same time, the paper will present some global cases of ATM fraud. Finally this paper will illustrate countermeasures and security methods, such as biometrics and premises protections of banks, financial institutions and customers, …

Security Issues Within Virtual Worlds Such As Second Life, Chia Yao Lee, Matthew Warren

Australian Information Security Management Conference

The advancement in Internet and bandwidth has resulted in a number of new applications to be developed. An area of advancement has been in the development of virtual worlds, where people can interact together via virtual characters. Virtual World systems have been so complex that virtual lives can be lived, including all aspect of life such as education, commerce, social activities etc. Not surprisingly, the problems that exist in the real world such as theft, fraud, vandalism and terrorism, also exist in the virtual worlds. The more developed these virtual worlds become the greater the breaches of security will be …

Betting On The Wrong Horse: The Detrimental Effect Of Noncompliance In The Internet Gambling Dispute On The General Agreement On Trade In Services (Gats), Kathryn B. Codd

William & Mary Law Review

No abstract provided.

The Competing Paradigms Of Securities Regulation, James J. Park

Duke Law Journal

Although the securities industry is primarily regulated by specific rules, it is also governed by general principles. When conduct violates a rule, the regulatory response is obvious-enforce the rule. The issue is more difficult when conduct does not violate a rule but violates a principle. A regulator can excuse the conduct on the ground that the law is unclear and prohibit the conduct going forward through rulemaking. Or, the regulator can punish the conduct through what I call a "principles-based" enforcement action. Since 2002, there has been a surge of principles-based enforcement actions, provoking criticism that regulators are engaging in …

What Is A Business Crime?, Richard A. Booth

Working Paper Series

Criminal prosecution has been used with increasing frequency recently in connection with a variety of business failures and other financial offenses. Indeed, it appears that there are few such offenses that cannot be prosecuted criminally even though they also give rise to civil remedies. While some such offenses seem to be quite serious frauds, others seem to be as minor as getting the accounting rules wrong. Thus, the question addressed in this essay is how to define a business crime and what should be the proper role of criminal prosecution in connection with business offenses. I start with the proposition …

Vol. 5, No. 06 (November/December 2007)

Indiana Law Update

No abstract provided.