Showing posts from November, 2013

Professor Dervan Testifies on Capitol Hill Regarding Overcriminalization, Regulatory Crimes, and Plea Bargaining

I was pleased to have the opportunity to testify yesterday before the House Committee on the Judiciary, Overcriminalization Task Force.  The focus on the hearing was potential solutions to overcriminalization, particularly regulatory overcriminalization.  Below is a portion of my testimony: " I commend the Task Force for its work, shining a light on the issue of overcriminalization and working to correct this fundamental problem in our criminal justice system.      Before beginning a discussion of the possible solutions to the numerous problems associated with overcriminalization that have been identified by this Task Force during prior hearings, I think it is also important to consider once again the far reaching consequences stemming from the phenomenon of overcriminalization.   As reported by the American Bar Association in a 1998 study, forty-percent of the criminal laws passed since the Civil War were enacted after 1970.   Since the release of this ABA report,

Johnson & Johnson settles "kickback" charges with $2.2 billion penalty

It was a good day for the government.  Along with reports that SAC Capital will pay $1.8 billion in fines related to insider trading allegations, Johnson & Johnson has reportedly agreed to pay $2.2 billion to settle allegations regarding the marketing of drugs for unapproved uses and the payment of kickbacks to doctors and nursing homes. The penalties announced Monday involve fines and forfeiture to the federal government and several states. The settlement involves the schizophrenia drugs Risperdal and Invega, and the heart failure drug Natrecor, the company and Attorney General Eric Holder said... The penalty amounts to one of the country's largest health care-related settlements, the Justice Department said. It also results in what one plaintiff's attorney called the largest whistleblower payout in U.S. history. Whistleblowers in three states will collect $167.7 million under the False Claims Act... The settlement includes payments to the federal government and severa

SAC Capital to Plead Guilty to Charges of Insider Trading

According to CNN, SAC Capital has agreed to pay a $1.8 billion fine and plead guilty to criminal insider trading charges.  In addition, prosecutors say SAC will close its investment advisory business, meaning it will no longer manage money for outside investors. The deal still allows the firm to operate as a "family office," with Cohen and others at SAC investing their own money. Cohen is one of the country's most famous hedge fund managers, with a net worth estimated at $9.4 billion in September. He could still face criminal charges of his own since the agreement does not include any immunity for individuals at the firm. Prosecutors accused SAC in their indictment of fostering a culture of insider trading "that was substantial, pervasive, and on a scale without known precedent." The indictment excerpts a number of e-mails and instant messages from SAC traders suggesting they had illicit information from corporate insiders. "What SAC Capital's plea