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Bank Not Liable for Unauthorized Film Loan Transfer
The U.S. District Court for the District of New Jersey ruled that a film investor incurred no recoverable damages when a bank made an unauthorized transfer of money from his account to a film company to which the investor was obligated to pay the funds. Frungillo v. Imperia Entertainment Inc., 08-0908 (DRD). Michael Frungillo had agreed to loan $250,000 for production of the independent martial-arts film Never Submit. But he alleged in his lawsuit that Wachovia Bank had violated the Uniform Commercial Code and New Jersey banking statutes when it transferred the money from his account to Never Submit LLC without his permission. Senior District Judge Dickinson R. Debevoise noted, however, in an unpublished opinion: “Wachovia's actions ' regardless of whether they violated the security procedures governing Mr. Frungillo's account ' did nothing more than place Mr. Frungillo in the position that he was obligated to assume under his contract with [the film production company]. Therefore, Mr. Frungillo may not recover compensatory damages from Wachovia as a result of the transfer.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Second Circuit Reinforces Bankruptcy Code Settlement Payment Safe Harbor
The Second Circuit affirmed the lower courts' judgment that a "transfer made … in connection with a securities contract … by a qualifying financial institution" was entitled "to the protection of ... §546 (e)'s safe harbor ...."