The U.S. Department of Education’s deadline for institutions to comply with the Annual Security Report is Oct. 1, 2018, points out Canopy Programs by United Educators.

Canopy Programs is offering assistance with its Clery Compliance Toolset, which can generate reports that include policies and procedures, as well as statistics for the past three calendar years.

The online tool will allow users to effectively:

• Develop policies and procedures
• Log crime and fire incidents
• Request and log crime statistics from local law enforcement
• Generate daily crime logs

Request a demo or download a white paper.

The ABA Journal reports that former Dewey & LeBoeuf chairman Steven Davis has reached an agreement with the U.S. Securities and Exchange Commission to pay a $130,000 civil penalty.

The SEC alleged that some executives of Dewey & LeBoeuf, which closed in 2012, misled lenders and bond buyers about the firm’s financial condition.

Dewey’s former finance director former controller also agreed to pay civil penalties.

Read the ABA Journal article.

Registration has begun for the 2018 Eastern District of Texas Bench Bar Conference, which is being held in conjunction with The Center for American and International Law’s Patent Trial and Appeal Board Bench Bar Conference.

Hosted by the Eastern District of Texas Bar Association, the annual event is one of the largest of its kind nationally, bringing together practicing lawyers, general counsels, in-house counsels, respected judges, and industry experts from across the globe to discuss the latest issues in patent law and intellectual property litigation. Topics will also include Corporate Cyber Threats, Qui Tam litigation, Trade Secret Theft and Protection, and many others.

The Honorable Andrei Iancu, U.S. Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office (USPTO), will be the keynote speaker.

The 22nd annual EDTX Bench Bar Conference is set for October 17-19 at the Marriott Legacy Town Center in Plano, and registration information is available here.

Contact Andrea Williams-McCoy for more information on conference programs, registration and lodging at 903-870-0070 or andrea@siebman.com.

The U.S. Environmental Protection Agency’s proposed Affordable Clean Energy (ACE) rule would establish guidelines for states to develop plans to address greenhouse gas emissions from certain existing fossil-fuel-fired power plants.

A post on the Beveridge & Diamond website says ACE would replace the Obama Administration’s 2015 Clean Power Pla, which EPA has proposed to repeal on the basis that it exceeded EPA’s authority.

“In particular, the current Administration does not believe it has authority under Section 111 of the Clean Air Act to require regulated entities to take actions “outside the fenceline,” as contemplated by the CPP.  Accordingly, the ACE plan would impose only “inside the fenceline” requirements on electric generating units,” write authors Brook J. Detterman and Grant Tolley.

Read the article.

Bloomberg reports that a vote on unionization by 2,700 United Airlines in-flight catering workers can proceed over the company’s objections, the general counsel of the National Mediation Board ruled.

The hospitality union Unite Here had filed a petition, with support from three-quarters of United’s kitchen workforce, seeking a vote, but the airline filed a complaint alleging fraud and misrepresentation by the union before the petition was filed, contending that Unite Here organizers had shown up at workers’ homes claiming to be representatives of the airline conducting a poll, reports Josh Eidelson.

Eidelson reports that “NMB General Counsel Mary Johnson wrote that after interviewing employees, the agency’s investigators had determined that ‘there is no evidence that employees did not understand that Unite Here was a union and was not a representative of United.'”

Read the Bloomberg article.

The U.S. Federal Trade Commission failed to convince a federal judge in San Francisco that DirecTV should pay nearly $4 billion in restitution to customers for allegedly misleading consumers about the costs of programming packages, Bloomberg reports.

The said that “the scope of the maximum potential recovery in this case has been substantially curtailed,” according to reporter Pamela MacLean.

The FTC suit alleged that DirecTV failed to disclose to consumers in 40,000 print, mail, online and TV advertisements that its lower introductory pricing lasted just one year but tied buyers to a two-year contract.

Read the Bloomberg article.

Canopy Programs’ new white paper, “An Update on the U.S. Department of Education’s Clery Enforcement Measures,” provides an overview of the Clery review process and cases involving institutions that were fined for Clery Act violations in 2017.

Despite the change in federal administration, the U.S. Department of Education has continued to aggressively enforce the Clery Act. Specifically, the department issued fines against 10 institutions in 2017 based on program reviews that were conducted in the past several years totaling $800,000, or an average of $80,000 per institution.

The complimentary white paper offers insight into these cases, including:

• A review of the institutional demographics by type and enrollment size
• What caused the program reviews to take place
• An analysis of the length of time for the program reviews
• Which categories of violations resulted in fines

Download the white paper.

Micah Dortch, managing partner of the Dallas office of the Potts Law Firm, has been appointed a special receiver in litigation originally brought by the Securities and Exchange Commission against a group of Texas businessmen, the firm announced. That lawsuit seeks to recover funds from what was characterized as a fraudulent investment scheme directed by Thurman P. Bryant III of Frisco and Arthur E. Wammel of Pearland, along with affiliated companies and individuals.

The firm says that evidence in the case revealed that, in less than three years, the defendants were able to withdraw or transfer more than $20 million in cash from Wells Fargo Bank accounts in violation of industry standards and the bank’s own policies. Despite numerous five-figure and six-figure cash withdrawals, Wells Fargo management never verified, questioned or restricted any of the activities, according to allegations.

According to the SEC complaint, originally filed in 2017, the defendants raised more than $22 million from more than 100 investors to purportedly fund short-term mortgage loans for later sale to long-term lenders. The SEC says that no such program existed, and that Bryant and Wammel were operating a Ponzi scheme, with limited returns paid to investors from monies raised from other investors.

Dortch has been appointed by the court to investigate the role of Wells Fargo in the matter and to seek financial compensation on behalf of the defrauded investors, filing a complaint alleging that Wells Fargo failed to follow its fiduciary role.

“As stated in the complaint, Wells Fargo either knew about the scheme or willfully ignored the questionable actions being made in violation of its own internal rules,” said Dortch. “I’m honored to take on this role and gain a just resolution for these innocent victims.”

The case is Ecklund v. Wells Fargo Bank, N.A., No. 4:18-cv-00452-ALM, filed in U.S. District Court for the Eastern District of Texas in Sherman.

The Department of Energy has announced a final rule that will expedite the approval process for small-scale exports of natural gas, reports Cadwalader.

Special counsel Brett A. Snyder writes:

The DOE explained that the new rule is intended to accelerate its processing of small-scale export applications and reduce administrative burdens for the small-scale natural gas export market.

Effective August 24, 2018, the DOE will issue an export authorization, without public notice and comment, to an applicant submitting a complete application to export natural gas, including liquefied natural gas (“LNG”), to countries with which the United States has not entered into a free trade agreement (“FTA”) that requires national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy (i.e., non-FTA countries), if the application meets two criteria.

Read the article.

The Washington Post is reporting that a West Virginia House panel moved this week to impeach the state’s entire Supreme Court.

Fourteen articles of impeachment allege corruption, maladministration, incompetence, neglect of duty and potential criminal behavior — impeachable offenses under the state constitution, writes Isaac Stanley-Becker.

Federal investigators secured a 23-count indictment charging former chief justice Allen H. Loughry II, now suspended without pay, with fraud, witness tampering, lying to a federal agent and obstruction of justice. Another seat on the court was vacated when Menis E. Ketchum II resigned in July, days before he was accused of federal wire fraud.

The Post report says other justices are “accused of ‘unnecessary and lavish spending’ on renovation of their offices, travel budgets and ‘regular lunches from restaurants,’ among other expenses, as well as failure to carry out administrative duties and properly develop guidelines for the use of public resources.”

Read the Post article.

The federal government challenged a judicial decision allowing AT&T to purchase Time Warner, arguing to a federal appeals court in Washington that the ruling suffered from “faulty logic” and ignored basic economic principles, according to The Washington Post.

The Justice Department asserted that the district court misunderstood the power dynamics at work when television distributors such as AT&T negotiate with TV programmers over content prices and terms, writes Brian Fung.

In its filing, the DOJ called the decision a “deeply flawed assessment of the government’s evidence.”

“It is fundamental to the economics of bargaining that a party derives leverage from having the ability to walk away, even if it never actually does so,” the Justice Department wrote.

Read the Washington Post article.

Attorney Tom Schroedter with Hall Estill represented Oklahoma Industrial Energy Consumers (OIEC), an association of OG&E’s large power users, as an intervenor in Oklahoma Gas and Electric Co.’s application for Corporation Commission approval of a rate hike.

In a release, the firm said that Oklahoma Gas and Electric Company’s industrial customers will realize significant benefits from the largest single rate reduction ever awarded a state electric utility following the Oklahoma Corporation Commission’s approval of a settlement in mid-June.

The firm has offices in Tulsa, Oklahoma City, Denver, Northwest Arkansas and Oregon.

The firm’s release continues:

The commission’s order approved a settlement agreement which provides for a large rate reduction and a one-time refund to OG&E customers resulting from federal income tax law changes. Large industrial consumers will realize meaningful savings and avoid cost increases as a result of the rate case settlement. OIEC worked with the Oklahoma Attorney General’s office in advocating for and negotiating this significant decrease which results in fair and reasonable rates for OG&E customers.

“It is tremendously rewarding to work on this historic settlement which provides such substantial savings for industries and businesses across the state,” said Schroedter.

Beginning in July 2018, OG&E customers received a rate reduction of $64 million along with a one-time refund of $18.5 million that appeared as a credit on the July bill.

“We are fortunate to have outstanding attorneys like Tom who work diligently on behalf of our clients to represent the interests of Oklahoma’s industries,” said Mike Cooke, Managing Partner for Hall Estill. “Tom is a fabulous asset to our clients and brings a great depth of industry knowledge and unmatched enthusiasm to our team.”

Schroedter has practiced at Hall Estill for over 25 years and has built his legal career around Energy & Natural Resources and Utilities Law.

During the latest National Health Care Fraud Takedown, investigators targeted Houston and Dallas to identify and charge more than 40 people with a range of fraud allegations.

How is a region designated as a health care strike force area? Former federal prosecutor and Houston trial attorney Ashlee McFarlane of Gerger Khalil & Hennessy explains in a post on the website of Androvett Legal Media & Marketing.

“Dallas is a health care strike force city, meaning the Department of Justice and federal agencies have identified Dallas (like Houston) as a hot bed for health care fraud, based on data analysis and reviewing payments of claims submitted to federal health care benefit programs like Medicare,” says McFarlane.

“Kickbacks are the foundation of almost every health care fraud case. “As a former prosecutor, I can tell you—kickbacks are the first thing agents and prosecutors look for in building an investigation.

“There’s no way to know the number of kickbacks being paid in a city. You have to start investigating a case. However, when there are providers who are outliers in the billing data, federal agents often look to see if kickback payments are used to induce referrals.”

Dallas and Houston are among 10 locations nationwide with Medicare Fraud Strike Force operations. According to the Department of Justice, a Medicare Fraud Strike Force consists of a partnership between the DOJ and Department of Health and Human Services to prevent fraud and enforce anti-fraud laws.

A Cleveland lawyer who has already paid a $300,000 settlement to his former paralegal for insulting her has now been suspended from the practice of law for six months.

WKYC reports that the Ohio Board of Professional Conduct accused Howard Evan Skolnick, a lawyer since 1993, of violating professional conduct rules by “verbally harassing” the woman for more than two years. The board recommended a a six-month suspension to be held in abeyance.

But the Ohio Supreme Court issued a one-year suspension, with six months stayed on the condition that he engage in no further misconduct.

Reporter Phil Trexler wrote” “Court records show he called her “stupid, dumb, fat and `whorey’.” He also lodged insults against the woman’s husband and her mother. Records show Skolnick also sexually harassed the woman and a female co-worker by making a request for a sexual favor while inside a car.”

Read the WKYC article.

Canopy Programs by United Educators has published “Annual Security Report: 10 Questions to Ensure Compliance,” designed to help protect educational institutions and ensure an accurate and compliant Annual Security Report (ASR) by considering 10 important questions.

“Preparing your institution’s Annual Security Report (ASR) is critical in demonstrating your school’s compliance with the Clery Act,” Canopy Programs says on its website. “Inaccuracies in the ASR—which must contain crime statistics and numerous statements of policy and procedure—and other Clery compliance deficiencies can result in review and oversight by the U.S. Department of Education (ED), fines (currently $55,907 per violation), and reputational damage.”

The publication discusses such questions as:

1. Have we requested crime statistics from local law enforcement agencies with jurisdiction over our Clery geography?
2. Is our Daily Crime Log up to date and available upon request?
3. If we are a multiple campus institution, do we publish an ASR for each campus?

Continue reading “10 Questions to Ensure Compliance.”

A growing number of lawyers, interpreters and other professionals across the U.S. — members of Lawyers for Good Government — have mobilized to force the Trump Administration to defend its immigration policies in court.

Bloomberg reports that the organization, which was launched as a Facebook group the day after Trump was elected president, is working on behalf of people who have been detained after they sought asylum for themselves and their children because they said they feared for their lives in their home countries.

Reporter Nick Leiber writes that “L4GG has only one employee: founder, president, and executive director Traci Feit Love, a Harvard Law School graduate and former litigator for DLA Piper, one of the biggest law firms in the world. She and her board have been figuring out how to direct L4GG’s volunteers—a significant chunk of the 1.34 million attorneys in the U.S.—to make them useful.”

Read the Bloomberg article.

Bloomberg Law is reporting that a former Dentons associate who stole the firm’s confidential files and then tried to extort cash and artwork from the firm now faces attorney discipline charges.

The complaint names Michael Bernard Potere, who pleaded guilty and was sentenced to federal prison for unauthorized computer access. The complaint was served July 10 but recently posted. The Illinois Attorney Registration and Disciplinary Commission’s alleged ethical violations based on the criminal conduct.

Potere, an associate in Dentons’ Los Angeles office from 2015 until June 2017, downloaded numerous confidential firm documents, such as financial reports, documents about partner meetings, client lists, billing information, and recruiting-related information, ARDC said. He then threatened to send the documents to a legal website unless the firm paid him $210,000, according to reporter Mindy L. Rattan.

Read the Bloomberg Law article.

Bloomberg Law is reporting that a virtual currency operator accused of running off with investor funds after a 2013 hack and lying to investigators has accepted a plea deal with federal prosecutors in New York.

Reporter Lydia Beyoud writes that Jon E. Montroll of Saginaw, Texas, faces up to 40 years in prison.

Manhattan U.S. Attorney Geoffrey S. Berman said in a July 23 statement accompanying the plea agreement that Montroll “repeatedly lied during sworn testimony and misled SEC staff to avoid taking responsibility for the loss of thousands of his customers’ bitcoins,” in 2013, Berman said.

Read the Bloomberg Law article.

Reuters reports that the former chief executive of Energy XXI Ltd agreed to settle civil charges that he failed to disclose to investors more than $10 million in personal loans obtained from company vendors and a candidate for the company’s board, the U.S. Securities and Exchange Commission said.

John D. Schiller Jr. didn’t admit or deny the charges, but he settled with the SEC by paying a $180,000 penalty and agreeing not to serve as an officer or director of a public company for five years, the SEC said.

The Reuters article explains: “The SEC alleged Schiller maintained an extravagant lifestyle using a leveraged margin account secured by his shares in the oil and gas producer. When oil prices tumbled in 2014 and he was faced with margin calls, Schiller accepted more than $7.5 million in personal loans from companies that did business with Energy XXI, the SEC claimed.”

Read the article.

The Tennessean reports that the U.S. Senate voted 70 to 23 on Thursday to confirm Paul Ney as the general counsel for the Department of Defense.

Ney, of Nashville, has worked for the past two years in the Tennessee attorney general’s office where he currently serves as chief deputy attorney general. In that role, he coordinated and supervised legal work for all of the office’s divisions, writes reporter Michael Collins

As Defense Department general counsel, he will be involved in issues involving personnel, conduct and other matters.

Read the Tennessean article.