Mark Cuban Continues to Pursue SEC for Bad Faith in Insider Trading Investigation

Today's Wall Street Journal Law Blog reveals that Dallas Mavericks owner, Landmark Theaters owner and Chairman of HDNet Mark Cuban has gone on the offensive against the Securities and Exchange Commission. The SEC made widely publicized charges against Mr. Cuban for insider trading in selling shares of Mamma.com, an internet search technology company now known as Copernic, in 2008. Mr. Cuban disputed the charges, and a federal court dismissed the charges last year.

Not satisfied, Mr. Cuban demanded evidence regarding whether the SEC had acted in in bad faith in bringing the charges, and the SEC provided documents to his counsel. Now Mr. Cuban is attempting to force the SEC to turn over still more documents. If the court holds that the SEC acted in bad faith, it could impose sanctions and force the Commission to pay Mr. Cuban's legal fees.

Christopher Aguilar, former general counsel for a broker-dealer who did work for Mamma.com, has submitted an affidavit stating that Julie Riewe, an SEC attorney, informed him in August 2007 that she would prefer if employees of the broker-dealer did not speak to Mr. Cuban's attorneys, although Mr. Aguilar "could do what he wanted." Mr. Aguilar stated that he believed that the statement was an attempt to not make a witness available to the subject or target of an SEC investigation. Mr. Aguilar eventually allowed Mr. Cuban's counsel to speak with the employee.

The 00s:The Decade Technology Transformed the Practice of Law; Chinese Cyber-Attack on L.A. Firm

The Fulton County Daily Report's "The Snark" has illustrated, in a tounge-in-cheek manner, what has indisputably been the biggest change in the practice of law--including criminal law--over the decade just passed--technology. We have noted on this blog before that the technology boom of the last ten and more years has also presented inventive new avenues for crime and has created unusual challenges to the impartiality and sanctity of jury trials.

To be sure, e-mail had become widespread in the legal community by the late 1990s. However, as the comment notes, during the 2000s attorneys truly came into the full realization of the potential for e-mail as a more reliable and permanent way to document interactions between parties. The other edge of the sword is, of course, e-mail's evidentiary potential which can come back to haunt clients in various unpleasant ways. Few indeed are the defense attorneys who have not had at least one case where a client's computer was seized and imaged by the government, only to have e-mails alleged to be incriminating returned as highlights in government reciprocal discovery. While the positive side of e-mail is that it has made communication easy and easily preserved, the negative side of e-mail is... that it has made communication easy and easily preserved. E-mail is forever, and savvy 21st century lawyers would do well to counsel clients to be mindful not only of what they say, but of what they type and (increasingly in the decade ahead) of what they "text."

The comment also notes the changes in practice wrought by two other trends which began in the 90s: the continued spread of computer-assisted legal research and the growth of electronic filing. The need to page through compendious reporter volumes and indexes, or to spend hours at the local law library, has become an increasing rarity. Likewise, attorneys are increasingly relieved of the pressure to race to the courthouse before the clerk's office closes in order to file with the adoption of electronic case filing by more and more courts. The Blog notes that Case Management/Electronic Case Filing "CM/ECF," "PACER", a veritable blessing to both Federal courts and attorneys practicing in them, was first implemented by the Northern District of Ohio in 1996, and today is used by all Federal courts, a development which has heroically saved numerous acres of trees, millions in postage and reliance on the vagaries of the mails for reciept of notice of filings.

We close, fittingly, with a reminder of the challenges that the growth of technology will continue to pose for law and criminal enforcement. Ashby Jones at the Wall Street Journal Law Blog reports that the Los Angeles firm of Gibson Hoffman & Pancione has alleged that a cyber-attack originating in the People's Republic of China. The firm has alleged that its software code has been stolen by malicious e-mails which appeared to be sent by other members of the firm, and which contained a "Trojan" code enabling the takeover of the firm's computers. The firm coincidentally represents the California-based company CYBERsitter in a $2.2 billion lawsuit against China, alleging that filtering programs used by China contain over 3,000 lines of code illegally taken from content filtering software produced by CYBERsitter. The FBI is investigating the attack.

"Craiglist Killer" Case Is Likely Beginning of the End for So-Called "Largest Source of Prostitution in the U.S."

The suspected “Craigslist Killer,” Philip Markoff, a second year medical student at Boston University, appeared on Wednesday in Boston Municipal Court where he was ordered held without on charges of murder, armed robbery and kidnapping. Markoff is charged with the brutal murder of Julissa Brisman, a masseuse from New York City who was found dead in a Boston hotel on April 14 and who met Markoff on the online site Craigslist which features free classifieds ads. Markoff is also charged with robbing a woman at gunpoint at another Boston hotel on April 10 whom he had also contacted through Craigslist, and is suspected in the attempted robbery of an exotic dancer in Rhode Island who had posted an ad on Craigslist. Markoff is believed to have substantial gambling debts, as suggested by the fact that a Connecticut casino has confirmed that is cooperating in the criminal investigation.

Craigslist maintains an “erotic services” category, and Brisman’s murder has prompted a number of groups to call for Craigslist to shut down this portion of its site. Craigslist has been referred to as the largest source of prostitution in the United States. The service, which was started by Craig Newmark in 1995 as a series of emails to friends about events in the San Francisco area, today has over 42 million visitors. Last month, the Sheriff of Cook County Illinois filed suit against Craigslist, claiming that the site permitted solicitation of prostitution. Last November, Craigslist entered into an agreement with several States attorneys general to crack down on solicitations for prostitution on its site, and agreed to provide information on users to law enforcement if subpoenaed. However, some attorney generals are still not happy that Craigslist continues to permit the advertising of “exotic services,” and seek to have the site shut down the category. A spokesperson for Craigslist told the media that criminals who use the site are virtually guaranteed to get caught because they leave electronic trails which are easily traced, and that the risks to users on Craigslist are very low.

A search reveals that Craigslist has been cited in over a dozen reported criminal decisions in California, New Jersey, Nebraska and Minnesota to date, and has been used by criminals to facilitate child molestation, prostitution, pimping and pandering, robbery, theft and receiving stolen property, and assault. The Markoff case is certainly unwelcome news for Craiglist and the vast majority of its users who use the site for lawful purposes, and the end result will likely be elimination of any “exotic services” and stricter policing of users.