FABULOUS FAB TRIAL, Paolo Pellegrini continued

Today continued the testimony of Paolo Pellegrini, who was involved in the CDO deal in question and ended up making 20 million dollars from that deal.  He sparred with the SEC lawyer during most of his testimony, and must have caused a few reporters to get a hand cramp, they were writing so furiously. At one point during his testimony I heard someone gasp from the audience.  The jury did not sleep today.

From the New York Times
Barely veiled contempt colored many of the exchanges between Mr. Pellegrini and Mr. Martens. When the S.E.C. lawyer asked the witness to find a particular section of a document, Mr. Pellegrini leaned back in his chair, casually sipped from a cup of water, and drily asked, “Do you mind locating it for me?”

New York Times story:
NYT Pellegrini testimony story link

Paolo Pellegrini on stand 

SEC Lawyer Matthew Martens questioning Paolo Pellegrini

FABULOUS FAB TRIAL Hedge fund exec testifies in NYC case

Hedge fund exec testifies in NYC case
Today the former Managing Director at the Paulson hedge fund Paolo Pellegrini, testified.

Quote from the WSJ article:
 Mr. Pellegrini was one of the architects of Mr. Paulson's wager against subprime mortgages that netted $15 billion in 2007 for his hedge-fund firm, Paulson & Co. Mr. Pellegrini subsequently left to launch his own hedge fund, before pulling the plug nearly two years ago to focus on investing his own money.
WSJ article link:
WSJ Pellegrini article
Amazingly Pellegrini initially could not define what CDO meant, 
( CDO is a collateralized debt obligation and is key to this case)
but, he took a guess at the term, and got it right.

Fabrice Tourre looks on as Paolo Pellegrini testifies at the Fabrice Tourre trial

Note outside the window of the courtroom, is a nice view of the Manhattan Bridge, EW

" FABULOUS FAB" TOURRE TRIAL OPENS

Today in Manhattan Federal Court, the trial of former Goldman Sachs trader Fabrice Tourre opened to a packed courtroom. The trial is a civil trial,  the SEC v Tourre and is expected to last 3 weeks.
Judge Kathleen Forrest presided over jury selection, opening statements and the first witness, Dr Dwight Jaffee.  He tried to explain the complex financial instruments that are all part of this trial, CDOs etc. to the jury who had no background in the investment banking world.
Tourre is a slight little fellow with a distinctive profile. He is expected to take the stand; the SEC will  call him. John Paulson who made a billion dollars off the deal in question will also take the stand, but for the defense.
Below is an opening shot, Tourre and the SEC's opening slide, one of six illustrations drawn yesterday.
Also on this case, as in many high profile cases, we were not allowed to draw the jurors' faces. 9 jurors were chosen because it was a civil case. The jury is made up of a wide variety of people, including a woman who is an Episcopal priest.

Fabrice Tourre seated at the defense table with his legal team by Elizabeth Williams

Story by Wall Street Journal reporter Chad Bray
WSJ Chad Bray story link

Jury selection at the Tourre trial, jurors seated in the courtroom,
standing room only for the press and spectators

Tourre Jury story by Bob Vanvoris, of Bloomberg
Bloomberg Bob Vanvoris story link

Director's recollections of Michael Jackson, interactions with AEG dominate trial's 11th week

Director's recollections of Michael Jackson, interactions with AEG dominate trial's 11th week

Katherine Jackson seated with her nephew during the AEG trial.
A screen shows a note from Paris Jackson to her father.
Illustration by Bill Robles

Bernard Madoff in court, goes to jail and court art of white collar defendants

Approximately 4 years ago Bernard Madoff was sentenced to 150 years in prison. At that time there
was a rash of Ponzi schemers and white collar criminals being indicted and tried by the US Attorney.
On Monday, Goldman Sachs trader Fabrice Tourre goes on trial for fraud in regard to a failure to disclose important parts of a CDO deal to a key Goldman client.  That deal bet against the housing market and made John Paulson a billion dollars, while the US economy was on the verge of collapse.
On top of this SEC case, the United States Attorney is focused on insider trading.
Insider trading is now the focus of most white collar prosecutions,
but no one will forget the lives that these various Ponzi schemers destroyed.
Here is a selection of some of the worst white collar criminals in recent history.

BONNANO CRIME FAMILY HEAD RE-SENTENCED

Defendant Joseph Massino (aka "Big Joey") appeared with the girth of a hoola hoop waist. He 

moved sluggishly to his seat in court. The defendant listened intently as defense and prosecution seemed 

to collude in requesting a sentence of "Time Served". His defense was wary of his age and ill health, citing 

Massino's invaluable information to US gov.

Former head of the Bonnano Crime Family Joseph ( Big Joey) Masssino in Brooklyn Federal Court by Aggie Kenny 

Meshing with this concern, US atty argued that and if he were to languish and die in jail, this would 

discourage other gov informants from signing on. 

APPLE TRIAL RULING

Judge Denise Cote handed down her 160 page ruling today in the US v Apple trial.
The ruling against Apple will be most certainly be appealed.

She is seated here during the Apple trial.

Story by Philip Elmer Dewitt
Link
CNN Fortune story by Philip Elmer Dewitt

Judge Denise Cote by Elizabeth Williams

Nephew: Michael Jackson was murdered | Entertainment - WPTZ Home

Nephew: Michael Jackson was murdered | Entertainment - WPTZ Home


Bill Robles drew TJ Jackson on the stand at the Jackson v AEG trial. Bill said TJ Jackson was a very impressive guy, down to earth, not flashy, even drives a Honda. Bill thought he was a great witness and a great subject to draw.

TJ Jackson testifying at the AEG v Jackson wrongful death suit.
artwork by Bill Robles

Just Like ‘Weeds’? Scarsdale Mom Andrea Sanderlin Lived Suburban Life While Allegedly Running A Marijuana Grow Operation [PHOTO]

Just Like ‘Weeds’? Scarsdale Mom Andrea Sanderlin Lived Suburban Life While Allegedly Running A Marijuana Grow Operation [PHOTO]

Court Illustration by Elizabeth Williams of Andrea Sanderlin flanked by her attorneys Joel and Corey Winograd, far left is AUSA David Pitluck, in the rear is the US Marshal.
In Brooklyn Federal Court they still wear shirts with the Marshal's seal. But in Manhattan Federal, their uniform is jacket and tie, which makes it hard to discern sometimes, who is who.

Sanderlin came to court, not a bit of make up, in drab prison garb, flushed face, with her blonde hair at times almost covering the entire side of her face. Good thing we could get a glimpse of her when she moved a bit.  Then it was over and she was gone. 

ILLUSTRATED COURTROOM: U.S. Supreme Court Questions Federal Gay-Marriage ...

We posted this last March and included an illustration of Greg Stohr by Aggie Kenny.
Here is the latest Greg Stohr article, with video of David Boies.
Supreme Court DOMA ruling by Greg Stohr

Bloomberg reporter Greg Stohr in the SCOTUS press room 

ILLUSTRATED COURTROOM: U.S. Supreme Court Questions Federal Gay-Marriage ...: Today in Washington DC the US Supreme Court heard arguments about   challenges to the constitutionality of the Defense of Marriage Act (DOMA...

The Supreme Court's Gay Marriage Day: Judgment, Joy and a Split Decision's Fate - Alexander Abad-Santos and Philip Bump - The Atlantic Wire

The Supreme Court's Gay Marriage Day: Judgment, Joy and a Split Decision's Fate - Alexander Abad-Santos and Philip Bump - The Atlantic Wire

United States Supreme Court 2013 by Aggie Kenny

Raj Rajaratnam Insider Trading Conviction Upheld By U.S. Appeals Court in Manhattan

Today the US Appellate Court upheld the conviction of Raj Rajaratnam. Below are select images from the trial  and a link to a YouTube video:   Rajaratnam trial YouTube video

Below is the story by International Business Times

Raj Rajaratnam Insider Trading Conviction Upheld By U.S. Appeals Court in Manhattan

Court drawing of jury that found Rajaratnam guilty 

Key witness against Rajaratnam, Harvard biz school grad, Adam Smith on direct examination
by AUSA Andrew Michaelson

Court art of Raj Rajaratnam during trial with his lead defense attorney John Dowd

APPLE eBOOK Anti-Trust Trial: Summations to Judge Cote

Today the lawyers gave their summations in the US v Apple eBook anti-trust trial.

First Orin Snyder, who is the lead attorney for Apple,  gave his summation  to Judge Cote.

At the end of his presentation, an Apple iPad animation appeared on the screen with the final words from 

his summation, in the form of an eBook. The pages turned as he spoke his final words

showing off the page curl feature of the eBook. The judge took note, as did everyone else:-)

Story by Fortune reporter Philip Elmer-Dewitt

Fortune CNN Money story by Philip Elmer-Dewitt

Also Publishers Weekly just published an eBook in the eBook trial and how the major publishers and Apple managed to change how eBook pricing was set for a period of time.
The Battle of the $9.99 eBook

Apple Atty Orin Snyder giving his summation to Judge Denise Cote

Mark Ryan giving closing statement to Judge Denise Cote

Then after Apple's atty gave his summation, the DOJ atty Mark Ryan spoke. Judge Cote was very attentive to both arguments and asked questions of both attorneys.

APPLE eBOOK Anti-Trust Trial: Eddy Cue and Judge Cote, final questions

Monday afternoon, at the US v Apple anti trust trial, the questioning of Eddy Cue was completed by Judge Cote. She was particularly curious about the 5 draft emails written by Steve Jobs, but never sent to Mr Cue. 

Mr Cue did his best to answer the judges questions. Then once he was off the stand the government rested their case.

Here is the complete story  by Philip Elmer-Dewitt
US v Apple story by Philip Elmer-Dewitt of Fortune magazine

Judge Denise Cote questions senior VP of Apple Eddy Cue about 5 draft emails written by Steve Jobs

After the all the evidence was presented and both sides rested, the judge gave an indication that her position
may be shifting.
Publishers Weekly story by Andrew Albanese
Publishers Weekly Apple trial story

APPLE eBOOK Anti-Trust Trial Eddy Cue, continued

Today was the second and last day of Eddy Cue's testimony at the Apple trial in Manhattan federal court.
After the lawyers were done questioning Mr Cue then Judge Denise Cote got her chance. He finally finished around 4:30 pm. At that point the government rested their case. Closing statements are on Thursday.
Here is a link to today's story by Philip Elmer-Dewitt of Fortune Magazine.
Fortune CNN Money story by Elmer-Dewitt
Publishers Weekly story by Calvin Reid
Publishers Weekly story

Eddy Cue, Apple VP on stand w Judge Denise Cote,
Manhattan Federal Court

Artwork was drawn for Bloomberg TV.