The BLT: The Blog of Legal Times

Issa Asks for Details of Fannie, Freddie Legal Fees

The chairman of the House Committee on Oversight and Government Reform wants to know why lending giants Fannie Mae and Freddie Mac are still paying the legal bills for their former executives.

Those bills have run well into the millions of dollars — $24.2 million to defend the former executives and $160 million overall to defend them and the companies in various lawsuits, The New York Times reported this month. In September 2009, The American Lawyer outlined some of the firms that were getting the work at that time, including Jenner & Block, Latham & Watkins, Mayer Brown, O'Melveny & Myers, Williams & Connolly and Zuckerman Spaeder.

Taxpayers are effectively on the hook for the legal fees, because the federal government took over the two mortgage companies in 2008.

Rep. Darrell Issa (R-Calif.), the oversight chairman, today released a letter he has sent to the federal agency that oversees the two companies. The letter asks for a “full and complete explanation” of the decision to “continue advancing legal fees on behalf of former executives.”

The seven-page letter (PDF) also asks for employment contracts for former executives Franklin Raines, Timothy Howard, Leanne Spencer and Leland Brendsel, and for communications involving the companies, the Treasury Department and the White House. Issa wants the information by 5 p.m. Friday.

Other lawmakers, including Rep. Randy Neugebauer (R-Texas) and then-Rep. Alan Grayson (D-Fla.), have also taken an interest in the legal fees.

A spokeswoman for the agency, the Federal Housing Finance Agency, said it has received the letter and would respond soon.

Updated at 4:28 p.m.

Telemarketers Allegedly Posed as U.S. Immigration Officials

A Nevada federal judge has approved a Federal Trade Commission request to shut down an alleged immigration scam in which operators posed as the U.S. government and duped consumers into paying fees for processing immigration forms.

According to the FTC, defendants Immigration Center and Immigration Forms and Publications Inc., "set up websites that mimic official government sites, and then used the fake sites to steer immigrants to their deceptive telemarketing operation."

The telemarketers answered the phone with “USCIS or “U.S. Immigration Center,” and identified themselves as an “agent,” “immigration officer,” or “caseworker.”

“In numerous instances, consumers who call Defendants’ toll-free numbers believe that they are talking to an agent of the USCIS, the U.S. Department of Homeland Security, or another agency of the United States government,” the complaint states.

According to the FTC, telemarketers then conned consumers into paying fees ranging from $200 to $2,500 by claiming the money would cover processing by the United States Citizenship and Immigration Services.

Consumers ended up paying for applications that were never processed, or, in some cases, they were charged twice, once by the defendants and again by the government.

The companies’ Web sites had official-sounding URLs such as www.uscis-ins.us and www.usgovernmenthelpline.com, complete with flags, eagles and the Statue of Liberty.

“On their websites, Defendants state that they are not affiliated with the United States government,” the FTC acknowledged in its complaint. “However, Defendants’ disclaimers are inadequate and ineffective.”

The FTC charged the Reno-based defendants with violating Section 13(b) of the Federal Trade Commission Act by misrepresenting that they were authorized to provide immigration and naturalization services; that they were affiliated with the U.S. government; and that the fees paid by consumers would cover all the costs associated with submitting immigration documents.

Judge Edward Reed on Jan. 26 froze the defendants’ assets and appointed a receiver to take over the business until the case is resolved. The FTC has asked the court to halt the business practices permanently and order the operation to repay its victims.

Venable Brings on Former Howrey Partner

Yet another Howrey partner has left the firm, this time opting to join Venable. Jennifer Dzwonczyk, whose practice focuses on intellectual property litigation, joined Venable’s Washington office as a partner on Jan. 3.

Dzwonczyk represents clients in cases that involve a range of technologies, including computer software and systems, networking, CASE systems, algorithms, servers, integration software and Internet applications. She has litigated IP disputes involving electronics, optics, medical devices and mechanical devices in various industries.

Dzwonczyk has also handled the procurement and licensing of patents, trademarks and copyrights.

According to court records, Dzwonczyk has represented such clients as BMW North America LLC, Xerox Corp., Eastman Kodak Co., Wix Filtration Corp., Daniels Sharpsmart Ltd., Amgen Inc. and Corporate Express Inc.

Dzwonczyk said in an interview today that while much of her decision to join Venable was based on the fact that she is “good friends” with several other former Howrey lawyers at the firm, the recent turmoil at Howrey was “definitely a factor.”

She said, “It’s been tumultuous. There’s been a lot of people leaving, which factored into my decision to join Venable.”

Dzwonczyk is the latest Howrey partner to have been reported as leaving the firm. To date, almost 70 partners have left the firm during the past year. Among the most recent defections are Henry Bunsow, the former Howrey vice chairman who left the firm earlier this month for Dewey & LeBoeuf; and Gary Bendinger, the former co-chair of Howrey’s global litigation who left the firm for Sidley Austin in December.

Current, Former Big Law Partners Pushed for Judgeships

Sen. Chuck Schumer (D-N.Y.) is recommending a Day Pitney partner and a former Cravath, Swaine & Moore partner for vacancies on the busy federal bench in Manhattan.

Katherine Forrest was at Cravath for 20 years before leaving in October to join the U.S. Justice Department, according to Schumer’s office. She’s a deputy assistant attorney general in the antitrust division, which was also her focus in private practice. Before leaving Cravath, she was on the firm’s team representing United Airlines parent UAL Corp. in its merger with Continental Airlines Inc., and she helped to represent Time Warner Inc. in its war against file-sharing of copyrighted music and other work.

Edgardo Ramos works in Day Pitney’s white-collar defense and investigations practice and its antitrust practice, according to his firm profile. He’s a former prosecutor in the U.S. Attorney’s Office for the Eastern District of New York, and in 2009, Connecticut’s two Democratic senators recommended him as one of four finalists for U.S. attorney for Connecticut.

Schumer is sending their names to President Barack Obama for possible nomination to the U.S. District Court for the Southern District of New York. Obama can nominate whomever he likes, though senators often get their choices for district judges.

In a news release, Schumer called the two “first-rate lawyers who have served at the highest levels of public and private practice.” He added, “Both have the commitment to public service and top-flight legal skills that we want in our federal judges, and I’m proud to recommend them for the bench.”

There are seven vacancies in the Southern District of New York, and the Administrative Office of the U.S. Courts considers one vacancy to be a judicial emergency because it has been open for longer than 18 months. Obama has two pending nominees for the court, J. Paul Oetken, an associate general counsel at Cablevision Systems Corp., and Vincent Briccetti of Briccetti, Calhoun & Lawrence in White Plains, N.Y.

Updated Feb. 1 to clarify the judicial emergency

McGuireWoods Adds Former Sen. Evan Bayh

McGuireWoods has added former U.S. Sen. Evan Bayh (D-Ind.) to its Washington office as a partner. Bayh will serve as an adviser to the firm’s clients who are facing issues dealing with public policy decisions involving the actions of Congress, the executive branch and state-level authorities.

The Wall Street Journal broke the news of Bayh’s hire in a post today.

Bayh, who served as a senator for two terms from 1999 to 2011, announced in February 2010 that he wouldn’t seek re-election, saying, “There is too much partisanship and not enough progress—too much narrow ideology and not enough practical problem-solving. Even at a time of enormous challenge, the people's business is not being done."

After making that announcement, which came as a shock to the Democratic establishment as it headed into a tough election cycle, it was unclear what Bayh’s future would entail. Bayh said at the time that there were “better ways” to serve Indiana residents than as a member of Congress.

Bayh, a moderate Democrat who served on the Energy and Natural Resources Committee as well as the Banking Committee, will focus on advising clients on banking policy as well as energy and climate-change policy.

Bayh, whose government experience also includes one term as Indiana’s secretary of state and two terms as the state’s governor, will be a senior adviser to McGuireWoods Consulting, the firm’s public affairs arm. It is unclear whether Bayh will register to lobby.

In addition to his work with McGuireWoods, Bayh will be a senior adviser to Apollo Global Management, a New York-based private equity firm.

In a prepared statement, Bayh said, “I am honored to join McGuireWoods. I’ve always been impressed by the top-notch professionalism, excellent character and collegial atmosphere here. The firm’s national and increasingly global presence gives me a broad platform to develop a challenging practice serving a wide variety of clients at the highest level.” Bayh wasn’t immediately available for additional comment.

Verizon to D.C. Circuit: Don't Dismiss Appeal

Lawyers for Verizon today fired back at federal communications regulators, arguing in a Washington appeals court that the company's suit challenging newly promulgated Internet access rules is viable and should not be dismissed.

Verizon's attorneys, including Wiley Rein partner Helgi Walker, filed court papers this morning in the U.S. Court of Appeals for the D.C. Circuit urging the court not to dismiss the company’s appeal. The litigation is focused on new Federal Communications Commission regulations governing how fixed and wireless Internet service providers control network access.

The filing [.pdf] responds to the FCC's submission Friday that asked the appeals court to throw out the challenge on procedural grounds. FCC lawyers argue, among other things, Verizon’s appeal is premature since the order establishing new Internet access regulations hasn’t been published in the Federal Register.

Lawyers for Verizon today said the company’s challenge of the FCC regulations was properly filed within a 30-day window after the release of the order.

Wiley Rein’s Walker, co-chair of the firm’s appellate practice, said the commission’s order modified licenses held by mobile broadband providers in a manner that gives Verizon and other companies the right to appeal before publication of the rules in the Federal Register.

Attorneys for Verizon also said the FCC has “historically and aggressively” sought dismissal of appeals that were not filed within 30 days of an order’s release date. The FCC controls when an order will be published in the Federal Register.

“Had Verizon incorrectly assumed that the thirty-day period ran from Federal Register publication and not the release date, the FCC might well have argued for dismissal of Verizon’s appeal as forever barred because it was too late,” Verizon’s lawyers said in the court papers filed today.

This Week in The National Law Journal

Goodbye, LSAT?: The American Bar Association is reviewing whether to make the Law School Admissions Test voluntary rather than mandatory for accreditation, Karen Sloan reports. The LSAT, required for nearly 40 years, has proven the best predictor of success during the first year of law school. The ABA is considering standards that give law schools more autonomy.

Lingerie Liability: Venable and former U.S. Sen. Birch Bayh (D-Ind.) are accused in a suit in D.C. Superior Court of exposing an Alexandria, Va., business consultant to a fraud complaint after the firm allegedly bungled the opening of a Victoria's Secret franchise in Puerto Rico. Jeff Jeffrey reports the case is set for a scheduling conference later this week. Venable's defense team included Robert Wilkins, a partner at the firm until he was confirmed in December to a seat on the U.S. District Court for the District of Columbia.

Twitter Love: Singer Courtney Love's lawyers are preparing to settle a defamation suit filed by a fashion designer who was subject to rants on Love's Twitter account. Amanda Bronstad reports a settlement would deny litigators long-sought guidance over damaging comments on social media.

Defending the Budget: Government contractors are getting to know their lawyers a little better as the Defense Department plans to cut $78 billion in military spending, on top of the $100 billion in efficiency savings announced last summer, Jenna Greene reports. Terminating a government contract is no simple task. Enter the savvy lawyer to try to save a program or soften the blow.

Tough Road: Marcia Coyle reports on the Obama administration's Solicitor General nominee Donald Verrilli Jr. Verrilli, the White House deputy counsel, would fill the position currently held by acting Solicitor General Neal Katyal. Coyle examines the Supreme Court docket Verrilli would face if confirmed. And then there's this: Verrilli "holes himself up with a whole mess of smoked salmon and doesn't talk to anyone" in the 24 hours before an argument, according to a friend, Jenner & Block partner Paul Smith.

Fighting for Fees: The plaintiffs' attorneys representing a class of Native Americans in a landmark suit in Washington want at least $223 million in compensation for their work steering the litigation to a $3.4 billion settlement agreement. Under the terms of the settlement, the attorneys for lead plaintiff Elouise Cobell agreed to assert no more than $99.9 million. But the lawyers argue that $99.9 million is not fair compensation. The Justice Department is expected in February to respond to the plaintiffs' fee petition.

The Morning Wrap

Pharma Suits: GlaxoSmithKline says it has settled on the eve of trial a lawsuit alleging its Avandia diabetes drug caused a man to die of a heart attack, avoiding what was to have been the first of 2,000 cases headed to court, Bloomberg reports.

Juggling Agencies: Lisa Brown, the White House staff secretary, will join budget officials in helping President Barack Obama's effort to reorganize the federal bureaucracy, The Washington Post reports.

Here's the Beef: The Wall Street Journal reports on Taco Bell's aggressive response, including full-page newspaper ads headlined, "Thank you for suing us," to a lawsuit challenging the company's beef supplies.

The Mayor Investigates: Weeks after a shooting left six dead and 13 injured in Tucson, New York City sent undercover investigators to an Arizona gun show, The New York Times reports.

Church Cases: The Kansas City Star reports that two sexual abuse lawsuits, one involving a former Kansas City area Catholic priest and another filed against a church in western Missouri, have settled. Terms weren't disclosed.

FCC Wants Appeals Court to Dismiss Internet Regulation Challenge

The Federal Communication Commission today asked a federal appeals court in Washington to throw out two wireless telephone companies' challenge to new rules governing Internet access on fixed and wireless networks.

The commission in December adopted three industry-wide regulations governing the provision of Internet service, including a rule that both prohibits wired providers from blocking Internet applications and content and bans wireless Web providers from blocking applications that compete with telephone service.

FCC lawyers, including counsel Joel Marcus, argue in court papers today that the U.S. Court of Appeals for the D.C. Circuit should dismiss Verizon’s challenge on jurisdictional grounds. The commission’s lawyers said Verizon improperly filed its appeal in advance of publication of the rules in the Federal Register. The D.C. Circuit did not immediately rule on the motion [.pdf]. MetroPCS, represented by Paul, Hastings, Janofsky & Walker, filed a separate challenge to the new rules.

Lawyers for Verizon—including Wiley Rein’s Helgi Walker, Samir Jain of Wilmer Cutler Pickering Hale and Dorr and O’Melveny & Myers’ Walter Dellinger—want the appeals court to assign the case to the same panel that ruled against the commission last year in Comcast Corp. v. FCC.

Verizon’s lawyers said the pending dispute “directly responds” to the D.C. Circuit’s ruling in the earlier Comcast case. In Comcast, the appeals court struck down the commission’s attempt to regulate broadband Internet access services. The company’s attorneys argue “the interests of judicial economy and consistency weigh in favor of that panel hearing this case.”

Van Ness Feldman Adds Former USDA Official

Van Ness Feldman has hired Mark Palmer, who until recently was with the U.S. Department of Agriculture, as a senior director in the firm’s Washington office.

While with USDA, Palmer served as a senior adviser and director of the office of external affairs at the Farm Service Agency. In those roles, Palmer coordinated agriculture and energy policy messaging for FSA, represented Secretary Tom Vilsack on Capitol Hill and formulated the agency’s legislative program with the Office of the Secretary. He also developed legislative and communications strategies, such as the 2008 Farm Bill implementation, and advised congressional committees in both the Senate and the House. Palmer was also responsible for developing and executing policy objectives and analyzing legislation as it affected USDA goals.

Prior to joining the USDA, Palmer was chief policy adviser to the chairman of the House Committee on Small Business, Representative Nydia Velázquez (D-N.Y.), a legislative assistant to Sen. Dick Durbin (D-Ill.), and held senior policy positions with the National Corn Growers Association and the American Soybean Association.

At Van Ness Feldman, Palmer will advise clients in the biofuel, renewable energy, clean tech and public policy sectors in dealings with Congress and the Obama administration. It’s not yet clear if he will register to lobby.

Palmer was not immediately available for comment.