The BLT: The Blog of Legal Times

Justice Dept. Seizes Maryland House in Corruption Fight

The federal government has seized a Rockville, Md., house allegedly purchased with corrupt proceeds from a former Nigerian governor, part of the U.S. Department of Justice's three-year crackdown on kleptocracy, the agency said today.

The private residence, valued at more than $700,000, had been purchased with proceeds traceable to Diepreye Solomon Peter Alamieyeseigha, a former governor of an oil-producing state in Nigeria, the Justice Department said. The house is at 504 Pleasant Drive in Rockville.

While Alamieyeseigha's official salary between taking office in 1999 and his impeachment in 2005 was approximately $81,000, he accumulated millions of dollars' worth of property located around the world through corrupt activities, the Justice Department said in court filings.

D.C. Circuit Upholds ATF Firearm Reporting Rule

Thousands of firearm dealers in Southwest border states must comply with gun federal agents' demands for information about the bulk sale of semi-automatic rifles, a federal appeals court in Washington ruled today.

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit unanimously upheld the propriety of so-called "demand letters," rejecting the legal challenge brought by two gun dealers in Arizona and a firearms association based in Newtown, Conn.

The federal Bureau of Alcohol, Tobacco, Firearms & Explosives in July 2011, seeking to curb gun trafficking along the Southwest border, sent the letters to thousands of dealers in Arizona, California, New Mexico and Texas. The ATF said the dealers must report to the government the sale of two or more semi-automatic rifles, within any five consecutive business days, with certain characteristics.

Steptoe Partner Elected D.C. Bar President-Elect

Steptoe & Johnson LLP partner Brigida Benitez was elected president-elect of the D.C. Bar for the upcoming 2013-14 term.

Benitez edged out Jenner & Block partner Lorelie Masters for the top job by around 200 votes, according to results provided by the D.C. Bar. Voter participation was up this year, with the bar reporting a 12 percent return on the more than 75,000 ballots sent out, or around 8,700. Last year, around nine percent of ballots were sent back.

Benitez could not immediately be reached for comment. Beginning in June, she'll serve as president-elect for one year while solo practitioner Andrea Ferster, the current president-elect, is president. Benitez will then spend a year as president and a third year as immediate past president.

Campaign Donation Case to Get En Banc Review

Three federal contractors who are suing for the right to make campaign donations were sent back to square one today on jurisdictional grounds.

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit held that under Federal Election Campaign Act, the merits of such disputes may only be considered by an en banc appellate panel.

In an unsigned per curiam opinion, the appeals court remanded the case to U.S. District Judge James Boasberg, vacating his judgment and giving him just five days to turn the case around and return it to the full court for review.

D.C. Court of Appeals Judge Oberly to Retire

District of Columbia Court of Appeals Judge Kathryn Oberly will step down in November after four and a half years on the bench.

The District of Columbia Judicial Nomination Commission announced Oberly's retirement plans yesterday. The commission is now accepting applications from lawyers interested in filling her spot through September 20.

Oberly's decision to retire less than a third of the way through her first 15-year term on the city's highest court is unusual. Over the past two decades, the majority of retiring appeals court judges served at least 10 years, and most had served a full term before retiring, according to a review of public records. Oberly declined to comment.

Judge Releases D.C. Lawyer Jailed for Contempt

Washington lawyer and former judicial officer George Crawford was released from jail after appearing yesterday afternoon before District of Columbia Superior Court Judge Gregory Jackson.

Crawford was held in contempt for failing to pay court-ordered sanctions in a civil lawsuit over unpaid loans. Jackson released him yesterday but warned he would send him back to jail if Crawford didn't make certain monthly payments or pay the full $123,000 in sanctions within the next six months.

Crawford, a member of the D.C. Bar since 1980 with no disciplinary history, was one of several defendants sued over unpaid loans. After failing to follow court orders, he was hit with $30,000 in sanctions. He was sent to jail for the first time in December for failing to pay those sanctions. Crawford, however, was released shortly after. He then faced another $123,000 in sanctions and was jailed again on April 15 for not paying.

The Morning Wrap

Pressure rising: Criticism of Attorney General Eric Holder Jr. continues to ramp up, as Republicans clamor about a perjury investigation and renew calls for the country's top law enforcement official to step down. The National Law Journal has this report. In meetings yesterday with media editors, Holder vowed new rules concerning how prosecutors go about seizing evidence from the press in criminal investigations. The Wall Street Journal has this report on Holder's pledge to change DOJ guidelines.

By the numbers: The 2013 Am Law 200 is now available. "One thing is clear: Second Hundred firms are on a hiring binge. What's not certain is when—or whether—it will pay off," the Am Law report says. From a comprehensive package of stories: "The 2013 Am Law 200: The Second Hundred Bets on Bulk," and "The Am Law 200's Haves and Have-Nots."

Comey's record: In today's New York Times, a spotlight on the record of James Comey, the longtime former Main Justice official who's the reported pick to lead the Federal Bureau of Investigation. The Times reports: "senior Senate aides said no immediate red flags were raised on Capitol Hill to indicate a bruising confirmation fight when President Obama makes his choice official." The National Law Journal reports today: "Obama's Reported FBI Pick Willing to Ruffle Feathers." Via The Washington Post today: "Civil liberties groups criticize Comey, but colleagues praise him."

Consumer Agency Charges Debt Firm with Abusive Acts

Continuing its crackdown on illegal debt relief practices, the Consumer Financial Protection Bureau today filed suit in West Palm Beach federal court, alleging that a Florida company misled consumers and charged illegal fees for its services.

The complaint is notable because it charges the company, American Debt Settlement Solutions, Inc., and its owner, Michael DiPanni, with actions that are not just unfair and deceptive, but also abusive.

While unfair and deceptive are familiar terms in consumer protection law, the term "abusive" is new to the Dodd-Frank Act and has been the subject of much consternation among Republicans in Congress, who have called it too vague.

With this complaint, the CFPB gives what may be its first concrete example of abusive conduct.

Q&A: Davis Polk & Wardwell's Annette Nazareth

Even before she was a commissioner at the U.S. Securities and Exchange Commission, Annette Nazareth had a distinguished legal career in both the public and private sector.

Nazareth started as an associate at Davis Polk & Wardwell in 1981. She left the firm five years later to work in the securities industry. In 1998, she joined the SEC as a senior counsel to then-chairman Arthur Levitt. One year later she became director of the Division of Market Regulation, a post she would hold until she became commissioner in 2005. She returned to Davis Polk in 2008 and currently serves as the managing partner of the Washington office.

Legal Times sat down with Nazareth to discuss the current state of the Washington office, the Dodd-Frank rule and—well, because it’s summer-like out there right now—hot dogs.

Midwest Firm Michael Best Opens Washington Office

UPDATED at 5:06

Milwaukee-based Michael Best & Friedrich is expanding to Washington, opening an office here with three lawyers and a patent scientist on June 3.

It’s the first step outside the Midwest for the 230-lawyer firm, known for its work on behalf of Wisconsin Governor Scott Walker, who is often mentioned as a potential GOP presidential candidate in 2016.

According to the firm, the new office at 601 Pennsylvania Avenue NW will focus on energy, environmental, intellectual property, food and drug and agriculture matters.