NAFUSA Update
August 2014


NAFUSA Update is published monthly. NAFUSA's website can be accessed directly from this newsletter. New articles are posted to the website during the month.  You may also subscribe to NAFUSA email updates, delivered to your inbox overnight, the day after any new items are posted. (Be sure to complete the two step process.) You can also follow NAFUSA on Twitter (@NAFUSAorg).
  

Boston Conference October 9-12
 
Registration is now open for the NAFUSA annual conference to be held in Boston on October 9-12, 2014 at the Fairmont Copley Plaza. 

 

Registration began in July and each NAFUSA member received an invitation via email with the registration form attached. You are able to book your room at the Copley through this registration process, at the special conference rate of $319 a night. We only have a limited number of rooms, so members are urged to register and book a room as soon as possible. If you missed the email invitation, NAFUSA members may register by clicking on the registration link below. 

 

NAFUSA members: click here to register 

 

 

President Don Stern chairs the Boston Planning Committee, which includes Zach Carter, Kevin O'Connor, Bill Leone, Karen Hewitt, Ken Wainstein, Doug Jones, Paul Coggins and Rich Rossman. In addition, Stern chairs a Boston Host Committee with Wayne Budd, Mike Sullivan, Bob Corrente, Jeff Taylor, Jay Stephens, Bill Weld and Rich Rossman. President Stern promises an outstanding program. The conference will open with Thursday morning, October 9, golf at Belmont Country Club.

 

 

Thursday evening will feature a cocktail reception at the Copley, honoring NAFUSA member Robert S. Mueller III, who completed 12 years last fall as the sixth Director of the Federal Bureau of Investigation (FBI), a position he took one week prior to the September 11 attacks and held under two presidents.

 

Mueller was a United States Marine Corps officer, an Assistant United States Attorney in three different offices, the United States Attorney for the Northern District of California, the Assistant Attorney General in charge of the Criminal Division, and the longest-serving Director of the FBI since J. Edgar Hoover.

 

Mueller currently is a partner in the Washington office of WilmerHale. He holds a teaching appointment at Stanford University, and spends time in WilmerHale's West Coast offices. He also serves as Executive-in-Residence for Georgetown University. From 1993-1995, he was a partner at Hale and Dorr LLP, before the firm combined with Wilmer Cutler Pickering LLP a decade ago.

 

Mueller earned his law degree in 1973 from the University of Virginia School of Law, where he served on the Law Review. He received an MA in international relations from New York University in 1967, and graduated from Princeton University with an AB in 1966.

 

The Friday morning CLE program will feature two panels. Jeff Taylor, Raytheon Company, will moderate a panel on Corporate Monitors. The panel members are Leslie Caldwell, Assistant Attorney General for the Criminal Division; Michael Bromwich, Goodwin Procter and the Apple monitor; Kevin O'Connor, United Technologies; and Eric Feldman, Affiliated Monitors. The second panel will be on National Security with Assistant Attorney General for National Security John Carlin and Charlie Savage of the New York Times. On Friday afternoon, a boat cruise and lunch is planned in the Boston Harbor. Friday evening will be reserved for class reunion dinners.

 

The Saturday morning CLE will feature the awarding of this year's Bradford Award to the AUSA of the Year; a panel on Ethical Issues in Internal Investigations; a Dialogue with EOUSA and the AGAC, moderated by President Don Stern and featuring Loretta Lynch, Chair of the AGAC and Monty Wilkinson, Director of EOUSA. The CLE program will close with a panel discussion dealing with the 50 year anniversary of the signing of the Civil Rights Act, featuring Gerald Stern, who was a young civil rights lawyer in the Justice Department during the Freedom Rides. On Saturday afternoon, there will be an optional tour of Fenway Park.

 

Ed Davis The conference will close on Saturday evening with a closing reception and dinner. The keynote speaker will be Edward F. Davis, former Boston Police Department Commissioner who will speak on "Lessons Learned from the Boston Marathon Bombing."  Davis has been in law enforcement for 35 years. He served as the 40th Police Commissioner of the City of Boston from December 2006 until October 2013. Commissioner Davis was Boston's lead police official during the tragic Marathon bombing and testified before Congress about the bombing and lessons learned. Prior to that, Davis was the Superintendent of the Lowell Police Department, a position he held for 12 years and one he rose to after starting out as a patrol officer in 1978. 

 

The conference will be held on Columbus Day weekend with several offices closed on Monday, October 12. The fall is a great time in New England and a fine time to plan some extra days to watch the leaves turn.

 

 

 

 

 

 

NAFUSA Foundation Raising Funds to Augment DOJ Reward for Information Leading to the Arrest and Conviction for the Murder of Seattle AUSA Thomas C. Wales
 

Tom Wales Tom Wales was a celebrated and very well-regarded Assistant United States Attorney in the Western District of Washington who was murdered on the evening of October 11, 2001 as he sat working at his computer in the basement of his residence in Seattle. A gunman standing in the yard fired into the basement window of Tom's home office in what can only be characterized as an assassination. Tom was hit with multiple rounds, but managed to phone 911 before losing consciousness.

 

The killer was familiar with both Tom's property and his work habits, and was careful to avoid setting off floodlights in the yard that were attached to motion detectors, leading investigators to conclude that it was a carefully planned execution. One investigator observed that, "This may be as close as you come to a perfect murder, . . . the only physical evidence left behind was the bullets and shell casings, and nothing else." The only witnesses to the crime heard several shots and then saw a man walk quickly down the sidewalk in front of the Wales house, get into a parked car, and drive away. It is widely believed that the murder was in retaliation for Tom's work as an Assistant United States Attorney and was perpetrated or arranged by the target of a criminal investigation. If so, Tom would be the first AUSA in the history of our country to be killed in the line of duty.

 

Most media reports indicate that the focus of the criminal investigation of Tom's murder is on someone he had prosecuted for a white collar crime, an individual who was accused of falsifying aviation records submitted to the FAA. The Wales' case has not been solved and the prosecutors believe that until someone comes forward and talks, the case will never be prosecuted.

 

Shortly after AUSA Wales' murder, DOJ offered a reward of $1,000,000 for information leading to the arrest and conviction of the person who committed this crime. The NAFUSA Foundation is leading a drive to raise another $1,000,000 to match the reward offered by the Department of Justice. The Foundation has been working closely with the head of the FBI task force, Special Agent Russell E. Fox, who says that should the Foundation be able to raise an additional $1 million for a reward, his efforts will be greatly enhanced.

 

The Foundation has set a goal of raising $1 Million in pledges by December 31, 2014. More than $360,000 has already been pledged by prominent firms, including Williams & Connolly ($100,000), DLA Piper ($100,000), Perkins Coie ($100,000), as well as NAFUSA ($25,000). Several NAFUSA board members have made individual pledges. These are just pledges.  Payments will be made only if someone comes forward with information leading to the arrest and conviction of Tom's murderer(s) and only after the DOJ determines that the person providing the information qualifies for payment of the reward funds put up by the United States government.  And if this occurs, payments will be made through the NAFUSA Foundation, a 501(c)(3) entity.

 

We encourage your firm or company to make a pledge, or make an individual pledge. Foundation President Mike McKay (U.S. Attorney, WDWA, 1989-1993) is happy to answer any questions and provide pledge forms (mdm@mckay-chadwell.com).  Special Agent Fox is also available to talk about how an increased reward fund would help his team's efforts to find the person or persons behind AUSA Tom Wales' murder.

 

Relevant articles:

 

New Push for Help in Solving a Prosecutor's 2001 Murder (New York Times) 

 

An Unsolved Killing (The New Yorker) 

 

Continued resolve to find Thomas Wales' killer (Seattle times) 

 

Holder reiterates resolve to find Thomas Wales' killer (Seattle Times) 

 

 

Daughter to Seattle fed prosecutor's killer: 'I'm not afraid of you' (Seattle P.I.

 

 

 

MacBride Argues Prosecutorial Power Shifting From NY to DC

Neil MacBride In an interview published in the July 16th Corporate Crime ReporterDavis Polk Partner Neil MacBride On the Shift of Prosecutorial Power from New York to DC, NAFUSA member Neil MacBride, who served as the United States Attorney for the ED of Virginia 2009-2013, talks about his perception that the center of the corporate crime universe is shifting from New York to Washington and northern Virginia.

 

In MacBride's view, a paradigm shift occurred in the national security area with 9/11and the Patriot Act and other statutes began to tear down artificial walls and federal agencies began to share information. According to MacBride, the shift spilled over into the enforcement and regulatory space.

The result has been a consolidation of enforcement authority in Washington. You have this proliferation of regulatory and enforcement agencies that just didn't exist a decade ago.

 

When I was U.S. Attorney, I created the Virginia Financial Securities Fraud Task Force. That brought together criminal law enforcement agencies like the FBI, the Postal Inspection Service, the IRS on the one side. And then we brought in civil regulators like the SEC, the CFTC, state securities commissions. We brought them together in a way that allowed them to share information with the goal of detecting and disrupting financial frauds when they were relatively small, before they ballooned into Madoff style billion dollar ponzi schemes.

 

We stole the playbook from the national security counterterrorism side and have now applied it in the financial fraud and regulatory space. Companies increasingly have a sense that the locus of power has shifted from New York to Washington and northern Virginia. The regulators and enforcers here are much more active and will soon, if they haven't already, eclipse New York as being the center of the U.S. government's efforts against financial fraud.

The interview also discusses the "rocket docket" in the Eastern District of Virginia- rules created to speed cases on both the civil and criminal side. MacBride also discusses his view that the pendulum is swinging back from deferred and non prosecution agreements toward more guilty pleas in corporate cases. He is also quoted on the "rocket docket" in the July 15th posting of  Legal Bisnow (DC). 

 

 

NAFUSA Members Remember Johnnie Mac Walters

As reported in the July newsletter, long time NAFUSA member Johnnie Mac Walters died on June 24. NAFUSA arranged for an American flag to be flown over the Department of Justice in Mac's honor, and NAFUSA member Walt Wilkins (South Carolina 2008-2010), currently the Circuit Solicitor in Greenville, presented the flag to Mac's four children at a memorial service in Greenville, South Carolina on July 19. Walt reports that the children were very grateful and sincerely appreciated the gift from NAFUSA. Letters to the family were also sent by NAFUSA members Bill Sessions and John Clark.

 

Clark shared his "refreshed recollections" contained in his letter. He recalled the assistance Walters gave to Sessions and Clark in ensuring that their requests for timely decisions on matters crucial to their 1972 grand jury investigation did not get bogged down in the bureaucracy. Clark's reference to "George" refers to George Parr, the notorious South Texas political boss under investigation for income tax evasion. The reference to "my book" refers to Clark's non-fiction book The Fall of the Duke of Duval (Eakin Press, 1995), chronicling the year-long grand jury investigation and the multiple prosecutions that grew out of it.

 

Clark writes:

After re-reading the Times piece and thinking further about the chronology of events, it's my recollection that Scott Crampton succeeded Johnnie as Ass't AG - Tax Division in 1971, when Johnnie became IRS Commissioner. We knew Johnnie, of course, as well as Scott.  We knew at the outset of our investigation in the Spring of 1972 that we had a tight Statute of Limitations deadline for George's 1966 tax year ; and when we needed an expedited decision on an immunity grant for Karl Stautz to help us meet that deadline, Scott (at DoJ), and Johnnie (at IRS) helped to accomplish getting the facts reviewed and the decision made promptly.  When we needed assurance a little later in 1972 that the mandatory review by IRS Regional Counsel of the proposed indictment wouldn't get bogged down in needless bureaucratic delays, Johnnie assured us that it wouldn't, and it didn't.  Johnnie believed in us and in the validity of our investigation, and he was helpful to us in ensuring that key decisions were made after proper review and without unnecessary delay. As you may recall, we were concerned because Regional Counsel reviews and decisions had a reputation among US Attorneys' offices as needlessly slow, as did immunity requests at DoJ. Our District Director, Bob Phinney, was also concerned about the potential delay we might encounter at Regional Counsel level.  I.A. Filer told me that he thought George Stephen (the Chief of Intelligence in Phinney's office) was the one who selected the team of agents that was assigned to our investigation.  We had three Special Agents (I.A. Filer, Jerry Culver, and Charlie Volz) and crack Revenue Agent Ed Watts. As I wrote in my book, I never worked with a more professional or a more capable team of investigators.

 

John

 

At the time of the Parr investigation, Sessions was the United States Attorney for the WD of Texas (1971-1974) and Clark was the First Assistant. Sessions later became a United States District Judge for the WD of Texas and the Director of the FBI. Clark succeeded Sessions as U.S. Attorney (1975-1977) and is currently of counsel with the San Antonio law firm of Goode Casseb Jones Riklin Choate & Watson. He is also a past president of NAFUSA and one of the founders. Sessions is currently a partner at Holland & Knight in Washington.

 

Clark says, "Johnnie Mac Walters truly believed, as the oft-quoted maxim puts it, that 'A public office is a public trust.' I felt privileged to know him."

 

Johnnie Mac Walters  

 

 

 

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Additional Sponsors Pushes 2014 Total to 130K
The month of July brought six additional sponsors with contributions of $5000 each for the upcoming Boston conference, bringing the total sponsorship to $130K, a new record for NAFUSA.

Locke Lord

Locke Lord is a full service, international law firm with approximately 650 lawyers, including NAFUSA board member Paul Coggins, a partner in the Dallas office, and Tim Johnson, a partner in the Houston office.

Guidepost Solutions

Guidepost Solutions LLC is a global investigations, compliance and security firm serving companies, government agencies, individuals, and their counsel.

Navigant

Navigant is a specialized, global expert services firm, with services including a wide range of financial management services, investigation services, litigation support services, and business management consulting services.

Houlihan Lokey

Houlihan Lokey serves a wide variety of clients by providing services in corporate finance, financial advisory services and financial restructuring. 

GrantThornton
Grant Thornton is a member of Grant Thornton International Ltd, one of the world's leading organizations of independent audit, tax and advisory firms, with more than 500 partners and 6,000 employees. 

FTI Consulting

FTI Consulting is a global business advisory firm that provides multidisciplinary solutions to complex challenges and opportunities. 

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National Association of Former United States Attorneys (NAFUSA).
  
Richard A. Rossman
Executive Director
27 Oakland Park
Pleasant Ridge, Michigan 48069
Phone: 248-548-8289