pdf

Racanelli's and Heiss's Representation of Former GE Capital Executive Reported by Law360

September 15, 2011 A September 14, 2011, Law360 article noted that O'Melveny & Myers White Collar Defense and Corporate Investigations Practice partners Howard Heiss and Mark Racanelli are representing former GE Capital Corp. executive Peter S. Grimm, who faces government charges along with two others in connection with municipal finance contracts affecting a financial institution. In the article, "Ex-GE Execs Oppose Statute Review In Bid-Rigging Case," Law360 reports that the O'Melveny partners, who practice in the Firm's New York office, have asked a New York federal judge to deny a request by prosecutors to reconsider the length of the statute of limitations on some charges Grimm faces.

The government's request followed a decision on August 25, 2011, by US District Judge Harold Baer that prosecutors did not allege that the bank, which settled charges brought against it by the government, suffered any actual loss. He also ruled that the five-year statute of limitations applied and dismissed a wire fraud count as time-barred, but held in place the conspiracy counts against Grimm and the others.

Law360 reported that the defendants argue that "there is nothing to clarify or reconsider" because the settlement between the bank and the government cannot be used as evidence that the defendants' alleged conspiracy had an affect on the bank. The news service quoted their motion: "The decision by Financial Institution A — a public company in a regulated industry — to pay a fine and buy peace with the government to avoid an almost certainly catastrophic indictment was not a loss directly caused by the conduct charged in the indictment. It was a loss directly caused by the bank's cost-benefit analysis."

The case is US v. Carollo et al., case number 1:10-cr-00654.