Daily Archives: March 29, 2005

James A. Hippard, RIP

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albertusmagnus.jpgOne of the true characters of the University of Houston Law Center over the past generation — James A. Hippard — died this past Friday at the age of 78 after a long battle with Parkinson’s Disease.
After working his way through the then new University of Houston Law Center during the mid-1950’s, Professor Hippard went on to receive his Masters in Law from New York University, and then returned to UH where he taught Evidence, Criminal Law and Procedure, and Civil Procedure for many years. An accomplished trial lawyer, Professor Hippard peppered his classes with the practical aspects of handling cases and his emphasis on trial techniques eventually led the school to name its annual Moot Court competition in his honor. While in law school, I took Texas Civil Procedure from Professor Hippard, and my lasting memory of him is his quick wit and uncommon grace.
A memorial service for Professor Hippard will take place this afternoon at 3 p.m. in the chapel of the Geo. H. Lewis & Sons Funeral Home, 1010 Bering in Houston.

Meanwhile, the Enron investigation goes on and on and on

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enron endless.gifThis Mary Flood Houston Chronicle article reports that a second grand jury has been empaneled to replace the original federal grand jury that has been investigating the Enron scandal for the past three years. According to Ms. Flood, Enron Task Force prosecutors informed the new grand jurors that they should expect to remain working on the Enron case until at least November, 2006.
The first Enron grand jury indicted 23 people in connection with the Enron scandal. Six of those 23 pled guilty, five were convicted in the Nigerian Barge case — which is remarkably the only criminal case that has gone to trial to date in connection with the Enron affair — and one of the two former Enron employee-defendants in that trial was acquitted. The other 11 indicted persons still await trial.
Quare: If it takes over three years to figure out how to indict someone, then doesn’t that length of time, in and of itself, indicate that reasonable doubt exists that a crime occurred in regard to matters under investigation?
Meanwhile, in regard to the Nigerian Barge case, the U.S. Chamber of Commerce took the unusual step of filing an amicus curie brief in the case this past week on the issue of sentencing. The Chamber of Commerce brief focuses on the market loss issue, which could have a big impact on U.S. District Judge Ewing Werlein‘s decision on sentencing the convicted defendants in the case.

The Lord of Regulation goes after the Oracle of Omaha

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buffett way.jpgAlmost on cue, this Wall Street Journal article($) is reporting that Warren Buffett, the famed investor who is chairman and CEO of Berkshire Hathaway Inc., will be questioned by regulators next month over his involvement in the transaction between Berkshire’s General Re insurance unit and American International Group Inc. that has led to the resignation of Maurice “Hank” Greenberg as AIG’s chairman and CEO.
Here are the previous posts on the probe into AIG and Berkshire, and a NY Post article from last week that reported on a leak from New York Attorney General Eliot Spitzer‘s office that Mr. Buffett was not a target of the investigation.
H’mm. I guess Mr. Spitzer has changed his mind.
Mr. Buffett’s interview is scheduled for April 11, a day before Mr. Greenberg’s interview unless he has decided to assert his Fifth Amendment privilege in light to his resignation from AIG. At this point, Mr. Spitzer’s office and the Securities and Exchange Commission are handling the probe, although Justice Department lawyers will also be present at both interviews.
Mr. Buffett will be questioned specifically about his involvement in a 2000 reinsurance transaction between AIG and General Re that regulators contend allowed AIG to boost its financial position improperly. The transaction shifted half a billion of expected claims to AIG from General Re along with a commensurate amount of premiums. AIG booked the premiums as revenue and then added $500 million to its reserves to account for its obligation to pay the claims at a time when market analysts were questioning whether AIG had adequate liability reserves. Regulators contend that the premium was designed to ensure that AIG was not at risk and, therefore, that the half billion was improperly booked as premium revenue. For its trouble, General Re received a $5 million commission on the deal and now even more investigative scrutiny into similar transactions with other companies.