Doral Financial Scandal: Sammy Levis Guilty of Wire Fraud
Mario S. Levis, aka “Sammy Levis,” was found guilty on securities and wire fraud charges after a five-week jury trial before U.S. District Judge Thomas P. Griesa for his role in a scheme to defraud investors and potential investors in the stock of Puerto Rico-based Doral Financial Corporation (Doral) that took place while he was the Treasurer and Senior Executive Vice President of Doral, Preet Bharara, the U.S. Attorney for the Southern District of New York, announced today. The scheme, occurring between 2001 and 2005, involved misrepresentations that Levis made regarding certain core assets of Doral. An aggregate decline in shareholder value of approximately $4 billion followed the unraveling of the scheme.
According to the superseding indictment and the evidence at trial:
Doral, with mortgage banking operations in Puerto Rico and New York City, was a leading residential mortgage lender in Puerto Rico. Between 2001 and 2005, Levis corrupted the process by which Doral determined the publicly reported value of certain non-cash assets carried on Doral’s financial books called “interest-only strips” (IOs). Doral represented to the public, in its annual financial statements, that the aggregate value of its IOs, and company earnings associated with those IOs, were increasing substantially year after year. By the beginning of 2005, Doral publicly announced a streak of 28 quarters of “record earnings” based in significant part on the stated value of its IOs.
During the same time, Doral’s stock price steadily increased from approximately $10 per share in early 2000 to almost $50 at the end of 2004. Also during this time frame, Levis and other members of his family were substantial holders of Doral securities. Between 2001 and 2004, the value of Levis’s stock in Doral tripled to over $60 million.
In its public filings with the U.S. Securities and Exchange Commission (SEC), Doral represented that the value of its IOs was based, in part, on two “outside” and “independent” expert valuations provided to Doral on a quarterly basis. According to Doral’s filings with the SEC and representations by Levis to investors, these outside independent valuators were performing the valuation using their own economic and portfolio assumptions.
In fact, however, Levis thoroughly corrupted those valuations. For example, the valuation provided by a Morgan Stanley trader in fact involved the trader merely recopying numbers provided by Levis without any other work whatsoever, and then subsequent attempts by Levis to conceal that fact from Doral’s auditors and lawyers. The other valuation from Popular Securities (Popular) actually involved Levis dictating key assumptions for Popular to use in performing its valuation analysis. In both cases, Levis failed to inform the valuators that Doral was treating their valuations as independent or citing their work in Doral’s SEC filings.
In March 2005, when an executive at Popular directly asked Levis whether Popular’s valuation was being used as an independent valuation, Levis denied that Popular was one of the independent valuations. Later, when investors pressed Levis to identify the sources of the independent valuations described in Doral’s SEC filings, he falsely told investors that he could not identify the sources due to confidentiality agreements.
Levis also materially misrepresented to the investing public — in direct communications with investors, investor representatives, and market analysts — certain specific characteristics of the Doral IO portfolio. Specifically, among other things, Levis falsely claimed provision in Doral’s loan-sale agreements called “caps,” which would purportedly function to prevent substantial write-downs of the IOs if interest rates continued to rise.
Beginning in mid-January 2005, when Doral announced an approximate $97.5 million write-down of the stated value of its IOs attributed to rising interest rates, and Levis’ scheme concerning the IO valuations began to unravel, the market price of Doral’s common stock began to drop steadily from its high of almost $50 per share. By the time Levis resigned from Doral in late August 2005, the price of Doral’s shares had fallen more than 70 percent to approximately $14.13 per share. In total, the company’s shareholders had suffered an aggregate decline in shareholder value of approximately $4 billion.
Levis was found guilty of one count of securities fraud (Count One) and two counts of wire fraud (Counts Three and Five). The jury found Levis not guilty of one count of wire fraud (Count Four), and the Court dismissed an additional count of wire fraud (Count Two). Levis faces a maximum sentence of 20 years in prison on the securities fraud count and a fine of the greatest of $5 million or twice the gross gain or loss from the offense. For each of the wire fraud counts on which he was found guilty, Levis faces a maximum sentence of 20 years in prison and a fine of the greatest of $250,000 or twice the gross gain or loss from the offense.
Levis, 46, of San Juan, P.R., is scheduled to be sentenced by Judge Griesa on Sept. 14, 2010.
U.S. Attorney Preet Bharara stated: “Senior executives of publicly traded companies have to tell the investing public the truth, even when it hurts. It’s that simple. Today, a Manhattan jury found that Mario Levis of Doral intentionally flouted this bedrock principle, causing a colossal $4 billion loss to his company’s shareholders. Our office, working more closely than ever with the FBI and the SEC, will continue to pursue corrupt professionals in the financial services industry whose greed-driven misconduct hurts honest investors and threatens our markets.”
U.S. Attorney Bharara praised the work of the FBI and thanked the SEC for its assistance in the case.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The case is being prosecuted by the Securities and Commodities Fraud Task Force of the U.S. Attorney’s Office. Assistant U.S. Attorneys William J. Stellmach and Daniel A. Braun and Special Assistant U.S. Attorney Jason M. Anthony, are in charge of the prosecution.
What to Do When Divorcing But You Can’t Afford a Lawyer
My name is Linda. I am 40 years old. I have been married to my current husband for 15 years now, but we have recently agreed to separate and file for divorce. I intend to make sure that my interests are adequately represented in the proceedings so that I can get my just share of our conjugal assets. Unfortunately, I am afraid that I might not have enough financial resources to pay for a solicitor to represent me because all my assets are held in our home and family business that we operated together. I don’t want to take out a loan. Are there other options that I can pursue to have money to pay the solicitor?
According to Brookman Solicitors founding partner Henry Brookman, it appears clearly that Linda’s husband exercises economic control over the marriage. This is dangerous assertion, as it makes Linda believe that she has no power to demand for divorce terms other than the settlement that her husband is offering.
What Linda doesn’t know is that her husband is legally obligated to support her. Such support, given the circumstances, necessarily includes paying her solicitor fees.
The courts have time and again emphasized that equal access to justice covers the requirement that every party to a controversy must be given proper representation.
To enjoy this legal right, Linda has to provide the court with evidence to show that she has no financial capacity to pay her legal fees, and that she no other reliable source of income or funds such as the possibility of contracting a litigation loan.
This may entail exhibiting before the courts that Linda is unable to meet the repayments for a previous loan as they fall due, or that she stands to lose her house to creditors—indications that any litigation lender is not likely to approve her loan application, if she decided to apply.
If the court finds sufficient evidence to prove that Linda has no sufficient resources, it can issue an order for the husband to provide maintenance pending suit. By virtue of this order, Linda can be assured that her husband will pay for the proceedings, including solicitor fees, until the divorce decree is granted.
These orders are typically enforced through installment payments, although they can also be required to be paid by straight lump sum.
The court is free to take the actual costs into consideration at the final hearing for the purpose of reconciling them and making sure that both Linda and her husband have been paid their own costs.
Aside from requesting the court for a maintenance order, there are no other reasonable options available for Linda. Solicitors may be public servants, but they are not allowed to render their services based on a “no win, no fee” when it comes to divorce proceedings.
Sometimes, though, law firms may agree to work and put off billing until the settlement has been paid. Unfortunately, law firms are now required to remit taxes while they perform the service. This means the solicitor will have to shoulder their taxes themselves, which they are unlikely to agree to do.
Based on her account, it also appears that Linda could be ineligible to receive legal aid because she owns business assets. In case she does qualify, it is also highly unlikely that any solicitor will agree to work for her given that the legal aid rates are incredible low.
If Linda’s joint business with her husband is not substantial, then Linda may explore the option of securing a litigation loan from certain banks that offer them.
The first step that Linda should take is consult with her solicitor to discuss possible options for financing the litigation. In which case, she may need to raise the money to pay for the initial interview.
Top 100 Law Schools in America for 2010
Here is the rankings list of the 2010 top 100 law schools in the United States of America. Whether you’re looking for the top 10, top 50, or top 100 in Tier 1 law schools they’re all in the list below. The rankings are structured like this:
(Ranking) (Name of University)
(Location)
(2008-2009 Tuition)
(Total Full-Time Student Enrollment in Fall of 2008)
If we’re looking at Yale University, for example:
1 Yale University
New Haven, CT
Full-time: $46,000 per year
Total Full-Time Student Enrollment: 588
Then this means that Yale is ranked #1 in the United States, located in New Haven, CT, had a 2008-2009 tuition of $46,000 per year and has a total full-time student enrollment of 588.
Any comments, questions, or opinions make sure to leave a comment at the end!
1 Yale University
New Haven, CT
Full-time: $46,000 per year
Total Full-Time Student Enrollment: 588
2 Harvard University
Cambridge, MA
Full-time: $41,500 per year
Total Full-Time Student Enrollment:1,730
3 Stanford University
Stanford, CA
Full-time: $42,080 per year
Total Full-Time Student Enrollment: 539
4 Columbia University
New York, NY
Full-time: $45,674 per year
Total Full-Time Student Enrollment: 1,266
5 New York University
New York, NY
Full-time: $42,890 per year
Total Full-Time Student Enrollment: 1,423
6 University of California–Berkeley
Berkeley, CA
In-state, full-time: $30,944 per year, Out-of-state, full-time: $43,189 per year
Total Full-Time Student Enrollment: 865
6 University of Chicago
Chicago, IL
Full-time: $41,835 per year
Total Full-Time Student Enrollment: 593
8 University of Pennsylvania
Philadelphia, PA
Full-time: $44,330 per year
Total Full-Time Student Enrollment: 786
9 University of Michigan–Ann Arbor
Ann Arbor, MI
In-state, full-time: $41,500 per year, Out-of-state, full-time: $44,500 per year
Total Full-Time Student Enrollment: 1,151
10 Duke University
Durham, NC
Full-time: $42,938 per year
Total Full-Time Student Enrollment: 611
10 Northwestern University
Chicago, IL
Full-time: $45,332 per year
Total Full-Time Student Enrollment: 779
10 University of Virginia
Charlottesville, VA
In-state, full-time: $36,800 per year, Out-of-state, full-time: $41,800 per year
Total Full-Time Student Enrollment: 1,155
13 Cornell University
Ithaca, NY
Full-time: $46,670 per year
Total Full-Time Student Enrollment: 591
14 Georgetown University
Washington, DC
Full-time: $42,065 per year
Total Full-Time Student Enrollment: 1,631
15 University of California–Los Angeles
Los Angeles, CA
In-state, full-time: $31,103 per year, Out-of-state, full-time: $41,624 per year
Total Full-Time Student Enrollment: 1,012
15 University of Texas–Austin
Austin, TX
In-state, full-time: $23,427 per year, Out-of-state, full-time: $38,697 per year
Total Full-Time Student Enrollment: 1,233
17 Vanderbilt University
Nashville, TN
Full-time: $42,206 per year
Total Full-Time Student Enrollment: 578
18 University of Southern California (Gould)
Los Angeles, CA
Full-time: $44,510 per year
Total Full-Time Student Enrollment: 605
19 Washington University in St. Louis
St. Louis, MO
Full-time: $40,436 per year
Total Full-Time Student Enrollment: 831
20 Boston University
Boston, MA
Full-time: $38,266 per year
Total Full-Time Student Enrollment: 822
20 Emory University
Atlanta, GA
Full-time: $39,776 per year
Total Full-Time Student Enrollment: 697
20 University of Minnesota–Twin Cities
Minneapolis, MN
In-state, full-time: $24,686 per year, Out-of-state, full-time: $35,089 per year
Total Full-Time Student Enrollment: 780
23 Indiana University–Bloomington (Maurer)
Bloomington, IN
In-state, full-time: $19,988 per year, Out-of-state, full-time: $37,373 per year
Total Full-Time Student Enrollment: 612
23 University of Illinois–Urbana-Champaign
Champaign, IL
In-state, full-time: $31,262 per year, Out-of-state, full-time: $39,262 per year
Total Full-Time Student Enrollment: 587
23 University of Notre Dame
Notre Dame, IN
Full-time: $37,650 per year
Total Full-Time Student Enrollment: 558
26 Boston College
Newton, MA
Full-time: $38,450 per year
Total Full-Time Student Enrollment: 799
26 University of Iowa
Iowa City, IA
In-state, full-time: $17,916 per year, Out-of-state, full-time: $34,684 per year
Total Full-Time Student Enrollment: 616
28 College of William and Mary (Marshall-Wythe)
Williamsburg, VA
In-state, full-time: $20,146 per year, Out-of-state, full-time: $30,346 per year
Total Full-Time Student Enrollment: 626
28 George Washington University
Washington, DC
Full-time: $40,100 per year
Total Full-Time Student Enrollment: 1,398
30 Fordham University
New York, NY
Full-time: $42,076 per year
Total Full-Time Student Enrollment: 1,229
30 University of Alabama
Tuscaloosa, AL
In-state, full-time: $12,564 per year, Out-of-state, full-time: $24,158 per year
Total Full-Time Student Enrollment: 481
30 University of North Carolina–Chapel Hill
Chapel Hill, NC
In-state, full-time: $15,045 per year, Out-of-state, full-time: $27,867 per year
Total Full-Time Student Enrollment: 735
30 University of Washington
Seattle, WA
In-state, full-time: $19,585 per year, Out-of-state, full-time: $28,809 per year
Total Full-Time Student Enrollment: 534
30 Washington and Lee University
Lexington, VA
Full-time: $36,297 per year
Total Full-Time Student Enrollment: 391
35 Ohio State University (Moritz)
Columbus, OH
In-state, full-time: $20,919 per year, Out-of-state, full-time: $35,869 per year
Total Full-Time Student Enrollment: 670
35 University of California–Davis
Davis, CA
In-state, full-time: $28,511 per year, Out-of-state, full-time: $40,756 per year
Total Full-Time Student Enrollment: 578
35 University of Georgia
Athens, GA
In-state, full-time: $13,090 per year, Out-of-state, full-time: $29,940 per year
Total Full-Time Student Enrollment: 660
35 University of Wisconsin–Madison
Madison, WI
In-state, full-time: $14,730 per year, Out-of-state, full-time: $34,654 per year
Total Full-Time Student Enrollment: 788
39 University of California (Hastings)
San Francisco, CA
In-state, full-time: $28,864 per year, Out-of-state, full-time: $40,089 per year
Total Full-Time Student Enrollment: 1,244
40 Wake Forest University
Winston-Salem, NC
Full-time: $33,950 per year
Total Full-Time Student Enrollment: 463
41 Brigham Young University (Clark)
Provo, UT
Full-time: $18,480 per year
Total Full-Time Student Enrollment: 458
41 George Mason University
Arlington, VA
In-state, full-time: $18,732 per year, Out-of-state, full-time: $31,948 per year
Total Full-Time Student Enrollment: 454
43 University of Arizona (Rogers)
Tucson, AZ
In-state, full-time: $19,584 per year, Out-of-state, full-time: $32,221 per year
Total Full-Time Student Enrollment: 469
43 University of Maryland
Baltimore, MD
In-state, full-time: $22,044 per year, Out-of-state, full-time: $33,323 per year
Total Full-Time Student Enrollment: 714
45 American University (Washington)
Washington, DC
Full-time: $39,402 per year
Total Full-Time Student Enrollment: 1,235
45 Tulane University
New Orleans, LA
Full-time: $38,724 per year
Total Full-Time Student Enrollment: 746
45 University of Colorado–Boulder
Boulder, CO
In-state, full-time: $22,048 per year, Out-of-state, full-time: $32,560 per year
Total Full-Time Student Enrollment: 520
45 University of Utah (Quinney)
Salt Lake City, UT
In-state, full-time: $13,371 per year, Out-of-state, full-time: $28,593 per year
Total Full-Time Student Enrollment: 385
49 Southern Methodist University (Dedman)
Dallas, TX
Full-time: $36,546 per year
Total Full-Time Student Enrollment: 527
49 Yeshiva University (Cardozo)
New York, NY
Full-time: $42,570 per year
Total Full-Time Student Enrollment: 975
51 University of Florida (Levin)
Gainesville, FL
In-state, full-time: $12,339 per year, Out-of-state, full-time: $31,704 per year
Total Full-Time Student Enrollment: 1,224
52 Florida State University
Tallahassee, FL
In-state, full-time: $12,352 per year, Out-of-state, full-time: $32,364 per year
Total Full-Time Student Enrollment: 771
52 University of Cincinnati
Cincinnati, OH
In-state, full-time: $19,362 per year, Out-of-state, full-time: $33,764 per year
Total Full-Time Student Enrollment: 361
52 University of Connecticut
Hartford, CT
In-state, full-time: $18,480 per year, Out-of-state, full-time: $38,976 per year
Total Full-Time Student Enrollment: 479
55 Arizona State University (O’Connor)
Tempe, AZ
In-state, full-time: $16,294 per year, Out-of-state, full-time: $28,858 per year
Total Full-Time Student Enrollment: 539
55 Case Western Reserve University
Cleveland, OH
Full-time: $36,674 per year
Total Full-Time Student Enrollment: 624
55 Pepperdine University
Malibu, CA
Full-time: $37,590 per year
Total Full-Time Student Enrollment: 640
55 University of Kentucky
Lexington, KY
In-state, full-time: $15,258 per year, Out-of-state, full-time: $26,436 per year
Total Full-Time Student Enrollment: 395
59 University of Houston
Houston, TX
In-state, full-time: $18,447 per year, Out-of-state, full-time: $25,977 per year
Total Full-Time Student Enrollment: 748
59 University of Tennessee–Knoxville
Knoxville, TN
In-state, full-time: $12,084 per year, Out-of-state, full-time: $29,304 per year
Total Full-Time Student Enrollment: 468
61 Brooklyn Law School
Brooklyn, NY
Full-time: $42,375 per year
Total Full-Time Student Enrollment: 1,211
61 Lewis & Clark College (Northwestern)
Portland, OR
Full-time: $30,436 per year
Total Full-Time Student Enrollment: 523
61 University of San Diego
San Diego, CA
Full-time: $39,204 per year
Total Full-Time Student Enrollment: 795
61 Villanova University
Villanova, PA
Full-time: $33,490 per year
Total Full-Time Student Enrollment: 744
65 Baylor University (Umphrey)
Waco, TX
Full-time: $36,080 per year
Total Full-Time Student Enrollment: 418
65 Georgia State University
Atlanta, GA
In-state, full-time: $10,674 per year, Out-of-state, full-time: $30,330 per year
Total Full-Time Student Enrollment: 472
65 Pennsylvania State University (Dickinson)
University Park, PA
In-state, full-time: $31,942 per year, Out-of-state, full-time: $31,942 per year
Total Full-Time Student Enrollment: 547
65 Temple University (Beasley)
Philadelphia, PA
In-state, full-time: $16,758 per year, Out-of-state, full-time: $28,702 per year
Total Full-Time Student Enrollment: 773
65 University of Kansas
Lawrence, KS
In-state, full-time: $15,033 per year, Out-of-state, full-time: $26,376 per year
Total Full-Time Student Enrollment: 489
65 University of Missouri
Columbia, MO
In-state, full-time: $15,984 per year, Out-of-state, full-time: $30,486 per year
Total Full-Time Student Enrollment: 448
71 Loyola Marymount University
Los Angeles, CA
Full-time: $38,450 per year
Total Full-Time Student Enrollment: 992
71 University of Miami
Coral Gables, FL
Full-time: $36,594 per year
Total Full-Time Student Enrollment: 1,205
71 University of Oklahoma
Norman, OK
In-state, full-time: $16,766 per year, Out-of-state, full-time: $26,695 per year
Total Full-Time Student Enrollment: 517
71 University of Pittsburgh
Pittsburgh, PA
In-state, full-time: $24,162 per year, Out-of-state, full-time: $32,306 per year
Total Full-Time Student Enrollment: 698
75 Louisiana State University–Baton Rouge (Hebert)
Baton Rouge, LA
In-state, full-time: $13,143 per year, Out-of-state, full-time: $23,239 per year
Total Full-Time Student Enrollment: 565
75 University of Nevada–Las Vegas (Boyd)
Las Vegas, NV
In-state, full-time: $11,032 per year, Out-of-state, full-time: $21,332 per year
Total Full-Time Student Enrollment: 371
77 Illinois Institute of Technology (Chicago-Kent)
Chicago, IL
Full-time: $35,741 per year
Total Full-Time Student Enrollment: 705
77 Rutgers, the State University of New Jersey–Camden
Camden, NJ
In-state, full-time: $23,191 per year, Out-of-state, full-time: $33,385 per year
Total Full-Time Student Enrollment: 545
77 Seattle University
Seattle, WA
Full-time: $33,784 per year
Total Full-Time Student Enrollment: 812
77 Seton Hall University
Newark, NJ
Full-time: $41,160 per year
Total Full-Time Student Enrollment: 717
77 University of Denver (Sturm)
Denver, CO
Full-time: $33,780 per year
Total Full-Time Student Enrollment: 839
77 University of New Mexico
Albuquerque, NM
In-state, full-time: $11,593 per year, Out-of-state, full-time: $25,693 per year
Total Full-Time Student Enrollment: 346
77 University of Oregon
Eugene, OR
In-state, full-time: $20,570 per year, Out-of-state, full-time: $25,610 per year
Total Full-Time Student Enrollment: 531
77 University of Richmond (Williams)
Richmond, VA
Full-time: $31,510 per year
Total Full-Time Student Enrollment: 477
85 Santa Clara University
Santa Clara, CA
Full-time: $1,225 per credit
Total Full-Time Student Enrollment: 732
85 University at Buffalo–SUNY
Buffalo, NY
In-state, full-time: $14,685 per year, Out-of-state, full-time: $21,485 per year
Total Full-Time Student Enrollment: 739
87 DePaul University
Chicago, IL
Full-time: $35,500 per year
Total Full-Time Student Enrollment: 909
87 Indiana University–Indianapolis
Indianapolis, IN
In-state, full-time: $19,473 per year, Out-of-state, full-time: $38,911 per year
Total Full-Time Student Enrollment: 638
87 Loyola University Chicago
Chicago, IL
Full-time: $35,334 per year
Total Full-Time Student Enrollment: 638
87 Marquette University
Milwaukee, WI
Full-time: $31,020 per year
Total Full-Time Student Enrollment: 563
87 Rutgers, the State University of New Jersey–Newark
Newark, NJ
In-state, full-time: $23,007 per year, Out-of-state, full-time: $32,777 per year
Total Full-Time Student Enrollment: 582
87 St. John’s University
Jamaica, NY
Full-time: $40,600 per year
Total Full-Time Student Enrollment: 719
87 University of South Carolina
Columbia, SC
In-state, full-time: $17,718 per year, Out-of-state, full-time: $35,490 per year
Total Full-Time Student Enrollment: 682
94 Catholic University of America (Columbus)
Washington, DC
Full-time: $36,400 per year
Total Full-Time Student Enrollment: 592
94 Northeastern University
Boston, MA
Full-time: $38,514 per year
Total Full-Time Student Enrollment: 615
94 St. Louis University
St. Louis, MO
Full-time: $33,382 per year
Total Full-Time Student Enrollment: 784
94 University of Arkansas–Fayetteville
Fayetteville, AR
In-state, full-time: $357 per credit, Out-of-state, full-time: $712 per credit
Total Full-Time Student Enrollment: 403
98 University of Louisville (Brandeis)
Louisville, KY
In-state, full-time: $13,744 per year, Out-of-state, full-time: $28,292 per year
Total Full-Time Student Enrollment: 351
98 University of San Francisco
San Francisco, CA
Full-time: $35,880 per year
Total Full-Time Student Enrollment: 521
100 Gonzaga University
Spokane, WA
Full-time: $30,263 per year
Total Full-Time Student Enrollment: 545
