Latin America is becoming increasingly important to international law firms. With the region’s economies outpacing those of the United States and Europe, many foreign law firms are reporting strong growth in Latin American markets, especially Brazil.

The editorial staff of Latin Business Chronicle has taken a closer look at some of the leading attorneys from international law firms that are involved in the growing legal boom in Latin America.

US District Judge Jed Rakoff, who issued his ruling on 24 August, said that the Racketeer Influenced and Corrupt Organizations Act (RICO) could not be applied to the acts alleged by Cedeño because they occurred in Venezuela, outside the jurisdiction of the US.

Cedeño accused the defendants of having imprisoned him without justification for almost three years and of damaging his BVI company, Cedel International Investment. He hoped to win damages for money he alleges was obtained by the defendants in Venezuela through fraud, extortion and abuse of power, and was later laundered in the US.

He was accused in 2007 of tax fraud, for allegedly circumventing Venezuelan foreign exchange rules. Cedeño was paroled on 10 December 2009 by Venezuelan Judge Maria Lourdes Afiuni before fleeing to the US a week later. Afiuni was later jailed having released him when he was retained longer than is allowed under Venezuelan law.

"It is thus apparent on the face of the amended complaint that, although the dreadful events alleged therein may be perfectly plausible given what is generally know about the Chávez regime, the connections to the United States may be too peripheral or problematic to support a RICO lawsuit brought here," said Judge Rakoff when issuing his verdict.

But Rakoff did grant a motion for default judgement against Domingo Martinez, who lives in the US, and Intech, a company on the US-side of the conspiracy, and referred the case to another judge to conduct an inquest on damages. The judge referred to an earlier US Supreme Court decision, Morrison v. National Australia Bank, which limited RICO's reach to actions inside the US.

'It was a correct ruling on the law and a significant victory for the Venezuelan authorities who have asked the U.S. for the extradition of Cedeño," said Michael Diaz, partner at Diaz, Reus, & Targ, LLP and counsel to Venezuelan businessman Ruben Rogelio Idler Osuna, one of the defendants.

Diaz added that the court's ruling would "severely impair Cedeño's legal strategy of using a RICO lawsuit as a vehicle to avoid extradition and obtain political asylum in the US. 

Miami, FL (PRWEB) August 31, 2010 -- On Friday, August 27, Taiwanese businessman Yi-Lan "Kevin" Chen was sentenced to 3 1/2 years in federal prison by U.S. District Court Judge Adalberto Jordan, successfully avoiding a severe sentence for his role in the sale of "dual purpose" electronics to Iran in violation of U.S. laws and Office of Foreign Assets Control (OFAC) regulations.

Chen, 40, had faced up to 20 years on each of three charges after he was arrested in February in Guam for his involvement in a shipment to Iran of some 8,500 glass-to-metal seals and 120 military-grade connectors. U.S. Commerce Department investigators said Chen had arranged at least 30 banned shipments to Iran since 2007, falsely telling U.S.-based suppliers that the goods were destined for Hong Kong or Taiwan.

Chen's attorney, Robert Targ of Diaz Reus & Targ, said: “Kevin allowed himself to be drawn into this scheme that ran counter to his otherwise exemplary life as a businessman.”

Michael Diaz Jr.  added: “We are both relieved and pleased that our hard work and efforts paid off and persuaded the District Court Judge and the U.S. Attorney’s Office that this was an isolated event driven largely by a fundamental misunderstanding by Chen, an Asian businessman engaged in international trade with Iran without knowing the real consequences of violating the trade embargo and U.S. OFAC regulations.”

3 1/2-year sentence ordered in Iran missile part case

By CURT ANDERSON

AP Legal Affairs Writer

MIAMI -- A Taiwanese businessman was sentenced Friday to 3 1/2 years in U.S. prison for violating the Iran trade embargo by arranging illegal shipments of parts that can be used for military or nuclear purposes, including in missiles and unmanned drones.

Yi-Lan "Kevin" Chen, 40, had faced up to 20 years on each of three charges, but U.S. District Judge Adalberto Jordan cited Chen's remorse, lack of prior criminal record and immediate admission of guilt as reasons for a lighter sentence.

"I don't believe any longer sentence is necessary to protect society from criminal conduct in the future," Jordan said.

Chen was arrested in February in Guam in the midst of a transaction to ship to Iran some 8,500 glass-to-metal seals and 120 military-grade connectors. Commerce Department investigators said he had arranged at least 30 banned shipments to Iran since 2007, falsely telling U.S.-based suppliers that the goods were destined for Hong Kong or Taiwan.

Chen's attorney, Robert Targ, said the scheme ran counter to Chen's otherwise exemplary life as a businessman.

Banquero venezolano Eligio Cedeño

• Foto  

BP Under Investigation 

• By Steven Andersen

Given the unfathomable magnitude of the ongoing BP oil spill in the Gulf of Mexico, the announcement of a federal criminal investigation didn’t come as a particular surprise. As one solution after another failed and the intensity of the catastrophe mounted, the crisis became political as well as environmental—with action from the Justice Department all but inevitable.

"We must … ensure that anyone found responsible for this spill is held accountable," announced Attorney General Eric Holder in June. "That means enforcing the appropriate civil—and if warranted, criminal—authorities to the full extent of the law."

What form that investigation takes and just how long it lasts are matters of some debate. But like the spill itself, the inquest has the dubious distinction of displacing the financial crisis from the top headlines. The oil spill investigation will face unusual public scrutiny, with proportionate pressure on the DOJ to yield results.

While few companies will ever face a debacle of this magnitude, the case provides in-house counsel with object lessons on criminal environmental liability, crisis management and the growing need to play a greater role on the operations side of corporations.

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Supreme Court Insider / published by National Law Journal and ALM

Commentary: Let's change the way justices are appointed

Carlos Gonzalez

July 28, 2010

President Obama was elected on a platform of change. Yet, when it comes to appointing federal judges, especially justices to the U.S. Supreme Court, change is the last thing we have seen. Consider Elena Kagan. I was disappointed by her nomination, not because I disagree with her views on key issues, but because she so easily fits into what has become the mold for a Supreme Court justice. Now, I am confident that Kagan will make an excellent judge. Her educational and professional qualifications are impeccable, her intellectual capacity unquestionable. My beef is different. I am concerned that eligible justices are being vetted against a set of criteria that is so limited that we are excluding many competent men and women from the Court. The last three individuals to be appointed and confirmed have all shared similarly impressive backgrounds — elite schools, followed by a period of public service, culminating in the most prestigious judicial appointment in the land.

There is now a formula that aspiring justices (yes, there are people who plan these things) can follow. As a result, we can expect future justices to share similar traits — intelligent (as measured by the specific schools they attended), accomplished (as proven by the prestigious offices they have held in the executive and judicial branches) and noncontroversial (as made clear by the absence of a paper trail beyond the most arcane academic writings). Don't get me wrong. We need bright and successful men and women serving on our nation's highest court. But do all of our justices have to be near clones of one another, distinguishable only by their preferred method of constitutional interpretation? Has it really come down to whether the nominee considers the Constitution to be "living" or "dead"?

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Perspectives: RICO Cases Can Be Double-Edge

Swords

In fairy tales, finding a magic lamp with a genie isn't always a good thing.

Sure, the genie can grant three wishes, but the wishes often end up bringing unexpected consequences.

A labyrinthine lawsuit working its way through federal court could tap the magic number three by evoking the Racketeer Influenced and Corrupt Organizations Act. RICO can offer both sides in this case certain benefits, such as triple damages, if they win the case.

In this lawsuit, major players in the workers' compensation arena are accusing each other of conspiring and racketeering to downplay their premiums in order to dodge paying their fair share of residual market losses. The companies -- American International Group Inc. on one side and companies including Liberty Mutual Group, Travelers Insurance Group, Hartford Financial Services Group Inc., Ace INA Holdings Inc. on the other -- have accused each other of violating RICO.

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Asian And Middle Eastern Business Ethics Hit Latin America

Submitted by Steven Meyerowitz on Tue, 07/06/2010 -

We recently spoke with Michael Diaz, Jr., the Miami-based managing partner at Diaz, Reus & Targ, LLP, who has spent more than 20 years in private practice defending and investigating Latin American money laundering and public corruption cases. A Cuban-born bilingual international attorney, Diaz (pictured) is a former U.S. government prosecutor who investigated and prosecuted highly publicized corruption, economic, drug, and other cases. Excerpts from his remarks appear below.  

“Beware when doing business in Latin America. Thanks to well financed and growing Chinese and Middle Eastern investment there, fraud and bribery are growing as well. Business practices considered unethical, fraudulent, and illegal in the United States, such as bribery and financial ‘favors,’ are largely tolerated and thriving in the developing regions of the Western Hemisphere, with little risk to the perpetrators.

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Por GERARDO REYES

greyes@elnuevoherald.com

Es raro que un alto tribunal de Estados Unidos acuda a las analogías cinematográficas para resumir los casos que dirime.

Un panel de jueces del 11no. Circuito de Apelaciones de la Florida cayó en la tentación la semana pasada al describir las aventuras y desventuras que rodearon la captura del tristemente célebre ex jefe de inteligencia del gobierno del Perú, Vladimiro Montesinos.

"Los hechos de este caso se leen como las más reciente película de suspenso'', afirmaron los jueces.

La frase es parte de la introducción de un fallo que exime al gobierno de Perú de pagar unos $10 millones a un informante que supuestamente facilitó el arresto de Montesinos en el 2001.

La historia, en efecto, tiene visos de un guión de intrigas políticas, espionaje, videos y decepción con un final feliz para el gobierno de Perú y un traspiés para el experto venezolano en contrainteligencia José Guevara y sus abogados.

Los jueces de apelación anularon el fallo de esa misma corte que había condenado al gobierno peruano a pagar a Guevara una recompensa de $5 millones más los intereses que podrían sumar otros $5 millones.

En su segundo pronunciamiento, la corte asegura que el sistema judicial estadounindese no tiene jurisdicción sobre el caso, debido a que ninguna de las actividades que generaron el presunto compromiso de Perú de pagar al informante tuvieron consecuencias inmediatas en Estados Unidos.

Y las "consecuencias inmediatas'' son requisitos esenciales para admitir la jurisdicción del caso, según el fallo.

Michael Díaz, del equipo de defensa de Guevara, criticó el fallo argumentando que es inconsistente con el anterior y que se extralimitó en el análisis de los documentos de apelación.

Para Díaz, la credibilidad de las autoridades de Estados Unidos y el extranjero que dependen de la información pagada de personas que toman riesgos para colaborar, como lo hizo Guevara, "ha recibido un poderoso golpe''.

Los abogados de Guevara habían ganado un batalla significativa en el proceso.

Lograron que la corte no aplicara el tradicional principio de inmunidad soberana de los países. En su lugar, la corte sostuvo que el ofrecimiento de recompensas de un gobierno es un acto comercial, no soberano, que puede ser objeto de litigios judiciales.

On Friday, a Florida court overturned a lower court's ruling that the Peruvian government must pay US$5 million plus interest to Guevara, arguing that under US law sovereign governments are protected from lawsuits in the country.

Michael Diaz, of Miami firm, Diaz, Reus & Targ, LLP, says, 'The critical need and ability for law enforcement and government agencies around the world to maintain their credibility to compensate those who are willing to take risks, stepping forward and providing information and cooperation in exchange for a promise of reward money, has taken a mighty blow if this opinion is to stand.'

Peru offered a US$5 million award in 2001 for the Montesinos' capture, who was wanted on charges of drug dealing, money laundering, arms trafficking, extortion and murder.

ATLANTA -- A federal appeals court has blocked a reward of more than $10 million for a Venezuelan man who helped Peru capture a notorious spymaster in a tantalizing case that the panel said "read like the latest spy thriller."

The 11th Circuit Court of Appeals issued a 2-1 ruling Friday reversing a judge's decision that Jose Guevara should get the $5 million reward plus at least $5 million interest. The ruling concluded that Peru was shielded by U.S. laws that protect sovereign governments from lawsuits.

"We are honored to represent ProMexico at the World Expo in Shanghai," said Michael Diaz, Jr., Diaz Reus managing partner. "Our global firm and ProMexico share the same strategic vision, and the World Expo offers an exciting venue for both of us to effectively promote international trade between the two regions and around the world."

Eager to promote international trade between Mexico and China (and Asia more generally), ProMexico – the government institution responsible for strengthening Mexico’s participation in the global economy – has entered into an exclusive agreement with Diaz Reus & Targ LLP, under which the firm will serve as legal advisors to the Mexican delegation during the World Expo in Shanghai.

JD Supra Featured Q&A: Michael Diaz Jr.

Cuban-born Miami attorney Michael Diaz, Jr. earned his stripes as a prosecutor under Janet Reno in the 1980s after graduating from the University of Miami School of Law. He went into private practice in 1990 and subsequently founded Diaz Reus, a noted international law firm focused largely on international financial fraud, including recouping assets for victims of alleged Madoff and Stanford Ponzi schemes. He spoke to us from his Miami office.

A US judge has frozen $2.43bn of Argentine assets in the US at the behest of class-action plaintiffs, dealing a blow to Argentina as it hopes to win over creditors holding some $18bn in unpaid debt since its 2001 default.

The embargo comes less than a week after Amado Boudou, the economy minister, revealed that the take-up for the early tender period of the swap – in which institutions could sign up without incurring penalties – was $8.5bn, lower than $10bn expected before.

Economy ministry officials could not be reached for comment on the embargo ruling.

Michael Díaz, a lawyer for the plaintiffs, told the Financial Times that the order in no way interfered with Argentina’s swap, which runs until June 7 and which the government hopes will close the chapter on its painful default and allow it to return to raising money on global markets.

May 24 (Bloomberg) -- U.S. District Judge Thomas Griesa can walk down the streets of New York unrecognized, even after handling Chrysler LLC's bankruptcy and a trademark lawsuit last year by film director Woody Allen.

In Argentina, where for more than seven years a return to international capital markets has rested on his rulings, the 79- year-old, semi-retired judge is a star. Buenos Aires newspapers kept his face on front pages as judgments for defaulted bonds in his court piled up to about $6.4 billion. When he agreed not to impede an $18.3 billion bond swap, they portrayed him as a hero.

Eight plaintiff class-action groups holding defaulted Argentine bonds obtained a ruling from Griesa in a $2.43 billion case, Diaz Reus & Targ, LLP said in a statement on Marketwire today.

Read full article on Bloomberg...
 

The timing is terrible for Argentina. Less than a week after it announced the take-up in the early phase of its debt swap was lower than had previously been expected ($8.5bn compared with expectations of more than $10bn), US judge Thomas Griesa has now embargoed $2.43bn in assets held by Argentina’s state Banco de la Nación in the US in response to class-action lawsuits.

NEW YORK (May 24) – In response to a request from eight plaintiff class-action groups holding defaulted Argentine bonds, U.S. District Court Judge Thomas P. Griesa today issued a restraining order that freezes up to $2.43 billion in Argentine government assets held by Banco de la Nación Argentina.

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On February 18 & 19, 2010, the Florida International Bankers Association hosted its 10^th Annual Anti Money Laundering Conference in Miami, Florida.  Diaz Reus & Targ, LLP proudly returned as a Platinum Sponsor of this important conference for the fourth year in a row.  At this year’s gathering, attorney Carlos F. Gonzalez, a partner resident in the Firm’s Miami and Shanghai offices, participated in a panel discussion entitled, “The Convergence of Financial Fraud and AML.”  The session, attended by nearly 1,000 participants, explored the new role banks and other financial institutions will play in fighting the massive frauds that characterized 2009.  Read the summary of Mr. Gonzalez’s remarks here.

 Dubai: A High Rise, Then a Steep Fall

By CHIP CUMMINS, STEFANIA BIANCHI and MIRNA SLEIMAN

DUBAI -- As financial crisis roiled much of the world in October 2008, the head of Dubai's biggest state-owned developer unveiled his latest megaproject: a $38 billion development that would include a tower nearly two-thirds of a mile tall.

"I'm sure most of you are asking why we're launching this, and you'd be mad not to question it," said the executive, Chris O'Donnell, at a news conference. Though there would be economic ups and downs in the years needed to build the tower, he told listeners, demand would continue to outstrip supply.

"The fundamentals in the market are too strong," he said. "There won't be a crash."

Since then, residential real-estate prices in Dubai have slumped by almost 50%. Developers have slashed jobs and scrapped projects. Groundbreaking on the tower was long ago put on hold. The yearlong retrenchment culminated in last week's surprise announcement that Dubai would seek to restructure $26 billion of debts owed by Dubai World, the holding company for many of the government's port, infrastructure and real-estate businesses.