Sign up to save your podcasts
Or
Share Legal News for Tues 8/19 - FBI Arrests for the Gram, New FBI Co-Leadership, ABA Curriculum Changes, SEC Whistleblower Claims, and Louisiana Tax Rebate Fiasco
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Legal News for Tues 8/19 - FBI Arrests for the Gram, New FBI Co-Leadership, ABA Curriculum Changes, SEC Whistleblower Claims, and Louisiana Tax Rebate Fiasco
This Day in Legal History: Salem Witchcraft Executions
On August 19, 1692, five individuals—George Burroughs, John Proctor, George Jacobs Sr., John Willard, and Martha Carrier—were executed by hanging in Salem, Massachusetts, after being convicted of witchcraft. These executions occurred during the height of the infamous Salem witch trials, a dark episode in colonial American history fueled by religious fervor, mass hysteria, and deeply flawed legal proceedings. George Burroughs, a former minister, recited the Lord’s Prayer on the gallows—a feat believed to be impossible for a witch—which unsettled some spectators but did not halt the execution. John Proctor, a well-respected farmer, had been openly critical of the trials and was likely targeted for his outspoken skepticism.
Martha Carrier was labeled “the Queen of Hell” by her accusers, a title steeped in misogyny and fear. The trials heavily relied on spectral evidence—claims of visions and dreams—which would later be deemed inadmissible in more rational courts. Governor William Phips halted the trials just two months later, in part because of growing public backlash and the implausibility of the accusations.
These executions mark one of the final mass hangings of the Salem witch trials, which ultimately led to the deaths of 20 people and the imprisonment of many more. Legal scholars have since examined the trials as a case study in the dangers of due process violations, mass panic, and unchecked judicial power. In the centuries that followed, the state of Massachusetts gradually acknowledged the injustice, with the last of the condemned officially exonerated only in 2001. The Salem trials remain a cautionary tale in American legal history, illustrating how fear and ideology can warp legal institutions.
The White House has been sending social media teams to accompany FBI agents during arrests in Washington, D.C., as part of President Donald Trump's recent federal takeover of the city’s policing efforts. According to sources briefed on the situation, the teams are capturing footage to promote the administration’s crackdown on crime, raising serious concerns among legal experts. The move is considered highly unusual and potentially problematic, as it blurs the lines between law enforcement and political messaging, potentially violating Justice Department norms meant to prevent political interference in criminal investigations.
One recent example involved a professionally produced video of FBI agents arresting Sean Charles Dunn, a former DOJ employee, which was posted to the White House’s social media and has garnered millions of views. Legal experts warn that filming arrests—especially in non-public spaces—could infringe on suspects' Fourth Amendment privacy rights and complicate the legal proceedings by generating prejudicial pre-trial publicity.
The White House has also reportedly embedded personnel within the FBI command post and is tracking arrest statistics, suggesting an unusually direct involvement in federal law enforcement operations. While the administration claims this is part of its transparency initiative, critics see it as political theater designed to favorably shape public perception. Experts argue that such tactics risk undermining public confidence in the FBI’s independence and could erode the bureau’s credibility.
White House sending social media teams with FBI on some arrests in D.C., sources say | Reuters
The Trump administration appointed Missouri Attorney General Andrew Bailey as co-deputy director of the FBI, sharing the post with conservative media personality Dan Bongino. This newly created position signals a shift in leadership at the Bureau, with FBI Director Kash Patel calling Bailey an essential addition to the agency. Bailey, a war veteran and Missouri's attorney general since 2023, will resign his current role effective September 8.
Bailey expressed gratitude for the appointment, emphasizing his commitment to supporting President Trump and Attorney General Pam Bondi's law enforcement agenda. Bondi, who welcomed Bailey’s appointment, praised his legal and military background. Bailey had previously been mentioned as a potential pick for U.S. attorney general under Trump’s second term but was not ultimately chosen.
Bongino, now Bailey’s co-deputy, recently made headlines for clashing with Bondi over the DOJ’s handling of the Jeffrey Epstein case and had reportedly considered resigning. The appointment, first reported by Fox News Digital, has raised eyebrows given Bongino's media background and the political nature of the move.
Missouri attorney general named as co-deputy director of FBI | Reuters
The American Bar Association (ABA) is attempting to revise and soften a controversial proposal that would double the number of required hands-on learning credits for law students, following strong pushback from many law school deans. The updated plan, released August 15, would raise the experiential learning requirement from six to twelve credits but introduces greater flexibility and delays implementation to at least 2032.
Key changes include allowing students to earn three of those credits in their first year—previously prohibited—and permitting partial credit for traditional courses that incorporate practical elements like simulated client work or drafting exercises. These adjustments aim to address concerns about feasibility, especially for part-time students or programs with limited resources.
Despite these revisions, critics remain skeptical. Many deans argue that the ABA has not shown sufficient evidence that increased experiential credits would improve legal education outcomes, and they warn the rule could increase costs and overburden students and schools. Supporters, including clinical faculty, argue that more hands-on training is essential for preparing practice-ready attorneys and believe the financial concerns are overstated.
Some, like Cornell's Gautam Hans, expressed cautious optimism about the changes, while others, like Northwestern's Daniel Rodriguez, say the revisions don’t go far enough to address core issues, particularly the lack of data supporting the proposed changes.
ABA seeks to salvage law school hands-on learning proposal amid pushback from deans | Reuters
In an exclusive at Bloomberg Law, an SEC whistleblower alleges Paul Weiss and Reed Smith helped conceal $500 million in biotech risk.
Two top law firms are accused in a whistleblower complaint filed with the Securities and Exchange Commission of hiding a legal dispute that could have jeopardized a $500 million biotech merger. The complaint, obtained exclusively by Bloomberg Law, was filed by Joel Cohen—best known for co-writing Toy Story—who claims he and his wife were defrauded out of at least $38 million by Sofie Biosciences Inc.
Cohen alleges Sofie and its lawyers concealed his legal threats from disclosures during the company’s majority-stake sale to private equity firm Trilantic North America. Central to the dispute is Sofie’s use of a $2.5 million appraisal from Kroll LLC to value a cancer-imaging facility acquired in 2019—an amount Cohen claims was intentionally low in order to reduce his and other noteholders’ payout in Series B preferred shares.
The whistleblower complaint accuses Paul Weiss partner Jeffrey Marell and Reed Smith partner Michael Sanders of knowingly excluding Cohen’s legal demands from merger documents, possibly violating federal securities laws. Internal emails cited in the complaint show Sofie executives feared the deal would fall apart if Cohen’s claims became public.
Sofie and its legal team argue Cohen waived his rights through broad releases signed during the merger and that the appraisal complied with contractual terms. However, Cohen and his wife had assigned their claims to a separate LLC, which the whistleblower says was not covered by those waivers.
Two related lawsuits filed in California claim that Reed Smith represented conflicting interests and helped structure the asset financing in a way that disadvantaged noteholders. The firm denies any wrongdoing and says it never represented Cohen or the other lenders. A court ruling is expected soon on whether Cohen can access documents related to the Kroll valuation.
Paul Weiss, Reed Smith Accused of Coverup by SEC Whistleblower
In my column for Bloomberg this week, I talk a bit about state sales tax kickback schemes. Louisiana’s 2012 “procurement processing program” was originally promoted as a way to support research and development, but instead has funneled the vast majority of collected sales tax—over 90% in some years—back to consultants and out-of-state companies. The scheme works by enticing payment processing subsidiaries to reroute sales through Louisiana, allowing the state to collect taxes on transactions that didn’t actually occur within its borders. These taxes were meant to support research institutions, but in practice, virtually none of the funds have reached them. In 2023 alone, $67 million of the $73 million collected was rebated, and 2022 figures were worse.
This program reflects a broader issue across many states: public incentive deals are being handed out with little to no accountability. Unlike private contracts, where each party protects its own interests and can demand repayment when promises aren’t kept, public deals often lack enforceable clawback provisions. Louisiana does include a limited recapture clause in its statute—but it only ensures proper paperwork, not fulfillment of public benefits.
Other states like California have taken modest steps, such as requiring disclosure of such deals, but few have adopted strong clawback mechanisms. Until public incentive agreements require concrete, verifiable results to justify tax rebates—and include provisions to recover funds when promises fall through—they risk becoming little more than tax shelters for private interests.
Louisiana’s Tax-Share Problems Prove Clawbacks Must Be Standard
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe
View all episodes
By Andrew and Gina LeaheyThis Day in Legal History: Salem Witchcraft Executions
On August 19, 1692, five individuals—George Burroughs, John Proctor, George Jacobs Sr., John Willard, and Martha Carrier—were executed by hanging in Salem, Massachusetts, after being convicted of witchcraft. These executions occurred during the height of the infamous Salem witch trials, a dark episode in colonial American history fueled by religious fervor, mass hysteria, and deeply flawed legal proceedings. George Burroughs, a former minister, recited the Lord’s Prayer on the gallows—a feat believed to be impossible for a witch—which unsettled some spectators but did not halt the execution. John Proctor, a well-respected farmer, had been openly critical of the trials and was likely targeted for his outspoken skepticism.
Martha Carrier was labeled “the Queen of Hell” by her accusers, a title steeped in misogyny and fear. The trials heavily relied on spectral evidence—claims of visions and dreams—which would later be deemed inadmissible in more rational courts. Governor William Phips halted the trials just two months later, in part because of growing public backlash and the implausibility of the accusations.
These executions mark one of the final mass hangings of the Salem witch trials, which ultimately led to the deaths of 20 people and the imprisonment of many more. Legal scholars have since examined the trials as a case study in the dangers of due process violations, mass panic, and unchecked judicial power. In the centuries that followed, the state of Massachusetts gradually acknowledged the injustice, with the last of the condemned officially exonerated only in 2001. The Salem trials remain a cautionary tale in American legal history, illustrating how fear and ideology can warp legal institutions.
The White House has been sending social media teams to accompany FBI agents during arrests in Washington, D.C., as part of President Donald Trump's recent federal takeover of the city’s policing efforts. According to sources briefed on the situation, the teams are capturing footage to promote the administration’s crackdown on crime, raising serious concerns among legal experts. The move is considered highly unusual and potentially problematic, as it blurs the lines between law enforcement and political messaging, potentially violating Justice Department norms meant to prevent political interference in criminal investigations.
One recent example involved a professionally produced video of FBI agents arresting Sean Charles Dunn, a former DOJ employee, which was posted to the White House’s social media and has garnered millions of views. Legal experts warn that filming arrests—especially in non-public spaces—could infringe on suspects' Fourth Amendment privacy rights and complicate the legal proceedings by generating prejudicial pre-trial publicity.
The White House has also reportedly embedded personnel within the FBI command post and is tracking arrest statistics, suggesting an unusually direct involvement in federal law enforcement operations. While the administration claims this is part of its transparency initiative, critics see it as political theater designed to favorably shape public perception. Experts argue that such tactics risk undermining public confidence in the FBI’s independence and could erode the bureau’s credibility.
White House sending social media teams with FBI on some arrests in D.C., sources say | Reuters
The Trump administration appointed Missouri Attorney General Andrew Bailey as co-deputy director of the FBI, sharing the post with conservative media personality Dan Bongino. This newly created position signals a shift in leadership at the Bureau, with FBI Director Kash Patel calling Bailey an essential addition to the agency. Bailey, a war veteran and Missouri's attorney general since 2023, will resign his current role effective September 8.
Bailey expressed gratitude for the appointment, emphasizing his commitment to supporting President Trump and Attorney General Pam Bondi's law enforcement agenda. Bondi, who welcomed Bailey’s appointment, praised his legal and military background. Bailey had previously been mentioned as a potential pick for U.S. attorney general under Trump’s second term but was not ultimately chosen.
Bongino, now Bailey’s co-deputy, recently made headlines for clashing with Bondi over the DOJ’s handling of the Jeffrey Epstein case and had reportedly considered resigning. The appointment, first reported by Fox News Digital, has raised eyebrows given Bongino's media background and the political nature of the move.
Missouri attorney general named as co-deputy director of FBI | Reuters
The American Bar Association (ABA) is attempting to revise and soften a controversial proposal that would double the number of required hands-on learning credits for law students, following strong pushback from many law school deans. The updated plan, released August 15, would raise the experiential learning requirement from six to twelve credits but introduces greater flexibility and delays implementation to at least 2032.
Key changes include allowing students to earn three of those credits in their first year—previously prohibited—and permitting partial credit for traditional courses that incorporate practical elements like simulated client work or drafting exercises. These adjustments aim to address concerns about feasibility, especially for part-time students or programs with limited resources.
Despite these revisions, critics remain skeptical. Many deans argue that the ABA has not shown sufficient evidence that increased experiential credits would improve legal education outcomes, and they warn the rule could increase costs and overburden students and schools. Supporters, including clinical faculty, argue that more hands-on training is essential for preparing practice-ready attorneys and believe the financial concerns are overstated.
Some, like Cornell's Gautam Hans, expressed cautious optimism about the changes, while others, like Northwestern's Daniel Rodriguez, say the revisions don’t go far enough to address core issues, particularly the lack of data supporting the proposed changes.
ABA seeks to salvage law school hands-on learning proposal amid pushback from deans | Reuters
In an exclusive at Bloomberg Law, an SEC whistleblower alleges Paul Weiss and Reed Smith helped conceal $500 million in biotech risk.
Two top law firms are accused in a whistleblower complaint filed with the Securities and Exchange Commission of hiding a legal dispute that could have jeopardized a $500 million biotech merger. The complaint, obtained exclusively by Bloomberg Law, was filed by Joel Cohen—best known for co-writing Toy Story—who claims he and his wife were defrauded out of at least $38 million by Sofie Biosciences Inc.
Cohen alleges Sofie and its lawyers concealed his legal threats from disclosures during the company’s majority-stake sale to private equity firm Trilantic North America. Central to the dispute is Sofie’s use of a $2.5 million appraisal from Kroll LLC to value a cancer-imaging facility acquired in 2019—an amount Cohen claims was intentionally low in order to reduce his and other noteholders’ payout in Series B preferred shares.
The whistleblower complaint accuses Paul Weiss partner Jeffrey Marell and Reed Smith partner Michael Sanders of knowingly excluding Cohen’s legal demands from merger documents, possibly violating federal securities laws. Internal emails cited in the complaint show Sofie executives feared the deal would fall apart if Cohen’s claims became public.
Sofie and its legal team argue Cohen waived his rights through broad releases signed during the merger and that the appraisal complied with contractual terms. However, Cohen and his wife had assigned their claims to a separate LLC, which the whistleblower says was not covered by those waivers.
Two related lawsuits filed in California claim that Reed Smith represented conflicting interests and helped structure the asset financing in a way that disadvantaged noteholders. The firm denies any wrongdoing and says it never represented Cohen or the other lenders. A court ruling is expected soon on whether Cohen can access documents related to the Kroll valuation.
Paul Weiss, Reed Smith Accused of Coverup by SEC Whistleblower
In my column for Bloomberg this week, I talk a bit about state sales tax kickback schemes. Louisiana’s 2012 “procurement processing program” was originally promoted as a way to support research and development, but instead has funneled the vast majority of collected sales tax—over 90% in some years—back to consultants and out-of-state companies. The scheme works by enticing payment processing subsidiaries to reroute sales through Louisiana, allowing the state to collect taxes on transactions that didn’t actually occur within its borders. These taxes were meant to support research institutions, but in practice, virtually none of the funds have reached them. In 2023 alone, $67 million of the $73 million collected was rebated, and 2022 figures were worse.
This program reflects a broader issue across many states: public incentive deals are being handed out with little to no accountability. Unlike private contracts, where each party protects its own interests and can demand repayment when promises aren’t kept, public deals often lack enforceable clawback provisions. Louisiana does include a limited recapture clause in its statute—but it only ensures proper paperwork, not fulfillment of public benefits.
Other states like California have taken modest steps, such as requiring disclosure of such deals, but few have adopted strong clawback mechanisms. Until public incentive agreements require concrete, verifiable results to justify tax rebates—and include provisions to recover funds when promises fall through—they risk becoming little more than tax shelters for private interests.
Louisiana’s Tax-Share Problems Prove Clawbacks Must Be Standard
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe