Did the superstar lawyer cross ethical lines in his representation of Harvey Weinstein?
“Lawyers are not permitted to engage in dishonesty or deceit,” Kathleen Clark, a Washington University law professor who specializes in legal ethics, told me. “Black Cube seems to make its living by engaging in dishonesty and deceit, at least in part.”
.. he hired several other lawyers to represent him,” he wrote. Those lawyers then sought out Black Cube and other investigators and wrote up a contract for their services. Boies, by his own telling, then returned to sign a contract drafted by other lawyers between a client he wasn’t representing and private investigators he didn’t choose or oversee in a matter he says he had declined to take part.
.. He and his firm have a long relationship with Weinstein. In 2015, the Hollywood producer hired Boies to represent him in contract negotiations with the Weinstein Company
.. During those negotiations, the company’s board of directors learned of confidential settlements between Weinstein and three or four accusers. Boies told the Times he had given some legal advice to Weinstein for one of those settlements but did not specify which.
.. The New Yorker speculated that Boies’s involvement with the Black Cube letter may have been an effort to keep secret the investigators’ activities through attorney-client privilege. But that privilege would only exist between Weinstein and Boies, not between Boies and a third party, Clark said. “There’s another privilege that’s less powerful called work-product privilege, which can apply if information is developed in anticipation of litigation,” she explained. The first paragraph of the contract between Boies Schiller and Black Cube asserts that the work was for “litigation-support services,”
.. Stephen Gillers, a New York University law professor who focuses on legal ethics, said it’s not unusual for law firms to hire private investigators, especially for corporations and wealthy clients. But he noted that firms are obligated to ensure those investigators abide by the same ethical boundaries as the lawyers themselves. “Most prominently, a lawyer cannot contact an opposing client whom he knows is represented by counsel,” Gillers pointed out. “You can’t go talk to an opponent. You have to go through his lawyer.”
.. The New York State Bar Association’s rules of professional conduct instruct lawyers and law firms to “[not] engage in any conduct involving dishonesty, fraud, deceit, or misrepresentation.” Those rules also forbid lawyers from taking adverse action against a current client by negotiating against them or representing an opponent in litigation. But state disciplinary bodies, which are often underfunded, typically only enforce these rules against the worst offenders in the legal community, Gillers said... law firms usually try to avoid conflict-of-interest situations because of the potential financial impact... The fear of lawsuits also acts as a deterrent. “Firms worry about civil liability, malpractice liability, breach-of-fiduciary-duty liability, they worry about disqualification from a matter,” Gillers said. “And they worry about adverse publicity.”
David Boies: the super-lawyer who fell to earth
He has aided fallen financiers including AIG’s Hank Greenberg and Enron’s Andy Fastow.
.. But he is also an inveterate risk taker — a lover of the action in Las Vegas as well as at his firm Boies Schiller & Flexner — who goes the extra mile for clients. He did a favour for Mr Weinstein, and it is costing him in the court of public opinion.
Mr Boies signed a contract on July 11 hiring a business intelligence firm called Black Cube to spy on Mr Weinstein’s accusers, The New Yorker magazine reported. Run by former Israeli intelligence agents, its operatives used false identities to gain the trust of the people in the case and collect information about them. Its objectives included helping Mr Weinstein “stop the publication of a negative article in a leading NY newspaper”.
However, the mis-step by Mr Boies was hardly an isolated incident. After allegations emerged in 2015 that the blood tests designed by Silicon Valley laboratory Theranos were inaccurate, Mr Boies could be found sitting on the board of the company while his firm was providing it legal advice.
.. he would listen to his mother read and memorise the information. His powers of recall served him well.
.. His courtroom style is notoriously disarming. His attire — typically, a Lands’ End jacket and trousers — comes straight from the heartland. But his questions are hard. After he was done with Westmoreland, the general said he wished he had a lawyer like Mr Boies.
.. Mr Boies matched wits so successfully with Bill Gates that the software supremo was left shaken. “I’m the one with the good memory,” Mr Gates protested to Vanity Fair. “He’s the one trying to confuse people.”
.. Mr Olson. “He has overcome a reading disability. He processes information very, very quickly. He remembers things very well.”
.. He is a man known for conducting several telephone conversations at once. Even as he was responding to the Weinstein scandal, Mr Boies returned to the headlines in a controversial dispute involving American football.
David Boies’s Egregious Involvement With Harvey Weinstein
“If evidence could be uncovered to convince The Times the charges should not be published, I did not believe, and do not believe, that that would be adverse to The Times’s interests.”
.. But as The Times’s leadership pointed out in its own statement, it never contemplated that the firm would contract with investigators to do opposition research on its own reporters. Unsurprisingly, The Times considered this conduct to be a “grave betrayal of trust,” and grounds to terminate the firm. It is hard to imagine how a lawyer of Mr. Boies’s caliber would not have anticipated this reaction.
It gets worse. Bar ethical rules prohibit lawyers not only from engaging in fraud, deceit or misrepresentation, but also from inducing others to do so. They also specifically forbid lawyers from directing non-lawyers to engage in prohibited conduct. Black Cube employees were in fact involved in such deceit; investigators misrepresented their identities in order to gain confidences from women whom Mr. Weinstein had harassed or assaulted.
Although Mr. Boies now claims that he had no knowledge of such practices, he surely was in a position to have such knowledge and had reason to suspect them. He had hired an organization known for hardball tactics and reportedly received reports of their findings.
.. Mr. Boies stated: “Mr. Weinstein has himself recognized that his contact with women was indefensible and incredible hurtful. In retrospect, I knew enough in 2015 that I believe I should have been on notice of a problem and done something about it.”
.. When leaders with such high visibility cut ethical corners, it sends a powerful and corrosive message.
Mysterious Strangers Dog Controversial Insurer’s Critics
Chris Irons, an analyst at research firm GeoInvesting LLC, which has published several reports critical of AmTrust’s accounting practices, said he was contacted in July by a woman who identified herself as a London-based consultant to a European software multimillionaire seeking contributors to a new investment website. He agreed to meet at a Philadelphia-area restaurant.
Chris Irons, an analyst at research firm GeoInvesting LLC, which has published several reports critical of AmTrust’s accounting practices, said he was contacted in July by a woman who identified herself as a London-based consultant to a European software multimillionaire seeking contributors to a new investment website. He agreed to meet at a Philadelphia-area restaurant.
.. AmTrust, a fast-growing, New York-based insurance company with $5.5 billion in 2016 revenue, in recent years has attracted skepticism about its results from investors betting against its stock
.. Other AmTrust critics described similar odd approaches to The Journal, including an investor who is betting against AmTrust’s stock; a journalist who has published articles critical of AmTrust’s founders; and Mr. Irons’s boss, who said he had met two months earlier with a different “consultant” dangling a lucrative offer, who then brought up AmTrust.
.. Battles between companies and short sellers sometimes turn nasty and both sides in such disputes occasionally have used private investigators to dig up information, usually in a legitimate fashion. The investigators often are hired through law firms and the information sometimes is used in litigation.
.. An AmTrust spokeswoman said the company didn’t employ investigators to probe its critics. It declined to say whether its lawyers or others in its service had done so.
.. Investigators using fake identities and misrepresentations could run afoul of several state and federal laws, said Gavin P. Lentz, a Philadelphia attorney and former prosecutor, who isn’t involved in the matter. A company that hires such investigators potentially could be held civilly liable, Mr. Lentz said, because these are agents acting on their behalf
“Generally speaking, as a private investigator you can’t misrepresent yourself” in the U.S., said James Cesarano, vice president of ethics and compliance at Kroll Associates Inc., a corporate investigations firm.
.. AmTrust has been in a long-running battle with short sellers—investors who bet against its stock—and other critics, who have claimed the insurer burnishes its financials partly by underestimating future claims and through reinsurance transactions with overseas affiliates that had the effect of hiding losses.