Throughout the week over at Securities Docket, I highlight the most interesting columns and blog posts from around the web on the subjects of SEC enforcement and securities litigation. Here is a digest of my picks for the week ending February 11.

Hedge funds, banks pile into Madoff claims market

Reuters | Laurence Fletcher | Feb 11, 2011

Hedge funds and banks are piling into the secondary market for claims against fraudster Bernard Madoff, buoyed by the trustee's success in recouping victim's cash, one of Britain's biggest hedge fund market makers said.

Madoff Lawsuit Turns on What JPMorgan Knew of Fraud

Bloomberg | Ann Woolner | Feb 9, 2011

In criminal law, there isn't a lot of room between known and should have known. Turning your head to avoid facing the truth is called willful blindness, or in some circles, plausible deniability. It probably won't save you from getting nailed for your crime. Now, Irving Picard is trying to bring that idea to bankruptcy court, where, as trustee in the Bernard Madoff matter, he chases claw backs for victims of the Ponzi scheme. In lawsuits, he says Madoff's bankers and several investors either knew the fund manager was crooked or should have known. It doesn't matter which, he says.

Bribery and Corruption, World Cup Selection and the FCPA

KYC360 | Thomas Fox | Feb 7, 2011

FIFA is generally recognized as a, non-US, Non-Governmental Organization (NGO) and therefore the US Foreign Corrupt Practices Act (FCPA) does not apply to it. But we thought that it might be of use to review some of the tactics, as reported in the WSJ, that Qatar used to secure the 2022 World Cup bid, in the context of what might be allowed under the FCPA. It should be noted that, although still waiting to be implemented, the UK Bribery Act would apply to UK companies and citizens involved in the matter because there is no public/private distinction under the Bribery Act and unlike the FCPA, the Bribery Act does not have require that a bribe be offer or paid to a foreign governmental official, only that a bribe or offer to bribe be made.

The Bribery Act is a case of 'right idea, wrong time' for the Government

The Telegraph | Stephen Parkinson | Feb 7, 2011

The previous Government was also sensible to create a new offence which put the onus on companies to demonstrate they had adequate procedures to combat bribery. But an Act which was conceived in one set of circumstances is to be delivered in another which is entirely different. In prosperous times the impact of this legislation – painful and difficult at first but ultimately beneficial to business – conceivably could have been borne. But these are not such times. UK businesses need to be given every help to compete.

5 Key Lessons From Stanford D&O Ruling

law.com | Lorelie S. Masters and Brian S. Scarbrough | Feb 5, 2011

A recent decision from the U.S. District Court for the Southern District of Texas demonstrates the serious consequences of failing to negotiate for narrow policy exclusions in directors and officers liability ("D&O") insurance coverage.

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