Mr. Madel served as lead counsel representing a senior vice president of a federally-insured bank against an extensive federal indictment that alleged eight crimes against our client, including bank fraud (one count), misapplication of bank funds (five counts), and federal false statements (two counts). The Federal Bureau of Investigation (FBI) and the Federal Deposit Insurance Corporation (FDIC) jointly investigated the case, and it was prosecuted by two Assistant U.S. Attorneys from the U.S. Attorney's Office for the District of Minnesota. After the U.S. Government rested their case, Mr. Madel and his team moved the U.S. District Court to dismiss all charges against our client. The U.S. District Court Judge granted this motion in part and dismissed the two federal false-statement charges. However, the Judge stated that the U.S. Government's evidence with respect to the bank fraud and misapplication of bank funds charges was "strong." The Judge submitted the remaining six charges to the jury one day later. On April 6, 2012, after four days of deliberation, the jury returned "not guilty" verdicts for each of the remaining charges, resulting in a complete victory for our client. Local media covered the trial each day, and after the verdict, quoted Mr. Madel: "'It's been an honor representing an innocent man,' said Chris Madel, [the bank officer's] defense attorney. [Mr. Madel's client] had tears in his eyes as he and his lawyer emerged from the courtroom."
Lead counsel representing an independent three-member Special Committee of the Fiesta Bowl Board of Directors that was headed by a former Chief Justice of the Arizona Supreme Court. The Special Committee was formed to investigate allegations that the Fiesta Bowl had reimbursed employees for campaign contributions, that a prior investigation had covered-up criminal conduct, and that the Fiesta Bowl had made numerous other improper expenditures. Our five-month investigation included 87 interviews of 52 individuals and the review of 55 gigabytes of electronic data and more than 10,000 additional hard copy documents. Our investigation culminated in a 276-page Final Report with 1,562 footnotes and thousands of additional pages of supporting schedules and spreadsheets. The report is publicly available here. The Final Report was covered by dozens of media outlets and has received widespread praise, including:
- The Arizona Republic's Editorial Board stated: "The Fiesta Bowl executive committee should never lose sight of what appears to have saved their event's bacon, at least for now: the unflaggingly candid 276-page report released by the Fiesta Bowl itself, which exposed all those ugly warts." Other reporting from The Arizona Republic referred to the report as "comprehensive."
- A leading legal commentator stated: "Any lawyer or other person asked to lead a special investigation centered on wrongdoing of the type that now surrounds the Fiesta Bowl should read RKMC's report first."
- Arizona Attorney General Tom Horne called the report "comprehensive."
- The Bowl Championship Series (BCS) Task Force -- a Task Force that was created to review the Fiesta Bowl's conduct and our Report -- called our investigation "exceedingly thorough" and noted that had the Special Committee not produced such a "thorough and open report" the Task Force "almost certainly would have recommended termination of the BCS Groups' involvement with the Fiesta Bowl."
- NCAA President Mark Emmert stated that "The [Fiesta Bowl] special report was obviously extremely detailed and outlined behaviors none of us would be supportive of and I think the board was forthright in putting all that information before the various bodies."
- Sports Illustrated's Austin Murphy noted that the Special Committee's investigation (in contrast to an earlier investigation) was "decidedly not a whitewash."
Lead counsel representing Best Buy Co., Inc. in internal investigation, criminal referral to federal government, and related civil litigation against supplier. After discovering employee's acceptance of bribes from supplier relating to alleged $40+ million scheme to defraud, led team that referred matter to U.S. Attorney's Office, Federal Bureau of Investigation, Internal Revenue Service, and U.S. Postal Inspector's Office. In February 2009, the employee pled guilty to conspiracy to commit mail fraud and money laundering. In July 2009, the United States indicted the primary owner of supplier. In June 2010, a federal jury convicted the primary owner for 24 of 26 alleged federal crimes, including conspiracy to commit mail fraud, money laundering, income-tax evasion, and conspiracy to defraud the United States. In December 2010, the primary owner received a 15-year sentence, the employee received a 7 1/2-year sentence, and Judge Davis ordered all defendants to pay over $32 million in restitution.
Minnesota Vikings. Lead counsel representing the Minnesota Vikings in connection with internal investigation and defense of organization relating to the Arctic Blast in 2003, including allegations of sexual misconduct and improper expenditures.
Lead counsel representing the Minnesota State Board of Public Defense in connection with the State of Minnesota's government shutdown. Coordinated and funded by the Board of Public Defense, Minnesota public defenders represent indigent accused people in each of Minnesota's 87 counties. The State Board of Public Defense sought emergency relief to require the State of Minnesota to fund the public defenders and the courts in the event of a state-government shutdown. Several Minnesota senators, represented by a former state senator, claimed that our requested relief would violate the Minnesota State Constitution. Covering the hearing, the Minneapolis/St. Paul Star Tribune stated that "Madel made the most impassioned arguments, citing three U.S. Supreme Court rulings that mandate continuation of funding for the judiciary: Gideon v. Wainright, requiring effective counsel at public expense for those accused of felonies, Argersinger v. Hamlin, ensuring legal representation of indigents for misdemeanors and In re Gault, extending the same right for juveniles." On June 28, the District Court granted our emergency petition in full, thus requiring the State of Minnesota to fully fund the public defenders and the courts after the government shutdown (which then occurred on July 1, 2011).
Lead counsel representing Digital River, Inc. and Digital River Marketing Solutions, Inc. in internal investigation and subsequent civil investigation relating to alleged conspiracy to commit computer fraud and computer hacking. Within 48 hours of filing suit in May 2010, obtained ex parte federal order to seal the litigation and a separate temporary restraining order prohibiting defendant from, among other things, attempting to sell the alleged stolen data and from destroying all relevant documents. Permanent injunction entered against defendant.
Katun Corporation. Led internal investigation of corporation relating to alleged violations of Foreign Corrupt Practices Act, mail-fraud statutes, wire-fraud statutes, illegal campaign contributions, computer fraud, tax crimes, escheat statutes, and other crimes. Lead counsel defending Katun Corporation in concurrent federal grand-jury investigation. After settling with the United States and paying approximately $11 million, served as lead counsel in settlement reached with former shareholders for $11.65 million. After U.S. District Court held the settlement violated public policy, the Eighth Circuit Court of Appeals reversed and reinstated the settlement. Katun Corp. v. Clarke, 484 F.3d 972 (8th Cir. 2007).
Greg LeMond, et. al v. Blixseth Group, Inc., et. al. Lead counsel representing three-time Tour de France winner, Greg LeMond, a former high-ranking banker at JP Morgan Chase, a Wisconsin corporation, and two other individuals in a minority-shareholder lawsuit against Timothy Blixseth, the then-billionaire majority owner of the elite Yellowstone Club located near Big Sky, Montana, and certain related entities. After receiving a cash and land buy-out offer of less than $12 million collectively, our clients alleged fraudulent practices relating to the management of Yellowstone Club assets. In October 2007, our clients reached a $38 million settlement which required two settlement payments to be made before February 2008. When the defendants did not make the second settlement payment, the suit was renewed and settled for $39.5 million. In this second settlement, our clients also obtained confessions of judgment, a mortgage on Blixseth's former home, and protection against having their Yellowstone Club memberships unfavorably affected. In 2008, Yellowstone Development, LLC and Yellowstone Mountain Club, LLC filed for bankruptcy. Several interested parties in this bankruptcy litigation have relied upon and continue to repeatedly cite our work product in pursuit of claims against the debtors and others.
Lead counsel representing two-time Medal of Valor recipient and 20-year veteran of the Minneapolis Police Department in criminal trial alleging felony false imprisonment, arrest without authority, interference with an emergency call, and disorderly conduct. After the court dismissed the felony false imprisonment and arrest without authority charges for lack of probable cause, obtained jury-trial acquittals of the remaining charges in September 2010. The Minneapolis/St. Paul Star Tribune characterized Mr. Madel's cross examination as "searing."
State of Minnesota v. Kirby Puckett. With former partner B. Todd Jones, defended Major League Baseball Hall of Famer Kirby Puckett against felony false imprisonment and other criminal charges. Upon his acquittal of all charges after jury trial, Mr. Puckett told the gathered media that he "had the greatest lawyers in the world."
Financial corporation. Lead counsel representing corporation regarding investigation by Federal Trade Commission and over 40 states. Reached settlement with states.
Construction corporation. Lead counsel representing construction corporation in internal investigation relating to alleged fraud of supplier. Obtained settlements against certain former employees. No investigation resulted of corporation.
Lead counsel representing Portfolio Recovery Associates (PRA) in defending against class-action counterclaims which sought to invalidate arbitration awards in which the National Arbitration Forum (NAF) acted as the arbitration organization. After the Minnesota Attorney General sued the NAF in 2009, alleging that the NAF was secretly owned by a hedge fund that held a large stake in the debt-collection industry, the NAF settled and numerous consumers filed class actions against the NAF which were consolidated as part of multi-district litigation proceeding (MDL). PRA opted out of the MDL. NAF and other defendants in the MDL ultimately settled by dismissing pending NAF arbitrations and paying over $3 million in cash. The NAF's MDL settlement agreement confirms that the value of the consumer arbitration claims dismissed following the 2009 settlement with the Minnesota Attorney General is at least $1,090,000,000. In November 2010, PRA obtained a dismissal of Defendant/Counterclaimant Freeman's counterclaims with prejudice on the pleadings, as well as an order confirming the arbitration award. After extensive briefing and oral argument, the North Carolina Court of Appeals affirmed that decision. Portfolio Recovery Associates, LLC v. Freeman, No. COA11-220, 2011 N.C. App. LEXIS 2233 (N.C. Ct. App. Oct. 18, 2011).
Lead counsel representing defendants UnitedHealth Group, Inc. and PacifiCare, Inc. in an antitrust lawsuit involving alleged price-fixing and fraud related to prescription drug reimbursement under the federal Medicare Part D program. Plaintiff Omnicare sought damages exceeding $1 billion and permanent injunctive relief. After Mr. Madel argued the summary judgment motion in August 2008, the U.S. District Court granted summary judgment to defendants on all claims in January 2009. Published decision: Omnicare, Inc. v. UnitedHealth Group, Inc., 594 F. Supp. 2d 945 (N.D. Ill. 2009). Summary judgment was subsequently affirmed. Omnicare, Inc. v. UnitedHealth Group, Inc., 629 F.3d 697 (7th Cir. 2011).
Lead counsel representing Minnesota Vikings' wide receiver Bernard Berrian against attempted extortion plot. Obtained ex parte temporary restraining order in U.S. District Court returning client's property and enjoining defendants.
Co-counsel representing defendant Kia Motors America, Inc. with respect to claims grounded in antitrust, the Minnesota Motor Vehicle Sale and Distribution Act, and the Minnesota Unfair Discrimination and Competition Act. In October 2008, U.S. District Court dismissed four of plaintiff's claims with prejudice. Barnett Chrysler Plymouth Co. v. Kia Motors Am., Inc., Civ. No. 08-828 (ADM/JSM) (Oct. 27, 2008).
Mauzy v. Edward Kraemer & Sons, Inc., Civ. No. 02-879 AJB, 2004 U.S. Dist. LEXIS 5098 (Mar. 4, 2004). Lead counsel representing plaintiff top criminal-defense attorney in indemnification dispute relating to defense attorney's defense of client. Obtained plaintiff's summary judgment on liability and damages.
Securities-fraud cases. Lead counsel representing clients against securities-fraud claims brought by, among others, Securities & Exchange Commission and U.S. Department of Justice. Defended broker-dealer in National Association of Securities Dealers' arbitration.
EchoStar v. DirectTV, Circuit City, Best Buy Co., Inc., et. al. Lead counsel representing defendant multi-national consumer-electronics corporation in large antitrust litigation. Obtained dismissal of case with prejudice in favor of client.
Isaiah ("J.R.") Rider, Jr. Defended former Minnesota Timberwolves player J.R. Rider in civil lawsuits relating to incident at Mall of America.
U.S. v. National Automobiles Dealer's Ass'n. While working as a Trial Attorney for the U.S. Department of Justice's Antitrust Division, developed theory and acted as lead counsel in federal government's investigation of the National Automobile Dealers' Association ("N.A.D.A."). Upon the conclusion of Mr. Madel's tenure at the Justice Department, U.S. Department of Justice Assistant Attorney General Anne Bingaman thanked Mr. Madel for developing the case and his "tremendous contribution to the Division in antitrust enforcement."
Selected Speeches
Maintaining the Integrity of Internal Investigations: The Fiesta Bowl Case Study
Minnesota State Bar Association (September 27, 2011)
Internal Investigations: Reveal and Remediate vs. Deny and Defend
Society of Corporate Compliance and Ethics (September 11-14, 2011)
Maintaining the Integrity of Internal Investigations: The Fiesta Bowl Case Study
Ethics & Compliance Officer Association (April 27-29, 2011)
What Criminal Defense Lawyers Should Know About Social Media Web Sites
Webinar (August 2010)
IP Crimes: When Civil Infringement Turns Criminal
Intellectual Property Law Section of the State Bar of California 30th Annual Intellectual Property Institute (November 5, 2005)
Joint Defense and Indemnification
Minnesota CLE, White-Collar Criminal Law Summit 2005 (October 31, 2005)
Winning By The Rules - Tactics and Consideration in the Application of The Federal Rules of Civil Procedure
Robins, Kaplan, Miller & Ciresi L.L.P. (January 23-24, 2004)
Considerations Regarding Hiring Individual Counsel, Joint Defense Agreements, and Corrective Action
Minnesota State Bar Association, Conducting Internal Investigations in the Wake of Sarbanes-Oxley (July 24, 2003)
National Institute for Trial Advocacy
Robins, Kaplan, Miller & Ciresi L.L.P Trial Advocacy Program (March 5-8 & April 9-12, 2003)
Enron & Beyond: Accountants Are No Longer Boring & Roundtable Discussion: Responding to the Corporate Crisis
Robins, Kaplan, Miller & Ciresi L.L.P., White Collar Crime Seminar: Pinstripes to Jail Stripes (September 17, 2002)
Expert Witness Program
National Institute for Trial Advocacy, Robins Kaplan Miller & Ciresi L.L.P. (November 1-3, 2001)
National Institute for Trial Advocacy
Robins, Kaplan, Miller & Ciresi L.L.P. Trial Advocacy Program (February 14-17, 2001 and March 14-17, 2001)