Legal News

Goldman Case Lands in Lap of Former Mob Prosecutor, Barbara Jones

By Dionne Searcey

The fate of Goldman Sachs, at least for now, is in the hands of a federal judge who made a name for herself as a prosecutor pursuing mafia cases.

The SEC's civil case against Goldman, in which it accuses Goldman of defrauding customers who bought investments tied to risky mortgages, was wheeled out to Federal Judge Barbara S. Jones in the Southern District, on Friday (and it will remain with her, unless for some reason the case get reassigned).

In the 1970s and 1980s while she worked as an assistant U.S. attorney for the Southern District of New York, Judge Jones handled a raft of complex mobster cases. She was part of the team that tried the first RICO cases against a mobster family, according to this New York Times story from 2005.

"She's a very smart, fundamentally a decent person with a sense of humor," said Baker Hostetler’s John Moscow, who met her years ago when he was a prosecutor in the Manhattan District Attorneys office and she was working as a prosecutor in the Southern District. "When prosecuting mob cases keeping your sense of humor is important."

Judge Jones could not be reached for comment.

She endeared herself to others by earning their respect, he said. "She was encouraging and gung ho, and nothing that she would ask somebody else to do was something that she wouldn't do," said Moscow.

In 2005, Judge Jones earned notoriety for handling the eight-week trial of WorldCom's former chief executive Bernard Ebbers. Ebbers was convicted of securities fraud and other charges for his role in the $11 billion accounting fraud that plunged the telecommunications company into bankruptcy protection in 2002.

Court-watchers say she made even-handed rulings during the trial, which ticked along at a rapid clip, just as she had promised early in the proceedings. Attorneys say she is known for her efficiency.

Legal experts say her rulings are not formulaic and she doesn't appear to favor the prosecution despite her background as a prosecutor.

Judge Jones is close friends with Estee Lauder general counsel Sara Moss and former Southern District U.S. Attorney (and current Debevoise & Plimpton partner) Mary Jo White. The threesome engage in competitive games of cards and tennis, said Moss.

"Temperamentally she's well suited to this," added Moss, who met Judge Jones in the 1970s when they were both prosecutors in the Southern District. "In this case in terms of her background she doesn't bring any bias to the case. She's smart and even tempered."

Moss said that as a prosecutor Judge Jones didn't get emotional when trying cases but remained firmly in control and was driven to win. She also has a good sense of humor, Moss said, and is well-liked in the courthouse.

About 200 people attended her swearing in as a judge – a testament to how she had endeared herself to others. Inside the courthouse she's known for her annual Christmas party, where she hires a DJ and invites her peers on the bench as well as the building’s crew.

Full post as published by Law Blog - WSJ.com on April 18, 2010 (boomark / email).