[ by Melanie Gretchen ]

A former Mayer Brown partner was found guilty by a federal jury on Friday of conspiring with top executives at commodities broker Refco.  This is his second criminal trial on the same charges.

Joseph Collins, 62, an outside lawyer for Refco, was charged with helping the firm's executives conceal a $2.4 billion fraud that caused the broker's 2005 implosion.  What he was trying to accomplish: hiding the firm's true financial condition from investors.

Collins' conviction marks a rare instance in which a corporate lawyer has been charged for legal work done in connection with a client's fraud.  Nevertheless, he was found guilty of 7 counts, including conspiracy, securities fraud and wire fraud. He was cleared of 2 counts of wire fraud and 1 count of bank fraud.  After the verdict, Manhattan U.S. Attorney Preet Bharara said in a statement that Collins gave the legal profession a "black eye."

"Over and over and over again, Collins ignored his duties as an officer of the court by actively participating in the crimes of his client -- telling blatant lies, falsifying important documents, and concealing others."

Collins' former employer, Mayer Brown, said it was "saddened by the jury's verdict."  In its defense, it said that "as for the firm itself, Mayer Brown acted in a professional, competent and ethical manner in its work on behalf of Refco."

First Trial. After Collins's first trial, he was convicted in 2009 and sentenced to 7 years in prison.  However, he won an appeal from the 2nd U.S. Circuit Court of Appeals, which overturned the conviction.  It found that the judge at the first trial, Robert Patterson, should have called defense lawyers in before advising a recalcitrant juror to continue deliberating.  The appeals court remanded the case for a new trial.

Going forward, sentencing is scheduled for 3/20/13.  For the fraud, Collins could get a maximum of 20 years in prison.  Former Refco CEO Phillip Bennett is serving a 16-year prison sentence and former president Tone Grant is serving 10 years.  They, along with several Refco executives, were prosecuted after the fraud was revealed shortly after the company's IPO in August 2005.

"We are disappointed with the verdict and intend to appeal." -- William Schwartz, Collins's lawyer.

The case: USA v. Collins, U.S. District Court for the Southern District of New York, No. 07-cr-1170.

For further details, go to [Reuters, 11/16/12].