Manhattan's longtime district attorney, Robert M. Morgenthau,
said Friday he won't seek re-election later this year after 34
years in office.
At a press conference, Morgenthau, 89, said he plans to complete
the remaining 10 months of his term and then retire.
Morgenthau said he was unsure of his future plans, but also said
he wasn't retiring for health reasons and that he is in good
physical shape.
"Some people are slow learners," Morgenthau said. "It just took
me a long time to realize I was getting older."
Morgenthau has been a major force in New York's legal community
for decades, serving as U.S. Attorney for the Southern District of
New York and winning nine consecutive terms as Manhattan's district
attorney.
"The challenge of his successor will be to fill the shoes of a
giant," said Charles A. Stillman of Stillman, Friedman &
Shechtman PC.
Stephen E. Kaufman, of Stephen E. Kaufman PC, said New York is
"losing the best district attorney we ever had."
Morgenthau displayed his characteristic wry wit as he made his
announcement, saying his 93-year-old brother recently emailed him:
"it's a bad time for you to be looking for a job."
Flanked by his wife and key members of his staff, Morgenthau
said he expects his office to be very active in the coming
months.
"We've got a lot of good cases in the pipeline," Morgenthau
said.
Morgenthau served in the U.S. Navy in World War II and began his
legal career in 1948, after graduating from Yale Law School,
joining Patterson, Belknap, Webb & Tyler LLP.
After 12 years of practicing corporate law, he was appointed
U.S. Attorney for the Southern District of New York by President
John F. Kennedy Jr. in 1961 and created its much-touted securities
fraud unit.
"He's the father of white-collar prosecutions," said Gary P.
Naftalis, of Kramer Levin Naftalis & Frankel LLP, who worked as
an assistant U.S. attorney under Morgenthau. "Nobody really did it
before him. He set the standard for all that."
Morgenthau resigned as U.S. Attorney in 1970 after initially
refusing to step down after Richard Nixon was elected president in
1968. U.S. attorneys traditionally offer their resignation when a
new administration comes into office.
"If Richard Nixon had asked me to stay, I would have quit
immediately," Morgenthau said.
Morgenthau won his first election as district attorney in 1974,
replacing Frank S. Hogan, who had been district attorney for 32
years.
As district attorney, Morgenthau greatly increased the reach and
breadth of the office, including pursuing international
prosecutions and giving it a focus on white-collar crime it didn't
previously have.
John W. Moscow, who predated Morgenthau at the district
attorney's office and worked with him for 30 years, called
Morgenthau "the best prosecutor we have had around."
"He's been the embodiment of integrity, toughness, fairness and
decency," said Moscow of Baker & Hostetler LLP. "His integrity
is far too great for the current times. He does things because
they're lawful, because they're true."
Morgenthau's office brought dozens of high-profile cases over
the years, including ones involving rogue bank Bank of Credit &
Commerce International; defunct brokerage firms A.R. Baron &
Co. and Duke & Co.; and the former top executives of Tyco
International Ltd. (TYC).
In December 1991, liquidators for BCCI agreed to forfeit all of
the bank's assets - $550 million - as part of a settlement with the
U.S. Justice Department and Morgenthau's office. Sheik Kamal Adham,
a major BCCI shareholder, in July 1992 pleaded guilty to a federal
bank fraud charge and agreed to pay $105 million in fines.
A year later, Saudi Arabian financier Sheik Khalid bin Mahfouz
agreed to pay $225 million to settle charges he conspired to steal
more than $300 million from BCCI's depositors under an agreement
with the Federal Reserve Board and Morgenthau's office.
In December 1997, A.R. Baron & Co., the defunct firm,
pleaded guilty to a fraud that bilked investors out of $75 million,
including manipulating initial public offerings and after-market
trading in stocks. Twelve persons pleaded guilty and one was
convicted at trial of criminal charges.
In the Duke & Co. case, the defunct firm's chairman, Victor
Wang, and more than a dozen former employees pleaded guilty to
criminal charges in a scheme to manipulate IPOs.
More recently, former Tyco top executives L. Dennis Kozlowski
and Mark H. Swartz were convicted in 2005 on charges they
systematically looted the company, which grew out of a sales-tax
fraud inquiry by Morgenthau's office. Kaufman represented Kozlowski
and Stillman represented Swartz.
Last month, Lloyds TSB Group PLC's (LYG) banking unit entered
into a deferred prosecution agreement with Morgenthau's office and
federal authorities and forfeited $350 million in connection with
an alleged scheme that allowed clients in Iran, Sudan and other
countries to access the U.S. banking system, in violation of U.S.
sanctions on those countries.
Morgenthau also influenced pop culture, serving as the model for
the character of Adam Schiff, the original district attorney on
NBC's long-running television series "Law & Order."
The secret to his longevity: "Luck," Morgenthau said.
The departure of Morgenthau will open up a position that rarely
turns over: Only two men have served in the office since Thomas E.
Dewey left.
Leslie Crocker Snyder, a former judge who has previously
challenged Morgenthau; Cyrus Vance Jr., the son of Jimmy Carter's
secretary of state and a former prosecutor; and Richard Aborn,
another former prosecutor, have all announced their intention to
run.
There's also speculation that Dan Castleman, one of Morgenthau's
top lieutenants, may run. Castleman declined comment Friday.
"There are some able and experienced people who are contending
for the position," said Mark C. Zauderer of Flemming Zulack
Williamson Zauderer LLP.
Whoever runs, Morgenthau said he doesn't plan to be active in
the campaign.
- By Chad Bray, Dow Jones Newswires; 212-227-2017;
chad.bray@dowjones.com