The announcement of a federal criminal investigation in the BP Deepwater Horizon oil spill in the Gulf of Mexico provides in-house counsel with object lessons on criminal environmental liability, crisis management and the growing need to play a greater role on the operations side of corporations.

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Two Bolivian nationals have filed suit against their native country, seeking $250 million for family land holdings seized by the government more than a half century ago. 

Genoveva and Marcel Loza, heirs to the Loza family’s landholdings in Bolivia, claim in a lawsuit filed Friday in Miami federal court that the holdings included land where the Bolivian capitol and international airport now stand in La Paz. 

The brother and sister were adopted by the Loza family and are now U.S. citizens. Their attorney, Michael Diaz of Diaz Reus & Targ in Miami, said the Loza family was coerced into executing the deed in the 1950s. 

“They were assured of just compensation for all expropriated land. Instead, the Lozas were ‘compensated’ through imprisonment, torture and acts of terrorism perpetrated by their own government and its corrupt officials,” Diaz said. 

U.S. District Court Judge Paul C. Huck was assigned to the case. 

Diaz said Bolivia has never denied owing the Lozas compensation. 

“Instead, they have refused to pay, sending the family on a decades-long, wild-goose chase that will now end in a U.S. court,” he said. 

The lawsuit claiming unlawful expropriation, conversion, unjust enrichment and conspiracy is estimated to be worth $250 million. 

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www.chinalat.com/uploads/file/CBLJ Apr 10.pdf

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Montesinos había hecho un accidentado periplo de fuga por tierra, mar y aire después de escapar de su país en medio de un escándalo que lo comprometía en tráfico de armas para las Fuerzas Armadas Revolucionarias de Colombia (FARC), sobornos, extorsiones y asesinatos.

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An US appellate court has rejected the 'inflated payments' calculated by US district judge Thomas Greisa as part of a ruling to secure payments for bondholders of Argentine debt.

Greisa issued a restraining order to freeze over US$2.2 billion in Argentine government assets held by Argentina's Banco de la Nación on Thursday, and set awards ranging from US$95.3 million to US$543.9 million to be paid to eight plaintiff class-action groups holding defaulted bonds from the country's 2002 financial crisis.

The US second circuit court of appeals in Manhattan has ordered Griesa to determine payouts using an alternative method that 'more closely' reflects the losses experienced by the plaintiffs. However, the appeals court rejected Argentina's request to deny investors class-action status, which would have made it more costly for smaller investors to take legal action.

Proskauer Rose LLPis co-lead counsel for the investors, along with Miami-based firm Diaz Reus & Targ LLP and independent practitioner Howard Sirota. Cleary, Gottlieb, Steen & Hamilton LLP is representing Argentina.

'This will have zero affect on our clients,' says Diaz Rues partner Michael Diaz, commenting on the appeal. 'The appellate court confirmed the class certification, which was one of the very important issues that Argentine tried to attack. They wanted at all costs to avoid a class-certification, because that would mean less of a payout to bondholders to whom they defaulted. A class-action will mean they will have to give to the bondholders a much bigger pay check.'

Cleary Gottlieb was unavailable for comment.

The ruling is the latest in a series of lawsuits launched against the country over the last seven years, following Argentina's 2002 debt default totalling US$100 billion. Over US$18 billion is been sought by investors who did not participate in Argentina's 2005 debt swap package.

A new debt-restructuring package is currently being negotiated, with Marcelo Etchebarne from Argentina's Cabanellas, Etchebarne, Kelly & Dell'Oro Maini Abogados leading the negotiations with Linklaters on behalf of Barclays, the bank coordinating the deal. But some of the lawyers representing bondholders have said they have little confidence in the terms of the swap.

According to Diaz the main failing of the debt package, is 'the ability of Argentina to change the rules and payouts after bondholders have agreed to participate .'

The cases against Argentina have prevented the country from trading on world capital markets. In 2004, the bondholders launched litigation proceedings against Argentina for payment of eight series of defaulted global bonds and accumulated interest, and won a series of judgments on their behalf. The parties will next meet in court on 8 June.

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Cuban-born Miami attorneyMichael Diaz, Jr. earned his stripes as a prosecutor under Janet Reno in the 1980s after graduating from the University of Miami School of Law. He went into private practice in 1990 and subsequently founded Diaz Reus, a noted international law firm focused largely on international financial fraud, including recouping assets for victims of alleged Madoff and Stanford Ponzi schemes. He spoke to us from his Miami office. The firm also has offices in Bello Horizonte, Dubai, Bogotá, Caracas, Frankfurt, Mexico City, Orlando, and Shanghai.

JDSupra: In the 1980s, Miami rented refrigerator trucks from Burger King to store murder victims when the city morgue overflowed, and Miami cops were moonlighting as drug dealers. What did you gain as a prosecutor there during those days?

Michael Diaz, Jr.: I learned that there is both good and bad in people no matter which side of the aisle they're on. Those wearing the white hats are subject to the same sort of defects as the accused in terms of their testimony, their credibility and their own ethical issues. That was pretty striking for a guy right out of law school and dealing with the dregs of society--working with Miami gangs and handling murder cases. The lines were often very blurred between black and white, good and bad, law enforcement and the perpetrators. I also developed relationships that continue today. Many of the people in our law firm's investigative unit are former police and state law enforcement officers, FBI, ICE, and DEA agents with whom I worked and developed a close bond.

JDSupra: While Miami vice may not be what it was in the 1980s, South Florida still ranks as a mecca for financial fraud and international monetary intrigue. Why is that?

Diaz: We've led the country in white collar criminal fraud for the better part of 40 years--it is a function of being a very transient society. We're the port of entry for many parts of the world, including Latin America, and we are very culturally diverse. Some of those people coming here maintain their own cultural perspectives from their home country where the rule of law is not always adhered to. Also, the South Florida economy is based in large part on tourism, vacationers, snowbirds, and real estate. Potential victims of fraud--so-called pigeons--flock to South Florida. But the "victims" at times deserve a great amount of scrutiny as well. Were they deliberately blind? Did they stick their head in the sand like an ostrich? Or did they just fail to ask the right questions? Or were they going along for the ride? Often they want no finger pointed at them even though they reaped all the rewards--claiming innocence and demanding justice when the music finally stops and there are no "victim" labeled chairs for them to sit in.

JDSupra: What sort of mindset does it take for an attorney to be successful in handling international financial fraud cases?

Diaz: You need to dig, dig, dig, and ask the very hard questions--often a very delicate thing when you're handling a client who is a subject of a money-laundering investigation. You develop a sense for it after seeing the same modus operandi time and again, particularly in Ponzi schemes. It may come in different shades, but it's always the same thing: the promise of great returns that seem just too good to be true, and they usually are. You see it over and over--in real estate, in fractional ownership shares, in far off swanky locations, in foreign-exchange operators promising great return on investment. It's all fantasy and make-believe. They produce false websites, false invoices and false account statements. People think they're getting a great deal when in fact they're just part of a pyramid scam. I've seen it from both sides--I've prosecuted and defended them--and developed a feel for financial fraud.

JDSupra: You and your firm have been involved in numerous high-profile international cases, operating in courts in the U.S., Latin America and around the world. What special sort of expertise is required to do that?

Diaz: First, you've got to have passion for it. Right now as we speak I have a firm member in Panama seizing 61 different bank accounts--some $15 million of ill-gotten gains--from a guy being prosecuted by the SEC. There's just something very fun, adventurous and thrilling about doing that sort of asset-recovery work. It's literally a beat the clock game and race to the courthouse. It brings into play all the techniques and experience that I gained as a young prosecutor, when you had to scrutinize the person on the other side and stay one step ahead of them. It's the same here: You need to find out where they put their money without tipping them off. You have to cultivate and obtain intelligence in the right way to freeze bank accounts and repatriate the money back to the U.S. without allowing corruption to seep into the process--and have a foreign judge, for example, tip off the account holders. It takes a lot of skill, a lot of tenacity, and a lot of knowledge about the human nature of the people who pull these things off. Also, it's important in these far off locations to find the right people to help you, with the right degree of ethics, honesty and integrity. But you can't tell them everything. The people you've hired to help you can be the same ones who undermine and hurt you in the end.  Asset recovery is very similar to intelligence work in the spy world.  

JDSupra: In your opinion what can be done in the future to help stop international financial fraud?

Diaz: The only real remedy is close cooperation and uniform and consistent approach among governments, with comprehensive, region-by-region coordinated attacks on international money-laundering, terrorist financing, financial fraud, etc. But the problem, as I see it, is that governments are run by people. They have the same foibles and character flaws as the rest of us. In my opinion, we will never be successful in eliminating fraud because you're talking about eliminating human nature. For every remedy that comes out today, there will be a new scheme tomorrow. It's not a function of law enforcement abilities or inabilities or better policy. It's a function of human nature. There's always going to be bad guys and lesser bad guys. I pray that we can at least track them and slow them down. That's the only real way you can "stop" fraud.

 

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Panama-based aircraft leasing company Aerocentro has won a US $3 million arbitral award after its Venezuelan-owned client, Aeropostal Alas de Centro America, was found to have breached the terms of two aircraft leases.

On 1 March, a Florida court confirmed the award made by a Miami arbitration forum under American Arbitration Association rules in November last year.

Gary Davidson, a partner with Diaz Reus & Targ LLP who led the counsel to Aerocentro, says, "The primary challenge was to convince the arbitrator that he had jurisdiction to hear the case against the parent company of a defunct subsidiary. The ruling validates the notion that arbitrators have the power to determine their own jurisdiction."

Aerocentro and Alas de Centro America signed the leasing contract for two aircraft in 2006, but Alas de Centro America failed to take possession of the aircraft, leading Aerocentro to file for arbitration in 2007.

In its arbitral filing, the company argued that Alas de Centro America was liable for the losses it had sustained under the aircraft leases.

Alas de Centro America, by then defunct, failed to appear at the arbitration however, and its parent company, Aeropostal Alas de Venezuela contested the tribunal's jurisdiction to hear a claim against it, arguing that it had not been a party to the lease.

Davidson says, "Keeping Aeropostal Alas de Venezuela in the arbitration was key. We knew that Aeropostal Alas de Centro was no longer operational and had no assets. If we couldn't keep Aeropostal Alas de Venezuela in the arbitration, any award would have simply been a pyrrhic victory."

Having secured the arbitration ruling, Aerocentro's counsel immediately sought confirmation of the award from a Florida district court, which ruled that "As the arbitrator did not exceed his authority or make a finding in manifest disregard of the law, the final award must stand."

"More importantly, respondents have not asserted any defense to confirmation," it added.

Counsel to Aerocentro

• Diaz Reus & Targ LLP

Partner Gary Davidson and associates Gerardo Rodriguez-Albizu and Chad Purdie

Counsel to Aeropostal Alas de Venezuela

• Polo Alto Associates

Partner Ricardo Pines

For the original article, please see www.chinalat.com/uploads/file/LatinLawyer online - Florida court upholds aircraft leasing award -GED.pdf

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Miami law firm Diaz Reus & Targ is expanding its global reach, having opened an office in China’s business capital, Shanghai.

The firm, whose managing partner Michael Diaz Jr., was recently featured in BusinessWeek, also has offices in Frankfurt, Germany, Caracas, and Dubai, United Arab Emirates as well as affiliate offices in Bogota and Sao Paulo.

The new office will be managed by law firm partners Robert Q. Lee and Adam Ehrlich, and associate attorneys Federico Tabja, Xiaomin (Samantha) Hu and Xin (Joe) Zhang. Lee will be a panelist at WorldCity’s next monthly Global Connections gathering, focused on China, on July 29.

“China’s growth rate and expanding middle class are reflective of the country’s continuing integration into the global economy,” said Lee. “From our Shanghai office we will help multinational clients achieve their objectives, while providing assistance to Chinese companies that want to grow their business.”

“For many years, our global law firm has seen a continuing high volume of trade and investment involving China, between the Americas, Europe and the Middle East,” said Diaz, the managing partner. “From our Miami, Florida base, we have taken advantage of current legal trends in order to expand our operations and offer our clients innovative, sophisticated and cost-effective legal solutions.”

http://www.worldcityweb.com/news/detail/279/Diaz-Reus-opens-Shanghai-office

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By ALB | Thursday, 9 July 2009
 

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Miami-based law firm Diaz Reus & Targ announced last month that it has partnered with Sao Paulo-based Guimaraes & Vieira de Mello Advogados. The association will allow Diaz Reus to expand its operations in Latin America. Currently, the firm operates an office in Caracas as well as a joint venture in Bogota. "We believe that investment opportunities in Brazil will occupy a great deal of our time," said Michael Diaz, the firm's managing partner. "[Diaz Reus'] Dubai office is already seeking investors for a company in the Brazilian agro industrial sector. Also, the firm's Shanghai and Dubai offices are in discussions with potential investors to explore oil in marginal fields with a Brazilian company." The firm also announced Monday that it has opened a new full-service office in Shanghai, the South Florida Business Journal reported.

www.chinalat.com/uploads/file/LAA090708[1].pdf

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 Upcoming Events

Past Events

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Miami-based law firm Diaz Reus & Targ has expanded its practice to Sao Paulo, Brazil, under an international partnership with Brazilian firm Guimaraes & Vieira de Mello Advogados.
 

The partnership will help expand Diaz Reus’ international practice in Latin America. The firm already operates in Caracas, Venezuela, and has a joint venture in Bogota, Colombia.
 

Both law firms will jointly seek international investors for Brazil. Diaz Reus’ Shanghai and Dubai offices are in discussions with potential investors interested in funding oil exploration with a Brazilian company in marginal fields.

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Michael Diaz Jr. and Arti Sangar of Diaz Reus & Targ LLP take a look at how the DIFC's new international arbitration centre has become an efficient and well managed arbitration institution.

Published in Asian - Counsel United Arab Emirates Special Report, Vol 7, Issue 4, May 2009

Download file

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China-based Shandong Airlines was recently awarded a temporary restraining order against a Florida flight training school in an international contract dispute. The airline had engaged CAPT, LLC, a school owned by Flight Training Services International (FTSI), to provide flight training to 24 of its Chinese pilot cadets over 52-weeks at the school’s Florida facilities. According to the airline’s Complaint, CAPT had sent a letter to Shandong in March 2009 stating it considered the contracts “to be null and void” and requesting that additional training money be paid to it would withdraw sponsorship of all Shandong student visas.

Legal representatives for the airline, Diaz Reus LLP argued that Shandong Airlines had met all terms of the contract and successfully applied for a temporary restraining order to prevent CAPT from unilaterally terminating its contract, withdrawing sponsorship of the cadets and selling, transferring or otherwise disposing of its training equipment. U.S. District Judge Timothy J. Corrigan granted the temporary restraining order on the school on the basis that Shandong had shown “a substantial likelihood of success on the merits of its complaint for breach of contract”. A hearing has been set in the US District Court on whether to issue a permanent injunction against the school, with the court determining to award a preliminary injunction forbidding the flight school from taking any action that might endanger the students’ immigration status until such time they were able to obtain new visas from a new sponsor.

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On April 16, 2009, Diaz Reus presented on several topics related to Debt Collection for Chinese companies in Pudong, Shanghai. Diaz Reus attorneys Joe Zhang and Samantha Hu presented the topics and led the discussion afterwards. Several Chinese attorneys and other individuals attended and joined in the discussion.

Mr. Zhang and Ms. Hu explained the various legal systems around the world and the general procedures in place in order for Chinese entities to recover their outstanding foreign debts.

Generally, a Chinese entity must gather and organize the evidence (contracts, emails, shipping documents, etc.). Then the attorney will review and send a letter to the foreign debtor. If the debtor replies, then the attorney will begin negotiations. This is all done free of charge.

If a settlement amount is agreed upon and tendered by the debtor, the attorney will then collect a percentage which is negotiated before work begins.

If the debtor does not respond or disputes the claim, then the next step is to file a lawsuit. Typically, the Chinese creditor must finance the litigation (which is usually between USD 1,000 – 15,000 depending on the complexity). Also, if the proceedings move to this stage, a representative from the China entity will probably need to make themselves available in the forum in order to make a statement before a court officer.

Though this stage can be quite cumbersome, as long as the debt is genuine and can be sufficiently proved, then a judgment in favor of the creditor is likely. Court costs and sometimes attorney fees can be included within the judgment.

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APR09 ISSUE106 Print this article

Carlos Gonzalez and Arti Sangar present a guide to finding the right lawyer

Alternatively, clients and attorneys may find each other through word-of-mouth or reputation. The internet and specialised search engines which profile attorneys and their law firms also provide a useful tool for researching a lawyer’s background and experience.

What happens, however, when you need to hire a lawyer several thousand miles from where you live, in another country, and who speaks a different language? As more and more entrepreneurs, small business owners, and corporations enter the global economy, the need to hire foreign counsel will continue to increase.

A party in Dubai, United Arab Emirates (UAE), who enters into a contract with another party in Miami, Florida may need the assistance of US-based counsel to draft the contract and provide advice on a range of issues including: arbitration clauses; the use of foreign law to resolve disputes; and the enforceability of certain contract clauses in one jurisdiction, or another.

Likewise, a foreign government sued in a US court will need to retain US counsel to defend the lawsuit. International litigation raises a wide variety of legal issues from the proper service of process, to the adequacy of the US as a proper forum for the litigation. These are issues which are unique to international litigation, and require counsel with experience in this particular field.

When looking for foreign counsel, you should first consider the following:

How well do I know the foreign jurisdiction?
While there may be some similarities, the law in the UAE and the US is not the same. Foreign clients often naively assume that what works in their country will also work in a foreign jurisdiction. This assumption can be costly. If you are based in Dubai, for example, and are negotiating a contract with a party in the US, it may be essential to hire US counsel to review the contract and ensure that your interests will be protected.

"FOREIGN CLIENTS OFTEN NAIVELY ASSUME THAT WHAT WORKS IN THEIR COUNTRY WILL ALSO WORK IN A FOREIGN JURISDICTION. THIS ASSUMPTION CAN BE COSTLY."

The US party may want to include an arbitration clause requiring that all disputes be resolved in Florida, under Florida law. This may or may not be in your best interests as a foreign national. Likewise, you may want to include an alternative dispute resolution provision which favours a forum in your home country. The feasibility of one option over another may require a study of the competing jurisdictions’ laws. The selection of counsel with on-the-ground knowledge of and experience in the foreign jurisdiction will therefore be critical.

What is my legal problem?
The law has become very specialised. Unlike other parts of the world, in the US, one lawyer does not typically practice civil and criminal law. Of course, you may find law firms with lawyers that specialise in both areas, but, as a general rule, US lawyers typically focus their practices in the civil or criminal arenas. Accordingly, you will need to define, as specifically as possible, the legal issues that you feel require you to hire foreign counsel.

In broad terms, if you have been sued, or are looking to sue another party for breach of contract, you should narrow your search of attorneys to those concentrating their practice in the areas of civil or commercial litigation. Of course, what may appear to be a civil matter at first may also become criminal in nature. A good lawyer will be able to identify additional issues and help you build the right defence team.

How much do I want to spend?
There is a popular belief that the quality of a lawyer is directly proportional to how much that lawyer charges. Nothing could be further from the truth. Lawyers who work for large law firms, for example, are forced to charge very high rates in order to cover their overhead expenses. A small to mid-size law firm, however, is economically leaner. Unlike their larger counterparts, small to mid-size law firms do not employ large numbers of inexperienced attorneys who earn high salaries, but add little value to the representation, nor do they maintain established partners who are collecting large salaries, but are not generating as much business as in the past. As a result, small to mid-size practices are not forced to charge high rates to cover their overhead expenses.

This, however, does not mean that these law firms lack the skill, experience, and know-how to represent clients in sophisticated litigation. In many cases, these law firms are built around former large law firm attorneys whose skills, experience, and know-how help make these practices attractive alternatives.

How well do my lawyers know me?
Beyond knowledge, confidence, and reputation, clients also consider their ability to relate to their legal representative as an important factor in selecting one lawyer over another. Often, the greatest barrier to the attorney-client relationship, particularly in cross-border disputes, is the lawyer’s inability to communicate in the client representative’s native language.

Even if the client representative speaks English, for example, the ability to communicate in Arabic, Chinese, Spanish, Portuguese, or any other language can strengthen the relationship between client and lawyer. In addition, the client should look for a lawyer who knows the particular industry at issue. Knowledge of the client’s business will be critical in contract negotiations, mediations, arbitrations, and other legal proceedings. While the law governing contracts, for example, is fairly well defined throughout the US, the reason for drafting a contract one way, and not another, may well turn on the nature of the business at issue.

While there are certainly many other factors that may affect your decision to hire a lawyer, the above factors provide a strong starting point for selecting the right lawyer for your needs. Of course, researching, interviewing, and selecting the right law firm to represent you in foreign litigation can be a time-consuming task in its own right.

Often, corporate and private clients in need of foreign representation will turn to a firm they trust to assist them in locating the right team of lawyers outside their jurisdiction. Many clients, for example, will hire ‘umbrella counsel’ to coordinate major litigation or transactions with law firms and lawyers across multiple jurisdictions. This method can be very effective from a client’s point of view. Regardless of how many jurisdictions are involved, the client will always have a primary point of contact who will then take on the task of vetting law firms, assembling the litigation or deal team, and ensuring that the clients’ needs are met, regardless of the jurisdiction involved.

Carlos Gonzalez is a Partner with Diaz Reus & Targ, LLP in its Miami, Florida office and Arti Sangar is a Senior Associate located in the firm’s Dubai office, UAE.

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The Chilean government has filed lawsuits against four banks it says either negligently or deliberately helped former dictator Augusto Pinochet hide $26 million in stolen funds.

The civil suits filed Wednesday in a Miami federal court, seek unspecified damages that could total in the tens of million from PNC Financial Services Group Inc., Banco Santander, Espirito Santo Bank and Banco de Chile.

The lawsuits follow a March U. S. Senate investigation that found that the late Pinochet had held funds in Spain's Banco Santander, Espirito Santo Bank of Portugal, Banco de Chile and Washington D. C. - based Riggs Bank. PNC acquired Riggs in 2005, after regulators fined Riggs $25 million in 2004 for money laundering charges.

The Senate additionally said that Pinochet held accounts with Citigroup, Banco Atlantico, Bank of America, and Miami-based institutions Coutts & Co. (USA) International, Ocean Bank, and Pinebank N.A. Chile may file similar lawsuits against these banks depending on how the other cases proceed, said David Caruso, a former compliance officer for Riggs Bank.

"Through discovery, a lot can come out," said David Carusa, managing director of Dominion Advisory Group, a consulting firm in Centreville, Va. "The public record is clear that there were more banks than just those four that were involved with Pinochet."

Last October, the Chilean State Defense Council said in the country's official gazette that it was moving to reclaim the funds once held by Pinochet in foreign banks, including the four named in the Miami lawsuits. The former dictator died in December 2006, at the age of 91.

The Chilean government may have chosen to go after the four banks specifically because the documented evidence of negligence or willful blindness was stronger, said Michael Diaz, managing partner with law firm Diaz Reus & Targ LLP in Miami, adding that the other institutions may be "on the periphery of liability."

The track record of litigants pursuing banks for negligence has been "mixed," with the majority of cases ending in settlements, said Diaz. In Chile's case, banks may counter that the South American country is to blame for some of its problems, he said.

"The Chilean government is holding itself out as being a victim, but you have to ask yourself: At what point did the Chilean government know or should have known what its own president was doing?" said Diaz. The "contributory negligence" of the Chilean government could reduce any recovery, he said.

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U.S. moves against a Doral financial firm and its owner reverberated in the Venezuelan foreignexchange market, sparking a shortage of dollars.

By CASTO OCANDO AND GERARDO REYES 

El Nuevo Herald 

CARACAS -- A former banker arrested in Miami this week for allegedly laundering drug money is at the heart of a U.S. government operation to freeze suspect funds that has slowed Venezuela's parallel currency market.

Currency exchange houses in Venezuela have been working at a snail's pace since Wednesday, after accounts were frozen at Rosemont Finance, a Doral-based firm that handles accounts for about 49 currency exchanges and other companies in Venezuela.

A federal grand jury in Massachusetts accused Rosemont founder Rama Vyasulu of laundering about $900,000 in illegal drug proceeds, according to court records. Vyasulu, who was arrested Wednesday in Miami, allegedly had sent three transfers in January from Massachusetts to an account at Bank of America. The Bank of America account, which was frozen, handled about $240 million in deposits from tens of currency exchange houses in Venezuela.

DEA INVESTIGATION

Two knowledgeable persons who asked for anonymity because they were not authorized to speak on the case told El Nuevo Herald that Vyasulu's arrest stemmed from an investigation by the U.S. Drug Enforcement Administration.

The freeze on the Bank of America account sparked a shortage of U.S. dollars in Venezuela, leading to a dramatic spike in the dollar's value on the parallel market: 6.8 bolivars per dollar, more than triple the official exchange rate of 2.15 per dollar. President Hugo Chávez set that rate in 2003 as part of currency controls designed to halt the flood of capital out of Venezuela.

Access to U.S. dollars is critical for the flow of trade between the two countries. Venezuelan importers need dollars to pay for their purchases. But if the government does not agree to sell them dollars at the 2.15 rate, they have to go to the parallel market -- currency exchange houses -- to buy dollars at a higher rate. And exporters who are paid in dollars can sell them to the exchange houses at a rate much higher than the official one.

Some exchange houses and currency exchange operators said they were functioning normally and were not affected by the investigation into Rosemont Finance because they maintained accounts in other banks in the United States and Europe.

Despite Chávez's attempts to restrict the trading of currency, several loopholes in exchange regulations have allowed Venezuelans to exchange bolivars for dollars in what is known as the ''parallel'' or more often ''black'' market.

Vyasulu, 57, is a former banker who studied administration and business in Mexico and the United States and worked at the Federal Reserve Bank of Atlanta as a regulation and supervision official for various Latin American countries, according to a Rosemont prospectus.

He has also worked in several Venezuelan banks, including Banco de Venezuela Internacional and Banco Caracas, and was corporate vice president of Dresdner Bank Latin America.

Born in India but now a Venezuelan citizen living in Doral, Vyasulu incorporated Rosemont Corp. in Florida in July 2007. He is also the registered agent for six other Florida corporations.

A Rosemont document dated November 2008 said the company handled $10 billion in transactions during the preceding year.

In a civil lawsuit he filed in Miami in 2006 against some of his former clients, Vyasulu portrayed himself as an expert consultant in obtaining credits from Eximbank, a U.S. government agency that uses federal funds to finance exports and imports.

Michael Díaz, a Miami lawyer representing five Venezuelan currency exchange houses, told El Nuevo Herald that his clients are innocent victims of the freeze imposed on Rosemont's accounts.

Asked about the money laundering allegations, Díaz said that currency exchanges are vulnerable to infiltration of illegal money. ''Sometimes it's not intentional, but the government nevertheless considers it illegal and has the right to freeze it,'' he said.

ACCOUNT FREEZE

In a statement Friday, Rosemont Finance confirmed that it had been notified of the temporary account freeze. The case involves ''the individual actions of one person'' that affected ''a very small number of transactions,'' the statement said, adding that its officers and employees ''have operated in accordance with the law'' and that it will defend itself and its agents in court.

Michael Band, a Miami lawyer who represents Rosemont, said, ``Given the limited amount of information that the government has disclosed [in the case], I am not in a position to discuss this matter.''

The Caracas newsletter Veneconomía meanwhile reported that the accounts freeze had revealed a series of links between several currency exchange operations and the Venezuelan government's oil company, known as PDVSA.
 
''The majority of the currency exchange houses involved are clients of PDVSA,'' the newsletter said. The oil company had been rumored to be selling dollars -- earned through oil exports -- on the parallel market, where it likely obtained better than the official rate.

Florida records show that Diego Arnal, former president of Association of Currency Exchange Houses in Venezuela and former director of the Caracas Stock Exchange, is listed as the principal agent for 26 companies registered under the names similar to Rosemont Corp. All 26 were incorporated by Arnal on the same day, Jan. 18, 2008.

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Lugar: Shanghai y Jiaxing, China

Fecha: 11 – 14 Mayo, 2009
___________________________________________________________
 

                                             INVITACIÓN

DÍAZ REUS le invita a su CONFERENCIA, INTRODUCCIÓN A LOS
NEGOCIOS INTERNACIONALES: CHINA Y LAS EMPRESAS
EXTRANJERAS a realizarse desde el 11 al 14 de mayo en las ciudades de
Shanghai y Jiaxing, República Popular China.

Asistirán al evento importantes ejecutivos de grandes compañías chinas,
pertenecientes a una amplia gama de industrias, así como también, altos
oficiales del gobierno local. Se realizarán exposiciones relativas al ambiente
de negocios en China y su marco jurídico, donde además Usted tendrá la
posibilidad de ser introducido personalmente a importantes directivos,
empresarios y representantes del gobierno chino.

Le invitamos a revisar el programa adjunto para más información.
Información y reservas favor contactarse con Cecilia Fresquet a:
cfresquet@diazreus.com

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Location: Shanghai and Jiaxing, China

Dates: May 11 – 14, 2009

                                                              INVITATION

          DIAZ REUS invites you to attend their SINO-FOREIGN BUSINESS
          INTRODUCTION CONFERENCE from May 11 to May 14 in Shanghai and
         Jiaxing, People’s Republic of China.
 

           Attending the event will be senior executives from large Chinese
           companies from various industries, as well as local government officials.
 

           There will be presentations on China’s business and legal environment, and
           opportunities for further one-on-one discussions with the Chinese
           representatives. Please review the enclosed Program for further information.

          To reserve your space now or for more information, please contact Cecilia
          Fresquet at: cfresquet@diazreus.com.

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By JOHN LYONS and JOSE DE CORDOBA

Venezuela's economically crucial black market for dollars was all but frozen Friday following the money-laundering arrest of an owner of a small Florida financial firm, adding to tensions between the U.S. and Venezuelan President Hugo Chávez.

The arrest has reverberated through the Latin American country because the firm, Rosemont Finance Corp., serves as a key U.S. clearing house for dozens of black-market brokerages -- trading houses that exploit loopholes to sell dollars despite an official Venezuelan ban on private firms buying and selling currency at unofficial rates. The federal case has ensnared millions of dollars from these trades and the brokerages that relied on Rosemont.

The black market is a crucial cog in the nation's financial system and counts giants such as state oil company Petroleos de Venezuela SA among its key players. If the market remains shut down for long, it could add to problems in Venezuela's increasingly chaotic economy. Venezuela, the fourth-largest supplier of oil to the U.S., has already been hurt by the decline in crude prices, rampant corruption and overspending on social programs.

Arrest after Indictment

U.S. authorities arrested Rosemont founder and Florida businessman Rama K. Vyasulu on Wednesday in Miami and froze Rosemont's account at Bank of America. The move came after a federal grand jury in Boston indicted Mr. Vyasulu on charges of laundering $900,000 in drug profits. A lawyer for Mr. Vyasulu declined comment. Bank of America had no comment on the ongoing investigation, spokeswoman Shirley Norton said.

Journal Community

·     Join a discussion about Venezuelan politics, economics and its president, Hugo Chavez.

Rosemont, based in Doral, Fla., confirmed in a statement that at least one account had been frozen in the wake of the federal charges. In the statement, the company said it operates legally and that the charges were related to a small fraction of its overall transactions. Rosemont officials did not comment beyond the statement.

The case is the second politically charged U.S. prosecution in recent months involving Venezuela. Last year, two Venezuelan businessmen were convicted in Miami federal court of acting as unlicensed foreign agents in a Federal case that featured a suitcase stuffed with $800,000, money allegedly sent by Mr. Chávez to the presidential campaign of Argentina's President Cristina Fernandez de Kirchner. Both Mr. Chávez and Ms. Fernandez de Kirchner have denied wrongdoing and accused the U.S. of politically motivated prosecutions.

Although it operates in a legal limbo, Venezuela's black market for dollars has become increasingly important in recent months as plunging oil prices have squeezed the OPEC nation's economy. Seeking to stretch their budgets, the Venezuelan Finance Ministry and oil company PDVSA have become the principal sellers of dollars on the market, where they get nearly three times as much per dollar as they would get selling to the central bank, according to three major Caracas currency brokers.

The seizure of the Rosemont account late Wednesday prompted several Caracas brokers to fly to Miami to start lobbying U.S. officials to turn loose cash related to their clients but held in the Rosemont account.

Michael Diaz, a Miami lawyer who is representing six of the institutions, said he believes at least $100 million has been frozen. Mr. Diaz said his clients are innocent of any wrongdoing.

Identified as Victims

"We were a victim of Mr. Vyasulu and Rosemont," he said. "Right now, my clients are organizing their records to show the government they have not been involved in any wrongdoing."

Mr. Diaz said Mr. Vyasulu was arrested at 2.30 p.m. in a Bank of America tower in Miami the same day.

Some Venezuelan observers said they were concerned that a long closure of the black market could boost the anxiety of average Venezuelans, who have become jittery about the strength of the financial system since the global crisis deepened last year. Many Venezuelans have sought to buy dollars on the black market in recent months on concern that the Chávez government will be forced to devalue the "strong bolivar," the currency he unveiled just last year.

In February, meanwhile, Venezuelans were on the front line when the U.S. Securities Exchange Commission lodged civil fraud charges against Texas businessmen R. Allen Stanford. Venezuelans were among Mr. Stanford's biggest investors, and news of the U.S. case sparked a run on a Venezuelan bank owned by Mr. Stanford.

Rosemont did a brisk business in a special niche -- handling funds for Venezuelan brokerages that wanted to open bank accounts in the U.S., but that might have had trouble qualifying amid the increased scrutiny of banks enacted to combat terrorism. Rosemont said in promotional materials that it handled around $10 billion of transactions last year.

U.S. and Rosemont officials did not comment on how much is frozen.

A heavyset man in his fifties, Mr. Vyasulu started his company with at least one Venezuelan partner and several Venezuelan associates, according to the firm's promotional material. Mr. Vyasulu portrayed himself in these materials as a Latin America specialist, claiming to have worked at the Federal Reserve Bank in Atlanta supervising several Latin American countries.

A spokesman for the Atlanta Federal Reserve bank said Mr. Vyasulu did work for it Miami branch for five months in 1997 as an Associate Examiner, a relatively low level position.

Denied Bond

Mr. Vyasulu used his experience at the Atlanta Fed as a selling point with clients worried about compliance with U.S. regulations, according to a lawyer who has had dealings with Mr. Vyasulu. A U.S. citizen whose parents live in India, Mr. Vyasulu was described as a flight risk and denied bond at his hearing.

According to the indictment, Mr. Vyasulu sought to "conceal and disguise the nature" of three money transfers to Florida from Massachusetts totaling $900,000 that are alleged to be proceeds from the illegal drugs trade. As part of the indictment, U.S. authorities froze accounts connected to Mr. Vyasulu, and are seeking to recover the $900,000, plus any other assets related to illegal activities.

The Boston indictment didn't provide details about the alleged drug transactions that produced the funds. A hearing in the case is scheduled for Wednesday in Miami federal court.

Write to John Lyons at john.lyons@wsj.com

Source: Wall Street Journal, March 28, 2009

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Q

In a civil complaint last month, US authorities charged financier R. Allen Stanford with orchestrating a fraud connected to $8 billion of certificates of deposit sold by Antigua-based Stanford International Bank through a network of advisors. Does this incident show a need for stricter regulation of financial services companies in the Caribbean? What role should Caribbean governments and private sector businesses play in maintaining the integrity of financial services firms in the region?

ABoard Comment: Michael Diaz:

"Between 2005 and 2007,Stanford International Bank(SIB) sold more than $1 billionin certificates of deposits which promiseddouble-digit returns based on their'unique investment strategy.' This soundseerily similar to the claims made by thegood folks that worked for Bernie Madoff.The Stanford International Bank saga hasbrought to light what all investors shouldconsider before investing in tax havens—ifit seems too good to be true, it is. Thenotion that SIB had a magical formula thatallowed greater returns in certificates ofdeposits than any other financial institutionwas suspicious from its inception.Whether it was SIB's intention to attractdeposits from tax evaders, money launderersor from other illicit sources versus asimple Ponzi scheme remains to be determined as evidence is publicly displayed in US courts. What is clear however is that Caribbean countries like Antigua must be vigilant in their financial, regulatory and legal systems. The SEC alleges that SIB took great lengths to prevent any independent examination of its portfolios, notwithstanding the fact that it is subject to annual audits by Antiguan regulators, the Financial Services Regulatory Commission. That, however, never occurred. The lax financial regulations in Antigua allowed SIB to steal hundreds of millions of dollars from Latin American investors and may very well subject the West Indies island to lawsuits for failure to diligently supervise and regulate SIB. Antigua at minimum should bear some of the burden of bailing out the victims of this fraud, which took place right under their nose or, worse, under their blind eye."

 ABoard Comment: Earl Jarrett:

"Over the past decade, the member countries in CARICOM have enacted laws to modernize and tighten the governance of the financial sector in the region. The countries in the region have also improved the capacity of the regulatory agencies to supervise the entities that they are required to monitor. Most countries have adopted international best practice and to date, the region has not experienced the massive banking failures of Europe and North America. It is evident however, that closer attention may be required in the regulation of International Financial Entities. Based on published reports, it is apparent that Stanford operated a complex structure spanning many countries. The group owned the Antiguan domestic bank, the Bank of Antigua, which was supervised by the Eastern Caribbean Central Bank. The bank is reported to be sound but has experienced a liquidity problem due to the levels of customer withdrawals, which followed media reports of Stanford's problems. During this week, a consortium of banks supervised by the Eastern Caribbean Central Bank has taken control of the entity. The banks regulated by CARICOM member states have demonstrated soundness."

AGuest Comment: Bernardo Vega:

"For some time now, firstthe European Union and laterthe United States have pressuredthe Caribbean to curtail offshorebanking. First it was for tax reasons andlater because of money laundering involving drugs and perhaps terrorism.Antigua, in particular, has been pointedout not only because of banking, but alsobecause of offshore betting and theinvolvement of local politicians in theseactivities. The communique from thelast G-20 meeting made reference to theneed to curtail offshore banking, linkingits activities to the international bankingcrisis. After the Stanford scandal, it isforeseeable that more outside pressurewill be applied to the region. The smallerthe island and the bigger its financialsector, the more difficult it will be for itsauthorities to regulate banking, givenhuman resources constraints. Caribbeanoverseas territories like the Turks andCaicos Islands have also been affectedrecently by scandals involving investmentschemes. In the DominicanRepublic, financial regulation, which wasvery loose, became and still is very strictafter three banks committed fraud andbecame insolvent in 2003. Subsequently,under IMF supervision, new and amplecontrols were imposed and thanks tothat, Dominican banks have not beenaffected by the international crisis."

AGuest Comment: Ronald Sanders:

"The matter of theSEC prosecuting a civil suit foralleged fraud against R. AllenStanford points to the absolute need forstricter regulation not only in Antiguaand Barbuda but also in the UnitedStates. Court documents about this matter claim that the alleged fraud relates tothe sale of products by the StanfordInternational Bank (SIB) in Antigua andby the Stanford Financial Group inHouston. The regulators in both jurisdictionsare, therefore, culpable. Whilethe smallness of its resources does notabsolve the Antigua regulators ofresponsibility, the vastness of theresources available to the US regulatorscondemns their failure to recognize thedanger signals in the operations at amuch earlier stage. The Stanford allegationshould not be used to stain Caribbean regulators while ignoring thefact that deficiencies also existed in theUS system. No Caribbean jurisdictionshould wish to remain in the business ofhosting companies that offer financialservices without strong, relevant andappropriate legislation and supervisionthat protects the interests of customers.In this regard, independent statutorybodies that are free of political interferenceand are overseen by bipartisancommittees drawn from the legislatureshould be established to raise their credibilityand give confidence to domesticand international clients. So there is aneed for stricter and fearless regulationof financial services as much in the US asin the Caribbean.

Michael Diaz is a member of the Financial Services Advisor board and Managing Partner at Diaz, Reus & Targ, LLP.

Earl Jarrett is a member of the Financial Services Advisor board and General Manager of the Jamaica NationalBuilding Society.

Bernardo Vega is President of Fundación Cultural Dominicana and served as Dominican Ambassador to the United States from 1997 to 1999.

Ronald Sanders is an International Relations Consultant and former Chairman of the Caribbean Financial Action Task Force against money laundering and drug trafficking.

Source: Latin America Advisor, Financial Services, Feb. 19 - March 4, 2009

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QUS Secretary of State Hillary Clinton has said it is a goal of the Obama

administration to lift the restrictions on sending remittances to Cuba. How would lifting the restrictions affect competition within the money-transfer industry? Would it put informal couriers ("mulas") out of business? Would lifting the restrictions significantly change the quality of life for Cubans who receive remittances from the US?

AGuest Comment: Manuel Orozco: "Lifting restrictions on remittingis an important

US foreign policydecision. Based on a recent studyby the Inter-American Dialogue, theimpact of the restrictions on remittances toCuba has been felt at various levels. First,from 2005 to 2009 informal fund transfersincreased from 22 percent to 42 percent.Second, 47 percent of Cuban immigrantsremitting to Cuba say the restrictions affecttheir ability to help their families due to thelimitations to send to only some immediaterelatives and the cap on the amountssent. Third, the cost of remitting has notonly increased ($25-$29 to send $200, thehighest in Latin America and theCaribbean) but also 73 percent of Cubanremitters see cost being the major problemthey face when sending money. Within thiscontext, lifting the restrictions wouldreduce costs of remitting and increasecompetition. The number of competitorsmaking transfers decreased after 2004 as a result of the restrictions because licenses to transfer to Cuba were not issued and some companies couldn't continue offering the services. The end result has been a significant concentration of the market on few companies and a trend of the use of informal networks. Cubans feel significantly pressured by the restrictions, not only because of the US regulations but also by the response of the Cuban government, which imposed a tax on remittances and forced recipients to convert the transfer into the local Cuban convertible peso.

Remittance recipients have faced increasing costs of living and reversing the regulation would no doubt help them cope with those costs. Moreover, these recipients have started to accumulate savings, which is becoming an important source of asset building in the long term, a condition that in turn will allow them to be prepared for a future regime transition."

AGuest Comment: Juan C. Villa:

"President Obama's proposal to remove restrictions on remittances to Cuba raises the old question: who will benefit the most, the Cuban people or the regime? There is no doubt that in today's economic climate, those who can still afford to send money to their relatives will provide them with some relief. As long as only a few privileged companies are able to provide money remittance services to the island and keep a quasi-monopoly, there will be a significant number of underground 'mules' who every week bring millions into the island. Because the Cuban regime imposes a penalty for the use of American currency, other currencies are favored by the exchange rate such as the Euro and Canadian dollar, and this may be a determining factor that influences the continuation of the underground money transfer trade through mules even if restrictions are removed. This penalization of the US dollar has created an underground market for foreign currency which is usually imported into the US to be carried by mules to their final destination in Cuba. It is therefore evident that regardless of a change in policy on the existing money transfer limitations to Cuba, the market may continue, perhaps marginally affected by the ongoing recession."

AGuest Comment: Richard Child:

"Formal money-transfer channels are more efficient and predictable and would likely raise the standard of living in two key ways. Efficiencies can be passed on to end consumers through better prices, transparent fee structures and the possibility of enjoying a broader range of financial services. More predictable services are likely to have a compounding effect on the volume of funds sent to the country.

Making these services accessible through familiar and trusted channels is critical to success in any market, which suggests mulas may still have a role to play."

Manuel Orozco is Director of the Remittances and Development Program at the Inter-American Dialogue.

Juan C. Villa is an Anti-Money Laundering Consultant at Diaz, Reus & Targ, LLP.

Richard Child is Executive Chairman of International Strategy and Corporate Development for Rêv Worldwide and MPOWER Labs.

Source: Latin America Advisor, March 3, 2009

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        中国杭州 – 总部位于美国迈阿密的国际性律师事务所达瑞律师事务所的律师受邀参加了于11月20号至24号在浙江世贸国际展览中心举行的美国美丽生活展. 美国美丽生活展由杭州市人民政府和美国GMAC IPG主办, 为美国公司向中国消费者展示和销售他们的产品和服务提供了一个平台. 参展商包括迪士尼公司, 皇家加勒比海油轮航线, 通用汽车公司和其他的一些专业咨询机构, 零售商, 进出口公司, 教育机构, 旅行社和绿色食品制造商以及销售商. 本次展览会接待了大约200,000人.

        Adam Ehrlich, 达瑞律师事务所的合伙人, 在本次展览上就 “怎样在美国购买房地产”做了演讲. 根据Ehrlich先生, 中国公民热衷于寻找投资海外的机会, 尤其是美国因为最近房地产市场的萧条.中国投资者对美国的住宅类房产最有兴趣. Ehrlich先生指出: “美国对住宅类房地产的外国购房者没有限制, 包括中国公民, 但是对房产的所有权并不保证购买者可以进入美国, 而且外国买房者也不会享受到一些所有权优惠政策.”

        张欣, 达瑞律师事务所的一位律师, 就 “在经济危机下的生活” 做了演讲, 并就进出口公司的机遇和挑战做了分析. 他的讲座的闪光点是对经济危机的完整定义, 在经济危机上人民生活的变化和相关的法律风险.

        达瑞的另一位律师胡晓敏的讲座则侧重于美国的投资移民. 根据胡女士的介绍, 美国移民局每年有10,000个投资移民签证. 此类签证发放给合格的希望在美国获得永久居留权的, 并已经或是计划对美国进行投资的个人及其家人. 在10,000个名额中, 其中5,000个是为计划在由美国移民局认可的美国投资特区进行投资的申请人预留的. 胡女士提到: “一般来说, 根据美国法律的规定, 投资者必须投资1,000,000美金, 但是针对投资特区, 投资者只需要投资500,000美金.”

        Federico Tabja, 达瑞的第三位律师介绍了在智利的投资机会. 他的讲座主要分析了中国投资将来应该投资智利的原因. 这些原因包括国家政治的稳定, 商业环境的低风险, 各种国际贸易条约或合同的支持, 高质量的劳动力以及对于外国投资者的保证. Tabja先生说道: “智利得到许多国际性机构的认可, 拥有现代商业和技术设施, 并且被许多出口公司视为进入拉丁美洲市场的战略性总部.”

        达瑞律师事务所是一家多种族，多语言的国际化律师事务所，为国内外的客户提供全方面的新颖的及低成本高效率的诉讼和非诉法律解决方案。达瑞律师事务所的总部位于美国迈阿密，并在阿联酋的迪拜、德国的法兰克福、委内瑞拉的加拉加斯、哥伦比亚的波哥大设有分支机构，我们律师事务所位于世界各地的律师和法律顾问有着为国内外客户提供各种法律服务的丰富经验。我们的非诉业务包括公司组建、兼并收购、移民、税务、信托和遗产、房地产、婚姻家庭等全方面的法律咨询服务。

        达瑞律师事务所即将在上海开办在中国的第一家办事处，中国司法部正在审批我们的申请。欲知更多达瑞律师事务所的信息，请联系迈阿密办公室，电话+1 (305) 375-9220 或者访问我们的网站：www.diazreus.com.

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        中国上海－达瑞律师事务所创始合伙人, 迈克儿•迪亚斯先生, 发布消息说：“张欣律师已经加入了达瑞律师事务所。” 张欣，生于南京，长于上海，义务范围将侧重于国际商事和公司法律，房地产，土地使用法和知识产权。他将主要负责拥有跨国业务的客户同时壮大达瑞在亚洲地区的实力.

        迪亚斯先生还指出: “张欣律师的加入不仅仅代表达瑞律师事务所一贯的承诺，即为各类客户群提供周到的法律服务和问题解决方案。同时，由于近期不断增加的国际商事活动尤其是越来越多的公司客户进军亚洲国家市场，对于达瑞来说， 张欣律师的加入可谓十分的及时.”

        张欣2003年本科毕业于上海华东政法学院，于2006年获得俄克拉何马大学法律博士学位，之后又于华盛顿大学法学院继续攻读了亚洲比较法法学硕士学位。

        在加入达瑞律师事务所之前，张欣律师曾经就职于位于华盛顿州塔科马市的戈登•汤玛斯律师事务所和位于华盛顿州西雅图市的博钦律师事务所。张欣律师精通英语和汉语，并能熟练使用日语。

        达瑞律师事务所是一家多种族，多语言的国际化律师事务所，为国内外的客户提供全方面的新颖的及低成本高效率的诉讼和非诉法律解决方案。达瑞律师事务所的总部位于美国迈阿密，并在阿联酋的迪拜、德国的法兰克福、委内瑞拉的加拉加斯、哥伦比亚的波哥大设有分支机构，我们律师事务所位于世界各地的律师和法律顾问有着为国内外客户提供各种法律服务的丰富经验。我们的非诉业务包括公司组建、兼并收购、移民、税务、信托和遗产、房地产、婚姻家庭等全方面的法律咨询服务。

        达瑞律师事务所即将在上海开办在中国的第一家办事处，中国司法部正在审批我们的申请。欲知更多达瑞律师事务所的信息，请联系迈阿密办公室，电话+1 (305) 375-9220 或者访问我们的网站：www.diazreus.com.

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 Posted on China.com.cn, Oct. 22, 2008

An Interview with Mr. Michael Diaz: Enterprises should Adapt Actively to Labor Law of PRC.

“The Third Annual Conference on Dispute Avoidance and Resolution” was held in Beijing through October 13, 2008 to October 14, 2008. During the meeting the journalist interviewed Mr. Michael Diaz, a partner of Diaz Reus Law Firm headquartered in America. Mr. Diaz talked about his personal opinions as to how enterprises should cope with risks and how lawyers should serve enterprises.

Q: Diaz Reus is an international law firm that provide full service, and it has its offices in America, Latin America, Europe, Asia and the Middle East. I want to know if Diaz Reus has any plans of opening representative office in China in the future?

Michael Diaz (M for abbreviation): Yes, we are now planning to open offices in China. Although, the license for Shanghai office is pending, and I think, we will get our license soon.

Q: I have read the introduction to Diaz Reus’s service range. You provide extensive legal services, including a great number of foreign-related services, for your clients, which means that you have to deal with clients and governments from lots of different countries. What do you think is the greatest challenge for a law firm to expand its businesses in another country?

M: The greatest challenge, I think, is to know the local laws. The local government will have lots of restrictions to foreign-invested firms, such as the range of services. Therefore, we want cooperation with local law firms. We don’t want to compete with them. It will be easier for us to do our businesses if there are local lawyers who are willing to help us dealing with problems we met. Besides, we can have a good understanding of local laws through dealing with cases.

Q: The Chinese government enacted the new Labor Law of the People’s Republic of China at the beginning of this year, which has aroused extensive discussion in the society. Particularly some of the enterprises responded in an intense way. But now the situation seems to have been getting better. As a lawyer, what do you think of this law?

M: I think it is a very good law and I don’t think it will bring adverse effects to enterprises.

Q: Since the implementation of the Labor Law, the disputes between enterprises and laborers have been accelerating. Some enterprises think that this law shows partiality for the laborers and increases the cost of enterprises. But still more people believe that enterprises were profit-centered and ignored the lawful interests of workers before. The publishing of this law not only explicitly make clear the rights and interests of workers but also enhance the awareness of them to protect their lawful interests. Therefore it’s normal that disputes increase. The disputes between employers and employees will gradually decrease as the enterprises learn more about the Law of Labor’s. What’s your opinion?

M: China has become increasingly important in its financial status around the world with its economic development. The government therefore begins to enhance its protection of the employees and the enterprises must try to adapt to this law. Employees are the essential part of enterprises. Without labor force, there would be no profits of the enterprises.

Q: Now lots of big companies can’t decide whether they should set up their own legal department inside the company or they should depend completely on professional law firms. What do you think is the most suitable way for enterprises?

M: This is a good question. It is difficult, and almost impossible, for the legal consultant of a big company to deal with all the legal problems in an adequate way. When there are some complicated legal problems, it would be a good choice for the legal consultant to deal with a quarter or one half of the problems themselves and then seek help from professional law firms for the rest of the work. In this way they can get professional and top-quality services; besides, they’ll be able to have the time and energy to reconsider the whole event. Moreover, the company can reduce its expenses by seeking help from professional law firms for some of its businesses.

Q: Do you have any good methods to help company reduce the number of its legal disputes?

M: First we will try to deeply understand the operating situation of the company in a bid to find out in which respects will a legal disputes most probably occur. Then we will draw up relevant rules and regulations to avoid or reduce the disputes. It will be difficult to let those leaders do by the laws if they are devoid of legal awareness. At this time you should tell him some of the cases in which great disputes happen because of the company’s lack of attention to law. If you explain to them the advantages of doing by the law and the disadvantages of ignoring the law, they will agree with you and accept your suggestions.

Link: http://big5.china.com.cn/law/txt/2008-10/22/content_16650071.htm

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Diaz Reus is listed on US Consulate-Shanghai website under international law firms:

http://shanghai.usembassy-china.org.cn/law_firms.html.

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DRRT is proud to be participating in this historic conference.   We will provide updates as the summit progresses.

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DRRT is pleased to congratulate Partner, Jorge L. Cruz-Bustillo.    Florida Governor Charlie Christ just appointed Mr. Cruz-Bustillo to serve as the Chairman of the Florida Elections Commission.   The Florida Elections Commission is the regulatory body responsible for regulating and enforcing the State of Florida's campaign laws.

Jorge Cruz-Bustillo is a partner in the firm's litigation practice group, where he concentrates his practice in international and domestic commercial litigation and arbitration. He also serves as Chair of DRRT’s Telecommunications Practice. Mr. Cruz-Bustillo has broad experience in the substantive fields of telecommunications, banking/anti-money laundering, construction, real estate, land use and election law.

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