Federal Estate Tax Changes. Each U.S. citizen and permanent U.S. resident is entitled to an “applicable exclusion amount” that exempts up to a certain amount of an estate from the federal estate tax. For 2008, the applicable exclusion amount is $2 million. Up to $1 million of an individual’s applicable exclusion amount may be used during life to shield taxable gifts from gift taxes. Up to $2 million, minus the amount used during life for taxable gifts, may be used to shield estate assets from the federal estate tax. On January 1, 2009, the applicable exclusion amount will increase to $3.5 million for federal estate tax purposes. The amount available to use for gift taxes will remain at $1 million.

The federal money laundering statutes have long been a powerful weapon in the prosecution’s arsenal. In addition to severe penalties and sweeping forfeiture provisions, the statutes criminalize conduct involving 250 predicate offenses, thus providing a potent federal tool to investigate and prosecute a vast array of criminal conduct.

However, in two decisions issued on June 2, Cuellar v. United States and United States v. Santos, the U.S. Supreme Court carefully parsed the language and meaning of these statues, and in the process narrowed their reach.

Lawyers from Wiggin and Dana recently won a defense verdict for former CVS Vice President John R. “Jack” Kramer in Rhode Island federal court after Kramer and a codefendant collectively faced 46 counts of bribery, mail fraud and conspiracy.

The two were part of a probe into influence peddling at the Rhode Island statehouse and specifically came under fire for allegedly paying former Rhode Island State Sen. John Celona to kill legislation opposed by CVS or sponsor bills the company supported.

Two recent regulatory developments – FAS 123R and Internal Revenue Code §409A – both of which require that companies determine the value of common stock when it’s used for compensation purposes – are driving non-public companies toward more formal (and more frequent) valuations for grants of stock options and SARs and other stock-based compensation (all referred to in this article as “options”).

The Wiggin and Dana team was lead by corporate partners Frank Marco and Paul Hughes, and included technology partner Mary Norris, tax partner Peter Gruen, counsel Rebecca Matthews, associates William Kilgallen, Elizabeth Parcella and Christian McNamara, and paralegal Tracy Doherty.

“We were thrilled with the success of the event,” remarks Diversity Partner Bethany Appleby, “with such an incredible variety of dishes prepared the evening was very festive and a wonderful way to celebrate our collective heritages.”

Wiggin and Dana also announced today that it has promoted Kevin S. Budge of the Litigation Department, and Helen C. Heintz of the Trusts & Estates Department, to counsel. Mr. Budge is based in the firm’s New Haven office, and Ms. Heintz in its Stamford office. Both were previously associates with the firm.

It’s the firm’s lack of depth, however, in other areas of law practice that two now-former principals are citing as the reason for their jump to Wiggin and Dana.

New Haven’s Wiggin and Dana recently did just that, bringing aboard two former federal prosecutors as partners to help clients in cases involving corporate compliance, government investigations and internal audits.

James I. Glasser joined the firm after 19 years in the U.S. Attorney’s office in Connecticut, most recently serving as counsel to U.S. Attorney Kevin O’Connor and chief of the criminal division. Joseph W. Martini arrived at Wiggin from Pepe & Hazard in Hartford, for whom he practiced after serving as federal prosecutor for nine years.

Mr. Glasser joins the firm from the U.S. Attorney’s Office for the District of Connecticut and Mr. Martini joins from the firm Pepe & Hazard LLP.