After entering a guilty plea, John Farahi, founder of Newpoint Financial Services Inc., was sentenced to 10 years in federal prison on March 20, according to a National Law Journal story. The Beverly Hills businessman admitted his role in a $20 million Ponzi scheme and the plea could have ramifications for former Nixon Peabody securities partner David Tamman, who was found guilty for his role in the scheme.

A Los Angeles nutrition company is locked in a legal battle with billionaire hedge fund manager Bill Ackman, who has accused the company of perpetuating a pyramid scheme. Herbalife officials said the company will up their legal defense costs from $25 million to $40 million in the wake of Ackman’s accusations, according to a Los Angeles Times article.

Don Prophete, 45, resigned from the Ogletree Deakins Nash Smoak & Stewart's law firm in Kansas City, Missouri after what he described as a "completely unacceptable" response to accusations made by one of the firm’s lawyers that she had been harassed and discriminated against by an office manager, according to a Reuters report.