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A Southern District of New York jury has convicted an Atlanta attorney who defended himself against charges that he defrauded investors in penny stocks. Ulysses Thomas Ware, 46, was found guilty Monday of securities fraud and conspiracy to commit securities and wire fraud following a two-week trial before Judge William Pauley. Ware and co-conspirators at his firm, Rosenfeld, Goldman & Ware, were accused of issuing phony press releases to pump up the price of two stocks, Service Systems and Investment Technology Ltd., and then dumping the shares, making a profit of $225,000 from January through April 2002. New York High Court Davis Polk & Wardwell did not commit legal malpractice in its handling -- ultimately successfully -- of a longstanding federal tax case for the AmBase Corp. and is entitled to a fee of more than $1.4 million, the New York Court of Appeals ruled unanimously Thursday. In a second unanimous ruling involving a legal malpractice claim, the court determined that Shayne, Dachs, Stanisci, Corker & Sauer of Mineola was negligent in the way it represented a traffic accident victim. But the judges ruled the plaintiff was not entitled to some $190,000 in damages he sought from the firm. A former New York law firm partner who allegedly made almost $18 million trading in the securities of his clients has been arrested on fraud charges. Louis W. Zehil, until Feb. 16 a partner in the New York office of Richmond, Va.'s McGuireWoods, allegedly used his position as issuer's counsel in seven private placement transactions occurring between January 2006 and last month to accumulate millions of discounted shares, absent the sale restrictions such discounts generally entail. He allegedly sold the stocks at a vast profit. Zehil, 41, now faces up to 20 years in prison and millions in fines on fraud charges brought by the Southern District U.S. Attorney's Office. He is also facing a civil suit brought by the Securities and Exchange Commission, which is seeking disgorgement of his allegedly ill-gotten gains. The ex-partner was arraigned Wednesday before Southern District of New York Magistrate Judge Henry Pitman but not required to enter a plea. He was released on a $250,000 personal recognizance bond. Andrew M. Lawler, Zehil's lawyer, declined to comment on the case Wednesday.