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Lawyers plead guilty to fraud in U.S. trading case
Court Watch | 2007/05/10 10:01

A former Morgan Stanley <MS.N> lawyer and her attorney husband pleaded guilty on Thursday to conspiracy and securities fraud in what U.S. authorities have called the most pervasive insider trading ring since the 1980s that netted more than $15 million in illegal profits. Randi Collotta, 30, and Christopher Collotta, 34, admitted to Judge Victor Marrero in Manhattan Federal Court that they made $9,000 through one of the schemes in the Wall Street insider trading case that netted hundreds of thousands of dollars to various parties between September 2004 and August 2005.

Randi Collotta, who worked for Morgan Stanley's compliance division in New York, admitted to giving information about upcoming mergers and acquisitions to her husband, who is in private practice.

Christopher Collotta told the court he shared some of the insider information with Florida broker Marc Jurman, who agreed to share part of his profits with the Collottas and also passed the information along to others.

The couple sat at opposite ends of a long table at the hearing, flanked by their lawyers and occasionally glancing at each other. Randi Collotta wept softly as she read a statement admitting her guilt.

"Randi Collotta accepted responsibility for what she did, and today she took a significant step in putting this behind her," her lawyer Kenneth Breen said after the hearing.

The Bayport, New York couple were among 13 people charged criminally in March with participating in the scheme. The U.S. Securities and Exchange Commission filed separate, civil charges against 11 people, including the Collottas.

Six of the 13 defendants, including Jurman, have pleaded guilty.

Christopher Collotta's lawyers released a statement after the hearing saying, "Mr. Collotta recognizes that these are serious offenses, deeply regrets his actions in participating in these offenses, and realizes that he will have to live with the consequences of his actions for the rest of his life."

Both defendants agreed to forfeit $9,000 in profits they made through the scheme. Randi Collotta agreed not to appeal a sentence of 18 months or less in prison, while her husband agreed not to appeal a sentence of 16 months or less, Assistant U.S. Attorney Andrew Fish said. Both face a maximum 25 year prison term.

The couple were released until sentencing, scheduled for Sept. 7. They have been free on $250,000 bond each.



Planned Parenthood Defends Detriment of Young Girls
Breaking Legal News | 2007/05/10 09:56

Planned Parenthood (PP), Southwest Ohio Region, and its representatives were without comment on Wednesday, May 9, 2007, when they were named as defendants in a lawsuit filed in Warren County Ohio, alleging that they violated Ohio law by their failure to report the sexual abuse of minors.  The suit alleges that on November 15, 2004, 16 year-old Denise Fairbanks, was brought to PP by her father, who had been sexually assaulting her since she was 13. He sought an abortion for his daughter at PP's Auburn Avenue facility in order to cover up the sexual abuse and resulting pregnancy. 

"If the allegations are true, then PP is complicit in the abuse of Ms. Fairbanks when they should have protected her," says Dana Cody of Life Legal Defense Foundation (LLDF).    "Our children deserve better."   

Attorney Brian E. Hurley of Cincinnati based law firm Crabbe, Brown and James, who is representing Ms. Fairbanks, stated in the complaint that PP's "don't ask, don't tell policy" resulted in another one and one-half years of abuse of Ms. Fairbanks.  It wasn't until a basketball coach reported the abuse that Ms. Fairbanks's father was tried and convicted of sexual assault. 


The suit also alleges the failure to report abuse of another unnamed minor as proof of PP's pattern and practice of non-reporting of sexual abuse of minors.


In addition to the failure to protect Ms. Fairbanks by not reporting the abuse in violation of the law, the suit calls into question PP's policies and procedures as well as the training and supervision of clinic employees.  


A copy of the complaint is available at www.lldf.org.  LLDF is helping to fund a similar case, also in Ohio, Roe v. Planned Parenthood.  That suit seeks damages against PP for performing an abortion on a minor in violation of  Ohio law, including laws mandating reporting of suspected sexual abuse of minors .  There is a hearing in that case next week, wherein PP has objected to producing records requested by "Roe," who is making allegations similar to those of Ms. Fairbanks.  "Roe" is also being represented by Mr. Hurley.



Oregon gay rights bills signed into law
Breaking Legal News | 2007/05/10 08:11

Oregon Governor Ted Kulongoski signed two gay rights bills into law Wednesday, establishing civil unions for gay couples and enacting anti-discrimination measures. House Bill 2007 allows same-sex couples to enter into contractual domestic partnerships with the same state benefits as married couples. The measure covers state benefits including inheritance, child custody, and hospital visitation rights, but does not affect federal benefits for married couples. Kulongoski had said he would sign the bill if it passed the state House and Senate. Kulongoski also signed Senate Bill 2, banning discrimination on the basis of sexual orientation in employment, housing, and public accommodations, and creating a civil cause of action for violations of the act.

Currently, Vermont, Connecticut, California, New Jersey, Maine and Washington are the only states that recognize civil unions or domestic partnerships. The Washington State Senate passed a domestic partnership bill in March. Late last month, the New Hampshire Senate voted in favor of a bill already passed by the state House allowing same-sex civil unions. Also in late April, New York Governor Eliot Spitzer introduced a bill to legalize gay marriage in New York.



Senate OK's tighter drug safety policing
Breaking Legal News | 2007/05/10 05:20

The Food and Drug Administration would have to establish a system to monitor the safety of new drugs after they hit the market and the pharmaceutical industry would be required to register clinical trials of new medicines in a publicly available database under legislation approved yesterday by the Senate.

The provisions are part of a sweeping bill, approved by a 93-to-1 vote, that would reauthorize the federal practice of charging drug makers hundreds of millions of dollars in fees each year to speed up FDA review approval of new drugs. The system of fees will expire Sept. 30 unless Congress reauthorizes it before then. The House has not yet taken up similar legislation.

The Senate bill also would enable the FDA to fine companies that fail to report contaminated food and require the government to establish labeling standards for pet food and to create a system to detect tainted pet food and notify the public of recalls.

It would provide for fines of up to $2 million for pharmaceutical companies that do not comply with the new system to measure the risks of new and high risk drugs in the first few years after they become available in the marketplace.

"This legislation is going to make the prescription drugs that families take safer and our food safer, and it's going to ensure that the agency has the resources to do follow-on reviews and continue to be the gold standard for safety," said Senator Edward Kennedy, Democrat of Massachusetts, chairman of the Senate Health, Education, Labor, and Pensions Committee and a lead sponsor of the bill.

Senator Mike Enzi, Republican of Wyoming , the chief Republican sponsor of the bill, said: "The changes made in the drug safety components of this legislation are critical to restoring peace of mind to Americans who want to be assured that the drugs they purchase to treat illnesses and chronic medical conditions can be relied upon and trusted."

Peter Lurie, deputy director of the health research group at the nonpartisan advocacy organization Public Citizen, agreed that the bill improves drug safety, but said lawmakers failed to address the core issue: that the FDA user fee system requires a regulated industry to fund its regulators.

"It is a fundamental conflict of interest to have an industry be able to dictate to an agency the speed at which reviews will take place," Lurie said. "And yet that's exactly what happens and nobody challenged that in a fundamental way."

The Senate legislation was shaped in part by an analysis by the Institute of Medicine last year that concluded the federal system for approving and regulating drugs is in serious disrepair. That report, requested by the FDA, followed two years of controversy over drug safety after the 2004 withdrawal of the arthritis drug Vioxx because of the risk of heart attacks.

Much of the institute report focused on a key gap in drug regulation: While the FDA requires stricter data on the safety and effectiveness from clinical trials before approving a new drug, less attention is paid after the drug reaches the market.

The Senate bill requires stepped up monitoring of new drugs for dangerous side effects and gives the FDA new authority to limit the sale of medicines if problems are found.

Drug makers could be required to undertake new studies of drugs after approval, and physicians who prescribe certain high-risk drugs would have to undergo special training.



Texas Man Sentenced To Life In Death Of TCU Kicker
Criminal Law | 2007/05/10 02:22

A Conroe man who pleaded guilty to shooting a TCU football player to death last year has been sentenced to life in prison. Kasey Davis was a freshman kicker for the Horned Frogs.

Police say he was gunned down in a car by 42-year-old Jeffrey Clay Lasiter in January 2006 while home for Christmas break. The shooting appeared to be random.

The two men did not know each other. Lasiter pleaded guilty Monday before the start of his trial.

His attorneys had argued that the divorced, unemployed father of two suffers from a mental illness.



DC Circuit denies en banc rehearing of gun control case
Law Center | 2007/05/10 02:15

The US Court of Appeals for the DC Circuit Tuesday denied a request by the city government of Washington, DC for an en banc rehearing of the court's March decision invalidating the city's handgun ban. DC Mayor Adrian Fenty expressed disappointment with the decision, saying that "The District's gun control laws have been a critical part of the City's public safety strategy for more than 30 years. I remain deeply committed to combating gun violence and vigorously defending the laws of the District of Columbia." The city now has 90 days to file an appeal with the Supreme Court.

The city petitioned the circuit court for an en banc rehearing last month, after a 2-1 panel vote in Parker v. District of Columbia held that the Second Amendment required the court to overturn a 31-year old ban on handguns in the District of Columbia. A Republican bid to overturn the DC gun ban legislatively passed the US House of Representatives in 2004 but failed to get Senate approval.



Richard Levin Joins Cravath, Swaine & Moore
Law Firm News | 2007/05/09 12:29

On July 1, 2007, Richard Levin will join Cravath, Swaine & Moore LLP as a partner to head the Firm's newly established restructuring and insolvency practice. Rich, who served as counsel to a subcommittee of the House Judiciary Committee from 1975 to 1978, was one of the principal authors of the Bankruptcy Code and the Bankruptcy Reform Act of 1978. He has significant experience guiding debtor and non-debtor clients through insolvency restructuring or reorganization, structuring and negotiating complex deals involving bankrupt companies and, where necessary, directing litigation in support of the negotiations. Rich joins Cravath from Skadden, Arps, Slate, Meagher & Flom LLP, where he was a partner in that firm’s corporate restructuring department.



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