Dell Financial Services (DFS) has found and reported several operational deficiencies in its business, including the way it has posted customer payments, collected on delinquent accounts and failed to reconcile some accounts on a timely basis, according to filings with the Securities and Exchange Commission by the company's primary financing partner.

The report filed by CIT Group's collateral unit, which has funded some DFS operations, is among the first under new, more stringent rules enacted by the SEC that are designed to provide greater detail to investors in asset-backed securities, securities that provide cash for many credit and leasing operations.

The items spelled out do not involve accounting issues.

Gavan Goss, DFS' chief financial officer, told CRN the issues involved have either been fixed or are in the process of being fixed.

DFS is a joint venture between Dell and CIT Group and has become Dell's US$6 billion-a-year financing arm. According to CIT Group's disclosure, DFS fell short of complying with its role under the financing terms in a US$1 billion asset-backed securitization sale, including the following:

A failure to make sure its third-party "lockbox vendors" - like banks - completely and accurately met compliance reporting requirements. DFS reported this as a "material deficiency" in this aspect of its operation, according to the CIT filing.

DFS reported "certain loss mitigation or recovery actions that were not initiated, conducted or concluded in accordance with the required time frames established under the transaction agreement," according to the CIT disclosure.

DFS took more than an allotted 90 days to reconcile certain accounts last year.

Through the middle of last year, DFS had about US$6 billion in assets under management, and the unit has become strategic to Dell's long-term plans. In addition to providing credit and financing so customers can buy its products, Dell executives have said DFS offers a competitive advantage to rivals because it gives the company an ongoing touch point with customers during the life of a product or a financing agreement.

As of Dell's most recent financial reports last year, computer and service sales through DFS accounted for more than 10 percent of Dell's total revenue. And while Dell owns 70 percent of the joint venture with CIT, it has an agreement to buy the rest of DFS outright as early as next year.

DFS executives told financial analysts in a teleconference last year that about half of its financing activity was conducted with commercial customers, and about half through consumers.

The plaintiffs included 12 states, including the three West Coast states, American Samoa, several cities and 13 environmental groups, but not Hawaii. Justice John Paul Stevens, writing for the 5-4 majority, noted that the plaintiffs submitted "uncontested affidavits" that "the rise in sea levels associated with global warming has already harmed and will continue to harm" those areas. "The risk of catastrophic harm, though remote, is nevertheless real."

Nowhere is that potential harm greater than in the Pacific. The world's sea level is projected to rise by as much as 23 inches by 2100, compared with 6 to 9 inches in the past century, the International Panel on Climate Change of the United Nations reported in February. Other estimates are more pessimistic.

Much of Waikiki could be underwater in the not-too-distance future, and the president of Kiribati has notified the United Nations that many of his 100,000 citizens will have to find other quarters when the atolls become unlivable in 50 years.

California has taken the lead with a new law to cut nearly 30 percent of carbon dioxide emissions on cars sold in the state beginning in 2016. A dozen other states have enacted similar laws, and Hawaii's Legislature is nearing approval of a bill aimed at lowering the state's greenhouse gas emissions to 1990 levels by 2020.

The effort to control emissions must be national. The high court ruling means that EPA is allowed to regulate emissions, giving momentum to Congress to eliminate any wiggle room and require that it do so.

That is understood by Rep. John Dingell, a Michigan Democrat who supports the auto industry and is chairman of the House Energy and Commerce Committee. In a prepared statement, Dingell said the ruling "provides another compelling reason why Congress must act, and the president must sign, comprehensive climate change legislation."

The arrest of John Zarcone, an attorney and the scion of one of Putnam County's best-known political families, on charges of cocaine possession and threatening to kill his wife has shocked the many people who know him from public life.

The aggressive, tough-talking lawyer who shaped development in his town as leader of its Planning Board was arrested Sunday night by Putnam County sheriff's deputies.

Zarcone, 45, was accused of having cocaine and hydrocodone, a narcotic painkiller contained in prescription drugs such as Vicodin, as well as calling and verbally abusing his wife before threatening to kill her.

Zarcone released a brief written statement shortly after 5 p.m. yesterday, sent via fax from his law office. It said that he had turned himself in to police and had "now placed myself in a rehabilitation facility."

"I am fortunate to have the support of my loving wife and children in this difficult time," he said. "I look forward to overcoming this problem and resuming a normal life."

His mother, Marie Zarcone, also an influential figure in Republican Party circles, denied yesterday that her son had drugs on him at the time of his arrest. She also said he had checked himself into a treatment program. She refused to give further details.

"This is a domestic situation, and this is a first offense," she said. "He is seeking the medical help he needs, and he will be exonerated."

Law firm blogs build and strengthen relationships through the sharing of knowledge in specific practice areas. Law blogs also are used to announce such things as verdicts and firm success stories, legal articles and reviews, and changes in legislation. Marketers say this is the newest way to talk to target audiences, providing a friendlier venue for client communication. Consultants fear that numerous voices and opinions projected through a firm's Web site could create a perception of disorganization and chaos.

Kevin O'Keefe of LexBlog.com believes that legal commentary and insight is critical to every law firm's success.

"Law firms should no longer worry about being taken seriously when blogging," he writes. "Americans are accepting blogs as part of the fabric of our society."

O'Keefe's statement stems from concerns that important issues are being treated carelessly when discussed in a casual forum such as Web logs. To that end, advisers suggest that law firms continue producing newsletters, e-alerts and annual reports, and to treat blogs as an expansion of Web site marketing. When managed properly and written correctly, legal blogs can project author articulation, industry intelligence, and technical sophistication.

Too much of a good thing causes problems though, as in the case of a New Jersey law firm, which nearly lost its insurance coverage due to blog material. The carrier told members of the firm that they could not cover the firm's Web site if blogging continued, viewing the ongoing conversations as a liability since content could be perceived as legal advice.

With all of the necessary disclaimers in place, a legal blog can help a lawyer build professional credibility and expertise if reliable, quality information is posted. The outcome is the achievement of client loyalty, a return on an investment of time. As one critic argued, Web blogs are easy and inexpensive to start, but extremely difficult and time consuming to maintain. The jury is still out on a firm's financial gain after launching practice blogs, but when compared to the publication of glossy brochures and firm magazines, one thing is certain: Talk is cheap.

http://www.wvrecord.com/news/193099-your-legal-writes-law-firm-blogs-post-mixed-results

Australian Guantanamo Bay detainee David Hicks will not speak to the media in violation of a court order, Hicks' lawyer said Wednesday. Despite statements by Australian Attorney-General Philip Ruddock that Australia cannot enforce the gag order once Hicks returns to the country, Hicks' lawyer told Australia's ABC News that Hicks is not interested in speaking to the media. According to his lawyer, Hicks "is focused on getting home...to be close to his family."

Hicks submitted an application Monday to be transferred to a prison near his home in South Australia to serve the remainder of his nine-month sentence after pleading guilty to a charge of supporting terrorism last week. The Australian government is awaiting formal documentation from US authorities to move Hicks from the US prison camp at Guantanamo Bay. Once this information is received, the Australian federal government can approach the state government in South Australia to move the process forward, including assessing security requirements and a potential control order.

Monica M. Goodling, on leave from her post as special counsel to the US Attorney General, told the House Judiciary Committee on Tuesday that she will not speak to the committee about her role in last year's firing of eight US attorneys. Committee members said that a voluntary interview would forgo the need to subpoena Goodling, but Goodling's lawyer stated that even if she was subpoenaed before the committee, she would claim protection under the Fifth Amendment. Some House representatives doubt her ability to do so, stating that "her claims do not constitute a valid basis for invoking the privilege against self-incrimination." Goodling has said previously that she will refuse to testify before Congressional committees, indicating that she would plead the Fifth Amendment if called to speak.

Senate Democrats have rejected attempts by the White House to advance the date that US Attorney General Alberto Gonzales is scheduled to testify on the firings. Gonzales defended his role in the firings on Friday, admitting that there has been some confusion, but saying that his involvement in the matter was limited to signing off on recommendations made by his former chief of staff Kyle Sampson. Sampson, who resigned last month, told the Senate Judiciary Committee last week that the prosecutors were fired for political reasons rather than for poor performance as the Justice Department has claimed. Sampson also said Gonzales did more than merely follow his recommendations, and that Gonzales and former White House counsel Harriet Miers were deeply involved in the firings.

Several Chinese consumers have decided to file a collective lawsuit against HP China because of the frequent failures of the company's LaserJet 3330 printer.

According to chinese media, beginning in 2004, more and more consumers have reported about the quality problems and design defects of HP's LaserJet 3330 printer, but HP has never given a definite answer on how it plans to solve the problems. As most of the users of this type of printer are companies, they don't worry much about the failure, but some individual consumers can't stand the frequent issues any more and they have decided to sue HP China. Local media have neither reported in which court the plaintiffs plan to file their case nor the exact amount of damages they are seeking.

A representative from HP China says that HP China has asked consumers to dial their free telephone hotline to report and solve the problem, but they don't say if there is any design problem with the printer. HP China also also has no plans now to recall the product.

This particular printer was made in 2003 and its production was stopped in 2004. In response to reports of the printer's scanning problem at that time, HP prolonged the maintenance period for one more year and in 2005 it offered a special exchange policy for this product.