The sentence was imposed today by U.S. District Judge Richard Smoak at the federal court in Panama City, Fla.

Mantra pleaded guilty on Sept. 12, 2006 to three counts of failing to keep the required records and seven labeling violations in connection with Mantra's production of Girls Gone Wild films containing depictions of sexually explicit conduct. Each count refers to a different film produced or distributed by Mantra. Mantra admitted that it failed to create and maintain age and identity documents for performers in sexually explicit films produced and distributed by Girls Gone Wild and failed to label their DVDs and videotapes, as required by federal law.

Joseph Francis, founder and CEO of both Mantra Films and MRA Holdings, LLC, pleaded guilty to similar offenses in U.S. District Court in Los Angeles and is scheduled to be sentenced on Jan. 22, 2007. MRA also entered into an agreement that defers prosecution of criminal charges against the company for three years, if MRA abides by an agreement with the government. The package agreement with Mantra, MRA and Francis includes a public acknowledgment of criminal wrongdoing, a pledge of cooperation with the government in future investigations, full compliance with the record keeping laws, and payment of a total of $2.1 million in fines and restitution.

The charges in this case are the first to be filed under a law passed by Congress to prevent the sexual exploitation of children. The law protects against the use of minors in the production of pornography by requiring producers to create and maintain age and identity records for every performer in sexually explicit movies and other media. Producers and distributors must then label their products with the name of the custodian of the records and their location.

Girls Gone Wild has admitted to hiring performers, and producing and distributing sexually explicit video materials during 2002 and part of 2003 while systematically violating the record keeping and labeling laws. The companies also admitted that in at least two instances in 2002 in Panama City they filmed minors in sexually explicit scenes that were included in two commercially released DVDs.

The cases are being prosecuted by Trial Attorney Sheila Phillips of the Obscenity Prosecution Task Force of the U.S. Department of Justice, U.S. Attorney Gregory Miller, and Assistant U.S. Attorney Dixie Morrow of the Northern District of Florida. The Justice Department's Obscenity Prosecution Task Force was formed to focus on the prosecution of adult obscenity nationwide. The Task Force is directed by Brent D. Ward. Investigation of the cases was conducted by Special Agent Denise Conrad of the Adult Obscenity Squad of the Federal Bureau of Investigation, which is based in Washington, D.C.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.  Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.  The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.  The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during October 2006.

US Sen. Chuck Grassley (R-IA) and Rep. Rush Holt (D-NJ) announced Tuesday that they have sent the FBI a lettersigned by thirty-three members of Congress asking it release information from its probe into the 2001 anthrax attacks, in which letters containing anthrax spores were sent to senators and news organizations, leading to the deaths of five people. The letter, signed by members of both parties and addressed to US Attorney General Alberto Gonzales, demands that the FBI release information to Congress on the five-year-old investigation. Until now, the FBI has refused to share information about the probe due to possible leaks, but the lawmakers dismissed the idea that the concerns should prevent them from effective oversight of the agency:

Given recent revelations that FBI agents were the anonymous sources for New York Times stories casting suspicion on “person of interest,” Stephen Hatfill, it appears that the FBI may itself be responsible for the inappropriate disclosures of sensitive case information. Whether on Capitol Hill or within the FBI, individuals who make inappropriate disclosures should be held accountable. However, as an institution, Congress cannot be cut-off from detailed information about the conduct of one of the largest investigations in FBI history. That information is vital in order to fulfill its Constitutional responsibility to conduct oversight of the Executive Branch.

Earlier this month, New York Times asked a federal court to dismiss a libel and intentional infliction of emotional distress lawsuit brought by Hatfill after the newspaper published a story stating that the government's decision not to further pursue him as a suspect was the result of "poor investigation."

During his remarks, Annan outlined five lessons he learned during his 10-year leadership of the United Nations, including "that both security and development ultimately depend on respect for human rights and the rule of law."

Annan said:

Although increasingly interdependent, our world continues to be divided "not only by economic differences, but also by religion and culture. That is not in itself a problem. Throughout history human life has been enriched by diversity, and different communities have learnt from each other. But if our different communities are to live together in peace we must stress also what unites us: our common humanity, and our shared belief that human dignity and rights should be protected by law.

That is vital for development, too. Both foreign investors and a country's own citizens are more likely to engage in productive activity when their basic rights are protected and they can be confident of fair treatment under the law. And policies that genuinely favor economic development are much more likely to be adopted if the people most in need of development can make their voice heard.

In short, human rights and the rule of law are vital to global security and prosperity. As Truman said, "We must, once and for all, prove by our acts conclusively that Right Has Might." That's why this country has historically been in the vanguard of the global human rights movement. But that lead can only be maintained if America remains true to its principles, including in the struggle against terrorism. When it appears to abandon its own ideals and objectives, its friends abroad are naturally troubled and confused.

And states need to play by the rules towards each other, as well as towards their own citizens. That can sometimes be inconvenient, but ultimately what matters is not convenience. It is doing the right thing. No state can make its own actions legitimate in the eyes of others. When power, especially military force, is used, the world will consider it legitimate only when convinced that it is being used for the right purpose "for broadly shared aims" in accordance with broadly accepted norms.

No community anywhere suffers from too much rule of law; many do suffer from too little" and the international community is among them. This we must change.

The US has given the world an example of a democracy in which everyone, including the most powerful, is subject to legal restraint. Its current moment of world supremacy gives it a priceless opportunity to entrench the same principles at the global level. As Harry Truman said, "We all have to recognize, no matter how great our strength, that we must deny ourselves the license to do always as we please."

A Milan court will hear arguments on January 9 on whether to try CIA and Italian agents on charges of kidnapping a terrorism suspect in Milan and flying him to Egypt, where he says he was tortured, a court source said on Monday.

Prosecutors want to try 26 Americans, most believed to be CIA agents, and six Italians, including the former head of Italy's SISMI military intelligence agency.

Prosecutors believe the CIA agents, with help from SISMI, grabbed Hassan Mustafa Osama Nasr off a Milan street in February 2003, bundled him into a van and flew him out of Italy from a U.S. airbase.

Nasr, an Egyptian also known as Abu Omar, says he was tortured by Egyptian agents under questioning there with electric shocks, beatings, rape threats and genital abuse.

Italian Judge Caterina Interlandi must decide if there is enough evidence for a trial.

If so, it would be the first criminal trial in the world over so-called "renditions", one of the most controversial aspects of U.S. President George W. Bush's global war on terror.

Washington acknowledges secret transfers of terrorism suspects to third countries, but denies torturing suspects or handing them to countries that do.

Italy's prime minister at the time, Silvio Berlusconi, has publicly denied knowledge of any kidnapping plot.

A high-ranking SISMI suspect says the CIA wanted the agency to help it abduct the imam but that he declined.

One suspect, an Italian police officer, has admitted he stopped Nasr and helped CIA agents grab him.

But he says the CIA told him the goal was to recruit -- not abduct -- the Muslim cleric. He also says he was told the U.S. and Italian governments sanctioned the operation.

Beyond the 32 suspects accused of kidnapping the imam, another three suspects, all Italians, also face lesser charges of aiding and abetting.

The US Roman Catholic Archdiocese of Portland has settled child sex abuse lawsuits with about 150 people, court-appointed mediators US District Judge Michael Hogan and Oregon Circuit Judge Lyle Velure announced. They reported that "the vast majority of the known tort claims were settled... the Archdiocese has agreed to pay...the few remaining unresolved known tort claims...and future tort claims." The amount of the settlement was not disclosed, but Hogan said the diocese had more than $50 million in assets of its own in which to cover the settlements. AP has more. The Seattle Times has additional coverage.

The Portland archdiocese, which filed for Chapter 11 in 2004, was the first one to file for bankruptcy in the face of civil litigation over sex abuse claims. Since then, the dioceses of Tuscon, Spokane, and Davenport have also filed for Chapter 11 protection in the wake of hundreds of sexual abuse lawsuits filed against the clergy. In June, a federal judge allowed a sexual abuse lawsuit against the Portland archdiocese to continue, rejecting the Vatican's bid to dismiss the suit for lack of jurisdiction. The lawsuit, filed in 2002 in the US District Court for the District of Oregon, alleged that the Vatican, the Archdiocese of Portland and the archbishop of Chicago conspired to protect a priest by transferring him from city to city, even though the church knew he had a history of committing sexual abuse. Earlier this month, the Archdiocese of Los Angeles settled 45 sexual abuse lawsuits for $60 million.

NEW YORK – U.S. Deputy Attorney General Paul J. McNulty announced today during a speech at a meeting of the Lawyers for Civil Justice in New York that the Department of Justice is revising its corporate charging guidelines for federal prosecutors throughout the country.

The new guidance revises the Thompson Memorandum, which was issued in January 2003 by then-Deputy Attorney General Larry D. Thompson and titled the “Principles of Federal Prosecution of Business Organizations.” The memo provides useful guidance to prosecutors in the field through nine factors to use when deciding whether to charge a corporation with criminal offenses.

The guidance continues to require consideration of the factors from the Thompson memo but adds new restrictions for prosecutors seeking privileged information from companies. Specifically, it creates new approval requirements that federal prosecutors must comply with before they can request waivers of attorney-client privilege and work product protections from corporations in criminal investigations.

“Our efforts to investigate and prosecute corporate fraud in the past five years through the President’s corporate initiative have been tremendously successful,” said Deputy Attorney General Paul J, McNulty. “With this new guidance, we want to encourage corporations to prevent corruption through self-policing and continue to punish wrongdoers through cooperation with law enforcement.”

The new guidance requires that prosecutors must first establish a legitimate need for privileged information, and that they must then seek approval before they can request it. When federal prosecutors seek privileged attorney-client communications or legal advice from a company, the U.S. Attorney must obtain written approval from the Deputy Attorney General. When prosecutors seek privileged factual information from a company, such as facts uncovered in a company’s internal investigation of corporate misconduct, prosecutors must seek the approval of their U.S. Attorney. The U.S. Attorney must then consult with the Assistant Attorney General of the Criminal Division before approving these requests.

The guidance cautions prosecutors that attorney-client communications should be sought only in rare circumstances. If a corporation chooses not to provide attorney-client communications after the government makes the request, prosecutors are directed not to consider that declination against the corporation in their charging decisions. Prosecutors are told to request factual information first and make sure they can establish a legitimate need to go further before requesting a waiver of privilege to obtain attorney-client communication or legal advice.

The new memorandum also instructs prosecutors that they cannot consider a corporation’s advancement of attorneys’ fees to employees when making a charging decision. A rare exception is created for those extraordinary instances where the advancement of fees, combined with other significant facts, shows that it was intended to impede the government’s investigation. In those limited circumstances, fee advancement may be considered only if it is authorized by the Deputy Attorney General.

The changes announced today by Deputy Attorney General McNulty were made after careful review and numerous meetings with those in the business and legal communities who raised concerns about the Department’s guidance.

“We will safeguard every tool prosecutors need to fight fraud and continue our aggressive efforts in rooting out corruption in our financial markets to protect the interests of the investing public,” said Deputy Attorney General McNulty. “The Department supports the sanctity of attorney-client privilege. We encourage full and frank communication between corporate employees and their lawyers. With this new guidance, I will personally approve all future requests for attorney-client communications.”