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E. Idaho investor pleads guilty in fraud case
Corporate Governance |
2011/06/01 08:58
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A former eastern Idaho investor has pleaded guilty to felony wire fraud and money laundering as part of an agreement with federal prosecutors.
Daren Palmer, who appeared in U.S. District Court in Pocatello on Tuesday, remains on supervised release until his sentencing on Aug. 22.
Prosecutors say Palmer duped clients out of millions of dollars in a Ponzi scheme over the course of several years. Investigators accused him of using his company, Trigon Group, to fraudulently take more than $76 million from 68 separate investors.
State and federal officials called it a classic Ponzi scheme, in which money from new investors is used to pay off earlier investors. The scheme falls apart when clients start trying to pull their money out and there aren't enough new investors to provide funds.
In Idaho, federal prosecutors filed charges against Palmer last month after a two-year FBI investigation. The Securities and Exchange Commission and the Commodity Futures Trading Commission won civil lawsuits against Palmer, who was ordered to pay about $90 million in restitution and fines.
Palmer has cooperated with his prosecution and wanted to plead guilty as early as a year ago, said assistant U.S. Attorney Jack Haycock.
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Judge: Texas foster care lawsuit can proceed
Class Action |
2011/05/30 13:12
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A judge says she will allow a lawsuit challenging Texas' foster care system to proceed as a class action.
U.S. District Judge Janis Graham Jack said during a hearing Thursday that she will grant class certification for the suit initiated by the advocacy group Children's Rights.
The suit contends that the Texas system is unconstitutional and should be reformed. It was filed in March on behalf of nine children between the ages of nine and 16.
A spokesman for Texas Attorney General Greg Abbott says the state will determine its next course of action when the judge issues a written order.
The suit is the 12th of its kind initiated by the New York-based advocacy group seeking to reform child welfare systems administered by state or municipal governments. |
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Gov. Rick Perry signs tort reform bill into law
Breaking Legal News |
2011/05/30 13:07
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Gov. Rick Perry signed into law Monday a measure that will limit frivolous lawsuits by levying some fees on plaintiffs and allowing meritless suits to be dismissed early in the process.
Perry designated the "loser pays" bill a top priority of the legislative session, saying Texas needs to crack down on junk lawsuits.
Some plaintiffs who sue and lose will be required to pay the court costs and attorney fees of those they are suing. The law also creates expedited civil actions for cases less than $100,000. It goes into effect Sept. 1.
Perry said the legislation "provides defendants and judges with a variety of tools to expedite justice for those deserving."
"Employers will spend less time in court and more time creating jobs," he said.
The law will encourage timely settlements by penalizing parties who turn down reasonable settlement offers to try to get more than they should.
Perry said the changes reduce the cost of litigation while still allowing legitimate cases to proceed. Supporters say the state's business climate will improve because the reforms will make Texas more attractive to employers looking to expand or relocate. |
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Court refuses to reconsider Spector's appeal
Class Action |
2011/05/30 13:06
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An appeals court on Friday refused to reconsider music producer Phil Spector's appeal of his murder conviction, saying there was overwhelming evidence of his guilt.
The California 2nd District Court of Appeal panel acknowledged it did not consider an issue that defense lawyers now say was critical to his conviction.
The panel blamed the lawyers for failing to sufficiently brief the point and said they had no obligation to consider it.
They quoted case law saying, "Issues do not have a life of their own: if they are not raised ... we consider the issues waived."
Spector, a legendary rock music producer, was convicted two years ago of fatally shooting actress Lana Clarkson at his Alhambra mansion in 2003. He is serving 19 years to life in prison on a second-degree murder conviction.
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RIM Says Investor Suit Is 'Without Merit'
Class Action |
2011/05/29 13:12
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Research In Motion Ltd., maker of the BlackBerry smartphone, said Friday that allegations that the company misled investors about its financial state are "without merit."
Lawyers for shareholders of the company filed a lawsuit this week in the U.S. District Court for the Southern District of New York, seeking class action status. The suit claims that between Dec. 16, 2010 and April 28 RIM executives made false and misleading statements about the company's financial condition and business prospects. The suit, which was filed by Mary T. Stabile on behalf of anyone who bought the stock during that time frame, names RIM itself, Chief Financial Officer Brian Bidulka, and co-CEOs Jim Balsillie and Michael Lazaridis as defendants.
The suit is the latest in a string of negatives for RIM. The company's BlackBerry smartphones are known for their security and reliability as email devices, but haven't kept up with Apple Inc.'s iPhones or phones that use Google Inc.'s Android software when it comes to running third-party applications. In addition to its sales struggles, the company released its first tablet, the BlackBerry PlayBook, to mixed reviews in April and had to recall about 1,000 of the devices in May due to defective operating software that could have made it impossible for users to set up the device. Most of the gadgets were recalled before being purchased by consumers.
The suit alleges that RIM "failed to inform investors that its aging product line and inability to introduce new products to the market was negatively impacting the company's business and margins." It also argues that RIM knew that BlackBerry shipments would decline and inventory would rise because of problems such as product delays and "lackluster" launches.
RIM's stock dropped 11 percent on March 25 after the company issued a lower-than-expected forecast for its fiscal first quarter. And On April 28 the stock dropped 14 percent when RIM slashed that quarterly forecast, saying it had been selling fewer and cheaper smartphones than it anticipated. Between Dec. 16 and April 29, the stock fell 17.8 percent overall. |
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Court: Sex-offender list is not cruel punishment
Breaking Legal News |
2011/05/29 13:06
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The Michigan appeals court has overturned a Washtenaw County judge and said a young man who committed sexual misconduct at school must be on the state's sex-offender list.
Judge Darlene O'Brien said registration in the case was cruel punishment that violated the Michigan Constitution, but the appeals court disagreed.
A man identified in court papers as T.D. was 15 in 2006 when he was accused of putting a chokehold on a girl and exposing her breast while another boy tugged on her belt. T.D. was placed in a youth home and completed therapy.
AdvertisementHe was required to register when he turned 18. The appeals court says it's not punishment but a way to inform the public even if the risk of another offense is low. |
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Stay away from energy drinks, doctors say
Business |
2011/05/28 13:10
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In a new report, a large group of American doctors urge kids and teens to avoid energy drinks and only consume sports drinks in limited amount.
The recommendations come in the wake of a national debate over energy drinks, which experts fear may have side effects.
"Children never need energy drinks," said Dr. Holly Benjamin, of the American Academy of Pediatrics, who worked on the new report. "They contain caffeine and other stimulant substances that aren't nutritional, so you don't need them."
And kids might be more vulnerable to the contents of energy drinks than grownups.
"If you drink them on a regular basis, it stresses the body," Benjamin told Reuters Health. "You don't really want to stress the body of a person that's growing."
For the new recommendations, published in the journal Pediatrics, researchers went through earlier studies and reports on both energy drinks and sports drinks, which don't contain any stimulants.
They note that energy drinks contain a jumble of ingredients -- including vitamins and herbal extracts -- with possible side effects that aren't always well understood.
While there aren't many documented cases of harm directly linked to the beverages, stimulants can disturb the heart's rhythm and may lead to seizures in very rare cases, Benjamin said.
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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