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Madoff trustee asks for firms, property and artwork
Breaking Legal News | 2009/03/04 08:51
A court-appointed trustee in the case against Bernard Madoff has asked a judge if he may take over ownership of the accused swindler's firm, an associated trading firm, property, artwork and corporate entertainment tickets.


Court documents seen on Tuesday said the trustee, New York lawyer Irving Picard, had made the request with the consent of other civil and criminal investigators as part of efforts to recover assets for Madoff's customers.

Madoff, a once-respected Wall Street trader and investment manager, was arrested and charged with fraud on December 11 after authorities said he confessed to running a $50 billion Ponzi scheme over many years. He is the only person charged in the purported scheme, in which early investors are paid with the money of new clients.

The document filed in U.S. District Court in Manhattan said Picard was seeking control of Bernard L. Madoff Investment Securities LLC (BLMIS) and Primex Holdings LLC "and any membership or ownership interest therein." Primex was a digital trading firm that operated out of Madoff's New York headquarters in what is known as the "Lipstick Building."

The trustee said he wanted Madoff to voluntarily hand over "all of his rights, title and interests" to the firms, property and other assets he listed.

The filing comes after a U.S. judge on Monday partially lifted a freeze on assets of Madoff and his wife Ruth Madoff so he can cooperate with Picard. On Monday, lawyers for Ruth Madoff asserted that her $7 million Manhattan apartment and $62 million in accounts were unrelated to the purported fraud.



Court to decide on convict's right to test DNA
Court Watch | 2009/03/04 08:50
The Supreme Court expressed skepticism Monday about giving a convict the broad constitutional right to test DNA evidence, which for 232 people has meant exoneration years after they were found guilty.


At issue is the case of William Osborne, who was convicted in a brutal attack on a prostitute in Alaska 16 years ago. He won a federal appeals court ruling granting him access to a blue condom that was used during the attack. Testing its contents would firmly establish his innocence or guilt, says Osborne, who has admitted his guilt in a bid for parole.

But several justices said something more should be required, including a sworn declaration of innocence that would hold out the prospect of additional punishment for lying under oath.

One condition, Justice David Souter said, is that an "individual claiming the right to test claims that he is actually innocent."

People who waived DNA testing at the time of their trial also might not be able to test it later, some justices suggested.

The Obama administration, backing Alaska prosecutors, urged the court to reject the ruling of the federal appeals court in San Francisco in favor of Osborne.

Deputy Solicitor General Neal Katyal said the decision by the 9th U.S. Circuit Court of Appeals was too broad and would erase the requirement in the federal DNA testing law that a person must assert his innocence under penalty of perjury before getting access to the evidence.

Osborne has never made that claim and in fact admitted his guilt as part of his parole proceedings, Katyal said.



NY appeals court: couple can't have son's sperm
Law Center | 2009/03/04 05:52
The parents of a 23-year-old killed by cancer are not entitled to use their dead son's preserved sperm so they can have a grandchild, an appeals court ruled Tuesday.


The New York state appeals panel issued a unanimous and unprecedented ruling in the case of Mark Speranza, 23, who left semen samples at the Repro Lab Inc. in July 1997 and signed a form directing that they be destroyed if he died. He wanted to be able to father a child if he survived his battle with cancer.

Following their son's death in January 1998, Mary and Antonio Speranza of Edison, N.J., told Repro's operator that they wanted a grandchild and wanted to save the sperm so a surrogate mother could be artificially inseminated.

The lab operator, Awilda Grillo, told the Speranzas their son deposited the specimens for his use only and the specimens had not been screened for donation to a member of the public, as required by state law.

The Speranzas paid Grillo storage fees and asked her to preserve the sperm specimens until a court could decide on custody.

State Supreme Court Justice Jane Solomon ruled that the law barred use of the sperm. She noted that the required screening, specifically a blood test of the donor, was now impossible since Mark Speranza was dead.



Court makes it harder to challenge forest rules
Environmental | 2009/03/04 05:51
The Supreme Court has made it harder to challenge federal regulations governing timber sales and other policies in national forests.


In a 5-4 decision Tuesday, the court says environmental groups cannot pursue a lawsuit against forest regulations that limit public input when environmental impact on a U.S. Forest Service project is expected to be small.

The case concerned a proposal to salvage timber from 238 acres in the Sequoia National Forest in California. A fire in the summer of 2002 burned 150,000 acres. Even though the Forest Service withdrew the proposal, the federal appeals court in San Francisco upheld a nationwide injunction against the regulations.

The government argued that a challenge to the regulations must be tied to a specific project and the court agreed in an opinion written by Justice Antonin Scalia.

The case is Summers v. Earth Island Institute, 07-463.



Gigantic gem is subject of LA court case
Breaking Legal News | 2009/03/04 03:51
An 840-pound emerald-encrusted rock will remain in the custody of the Los Angeles County Sheriff's Department while a judge decides which of a half-dozen claimants owns the boulder-sized gem.


The emerald is one of the largest ever found and a judge conceded Tuesday it will take awhile to sort out all of the competing interests. The lawyer for one of the purported owners suggested outside court the gem may be a curse for his client. And the man who first reported it stolen said he was giving up his claims because "I have been threatened."

Larry Biegler, who refused to elaborate on the threats, told Los Angeles County Superior Court Judge John A. Kronstadt he was bowing out of the case. But it was his call to sheriff's deputies reporting that the emerald had been stolen that led to a multi-state caper in which two deputies trucked the mammoth object from Las Vegas.

Another of the claimants, Todd Armstrong of Eagle, Idaho, said outside court that he moved the emerald to Las Vegas after a gem dealer gave it to him as collateral for a shipment of diamonds he paid for but never received. He was trying to sell it when the law arrived.

The parties told the judge that the huge object is worth about $400 million. Lawyers said that museums including the Smithsonian and the Getty have expressed interest in obtaining it for their collections. Its value is as an art object and it can't be broken down to make jewelry, they said.

The emerald was dug up in Brazil in 2001 and became known as the Bahia Emerald. Its first owner was a Brazilian gem trader who made the first sale of it. But after that, its route became muddled. At one point, it wound up in a warehouse in New Orleans that was flooded during Hurricane Katrina.



High court to decide when judges should step aside
Breaking Legal News | 2009/03/03 08:28
The Supreme Court is set to hear arguments in a sensitive dispute about judicial ethics.


The justices are expected to issue at least one ruling Tuesday morning, then consider a West Virginia case about when elected judges should step aside from cases that involve their campaign supporters.

At the heart of the dispute is $3 million that coal company executive Don Blankenship spent to help elect a state Supreme Court justice. Later, that justice — Brent Benjamin — sided with the coal company in a multimillion-dollar dispute with another mining firm.

The losing party, Harman Mining Corp., argues that Benjamin's refusal to step aside in the 3-2 decision violated the company's constitutional right to due process.



Court refuses to take case on coach's team prayer
Breaking Legal News | 2009/03/03 08:28
The Supreme Court has rejected an appeal from a high school football coach who wants to bow his head and kneel during prayers led by his players despite a school district policy prohibiting it.


In an order Monday, the justices ended Marcus Borden's fight against the East Brunswick, N.J., school district's policy that forbids him and other staff members from joining in student-led prayer. The federal appeals court in Philadelphia sided with the district.

The high court declined to weigh in on whether Borden's desire to bow his head silently and "take a knee" with his football players violates the Constitution's prohibition on government endorsement of religion. Borden says such gestures are secular.

The school district says Borden, the East Brunswick coach since 1983, had a long history of leading prayers before he was ordered to stop after complaints from some parents. The district says the issue is whether its policy is constitutional, not Borden's actions.

Messages left for Borden and lawyer Ronald Riccio were not immediately returned Monday.

"Coaches are not supposed to be promoting religion; that's up to students and parents and pastors," said Barry W. Lynn, executive director of Americans United for Separation of Church and State, which represented the school district.

The 3rd U.S. Circuit Court of Appeals in Philadelphia agreed that the school district policy is constitutional, but the judges differed on what exactly the coach should do if his team prays.

The Supreme Court ended school-sponsored prayer in 1962 when it said directing that a prayer be said at the beginning of each school day was a violation of the First Amendment. The justices reaffirmed the decision in 2000 by saying a Texas school district was giving the impression of prayer sponsorship by letting students use loudspeakers under the direction of a faculty member for prayers before sports events.



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