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Justice IG is journal's Lawyer of the Year
Legal Marketing |
2008/12/23 01:04
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The Justice Department's internal watchdog won the National Law Journal's top honor Monday for targeting Bush administration actions that cast doubt on the department's political independence. Inspector General Glenn A. Fine was named "Lawyer of the Year." The newspaper said Fine's investigations into White House political meddling and mismanagement by former Justice officials has helped restore the fierce independence that was once the department's trademark. "During a year in which the Justice Department's reputation suffered one black eye after another — largely because of politicization of a number of its functions — Fine and the team he has assembled in the past eight years emerged as beacons of nonpartisanship and independence," the newspaper said. Fine's office released a number of high-profile reports this year, at least four of which criticized how former Attorney General Alberto Gonzales ran the department. A close friend and adviser to President George W. Bush, Gonzales resigned in September 2007 after months of criticism that Republican politics drove hiring and firing decisions — including the ouster of nine U.S. attorneys the year before. Fine was nominated and confirmed as inspector general in the waning days of President Bill Clinton's administration. It's expected Fine will stay on after President-elect Barack Obama is sworn in. |
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Fort Dix plot jury seeks trial transcripts
Breaking Legal News |
2008/12/22 08:43
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Jurors considering the case of five men accused of plotting to attack soldiers at the Army's Fort Dix finished their fourth day of deliberations Saturday without reaching a verdict. The jury, which was being sequestered, agreed to resume deliberations at 8:30 Sunday morning — an hour earlier than they have been starting. U.S. District Judge Robert Kugler said the jury gave him a note Saturday saying that it was making progress and getting along. Earlier in the day, the jury asked for transcripts of testimony for the first time since Wednesday, the first day of deliberations, when they also sought transcripts of some testimony. The jury appeared to be focusing on the time when suspect Serdar Tatar told a police officer and later an FBI anti-terrorism task force member that a man had asked him for a map of Fort Dix. The man in question was Mahmoud Omar, an FBI informant. Prosecutors have said Tatar was trying to smoke out an informant, while his defense lawyer said he was concerned about a possible attack. The five foreign-born Muslims on trial face charges including conspiracy to kill military personnel and attempted murder. Government prosecutors claimed the men — all of whom lived for years in the Philadelphia suburb of Cherry Hill — were armed and preparing to attack the base in spring 2007. Defense lawyers said the men were manipulated by a government informant and weren't planning anything. |
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Ponzi scam artists share charm, respectability
Legal Spotlight |
2008/12/22 08:40
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They're smart and charming. They have an aura of success about them and exude respectability. Above all, they instill confidence. Which is, after all, why they are called con men. Bernard Madoff, the Wall Street trader accused of running the biggest Ponzi scheme in history — $50 billion — dealt in more astounding numbers than others but shares many of the basic qualities of Ponzi swindlers through history, according to law enforcement authorities and others who have studied such scams. "They seem trustworthy because of their charm, their command of finance and the unshakable confidence that they portray," said Jacob Frenkel, a former Securities and Exchange Commission enforcement lawyer. "The Bernie Madoffs of the world are the people you want to sit next to on an airplane." Much like the original Ponzi schemer, Charles Ponzi. He was an Italian immigrant to Boston who worked as a waiter, bank teller and nurse before he talked investors into sinking their money into a complex — and, it turned out, bogus — scheme involving postal currency. His short-lived swindle in 1919-20 cheated thousands of people out of $10 million but was so wildly lucrative for some early investors that he was hailed as a hero in the Italian community. He was convicted of mail fraud and sent to prison before being deported in 1934. A Ponzi scheme, or pyramid scheme, is a scam in which people are persuaded to invest in a fraudulent operation that promises unusually high returns. The early investors are paid their returns out of money put in by later investors. "It used to be called `robbing Peter to pay Paul,'" said Mitchell Zuckoff, a Boston University journalism professor who wrote a biography of Ponzi in 2005. Ponzi's scheme became one of the most famous con games of his time, and his name has been attached to similar frauds ever since. People who run Ponzis generally fall into two categories: hucksters like Ponzi who plan to cheat investors and get out quickly, often fleeing the country, and people who start a legitimate investment venture but lose money, then try desperately to cover it up and dig themselves into a deeper and deeper hole. Ultimately, it all comes crashing down. Some have speculated that Madoff — once a highly respected figure on Wall Street and a former Nasdaq chairman — falls into the latter category. Bookish and bespectacled with a wise smile, Madoff had multiple homes, fancy cars and memberships at exclusive country clubs. He gave millions to charity from his own fortune. |
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Lehman broker charged in insider trading case
Business |
2008/12/19 08:46
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A former Lehman Brothers broker who gleaned tips about pending mergers from his wife, a partner at a high-powered public relations firm, has been charged in a wide-ranging insider trading scheme that earned $4.8 million in profits for several people including a former Playboy model and two lawyers, authorities said. Federal prosecutors in Manhattan and the Securities and Exchange Commission brought the case Thursday against Matthew C. Devlin, who authorities said enabled clients and friends to make millions of dollars while he was rewarded with gifts including cash, a Cartier watch, a widescreen television and tuition at a Porsche driving school. "By providing inside information, Devlin curried favor with his friends and business associates and received in return cash, luxury items and other benefits," the SEC said in court papers. The SEC said those who received tips so treasured the information Devlin took from his wife that they began referring to him and his wife as the "golden goose." Devlin, 35, of Manhattan, also referred to his wife as the "golden goose," the SEC said. A second ex-Lehman Brothers broker, Frederick Bowers, 40, of Manhattan, was charged in a criminal complaint with conspiracy. Marc Agnifilo, a lawyer for Bowers, said his client had "a highly minimal role in the alleged insider trading and we're going to fight the case in court and put the government to its proof." He said Bowers had never been in trouble before. The SEC said Devlin took secrets from March 2004 through last July about more than a dozen pending mergers and acquisitions from his wife, Nina, a partner at Brunswick Group LLC, an international public relations firm. Attorney Jim Benjamin, who represents Nina Devlin, said her husband obtained the information without her knowledge by being close to her and monitoring her travel schedule. In a statement, Brunswick Group called the insider trading scheme a "violation of trust between husband and wife." It said there was no indication Matthew Devlin accessed Brunswick's confidential systems. "We believe she was unaware of her husband's activities and is devastated by these events," the company said, noting that Nina Devlin has not been charged "or implicated in any way." Brunswick is an international firm that employs more than 400 people, including more than 75 partners, as it advises major companies about financial and corporate communications and opinion research. It has 15 offices in 11 countries. |
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Madoff scandal could lead to tax losses nationwide
Business |
2008/12/19 08:45
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Even Uncle Sam may get burned by Bernard Madoff. Investors who lost their fortunes in Madoff's alleged Ponzi scheme will end up paying far less in taxes and may even be eligible for refunds, according to accounting experts. By some estimates, the Internal Revenue Service could be out as much as $17 billion in lost tax revenue. "This is one more thing federal, state and local officials will have to deal with," said John Berrie, a tax partner at the law firm Bryan Cave in New York City. "It's another heavy box on their back." In addition, investors may be counting on a federally mandated insurance fund to bail them out, but that program lacks the money to pay for all the claims that are likely to come. The timing couldn't be worse. Unemployment has surged, meaning fewer workers are paying payroll taxes. And housing prices have dropped, reducing property taxes. The recession so far has cost the federal government $200 billion in tax revenues for the 12 months that ended in November, according to estimates by Moody's Economy.com. The Madoff case, which reportedly involves $50 billion, adds another layer to the fiscal crisis gripping the nation. In New York, for instance, where thousands of workers have lost jobs on Wall Street and big-name investment firms have tallied massive losses, State Comptroller Thomas P. DiNapoli has estimated tax revenues will be down at least $3.5 billion by March 2010. In wealthy enclaves nationwide, Madoff's investors are desperately seeking ways to get some of their money back. Some refunds might come from the Securities Investor Protection Corp., an industry-funded organization set up by the government to protect investors from fraud. Investors who qualify could get as much as $500,000 from the SIPC. But that will not replace the millions of dollars than many lost, and such payments, if they come, will not happen fast. SIPC officials this week said the books of Bernard L. Madoff Investment Securities LLC are in complete disarray. It could take six months or more to untangle them. In addition, there are concerns that SIPC does not have enough money to pay out claims. It currently has $1.6 billion to make payouts, though the agency can tap a $1 billion line of credit and a $1 billion injection from the Treasury Department to get more money. That's why some investors are considering the option of reporting "theft losses" under the IRS rules. Taxpayers who are defrauded by investment advisers or brokers can claim a deduction, as well as offset tax liabilities from the past. Under the rules, an investor who lost $20 million with Madoff and whose adjusted gross income was $10 million can claim a theft loss of about $19 million. To calculate the theft loss, investors must reduce the amount of the loss by 10 percent of their adjusted gross income plus $100, according to Robert Willens, an expert on tax and accounting issues for Wall Street clients. |
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Feds rights to baseball drug tests back in court
Law Center |
2008/12/19 08:45
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Federal appeals judges voiced skepticism Thursday that prosecutors had the right to seize urine samples of more than 100 major league players not originally involved in the BALCO drug investigation. In a case dealing with the government's search-and-seizure power in the digital age, an 11-member panel of the 9th U.S. Circuit Court of Appeals must decide whether prosecutors legally seized the names and urine samples of 104 players during a raid in April 2004. "There has to be limits when the government seizes vast amount of information on a computer," Major League Baseball Players Association lawyer Elliot Peters said. The federal agents who took the material from the Long Beach-based Comprehensive Drug Testing Inc. had a search warrant for the test results of just 10 players, but discovered on a computer spreadsheet the test results of additional players. The players' association went to court, and lower-court judges ruled the additional names were seized illegally. A three-judge panel of the 9th Circuit reversed those decisions twice in 2-1 votes, but the entire 9th Circuit set the reversal aside and decided to hear the case en banc. |
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Calif. Court: Would-be Good Samaritan can be sued
Legal Spotlight |
2008/12/19 08:44
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Proving that no good deed goes unpunished, the state's high court on Thursday said a would-be Good Samaritan accused of rendering her friend paraplegic by pulling her from a wrecked car "like a rag doll" can be sued. California's Supreme Court ruled that the state's Good Samaritan law only protects people from liability if the are administering emergency medical care, and that Lisa Torti's attempted rescue of her friend didn't qualify. Justice Carlos Moreno wrote for a unanimous court that a person is not obligated to come to someone's aid. "If, however, a person elects to come to someone's aid, he or she has a duty to exercise due care," he wrote. Torti had argued that she should still be protected from a lawsuit because she was giving "medical care" when she pulled her friend from a car wreck. Alexandra Van Horn was in the front passenger seat of a car that slammed into a light pole at 45 mph on Nov. 1, 2004, according to her negligence lawsuit. Torti was a passenger in a car that was following behind the vehicle and stopped after the crash. Torti said when she came across the wreck she feared the car was going to explode and pulled Van Horn out. Van Horn testified that Torti pulled her out of the wreckage "like a rag doll." Van Horn blamed her friend for her paralysis. Whether Torti is ultimately liable is still to be determined, but Van Horn's lawsuit can go forward, the Supreme Court ruled. Beverly Hills lawyer Robert Hutchinson, who represented Van Horn, said he's pleased with the ruling. Torti's attorney, Ronald Kent, of Los Angeles didn't immediately return a telephone call. |
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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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