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Va. scientist pleads guilty to China tech sales
Business | 2008/11/20 02:17
A Virginia scientist pleaded guilty Monday to selling rocket technology to China and bribing Chinese officials to secure a lucrative contract for his high-tech company.

Quan-Sheng Shu, 68, pleaded guilty to two counts of violating the federal Arms Control Act and one count of bribery at a hearing in U.S. District Court in Norfolk.

Shu is president of AMAC International Inc. of Newport News. He is a naturalized U.S. citizen who was born in Shanghai.

Prosecutors said Shu, an expert in cryogenics, sold technology to China for the development of hydrogen-propelled rockets.

The Chinese government is developing a space launch facility in the southern island province of Hainan that will house liquid-propelled launch vehicles designed to send space stations and satellites into orbit.

Shu also was charged with bribing Chinese officials to award a $4 million hydrogen liquefier contract to a French company acting as an AMAC intermediary.

Shu received more than $386,000 in commissions for securing the contract, authorities said. He already had agreed to forfeit that money. His company also has offices in Beijing.

The scientist and his wife refused to comment as they left the courtroom. As part of the plea agreement, prosecutors agreed not to prosecute his wife for the role she allegedly played in the scheme.

Shu faces up to 10 years on each arms count and five years for the bribery charge and fines of up to $2.5 million. Sentencing is scheduled for April 6.

Assistant U.S. Attorney Alan M. Salsbury said Shu's conviction was the result of an ongoing FBI investigation, but he declined further comment after the hearing.

Federal authorities in recent years have prosecuted more than a dozen cases of either traditional spying or economic espionage related to China. U.S. officials have warned in the last year of increasing espionage efforts by Beijing.



Ex-NJ state Sen. Bryant guilty of fraud, bribery
Court Watch | 2008/11/19 09:02
The former chairman of the state Senate's budget committee was convicted Tuesday of bribery and pension fraud, making him one of the most powerful New Jersey public officials found guilty of federal corruption in recent years.

Former state Sen. Wayne Bryant was found guilty on all 12 counts alleging he took a "low-show" job at a branch of the scandal-ridden University of Medicine and Dentistry of New Jersey as a bribe for directing state money to the institution.

Later, U.S. Attorney Christopher J. Christie said Bryant was more brazen than other elected officials on the take.

"He stole in plain sight," Christie said of the Democrat who was one of the state's most powerful politicians. "He thumbs his nose at the public."

The scam was uncovered by a federal monitor assigned to investigate UMDNJ after it was discovered that UMDNJ double-billed for services covered by Medicare.

Prosecutors said Bryant had almost no legitimate responsibilities at UMDNJ's School of Osteopathic Medicine in Stratford, which is in the southern New Jersey legislative district he represented.

Witnesses testified that he showed up on some Tuesday mornings and was seen reading the newspaper and talking on the phone in his office — but doing no other work.

But between 2003 and 2006 — when he worked for the school — officials said he boosted its funding from the state by at least $10.5 million.

Michael Gallagher, the dean who hired Bryant for the $35,000-a-year job at the school, was also convicted on one bribery charge and five mail fraud charges. He was acquitted on one mail fraud charge. His lawyers, Ralph Jacobs and Jeremy Frey, said they expected to appeal.

Bryant was also convicted of boosting his pension by taking another public-sector job at the Gloucester County Board of Social Services. Associates at his law firm did thousands of hours of work there, but he received pension credit for it, authorities said.

The five charges dealing with the pension were more complicated because there is no law against New Jersey elected officials holding other public-sector jobs or getting pension credit for work done by subordinates.



Ohio executes man for killing store owner in 1992
Breaking Legal News | 2008/11/19 09:02
Ohio on Wednesday executed a man for the 1992 stabbing death of a collectibles store owner in Toledo, the state's second execution in as many months.

Gregory Bryant-Bey, 53, died by lethal injection at 10:41 a.m. at the Southern Ohio Correctional Facility in Lucasville.

Bryant-Bey's execution proceeded after the U.S. Supreme Court on Tuesday denied his request for a 60-day reprieve. He had wanted more time to present additional information about his case to Gov. Ted Strickland, who denied clemency Tuesday.

Bryant-Bey was the second inmate put to death in Ohio since the end of an unofficial national moratorium on executions that began last year while the U.S. Supreme Court reviewed Kentucky's lethal injection procedure.

Bryant-Bey was convicted in the Aug. 9, 1992, robbery and killing of Dale Pinkelman, who owned a sports collectibles and coin shop.

He also faced a death penalty in the Nov. 2, 1992, killing of Peter Mihas, owner of The Board Room restaurant in downtown Toledo.

After police arrested Bryant-Bey for Mihas' death, similarities between the two crimes led to charges in Pinkelman's slaying.

A jury recommended life in prison for Bryant-Bey in the Mihas killing.



SEC charge will hit Cuban's 'every fan' rep
Securities | 2008/11/18 09:03
Since buying the Dallas Mavericks eight years ago, Mark Cuban has turned the team around and made himself one of the most visible owners in pro sports. Along the way, he's picked up his share of critics.

Some say he's a nuisance to the NBA, with more than $1 million in fines held up as evidence. Some Mavs fans say his constant baiting of officials merely leads to more calls against the team. Even his dancing skills have been panned, drawing an early round ousting from "Dancing With The Stars."

But now Cuban is facing a much more serious allegation: The government saying he's an inside trader.

Federal regulators filed a civil lawsuit Monday accusing Cuban of using confidential information to bail out of an investment and avoid about $750,000 in losses. Cuban denies doing anything wrong and insists his name will be cleared.

Even if he loses in court, Cuban's penalties would be strictly financial — perhaps close to $3 million. Martha Stewart settled the civil part of her insider-trading case, but ended up going to prison for criminal charges related to it. Cuban isn't facing criminal charges.

"It is a fascinating case," said Harold Degenhardt, who spent nine years prosecuting securities fraud as head of the Fort Worth office of the Securities & Exchange Commission and another 25 defending them in private practice. "This is a very difficult case for the SEC. I don't think they brought it lightly."

According to the SEC case, Cuban told his broker to sell all his shares of Mamma.com after the company's CEO confidentially told him of a stock offering that would dilute the value of all existing shares, including Cuban's. By selling before the information became public and the price fell, Cuban avoided losses exceeding $750,000, the SEC said in its lawsuit.

However, on Cuban's blog Tuesday was a statement from his attorneys that cites an interview with the CEO in which he says there was no agreement to keep information confidential.

Thus, Degenhardt said late Tuesday, this could turn into a he-said, she-said trial, and those are always risky.



Calif. high court asked to hear gay marriage cases
Breaking Legal News | 2008/11/18 09:01
The state attorney general and sponsors of the ballot initiative that banned same-sex marriage in California urged its Supreme Court to hear a series of lawsuits seeking to overturn the ban, saying the matter is too urgent to be unsettled.

"The petitions raise issues of statewide importance, implicating not only California's marriage laws but also the initiative process and the Constitution itself," Attorney General Jerry Brown argued in his filing.

"This court can provide certainty and finality in this matter," he said.

Proposition 8, which passed with 52 percent of the vote earlier this month, overturned the high court's May decision legalizing gay marriage in California. The measure inserts language into the constitution limiting marriage to one man and one woman.

Gay and civil rights groups, the city of San Francisco and other plaintiffs have asked the court to void the measure on the grounds that voters did not have the authority to make, what they say, is a fundamental constitutional change.

There is no deadline for the justices to decide whether they'll take the cases.

The litigation has made unwitting allies of supporters of the same-sex marriage ban and the attorney general, who voted against the proposition. Over the summer, anti-gay marriage groups sued Brown after his office changed the measure's wording to reflect that it would take away a right that same-sex couples then had.



Court issues injunction against United pilot union
Labor & Employment | 2008/11/18 09:00
United Airlines said on Tuesday that a federal judge has barred its pilot union and four pilots from activities that disrupt the airline's activities.

United had accused some pilots of abusing sick time and refusing to fly extra hours. Sick-outs in particular are not allowed under the Railway Labor Act, the federal law that governs airline labor relations.

United said the judge in Chicago found that the actions of the Air Line Pilots Association had violated the act, and issued a preliminary injunction on Monday against four pilots and the union. United said it would next seek a permanent injunction.

Over the summer United blamed the pilots for the cancellation of 329 flights between July 19 and July 27. The carrier said that cost it about $8 million in lost revenue and $3.9 million in operating profit. United filed the lawsuit on July 30.

A spokesman for the United branch of ALPA did not immediately return a phone message seeking comment.

"While there is always room for discussion and tough give-and-take about our business, deliberate actions that unfairly or unlawfully impact our customers and employees — and that keep us from achieving our full potential — will not go unchallenged," Chief Operating Officer John Tague said in an e-mail to United employees.



Protesters rally near Texas court in dragging case
Law Center | 2008/11/17 09:01
Protesters galvanized by a dragging death that has stirred memories of the notorious James Byrd case rallied twice outside an eastern Texas courthouse to speak out against a judicial system they consider racist.

About 60 people, led by a contingent from the New Black Panther Party and the Nation of Islam, met at the Lamar County Courthouse on Monday to bring attention to the death of Brandon McClelland. The groups later returned with about 200 protesters. Afterward, dozens of people chanting "No justice, no peace!" marched to a nearby church for a meeting.

Authorities say two white suspects purposely ran over McClelland, who is black, following an argument on the way home from a late-night beer run in September. McClelland's body was torn apart as it was dragged some 70 feet beneath a pickup truck near Paris, a city about 95 miles northeast of Dallas with a history of tense relations between blacks and whites.

The death came 10 years after James Byrd was killed in Jasper, another eastern Texas town. Byrd was chained to the back of a pickup by three white men and dragged for three miles.



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