The massive corruption scandal led to the investigation of 82 incidents involving 50 officers and reversal of more than 100 convictions tainted by police misconduct.

A jury in 2006 determined that the three men were each entitled to $5 million because they were wrongly arrested and charged with filing false police reports.

The three were implicated by former officer Rafael Perez, the central figure of the scandal in which officers were alleged to have beaten, robbed, framed and shot innocent people in the city's tough Rampart neighborhood. Dozens of officers were investigated, leading to some resignations and internal discipline, but only a small number of prosecutions.

Perez told investigators that the three men — Paul Harper, Edward Ortiz and Brian Liddy — had lied about finding a gun on a gang suspect during a 1996 arrest.

Harper and Ortiz are still with the department, but Liddy has left, according Officer Karen Smith, a LAPD spokeswoman.

The 9th Circuit U.S. Court of Appeals in its decision Monday noted that on three different occasions Perez gave investigators significantly divergent accounts of what allegedly happened during the arrest, including the inaccurate detail that a music sound system had to be dismantled at the arrest scene.

A state court jury did convict the three men in 2000 of conspiracy to obstruct justice in the framing of two reputed gang members. A Superior Court judge threw out the convictions a month later, citing faulty jury instructions.

Prosecutors decided not to pursue the case, and a judge dismissed the charges in 2004.

A sentencing hearing for Sidney Lowe II began Monday and is expected to end Tuesday in Guilford County Superior Court.

Defense lawyer Joe Cheshire said his client was "completely remorseful."

Lowe entered guilty pleas to six counts each of robbery with a dangerous weapon and kidnapping, possession of a weapon on educational property, possession with intent to sell and deliver marijuana and possession of ecstasy under a plea agreement.

The 23-year-old Lowe also entered a plea to a conspiracy to commit armed robbery charge from a shooting at the University of North Carolina at Greensboro. The plea means he doesn't admit guilt but says the state has enough evidence to convict him.

U.S. securities regulators need to be more aggressive in attacking manipulative rumor-mongering and short selling abuses, a prominent New York law firm said Monday.

In a memo to clients, Wachtell, Lipton, Rosen & Katz urged the Securities and Exchange Commission to conduct a 45-day study of the extent to which "abusive and manipulative short-selling and spreading of false rumors is taking place," and to issue a public report on its findings.

The law firm also called for the SEC to adopt rules as appropriate in response to its findings, and to bring enforcement actions against wrongdoers, coordinating efforts with criminal prosecutors where necessary.

Wachtell, Lipton's call to arms came one day after an unusual Sunday announcement from the SEC that it plans to begin immediate examinations into controls at brokerage firms, mutual funds, money management companies and hedge funds to prevent the deliberate spreading of false rumors to manipulate stock prices.

The SEC's examination into industry practices came after a rocky week of trading and concerns about the outlook for federal housing-finance giants Fannie Mae (FNM) and Freddie Mac (FRE) and for commercial and investment banks, including Lehman Brothers Inc. (LEH).

"While this is an important first step, the SEC needs to undertake additional bold measures to constrain abusive short-selling and rumor-mongering," according to the memo, signed by Wachtell, Lipton partners Edward Herlihy and Theodore Levine. The two recently urged the SEC to bring back restrictions on short sales when stock prices are declining, recommending a return to so-called "tick test" that forbade short sales when markets are ticking down.

SEC spokesman John Nester declined to comment.

Wachtell, Lipton is a leading advisor in corporate mergers, including the acquisition of Bear Stearns Cos. by JPMorgan Chase & Co. (JPM). Some former Bear executives have blamed the firm's collapse on market manipulation by short sellers and JPMorgan Chase Chief Executive Jamie Dimon recently said that the SEC should investigate whether Bear was brought down by a smear campaign.

Short sellers sell borrow shares in hopes of replacing them later at a lower price, profiting when the stock declines. While the practice is legal, critics say regulators have been ineffective in curbing abusive, manipulative short selling.

A three-judge panel of the 4th U.S. Circuit Court of Appeals said Monday that Steven Hatfill was a public figure and had to prove actual malice to win his libel lawsuit. The court said Hatfill failed to meet that burden.

Five people were killed and 17 sickened in the anthrax attacks. Then-Attorney General John Ashcroft publicly identified Hatfill as a "person of interest" in the investigation.

Columnist Nicholas Kristof criticized the FBI's investigation as lackadaisical and initially referred to Hatfill as "Mr. Z." Kristof identified Hatfill by name only after Hatfill held a news conference to denounce rumors.

Marine Cpl. John Wimunc was charged Monday with murder — as well as first-degree arson and conspiracy to commit arson — in the death of 2nd Lt. Holley Wimunc of Iowa.

Her body was found Sunday, three days after a suspicious fire at her Fayetteville apartment.

Authorities also charged Lance Cpl. Kyle Alden with first-degree arson, conspiracy to commit arson and accessory after the fact to first-degree murder. Both Marines were assigned to Camp Lejeune.

The Europa Press news agency said the prosecutors office at the court announced it was backing a case petition brought last month by Brussels-based rights organization Equipo Nizkor on behalf of victims' relatives.

The suspects are John Demjanjuk — an 88-year-old retired auto worker in Ohio — Anton Tittjung, Josias Kumpf and Johann Leprich.

Equipo Nizkor has said the U.S. has been trying for years to deport all four for lying about their Nazi pasts on their immigration papers, but that no country had been willing to take them.

The prosecutors' petition is a nonbinding recommendation. The court's judges will now decide whether to accept the case for study and consider filing charges. A decision could take months.