A California man has been charged by a federal grand jury in Los Angeles with operating an Internet-based obscenity distribution business and related offenses, Assistant Attorney General Alice S. Fisher of the Justice Department’s Criminal Division and U.S. Attorney George Cardona of the Central District of California announced today.

The indictment returned yesterday charges Ira Isaacs, doing business as Stolen Car Films and LA Media, with four counts of using an interactive computer service to sell and distribute obscene films on DVD, two counts of using a common carrier to distribute obscene DVDs, and two counts of failing to label sexually explicit DVDs with the name and location of the custodian of records containing age and identification information for performers in sexually explicit films. The maximum penalty is five years in prison on each count.

The court will issue a summons directing Isaacs, who is believed to reside in the Hollywood Hills, to appear in United States District Court in Los Angeles for arraignment in August. The indictment also seeks the forfeiture of all obscene materials produced and transported by Isaacs and any proceeds derived from the sale of such materials.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The case is being prosecuted by Trial Attorney Kenneth Whitted of the Justice Department’s Obscenity Prosecution Task Force and Assistant U.S. Attorney Craig Missakian of the U.S. Attorney’s Office for the Central District of California. The Task Force was formed to focus on the prosecution of adult obscenity nationwide. The investigation was conducted by the FBI’s Adult Obscenity Squad, a national initiative of the FBI based in the Washington, D.C. Field Office, and agents from the FBI’s Los Angeles Field Office.

Fliers posted on trees in the burned area also urge residents to mount a lawsuit against the Tahoe Regional Planning Agency, which enforces environmental regulations in the Lake Tahoe Basin.

Some Tahoe residents have blamed the agency for the fire, saying the agency's regulations aimed at preserving the clarity of the lake made it difficult to clear pine needles, trim brush and cut trees around properties to create defensible space.

In the subdivision damaged in the Angora fire, an assessment found that 19 percent to 34 percent of the homes had created defensible space.

Larry Parker, the personal injury lawyer cited in the television ads, did not return a telephone call by the Associated Press to his Long Beach office Tuesday seeking comment.

The Reno Gazette-Journal reported that the firm sent the newspaper an e-mail Monday that said the firm "has represented over 100,000 injury victims during the past 30 years and recovered over $750,000,000 for its clients."

Tahoe Regional Planning Agency officials said they've seen the ads and the fliers but haven't received any notification of legal action. The agency says it relaxed tree-cutting policies in recent years and can't be blamed for the blaze.

"We've tried to convey clearly that most defensible-space work is possible under existing rules," said Julie Regan, agency spokeswoman.

"If you look at the work that's been done in Incline Village, it's been done under the same rules as the South Shore," she told the newspaper.

"It's unfortunate that some businesses and attorneys are trying to take advantage of this community by using scare tactics."

Agency regulations say: "Leave the 'duff' layer of pine needles in your yard -- do not rake them all up. The 'duff' layer is the dark area at the ground level where the pine needles are decomposing. This matter does not burn easily."

Other residents said they didn't want agency inspectors on their property because they fear they will be cited for violations of the agency's erosion-control measures.

That fear creates a "paralysis" among homeowners who want to make changes on their property, residents and fire experts said last month.

Agency officials say the regulations weren't responsible for the blaze but are open to changes.

"We have been open to amending policies and ordinances in an effort to better address fire safety at Lake Tahoe," John Singlaub, the agency's executive director, said. "Following the Angora fire, a robust community debate is in order to help prevent such a catastrophic event from occurring in the future."

"The saga of Global Money Management demonstrates once again that fraudsters can steal money using e-mails, letters and stock solicitations rather than guns," Halpern said. "We must be vigilant for this type of fraud, which causes so much harm to so many."

Two other people indicted in the case – GMM fund co-manager Marvin Irwin Friedman and bookkeeper Alice Mae Swiderski – previously pleaded guilty and are awaiting sentencing.

In his plea agreement, Levy admitted diverting up to $7 million in GMM investor money to entities he controlled for his own personal use. He also filed false tax returns for the years 2001, 2002 and 2003 that resulted in a tax loss to the government of about $2.3 million, according to court documents.

Beginning in at least 1997, Levy and Friedman solicited investors through word of mouth, referrals from family members and, later, by soliciting institutional investors through referrals from investment banking firms, according to court documents.

Levy and Friedman touted the successful performance of the GMM hedge fund, claiming it was making substantial returns that averaged 25 percent annually. The partners also claimed not to charge any fees for managing the fund but instead to receive a share of profits generated by the GMM fund.

Prosecutors alleged the hedge fund was little more than a Ponzi scheme, in which the two men used new investor funds to pay off longer-term investors in an attempt to induce those individuals to invest more in the fund. The partners also diverted funds to pay their personal expenses and to benefit other corporate entities they controlled.

Global Money Management collapsed in March 2004, shortly after the Securities and Exchange Commission sued GMM, its general partner LF Global Investments and controlling director Friedman for securities fraud.

At the urging of the SEC, a judge froze the partnership's assets and turned GMM over to court-appointed receiver Charles La Bella. At the time, La Bella found less than $50,000 in assets in the partnership, which once purported to control $116 million on behalf of about 200 investors.

In earlier court documents, prosecutors said La Bella traced more than $18 million in investor funds to accounts controlled by Levy, including at least one account in Switzerland.

Halpern said the government now believes it has recovered any money that wasn't "dissipated" by partners Levy and Friedman.

Ronald Krajewski, acting assistant special agent in charge for the San Diego office of the Internal Revenue Service, said the agency, which investigated the case with the Department of Justice, will "aggressively pursue" individuals who take financial advantage of clients and evade their income taxes.

"Investment professionals who have betrayed their clients' trust and placed their own personal monetary gain ahead of their clients' financial well-being will be prosecuted," Krajewski said.

The court found that the agency, the Federal Motor Carrier Safety Administration, a unit of the Department of Transportation, had ignored the results of a database it commissioned to catalog more than 50,000 truck accidents from 1991 to 2002. Using the data, the study extrapolated that the risk of fatigue-related accidents would be substantially higher in the extra hours of service allowed by the new rules.

“F.M.C.S.A. failed to provide an adequate explanation for its decision to adopt the 11-hour daily driving limit,” the court said.

The new rules had been adopted after heavy lobbying by politically connected leaders of the trucking industry. The changes were part of the broader strategy by the Bush administration to reduce regulations on businesses.

Safety experts and insurance analysts challenged the changes. They said longer driving hours have contributed to the high number of truck accidents. About 100 people die each week in truck-related accidents, making trucking America’s most treacherous industry as measured by overall deaths and injuries.

Supporters of the loosened standards say they have made it faster and cheaper to move goods across the country. They say the changes promote safety because shorter hours would force the industry to put more drivers with little experience behind the wheel. And they note that the fatality rate, or the number of deaths per miles traveled, has continued a long decline.

Still, the fatality rate for truck-related accidents remains nearly double that involving only cars. And the Bush administration has repeatedly missed its own targets for reducing the number of fatalities from truck accidents.

The decision today came in a case filed by Public Citizen, a consumer advocacy group. It was the third time in three years that the courts have been critical of the motor carrier agency.

A different appeals panel criticized the agency in December 2005 for failing to issue adequate rules for the training of drivers, saying the agency had ignored its own studies on the need for more comprehensive training.

And in 2004, a third panel of the appeals court struck down virtually identical new hours of service rules as the ones at issue in Tuesday’s decision, saying that they had been “arbitrary and capricious.”

After Congress, at the urging of the Bush administration and the trucking industry, intervened to block the enforcement of the 2004 court order, the motor carrier agency issued the 2005 rules. At the time, the agency said it had addressed the concerns raised by the appeals court’s 2004 decision.

In a regulatory impact analysis accompanying the 2005 changes, the agency concluded that the economic costs to the industry of tightening the hours of service rules, as consumer groups had proposed, outweighed the safety benefits.

But the court said today that analysis was flawed. The opinion was written by Judge Merrick B. Garland and signed by Chief Judge Douglas H. Ginsburg and Judge Karen Lecraft Henderson.

Safety groups hailed Tuesday’s ruling and said the court had confirmed their view that the agency had failed to adequately justify relaxing the rules.

“The court is saying once again, no,” said Jacqueline S. Gillan, vice president of Advocates for Highway and Auto Safety, an alliance of consumer, health and insurance organizations. “For three and a half years this agency has tried every which way to defend a rule that would result in longer consecutive driver hours and longer total work hours. This has a dramatic dangerous impact on the lives of truck drivers and on the lives of everyone sharing the roads with trucks. And once again the court has said, ‘No, you cannot go ahead with a rule when it violates the law and you clearly have not justified it.’ ”

The agency would not say whether it would appeal the decision or seek a stay of the court’s order, which is set to go into effect in September.

“We are analyzing the decision issued today to understand the court’s findings as well as determine the agency’s next steps to prevent driver fatigue, ensure safe and efficient motor carrier operations and save lives,” said a statement issued by the agency.

The American Trucking Associations, which defended the changes to the rules in the proceeding, said they would ask the court to stay its ruling to give the agency time to provide a better justification of the changes.

A skeptical Alameda County judge ordered garbage hauler Waste Management on Tuesday to return to court next week to prove it is abiding by his order to collect all the trash in Oakland or face big fines for scores of missed pickups.

Superior Court Judge Richard Keller, at a hearing in his Fremont courtroom, said Oakland officials provided evidence that as many as 300 customers a day have not been receiving garbage service despite his order last week that the company truck away all the city's trash.

"That's more than ... just a matter of a couple of missed pickups," Keller said to Waste Management lawyers who told him the company is covering all of its routes. "All I'm saying is there's a certain amount of common sense that comes into play here in all this, and then there's gilding the lily."

Keller scheduled a hearing for Aug. 3 to determine whether the company should be held in contempt of his July 19 order -- which could subject the firm to fines of $2,500 per day for each of the hundreds of pickups the city says have been missed since then.

Meanwhile, representatives from Waste Management and the Teamsters union, along with Oakland Mayor Ron Dellums and a federal mediator, spent 10 hours Tuesday trying to work out a deal and planned to resume negotiations at 11 a.m. today in Oakland. A contract agreement would end the company's lockout of nearly 500 union garbage haulers that began July 2.

Dellums said the two sides made progress in their talks Tuesday.

"We have reached agreement on several of the outstanding issues,'' he said Tuesday night, declining to provide details. "I'm actually feeling very good because there was substantial progress. I believe the remaining issues can be resolved -- that's not to say they're not difficult issues."

Since July 19, city officials said they have received 3,000 complaints about spotty trash, recycling and yard waste pickups, while Waste Management officials have said they resumed regular weekly pickups in Oakland and other East Bay areas affected by the lockout.

"Each day it goes on, it becomes more and more frustrating," said Dellums, who described the negotiations as tedious and difficult. Waste Management has hired hundreds of temporary workers to pick up trash in Oakland and other East Bay communities and has added extra drivers and trucks to East Bay routes since Keller's order last week, Waste Management attorney John Lynn Smith said at Tuesday's hearing.

Smith said the company has 117 drivers on routes in Oakland, a number equal to the number of Teamster drivers in the city before the lockout, which came three days after the union's contract with the company expired.

"We'll continue to move forward to make sure people get service," Waste Management spokeswoman Monica Devincenzi said after the hearing, adding that on Saturday temporary drivers will go back over routes to gather any missed pickups from the week. "We truly apologize for any inconvenience we've caused our customers. We're trying our best to get it done."

But Deputy Oakland City Attorney Kandis Westmore said the city has received 200 to 300 complaints about missed pickups each day since the judge's order -- evidence, she said, that the company is not abiding by the order.

The city will have to prove in court that Waste Management has willfully failed to pick up garbage, Keller said. The city's efforts could be undermined, he said, by company claims that Teamster picketers at the firm's office in East Oakland have delayed replacement drivers on their routes by up to three hours.

Keller acknowledged that the potential fines, while substantial, might not motivate the multimillion-dollar corporation. "It's like swatting a gnat off the back of an elephant," he said.

City Attorney John Russo has said the city could hire another hauler to pick up trash in Oakland, but a spokeswoman for City Administrator Deborah Edgerly said Tuesday that city officials will continue efforts to compel Waste Management to comply with the terms of its franchise agreement.

"The performance standards are clearly spelled out -- pick up the trash," Karen Boyd said.

The company's contract with Teamsters Local 70 expired June 30, and Waste Management locked out its drivers in what company officials described as a pre-emptive move against a rumored Teamsters strike.

Union officials said their members did not intend to strike and planned to work while union and company officials negotiated a new contract.

Oakland, Emeryville, Albany, Hayward, Newark and part of San Leandro, along with unincorporated areas of Alameda County, including Castro Valley and San Lorenzo, are affected by the lockout.

Mr. James is accused of charging more than $58,000 in personal expenses on city-issued credit cards during his two decades as mayor and of selling city land at below market rates to Ms. Riley, who the authorities said then resold the property at an enormous profit.

Judith Germano, an assistant United States attorney, told Judge Martini that Mr. Ashley represented someone referred to in the criminal complaint as “Individual 1.” The person, who is not named in the indictment but who is “close to both defendants James and Riley,” lent $10,000 to Ms. Riley to help her pay for several properties in Newark and later received checks from Ms. Riley, according to prosecutors.

Ms. Germano said the other person Mr. Ashley represented was “an attorney in a number of real estate transactions” that are part of the case. In response, Mr. Ashley said, “I don’t see that there’s a conflict.” The judge told Ms. Germano to submit a brief with her concerns.

During the hourlong court appearance, Mr. James, 71, wearing a dark blue suit, smiled and seemed relaxed, limiting himself before and after the hearing to a single, repeated comment to reporters: “God is good all the time.” He and Ms. Riley, 38, who also pleaded not guilty, waived their right to a speedy trial.

Ms. Riley, whose relatives sat in the small, packed gallery, looked more anxious than Mr. James. She wore a black suit, flipped through legal papers, and did not smile.

Prosecutors said the evidence against Mr. James and Ms. Riley was largely contained in 40 banker’s boxes, each holding roughly 200 documents. Perry Primavera, a special assistant United States attorney, said that the prosecution would call about 60 witnesses, and that the trial would last about 12 weeks. The trial is tentatively set to begin in early February.

Mr. Ashley, a well-known criminal defense lawyer here, once represented Mr. James’s chief of staff, Jackie R. Mattison, who was found guilty in 1997 of taking bribes. After Monday’s court hearing, Mr. Ashley said of the prosecutors: “I didn’t know they were going to try to have me removed. I anticipated it could be an issue. They were never too happy with my representation.”

In court, Ms. Germano said that Mr. Ashley himself could be called as a witness in the case, to give evidence about a personal trip Mr. James and his companions made to Martha’s Vineyard in 2003, which prosecutors said cost the city of Newark more than $3,500.