The ruling upholds the felony guilty plea of Mark Jahnke, who videotaped his girlfriend while she was naked and while they were having sex. He argued in his appeal that because the woman agreed to be naked around him, she had no reasonable expectation of privacy.

The state Department of Justice argued that shared intimacy does not give a person the right to film another unknowingly.

Jahnke's attorney, Michael Herbert of Madison, argued that the court had found in a previous case that a reasonable expectation of privacy existed when a nude person reasonably believed he or she was "secluded from the presence of others."

Prosecutors argued the video voyeur law would make no sense under that interpretation. The appeals court agreed, saying the definition in the previous case was not intended to cover all circumstances.

Judge Charles Dykman, the dissenter in the 2-1 decision, said the 2001 law does not specifically prohibit what Jahnke did.

Attorney General J.B. Van Hollen praised the ruling.

"Wisconsin's citizens enjoy a reasonable expectation of privacy not to be secretly videotaped while in the nude, and Wisconsin's criminal law has been correctly interpreted to protect that expectation," he said.

Solamere Capital said Tuesday that Blunt will be a senior adviser at the Massachusetts firm, led by Tagg Romney. It cited his experience with Missouri's budget.

Blunt was an early supporter of Mitt Romney's failed Republican presidential bid. He announced in January 2008 that he would not seek a second term as governor. He leaves office Jan. 12.

His administration gained attention over accusations of violating an open records law. His office recently released e-mails to settle a lawsuit brought by media organizations.

A spokesman says Blunt will continue to live with his family in Springfield, Mo.

The SEC said Tuesday that Susan Markel, chief accountant in the agency's division of enforcement, is taking a job in the corporate investigations practice of AlixPartners LLP, a turnaround consulting firm.

Her departure comes as President-elect Barack Obama's SEC chairman-designate, Mary Schapiro, is likely to face tremendous pressure to bring sweeping changes to the agency, said James Cox, a Duke University law professor and securities law expert.

The SEC has come under fire for failing to detect signs that major Wall Street firms were in trouble. It also has been criticized for ignoring allegations brought to SEC staff about Wall Street money manager Bernard Madoff's businesses. Madoff has been accused of engaging in a massive fraud that may end up costing investors $50 billion.

With the SEC under intense scrutiny from the incoming administration and lawmakers a Capitol Hill, more high-level staff changes could be in the works, Cox said.

For current staffers, it is often better "to leave on your own accord than to face the awkwardness of being asked to leave," he said.

Markel has been at the SEC since 1994, working on the agency's inquiries into Xerox Corp., Cendant, WorldCom and Cardinal Health Inc.

Linda Chatman Thomsen, director of the SEC's Division of Enforcement, praised Markel saying in a statement that "her instincts are superb and her investigative abilities are unparalleled"

Obama has promised a tougher regulatory and enforcement approach after he takes office on Jan. 20.

"Instead of appointing people with disdain for regulation, I will ensure that our regulatory agencies are led by individuals who are ready and willing to enforce the law," Obama said earlier this month.

The trial of Muntadhar al-Zeidi was to begin Wednesday on charges of assaulting a foreign leader, which his defense team said carried a maximum sentence of 15 years. But court spokesman Abdul-Sattar Bayrkdar said that the trial was been postponed pending an appellate court ruling on what charges the journalist should face.

Bayrkdar said the defense team was seeking a lesser charge. Two of his lawyers said they want a reduced charge of insulting a foreign leader — which carries a maximum sentence of three years.

"There is a difference between assault and insult, al-Zeidi wanted to express his objection to the occupation. So the case is within context of an insult and not an intention to kill," his lawyer Diaa al-Saadi told Associated Press Television News.

If the appellate court decides to reduce the charges, then al-Saadi said al-Zeidi could be released on bail. It was unclear when the appellate court would issue its ruling.

Al-Zeidi threw his shoes at Bush during a Dec. 14 joint news conference with Prime Minister Nouri al-Maliki. The gesture of contempt for the U.S. invasion and occupation of Iraq made al-Zeidi a folk hero in Iraq and thousands of people have demonstrated for his release.

The company's stock, which is traded over-the-counter, closed at 6 cents Monday, well off the $5.61 it traded at a year ago and a sharp drop from the more than $20 it traded for just a few years ago.

Chesapeake, which makes paper cartons and plastic containers for the health care, beverage and food markets, has been cutting jobs and realigning operations in an effort to foster growth and reduce costs. The company struggled earlier this year to complete a $250 million credit line with a group led by GE Commercial Finance Ltd. and General Electric Capital Corp. to refinance prior debt.

The company's shares were delisted from the New York Stock Exchange in October. Chesapeake last month reported a loss for the nine months ended Sept. 28 of $277.1 million as the company booked hefty environmental cleanup and other charges and as sales slipped to $752.5 million due to lost business with British American Tobacco and less demand for drug and health care packaging. In its 10-Q filing with the Securities and Exchange Commission, Chesapeake listed total assets of $936.6 million as of Sept. 28 and $937.1 million in total liabilities.

Chesapeake filed for bankruptcy Monday in the Eastern District of Virginia in Richmond under Chapter 11, which allows a company to reorganize. Non-U.S. units are not included in the filing.

The Arkansas chapter of the American Civil Liberties Union filed the lawsuit on behalf of the families in Pulaski County Circuit Court seeking to overturn Act 1, which was approved by voters in last month's general election.

"Act 1 violates the state's legal duty to place the best interest of children above all else," said Marie-Bernarde Miller, a Little Rock attorney in the lawsuit.

The group filed the lawsuit on behalf of 29 adults and children from more than a dozen families, including a grandmother who lives with her same-sex partner of nine years and is the only relative able and willing to adopt her grandchild, who is now in Arkansas state care.

The plaintiffs also include Stephanie Huffman and Wendy Rickman, a lesbian couple raising two sons together who want to adopt a foster child from the state.

The most dramatic pullback in consumer spending in decades could transform the retail landscape, as thousands of stores and whole malls close down. And analysts expect prolonged woes in the industry as the dramatic changes in shopping behavior could linger for another two or three years amid worries about the deteriorating economy and rising layoffs.

"You are going to see a substantial retrenchment in the retail industry," said Rick Chesley, partner in the global bankruptcy and restructuring group at international law firm Paul Hastings. "The downturn has been catastrophic."

A number of stores couldn't even make it to Christmas. Circuit City Stores Inc. filed for bankruptcy protection last month. It plans to keep operating, but toy seller KB Toys, which filed for bankruptcy earlier this month, is liquidating its stores and will shut down.