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Hispanic Law Firm Espinosa & Espinosa Gets Boost
Law Firm News | 2007/05/09 10:01

The Morristown law firm McElroy Deutsch Mulvaney & Carpenter has acquired a 49 percent stake in the Hispanic-owned law firm Espinosa & Espinosa, in hopes of fostering greater diversity in New Jersey's legal community.

McElroy Deutsch, the seventh-largest law firm in the state by gross revenue, bought the ownership interest in the small, Weehawken-based firm last month for an undisclosed amount.

McElroy Deutsch, which grossed $76 million in revenue last year, according to the New Jersey Law Journal, will take a portion of Espinosa & Espinosa's profits and has agreed to upgrade the smaller firm's computer system, provide training for its staff and help in recruiting, said Edward B. Deutsch, managing partner of McElroy Deutsch, which employs 230 lawyers. Also, Espinosa & Espinosa can call upon the larger firm's lawyers to help on larger cases. Espinosa & Espinosa specializes in commercial transactions and commercial litigation.

"If substantial litigation comes in that needs 10 lawyers and they can provide five, we can provide the other five," Deutsch said. McElroy Deutsch has offices in Ridgewood and Newark, as well as Philadelphia, Denver and New York City.

Some major law firms, including Day Pitney in Florham Park, have formed loose strategic alliances with small, minority--owned firms to show their support for diversity.

Deutsch said he believes his firm is the first in New Jersey to take an equity stake in a minority-owned firm.

As Espinosa & Espinosa increases its staff in the coming years, "our participation will wane," Deutsch said.

Espinosa & Espinosa has served many small and medium-sized Hispanic--owned business in northern New Jersey since principal Juan Espinosa's Cuban emigre father launched the firm in 1975.

But like most minority-owned firms, Espinosa, with 11 attorneys, is too small on its own to be in the running for big contracts with Fortune 500 companies.

"You have to be big to get big cases," Espinosa said.

Nonetheless, opportunities for minority-owned firms to land big contracts have been on the rise since a document titled "Call to Action: Diversity in the Legal Profession" was circulated in 2004 by Rick Palmore, general counsel for Sara Lee Corp.

The document calls upon U.S. corporate legal departments to boost minority representation on their staffs and to use diversity as a criteria when hiring outside law firms.

More than 100 corporations have signed on.



Racy Law Firm Billboard Stripped Down
Law Firm News | 2007/05/09 08:40

A racy billboard proclaiming "Life's short. Get a divorce" caused enough of an uproar, city workers stripped it from its downtown perch after a week.

It wasn't so much about the partially clothed man and woman on the law firm's ad. It was the phrase that lawyers Corri Fetman and Kelly Garland chose that drew scores of complaints from neighbors and from other attorneys who said it reflected poorly on their profession.

A city alderman who lives nearby found a technical reason to jettison the sign.

"I called the building inspector and told him to do his job and he did," said Alderman Burton Natarus. "It has nothing to do with content or anything else. They did not have a permit and they were ordered to take it down."

Fetman and Garland say they're upset the sign was removed.

"They ripped our billboard down without due process," Fetman said. "We own that art. I feel violated."

Despite its brief run, the sign apparently was good for business. Since it went up last week, the two women said calls to their law firm have gone up dramatically.



China says US religious freedom report skewed
International | 2007/05/09 07:07

Chinese Foreign Ministry spokeswoman Jiang Yu said Tuesday that a report from the US Commission on International Religious Freedom that accused China of imprisoning and torturing people based on their religion was ignorant and prejudiced. In a statement posted on the Foreign Ministry's website, Jiang said that the report was distorted in its attack on Chinese policy, and maintained that China protects its citizens' freedom of religion.

Last week, the Commission released its annual report on worldwide religious freedom. The report stated that "All religious groups in China face some restrictions, monitoring, and surveillance, however, and religious freedom conditions deteriorated for communities not affiliated with one of the seven government-approved religious organizations." Also last week, Chinese Human Rights Defenders criticized the Chinese government for continuing to persecute and intimidate human rights defenders such as lawyers, academics and journalists in a report issued on the anniversary of the 1919 May Fourth Movement.



Health Lawyer Yood Joins Fulbright & Jaworski
Legal Careers News | 2007/05/09 06:13



Former Paul, Hastings, Janofsky & Walker Partner Kenneth Yood has joined the Los Angeles office of Fulbright & Jaworski as a partner in its health law practice.

“It’s an honor to become a part of Fulbright’s high-caliber national health care practice,” Yood said in a release.

Noting he was “impressed” with Fulbright’s long history in the health care industry, the lawyer added he was “excited” to bring his experience to the firm’s “expansive” national platform.

Peter Mason, partner-in-charge of the 73-lawyer Los Angeles office, told the MetNews Yood was a “terrific addition” to Fulbright’s prominent and expanding health law practice.

With his background in counseling and regulatory matters, Yood will enhance the work of the firm, Mason said.

Mark Kadzielski, partner in charge of Fulbright’s Los Angeles health law practice and head of its health law practice in California, echoed the thought in a statement:

“He is an impressive health care lawyer, who will help our team provide the very best counsel and service to our clients.”

Yood, 43, specializes in advising clients on the establishment and operation of health care compliance programs addressing matters that include Medicare and Medicaid reimbursement and certification, state licensing and the state and federal false claims acts.

With experience giving counsel on disclosure and reporting obligations and strategies, Yood has helped clients conduct both external and internal investigations of health care facilities.

The lawyer’s past representation also encompasses health care transactions, medical malpractice, professional liability, torts and commercial litigation.

Yood was admitted to the State Bar of California in 1991 and is also a member of the New  York and Massachusetts bars.

In addition to a degree from the University of New York at Buffalo School of Law, Yood holds a masters’ degree in public health from Harvard University. His undergraduate degree is from Haverford College.

His bar activities include membership in the American Health Lawyers Association.



Ex-treasurer pleads guilty in Nigerian investment scam
Court Watch | 2007/05/09 05:08

Even his attorney finds it baffling that former Alcona County treasurer Thomas Katona would have dumped as much as $1.2 million in public funds into fraudulent Nigerian investments. "It's the mystery of the human being, human frailty," defense lawyer Dan White said Tuesday after his client pleaded guilty in circuit court to eight counts of embezzlement, two counts of forgery and one of attempted embezzlement.

Katona, 56, was charged in January with siphoning money from an investment pool belonging to the rural Lake Huron county where he was treasurer - an elected post - from 1993 until his dismissal last year.

State police said he authorized wire transfers totaling $186,500 last summer to overseas accounts linked to the well-known Nigerian scam. They suspect he lost more than $1.2 million in county funds altogether - plus $72,500 of his own money, despite a warning from his bank that he might be getting swindled.

"I'm sure if you were to ask Mr. Katona how did this happen, he'd just shake his head and say, 'I don't know how I let it happen, but I did,"' White said in a telephone interview.

Variations of the scheme have been around for years. They begin with unsolicited letters - or, increasingly, e-mails - seeking help in transferring millions of dollars from Africa to overseas accounts.

The recipients are typically offered a generous share of the money if they pay what they are told are upfront costs such as taxes, fees and bribes. Those who play along can lose large sums before realizing they've been fleeced.

Katona entered his pleas during a routine hearing ahead of a trial that was to begin later this month.

The Michigan attorney general's office, which is prosecuting the case, offered no plea bargain. White said Katona pleaded guilty to all charges to avoid wasting the court's time and money "proving what is very apparent."

Matt Frendewey, spokesman for Attorney General Mike Cox, said Katona's decision was "a testament of the strength of the case the state had against him."

Sentencing was scheduled for June 12. A count of forgery is punishable by up to 14 years in prison, while the maximum is 10 years for embezzlement and five years for attempted embezzlement.

"If he gets a long enough sentence, I think the county can start healing," said Kevin Boyat, chairman of the Alcona board of commissioners. "There's still going to be people mad for a long time."

Katona pleaded guilty to two felonies in 1998 after falsifying documents for private accounting clients. Under his plea bargain, the charges were dismissed after he stayed out of trouble for a year.

Voters re-elected him in 2000 and 2004.

Boyat said he hoped Katona would provide a detailed accounting of where the money went. The attorney general's office will seek restitution, Frendewey said.

It won't be clear how the thefts will affect Alcona finances until the state treasurer's office finishes auditing the county's books, Boyat said.

"It doesn't look real good," he said, adding that spending cuts might be needed.



Man faces court over veteran's beheading
Court Watch | 2007/05/09 04:12

A 41-year-old mental health patient has faced a northern New South Wales court charged with the decapitation murder of 82-year-old Armidale war veteran Mark Hutchinson. Mr Hutchinson's body was discovered in the backyard of his Markham Street home in Armidale about 2pm on January 13. Matthew James Woodroffe-Hill, a resident of Tamworth's Banksia Mental Health Unit, appeared in Tamworth Local Court today charged with the killing.

A slender man of medium height with short brown hair, Mr Woodroffe-Hill had his head bowed and remained expressionless throughout the hearing.

Described by homicide detectives as a resident of Tenterfield, police told the court he had been arrested at the Banksia unit about 10.30am (AEST) today after being questioned by detectives at Tamworth police station.

It is believed the arrest was carried out as a result of the work of Strike Force Penfold, a special task force set up within hours of the discovery of Mr Hutchinson's headless body.

Mr Woodroffe-Hill did not lodge a bail application.

Police applied to the court for forensic procedures to be carried out, asking permission to conduct a buccal swab and remove a hair sample to test his DNA.

Mr Woodroffe-Hill's Armidale lawyer David Clifton did not oppose the requests and permission was granted on condition they were completed at Tamworth police station by 9pm today.

The court was told Mr Woodroffe-Hill had not been a voluntary patient at Banksia.

It is understood that although he was not being held under section eight of the Mental Health Act, he had not been scheduled for release from the unit until May 31.

The matter was adjourned to Armidale Local Court for mention on May 23, but police said it may be up to six weeks before the results of the forensic tests were known.

Mr Clifton said outside the court that "this (the arrest) is tragic for him (Woodroffe-Hill), tragic for his family and for the wider family of the victim".

Mr Hutchinson was a former artillery gunner who served in Papua New Guinea and Borneo.

He had lived alone in his Markham Street home since 1985 and was known to his local community as a quiet but friendly man respected for his work with the local RSL and legacy war widows.

The crime initially baffled police, with robbery being ruled out early on as a possible motive.



Grasso gets a break from the court
Legal Business | 2007/05/09 02:10
Richard Grasso, former chairman of the New York Stock Exchange, may get to keep his $190 million pay package after all, according to published reports.

In a 3-2 decision, the court yesterday dismissed four of the six charges brought by former New York Attorney General Eliot Spitzer.

Initially, Mr. Spitzer, now governor of New York, filed suit against Mr. Grasso in 2004, charging that the chairman’s $187.5 million pay package—which was accumulated between 1995 and 2003—violated state law.

Among the claims dismissed was the assertion that Mr. Grasso’s pay was not “commensurate with the services performed” and that it was “against public policy,” according to Bloomberg News.

As a result, lawyers representing the state will now have to prove that Mr. Grasso knew his pay was unreasonable.

Mr. Grasso has another case to contend with: Last year, a New York State Supreme Court ruling ordered him to return up to $100 million of his pay.

In that case, Mr. Spitzer argued that Mr. Grasso did not notify the NYSE’s board members of his rising pension benefits.

Mr. Grasso has already appealed that decision, saying that the board was aware of his pay, according to the New York Times.



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