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Lawyer arrested for allegedly defrauding client
Law Center | 2007/05/16 02:36

A lawyer who is a former Washington County public defender was arrested Tuesday on a charge he stole $12,000 from a client, State Police said. Joseph H. Oswald, 52, of Main Street, Fort Edward was charged with a felony count of third-degree grand larceny for allegedly cashing a settlement check the client received in December and not forwarding the money to either the client or Washington County, which had placed a lien on the money to repay Medicaid expenses, police said.

State Police began investigating the case after receiving information from the Washington County attorney's office indicating that the settlement money may have been improperly used.

State Police Senior Investigator Thomas Aiken said the client had been hurt in a car crash, but had been on Medicaid. The county had placed a lien against the check, but never received the money despite the check being cashed in December.

"They were owed compensation (by the client) but they never got it," Aiken said. "The bulk of it (the check) was supposed to go to the county, with whatever was left over going to the client."

Washington County Attorney Roger Wickes was not available Wednesday morning.

The arrest is the latest legal problem for Oswald, who was Washington County public defender for 3.5 years until resigning in August 2005, days before he was arrested on a bad check charge. That charge was later dropped.

He was arrested last summer on a charge he burglarized a female acquaintance's home in Kingsbury, but said recently that the felony charge in that case was dropped. He also was ordered to spend 15 days in Washington County Jail last month for not paying $11,000 in child support.

Oswald was free on bail Wednesday but could not be reached for comment Wednesday. The phone number listed for his law office was disconnected as of Wednesday morning.



State suspends law license of Cincinnati lawyer
Legal Business | 2007/05/16 02:34

A disciplinary arm of the Ohio Supreme Court has temporarily suspended the law license of a Cincinnati attorney who was addicted to marijuana and cocaine.

Ken Lawson has handled many high-profile civil rights cases in Cincinnati.

He acknowledges that he was addicted to drugs for years and that it affected his job performance. Several clients have sued him, accusing him of mishandling their cases and failing to show up for court dates.

The Supreme Court's disciplinary counsel is reviewing a complaint filed by the Cincinnati Bar Association. The case could take months to complete.

The court could decide to revoke Lawson's license permanently.

Lawson says he's been clean since February First and is participating in a rehab program.



Former CIA Official Pleads Not Guilty
Breaking Legal News | 2007/05/16 01:40

A former top CIA official pleaded not guilty Monday to new charges that he pushed a proposed government contract worth at least $100 million for his best friend in return for lavish vacations, private jet flights and a lucrative job offer. The indictment, returned last week, replaced charges brought in February against Kyle "Dusty" Foggo, who resigned from the spy agency a year ago, and defense contractor Brent Wilkes.

The charges grew from the bribery scandal that landed former U.S. Rep. Randy "Duke" Cunningham in prison.

Foggo and Wilkes now face 30 wide-ranging counts of fraud, conspiracy and money laundering. Each faces more than 20 years in prison if convicted, prosecutors said.

Prosecutors claimed in their earlier 11-count indictment that in fall 2003, while he was working as a logistics officer at a CIA supply hub overseas, Foggo arranged a $1.7 million contract for one of Wilkes' companies to be a middleman in supplying bottled water to the agency.

The new indictment outlines a second scheme in which Foggo is suspected of providing Wilkes with "sensitive, internal information related to our national security," including classified information, to help him prepare bids for providing undercover flights for the CIA under the guise of a civil aviation company and armored vehicles for agency operations.

Foggo, who was the agency's executive director at the time, is also charged with encouraging his CIA colleagues to hire Wilkes without disclosing that the pair were childhood friends.

Prosecutors say that in return, Wilkes offered to hire Foggo after he retired from government service and treated his friend to extravagant meals and vacations, including a trip to Scotland during which they racked up a $44,000 hotel bill and took $4,000 helicopter rides to play golf.

Wilkes was charged in a separate indictment with conspiracy, bribery, money laundering and unlawful monetary transactions to Cunningham in return for government contracts.

A new indictment was returned in that case last week that included new charges against another defendant, New York mortgage banker John T. Michael, who was described as a co-conspirator in Cunningham's 2005 plea agreement. Michael now faces counts of money laundering and unlawful monetary transactions in connection with wire transfers allegedly used to pay off the mortgage on Cunningham's $2.5 million mansion.

Wilkes and Michael pleaded not guilty to the new charges. All three men remain free on bail.

U.S. District Judge Larry Burns set a Sept. 18 trial date for Wilkes and Michael, followed by a trial for Foggo and Wilkes starting Oct. 23. Burns denied a request by Foggo's attorneys that their client be tried separately in Virginia, where he lives.

Burns also heard arguments from defense attorneys on several key issues, including a request for an investigation into government leaks to news organizations including The Associated Press during the probe.

Wilkes' attorney, Mark Geragos, has said he believes the information was leaked to pressure Justice Department officials into approving criminal charges sought by prosecutors in San Diego before ousted U.S. Attorney Carol Lam resigned in February. The indictments were returned two days before her departure.

"It's clear - clear to me at least - that they were scrambling," Geragos said after Monday's hearing. "It sure looks to me as though something's going on in that office, and I don't know what it is."

Prosecutors have said that the timing had nothing to do with Lam's departure. Assistant U.S. Attorney Jason Forge told the judge the matter had been referred to another U.S. attorney's office as part of an internal Justice Department review.

Burns ordered that the results of the review be turned over to him and said he would require the government to disclose to defense attorneys the identities of any witnesses who had been identified as leakers.

The initial charges came 20 months after the FBI opened an investigation into Cunningham, who served on key House committees with oversight of government contracts. He pleaded guilty in November 2005 to taking $2.4 million in bribes from defense contractors and was sentenced to more than eight years in prison.

Foggo and Wilkes played high school football together growing up in Chula Vista, south of San Diego. They roomed together at San Diego State University, were best men at each other's weddings and named their sons after each other.

Foggo, the former No. 3 official at the CIA, resigned from the spy agency in May 2006 after his house in suburban Virginia and office at the CIA's Langley, Va., headquarters were raided by federal agents.



Thousands of sex offenders discovered on MySpace
Venture Business News | 2007/05/15 09:21

Thousands of convicted sex offenders have registered for profiles on social networking Web site MySpace, posing a risk to children who are among the site's most avid users, eight U.S. attorneys general said on Monday. Connecticut Attorney General Richard Blumenthal and counterparts in seven states called on the company, owned by media tycoon Rupert Murdoch's News Corp., to hand over the offenders' names and addresses.

Sources told the attorneys general that MySpace had discovered thousands of sex offenders on its site in an internal investigation, Blumenthal said. He did not give the identity of the sources.

"Our objective is to assure that these convicted sex offenders are removed from this site and other social networking sites," Blumenthal said by telephone after holding a news conference in Hartford, Connecticut.

"The information about convicted sex offenders on MySpace is simply more evidence that additional measures such as age verification are necessary to protect children," he said.

About 100 million people worldwide use the fast-growing MySpace service.

Children's advocates say they fear that young teens who use MySpace, Facebook and other such sites to socialize fail to grasp the risks involved in meeting people over the Internet.

"People should be notified if these offenders have been in touch with them or their children," said Judi Westberg-Warren, president of Web Wise Kids, a California-based nonprofit Internet safety organization.

In January, the families of five teenage girls who were sexually assaulted by people met through MySpace sued News Corp., charging negligence and fraud.

U.S. lawmakers are considering making it a crime for anyone over 18 to misrepresent their age for the purpose of luring a minor over the Internet for illegal sexual contact.

One concrete step MySpace and other social-networking sites could take to improve the safety of young people would be to verify the ages of their members, Westberg-Warren said.

"This is not just about MySpace, this is about all social networking," she said. "The kids can go from MySpace to another social networking site. This needs to be, in general, something that all social networking sites are working with."

The attorneys general of Georgia, Idaho, North Carolina, Ohio, Pennsylvania, Mississippi and New Hampshire joined Connecticut in signing a letter to the company asking it to turn over information.

They also asked MySpace, which has come under criticism for not doing enough to protect young people using the site from adult sexual predators who pose as teens, if the profiles in question have been removed from the site.

MySpace officials could not provide immediate comment.



US Deputy Attorney General McNulty resigns
Legal Careers News | 2007/05/15 09:16

US Deputy Attorney General Paul McNulty announced Monday that he will resign from his post as second-in-line at the Department of Justice (DOJ) as early as the end of the summer, or when a successor receives Congressional approval. In a letter submitted to Attorney General Alberto Gonzales, McNulty said personal reasons affected his decision: "The financial realities of college-age children and two decades of public service lead me to a long overdue transition in my career." The announcement comes amid a flurry of investigations surrounding the firings of federal prosecutors over the last two years. At least nine former US Attorneys allege they were fired in political retaliation for investigations they were or were not conducting. Gonzales publicly accepted McNulty's resignation in a statement released Monday.

In February, McNulty testified before the Senate Judiciary Committee that thirteen or more federal prosecutors who have been removed over the past two years were not victims of political retaliation, as some Democrats have alleged. McNulty specifically denied that the removal of former US Attorney Carol Lam, who prosecuted former Republican congressman Randy "Duke" Cunningham, was motivated by political considerations. McNulty did admit, however, that one of the firings was conducted to allow Tom Griffin, former aide to Karl Rove, to assume the position. Gonzales has denied such allegations, maintaining the firings were necessary to replace US attorneys performing poorly on the job.



DOJ proposes stiffer penalties for copyright violators
Intellectual Property | 2007/05/15 08:17

US Attorney General Alberto Gonzales submitted the Intellectual Property Protection Act of 2007 to Congress on Monday, legislation meant to strengthen current copyright laws and provide harsher penalties for counterfeiters. The new measure would increase the maximum penalty for willful counterfeiting infringement to up to 20 years. At a speech to the US Chamber of Commerce Coalition Against Counterfeiting and Piracy, Gonzales said that the new initiative "is a comprehensive and coordinated plan for federal agencies to work together to crack down on the growing trade in counterfeit and pirated goods."

In a conference call concerning the new legislation on Monday, senior DOJ officials also said that obtaining international cooperation on the area of copyright law is of great importance to the department. The US has listed 12 countries as failing to provide adequate protection, including Russia, China, and Israel.



BetOnSports founder Kaplan pleads not guilty
Court Watch | 2007/05/15 07:23

The founder of the notorious online betting company BetOnSports, Gary Kaplan, pleaded not guilty yesterday to the charges brought against him. The Internet gambling executive pleaded "not guilty" on the charges of federal racketeering, tax evasion and fraud on Monday, despite the previous statements from the chairman of the troubled online betting company, that a guilty plea was going to be filed. 

Kaplan, along with 10 other executives from the online gambling industry were indicted by U.S. District Court in St. Louis on charges that the company took billions in illegal bets from U.S. residents. The company BetOnSports stopped taking bets from US citizens as a result of a civil settlement last November, and agreed to return the money back to the American bettors, something that has not happened as of yet. The criminal charges, however, are still pending.

The 48-year-old Gary Kaplan was arrested in March in the Dominican Republic, after fleeing the country to avoid prosecution.



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