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Lawyer pleads guilty to $47 million Ponzi scheme
Breaking Legal News |
2011/08/05 09:10
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An Arkansas lawyer and businessman admitted today to staging a Ponzi scheme that netted more than $47 million, a scam that a prosecutor called the largest case of fraud in state history.
Kevin Lewis, 43, pleaded guilty today to one count of bank fraud in federal district court in Little Rock. He could face up to 30 years in prison, though U.S. Attorney Christopher Thyer said Lewis would likely receive between 10 to 13 years.
He will also have to pay restitution of almost $40 million, though that number could go down further as banks work to recover their losses.
Lewis acknowledged that he issued paperwork for fake rural improvement bonds often used by developers to defraud several Arkansas banks starting with a small bond in 1997.
That money went to maintain his business interests across the state, which range from a law firm to a clothing company. He used the money to make the payments on past fake bonds and support a personal lifestyle that included a house valued at more than $1 million, fancy cars and vacations, Thyer said.
Meanwhile, the bank that bought almost $23 million of the fake bonds, First Southern Bank in Batesville, was placed into receivership by authorities, Thyer said. Lewis had purchased majority ownership of First Southern, using a loan from another Arkansas bank that was backed by the fake bonds.
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Calif. court hears appeal on gay juror dismissals
Breaking Legal News |
2011/08/05 06:10
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A federal appeals case pending in California could determine if trial lawyers should be barred from dismissing potential jurors because they are gay.
The U.S. 9th Circuit Court of Appeals heard arguments Thursday in Pasadena that challenge a Los Angeles prosecutor's decision to strike a lesbian from the jury in an assault case against a gay federal inmate.
The Los Angeles Times reports a favorable ruling could extend constitutional discrimination protections to homosexuality, along with race, creed and gender.
Inmate Daniel Osazuwa says he hugged a guard who was homophobic and he overreacted. The guard fell and Osazuwa landed on him.
A public defender argues the trial judge erred in dismissing a lesbian from the jury, but a prosecutor says she was let go for another legitimate reason.
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Mo. court rejects challenge to land tax credits
Breaking Legal News |
2011/08/03 08:38
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A developer promising a multi-billion dollar makeover for impoverished north St. Louis won a legal battle Tuesday as the Missouri Supreme Court rejected a challenge to a state law directing tens of millions of dollars of tax credits toward his project.
The seven-member Supreme Court was divided in its reasoning but united in the ultimate result of its ruling, which secures state financing for the developer to assemble and maintain large swaths of land. Eventually, Paul McKee's NorthSide Regeneration LLC wants to build 10,000 homes and millions of square feet of office space in a two-square-mile area north of downtown St. Louis.
A lawsuit by two local residents took issue with a 2007 state law enacted with McKee's project in mind. That law authorizes up to $95 million of tax credits to offset part of the cost of buying and maintaining large amounts of property in impoverished areas. NorthSide Regeneration so far has received about $28 million in tax credits.
Tax credits reduce the amount of state income tax owed by a taxpayer. The lawsuit claimed the credits were similar to getting cash from the state and thus violated the Missouri Constitution by granting public money to a private person or corporation. A Cole County judge ruled against the plaintiffs in March 2010 and the case was appealed to the state Supreme Court.
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DeMocker defense says former lawyer will keep mum
Breaking Legal News |
2011/08/01 08:54
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Lawyers for a Prescott stockbroker facing a murder retrial say they won't allow his former defense attorney to give a deposition in the case.
John Sears is one of two attorneys who quit Steven DeMocker's case in October, citing a conflict of interest. The move triggered a mistrial in November.
Deputy Yavapai County Attorney Jeffrey Paupore filed a motion last week that Sears be deposed as a material witness.
But DeMocker's current lawyer says any communications between Sears and DeMocker remains confidential and privileged.
The 56-year-old DeMocker is accused of killing his ex-wife, Carol Kennedy, with a golf club in July 2008 to avoid paying hefty alimony bills. He faces a life sentence if convicted.
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Layoffs loom in Ala. court clerks' offices
Breaking Legal News |
2011/08/01 08:52
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A month-long notice has begun for massive layoffs in state court clerks' offices.
The Birmingham News reports that court officials say about one-third of the 750 employees in clerks' offices statewide will be laid off effective Aug. 31.
The officials say the layoffs are timed so the 255 workers will be off the state payroll before the court system's new, leaner budget takes effect Oct. 1.
The Jefferson County clerk's offices, which handle more than 75,000 filings per year, will be down to 48 full-time clerks and three temporary workers after the layoffs.
Chief Justice Sue Bell Cobb has ordered clerks' offices statewide to be closed to the public for 10 hours weekly starting in August to give the workers time to catch up on processing court documents.
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Judge wants agency to investigate Meijer lawyer
Breaking Legal News |
2011/07/25 08:22
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A judge believes a lawyer committed perjury when he denied knowing anything about the role of Meijer Inc. in a 2007 recall election of township officials in northern Michigan's Grand Traverse County.
Judge Philip Rodgers said he has referred the matter involving Timothy Stoepker to the Michigan Attorney Grievance Commission, a watchdog agency.
"I believe it occurred, and I have an ethical responsibility to report it," Rodgers told the Traverse City Record-Eagle.
Stoepker, an attorney at the firm Dickinson Wright in Grand Rapids, represented Meijer during a dispute over a new store in Acme Township. Voters rejected the store in 2005, and township officials were targeted for recall in 2007.
Meijer, a major Midwestern retailer, later acknowledged illegally financing the recall effort and subsequently paid a $190,000 fine.
During a deposition in a civil lawsuit by a township official, Stoepker was asked what he knew about Meijer's role. "I have no knowledge of that at all," he replied.
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Ex-CEO convicted in scam at auto-chemical company
Breaking Legal News |
2011/07/20 09:35
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A former corporate executive officer of a New York-based automotive-chemical company was convicted Tuesday in a multimillion-dollar investor fraud scheme that enabled him to buy expensive jewelry and take private jets.
A jury in Manhattan state Supreme Court found Cleveland lawyer James Margulies guilty of charges including grand larceny and scheme to defraud. He faces up to 25 years on the top two counts, which could run consecutively. Bail was set at $1.5 million.
Ira London, an attorney for Margulies, said he planned to file "a very vigorous appeal."
"The jury has spoken. I believe they have convicted an innocent man," he said.
While serving as the company's finance chief — and briefly as CEO — of Industrial Enterprises of America, Inc., from 2004 to 2008, Margulies illegally issued millions of shares of stock to friends and relatives, inflating the share price by making the company look more profitable than it was, prosecutors said.
A teachers' pension fund in Ohio and a church were among the victims of the scheme, prosecutors said.
Margulies personally reaped more than $7 million, spending it on lavish luxuries such as a $350,000 diamond ring for his wife from jeweler Harry Winston, prosecutors said.
He also paid more than a million dollars on the mortgage of his first home, bought a second home and spent $500,000 on a vacation club membership, prosecutors said.
Margulies was charged in the scheme in 2010 along with John D. Mazzuto, who pleaded guilty Jan. 14 to his role in issuing fraudulent shares of stock.
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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