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Freddie Mac, SEC settle accounting fraud charges
Lawyer Blog News |
2007/09/28 14:57
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Giant mortgage-buyer Freddie Mac will pay a $50 million fine to securities regulators to settle charges it manipulated earnings for three years, the Securities and Exchange Commission said Thursday. Four former Freddie executives will also pay nearly $800,000 in penalties, the SEC said. Neither the company nor the executives admitted or denied the U.S. allegations. The SEC's complaint says Freddie Mac misreported its net income in 2000, 2001 and 2002. In a press release, the SEC said the company improperly managed earnings beginning as early as 1998. "Freddie Mac's departure from proper accounting practices was the result of a corporate culture that sought stable earnings growth at any cost," said Linda Thomsen, the SEC's enforcement director, in a statement. The SEC said it expects to distribute the penalty money to investors. Freddie Mac has taken a number of steps to bolster its accounting practices. On Thursday, Freddie's chief executive, Richard Syron, said the agreement resolves the last investigation related to its earnings restatement. "This is another milestone enabling us to focus entirely on those things that are most important -- further advancing our housing mission, effectively serving our customers and building our business for the future," Syron said.
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Supreme Court Spares Texas Killer
Court Feed News |
2007/09/28 14:47
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The U.S. Supreme Court halted the execution of a man convicted of killing his parents in the nation's busiest death penalty state after already agreeing to review another state's lethal injection procedures. The high court, which refused a similar appeal earlier this week from another Texas inmate, blocked state corrections officials Thursday night from executing 28-year-old Carlton Turner Jr. The order came less than two hours before the death warrant would have expired at midnight. Turner's lawyers had linked his case with an appeal from two Kentucky inmates who argued that lethal injection is unconstitutionally cruel. Both states use similar injection procedures employing three drugs. The justices on Tuesday agreed to consider the Kentucky appeal, and Turner's case was viewed as a barometer of whether capital punishment in Texas could be placed on hold while the Supreme Court considers that case. |
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'Jena 6' teen Mychal Bell freed on bail
Lawyer Blog News |
2007/09/28 14:43
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Mychal Bell walked out of jail yesterday, a week after a huge civil rights march demanding his freedom, but the prosecutor worsened racial tensions by declaring that Jesus saved the town from protestors. "Had it not been for the direct intervention of the Lord Jesus Christ last Thursday, a disaster would have happened," District Attorney Reed Walters said. "You can quote me on that." Walters spoke just before Bell, 17, was freed on $45,000 bail after spending 10 months in jail for beating a white classmate. "He goes home because a lot of people left their home and stood up for him," said the Rev. Al Sharpton, referring to the Sept.20 march. "We do not condone violence of any kind. ... Upon this young man's shoulders is a movement for fairness." His parents at his side, Bell, who did not speak, walked out of the LaSalle Parish courthouse, flanked also by Martin Luther King 3rd and Sharpton, who recently supplanted less media-savvy local activists to become Bell's spokesman. An all-white jury convicted Bell after his court-appointed lawyer failed to question any witnesses. The conviction was thrown out this month when an appeals court said he should not have been tried as an adult. Walters, who is being accused of treating black offenders more harshly than white ones, said he decided not to appeal the ruling. He said he would retry the case in juvenile court as soon as possible. "I believe that it is in the best interest of the victim and his family not to delay this matter any further," he said. Walters charged Bell and five black friends - known as the Jena 6 - with attempted murder last year for punching and stomping white classmate Justin Barker after a series of ugly racial incidents in town. Walters later reduced the charge to aggravated battery, which could still put the teens in prison for 20 years. |
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Disney Will Shut Down Cellphone Service
Business Law Info |
2007/09/28 13:43
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A year after shuttering its ESPN cellphone company, Walt Disney Co. said it is closing its Disney cellphone service. Walt Disney launched Mobile ESPN and Disney Mobile last year as mobile virtual network operators, or MVNOs. Under that business model, the Burbank, Calif., company leased wireless spectrum from Sprint Nextel Corp. and sold its cellphone service directly to customers. But in the competitive U.S. cellphone market, Disney struggled in its fight against the major carriers. Disney announced in September 2006 that it was closing Mobile ESPN, eight months after its debut. The company initially remained optimistic about its Disney-branded service, which sold phones featuring Disney content and services aimed at children and their parents. However, Disney failed to make headway with the big-box retailers and find outlets to sell its phones and related services. Disney will instead license its content to bigger carriers to sell. Earlier this year, it forged a partnership with Verizon Wireless, which is owned by Verizon Communications Inc. and Vodafone Group PLC, to sell ESPN sports news and video. Disney said yesterday it is considering offering some of its Disney-branded services through a partnership with a major carrier. Disney Mobile included services that let parents locate their kids as well as content such as ring tones and games with Mickey Mouse and other Disney stars. Disney isn't the only company to stumble in the MVNO arena. Amp'd Mobile Inc. sought Chapter 11 bankruptcy-court protection this year, after its youth-focused service burned through $350 million in start-up funding. Disney declined to comment on how much it had invested in its MVNOs or the cost of closing them. During a conference call in August 2006, Disney Chief Executive Bob Iger said the company was investing $150 million in Mobile ESPN in 2006. After announcing its closure last September, Disney Chief Financial Officer Tom Staggs told an analysts conference that the cost of closing it would be about $30 million. |
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Law firms want off Fabian case
Headline News |
2007/09/28 12:58
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Two law firms defending the Centre for Management and Technology and Chairman Alan Fabian on allegations of improper transfers of money have asked to withdraw from the cases, saying they have not been paid. Hogan & Hartson, which is representing the Centre for Management in two lawsuits in bankruptcy court, filed its motion to withdraw as counsel Sept. 10. And law firm Venable LLP said in court documents Sept. 20 that it would withdraw as counsel to Fabian, wife Jacqueline Richards-Fabian and other defendants in several proceedings to recover money in bankruptcy court. Fabian was indicted by a federal grand jury last month on charges of a $32 million computer equipment leasing scheme. The grand jury alleges Fabian used the money to buy beach property, travel on jets and set up the nonprofit Centre for Management. The center bills itself as a resource that helps other nonprofits operate more efficiently and use technology better. The center is not a defendant in Fabian's criminal case, but it is required to provide monthly financial reports to the federal court and not to make any financial transactions outside the ordinary course of business.
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Blackwater 'mistakes' led to surge of Iraqi violence
Legal World News |
2007/09/28 12:45
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Blackwater USA triggered a major battle in the Iraq war in 2004 by sending an unprepared team of guards into an insurgent stronghold, a move that led to their horrific deaths and a violent response by U.S. forces, says a congressional investigation released Thursday. The private security company, one of the largest working in Iraq and under scrutiny for how it operates, also is faulted for initially insisting its guards were properly prepared and equipped. It is also accused of impeding the inquiry by the Democratic staff of the House Oversight and Government Reform Committee. The results of the staff inquiry come less than a week before Erik Prince, a former Navy SEAL and Blackwater's founder, is scheduled to testify before the committee, which is chaired by Rep. Henry Waxman, D-Calif., a longtime critic of Blackwater. The March 2004 incident involving Blackwater was widely viewed as a turning point in the Iraq war after images of the mutilated bodies of the four guards were seen around the world. Four days after the Blackwater guards were killed, a major military offensive, known as the Battle of Fallujah, began. The combat lasted almost a month in Fallujah, which is 40 miles west of Baghdad. At least 36 U.S. military personnel were killed along with 200 insurgents and an estimated 600 civilians, the congressional investigation found. |
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