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UC receives money from Enron class action lawsuit
Lawyer Blog News | 2007/08/06 15:30

As the lead plaintiff in the class action lawsuit against Enron executives, the University of California has obtained more than $7.2 billion from the executives, accountants, attorneys and financial institutions that organized the fraud. On July 27, officials announced a proposed allocation plan to distribute the money to defrauded Enron investors who submit valid claims. “This is the first step in returning funds to these investors,” said Dan Newman, spokesman for lead counsel Lerach Coughlin, the law firm representing the university and the class of Enron investors.

The proposed plan allocates money to investors who purchased Enron securities between Sept. 9, 1997 and Dec. 2, 2001. Roughly 1.5 million Enron stock and bond purchasers lost more than $40 billion during this period, Newman said.

Due to accounting fraud, Enron shareholders have lost tens of billions of dollars. The company filed for bankruptcy in 2001.

In 2002, the United States District Court chose the university as the lead plaintiff in the lawsuit due to both financial and legal factors, which included the amount of losses the plaintiff endured from Enron investments, and the plaintiff’s ability to coordinate litigation as a single investor, according to a press release from the university. As lead plaintiff, the university helps monitor and oversee the litigation of the case, Chris Patti, UC general counsel, said.

The university lost $144.9 million based on 2.2 million Enron shares purchased during the class period, according to the press release. This money was taken from employees’ pension and endowment funds, said Trey Davis, director of special projections for the UC.

“The money the UC will receive (from the allocation plan) will go back to these funds, so there will be no effect on students directly,” he said.

The university worked with outside counsel and experts to design the plan. But it has been a difficult process, Patti said, to ensure that all investors receive the money they deserve. The allocation needs to account for what type of Enron stocks and bonds investors purchased, when they purchased them and when they sold them.

“We want to make sure it’s as fair as possible, and (we are) therefore taking extra steps to ensure we do not miss anything,” Patti said.

The UC is asking for feedback on the proposed plan from an independent expert consultant and the public. Comments from the public can be submitted until Aug. 20 through a specially created Web site, Enronfraud.com.

After reviewing the public’s comments, university officials will request permission from Judge Melinda Harmon of the U.S. District Court for the Southern District of Texas, Houston Division, to ask for formal input about the plan from members of the Enron class.

Only after Judge Harmon approves the plan and any appeals are resolved will the money be distributed. It is difficult to predict when this will happen, Davis said, but it will not be before 2008.

Other plaintiffs have still not settled cases against Enron executives. A similar case has appealed to the U.S. Supreme Court, and its result will determine if the case against the remaining defendants will continue, Newman said.

“This is an ongoing process, but investors have received a lot of support,” Newman said.

Most attorney generals, academic experts and professional groups have filed friends-of-the-court briefs with the U.S. Supreme Court in support of investor protections, according to the university’s press release.



Jurors' doubts weigh heavily in Davis case
Headline News | 2007/08/06 13:32

Five days before Troy Anthony Davis' scheduled execution, Brenda Forrest got a call from her husband of eight years.

He had just heard a report on a Chicago radio station about a convicted cop killer from their hometown of Savannah. The report said serious questions had surfaced about whether the man was actually guilty of the 1989 murder.

"Oh my God," Forrest said, finally letting go of the secret she had kept. "I was on that jury. I've got to get involved."

The next day, Forrest called lawyers at the Georgia Resource Center, whose attorneys help represent Davis. She reviewed recanted testimonies of seven of nine trial witnesses and also the affidavits of others who had stepped forward with additional information. Some implicated another man in the murder of Officer Mark Allen MacPhail.

Forrest signed a sworn statement of her own:

"I have some serious doubts about the justness of Mr. Davis' death sentence. I find it very troubling that the jury's sentence was based upon incomplete and unreliable evidence. If I had been aware of this newly gathered evidence and had the benefit of it at trial, I would not have sentenced Mr. Davis to death."

Three other jurors in Davis' 1991 trial signed similar statements that his defense lawyers presented to the Georgia Board of Pardons and Paroles at a hearing on July 16, the day before Davis was set to die.

Curtis Wilson, Isaiah Middleton and Cynthia Quarterman also expressed concerns as to the fairness of Davis' punishment given after reviewing the revised testimonies.

The clemency board temporarily stayed Davis' execution.

On Friday, the Georgia Supreme Court agreed to hear Davis' request that he be granted a new trial. A spokeswoman for the clemency board said it would announce today if would hold a hearing previously scheduled for Thursday after the five board members have reviewed the Supreme Court's decision to hear the case.

Forrest said she believes Davis should not be put to death until the new evidence in his case is examined by a judge or jury. No court has yet seen the new information because of a 1996 federal law designed to streamline capital cases and place a time limit on inmate appeals.

"I can't say for sure if he's guilty or not, but he deserves to be heard," Forrest said.

It's not common to have four jurors change their minds based on new evidence, said one legal expert who has been studying capital case juries for 15 years.

"In this case, the fact that there are any jurors, but especially four with doubts about the death penalty, would sort of indicate that chances of a life sentence would be significant," said Scott Sundby, law professor at Washington & Lee University.

Because of the federal law, however, the difficulty is getting any forum to hear from Davis' defense attorneys, Sundby said. "I am impressed that the pardons board is open to this evidence," he said.

Sundby said a lot is asked of jurors who must make a decision of life and death.

"One of their greatest frustrations is when they have gone through this process and then they find out they didn't have the full picture," he said. "There is a sense of betrayal on their part. Their view is: You asked us to condemn someone to death, and we didn't have all the facts."

Forrest knows that if Davis' execution is carried out, it will be done in her name.

Since the trial, she has wrestled with her faith and the moral correctness of the death penalty. She is troubled by the case even more now that she has read the new testimony.

Forrest was 35 and working as a chemist when she was called for jury duty. She said few of the witnesses seemed like upstanding citizens, and she questioned their credibility.

"They were not people who were believable," Forrest said in a telephone interview from her office in Chicago, where she relocated in 1999.

The jury of seven blacks and five whites deliberated for one hour and 57 minutes before returning a verdict.

In the somber jury room, Forrest said her fellow jurors debated the testimony of Harriet Murray, who testified that she saw Davis with a "smirky-like smile" on his face when he shot MacPhail. The jury found her story compelling but discussed whether she could have really seen what was happening from a distance and in the darkness of night, Forrest recalled.

After the trial, in a 2002 affidavit, Murray was more ambiguous about who she saw that night. She no longer named Davis as the killer. Murray has since died.

Other jurors, Forrest said, talked about Davis' demeanor. She always thought he had a look of resignation.

There was a conversation about possible innocence. Is there any doubt about Davis' guilt based on what we heard? the jurors asked themselves.

Then they wrote down their verdicts. It was unanimous.

"I was under oath to vote according to the evidence we heard," she said. "I was compelled to agree [he was guilty] at the time.'

But the trial troubled Forrest. She never spoke about it with anyone, not even with the man she later married.

She got on with her new life, far from Savannah, far from the prison at Jackson, where Davis has been on death row for 16 years.

"What I did was put it out of my mind," she said.

After reviewing the new defense documents, she was eager to know what the clemency board would decide. "I was sitting on pins and needles to see if he got a stay," she said.

Now, like every other interested party in the case, Forrest has to wait longer.

If Davis winds up being executed, Forrest says she will have to live with herself. It will haunt her until her own death.



Bush and Karzai hold "strategy session" in US
Legal World News | 2007/08/06 13:15
Afghanistan's president Hamid Karzai has arrived in Camp David for what has been billed by experts as a "strategy session" with US president George W. Bush. On the agenda: the struggling, six-year effort to rebuild the war-torn country, and the efforts to defuse the threat from Taliban and al-Qaeda militants. A report from US spy agencies last month found both groups were training new recruits in the Waziristan region of Pakistan, near the Afghan border.

The more immediate crisis of trying to free the remaining 21 South Korean hostages seized by the Taliban last month will also dominate the talks. Seoul is pressuring the US and Afghanistan to do all they can to secure the group's release. Analysts say Bush will want to reassure Karzai of US commitment to his country. Washington has already allocated ten billion dollars for Afghanistan this year, and has also boosted troop levels.


Woman Pleads Guilty To Passing Bad Checks
Court Feed News | 2007/08/06 11:26
An employee of a physician-billing service pleaded guilty in federal court to charges of passing about $100,000 in forged checks. Christine Ann Wilson, of Beechview, deposited checks issued by health care insurance companies into her own account between May 2004 and March 2006, according to prosecutors. Wilson was indicted in December on 124 counts of forgery and pleaded guilty on Thursday. She faces up to 10 years in prison and a $250,000 fine.

U.S. District Judge Gustave Diamond scheduled a sentencing hearing for Nov. 6.


Bush signs intelligence surveillance bill
U.S. Legal News | 2007/08/06 02:38
President Bush on Sunday signed into law an expansion of the government's power to eavesdrop on foreign terror suspects without the need for warrants.

The law, approved by the Senate and the House just before Congress adjourned for its summer break, was deemed a priority by Bush and his chief intelligence officials.

Bush signed the bill into law on Sunday afternoon at his retreat at Camp David, Md.

"When our intelligence professionals have the legal tools to gather information about the intentions of our enemies, America is safer," Bush said. "And when these same legal tools also protect the civil liberties of Americans, then we can have the confidence to know that we can preserve our freedoms while making America safer."

The administration said the measure is needed to speed the National Security Agency's ability to intercept phone calls, e-mails and other communications involving foreign nationals "reasonably believed to be outside the United States."

The law is designed to capture communications that pass through the United States.

Civil liberties groups and many Democrats say it goes too far, possibly enabling the government to wiretap U.S. residents communicating with overseas parties without adequate oversight from courts or Congress.

The new law updates the Foreign Intelligence Surveillance Act, and it will expire in six months unless Congress renews it. Bush wants deeper, permanent changes.

"We must remember that our work is not done," Bush prodded. "This bill is a temporary, narrowly focused statute to deal with the most immediate shortcomings in the law."



US House passes intelligence surveillance bill
Lawyer Blog News | 2007/08/05 16:39

The US House of Representatives voted 227-183 late Saturday in favor of the Protect America Act 2007, legislation that gives the Executive Branch expanded surveillance authority for a period of six months while Congress works on long-term legislation to "modernize" the Foreign Intelligence Surveillance Act (FISA). The bill was passed by the Senate Friday and Bush said Saturday that he will sign the legislation. Bush said that Director of National Intelligence Mike McConnell has provided the president assurances "that this bill gives him what he needs to continue to protect the country."

The Protect America Act establishes legal guidelines on how the United States can conduct surveillance against foreign nationals "reasonably believed to be outside the United States," and requires the director of national intelligence and the attorney general's authorization before surveillance against a specific target can begin. The surveillance will be subject to review by the Foreign Intelligence Surveillance Court within 120 days.



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