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Law firm's rainmaker moves to competitor
Headline News | 2007/05/26 19:57

Mayer, Brown, Rowe & Maw, in the middle of a gut-wrenching restructuring, lost a high-profile Chicago partner and revenue generator to a competitor.

Alan Salpeter, a trial lawyer who has represented major banks and accounting firms, notified the firm Friday that he is moving to the Chicago office of New York law firm LeBoeuf, Lamb, Greene & MacRae. Salpeter, who joined Mayer Brown in 1972 out of Villanova University School of Law, is one of the highest-compensated partners at the firm, according to sources inside Mayer Brown, who declined to reveal his salary.

A partner at LeBoeuf's Chicago office confirmed the move. Salpeter did not return a phone call seeking comment.

The departure of a rainmaking lawyer comes at a difficult time for Mayer Brown, one of the nation's 10 largest law firms in terms of revenue. In March the firm said it was firing or demoting 45 partners to boost profitability, an unusually large retrenchment for a major law firm. The downsizing was announced after several partners from its New York office had already left.

The restructuring also includes management changes. Earlier this month, the firm eliminated the position of firm-wide managing partner, folding those duties into the new Office of the Chairman. Managing Partner Debora de Hoyos will have a new management role directing recruiting and client development. The firm also appointed a new partner-in-charge of the Chicago office.

The hiring of Salpeter is a coup for LeBoeuf Lamb, as it looks to bolster its Chicago presence. Salpeter brings the kind of lucrative corporate litigation work that firms desire in a competitive market. He currently represents Canadian Imperial Bank of Commerce in a lawsuit connected to the demise of Enron Corp.



Ex-youth league official pleads guilty
Court Feed News | 2007/05/26 19:48

A former Casper Youth Baseball official has pleaded guilty to one count of embezzling money from the organization.

As part of a plea agreement, four other embezzlement charges against Keith Hood were dropped, Assistant Natrona County District Attorney Dan Itzen said Friday.

Hood was accused of writing $6,600 worth of checks to himself from the organization's bank account.

He faces a two- to three-year prison sentence that will be suspended, provided he completes three years of supervised probation and makes restitution, Itzen said.

Hood said in Natrona County District Court on Friday that he has already paid back $4,500 to the league, which serves about 700 children. pervised probation and makes restitution, Itzen said.



Appeals Court Upholds Adelphia Fraud Convictions
Court Feed News | 2007/05/25 18:03

A U.S. appeals court Thursday upheld the criminal convictions of Adelphia Communications Corp. founder John J. Rigas and his son Timothy, who both face lengthy prison terms for concealing loans and stealing millions from the cable operator. The court affirmed the bulk of the pair's July 2004 convictions on 18 counts of fraud, including securities fraud and conspiracy. One count of bank fraud was dismissed, however, and the appeals court said the two men should be resentenced.

John Rigas, 82, was sentenced in June 2005 to 15 years in prison, and Timothy Rigas, 51, the company's former finance chief, was sentenced to 20 years. Both men have remained free on bail while they pursued their appeals.

At the time, U.S. District Judge Leonard Sand in Manhattan admonished the elder Rigas for his lack of remorse and said he would have imposed a lengthier prison term if not for Rigas' age and ill health.

The Adelphia case was one of the biggest corporate fraud prosecutions in recent years. The father and son were accused of looting the company to pay for personal land deals and vacation homes.

In its decision Thursday, a three-judge panel of the U.S. Court of Appeals for the 2nd Circuit said the defendants needed to show substantial errors by the district court for a reversal of the jury verdict.

"Given the weight of evidence supporting the jury's verdict on each charge, we conclude that they have not done so," the judges said.

Attorneys for the Rigases had no immediate comment on the ruling, nor did the U.S. attorney's office in New York, which prosecuted the case.

Adelphia filed for bankruptcy protection in June 2002. Its cable assets have been sold to Comcast Corp. and Time Warner Inc.



Congress votes to raise minimum wage
U.S. Legal News | 2007/05/25 17:52

The US Congress passed the Fair Minimum Wage Act of 2007 Thursday, raising the federal minimum wage for the first time in almost a decade. The provision was introduced as an amendment to the Iraq War Supplemental Budget, and will raise the current minimum wage from $5.15 an hour to $5.85 an hour within 60 days of enactment and to $7.25 an hour within two years of enactment. The provision, and the Iraq war spending bill, passed the Senate 80-14 and the House 280-142. Sen. Edward Kennedy (D-MA) called the raise "long overdue" and criticized Republicans for preventing previous minimum wage bills from passing earlier this year by joining measures that would give tax breaks to businesses. The White House voiced support for the increase, but spokesperson Tony Fratto said that we would "very much prefer that it be paired with appropriate offsets for small businesses who would be disproportionately impacted by the minimum-wage increase." A $4.9 billion tax package also passed along with the minimum wage bill.

The National Restaurant Association (NRA), which represents an industry that employs approximately 12.8 million workers in 935,000 locations, issued a statement Thursday criticizing the minimum wage increase, saying that it "will cost our industry jobs... and that the current $4.9 billion tax package" would not provide sufficient relief for employers most impacted. The NRA claims that the industry "lost more than 146,000 jobs" and delayed the employment of 106,000 new employees as a result of the 40-cent minimum wage increase in 1997.



Teens Plead Guilty in Cell Phone Sex Assault
Court Feed News | 2007/05/25 15:07

Two of five teens have pleaded guilty to their role in a group sex assault recorded on a cell phone. Sixteen-year-old Reginald Pope Junior of Detroit, and 19-year-old Robinson Brown of Clinton Township pleaded guilty yesterday before a Macomb County judge. They were charged in the rape of an eleven-year-old girl in Pope's basement bedroom of an Eastpointe home.

Prosecutors are recommending that Pope be placed on probation while Brown gets at least two and a-half years in prison. Both will be sentenced in July. Investigators say the girl wasn't threatened but she felt coerced into complying.

Prosecutors are in plea discussions with attorneys for the three other defendants.



DOJ expands investigation into politicized decisions
Legal Career News | 2007/05/25 12:52

The US Department of Justice Office of Professional Responsibility has expanded its investigation into whether department aides illegally made hiring decisions based on consideration of applicants' political beliefs, the Los Angeles Times reported Thursday. The move follows Wednesday's testimony to the House Judiciary Committee by former DOJ aide Monica Goodling, where she admitted making hiring decisions based on political party affiliation. The DOJ also said that it found no evidence to support Goodling's claim that the practice was approved by officials in the department.

Goodling was testifying about her role in the firings of eight US Attorneys. She disputed testimony by resigning Deputy Attorney General Paul McNulty, and claimed that at least one US Attorney was fired to open a spot for a protege of Karl Rove.



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