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Appeals Court Upholds Adelphia Fraud Convictions
Court Feed News |
2007/05/25 18:03
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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.
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Congress votes to raise minimum wage
U.S. Legal News |
2007/05/25 17:52
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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. |
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Teens Plead Guilty in Cell Phone Sex Assault
Court Feed News |
2007/05/25 15:07
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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. |
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DOJ expands investigation into politicized decisions
Legal Career News |
2007/05/25 12:52
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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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US-Mexico border fence may violate boundary treaty
Legal World News |
2007/05/25 09:56
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The International Boundary and Water Commission (IBWC) said Wednesday that a controversial 700-mile fence along the US-Mexican border may violate the 1970 Boundary Treaty, which resolved all pending boundary differences between the United States and Mexico. Sally Spener, spokesperson for the IBWC, said that impermeable fences on US territory but between existing rivers and levees could violate the treaty by deflecting or obstructing the natural water flow. The treaty established the Rio Grande and the Colorado River as the international boundary between the two countries, and established provisions to avoid the loss of territory by either party as a result of changes to the river's flow due to causes other than natural lateral movement. Spener said that the IBWC is still waiting for the Department of Homeland Security (DHS) [official website] to submit specific proposals detailing the fence's design and location before it can make a final determination. The IBWC is a a bi-national body created by the United States and Mexico in 1889 to administer boundary and water-rights treaties between the two parties. President Bush signed the Secure Fence Act of 2006 in October 2006. The legislation authorizes the construction of approximately 700 miles of fencing along the 2,000 mile US-Mexican border. Critics of the fence include locals in border communities, who feel that the the federal government has not addressed their concerns that a border fence would interfere with irrigation, harm wildlife, as well as disrupt Mexican consumers and investors that positively contribute to the local economy. The Vatican and the Mexican government have voiced strong criticism of the fence, characterizing it as "inhumane" and an embarrassment that "hurts bilateral relations and goes against the spirit of cooperation needed to guarantee security." The Department of Homeland Security (DHS) says it is scheduled to complete over half of the authorized fence by the end of 2008. |
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DOJ Challenges Charleston Newspaper Deal
Lawyer Blog News |
2007/05/25 08:59
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Three years after the parent company of The Charleston Gazette purchased its capital city rival, the Charleston Daily Mail, the U.S. Department of Justice has stepped in, declaring the sale illegal. The Justice Department filed a lawsuit May 22 in U.S. District Court in Charleston, alleging the sale violates antitrust laws. It seeks an order requiring the Daily Gazette Co., which owns the Gazette, and Denver-based MediaNews Group Inc., which owned the Daily Mail, to undo the $55 million deal. The 19-page complaint alleges the Daily Gazette Co. bought the Daily Mail in May 2004 intending to shut it down and create a newspaper monopoly in Kanawha County. The Justice Department said the Daily Gazette Co. suspended those actions in December 2004 but only after the company learned the federal agency had launched an investigation into the newspaper company's maneuvers. The Justice Department's suit seeks to undo completely the 2004 sale and restore the Daily Mail to its previous competitiveness. "When the Daily Gazette Co. acquired the Daily Mail with the aim of shutting it down, readers in the Charleston area and the advertisers who valued access to them, were denied the benefits of competition," Assistant Attorney General Thomas O. Barnett said in a news release. Barnett works in the Justice Department's Antitrust Division. "The Department's investigation saved the Daily Mail from this unlawful termination, and this action seeks to remedy the competitive damage already done and to prohibit the parties from resuming an anticompetitive course in the future." Trip Shumate, chief financial officer for Charleston Newspapers, which serves as the umbrella company handling the business side of the Gazette and Daily Mail, said the Daily Gazette will "vigorously defend" the Justice Department's lawsuit. "We will win in court if it goes there," he said. Messages left for Dean Singleton, MediaNews' vice chairman and CEO, and MediaNews President Joseph Lodovic IV were not returned. |
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