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Spammer Ralsky pleads guilty to stock fraud
Court Feed News | 2009/06/23 15:38
Alan Ralsky, a spam kingpin who was convicted of felony bank fraud in 1995, could face more than seven years in prison after pleading guilty in a stock fraud case involving spam messages that pumped up Chinese "penny" stocks.


Ralsky and four other individuals pleaded guilty on Monday, joining three others who had pleaded guilty earlier, the US Department of Justice announced on Monday. Cases are still pending against three other people, they said. The defendants were indicted in the Eastern District of Michigan in 2007.

In 2004 and 2005, the group engaged in a set of related conspiracies to manipulate stocks using false and misleading spam messages. After the spam boosted the trading volume and prices of the thinly traded stocks, the conspirators profited by trading in their shares. Many of the shares were low-priced "pink sheet" stocks for US companies owned by individuals in Hong Kong and China, the DOJ said.

Ralsky, 64, of Bloomfield Hills, Michigan, pleaded guilty to conspiracy to commit wire fraud and mail fraud and to violate the CAN-SPAM Act. As part of his guilty plea, Ralsky acknowledged he faces as much as 87 months in prison and a US$1 million fine. Ralsky's son-in-law, Scott Bradley, 38, also of Bloomfield Hills, pleaded guilty to the same charges and acknowledged he faces as long as 78 months in prison and a $1 million fine.

John Bown, 45, of Fresno, California, admitted creating a botnet to send the spam. Bown pleaded guilty to conspiracy to commit wire fraud and mail fraud and to violate the CAN-SPAM Act, as well as conspiracy to commit computer fraud. He faces as much as 63 months in prison and a US$75,000 fine. William Neil, 46, of Fresno, and James Fite, 36, of Culver City, California, also pleaded guilty in the case. All five defendants are scheduled to be sentenced on October 29.


Judge strikes down NYC's green-cab incentive
Lawyer Blog News | 2009/06/23 15:37
A judge on Monday rejected the city's latest maneuver to force taxicab owners to buy fuel-efficient hybrids, the second time in eight months he deemed such rules to be pre-empted by federal laws.

Under the rules rejected by U.S. District Judge Paul A. Crotty, companies that own fuel-saving cabs would have been allowed to charge drivers slightly higher rental rates; companies with gas-hungry vehicles would see their rates decrease over a two-year period.

In October, Crotty rejected for the same reason other rules the city had devised to try to force the fleet of yellow cabs to go green by 2012. Those rules would have required new cabs to be fuel efficient.

The judge praised the city's intent but said efforts to encourage the purchase of hybrid vehicles must be careful not to interfere with Congress' exclusive jurisdiction over laws related to mileage or emission standards.

"The court's purpose is not to interfere with government officials taking actions in the public interest," he wrote. "Increasing the number of hybrid taxicabs is an appropriate and important governmental priority."

The judge noted there were no legal challenges to decisions by the city to issue new taxi medallions only to hybrid vehicles or to allow hybrid cabs to stay in service longer.

Michael A. Cardozo, head of the city's law department, said the city was disappointed.

"We do not believe that Congress intended to prohibit local governments from implementing incentive programs ... that encourage the purchase of environmentally friendly taxis. We are exploring our legal options," he said in a statement.



High court rules narrowly in voting rights case
U.S. Legal News | 2009/06/22 15:19
The Supreme Court ruled narrowly Monday in a challenge to the landmark Voting Rights Act, exempting a small Texas governing authority from a key provision of the civil rights law but side-stepping the larger constitutional issue.


The court, with only one justice in dissent, avoided the major constitutional questions raised in the case over the federal government's most powerful tool to prevent discriminatory voting changes since the mid-1960s.

The law requires all or parts of 16 states, mainly in the South, with a history of discrimination in voting to get approval in advance of making changes in the way elections are conducted.

The court said that the Northwest Austin Municipal Utility District No. 1 in Austin, Texas, can opt out of the advance approval requirement, reversing a lower federal court that found it could not.

Chief Justice John Roberts, writing for the court, said the larger issue of whether dramatic civil rights gains means the advance approval requirement is no longer necessary "is a difficult constitutional question we do not answer today."

The court's avoidance of the larger issue explains the consensus among justices in the case rendered Monday, where they otherwise likely would have split along conservative-liberal lines.

Justice Clarence Thomas, alone among this colleagues, said he would have resolved the case and held that the provision, known as Section 5, is unconstitutional.

"The violence, intimidation and subterfuge that led Congress to pass Section 5 and this court to uphold it no longer remains," Thomas said.



Court says public must pay for private special ed
Legal Career News | 2009/06/22 15:18
The Supreme Court has made it easier for parents of special education students to be reimbursed for the cost of private schooling for their children.


The court ruled 6-3 Monday in favor of a teenage boy from Oregon whose parents sought to force their local public school district to pay the $5,200 a month it cost to send their son to a private school.

Federal law calls for school districts to reimburse students or their families for education costs when public schools do not have services that address or fulfill the students' needs. Under the Individuals with Disabilities Education Act, the nation's special education students are entitled to a "free and appropriate public education."

Schools have argued that parents of special education students should have given public special education programs a chance before seeking reimbursement for private school tuition. But advocacy groups and parents of some special education students contend that forcing them to try public schools first could force children, especially poor ones, to spend time in an undesirable situation before getting the help they need.

In the case before the Supreme Court, the family of a teenage Oregon boy diagnosed with attention deficit hyperactivity disorder sued the school district, saying the school did not properly address the student's learning problems. The family is seeking reimbursement for the student's tuition, which cost $5,200-a-month. The family paid a total of $65,000 in private tuition.

In its appeal, the Forest Grove School District said students should be forced to at least give public special education programs a try before seeking reimbursement for private tuition.

Justice John Paul Stevens said in his majority opinion that the federal Individuals with Disabilities Education Act requires a school district to pay for private special ed services if the public school doesn't have appropriate services.

"We conclude that IDEA authorizes reimbursement for the cost of special education services when a school district fails to provide a FAPE and the private-school placement is appropriate, regardless of whether the child previously received special education or related services through the public school," Stevens said.



Court to rule on federal sex offenders law
Lawyer Blog News | 2009/06/22 15:18
The Supreme Court will decide the constitutionality of a federal law that permits sex offenders to be kept behind bars after they complete their prison terms.


The justices, acting Monday, say they will consider the Obama administration's appeal of a lower court ruling that invalidated the law.

The 4th U.S. Circuit Court of Appeals in Richmond, Va., ruled in January that Congress overstepped its authority when it enacted a law allowing for indefinite commitment of people who are considered "sexually dangerous."

In April, Chief Justice John Roberts granted an administration request to block the release of up to 77 inmates at a federal prison in North Carolina. These were people whose prison terms for sex offenses were ending. The justice's order was designed to allow time for the high court to consider the administration's appeal.

The challenge to the law was brought by four men who served prison terms ranging from three to eight years for possession of child pornography or sexual abuse of a minor. Their confinement was supposed to end more than two years ago, but the government determined that there would be a risk of sexually violent conduct or child molestation if they were released.

A fifth man who also was part of the legal challenge was charged with child sex abuse, but declared incompetent to stand trial.



'Craigslist' killer back in court to face new charges
Criminal Law Updates | 2009/06/22 13:19

Philip Markoff, the former medical student accused of killing a 25-year-old masseuse he met through Craigslist is being arraigned in Boston today for first-degree murder and other charges.

Philip Markoff is expected to be in Suffolk Superior Court on Monday morning. He was indicted by a grand jury Thursday after a two-month investigation.

Suffolk County District Attorney Daniel Conley told CBS' The Early Show Monday that his office continues to receive new information on the case, though he admitted most of it has been unhelpful.

Despite that, Conley said, "We believe that we've built a very strong case against this defendant."

He added that Markoff's fiancée, Megan McCallister, has been cooperative, but declined to say whether she would be a witness for the prosecution.

Conley said the case probably won't reach trial for at least a year.



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