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DA says NY mortgage fraud had link to S&M club
Legal Career News | 2009/03/27 15:43
Five people, including a former county legislator and a woman said to be a dominatrix, are facing charges they participated in a $50 million mortgage fraud scheme involving several dozen Hamptons properties over the past seven years.


The frauds involved so-called "straw buyers" — people who received a fee for agreeing to use their name and credit information to obtain mortgages on dozens of properties. Such scams have proliferated around the country in recent years, although rarely in such a high-profile location as Wednesday's bust.

The Hamptons have long been a getaway for the rich and famous, with celebrities and wealthy New Yorkers spending exorbitant amounts of money on mansions and summer rentals. Prosecutors said some of the homes that were rented to vacationers were fraudulently purchased through the mortgage fraud scheme.

The straw buyers either filled out phony loan applications claiming inflated or nonexistent incomes — in one case claiming a salary of nearly $450,000 a year — or said they were employed by corporations controlled by some of the schemers, Spota said.

One of these companies was identified as Arena Studios, Inc. a Manhattan business that at one time provided dominatrix services, the prosecutor said. Another source of straw buyers was a company called Maximum Restraint Films.



Hundreds of Pa. juvenile convictions reversed
Court Feed News | 2009/03/27 15:42
The Pennsylvania Supreme Court has overturned likely hundreds of juvenile convictions issued by a corrupt judge.


The high court on Thursday voided the convictions of many youth offenders who appeared before former Luzerne (loo-ZURN') County Judge Mark Ciavarella (shiv-uh-REL'-uh) from 2003 to 2008.

Federal prosecutors charged Ciavarella and another judge with taking $2.6 million in payoffs to put juvenile offenders in private lockups.

The judges pleaded guilty to fraud last month and face sentences of more than seven years in prison.

The juveniles whose records were expunged were low-level offenders who appeared in Ciavarella's courtroom without lawyers.



Phil Spector murder retrial in hands of LA jury
Lawyer Blog News | 2009/03/27 15:41
The murder case against music producer Phil Spector is in the hands of a California jury again.


The case was turned over to the Los Angeles Superior Court jury Thursday after the prosecution concluded a rebuttal to the defense closing arguments.

Spector is being retried on a second-degree murder charge in the shooting of actress Lana Clarkson six years ago.

His first trial ended in a jury deadlock in 2007 with the majority favoring conviction. This time the jury has the option of considering a lesser charge of involuntary manslaughter.

Clarkson died of a gunshot fired inside her mouth as she sat in the foyer of Spector's home. The 40-year-old star of the cult film "Barbarian Queen" had met Spector hours earlier at her job as a hostess at the House of Blues.



Peter Madoff’s Assets Frozen by Judge in Investor’s Lawsuit
Legal Career News | 2009/03/26 15:46

The brother of convicted Ponzi scheme mastermind Bernard Madoff had his assets frozen by a New York state judge as part of a $2 million lawsuit filed by an investor who lost $470,000 in Madoff’s fraud.

New York Supreme Court Justice Stephen Bucaria yesterday signed an order temporarily freezing assets of Peter Madoff, who was chief compliance officer of Bernard L. Madoff Investment Securities LLC, according to a copy of the order. Bucaria will hold a hearing on April 3 in Nassau County.

Peter Madoff served as trustee for a $470,000 inheritance that 22-year-old law student Andrew Samuels received in 2003, his father, Howard Samuels, said in an interview. The judge issued the order in a lawsuit filed yesterday by the younger Samuels, who is suing Peter Madoff for $2 million for breaching his fiduciary duty by investing his inheritance with Bernard Madoff.

“All of his assets” are frozen, Howard Samuels said. “Everything.”

The order prohibits Peter Madoff, who lives in Old Westbury, New York, on Long Island, from removing, transferring or encumbering any funds or property and requires him to disclose all assets he owns. Andrew Samuels’ lawyer, Steven Schlesinger, said the freeze order reaches all of Madoff’s assets.



Arizona high court rejects private school vouchers
Legal Career News | 2009/03/26 15:45
The Arizona Supreme Court has ruled that two school voucher programs violate the state's constitution.


The vouchers have helped cover the cost of private school for foster children and disabled students. The justices ruled Wednesday that the programs run afoul of the Arizona Constitution's bans on using tax dollars to support private schools.

Lower courts had split on the issue.

Arizona's high court previously upheld another state effort to help defray the costs of private-school education. In 1999 it said an income tax credit for individuals making donations for private school scholarships was constitutional.



Coleman won't rule out appeal if loses Senate case
Headline News | 2009/03/26 15:44

Republican Norm Coleman, trying to regain his U.S. Senate seat, visited the U.S. Capitol on Tuesday and didn't rule out an appeal if a Minnesota court rules against him in his recount battle against Democrat Al Franken.

One of Minnesota's two Senate seats has been vacant this year after an election last November was so close it triggered a statewide recount. Coleman's first Senate term expired in January, and he is contesting the recount outcome that put Franken ahead by 225 votes.

The uncertainty has eroded Democratic party sway, and with it President Barack Obama's agenda, in the U.S. Senate. Democrats now control 58 of the 100 Senate seats, and they have sometimes struggled to get the 60 votes required to clear procedural hurdles under Senate rules.

The Minnesota court decision on Coleman's old seat could come "any day," Coleman told reporters in the Capitol, where he had come to attend the Senate Republican's weekly luncheon and brief senators on his court battle.

"We'll have to see what they (the Minnesota judges) do and see what the next step is," Coleman said. "I'm not anticipating at this point being across the street," he continued, looking out the window at the U.S. Supreme Court building.

But "this is about getting it right," he said. "If this court doesn't do that, we'll kind of look at the next level."




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