Oscar Allen, of Williamsburg, Va., waived indictment and pleaded guilty in U.S. District Court for the Eastern District of Virginia to a criminal information charging him with conspiracy to travel in interstate commerce to aid in illegal gambling and to sponsor a dog in animal fighting.

According to court documents, in or about 2001, Allen -- known as "Virginia O" -- bred a litter of puppies for Bad Newz Kennels, the name of Vick's dogfighting operation, for use in animal fighting. One of the puppies was a male pitbull named Magic. In or about 2002 or 2003, Allen also sold Vick and his co-defendants a female pitbull named Jane, according to the documents. Both dogs are mentioned by name in court documents in Vick's case.

Allen also acknowledges that he gave members of Bad Newz Kennels, comprised of Vick, Purnell Peace, Quanis Phillips and Tony Taylor, advice on the operation of a dogfighting kennel and attended dogfights at Vick's rural Virginia home, 1915 Moonlight Road, in Surry County. Allen also stated that he was present in April 2007 when Vick, Peace and Phillips tested dogs to determine if they would be good fighters. The dogs that did not test well were executed, but Allen said he was not present.

Court documents specifically refer to Bad Newz Kennels and Vick's address, but refer to the co-defendants as M.V., P.P., Q.P. and T.T.

Allen, 67, will be sentenced Jan. 25, 2008, in Richmond in front of Judge Henry E. Hudson, who will also sentence Vick and his co-defendants. He faces a maximum sentence of five years in prison and a $250,000 fine. He was released with conditions.

Vick and his co-defendants also face state charges in Virginia. Another hearing in that case is scheduled for Nov. 27.

In the federal case, Phillips and Peace will be sentenced Nov. 30. Vick will be sentenced on Dec. 10, the same day the Falcons play New Orleans on "Monday Night Football" without the quarterback who has been suspended indefinitely by the NFL. Taylor, the first of the co-defendants to reach a plea agreement, will be sentenced Dec. 14.

Tournament sponsors who comply with the reporting requirement don't need to withhold taxes on the winnings. If the sponsor does not report the winnings, though, the IRS will enforce the reporting requirement and require the sponsor to pay any tax that should have been withheld from the winner. The withholding amount is normally 25 percent.

Tournament winners must provide their taxpayer identification number or Social Security number to the tournament sponsor. If they don't, the sponsor must withhold 28 percent of the winnings. Taxpayers must also report their winnings on their own to the IRS, as they have been required to do in prior years.

Reached Tuesday, Kirk declined to say why he and his wife, Erika, 73, decided to settle the suit rather than fight the IRS in a trial scheduled for next month.

"Let's let it lie for the moment," he said. "It's a long story, but an interesting one."

In a lawsuit filed in March, the IRS claimed Kirk put the home in his wife's name to avoid paying taxes dating to 1995.

In depositions, the couple insisted that she owns the house. However, government attorneys pointed out that on tax returns in 2001, 2002 and 2003 he deducted about $8,000 each year in mortgage interest.

While acknowledging he signed the returns, he insisted: "It's my wife's home, and that is it."

During an August deposition, he said he has been harassed by the IRS since he left the governor's office in 1971, having sealed his place in history as the state's first Republican governor since Reconstruction and the most flamboyant chief executive of either party - ever.

"I left the governor's office broke, b-r-o-k-e, because if you don't steal, it's not a very good job," he told government attorneys. "And I've been harassed by the IRS ever since. They had a system, started with the Carter administration, saying, 'Oh-oh, anybody who has been a politician has got money.' They've been rattling the cage forever."

He declined to say how much he made annually or exactly what he does for a living. He bristled when IRS attorneys attempted to question him about his 2001 tax return that reported $183,540 in earnings.

"I try to have people pay me for advice," he said. "Some of them take that advice and some don't pay me. It's not an easy business. I have no assets. I came out of being governor broke, and it hasn't changed."

The IRS declined comment on the settlement that must be approved by U.S. District Court Judge Donald Middlebrooks.

The investment bank said it wrote down $7.9 billion in fixed-income instruments called collateralized debt obligations and from defaulting subprime mortgages _ more than the $5 billion writedown it estimated earlier this month. The result was a net loss for the quarter of $2.3 billion, after total revenue plummeted 94 percent.

The worse-than-anticipated loss signaled to investors that the financial sector may be in a more dire situation than feared because of the credit squeeze that was triggered in part by spikes in mortgage defaults. Meanwhile, the National Association of Realtors' 10 a.m. EDT report on existing home sales was projected to show a drop in September for the seventh straight month.

The technology sector appeared to be losing momentum from earlier in the week. Amazon.Inc. said late Tuesday its quarterly profit more than quadrupled, but it only beat per-share estimates by a penny. Investors didn't see enough reason to bring the Internet retailer's shares, already at their highest level since 1999, even higher.

Two co-defendants, one of them a Mesa man, pleaded guilty to reduced charges Tuesday in the O.J. Simpson armed-robbery case, agreeing to testify against Simpson and three others in the alleged theft of sports collectibles from two memorabilia dealers.

Behind the scenes, prosecutors prepared to file an amended criminal complaint increasing the number of charges in the case to 12, including a second felony charge of coercion against Simpson and two new coercion charges each against the three remaining co-defendants.

The new complaint also alleges Simpson and Charles "C.J." Stewart conspired to persuade others to tell authorities that no guns were used.

The revised document, obtained by the Associated Press, removes Walter Alexander of Mesa and Charles Cashmore from the case, while naming Thomas Riccio in the Sept. 13 meeting between Simpson and memorabilia dealers Bruce Fromong and Alfred Beardsley.

Riccio, who was given immunity from prosecution, is expected to join Cashmore and Alexander in testifying for the prosecution.

Alexander pleaded guilty to the felony of conspiracy to commit robbery.

The district attorney said he would seek a suspended sentence for Alexander, a golfing buddy of Simpson's. "I'm very much at peace at what I've done today and what I'm going to continue to do," Alexander said as he clutched a Bible outside court. "I'm not here to try to hurt or help O.J. Simpson. I'm only here to tell the truth."