Jarvis Malone, a former aide at the Arlington Developmental Center (ADC) in Arlington, Tenn., pleaded guilty today in U.S. District Court in Memphis to violating the constitutional rights of a mentally handicapped patient. During his plea hearing, Malone acknowledged that in June 2005, while working as a developmental technician at the ADC, a state-operated residential treatment facility for the mentally handicapped, he stood the victim against a wall and assaulted the victim. According to evidence presented at the hearing, Malone assaulted the victim to punish him. Malone agreed that his conduct violated federal law.

Malone faces a maximum sentence of 10 years imprisonment and a fine of $250,000. His sentencing hearing is scheduled for Oct. 16, 2007. “Civil rights laws are meant to protect all Americans, including the most vulnerable members of our society,” said Wan J. Kim, Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to prosecuting those who set aside those laws and violate the constitutional rights of others.”

“The U.S. Attorney’s Office will continue to prosecute those individuals who violate the civil rights of other people. We appreciate the hard work and dedication of the Federal Bureau of Investigation and the Tennessee Bureau of Investigation in their pursuit of ensuring that our citizens’ rights are protected,” said David Kustoff, U.S. Attorney for the Western District of Tennessee.

“The outstanding efforts of our Medicaid Fraud Control Unit is proven here today. Behavior exemplified in this case will not be tolerated in the state of Tennessee. We appreciate the coordination of all the state and federal agencies whose hard work has brought justice,” said Mark Gwyn, Director of the Tennessee Bureau of Investigation.

The Civil Rights Division is committed to the vigorous enforcement of every federal criminal civil rights statute, such as laws that prohibit the wilful use of excessive force or other acts of misconduct by law enforcement officials. In fiscal year 2006, nearly 50 percent of the cases brought by the Criminal Section of the Civil Rights Division involved such prosecutions. Since fiscal year 2001, the Division has convicted 50 percent more defendants for excessive force and official misconduct than in the preceding six years.

This case was investigated by Special Agent Tracey Harris of the Federal Bureau of Investigation and the Medicaid Fraud Control Unit of the Tennessee Bureau of Investigation. Assistant U.S. Attorney Steve Parker of the U.S. Attorney’s Office in Memphis and Trial Attorney Ed Caspar from the Civil Rights Division of the Department of Justice are prosecuting the case.

Akal Security Inc., one of the largest contract security providers in the country, will pay the United States $18 million to resolve allegations that it violated the terms of its contract to provide trained civilian guards at eight U.S. Army bases, the Justice Department announced today. According to the settlement, some of the supplied security guards allegedly failed to satisfy weapons qualification requirements and receive other training, and the contractor allegedly failed to satisfy contractual man-hour requirements.

In September 2003, the U.S. Army awarded a series of contracts for security guards to the Espanola, N.M., company for bases in Kansas, Washington, Texas, Georgia, North Carolina and Alabama. The company agreed at that time to provide fully trained personnel who were weapons qualified in accordance with military police firearms requirements.

In October 2004, three company employees, who worked as security guards at Ft. Riley, Kan., filed a qui tam or whistleblower suit against the company on behalf of the United States in U.S. District Court for the District of Kansas. Under the qui tam statute, a private party, known as a “relator,” can file an action on behalf of the United States and receive a portion of the recovery. The relators in this case will receive a share of the settlement that has yet to be determined.

“Today’s settlement illustrates the Justice Department’s determination to recover paid out funds where terms of government contracts are not met,” said Peter D. Keisler, Assistant Attorney General for the Civil Division.

The settlement resolves Akal’s potential liability under the False Claims Act arising from the complaint. The litigation and settlement of the case was conducted by the Department’s Civil Division along with the U.S. Attorney’s Office for the District of Kansas, as well as the U. S. Attorney’s Offices for the Western District of Kentucky, the Eastern District of Kentucky, the Western District of Washington, the Western District of Texas, the Southern District of Georgia, the Northern District of Alabama, and the Eastern District of North Carolina. The case was investigated by the Department of Defense’s Defense Criminal Investigative Service Office of the Defense Inspector General, and the U.S. Army Criminal Investigation Command.

Attorney General Alberto R. Gonzales, Assistant Attorney General for National Security Kenneth L. Wainstein and FBI Director Robert S. Mueller, III today announced a series of comprehensive measures to significantly enhance national security oversight and compliance at the Justice Department and FBI.

Among the primary components of this oversight effort, which has been in the works for months, are the proposed launch of two offices to conduct reviews, compliance activities, and training. The first is a dedicated Oversight Section within the Justice Department’s National Security Division. The second is a proposed Office of Integrity and Compliance at the FBI.

The oversight and compliance programs run by these offices will be at the forefront of the Justice Department’s ongoing efforts to ensure that national security investigations are conducted in a manner consistent with the nation’s laws, regulations, and policies, including those designed to protect the privacy interests and civil liberties of U.S. citizens.

“The top priority of the Department is to protect the nation from terrorist attack. At the same time, we have an important obligation to make sure the tools we use to prevent terrorism also protect the civil liberties of our citizens,” said Attorney General Gonzales. "This effort helps us achieve these objectives by enhancing internal controls over the Department’s national security activities.”

“The changes we announcing today are historic in nature. The FBI is instituting one of the first, agency-wide internal compliance programs in the federal government, and, for the first time, Justice Department attorneys will have a comprehensive mandate to examine all aspects of the FBI’s national security program for compliance with laws, regulations, and guidelines,” said Assistant Attorney General Wainstein.

“The FBI is charged with the mission to protect and defend the United States against terrorist and foreign intelligence threats and to enforce the nation's criminal laws, while upholding the fundamental protections provided by the Constitution,” said FBI Director Robert S. Mueller, III. “That requires striking a sometimes delicate balance, and the establishment of a compliance program marks another important step toward ensuring we fulfill our mission with an unswerving commitment to the rule of law.”

These measures build upon past Department improvements in national security oversight as counter-terrorism efforts have expanded. Last September, for instance, the Department created a National Security Division, in part, to enhance oversight of FBI and Department national security activities. In 2005, the FBI created a National Security Branch to centralize and coordinate FBI national security programs. Over the past several years, the Department has also expanded its reviews of FBI use of Foreign Intelligence Surveillance Act (FISA) authorities.

Oversight Program within DOJ’s National Security Division

The National Security Division plans to broaden the scope of its national security oversight well beyond the Department’s traditional oversight role, which was primarily focused on the FBI’s use of FISA authorities. For the first time, Justice Department attorneys will have the clear mandate to examine all aspects of the FBI’ national security program for compliance with laws, regulations, and policies.

Dedicated Oversight Section -- To accomplish the expanded mandate spelled out above, the Department is standing up a dedicated Oversight Section within the National Security Division. This section will consist of attorneys and staff members specifically dedicated to ensuring that the Department fulfills its national security oversight responsibilities. Until recently, the Department’s national security oversight largely focused on the FBI’s use of FISA authorities, with the Department conducting accuracy reviews to ensure the accuracy of FBI declarations to the Foreign Intelligence Surveillance Court (FISC) and minimization audits to ensure FISA information is handled appropriately. The Oversight Section will expand this focus beyond FISA to include all aspects of the FBI’s national security program and its use of national security tools.

Comprehensive National Security Reviews – The Oversight Section will exercise its oversight functions by conducting regular reviews of national security activities at FBI field offices and FBI Headquarters national security units. These reviews, which have already begun, are staffed by career Department attorneys with years of law enforcement and intelligence experience from the National Security Division and the FBI’s Office of General Counsel, along with officials from the Department’s Privacy and Civil Liberties Office. These reviews are not limited to the FBI’s use of FISA or National Security Letters, but examine all national security activities to ensure compliance with all applicable laws, guidelines and policies. Since establishing this review process in April 2007, the Division has completed national security reviews in four FBI field offices and plans to complete a total of 15 such reviews by the end of the year.

Reviews of Intelligence Oversight Board Referrals – As directed by the Attorney General in March 2007, the National Security Division will also be responsible for reviewing all referrals by the FBI to the Intelligence Oversight Board (IOB). This review process will focus on whether these referrals indicate that a change in policy, training, or oversight mechanisms is required. The Oversight Section will report to the Attorney General twice a year on such referrals and inform the Department's Chief Privacy and Civil Liberties Officer of any referrals that raise serious civil liberties or privacy issues.

Training and Outreach -- In addition, the National Security Division will provide training on legal and regulatory compliance issues for its lawyers and FBI agents and analysts, as well as conduct outreach to the rest of the intelligence community.

Office of Internal Compliance and Oversight at the FBI

The second key portion of this oversight and compliance initiative will be the FBI’s Office of Integrity and Compliance, which was recently proposed by the FBI Director. While compliance programs have long been a staple of private corporations, this effort would represent one of the first times a federal agency established an agency-wide compliance program. The creation of this office and the implementation of a new FBI-wide compliance program would represent a substantial innovation in the way the FBI does business. The office will work to ensure compliance not only in national security activities, but in all FBI activities.

Mission -- The mission of the FBI’s proposed Office of Integrity and Compliance is to develop, implement, and oversee a program that ensures there are processes and programs in place that promote FBI compliance with both the letter and spirit of all applicable laws, regulations, and policies. The office would cultivate an environment committed to these principles and assist FBI management at all levels foster and maintain a culture where ethics and compliance are paramount considerations in decision making.

Structure -- The proposed Office of Integrity and Compliance would be headed by a career Assistant Director who will report directly to the FBI’s Deputy Director, providing direct access to the top decision makers within the FBI. The management structure would include a Steering Committee, chaired by the FBI Director, and five Executive Management Committees, which would examine compliance in different of portions of the FBI, including the National Security Branch, Criminal Investigations, investigative support, administrative and information technology.

New Policies and Risk Assessments -- The Office of Integrity and Compliance would begin establishing policies on compliance standards, training, communications, and risk assessments for the FBI. The office would support the implementation of the FBI’s overall compliance policies and standards within FBI Divisions, monitor the FBI-wide compliance program, ensure that necessary audits are performed, and deliver an annual report to key stakeholders. The office would also work closely with the FBI Inspections Division to identify high-risk areas, amend inspection protocols to include compliance risk, and ensure that compliance monitoring is carefully planned and executed.

"This is a major victory for recording artists and record labels whose hard work and creativity provides the music around which the Internet radio business is built," SoundExchange executive director John Simson said. "Notwithstanding this victory, we continue to reach out to the webcasting community to reach business solutions."

SoundExchange was created to distribute the royalty following the 1995 Digital Performance Right in Sound Recording Act. The royalty is split 50-50 between copyright owner, typically a label but sometimes the artists or other entities, and the performer.

Webcasters had challenged the royalty, contending that a panel of copyright royalty judges erred when they dramatically increased the rate this year.

"Digital Media Assn. members and all Webcasters are disappointed by the court's decision and are now forced to make very difficult decisions about what music, if any, they are able to offer," executive director Jonathan Potter said. "The result will certainly be fewer outlets for independent music, less diversity on the Internet airwaves, and far fewer listening choices for consumers. We're hopeful that Congress will take steps to ensure that Internet radio is not silenced, and that Webcasters and SoundExchange will find a way to compromise and maintain the diversity and opportunity of Internet radio."

Boutique technology law firm Daniels Daniels & Verdonik, whose members were major players during the go-go, dot-com years, is closing shop and will be absorbed into the Raleigh outpost of New Bern-based Ward and Smith.

Founded in 1982, DD&V was well known among the local entrepreneurial intelligentsia, with clients including Etrials Worldwide Inc., EMC Corp. and StrikeIron Inc. The shop's offerings included corporate and tax law, structuring venture financing deals and patent and copyright work.

DD&V always has been a small firm, with its attorney roster maxing out at eight a few years ago. But after losing a couple of attorneys to Hutchison Law Group in the spring, DD&V's roster dwindled to just four lawyers, including name partners Walter Daniels, Linda Markus Daniels and Jim Verdonik.

"Daniels Daniels & Verdonik is a specialized firm with exceptionally knowledgeable attorneys who will strengthen our firm's full service capabilities," says Ward and Smith co-managing director Kenneth R. Wooten.

Partners at DD&V believe size will benefit the lawyers as well as the clients.

"We chose to combine with Ward and Smith to utilize their talented group of attorneys to provide additional resources to our clients," says Verdonik. "We are excited about this combination, and we look forward to continuing to serve the technology community with a wider range of services and a much deeper team."

Keith Kapp, who leads Williams Mullen Maupin Taylor's Raleigh office, sees benefits of the merger for DD&V.

"It would make good business sense and would better serve clients to be able to offer multiple specialties," says Kapp, who helped shepherd Raleigh-based Maupin Taylor through its recent merger with Virginia firmWilliams Mullen earlier this year.

Walter Daniels, a Morehead Scholar at the University of North Carolina at Chapel Hill, and wife Linda operated the firm as Daniels & Daniels for years. That changed in 2003, when tech and securities maven Verdonik jumped ship from Kilpatrick Stockton to join them.

In addition to the Danielses and Verdonik, intellectual property lawyer Jose Cortina works at DD&V.

The four lawyers are in the process of moving to Ward and Smith, which opened a Raleigh office in 1990. Excluding the DD&V crew, Ward and Smith's downtown Raleigh office has about 20 employees, including attorneys and support staff.

While specialization can have its advantages, DD&V was hamstrung by its size and practice limitations - especially after Caroline Horton Rockafellow and Amalie Tuffin departed the firm in March to join competitor Hutchison Law Group. A major chunk of DD&V's clientele is aspiring technology companies. They have the potential to soar to the moon, but many flame out on the launch pad.

Law firms can get burned along the way, notching plenty of billable hours working for a client that ends up not being able to pay because it encounters financial difficulty. Having to kiss a lot of frogs in order to find a prince is a better proposition at a bigger firm, which can weather tough times because it has other revenue-generating practice areas to fall back on.

A small firm such as DD&V also can be at a disadvantage because larger competitors can offer clients a wider diversity of services. For instance, DD&V competitors such as Smith Anderson and Wyrick Robbins Yates and Ponton both have dozens of lawyers and more practice areas, allowing clients to have much of their legal work taken care of under one roof. Hutchison Law Group has a niche similar to DD&V but is much bigger, having grown to 24 attorneys since its founding in 1996.

After the DD&V lawyers move over, Ward and Smith will have more than 70 attorneys and north of 200 support staff combined in Greenville, New Bern, Wilmington and Raleigh.

"With established offices in Wilmington and Greenville, two growing technology centers in eastern North Carolina, Ward and Smith will also expand the geographic reach of our technology practice," says Verdonik.

http://www.d2vlaw.com