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Today's Date: U.S. Attorney News Feed
Gonzales gave firing authority to aides
Lawyer Blog News | 2007/05/02 13:28

An internal US Department of Justice order disclosed Monday by the National Journal gave two top aides to Attorney General Alberto Gonzales wide discretion to fire and hire political appointees within the Department who were not subject to Senate confirmation. The memo, dated March 2006, authorized then-Gonzales chief of staff D. Kyle Sampson and Gonzales's White House liaison, a post later filled by Monica Goodling, "to take final action in matters pertaining to the appointment, employment, pay, separation, and general administration" of almost all non-civil service DOJ employees. Sampson  and Goodling both resigned earlier this year in the midst of controversy over their roles in the firings of eight US Attorneys for allegedly political reasons.

An early version of the March order had authorized the officials to act without even having to consult the Attorney General, but the wording of the instrument was later revised at the urging of the DOJ Office of Legal Counsel, which was concerned about the constitutionality of such broad-brush delegation of power. An unnamed "senior executive branch official" quoted by the National Journal said of the order that it was "an attempt to make the department more responsive to the political side of the White House and to do it in such a way that people would not know it was going on." Senate Judiciary Committee Chairman Patrick Leahy (D-VT) expressed similar concern over the root strategy apparently reflected in the order, saying in a statement Monday:

This development is highly troubling in what it seems to reveal about White House politicization of key appointees in the Department of Justice. The mass firing of U.S. attorneys appeared to be part of a systematic scheme to inject political influence into the hiring and firing decisions of key justice employees. This secret order would seem to be evidence of an effort to hardwire control over law enforcement by White House political operatives.

Leahy called for the order and its supporting materials to be formally turned over to the Senate and House Judiciary committees looking into the US Attorney firings.



Law firm partner pleads guilty to tax evasion
Lawyer News | 2007/05/02 10:32

A Dallas law firm partner pleaded guilty Tuesday to tax evasion and faces prison time and fines. George Bryan McDonald, a partner with McDonald and Cole LLP, admitted skimming a portion of the settlements due clients of the personal injury law firm. His partner, David Cole pleaded guilty to similar charges last week, U.S. Attorney Richard Roper said. The two wrongfully took $61,457 in 2001 and $77,516 in 2002 and failed to report the income on the firm's tax returns.

Mr. McDonald faces a maximum of 18 months in prison as part of his plea deal; Mr. Cole faces up to 2 years of probation. Both face penalties from the Internal Revenue Service. They will be sentenced Aug. 15.



Dr. Hinder Joins Hogan & Hartson's Berlin Office
Law Firm News | 2007/05/01 23:42





Hogan & Hartson LLP announced today that Dr. Jens-Uwe Hinder will strengthen the firm’s Berlin office. Dr. Hinder joins Hogan & Hartson from Hammonds, where he has practiced as a partner and the head of the tax practice since 2002. An experienced international transactions partner, Hinder will play an important role in the further expansion of Hogan & Hartson’s national and international tax practice in Germany.

Dr. Hinder advises national and international businesses and has extensive experience in the structuring of real estate transactions. Additionally, he focuses on international tax planning, advising on tax matters related to M&A transactions, tax structuring of funds, and settlement (transfer) prices.

“We are delighted that Dr. Hinder is joining our Berlin office,” said Dr. Gernod Meinel, managing partner of the firm’s Berlin and Munich offices. “Due to the constant increase of our advisory activities related to international transactions, we are experiencing an increased demand for integrated tax advice. After strengthening our tax practice in Munich with the addition of Sebastian Kost as well as expanding our private equity practice with Dr. Uwe Steininger, we have now gained a highly qualified partner that is the ideal addition to our transactional team in Germany.”

“By moving to Hogan & Hartson, I have the opportunity to further develop the tax practice of a global law firm and to expand it on an international level. In addition to this attractive challenge, I have been inspired by the professional competence of the Hogan & Hartson team as well as the friendly atmosphere at this firm,” commented Dr. Hinder.

Dr. Hinder, who is both an attorney and a tax consultant, studied at the universities of Bonn and Freiburg and received his doctorate degree at the University of Münster. His legal career started 1991 at Brandi, Dröge, Pilz & Heuer in Detmold, Germany. After completing his Master of Laws degree at the University of San Diego and the second state exam in law 1995, Dr. Hinder worked at KPMG, followed by joining the law firm of Schmidt Hampel-Dorrmann Schmidt in 1999 and joining Hammonds in 2002.


Man pleads guilty in slaying of gay teen
Court Feed News | 2007/05/01 23:23
One of three defendants accused of killing a teenager because he was gay has pleaded guilty to capital murder, prosecutors said. As required by state law, jurors will still hear testimony in an abbreviated trial and a judge can sentence Christopher Gaines, 22, to death or life in prison without parole. Gaines likely will get life in prison because of the plea deal he entered on Monday, prosecutors said.

Authorities have said Gaines and two others attacked Scotty Joe Weaver at his trailer in 2004.

Prosecutors said they beat, strangled and cut the 18-year-old before setting his body afire, and the extent of Weaver's injuries pointed to the attackers' distaste for his sexual orientation.

Gaines will not testify at the trial set to start May 7, but jurors will watch a video recording of his confession, defense attorney J. Clark Stankoski said. Lawyers have not said whether Gaines will testify against his two co-defendants, Robert Porter and Nichole Kelsay, who are scheduled to be tried separately later this year.

The slaying drew interest from gay rights groups, and hundreds of mourners attended a vigil for Weaver in Mobile after the killing. Anti-gay groups picketed outside the Crossroads Church of God, where Weaver's funeral was held.



Andrea S. Kramer to Receive Founders Award
Law Firm News | 2007/05/01 22:36





On Wednesday, May 3, 2007, Andrea S. Kramer, a McDermott Will & Emery partner based in the Chicago office, will be presented with the first "Founders Award" from The Women's Treatment Center (TWTC).  Ms. Kramer, a founding member and board chair of TWTC, has been supporting TWTC for 16 years.  During her tenure, TWTC has expanded its programs and services to further erase the barriers to treatment of women with children.

Ms. Kramer has practiced law for nearly 30 years.  She is a member of McDermott’s Tax Department; head of its Financial Products, Trading and Derivatives Group; and co chairs its Energy Services Group.  She is active in Firm management, serving as chair of the Firm’s Gender Diversity Committee and a member of its Management Committee.  In addition to her many legal accomplishments and her family life, Ms. Kramer has found the time and energy to be extremely active in community and charitable activities.  Earlier this year in recognition of her outstanding community service, the Anti-Defamation League awarded her its Women of Achievement Award, and the Cook County Board of Commissioners awarded her its Unsung Heroine Award in 2004.  She serves on the board of DanceArt.  She recently co-founded the Women's Leadership and Mentoring Alliance and plays a leading role in the Chicago Bar Association's "Call to Action," designed to increase opportunities for women lawyers.

The mission of TWTC is to provide women with a continuum of care, recovery tools, and parenting skills to maintain a sober lifestyle as they rebuild their lives and futures and mend the bonds with their families.  The scope of this treatment includes social services, medical care and mental health services, which are offered without regard to race, creed, color, sexual orientation, disability, national origin or ability to pay.  TWTC is one of the few substance abuse programs in the United States that can accommodate children in residential treatment, making TWTC particularly responsive to the needs of chemically dependent mothers.  For more information, visit www.womenstreatmentcenter.org.



Federal Court Shuts Down So-Called “Warehouse Bank”
Lawyer Blog News | 2007/05/01 22:26

A federal court in Seattle has shut down a nationwide “warehouse banking” scheme whose promoter falsely promised customers they could legally hide their income, assets, and identities from the Internal Revenue Service, the Justice Department announced today. The warehouse bank, known as Olympic Business Systems (OBS), is operated by Des Moines, Wash., resident Robert Arant. The court order, called a preliminary injunction, was signed on April 27 by Judge Marsha J. Pechman of the U.S. District Court for the Western District of Washington. A temporary restraining order freezing Olympic’s assets was previously signed on April 17 by Chief Judge Robert L. Lasnik. The court orders were initially filed under seal, but the court today ordered them unsealed.

In papers filed in support of obtaining the injunction, the government alleged that Olympic deposited almost $28 million of customer funds into accounts that OBS maintained in its own name at commercial banks. Olympic allegedly used the funds to pays customers’ bills and expenses while promising to leave no paper trail.

Judge Lasnik’s order held that Arant “is or should be aware that courts have repeatedly held that warehouse banks are tax evasion schemes.” A California federal court in 2004 permanently closed a similar warehouse bank. Details about that case are available at http://www.usdoj.gov/tax/txdv04785.htm. In 2005 a federal court in Oregon sentenced operators of a warehouse bank to prison, after their criminal convictions. Details are available at http://www.usdoj.gov/tax/txdv05070.htm.

WWW.USDOJ.GOV



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