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AIG, Treasury offering 300M shares worth $9B
Business Law Info | 2011/05/13 09:20
Bailed-out global insurance company American International Group Inc. and the federal government are offering to sell a total of 300 million AIG shares to the public.

The stock sale would be a big step by the government toward disentangling itself from the company. The government stepped in to rescue AIG from collapse with $182 billion in 2008 — the biggest bailout of the financial crisis.

AIG and the government didn't specify a price for the shares in a regulatory filing on Wednesday. But 300 million shares of AIG were worth about $8.89 billion at Tuesday's closing price of $29.62.


Phoenix realtor pleads guilty to mortgage fraud
Legal Career News | 2011/05/12 15:25
A Phoenix real estate agent has pleaded guilty in a mortgage fraud scheme that costs lenders almost $10 million.

Federal prosecutors said 31-year-old Jason Thomas Williams pleaded guilty Monday to charges of conspiracy to commit wire fraud.

It was unclear Wednesday when Williams will be sentenced. Prosecutors said he could be facing up to a 30-year prison term.

Three others charged in the same case also have entered guilty pleas while the remaining defendant is scheduled for trial in July.

Prosecutors said that from September 2005 through September 2007, Williams facilitated the submission of mortgage loan applications for unqualified straw buyers that contained false information.

They said Williams and the others concealed cash kickbacks to the straw buyers from lenders.


Raided pot providers sue government
Lawyer Blog News | 2011/05/12 13:22

Two medical marijuana providers have accused the U.S. government of civil rights violations in what may be the first lawsuit of its kind in response to a federal crackdown on pot operations across the nation.

The owners of Montana Caregivers Association and MCM Caregivers claim federal raids on pot businesses across Montana in March were unconstitutional, exceeded the government's authority and pre-empted the state's medical marijuana law.

Since then, federal agents have raided two Washington state dispensaries, and federal prosecutors have sent letters of warning to leaders in most of the 15 states with medical marijuana laws.

The lawsuit was filed Tuesday in U.S. District Court in Missoula against the government, Department of Justice, Attorney General Eric Holder and U.S. Attorney for Montana Michael Cotter.

The plaintiffs claim the intent of the raids was to shut down the medical pot industry.

"The federal government has made clear its intent to threaten and eventually eliminate any business or enterprise related to the medical use of marijuana," Christopher Williams of the Montana Caregivers Association and Randy Leibenguth of MCM Caregivers claimed in the lawsuit.

The Department of Justice did not comment when contacted Wednesday. Cotter spokeswoman Jessica Fehr also declined comment, saying the U.S. attorney's office had not been served with the lawsuit.



Worldwide interest as Canada drug program in court
Lawyer Blog News | 2011/05/12 12:21

The woman stands close to a mirror fingering her throat. Then, sweeping back a mane of red hair, she injects heroin into her jugular vein. A nurse keeps an eye on her from behind.

The scene unfolds in North America's first and only legal injection site, promoted by its founders as a safe, humane facility for drug abusers, now facing a court challenge from a government that sees it as a facilitator of drug abuse.

Defenders of the taxpayer-funded site, in a seedy, drug-infested district of Vancouver, British Columbia, say it is a providing a form of health care, and that health care is a provincial matter under Canada's constitution. The federal government counters that its writ trumps provincial rights because heroin is a federally banned substance.

The case opens before the Supreme Court of Canada in Ottawa on Thursday, and has drawn international attention. Insite, as the Vancouver center is called, is the only facility of its kind in Canada. More could open if the top court agrees Insite is legal.

As of 2009, there were 65 injection facilities in 27 cities in Canada, Australia, and western Europe, according to the Canadian Medical Association Journal. The World Health Organization has called them a "priority intervention" in slowing the spread of AIDS via infected needles.



Mom in Conn. school residency case back in court
Court Feed News | 2011/05/12 11:21

A homeless single mother charged with intentionally enrolling her son in the wrong Connecticut school district asked prosecutors on Wednesday to drop the case so school officials can handle the matter administratively.

Tanya McDowell deserves to be treated the same as 26 other families who were caught this year for doing the same thing in Norwalk schools, said her lawyer, Darnell Crosland.

The other out-of-town children who were put into Norwalk schools were sent back to their hometown districts, but none of their parents were arrested.

McDowell's case and another mother's nine-day incarceration recently in Ohio have raised questions about uneven enforcement of school residency rules nationwide, particularly as many school districts are cracking down in tight budget times.

In the Ohio case, nearly 50 out-of-town parents were caught sending their children to a high-performing suburban school district, but only an Akron resident — like McDowell, a low-income, black single mother — was criminally charged.



Court rules Pakistan's president can't lead party
Legal World News | 2011/05/12 09:20

A top Pakistani court has ruled that President Asif Ali Zardari must relinquish his position as chief of the country's ruling party.

The Lahore High Court ruled on Thursday on a petition filed by a lawyer who had argued that Pakistan's constitution prohibits the president to also head a political party.

A spokeswoman for Zardari says she had not seen the ruling and declined comment.

It's unclear what impact the ruling will have, but it will likely to put Zardari on the defensive. His Pakistan's People's Party is seen as very unpopular and has struggled to keep its ruling coalition intact.

Zardari could ignore the ruling or appeal it, which could stretch out the proceedings for many more months.



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