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Lawyer unraveling Ponzi scheme seeks extension
Headline News | 2011/04/20 11:53

The attorney assigned to unravel a Connecticut-based investment pyramid scheme says it will take longer than expected to account for the money, including hundreds of millions of dollars invested on behalf of a pension fund for Venezuelan state oil workers.

The court-appointed receiver, John Carney, is investigating the financial dealings of Francisco Illarramendi, a Venezuelan-American accused of taking money from hedge funds he operated in Stamford, Conn., for personal use. U.S. prosecutors in Connecticut have called it the state's biggest white-collar federal prosecution.

Carney on Monday asked for a three-month deadline extension to Sept. 30, saying the task has been complicated by gaps in the paper trail and other challenges.

"The magnitude and fraudulent nature of the transactions, the lack of meaningful documentation, the involvement of foreign entities, and the sheer quantity of data all necessitate additional time," Carney, of the New York law firm Baker & Hostetler, wrote in the court filing.

The office of the U.S. district judge handling the case, Janet Bond Arterton, said the request was pending Tuesday.

Illarramendi, 42, of New Canaan, pleaded guilty on March 7 to criminal charges including several counts of fraud and conspiracy to obstruct justice. He faces up to 70 years in prison at a sentencing hearing that remains to be scheduled.



Dallas steak house founder pleads guilty to theft
Criminal Law Updates | 2011/04/20 11:35

The founder of a Dallas steak house has pleaded guilty to swindling an investor out of $300,000.

Bob Sambol, founder of Bob's Steak & Chop House, pleaded guilty late Monday to felony theft.

Sambol has agreed to repay the investor over money the restaurant operator received in 2007. Sambol faces 10 years of deferred adjudication probation. No sentencing date was immediately set.

The Dallas Morning News reports the charges stem from an investment Sambol accepted to expand one of his restaurants. Sambol originally said the indictment was about "a business deal gone bad."



Fla. man pleads guilty to gouging wife's eyes
Criminal Law Updates | 2011/04/20 09:35

A man who gouged out his eyes while in Miami-Dade County jail has been sentenced to 25 years in prison for gouging his wife's eyes after he was released.

Eugene Roman pleaded guilty Monday to aggravated battery and kidnapping charges in the May 2006 attack. Roman's estranged wife was left blind in her right eye and partially blind in her left.

Roman was also sentenced to 10 years probation. The 50-year-old cried in court and asked for forgiveness.

His wife told The Miami Herald she wanted him kept away from her and her children.

Roman gouged out his eyes while serving a 364-day sentence for attacking his wife and police officers inside the couple's home in 2005. He was released early when his wife agreed to take him back.



Community Health makes all-cash bid for Tenet
Business Law Info | 2011/04/19 11:05
Hospital operator Community Health Systems Inc. on Monday revised its $3 billion offer for rival Tenet Healthcare Corp. to an all-cash bid.

Community Health is now offering $6 per share in cash. In December, it had gone public with a bid of $5 per share in cash and $1 per share in stock. At the time, the offer was a premium of about 40 percent to the Dallas company's shares.

But Tenet's board rejected that offer, and adopted a "poison pill" measure to fend off the bid.

Tenet's shares have recently been trading above $6.

But the company said Monday it will review the revised offer and make a recommendation. It said shareholders should take no action for now.

Tenet shares fell 26 cents, or 3.9 percent, to $6.40 in afternoon trading while Community Health shares dropped $1.74, or 5.5 percent, to $30.16 after falling as much as 14.3 percent earlier in the session.

Community Health Systems runs 130 hospitals in 29 states, and focuses on fast-growing and non-urban markets. Tenet runs 50 hospitals spread across 11 states, and most of its facilities are in urban and suburban communities.


Media ask court to unseal gay marriage trial tapes
Legal Career News | 2011/04/19 10:07
Media organizations are joining lawyers for two-same-sex couples in urging a federal appeals court to release videotapes of a lower court trial on California's gay marriage ban.

The 13 organizations, which include The Associated Press, argued in a motion filed Monday with the 9th U.S. Court of Appeals that the videos are court records that the First Amendment requires to be open to the public.

Sponsors of voter-approved Proposition 8 asked the 9th Circuit last week to keep the tapes sealed and to order the trial's presiding judge to return his personal copies.

The move came after now-retired Judge Vaughn Walker, who declared Proposition 8 unconstitutional, used a brief segment of the video in several public talks.


Democrats criticize hiring of firm for House remap
U.S. Legal News | 2011/04/18 16:21
Democratic lawmakers are raising complaints about Republican House Speaker Jim Tucker's decision to hire a law firm with national GOP ties to submit the state House remap to federal officials.

The head of the House redistricting committee, Democratic Rep. Rick Gallot, said Friday the choice creates the appearance of impropriety because the firm had given the Republican delegation advice about redistricting.

The Senate is using its staff to do its redistricting submission.

Tucker has hired Washington, D.C.-based Holtzman Vogel PLLC to guide the redesign of the 105 House districts to the U.S. Justice Department for review under the Voting Rights Act.

Tucker says he chose a firm with the expertise needed for the complex legal work.

The managing partner of Holtzman Vogel is chief counsel to the Republican National Committee.


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