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Court order seeks to strip Madoff of $171 billion
Lawyer Blog News | 2009/06/29 10:35
Bernard Madoff would be stripped of all his possessions under a $171 billion forfeiture order handed down only days before prosecutors seek to put the disgraced financier away in prison for the rest of his life.

U.S. District Judge Denny Chin entered the preliminary order Friday, ruling that Madoff must give up his interests in all property, including real estate, investments, cars and boats.

The forfeiture represents the total amount that could be connected to Madoff's fraud, not the amount stolen or lost, and the order made clear that nothing prevents other departments or entities from seeking to recover additional funds.

A call to Madoff's lawyer, Ira Sorkin, after hours Friday was not immediately returned. In a court filing in March, Sorkin said the government's forfeiture demand of $177 billion was "grossly overstated — and misleading — even for a case of this magnitude."

The 71-year-old Madoff pleaded guilty in March to charges that his exclusive investment advisory business was actually a massive Ponzi scheme. Federal prosecutors say Madoff orchestrated perhaps the largest financial swindle in history.

Acting U.S. Attorney Lev Dassin, who released a copy of the order Friday night, plans to seek a 150-year prison term at Madoff's sentencing Monday. Sorkin has argued in court papers for a 12-year term.

According to Friday's order, the government also settled claims against Madoff's wife. Under the arrangement, the government obtained Ruth Madoff's interest in all property, including more than $80 million-worth that she had claimed was hers, prosecutors said. The order left her $2.5 million in assets.



Court: AG must go to court to probe nat'l banks
Lawyer Blog News | 2009/06/29 10:34
The Supreme Court says state attorneys general can't issue their own subpoenas in investigations against national banks. However, the high court in a decision on Monday said that an attorney general can get a court to issue subpoenas in an investigation into those financial institutions.

The state of New York wanted the Supreme Court to overturn a federal appeals court decision that blocks states from investigating the lending practices of national banks with branches within its borders. It was supported by the other 49 states.



Ex-Surgeon General Novello pleads guilty in NY
Court Feed News | 2009/06/29 10:31
Former Surgeon General Antonia Novello pleaded guilty Friday to a felony in a deal with prosecutors to avoid prison time for forcing state employees to handle personal chores when she was New York's health commissioner.

The plea deal calls for 250 hours of community service at an Albany health clinic, $22,500 in restitution and a $5,000 fine. Novello faced up to 12 years in prison if convicted on all charges. She was accused of costing taxpayers $48,000 by misusing the workers.

She pleaded guilty to filing a false document involving a worker's duties.

Investigators said Novello, originally from Puerto Rico, used state workers to chauffeur her on shopping trips and rearrange heavy furniture at her apartment while she was New York's top health official. She now lives in Florida.

In court Friday, Albany County Judge Stephen Herrick asked Novello if she had intended to defraud the state.



Justices Rule Lab Analysts Must Testify on Results
Court Feed News | 2009/06/26 15:28

Crime laboratory reports may not be used against criminal defendants at trial unless the analysts responsible for creating them give testimony and subject themselves to cross-examination, the Supreme Court ruled Thursday in a 5-to-4 decision.

The ruling was an extension of a 2004 decision that breathed new life into the Sixth Amendment’s confrontation clause, which gives a criminal defendant the right “to be confronted with the witnesses against him.”

Four dissenting justices said that scientific evidence should be treated differently than, say, statements from witnesses to a crime. They warned that the decision would subject the nation’s criminal justice system to “a crushing burden” and that it means “guilty defendants will go free, on the most technical grounds.”

The two sides differed sharply about the practical consequences of requiring testimony from crime laboratory analysts. Justice Anthony M. Kennedy, writing for the four dissenters, said Philadelphia’s 18 drug analysts will now each be required to testify in more than 69 trials next year, and Cleveland’s six drug analysts in 117 trials each.



Court says strip search of Ariz. teenager illegal
Legal Career News | 2009/06/26 15:28
The Supreme Court ruled Thursday school officials violated an Arizona teenage girl rights by strip-searching her for prescription-strength ibuprofen, saying U.S. educators should not force children to remove their clothing unless student safety is at risk.

In an 8-1 ruling, the justices said that Safford Middle School officials violated the Fourth Amendment ban on unreasonable searches with their treatment of Savana Redding. However, the court also ruled that the Arizona school officials cannot be held financially liable for their search.

Redding was 13 when the educators in rural eastern Arizona conducted the search. They were looking for pills — the equivalent of two Advils. The district bans prescription and over-the-counter drugs and the school was acting on a tip from another student.

The school's search of Redding's backpack and outer clothes was permissible, the court said. But the justices said that officials went too far when they asked to search her underwear.



Legal, insurance fees mounting for Metro
Lawyer Blog News | 2009/06/26 15:23

The deadly Metro crash that killed nine people and injured more than 70 is already having a financial effect on the transit system, with legal fees and insurance premiums mounting.

The first of what is expected to be many lawsuits was filed two days after Monday’s crash, with the parents of 15-year-old Davonne Flanagan, who broke a leg, seeking $950,000 from the transit system because of what the suit called its negligence in maintenance and personnel training.

Washington-area lawyers say they have been contacted about representing other victims, and warn there’s no ceiling for the coming onslaught of claims.

“At a minimum, for each of the decedents there will be a nexus of $1 million a piece on them - and that’s conservative,” said lawyer Manuel R. Geraldo, who has been practicing law locally for 30 years.

The District, where the crash occurred, has no cap on damages for personal injury cases, making the cases potentially costly, said Frank Kearney, a D.C. lawyer. Had the crash occurred just a short distance away in Maryland, he said, Metro’s liability in the personal injury cases would be capped at $200,000.

Once the Metro cases go to court, District judges must decide whether Metro is liable and how much money plaintiffs deserve.

“It clearly looks like liability will not be in dispute,” Geraldo said. “The argument is going to be over the nature and extent of the injuries.”

But Robert Enderle, a lawyer with Aschcraft & Gerel, said that if it turned out that faulty equipment was to blame for the crash, the Washington Metropolitan Area Transit Authority could try to blame its manufacturers.

Such lawsuits are typically covered by insurance coverage. But Metro’s board learned Thursday the transit system’s insurance policy was set to expire at midnight Tuesday. Normally the agency would have been able to renew the policy with set costs, but Chief Financial Officer Carol Kissal said the crash would end those rates and bring on higher but yet to be determined insurance premiums.



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