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Attorney General to Argue at High Court
Headline News | 2008/03/13 17:33
Attorney General Michael Mukasey will argue a case before the Supreme Court this month, honoring a custom that his two predecessors ignored. Mukasey will be the first attorney general since Janet Reno in 1996 to represent the government at the high court. Neither John Ashcroft nor Alberto Gonzales, President Bush's first two attorneys general, argued a case at the court.

Mukasey will ask the justices on March 25 to reinstate the conviction of would-be millennium bomber Ahmed Ressam on a charge that an appeals court threw out, Justice Department spokesman Peter Carr said.

The 66-year-old Mukasey is a former federal judge who presided over high-profile terrorism trials in New York.

The San Francisco-based 9th U.S. Circuit Court of Appeals overturned just one of the nine counts on which Ressam was convicted for plotting to bomb Los Angeles International Airport around Jan. 1, 2000. The charge in question is carrying explosives during the commission of another serious crime.

The appeals court said the law required prosecutors to show the explosives were carried "in relation to" the felony, which in this case was lying on a Customs form.

Mukasey will urge the justices to reverse the appeals court, in part because the ruling could make it harder to prosecute terrorists. The government argues that the law means a defendant must be carrying the explosives at the same time as he commits another crime.

Ressam's lawyer, Tom Hillier, said Mukasey's involvement "doesn't change the question before the court."

"Same case, same facts," said Hillier, the federal public defender in Seattle. "Attorney General Mukasey has had a distinguished career as a federal judge and before that as a prosecutor. He'll do a great job. He knows his stuff."

Reno was on the winning end of the case in which she argued, in support of Maryland, that police can order passengers and drivers to get out of vehicles during traffic stops.

Griffin Bell did not fare as well when he took on a controversial case in the Carter administration. Bell argued unsuccessfully against letting an endangered fish, the tiny snail darter, stop a federal dam project.

Only about one-third of the court's cases this term have been decided. The most important cases often are announced in the final days in late June.

But of the 18 majority opinions handed down so far, eight justices have written at least two each; Justice Samuel Alito has written none.

Newer justices often take a little longer to churn out their work, but Alito's first opinion last term came in December for a unanimous court.

Alito's paltry output could be a result of nothing more than the wait for dissenters to file their opinions.

The more contentious rulings typically come later. Justices need time to read drafts of their colleagues' work and make changes based on the input. It is not known what opinions Alito is writing, but most of the easy cases from the term's early days have been decided.

This all could change next week when the justices return to the bench and are likely to issue decisions.

Alito has not been completely silent. He wrote dissenting opinions in two cases involving a judge's discretion to be lenient toward defendants in drug cases.



Brodsky & Smith, LLC Announces Class Action
Class Action News | 2008/03/13 15:33

Law offices of Brodsky & Smith, LLC announces that a class action lawsuit has been filed on behalf of all persons who purchased the common stock of MF Global, LTD. ("MF Global" or the "Company") (NYSE: MF) in its Initial Public Offering on July 19, 2007 and on the open market through February 28, 2008 (the "Class Period"). The class action lawsuit was filed in the United States District Court for the Southern District of New York.

The Complaint alleges that defendants violated federal securities laws by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of MF Global.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you are a MF Global shareholder you have certain rights. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you want to discuss your legal rights, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Evan J. Smith, Esquire or Marc L. Ackerman, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.



Paulson Urges Tighter Mortgage Oversight
U.S. Legal News | 2008/03/13 13:27
Treasury Secretary Henry Paulson said Thursday that a presidential working group wants stronger regulatory oversight of mortgage lenders to avert the kind of credit crisis that is dragging the economy down.

In a new Bush administration initiative that Paulson said is not about "finding excuses and scapegoats," a presidential working group set up in the wake of the 1987 stock market crash is calling for a series of actions designed to avert the kind of chilling housing and credit crunches that are threatening to throw the nation into recession — if it isn't there already.

"The objective here is to get the balance right — regulation needs to catch up with innovation and help restore investor confidence but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it," said Paulson, who heads the working group.

One recommendation calls for federal and state regulators to strengthen oversight of mortgage lenders and another urges state financial regulators to implement strong nationwide licensing standards for mortgage brokers, according to the group's report, released Thursday.



German Court Upholds Incest Law
Legal World News | 2008/03/13 12:31
Germany's highest court has upheld a law that makes incest a criminal offense, rejecting an appeal by a man who was sentenced to prison after fathering four children with his sister.

The Federal Constitutional Court said Thursday it has ruled that the state is within its rights to cite "the protection of family order against the damaging effects of incest ... and the avoidance of serious genetic illnesses" in outlawing incest.

The ruling followed a complaint by a 31-year-old man from eastern Germany, who has been identified only as Patrick S. He received a 2 1/2 year prison sentence for incest in 2005 but has been free pending the supreme court ruling.

His sister, Susan K., who is now in her early 20s, was placed under the supervision of social services.

The man had been given up for adoption at age 4 and met his birth-mother for the first time in 2000, at which point he also first met his sister. He and his sister then had four children.

The man's lawyer has argued that there is no reason why two people who love each other should not be allowed to live together — purely because they are siblings.

However, the constitutional court ruled that sexual relations between siblings "do not affect them exclusively, but also can have an effect on family and society, and have consequences for children who arise from the relationship."

The court said one of the judges who considered the case dissented in the Feb. 26 ruling, arguing that the ban was disproportionate.



Corinthian Colleges Faces Purported Class Action
Court Feed News | 2008/03/13 11:35
Corinthian Colleges Inc. (COCO) and its Corinthian Schools Inc. unit face a purported class action lawsuit alleging the schools made and continue to make misleading statements regarding their graduates' employment prospects and starting salaries.

The suit against the Santa Ana, Calif., for-profit education provider also charges that Corinthian's statements claiming their programs are approved by the California Department of Education are untrue.

Carnegie Student Loans and SLM Corp.'s (SLM) Sallie Mae Inc. were also named as defendants in the suit.

The lawsuit was filed in Santa Clara Superior Court on behalf of graduates of the Medical Assistant vocational programs offered at Bryman College, now named Everest College.

According to attorney John L. Fallat, who filed the suit, Corinthian settled a class action suit in July over allegations regarding statewide California approval of certain of its programs.

Representatives from Corinthian and Sallie Mae weren't immediately available for comment.



Gov. Spitzer resigns in wake of prostitution scandal
Law & Politics | 2008/03/12 16:31
Gov. Eliot Spitzer has decided to resign, completing a stunning fall from power after he was nationally disgraced by links to a high-priced prostitution ring, a top state official said Wednesday.

Spitzer was scheduled to announce his resignation midday, according to a second top Spitzer staffer. The officials spoke to The Associated Press on condition of anonymity because the announcement had not yet been made.

Spitzer and his wife, Silda, left their apartment around 11 a.m. and got into a black SUV to take them to his office. Cameras aboard news helicopters tracked the movement of Spitzer's three-vehicle motorcade from his apartment on the Upper East Side to his office in midtown Manhattan.

Spitzer would be replaced by Lt. Gov. David Paterson, who will become New York's first black governor.

The scandal erupted Monday when allegations surfaced that Spitzer, a 48-year-old married man with three teenage daughters, spent thousands of dollars on a call girl named Kristen at a swanky Washington hotel on the night before Valentine's Day.

"I have acted in a way that violates my obligations to my family and violates my — or any — sense of right and wrong," the governor said at a news conference with his wife at his side. "I apologize to the public, whom I promised better."

Calls for his resignation came immediately. Republicans began talking impeachment if he didn't step aside. Meanwhile, Spitzer stayed holed up in his Manhattan apartment, where he was reportedly weighing his options, including waiting to use resignation as a bargaining chip with federal prosecutors to avoid indictment.

The case involving Spitzer started when banks noticed frequent cash transfers from several accounts and filed suspicious activity reports with the Internal Revenue Service, a law enforcement official told The Associated Press. The accounts were traced back to Spitzer, leading public corruption investigators to open an inquiry.

A law enforcement official said Tuesday that Spitzer had spent tens of thousands of dollars with the call-girl service Emperors Club VIP. Another official said the amount could be as high as $80,000.

Still another law enforcement official said investigators found that during the tryst with Kristen, Spitzer used two rooms at Washington's Mayflower Hotel — one for himself, the other for the prostitute. Sometime around 10 p.m., Spitzer sneaked away from his security detail and made his way to her room, the official said.

According to an affidavit, a federal judge approved wiretaps on the escort service's telephone in January and February. FBI agents in Washington had the Mayflower under surveillance when Spitzer was in town, a senior law enforcement official said.

The officials spoke to the AP on condition of anonymity because of the sensitivity of the case.

Spitzer, a first-term Democrat, built his political reputation on rooting out government corruption, and made a name for himself as attorney general as crusader against shady practices and overly generous compensation. He also cracked down on prostitution.

He was known as the "Sheriff of Wall Street." Time magazine named him "Crusader of the Year," and the tabloids proclaimed him "Eliot Ness." The square-jawed graduate of Princeton University and Harvard Law was sometimes mentioned as a potential candidate for president.

He rode into the governor's office with a historic margin of victory on Jan. 1, 2007, vowing to stamp out corruption in New York government in the same way that he took on Wall Street executives with a vengeance while state attorney general.

His term as governor has been fraught with problems, including an unpopular plan to grant driver's licenses to illegal immigrants and a plot by his aides to smear his main Republican nemesis. The prostitution scandal, some said, was too much to overcome.

Barely known outside of his Harlem political base, Paterson, 53, has been in New York government since his election to the state Senate in 1985. He led the Democratic caucus in the Senate before running with Spitzer as his No. 2.

Though legally blind, Paterson has enough sight in his right eye to walk unaided, recognize people at conversational distance and even read if text is placed close to his face. While Spitzer is renowned for his abrasive style, Paterson has built a reputation as a conciliator.

At a morning news conference, Senate Majority Leader Joseph Bruno, Spitzer's chief rival, said he had not yet heard from the governor but that he was moving on with the business of the state. Lawmakers were set to vote on budget bills Wednesday afternoon.

"We are going to partner with the lieutenant governor when he becomes governor," said Bruno. "David has always been very open with me, very forthright ... I look forward to a positive, productive relationship."

Bruno, though the next highest-ranking official, does not become lieutenant governor upon Paterson's ascension to governor. The lieutenant governor's office would remain vacant until the next general election in 2010 under state law. However, whenever Paterson is out of state or if he were to become incapacitated, Bruno would be acting governor.



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