A federal appeals court has ordered two executives convicted in a $1.9 billion corporate fraud case to be resentenced.

The 6th U.S. Circuit Court of Appeals in Cincinnati said Wednesday the government hadn't proved Donald Ayers and Roger Faulkenberry were guilty of money laundering. Their convictions of conspiracy, securities fraud and wire fraud remain in place.

Faulkenberry is serving 10 years in prison, and Ayers is serving 15 years. They were convicted in 2008 with four other top executives from National Century Financial Enterprises, a Columbus health care financing company. Federal prosecutors likened the case to the Enron scandal.

The court said the government didn't prove that advances Faulkenberry and Ayers made to medical companies were designed to conceal the money's source.

A Springdale woman has been sentenced to six months of work release and fined $2,000 in the heat stroke deaths of her two children who had locked themselves in the trunk of a car.

Twenty-five-year-old Katrina Markley pleaded guilty Monday to two misdemeanor counts of third-degree endangering the welfare of a minor in the deaths of 5-year-old Curtis Markley and 4-year-old Virginia Markley. She was sentenced to six months of work release that involves supervised community service work during the day and nights spent in a barracks-style building at the county jail.

Police say Markley admitted she was on the computer most of the day when her children locked themselves in the trunk of a car in June 2009 and died of heat stroke.

A South Texas man accused of beheading his common-law wife's three children was found guilty of capital murder Monday at his second trial.

A state appeals court had overturned John Allen Rubio's previous conviction and death sentence in 2007, saying the children's mother had wrongly been allowed to testify. A second jury deliberated for about three hours before convicting him again.

Rubio, 29, of Brownsville, had pleaded not guilty by reason of insanity, and his defense attorneys had argued that the sheer brutality of the crime showed he was not in his right mind. Defense attorney Nat Perez described it during his closing argument as "overkill."

Evidence showed Rubio made increasingly ferocious attempts to kill the children, strangling and stabbing them, then finally cutting off their heads. Rubio initially said he killed the children, all under age 4, because they were possessed.

Police discovered the bodies of 3-year-old Julissa Quesada, 14-month-old John E. Rubio and 2-month-old Mary Jane Rubio on March 11, 2003, in a squalid Brownsville apartment.

Rubio was convicted on four counts of capital murder. Each death was covered by one count, and the fourth count included all of them.

The trial will now move to a punishment phase, in which prosecutors plan to again seek the death penalty.

US Airways has asked a federal judge to resolve a seniority dispute involving its pilots.

Executives with the Tempe, Ariz.-based carrier said Monday's legal action in U.S. District Court in Phoenix is called a complaint for declaratory relief. They say the dispute has significantly stalled efforts to negotiate a joint contract covering the 4,000 pilots joined together by the merger of America West and US Airways five years ago.

The airline's pilots union says it will vigorously oppose the company's move. The US Airline Pilots Association says the court has no jurisdiction in labor contract negotiations.

Seniority is important to pilots and flight attendants because it dictates their schedules, pay, vacations and promotions.

A former New Hampshire high school teacher charged with e-mailing nude photographs of herself to a 15-year-old student faces a court hearing.

Forty-one-year-old Melinda Dennehy of Hampstead is scheduled to appear Monday in Derry District Court on a felony charge of indecent exposure. She was arrested in March after the photos were found circulating around Londonderry High School. She resigned three weeks later.

Police also allege Dennehy also text-messaged the student, offering sex.

Republican Sen. Richard Lugar says he'll vote to confirm Elena Kagan as a Supreme Court justice.

The Indiana Republican is the second in the GOP to announce he's breaking with his party to back President Barack Obama's nominee to succeed retired Justice John Paul Stevens.

Lugar says he's carefully followed Kagan's confirmation hearing testimony and the debate about her nomination, including recommendations from his constituents, and concluded that she is clearly qualified to serve on the high court.

Democrats have more than enough votes to confirm Kagan. Sen. Lindsey Graham of South Carolina on Tuesday became the first Republican to say he'll join them. A few others are expected to follow suit.