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Ex-compliance officer at Conn. firm pleads guilty
Court Feed News | 2009/07/22 16:14
The former chief compliance officer at a Connecticut securities company has pleaded guilty to conspiracy to commit securities fraud and wire fraud.

Federal prosecutors in Manhattan say Deborah Duffy participated in a scheme to defraud investors in Greenwich-based WG Trading Co. from 1996 through February. They say she and others at the company failed to invest $131 million as promised and instead used it for their personal benefit.

The government says the company's customers included charitable and university foundations, pension and retirement plans and other institutions.

Two investment advisers who ran the business have been charged in the case.

Duffy entered her plea Tuesday. She signed a cooperation agreement with the government. Sentencing is set for Jan. 21.



Lone surviving Mumbai attacks gunman admits guilt
Court Feed News | 2009/07/20 17:56
The lone surviving gunman in the Mumbai attacks pleaded guilty Monday and gave a detailed account of the plot and his role in the rampage that left 166 people dead and paralyzed the city for three days.

In a verbal statement, Ajmal Kasab described his group's journey from Karachi, Pakistan on a boat, their subsequent landing in Mumbai on Nov. 26, and his assault on a railway station and a hospital with a comrade he identified as Abu Ismail.

The other gunmen, also armed with automatic rifles and grenades, attacked a Jewish center and two five-star hotels, including the Taj Mahal. The rampage ended at the historic hotel days later after commandos killed the attackers holed up there.

"I was firing and Abu was hurling hand grenades (at the railway station)," Kasab told the court. "We both fired, me and Abu Ismail. We fired on the public."

Earlier Kasab, 21, stood up before the special court hearing his case just as a prosecution witness was to take the stand and addressed the judge. "Sir, I plead guilty to my crime," he said, triggering a collective gasp in the courtroom.



Court: O'Keeffe Museum has no right to Fisk U. art
Court Feed News | 2009/07/17 16:23
The Georgia O'Keeffe Museum may represent the painter's estate but has no right to an art collection she donated to Fisk University, Tennessee's Court of Appeals has ruled.

In the ruling filed Tuesday, the court said any right O'Keeffe had to most of the 101 works of art ended with her death.

The financially struggling university had asked a lower court for permission to sell two of the works — O'Keeffe's 1927 oil painting "Radiator Building — Night, New York," and Marsden Hartley's "Painting No. 3."

The Georgia O'Keeffe Museum objected to the plan, arguing that Fisk was violating the terms of the bequest, which required the works be displayed together, and asking for the artwork to be turned over to the estate.

The Davidson County Chancery Court blocked the sale as well as a proposed $30 million arrangement to share the collection with the Crystal Bridges Museum in Bentonville, Ark. Nashville Chancellor Ellen Hobbs Lyle ordered last year that the university had to take the collection out of storage and put it back on display or forfeit it to the Georgia O'Keeffe Museum.

But the state appeals court overturned that decision, ruling the Georgia O'Keeffe Museum has no right to the work and no standing in court.

Representatives of the museum could not immediately be reached for comment. They will have 60 days to appeal the decision.

Ninety-seven of the works were part of a collection that belonged to O'Keeffe's late husband, the photographer and art promoter Alfred Stieglitz. O'Keeffe donated those works to the university in 1949 while executing Stieglitz's will.



Wisconsin court praises drunken concert goer
Court Feed News | 2009/07/16 15:53
An Illinois teen knew he was too drunk to drive home after a Dave Matthews Band concert south of Milwaukee. So he fell asleep in his car, only to be awoken by a state trooper. Travis Peterson, 19, of Dixon, Ill., said even though he told the officer he was drunk and sleeping it off, the trooper ordered him to leave because the lot was being cleared.

Once out of the parking lot, Peterson was arrested for drunken driving. He was subsequently found guilty and ordered to spend 60 days in jail.

A Wisconsin appeals court on Wednesday commended Peterson for doing the right thing by trying to sleep it off, and said the trial court was wrong not to let him argue that police had entrapped him.

The state had argued successfully at trial that people who choose to drink too much can't argue they've been entrapped when stopped for drunken driving. The 2nd District Court of Appeals disagreed.

"Drinking alcohol to excess, while inadvisable and unhealthy, is not unlawful by itself," the appeals court said.

It did not address the fact that Peterson was underage. Peterson's attorney, Andrew Mishlove, said that was irrelevant given the other issues at stake.



Wis. high court gives victory to lead paint makers
Court Feed News | 2009/07/15 12:18
Children poisoned by lead paint cannot allege that manufacturers defectively designed the product since the dangerous lead was a key ingredient, the Wisconsin Supreme Court ruled Tuesday.

The 6-0 decision limits the potential liability of companies that made components of lead paint for decades and are now facing dozens of lawsuits by Milwaukee children who ingested paint chips.

The lawsuits, including about 30 that are pending, will still move forward claiming the companies failed to warn consumers of the risks and created a market for a dangerous product, said Milwaukee attorney Peter Earle, who represents the children. But the plaintiffs now cannot add claims of defective product design, which could have been easier to prove.

The case at issue involved a boy who sustained lead poisoning after ingesting paint chips while living in a Milwaukee apartment in 1998, when he was 1. The boy, now 12, suffered learning disabilities as a result, Earle said.

Writing for the majority, Justice Ann Walsh Bradley said the boy and other plaintiffs cannot claim manufacturers of white lead carbonate products used as a pigment in residential paints were responsible for a design defect.



Victims of Stanford fraud to be heard
Court Feed News | 2009/07/15 10:20
Individuals who believe they are victims of an alleged $7 billion fraud that prosecutors say was perpetrated by Texas financier R. Allen Stanford's business empire will have a chance to tell their stories at a court hearing next month, a judge ruled Tuesday.

U.S. District Judge David Hittner issued an order saying he will allow the "thousands of potential victims throughout the world" to speak to the court or submit written statements before he accepts a plea agreement in the case between prosecutors and James M. Davis, the ex-chief financial officer of Houston-based Stanford Financial Group.

Davis pleaded not guilty during his arraignment Monday to conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct a Securities and Exchange Commission investigation.

But his attorney has said the former Stanford finance chief will plead guilty to these charges during a court hearing Aug. 6.

Davis was charged last month as part of the federal government's criminal case against Stanford and executives Laura Pendergest-Holt, Gilberto Lopez and Mark Kuhrt.



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