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Spammer Ralsky pleads guilty to stock fraud
Court Feed News | 2009/06/23 15:38
Alan Ralsky, a spam kingpin who was convicted of felony bank fraud in 1995, could face more than seven years in prison after pleading guilty in a stock fraud case involving spam messages that pumped up Chinese "penny" stocks.


Ralsky and four other individuals pleaded guilty on Monday, joining three others who had pleaded guilty earlier, the US Department of Justice announced on Monday. Cases are still pending against three other people, they said. The defendants were indicted in the Eastern District of Michigan in 2007.

In 2004 and 2005, the group engaged in a set of related conspiracies to manipulate stocks using false and misleading spam messages. After the spam boosted the trading volume and prices of the thinly traded stocks, the conspirators profited by trading in their shares. Many of the shares were low-priced "pink sheet" stocks for US companies owned by individuals in Hong Kong and China, the DOJ said.

Ralsky, 64, of Bloomfield Hills, Michigan, pleaded guilty to conspiracy to commit wire fraud and mail fraud and to violate the CAN-SPAM Act. As part of his guilty plea, Ralsky acknowledged he faces as much as 87 months in prison and a US$1 million fine. Ralsky's son-in-law, Scott Bradley, 38, also of Bloomfield Hills, pleaded guilty to the same charges and acknowledged he faces as long as 78 months in prison and a $1 million fine.

John Bown, 45, of Fresno, California, admitted creating a botnet to send the spam. Bown pleaded guilty to conspiracy to commit wire fraud and mail fraud and to violate the CAN-SPAM Act, as well as conspiracy to commit computer fraud. He faces as much as 63 months in prison and a US$75,000 fine. William Neil, 46, of Fresno, and James Fite, 36, of Culver City, California, also pleaded guilty in the case. All five defendants are scheduled to be sentenced on October 29.


No benefits for LA girl born from dead man's sperm
Court Feed News | 2009/06/19 15:15
A 10-year-old girl conceived from the frozen sperm of a dead man cannot receive his Social Security benefits, a federal appeals court ruled.


A panel of the 9th U.S. Circuit Court of Appeals on Wednesday upheld a lower court's rejection of child survivor benefits for Brandalynn Vernoff, who was born nearly four years after her father's death in 1995.

The case involved sperm that Bruce Vernoff's widow, Gabriela, had a doctor extract after he died unexpectedly from an allergic reaction. In 1998, she used it for in vitro fertilization and gave birth to Brandalynn in a Los Angeles hospital on March 17, 1999.

Gabriela Vernoff later applied for child survivor benefits from the Social Security Administration but was rejected. A federal judge in Santa Ana also rejected her claims.

The appellate panel ruled that while there was an "undisputed biological relationship" between Brandalynn and her father, the girl was not a dependent at the time of his death as defined by Social Security regulations and by California law on the establishment of paternity.

The three-judge panel noted that California law only grants inheritance rights to children conceived within one year after a parent has died. The ruling also said there was no evidence that Vernoff consented to his wife's artificial insemination, which under state law would be required to establish his paternity.

Gabriela Vernoff "has not provided any evidence of consent to the conception by the insured or his willingness to support Brandalynn," the ruling said.

A message left for the widow's attorney was not immediately returned Thursday.



Court upholds settlement in asbestos law
Court Feed News | 2009/06/18 16:02
The Supreme Court has agreed to reinstate a roughly $500 million settlement of asbestos lawsuits against the Travelers Companies Inc.


Travelers had been named in lawsuits alleging that it tried to hide dangerous health effects of asbestos. The company argued that asbestos claims be paid out of a trust created by Johns Manville in the 1980s and approved by a federal bankruptcy judge.

Travelers settled with several groups of plaintiffs with the caveat that federal courts make clear the company would not have to face any new similar lawsuits.

The 2nd U.S Circuit Court of Appeals in New York overturned lower-court approval of the settlement, saying a bankruptcy judge lacks the authority to act so broadly.

The high court overturned that decision.



Court finds convicts have no right to test DNA
Court Feed News | 2009/06/18 13:05
The Supreme Court said Thursday that convicts have no constitutional right to test DNA evidence in hopes of proving their innocence long after they were found guilty of a crime.


The decision may have limited impact because the federal government and 47 states already have laws that allow convicts some access to genetic evidence. Testing has led to the exoneration of at least 232 people who had been found guilty of murder, rape and other violent crimes.

The court ruled 5-4, with its conservative justices in the majority, against an Alaska man who was convicted in a brutal attack on a prostitute 16 years ago.

William Osborne won a federal appeals court ruling granting him access to a blue condom that was used during the attack. Osborne argued that testing its contents would firmly establish his innocence or guilt.

In parole proceedings, however, Osborne has admitted his guilt in a separate bid for release from prison.

The high court reversed the ruling by the 9th U.S. Circuit Court of Appeals in San Francisco. States already are dealing with the challenges and opportunities presented by advances in genetic testing, Chief Justice John Roberts said in his majority opinion.



NJ man freed after murder convictions overturned
Court Feed News | 2009/06/17 16:13
After spending more than 20 years in prison for two murders he repeatedly denied committing, Paul Kamienski spoke Tuesday as a man freed under unusual circumstances.


Last month, the 3rd U.S. Circuit Court of Appeals in Philadelphia overturned his 1988 convictions and double life sentence in the murders of a Florida couple in 1983 in what prosecutors described as a drug deal gone bad. The court wrote that the evidence presented at trial was not sufficient to warrant a verdict of guilty beyond a reasonable doubt.

Such reversals, in which no new evidence is presented, are considered extremely rare.

Kamienski, 61, was released from South Woods State Prison on Tuesday afternoon. Standing across the street from the prison, he spoke softly and fought to hold back his emotions. He expressed thanks for the friends who stood by him during the lengthy appeal process and said he would take time to let it all sink in.

"It's hard to put into words how I feel," the lanky Kamienski said. "I'm just going to try and get my life back together, do some thinking, do some unwinding."

Prosecutors contended Kamienski helped two friends dispose of the bodies of Barbara and Henry DeTournay after one of the friends, Joseph Marzeno, shot the couple during a 1983 robbery involving $150,000 worth of cocaine. Their bodies were dumped in New Jersey's Barnegat Bay and discovered several days later.

Marzeno, Kamienski and a third man were convicted of the murders, but the trial judge later threw out Kamienski's conviction for a lack of evidence. A state appeals court reinstated the conviction, however, and New Jersey's Supreme Court declined to hear the case.

Enter Timothy McInnis, a lawyer who heard about Kamienski's case at a holiday party in New York in the late 1990s and decided to take it on.



Judge: Simpson `acquittal suit' to stay in storage
Court Feed News | 2009/06/16 14:34
A judge on Monday ordered O.J. Simpson's former manager to keep the former football star's so-called acquittal suit in storage until it is determined who rightfully owns it.


The ruling came after a contentious hearing that ultimately spilled into a courthouse hallway, where the former manager, Mike Gilbert, and a lawyer for Fred Goldman exchanged heated accusations.

Goldman — the father of Ronald Goldman, who was slain alongside Simpson's ex-wife 15 years ago — is seeking to satisfy a $33.5 million civil judgment against Simpson by selling the suit the Hall of Famer wore to court when he was acquitted on murder charges.

Gilbert said Simpson gave him the suit the day after his Oct. 3, 1995, acquittal. He claims it is his property because Simpson had not yet been found civilly liable for Ronald Goldman's and Nicole Brown Simpson's deaths.

Gilbert told Fred Goldman's lawyer, David Cook, that Goldman previously said his pursuit of Simpson was not about money.



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