The court ruled Monday that undocumented workers who use phony identification can't be considered identity thieves unless they knew they were using ID numbers from real people. Some officials at the Agriprocessors plant in Postville, where hundreds of illegal immigrants were arrested in a raid last year, face identity theft counts.

On Tuesday, U.S. District Court Judge Linda Reade allowed former human resources employee Laura Althouse to drop the guilty plea to identity theft she made in October. She still faces sentencing May 13 on a charge of conspiracy to harbor undocumented immigrants for financial gain.

Former Agriprocessors vice president Sholom Rubashkin also faces identity theft-related charges and has pleaded not guilty. His attorney Guy Cook said he will file "very soon" a motion to dismiss some of the counts against his client based on the Supreme Court ruling.

The high court's decision limits federal authorities' use of a 2004 law designed to get tough on identity thieves.

Authorities charged 270 illegal immigrants with identity theft following the raid at the Postville plant on May 12, 2008. They all accepted plea deals in which they agreed not to fight deportation.

Reid on Tuesday paid tribute to Obama's past experience as a law professor and said he's confident he'll send a very qualified nominee to the Senate. The Nevada Democrat also said he doesn't expect Republicans to filibuster Obama's choice.

He said he hopes Obama goes outside the existing legal system and finds a former governor or senator, or someone who has "real life experiences."

Reid said that "I feel comfortable that his choice will be as good as his Cabinet choices."

Lawyers for John Odgren say he was legally insane when he fatally stabbed 15-year-old James Alenson at Lincoln-Sudbury Regional High School in January 2007.

A judge ruled last year that prosecutors improperly obtained more than 30 hours of Odgren's jailhouse conversations.

But prosecutors say they obtained the recordings lawfully. They want to play the recordings at Odgren's trial because they believe the conversations show a lucid boy who was not in the throes of mental illness.

The Supreme Judicial Court will hear prosecutors' appeal on Monday.

Trustee Irving Picard says in a complaint filed Friday in Bankruptcy Court that Stanley Chais and his family made more than $1 billion in false earnings off Madoff's scheme. He claims the money came from the pockets of burned investors. He wants the money back.

Chais lawyer Eugene Licker says the Chais family has suffered "astounding and ruinous losses from the Madoff scheme."

Madoff pleaded guilty in March to charges his secretive investment advisory operation was a pyramid scheme. He faces up to 150 years in prison.

Picard is overseeing the liquidation of Madoff's assets. He says he plans to use sale proceeds to pay Madoff's victims.

Critics of the prosecution of Steven Rosen and Keith Weissman of the American Israel Public Afffairs Committee had accused the federal government of trying to criminalize the sort of back-channel discussions between government officials, lobbyists and reporters that are commonplace in the nation's capital. AIPAC is an influential pro-Israel lobbying group.

Acting U.S. Attorney Dana Boente said the government moved to dismiss the charges in the drawn-out case after concluding that pretrial rulings would make it too difficult for the government to prove its case.

U.S. District Judge T.S. Ellis III had made several legal rulings that prosecutors worried would make it almost impossible to obtain a guilty verdict. Among them was a requirement that the government would have to prove that Rosen and Weissman intended to harm the United States by trading in sensitive national defense information.

The trial had been scheduled to start June 2 in a case that has dragged on for four years.

Rosen and Weissman had not been charged with actual espionage, although the charges did fall under provisions of the 1917 Espionage Act, a rarely used World War I-era law that had never before been applied to lobbyists.

A former Defense Department official, Lawrence A. Franklin, previously pleaded guilty to providing Rosen and Weissman classified defense information and was sentenced to more than 12 years in prison.

The court will hear arguments Tuesday in an Oregon case in which a local school district contends that students should at least give public special education programs a try before seeking reimbursement for private school tuition.

A federal appeals court sided with a high-school student identified in court papers only as T.A. The student enrolled in a $5,200-a-month private program and sought reimbursement from the Forest Grove School District.

The Supreme Court heard a similar case from New York in 2007, but split 4-4 on the outcome.

The case is Forest Grove School District v. T.A., 08-305.