|
|
|
IRS seeks millions from tax swindler
Court Feed News |
2008/01/18 09:53
|
A telecommunications executive once called the biggest tax cheat in U.S. history is getting hit with new Internal Revenue Service demands seeking hundreds of millions of dollars just as he starts a nine-year federal prison term.
The IRS sent Walter C. Anderson a notice of deficiency for more than $180 million and additional fraud penalties totaling more than $130 million, according to a recent court filing by the U.S. Attorney's Office in the District.
Assistant U.S. Attorney Susan B. Menzer disclosed the tax demands in a recent memo to a federal judge seeking permission to share grand jury testimony with the IRS. Anderson is suing the IRS from federal prison in New Jersey.
In his lawsuit, Anderson, who made his fortune in telecommunications and once backed plans to privatize the Mir Space Station, disputes the IRS calculations, denies committing tax fraud and says his guilty plea wasn't voluntary, court documents show. Anderson pleaded guilty in September 2006 to tax-evasion charges for failing to report more than $350 million in income on his 1998 and 1999 tax returns.
Authorities said the unpaid taxes from Anderson could have funded hundreds of new police officers and teachers in the District.
At Anderson's sentencing last year, U.S. District Judge Paul L. Friedman gave Anderson nine years in prison, but did not order him to make restitution to the IRS. The judge cited an error by prosecutors who failed to include probation as part of Anderson's plea agreement.
The ruling meant authorities would have to try to pursue restitution through civil courts. |
|
|
|
|
|
Court Overturns $1.5M Spanking Verdict
Court Feed News |
2008/01/17 15:06
|
An appeals court overturned a $1.5 million verdict awarded to a woman who was spanked in front of co-workers in what her employer called a camaraderie-building exercise. A jury in 2006 had ruled that Janet Orlando had suffered sexual harassment and sexual battery when she was paddled at home security company Alarm One Inc. The jury punished the company with a $1 million punitive damage award. But on Monday, a three-judge panel of the state Court of Appeal overturned that verdict, ruling that the jury had been given improper instructions. In particular, the jury wasn't instructed that one vital element of proving that sexual harassment occurred is showing the action was directed at a woman because of her gender. Lawyers for Alarm One, an Anaheim-based, 300-employee company, said that the spankings were not discriminatory because they were given to both male and female workers and that Orlando and others willingly took part. Orlando's attorney, Nicholas "Butch" Wagner, vowed to take the case to trial again. "We may get more this time," Wagner said. But K. Poncho Baker, the attorney who defended the company at trial in 2006, said that because the company has since gone into bankruptcy and its insurance was exhausted battling Orlando's claim and settling with three other co-workers, there may be little left to recover. "Good luck retrying this one," Baker said. Orlando quit the company in 2004, less than a year after she was hired at the Fresno office, saying she was humiliated during the company's team-building practices. Employees were paddled with rival companies' yard signs as part of a contest that pitted sales teams against one another. The winners poked fun at the losers, throwing pies at them, feeding them baby food, making them wear diapers and swatting their buttocks. The company has since abandoned the practice. |
|
|
|
|
|
Supreme Court Upholds NY Judicial Elections
Court Feed News |
2008/01/16 17:03
|
The Supreme Court unanimously upheld New York's unique system of choosing trial judges Wednesday, setting aside critics' concerns that political party bosses control the system. "A political party has a First Amendment right to limit its membership as it wishes and to choose a candidate-selection process that will in its view produce the nominee who best represents its political platform," Justice Antonin Scalia wrote for the court. In New York, primary voters elect convention delegates who choose candidates for the judgeships. Once nominated, those candidates run on the general election ballot. In practice, they frequently have no opposition. Unsuccessful candidates for judgeships and a watchdog group filed a lawsuit challenging the system. A federal district judge and the 2nd U.S. Circuit Court of Appeals agreed that it is very difficult for candidates to get on the ballot if they don't have support of the party leaders. In striking down the system, the two federal courts said judgeship candidates who are not the choice of the party leaders are excluded from elections by an onerous process that violates their First Amendment rights. The high court on Wednesday reversed the lower courts. Scalia said there is nothing unconstitutional about the process. The system's opponents "complain not of the state law, but of the voters' (and their elected delegates') preference for the choices of the party leadership," Scalia said. He said the state legislature is free to return to a primary if it wishes. Justice John Paul Stevens chimed in with a brief opinion distinguishing between a constitutional system and wise public policy, resorting to the words of former Justice Thurgood Marshall. "The Constitution does not prohibit legislatures from enacting stupid laws," Stevens said, quoting Marshall. Critics have said the conventions are patronage-driven affairs in which allies of party leaders are rewarded with judgeships and all others are shut out. The appeals court said that between 1990 and 2002, almost half the state's elections for Supreme Court justice — trial judges in New York's judiciary — were uncontested, calling them "little more than ceremony." The appeals court ordered the state to dispense with the conventions and switch to primary elections until state lawmakers come up with a new plan. Many legal and civics groups have come out in favor of appointing judges in New York. The U.S. Supreme Court previously has ruled that states can decide whether to use conventions or primaries to nominate candidates. States also can choose to have judges appointed rather than elected. Margarita Lopez Torres became the lead plaintiff in the lawsuit after Democratic leaders in Brooklyn blocked her from getting the party's nomination for a Supreme Court judgeship. She said the leaders turned against her shortly after her election as a civil court judge when she would not hire people they recommended. Three years later, Lopez Torres said they offered her a second chance if she would hire a leader's daughter. She refused. The state, the Democratic and Republican parties and the elections board joined to ask the high court to reverse the appeals court ruling. Former New York Mayor Ed Koch was among a diverse group of politicians and legal groups asking the court to uphold the lower court rulings. The state Legislature adopted the nominating conventions 86 years ago. Lawmakers scrapped direct primaries for New York's Supreme Court justices because of the potentially corrupting influence of having prospective judges raising campaign money. Other judges in New York are elected through primaries. The plaintiffs have said the current system leads to cozy relationships among judges, lawyers and politicians. |
|
|
|
|
|
Appeal Filed in Kucinich Debate Lawsuit
Court Feed News |
2008/01/16 17:00
|
The Nevada Supreme Court said Tuesday MSNBC can exclude Democratic presidential hopeful Dennis Kucinich from a candidate debate. Lawyers for NBC Universal Inc., had asked the high court to overturn a lower court order that the cable TV news network include the Ohio congressman or pull the plug on broadcasting the debate Tuesday night with Hillary Rodham Clinton, Barack Obama and John Edwards. An hour before the debate, the state Supreme Court's unanimous order said that blocking the debate unless Kucinich got to participate would be "an unconstitutional prior restraint" on the news network's First Amendment rights. The justices also said the lower court exceeded its jurisdiction by ordering Kucinich's participation even though he first requested and was denied relief from the Federal Communications Commission. "It's a matter of being on stage and answering questions. That's the issue," lawyer Bill McGaha argued for Kucinich during a hearing before four justices in Las Vegas. Three other justices participated by closed-circuit video conference from Carson City. Donald Campbell, a Las Vegas lawyer representing NBC Universal, accused Kucinich of trying to make a jurisdictional "end run" around the FCC and federal courts by suing in Nevada state court to be added to the debate. FCC broadcast rules do not apply to cable TV networks, Campbell said, adding that forcing MSNBC to add Kucinich or not broadcast the debate amounted to prior restraint and would be a "clear and unequivocal" violation of First Amendment press freedom. "Mr. Kucinich's claim ... undermines the wide journalistic freedoms enjoyed by news organizations under the First Amendment," Campbell said in his appeal. Campbell said MSNBC decided to go with the top three candidates after the Iowa and New Hampshire primaries. Kucinich drew less than 2 percent of the Democratic vote in the New Hampshire primary, after attracting little support in the Iowa caucuses. |
|
|
|
|
|
Woman guilty of embezzling law firm funds
Court Feed News |
2008/01/16 11:08
|
A former office manager for a Columbia law firm pleaded guilty yesterday to stealing almost $706,000 from the company - one of the largest embezzlement cases in county history, according to the state's attorney's office. Christine McClain-Sloane, 41, used company checks to pay for personal expenses for six of the 11 years she worked at Nagle and Zaller PC, the Howard County state's attorney's office said. McClain-Sloane pleaded guilty to two counts of felony theft scheme, and Howard Circuit Judge Diane O. Leasure revoked her bail. Sentencing was scheduled for March 28. The state will ask that McClain-Sloane serve an 18- to 22-year sentence and repay the firm the $705,915, according to the state's attorney's office. After analyzing the firm's financial and bank records, the state determined that from 1998 to 2005, McClain-Sloane wrote nearly 250 fraudulent company checks and made nearly 1,400 unauthorized personal charges to her company credit card, according to the statement of facts by Senior Assistant State's Attorney Lynn M. Marshall. The firm's partners discovered that McClain-Sloane had stolen money after she resigned and moved to Lexington, Ky., in 2005, according to the statement of facts. "This should be a wake-up call to any professionals and business people because what it really is, is a violation of the trust that was given to her," said P. Michael Nagle, founding partner of the firm, yesterday. "It's really very important for businesses to have safeguards in place, which I did not have in place," he said. |
|
|
|
|
|
Court Maintains Ruling Against Spears
Court Feed News |
2008/01/15 11:02
|
Britney Spears went to a courthouse Monday but abruptly left amid a swarm of paparazzi without attending a hearing in her child-custody battle with her ex-husband, missing a chance to try to persuade a commissioner to restore her visitation rights to her two little boys. Instead, the Superior Court commissioner heard a day of closed-door testimony from Kevin Federline and witnesses to a bizarre situation this month in which police took the pop singer to a hospital after a standoff in her home when she refused to return the boys to Federline's bodyguard after a visit. Commissioner Scott Gordon then ruled that a Jan. 4 emergency order suspending her visitation rights and giving custody to Federline would remain in effect. He scheduled another hearing for Feb. 19. "The word victory is not something Mr. Federline or his counsel would ascribe to this. There is no joy. This is a grave situation for all," Federline's attorney, Mark Vincent Kaplan, said outside the courthouse. Although Federline thought the ruling was correct, Kaplan said, "his goal, his hope for the future is at some point he will be able to parent the children with the participation of their mother." Kaplan would not answer questions. Court spokesman Allan Parachini said those who testified were two Los Angeles police officers; Paula Strong, the court-appointed monitor who was present for the visit at Spears' home; Lisa Hacker, a parenting coach who has been working with Spears and Federline; and Lonnie Jones, the bodyguard. Parachini did not reveal what the witnesses said during their testimony. Gordon's order noted that during an officer's testimony there were two exhibits, one described as a photocopy of a police report and the other as a "photocopy of Application for 72-hour Detention for Evaluation and Treatment." All exhibits were ordered sealed. Neither Spears nor Federline were required to attend, but Federline arrived early, sporting a mohawk-style haircut and dressed in a suit. Spears didn't arrive until early afternoon. A sport-utility vehicle took her into a civic center garage, but only her attorneys got out before it left. It later stopped outside the courthouse, where Spears got out of a passenger seat and took over the driver's seat. It was not clear in the crush of photographers whether she or a companion was at the wheel when it left. Gordon scheduled Monday's hearing at the same time he issued a Jan. 4 order suspending Spears' monitored visits with sons Jayden James, 1, and Sean Preston, 2, and giving full legal and physical custody to Federline, who previously had temporary custody. Gordon issued that order the day after police were called to Spears' home when she refused to return the children to Federline after a monitored visit and officers had paramedics haul the pop star off to a hospital for undisclosed reasons. She was released after a day and a half at Cedars-Sinai Medical Center. Police officers monitoring the paparazzi outside the courthouse warned them to stay on the sidewalk, and several were issued citations for being in the street. Spears married Federline in 2004 and filed for divorce in 2006. Throughout 2007, her behavior was erratic — and highly public, as a train of photographers trailed her everywhere. A court ordered her to undergo random drug and alcohol testing, and to temporarily give the boys to Federline. Spears' attorneys asked the court this month to be relieved as her counsel because of a "breakdown" in communication. That motion is scheduled to be heard on Feb. 4. |
|
|
|
|
Recent Lawyer News Updates |
|
|