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Appeals court upholds convictions of Tyco executives
Court Feed News | 2007/11/16 12:26

Their names became shorthand for corporate greed, but former Tyco International Ltd. executives L. Dennis Kozlowski and Mark Swartz have argued they were entitled to the money and perks they were accused of taking. A state appeals court said Thursday it disagreed, upholding the 2005 convictions of ex-CEO Kozlowski and former finance chief Swartz. Their massive theft and purchases of such luxuries as a $6,000 shower curtain came to symbolize corporate excess and cupidity.

"The evidence amply supports the conclusion that defendants took unauthorized bonuses from Tyco in 1999 and 2000," the appeals panel wrote in a 4-0 decision.

Kozlowski, 60, and Swartz, 47, were each sentenced to 8-1/3 to 25 years in prison after being convicted of conspiracy, grand larceny, securities fraud and falsifying business records. Prosecutors say the two amassed $170 million in unauthorized compensation and $430 million through stock manipulation.

The men used the money to finance lavish lifestyles that, in Kozlowski's case, included a $6,000 gold-threaded shower curtain and a $15,000 umbrella stand shaped like a small terrier, according to the prosecution.

Last month, defense lawyers argued before the appellate judges that neither man had taken money _ including bonuses and forgiven loans, money for investments, expensive real estate and personal luxuries _ that he was not due.

During the trial, Kozlowski and Swartz argued that one member of the company's compensation committee had approved some of the bonuses.

But the judges cited testimony showing that all but one compensation committee member had no knowledge of the bonus payments, and that even the defense agreed that only the whole committee had the authority to grant compensation.

The court also noted there was no written record of the payouts in the materials prepared for the compensation committee, and none in the committee's reports to the board.

"The absence of any reference to these transactions in the chain of documentation available to the committee clearly demonstrates defendants' coverup of their thievery," the appellate judges wrote.




Court orders White House to preserve e-mail backups
Court Feed News | 2007/11/13 15:18
A federal district court judge issued a temporary restraining order today requiring the Bush administration to safeguard backup media files that may contain copies of millions of White House e-mail messages — the subject of ongoing litigation.
Citizens for Responsibility and Ethics in Washington (CREW), a watchdog group, requested the order last month. It and George Washington University’s National Security Archive are suing the Bush administration for allegedly failing to “recover, restore and preserve certain electronic communications created and/or received within the White House.”

The complaint alleges that since 2003 the Bush administration has illegally discarded about 5 million e-mail messages that it was required to keep under records laws. The plaintiffs are demanding that the missing messages be restored using the backup media files and that the administration implement a new “adequate electronic management system.”

The groups’ lawsuits against the Executive Office of the President, the White House’s Office of Administration, and the National Archives and Records Administration have now been consolidated.

CREW filed for the temporary restraining order after the group said it did not receive adequate assurances from the White House that the backups were being protected.

The decision by the U.S. District Court for the District of Columbia confirms a magistrate’s earlier recommendation that the order be issued. Under the temporary restraining order, the defendants are required to safeguard all media in their possession as of Nov. 12.

But because the order is not retroactive, it does not clarify what has happened to the backups since 2003, said Meredith Fuchs, the National Security Archive’s general counsel. Concerns that the backups could have been erased in the past four years -- perhaps as part of normal business processes -- coupled with the limited time remaining for the Bush administration prompted the plaintiffs to ask for an expedited discovery process, she said.

The Bush administration formally opposed the early discovery request Nov. 9, she said.


Court Rejects Request From Detainee
Court Feed News | 2007/11/13 14:19
The Supreme Court on Tuesday refused to consider the case of a Guantanamo Bay detainee fighting U.S. plans to return him to Algeria. Ahmed Belbacha says his life will be in danger from terrorists and that it is likely Algerian authorities will torture him if he is sent home. The U.S. military has classified him as an enemy combatant, while saying he is eligible for transfer subject to appropriate diplomatic arrangements for another country to take him.

"Caught between domestic terror groups and a government that brutalizes suspected Islamists, Belbacha cannot safely return to Algeria," his lawyers wrote in asking the Supreme Court to take the case. "His fear is such that he would prefer to endure the oppressive environment of Guantanamo until an asylum state can be found."

Brought to Guantanamo Bay in 2002 from Pakistan, Belbacha was an accountant at the government-owned oil company Sonatrach. He says his problems began when he was recalled for a second term of military service in the Algerian army, prompting death threats against him by terrorists in Groupe Isalmique Armee, then at the height of a violent campaign for an Islamic Algeria.

Belbacha never reported for duty, but says the GIA visited his home at least twice and threatened him and his family. He left the country, traveling to France, England, Pakistan and Afghanistan before being brought to Guantanamo Bay.



Supreme Court Could Take Guns Case
Court Feed News | 2007/11/10 18:24
Supreme Court justices have track records that make predicting their rulings on many topics more than a mere guess. Then there is the issue of the Second Amendment and guns, about which the court has said virtually nothing in nearly 70 years. That could change in the next few months.

The justices are facing a decision about whether to hear an appeal from city officials in Washington, D.C., wanting to keep the capital's 31-year ban on handguns. A lower court struck down the ban as a violation of the Second Amendment rights of gun ownership.

The prospect that the high court might define gun rights under the Constitution is making people on both sides of the issue nervous.

"I wouldn't be confident on either side," said Mark Tushnet, a Harvard Law School professor and author of a new book on the battle over guns in the United States.

The court could announce as early as Tuesday whether it will hear the case.

The main issue before the justices is whether the Second Amendment protects an individual's right to own guns or instead spells out the collective right of states to maintain militias. The former interpretation would permit fewer restrictions on gun ownership.

The Second Amendment reads: "A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed."

The federal appeals court for the District of Columbia was the first federal panel to strike down a gun-control law based on individual rights. The court ruled in favor of Dick Anthony Heller, an armed security guard whose application to keep a handgun at home was denied by the district.

Most other U.S. courts have said the Second Amendment does not contain a right to have a gun for purely private purposes.

Chicago has a similar handgun ban, but few other gun-control laws are as strict as the district's.

Four states — Hawaii, Illinois, Maryland and New York — are urging the Supreme Court to take the case because broad application of the appeals court ruling would threaten "all federal and state laws restricting access to firearms."

The district said its law, passed in 1976, was enacted by local elected officials who believed it was a sensible way to save lives. The law also requires residents to keep shotguns and rifles unloaded and disassembled or fitted with trigger locks.

The city's appeal asks the court to look only at the handgun ban because local law allows possession of other firearms.

Critics say the law has done little to curb violence, mainly because guns obtained legally from the district or through illegal means still are readily available.

Although the city's homicide rate has declined dramatically since peaking in the early 1990s, it ranks among the nation's highest, with 169 killings in 2006.

Heller said Washington remains a dangerous place to live. "People need not stand by and die," he said in court papers.

He said the Second Amendment gives him the right to keep working guns, including handguns, in his home for his own protection.

The last time the court examined the meaning of the Second Amendment was in a 1939 case in which two men claimed the amendment gave them the right to have sawed-off shotguns. A unanimous court ruled against them.

Gun control advocates say the 1939 decision in U.S. v. Miller settled the issue in favor of a collective right. Gun rights proponents say the decision has been misconstrued.

Chief Justice John Roberts has said the question has not been resolved by the Supreme Court. The 1939 decision "sidestepped" the issue of whether the Second Amendment right is individual or collective, Roberts said at his confirmation hearing in 2005.

"That's still very much an open issue," Roberts said.

Both the district government and Heller want the high court to take the case. The split among the appeals courts and the importance of the issue make it likely that the justices will do so, Tushnet said.



Court Upholds Elvis Memorabilia Ruling
Court Feed News | 2007/11/08 15:20
A legal battle over an odd collection of Elvis Presley memorabilia — including a glass device reportedly used to irrigate the King's sinuses before the took the stage — could be nearing an end. The Delaware Supreme Court on Tuesday upheld a ruling granting California businessman Richard Long ownership of the collection of items once owned by Presley's personal physician, Dr. George Nichopolous.

The collection includes a black doctor's bag used by Nichopolous containing prescription bottles bearing Presley's name, as well as jewelry, guns, and a laryngeal scope used to examine Presley's throat.

According to the lawsuit, Nichopolous agreed last year to sell it for $1 million to Long and his business partners, Robert Gallagher and Betty Franklin of Nevada. Long put up the money, and Gallagher and Franklin, who claimed to have a "half interest" in the collection, agreed to assign all their rights to a company Long controlled.

Long alleged in his lawsuit that Gallagher and Franklin refused to surrender access to the memorabilia and would not provide the paperwork needed to obtain insurance. A judge entered a default judgment against Gallagher and Franklin in July after they repeatedly failed to appear for court hearings and ignored court orders.

The judgment held Gallagher and Franklin in contempt and gave Long authority to dissolve the partnership and sell the collection. The Supreme Court turned down Gallagher's appeal Tuesday.

David Finger, an attorney for Long, said his client is determined to make Gallagher give up the collection.

"If he does not turn it over, we will seek to have him incarcerated," Finger said.

Michael Matuska, an attorney for Gallagher and Franklin, did not immediately return a telephone message Wednesday.



Man pleads guilty to threatening Riverside DA
Court Feed News | 2007/11/08 13:38
A man who was part of a newspaper's advertising staff could face as much as three years in prison after pleading guilty to making a threat against county District Attorney Rod Pacheco.

Chandler William Cardwell, 33, entered his plea Wednesday. In exchange, prosecutors agreed to drop another threat charge and a forgery charge, as well as a special allegation.

Sentencing is scheduled for Dec. 10.

Cardwell was arrested in September after authorities executed search warrants at The Press-Enterprise where he worked in the classified advertising department.

Investigators said Cardwell placed an ad for a "Big Blowout, Going Out of Business" yard sale with proceeds to benefit the "Rod Pacheco memorial fund." It listed the district attorney's home address and phone number.

The ad appeared to be a response to Pacheco's announcement that he was seeking an injunction to restrict members of a gang from gathering and to force them to adhere to a curfew.

Cardwell's brother-in-law is a member of the gang, authorities said. Deputy Attorney General Michael Murphy said Cardwell's ties to the gang remain unclear, but "he clearly associates with them."

Cardwell's attorney, Richard Carnero, refuted that claim, saying his client is not a gang member. The ad was not placed "in connection with any gang," he said.



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