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Federal judge ends BP's probation for Alaska spill
Court Feed News | 2011/12/27 17:18

A federal judge on Tuesday dismissed prosecutors' argument that a BP subsidiary violated its probation after an oil spill because of another spill on Alaska's North Slope.

Judge Ralph Beistline also lifted BP Exploration (Alaska) Inc.'s probation altogether.

BP had been convicted of negligent discharge of oil in 2007 for a 200,000-gallon (757,000-liter) spill on the North Slope a year earlier. There was another spill of 13,500 gallons (51,100 liters) in 2009.

Last month, government lawyers sought to have BP's probation revoked for the latest spill, meaning the probation period could have been lengthened or the company could have faced additional penalties.

In his ruling, Beistline said the government failed to prove the company committed criminal negligence.

"We are pleased with the decision and appreciate the court's attention," BP spokesman Steve Rinehart said in an email to The Associated Press. "We know that the privilege of working in Alaska comes with a responsibility to maintain high standards. We will continue our commitment to running safe and compliant operations."

Emails seeking comment from the U.S. attorney's office in Anchorage were not immediately returned.

Prosecutors said BP's history of environmental crimes in Alaska began in February 2001 when it pleaded guilty to releasing hazardous materials at its Endicott facility on the North Slope. The company was fined $500,000, placed on probation for five years and ordered to create a nationwide environmental management program, prosecutors said.



Pa.'s rhyming justice pens insurance fraud opinion
Court Feed News | 2011/12/22 18:15
A state Supreme Court justice known for opinions written in rhyme has done it again, producing six pages of verse Thursday in the case of whether the maker of a forged check also had committed insurance fraud.

Justice J. Michael Eakin, writing for a 4-2 majority, concluded in six-line stanzas that a man's attempt to deposit a forged check appearing to be from State Farm didn't constitute insurance fraud.

"Sentenced on the other crimes, he surely won't go free, but we find he can't be guilty of this final felony," Eakin wrote. "Convictions for the forgery and theft are approbated -- the sentence for insurance fraud, however, is vacated. The case must be remanded for resentencing, we find, so the trial judge may impose the result he originally had in mind."

A dissenting three-page opinion by Justice Thomas G. Saylor didn't rhyme.

Eakin was first elected to the high court in 2001 after earning a reputation as the "rhyming judge" by issuing some opinions entirely in verse while sitting on an intermediate state appellate court in the late 1990s. Two former state Supreme Court justices, Stephen A. Zappala and the late Ralph J. Cappy, had expressed concern in the past that the practice could reflect poorly on the court.


Alleged Ponzi schemer due in court
Court Feed News | 2011/12/21 13:43
Former Albuquerque real estate executive Doug Vaughan is due in court Wednesday to plead guilty to charges stemming from allegations he ran Ponzi scheme that swindled some 600 investors out of $74 million.

Vaughan's attorney, Amy Sirignano, last week told The Associated Press Vaughan would be changing his plea to guilty in the case, but that details of the agreement were still being worked out.

Vaughan is scheduled to appear in court in Santa Fe Wednesday afternoon.

The change of plea hearing was scheduled just a few weeks after court documents were unsealed showing Vaughan's long-time assistant planned to testify against him.

Victims have been identified in New Mexico, Arizona, Washington, Oregon, New Jersey, Texas and Colorado.


NY top court allows private securities claims
Court Feed News | 2011/12/20 18:17
Enforcement by the state attorney general against securities fraud doesn't pre-empt private common-law claims of negligence against investment companies, New York's top court ruled Tuesday.

The Court of Appeals rejected J.P. Morgan Investment Management's argument that New York's Martin Act gives the attorney general exclusive authority over fraudulent securities and investment practices. The court said Assured Guaranty (UK) Ltd. can sue J.P. Morgan.

"We agree with the attorney general that the purpose of the Martin Act is not impaired by private common-law actions that have a legal basis independent of the statute because proceedings by the attorney general and private action have the same goal — combating fraud and deception in securities transactions," Judge Victoria Graffeo wrote.

Assured claimed breach of fiduciary duty and gross negligence, alleging J.P. Morgan invested heavily in risky mortgage-backed securities while committing to a conservative investment policy for reinsurance company Orkney RE II PLC, whose obligations Assured guaranteed. After the market crashed, Assured had to cover Orkney losses.

"Here, the plain text of the Martin Act, while granting the attorney general investigatory and enforcement powers and prescribing various penalties, does not expressly mention or otherwise contemplate the elimination of common-law claims," Graffeo wrote. The unanimous ruling upheld a midlevel court, which had reversed a judge.


Operative gets prison for bilking NYC mayor
Court Feed News | 2011/12/19 18:10
A political operative convicted of bamboozling Mayor Michael Bloomberg out of hundreds of thousands of dollars was sentenced to prison Monday un a case that brought the billionaire politician to the witness stand and gave the public a behind-the-scenes look at his campaign and City Hall.

John Haggerty agreed to pay $750,000 in restitution to Bloomberg in addition to his prison term of 1 1/3 to 4 years.

Haggerty, a veteran Republican campaign consultant, was convicted in October after a trial that jurors called a crash course in the workings of politics. Besides the business-mogul-turned-mayor, the case drew in the state's third-largest political party and featured a coterie of Bloomberg insiders sketching their roles in his political, philanthropic and business affairs.

"Since starting my career, I've worked hard to make a reputation in the world of politics and government as a dedicated, honorable individual. Today, my reputation is destroyed," Haggerty told the judge in a strong voice. "If I could do it all over again, I would certainly do it much differently than I did."

He walked out of court briskly, without handcuffs, after state Supreme Court Justice Ronald Zweibel pronounced a sentence he said he felt necessary "to restore the public's confidence in the electoral process and to serve as a deterrent." Haggerty's lawyers said they planned to ask an appeals court to let him out on bail during a planned appeal.


Court Rules in Favor of Davenport Strip Club
Court Feed News | 2011/12/16 17:27
The Iowa Court of Appeals has ruled that a Davenport strip club can open, rejecting city arguments that an ordinance regulating adult businesses prohibits it.

KWQC-TV reports Chorus Line applied for a license to operate in 2009 but the city denied its request because the club would be right next to another business that is mainly a lingerie shop.

The ordinance prohibits two adult entertainment businesses from opening within 500 feet or on the same lot. The lingerie business was not required to get an adult entertainment license and the court sided with the strip club in its ruling on Wednesday.

City officials say the court got it wrong and they will consider an appeal to the Iowa Supreme Court.


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