NY court hears hedge fund boss' bail arguments

Court News 2011/12/01 10:22   Bookmark and Share
A federal appeals court did not immediately rule Wednesday whether hedge fund founder Raj Rajaratnam must report to prison next week for an 11-year sentence for insider trading, the longest term ever given for the crime.

Attorney Patricia Millett told the 2nd U.S. Circuit Court of Appeals in Manhattan that Rajaratnam should remain free on bail while the appeals court hears a challenge to his conviction in the biggest insider trading case in history.

Rajaratnam, 54, was sentenced in October after his conviction this year on charges that he engaged in insider trading from 2003 through October 2009 at the Galleon Group of hedge funds that he founded. Prosecutors said insider trading schemes involved the stocks of at least 19 different public companies and resulted in at least $70 million in illegal gains.

Rajaratnam was also ordered to forfeit $53.8 million and to pay a $10 million fine.

Millett said court papers filed to secure wiretaps that provided evidence crucial to his conviction were improperly made, raising a substantial question of law that entitles him to remain free until the appeals court hears the case sometime next year.
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Accused White House shooter to appear in DC court

Court News 2011/11/21 09:29   Bookmark and Share
A man accused of firing an assault rifle at the White House is expected to appear in court in Washington.

Oscar Ramiro Ortega-Hernandez is scheduled to appear in federal court Monday at 1:45 p.m.

Ortega was arrested last week in Pennsylvania. The Idaho Falls, Idaho, resident is accused of driving by the White House on the evening of Nov. 11 and firing at the White House from his vehicle. Authorities say one of the rounds he fired cracked a window of the first family's living quarters.

President Barack Obama and first lady Michelle Obama were away, and no one was injured.
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RI pension overhaul may head to the courts

Court News 2011/11/19 09:02   Bookmark and Share
Rhode Island is taking dramatic steps toward fixing one of the nation's most underfunded public pension systems, but the true battle with public-sector unions may be just beginning.

State lawmakers ignored jeers from public workers and the threat of a lawsuit Thursday to pass sweeping changes to the pension system covering 66,000 active and retired public workers.

The legislation is designed to save billions of dollars in future years by backing away from promises to state and municipal workers that lawmakers say the state can no longer afford. Gov. Lincoln Chafee, an independent, said he will sign the bill.

Public-sector union leaders promised a court challenge before the final votes were even cast.

"The attorneys are going to make a lot of money," Philip Keefe, president of Local 580, which represents social service, administrative and technical workers. "If this is overturned, it will be you, me and every other taxpayer that is on the hook for billions."

Supporters acknowledged that a lawsuit was inevitable but said the bill was thoroughly reviewed for any legal problems. Supporters said one of the reasons for the bill was to ensure there's money available when today's workers retire.

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Judge rejects appeal by Abramoff's former partner

Court News 2011/11/15 11:20   Bookmark and Share
Ex-lobbyist Jack Abramoff's former partner in crime shouldn't expect relief on his appeal to reduce a $20 million restitution order.

The chief of the federal appeals court in Washington, Judge David Sentelle, told Michael Scanlon's lawyer at arguments Monday the court cannot change his client's plea agreement. The court will issue its final order in writing.

Scanlon is serving a 20-month sentence for bilking Indian tribes of millions. Abramoff persuaded the tribes that hired him for lobbying to pay inflated fees for Scanlon's public relations services, and they secretly split the profits.

Scanlon pleaded guilty in part to defrauding the tribal clients of their right to "honest services." The Supreme Court weakened the honest services law last year and Scanlon argues the restitution should be lowered to reflect that ruling.

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Court likely to overturn Calif. law on livestock

Court News 2011/11/10 09:41   Bookmark and Share
The Supreme Court seemed ready Wednesday to block a California law that would require euthanizing downed livestock at federally inspected slaughterhouses to keep the meat out of the nation's food system.

The court heard an appeal from the National Meat Association, which wants a 2009 state law blocked from going into effect. California barred the purchase, sale and butchering of animals that can't walk and required slaughterhouses under the threat of fines and jail time to immediately kill nonambulatory animals.

But justices said that encroached on federal laws that don't require immediate euthanizing.

"The federal law does not require me immediately to go over and euthanize the cow. Your law does require me to go over and immediately euthanize the cow. And therefore, your law seems an additional requirement in respect to the operations of a federally inspected meatpacking facility," Justice Stephen Breyer told a California lawyer.
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Ala. county files for largest municipal bankruptcy

Court News 2011/11/09 09:40   Bookmark and Share
Alabama’s most populous county filed what became the largest municipal bankruptcy in U.S. history in an effort to retake control of its beleaguered sewer system and wipe away as much of its whopping $4.15 billion in debt as possible.

Jefferson County’s Chapter 9 filing on Wednesday gives it protection from creditors while it develops and negotiates a plan for adjusting its debts. It could accomplish that by extending debt maturities, reducing the amount of principal or interest, or refinancing the debt by obtaining a new loan.

Perhaps the biggest is the potential impact on the county’s 658,000 residents, who could be asked to pay higher sewer rates. Officials say it’s too early to assess the full impact, though bankruptcy filings can lead to layoffs, tax increases, pension reductions for public workers, and spending cuts on things like schools and roads.
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