Court again considers fate of seized gold coins worth $80M

Legal Insight 2015/10/15 00:25   Bookmark and Share
A federal appeals court is again considering the fate of 10 rare gold coins possibly worth $80 million or more that the government says were illegally taken from a Philadelphia mint and wound up in a jeweler's hands.

A lawyer for jeweler Israel Switt's heirs told the 3rd Circuit Court of Appeals on Wednesday that authorities erred by seizing the coins without filing a required civil forfeiture action.

A jury found the seizure legal because the coins hadn't been circulated and must therefore have been stolen, but a three-judge appellate court reversed that decision in April. Federal prosecutors then asked for Wednesday's hearing before the full appeals court.

They say returning the rare $20 Double Eagles to Joan Langbord and her two sons would reward the family of a thief.


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Supreme Court declines to review insider trading case

Legal Insight 2015/10/04 14:21   Bookmark and Share
The Supreme Court said Monday it won't hear the Obama administration's appeal of a lower court ruling that made it tougher to prosecute people for trading on leaked inside information.

The justices let stand a decision by the federal appeals court in New York last year that threw out insider trading convictions of two high-profile hedge fund managers.

The 2nd U.S. Circuit Court of Appeals overturned the convictions of Anthony Chiasson, of Manhattan, and Todd Newman, of Needham, Massachusetts, after finding they were too far removed from inside information to be prosecuted.

Prosecutors warned the ruling could hinder the government's campaign to curb insider trading on Wall Street, a crackdown that has resulted in more than 80 arrests and 70 convictions over several years.

Chiasson, who co-founded Level Global Investors based in Greenwich, Conn., and Newman, who had worked for Diamondback Capital Management based in Stamford, Conn., traded on tips from insiders on stock in technology companies Dell Inc. and Nvidia Corp. that generated $72 million in profits. The former portfolio managers were both convicted in December 2012.

The appeals court said prosecutors failed to present enough evidence the men willfully engaged in insider trading or conspired to break the law. It ruled that the government must show a person receiving a tip knew that an insider disclosed confidential information and that the tipster passed the information expecting a personal benefit.

In legal briefs filed with the court, Solicitor General Donald Verrilli said leaving the appeals court ruling in place would "hurt market participants, disadvantage scrupulous market analysts and impair the government's ability to protect the fairness and integrity of the securities markets."

Both men have denied insider trading. Their lawyers argued that they believed they were making trades based on legitimate research.

U.S. Attorney Preet Bharara in Manhattan told reporters on a conference call Monday that the Supreme Court's decision means "that there's a category of conduct that arguably will go unpunished going forward."

"If you have a CEO who has access to material, non-published information about earnings or anything else of a very sensitive nature and decides he wants to tip a relative or a buddy or a crony, knowing that person is going to trade on it to the tune and profit of millions of dollars, we would have to think long and hard, given Newman, whether to prosecute a person like that," Bharara said.


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Religious clerks in Kentucky follow law, but see conflict

Legal Insight 2015/09/18 17:14   Bookmark and Share
Clerk Mike Johnston prays twice a day, once each morning and once each night, and asks the Lord to understand the decision he made to license same-sex marriage.

“It’s still on my heart,” said Johnston, whose rural Carter County sits just to the east of Rowan County, where clerk Kim Davis sparked a national furor by refusing to issue marriage licenses to gay couples, a decision that landed her in jail.

Johnston is one of Kentucky’s 119 other clerks, many of them deeply religious, who watched the Kim Davis saga unfold on national television while trying to reconcile their own faith and their oath of office. Sixteen of them sent pleading letters to the governor noting their own religious objections. But when forced to make a decision, only two have taken a stand as dramatic as Davis and refused to issue licenses.

And others say they find the controversy now swirling around their job title humiliating.

“I wish (Davis) would just quit, because she’s embarrassing everybody,” said Fayette County Clerk Don Blevins, whose office serves the state’s second-largest city, Lexington.

After the U.S. Supreme Court legalized gay marriage in June, Kentucky Gov. Steve Beshear ordered clerks across the state to issue licenses, launching them along markedly different paths. The clerk in Louisville, Bobbie Holsclaw, issued licenses that very day and the mayor greeted happy couples with bottles of champagne.

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Appeals court upholds convictions in Ohio slavery case

Legal Insight 2015/09/10 18:06   Bookmark and Share
A federal appeals panel has upheld the convictions and sentences of a couple charged with enslaving a mentally disabled woman in their northeast Ohio home for nearly two years through intimidation, threats and abuse.

The three-judge 6th U.S. Circuit Court of Appeals panel in Cincinnati agreed unanimously Tuesday that the federal charges were appropriate and that the prison sentences of at least three decades each were warranted.
A federal jury in Youngstown convicted Jessica Hunt and boyfriend Jordie Callahan last year on counts of forced labor, conspiracy to defraud the U.S. and conspiracy to illegally obtain prescription drugs.

Among other challenges in their appeal, the couple contended that the case should have been a state matter since federal forced labor prosecutions typically involve people brought to the U.S. for domestic servitude or sex trade.

The woman "was compelled to perform domestic labor and run errands for defendants by force, the threat of force, and the threat of abuse of legal process," Judge Eric Clay wrote.

"Because this is a distinct harm that is a matter of federal concern pursuant to the Thirteen Amendment, it matters little that defendants' conduct may have also violated various state laws," Clay wrote, citing the U.S. constitutional amendment that abolished slavery.

The couple was accused of holding the woman captive from early 2011 to late 2012. Prosecutors alleged that they threatened to harm the woman's young daughter if the woman did not do chores, shop and clean up after their pit bull dogs. The couple also used the dogs and a python to threaten the woman into complying, prosecutors said.

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Washington Supreme Court rules against Backpage.com

Legal Insight 2015/09/04 14:16   Bookmark and Share
The website Backpage.com may not be immune from state liability law and a lawsuit filed by three young girls who said they were sold as prostitutes on the website can proceed to trial, the Washington Supreme Court ruled Thursday.
 
In a 6-3 decision, the justices said the federal Communications Decency Act does not protect Backpage from state lawsuits because of allegations that the company didn't just host the ads, but helped develop the content.

"The plaintiffs before us have been the repeated victims of horrific acts committed in the shadows of the law," said Justice Steven Gonzalez, writing for the majority. "They brought this suit in part to bring light to some of those shadows: to show how children are bought and sold for sexual services online on Backpage.com in advertisements that, they allege, the defendants help develop."

The case should proceed because the girls have alleged facts that, if proved, would show that Backpage helped produce illegal content, the justices said.

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Inmate challenge to death sentence goes back to trial court

Legal Insight 2015/08/10 00:21   Bookmark and Share
A state death row inmate is going back to a north Mississippi courtroom to again fight for a new trial.

The Mississippi Supreme Court has ordered a Lowndes County judge to determine if the results of post-conviction DNA testing raise enough questions to justify a new trial for Eddie Lee Howard Jr. Howard, now 61, who was convicted and sentenced to death in the slaying of 84-year-old Georgia Kemp of Columbus. Evidence against him included bite marks on her body.

The Supreme Court, in the order signed Thursday by Chief Justice Bill Waller Jr., makes no specific mention of Howard's challenge to the bite mark evidence that the inmate argues is now widely discredited in legal circles.

Waller's order directs the trial court to hold a hearing to determine if Howard's arguments of newly discovered evidence including the results of DNA testing could "probably produce a different result or induce a different verdict if a new trial is granted."

The court's order does not disclose what the DNA testing revealed. Howard's attorneys argue in briefs that DNA results do not connect Howard to the crime.

Howard was convicted of raping and fatally stabbing Kemp in 1992. He was sentenced to death.





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