Ex-Pa. House speaker pleads guilty to corruption
Areas of Focus | 2011/09/07 15:44
The onetime speaker of the Pennsylvania House of Representatives pleaded guilty Wednesday to eight criminal charges stemming from a public corruption investigation, making him the highest-ranking state politician to be convicted in the four-and-a-half-year inquiry.

Ex-Rep. John M. Perzel entered the plea to two counts of conflict of interest, two counts of theft and four counts of conspiracy. He left the courthouse without commenting, but apologized in an e-mailed statement and said he bore responsibility for improprieties in spending public funds he controlled.

"It was up to me to see that taxpayer funds were spent only for the betterment of the people of Pennsylvania, and not for my political benefit (or) that of my party," Perzel said in the news release.

Prosecutors have described Perzel, 61, as being at the center of a scheme to spend millions of taxpayer dollars on computer technology for the benefit of GOP political campaigns.

Also Wednesday, his nephew and co-defendant Eric S. Ruth, 36, pleaded guilty to conspiracy and conflict of interest. Ruth once worked in the House Republican technology office.


Shareholder class action hits Leighton
Areas of Focus | 2011/09/01 16:44
Shareholders set to take legal action against Leighton over alleged failures to properly report a $907 million turnaround in financial performance.

Law firm Maurice Blackburn on Thursday said it intended to launch a class action against the company, alleging Leighton breached continuous disclosure obligations as set out in the Corporations Act.

On April 11 this year, the Leighton announced it was expecting to post a loss of $427 million for the 2010/11 financial year, a turnaround from a $480 million profit in 2009/10.

The announcement came after a review of its operations, which led to a $282 million drop in profit from its desalination plant project at Wonthaggi in Victoria, a before-tax loss of $430 million on the Brisbane Airport Link and a $295 million write-down on its equity in the Middle East-focused Habtoor Leighton Group.

Maurice Blackburn principal Andrew Watson said Leighton should have told the market about those write-downs by November 2, 2010, or, at the very latest, February 14 this year.

'Shareholders expect a company like Leighton to have proper risk management and internal reporting systems to ensure timely announcements are made when there are difficulties,' Mr Watson said.

Maurice Blackburn says it believes Leighton was seeking approval for design changes on the Brisbane Airport Link because of expected delays as early as April 2009.

Leighton also advised the market that construction of the Victorian desalination plant was on time at least five times between November 2010 and March 2011, Maurice Blackburn alleges.

In response to a query from the Australian Securities Exchange (ASX) several days after its announcement of the losses, Leighton said it informed the market of its expected losses as soon as it was aware of them.

'At all times, the company has been mindful of its continuous disclosure obligations,' Leighton secretary Ashley Moir said on April 18.

Last week, the Leightonboard terminated the contract of chief executive David Stewart, who took over from long-time chief executive Wal King in January.

That followed chairman David Mortimer's decision to depart the Leighton board a day earlier.


Group seeks appellate action on gays in military
Headline Legal News | 2011/09/01 16:43
The military's ban on openly gay troops will be lifted within weeks, but the policy can still be re-enacted in the future.

That's why a Republican gay rights organization that sued the Obama administration to stop enforcement of the policy says it will ask the 9th U.S. Circuit Court of Appeals on Thursday to declare the nearly 18-year-old law unconstitutional, affirming a lower court's ruling last year.

With several Republican presidential candidates, including Rep. Michele Bachmann, indicating they would favor reinstating the ban if elected, such a ruling is needed, said Dan Woods, the attorney for the Log Cabin Republicans. Declaring the law unconstitutional would also provide a legal path for thousands discharged under the policy to seek reinstatement, back pay or other compensation for having their careers cut short, Woods said.

"The repeal of 'don't ask, don't tell' doesn't say anything about the future," Woods said. "It doesn't (explicitly) say homosexuals can serve. A new Congress or new president could come back and reinstitute it. We need our case to survive so there is a constraint on the government to prevent it from doing this again."

During her campaign stop in Iowa in August, Bachmann told interviewer Candy Crowley on CNN's "State of The Union" when asked whether she would reinstitute the law: "It worked very well and I would be in consultation with our commanders, but I think, yes, I probably would."

Justice Department attorneys have filed a motion asking the appeals court to dismiss the case, arguing that the repeal process that will lift the ban Sept. 20 makes the lawsuit irrelevant.

The Log Cabin Republicans successfully won an injunction by U.S. District Judge Virginia Phillips last year that halted enforcement of "don't ask, don't tell" briefly, before the 9th Circuit reinstated it.


Colombia court reinstates conviction in Galan hit
Legal Topics | 2011/09/01 09:43
The Supreme Court on Wednesday reinstated the murder conviction of a former justice minister for masterminding the 1989 assassination of presidential candidate Luis Carlos Galan, a courageous foe of drug cartels.

The court also reinstated the 24-year prison sentence a lower court imposed in 2007 on Alberto Santofimio, who was widely considered the "political godfather" of the late cocaine kingpin Pablo Escobar.

Hitmen employed by Escobar killed Galan, and a key witness in Santofimio's trial said he saw the defendant urge Escobar to order the murder.

"Kill him, Pablo," testified John Jairo Velasquez, or "Popeye," who was Escobar's chief henchman at the time and has confessed to organizing the assassination.

Santofimio, a senator who had been justice minister in the 1970s, was at the time a rival of Galan for the Liberal Party's presidential nomination.

The Aug. 18, 1989, assassination badly traumatized a nation already reeling from a terror campaign by Escobar's henchmen, who killed hundreds of judges, journalists and police. Escobar also targeted civilians with car bombs, even blowing up an airplane in midflight.

The drug kingpin was trying to pressure Colombia's leaders not to extradite drug lords to the United States. Nonetheless, Galan, the presidential frontrunner when he was killed, promised to battle the narcos with extradition.


Court to hear appeal over medicating Loughner
Legal Topics | 2011/08/30 16:22
An appeals court will hear arguments Tuesday over a request to permanently ban prison officials from forcibly medicating the Tucson shooting rampage suspect with psychotropic drugs.

At issue in Jared Loughner's appeal before the 9th Circuit Court of Appeal is whether prison officials or a judge should decide whether a mentally ill person who poses a danger in prison should be forcibly medicated.

Prosecutors say the decision is for prison officials to make, while Loughner's lawyers say it's up to a judge.

Loughner pleaded not guilty to 49 charges in the Jan. 8 shooting that killed six people and wounded 13 others, including Rep. Gabrielle Giffords.

He has been at a Missouri prison facility since late May in a bid to make him mentally fit to stand trial.


Court approves Harry and David reorganization plan
Legal Topics | 2011/08/30 16:22
Harry & David will emerge from bankruptcy protection in the middle of September, the specialty foods company said Tuesday, after its plan for reorganization was approved in court.

The emergence will likely occur on or around Sept. 13, giving the company plenty of time to ramp up for the crucial holiday season.

Kay Hong, the interim CEO who is heading the restructuring, said that Harry and David is returning as a stronger company that is better positioned for long-term profitable growth. The restructuring plan was approved by the United States Bankruptcy Court for the District of Delaware

With consumer priorities reshuffled during the recession, the demand fruit basket and gourmet gifts evaporated. Harry & David entered Chapter 11 bankruptcy protection in March.

Hong said the company looks forward to the holiday season with strong lineup of new products and plans "to deliver a terrific gift experience and unparalleled customer service as Harry & David has done for generations."

Harry & David Holdings Inc., based in Medford, Ore., sells under the Harry & David, Wolferman's and Cushman's brands online and in stores.


Judge to hear arguments over Loughner's medication
Areas of Focus | 2011/08/27 17:04
Attorneys for the Tucson shooting rampage suspect are making another attempt to stop the forced medication of their client at the Missouri prison facility where mental health experts are trying to make him psychologically fit to stand trial.

A federal judge will hear arguments Friday over a request by Jared Lee Loughner's defense team to halt the pychotropic drug medications.

U.S. District Judge Larry Burns rejected a similar request by Loughner's attorneys in late June. The 9th Circuit Court of Appeal halted the medication but later allowed it to resume after prison officials determined Loughner's outbursts there posed a danger.

Loughner has pleaded not guilty to 49 charges in the Jan. 8 shooting that killed six people and wounded 13 others, including Rep. Gabrielle Giffords.

He has been at a federal prison facility in Springfield, Mo., since late May after mental health experts determined he suffers from schizophrenia. A judge ruled him mentally unfit to stand trial.


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