Citigroup ex-VP arrested in NYC on fraud charges
Headline Legal News | 2011/06/27 20:34
A former Citigroup vice president embezzled $19.2 million from the bank in a one-man "inside job" involving a series of secret money transfers, federal prosecutors said Monday.

Gary Foster, 35, of Englewood Cliffs, N.J., surrendered Sunday at John F. Kennedy International Airport after arriving on a flight from Bangkok. He was released Tuesday on $800,000 bond after appearing in federal court in Brooklyn to face bank fraud charges carrying a maximum penalty of 30 years in prison.

Foster had been traveling in Southeast Asia when he received word of the case, defense attorney Isabelle Kirshner said after the court appearance.

"As soon as he became aware they were looking for him, he voluntarily contacted the FBI and arranged to return," Kirshner said.

Officials at Citigroup Inc. — where Foster was vice president of the treasury finance department until quitting in January — said in a statement that they were "outraged by the actions of this former employee" and hoped to see him "prosecuted to the full extent of the law."

Foster "used his knowledge of bank operations to commit the ultimate inside job," U.S. Attorney Loretta Lynch said in a statement.

According to a criminal complaint, Foster's department financed loans and processed wire transfers within Citigroup. From May 2009 through the end of last year, Foster siphoned funds from various Citigroup accounts, placed them in the bank's cash account and then wired the money into his private account at another bank in New York, the complaint alleged.

In one November 2010 transaction, Foster wired $3.9 million from a Citigroup fund in Baltimore to his New York account, the complaint says. That fraudulent transfer and seven others went undetected until a recent internal audit, it said.


Wis. Gov: Supreme Court needs to resolve discord
Headline Legal News | 2011/06/27 20:33
Gov. Scott Walker took the state Supreme Court justices to task Monday, saying their infighting has to end for the sake of public confidence in the court. His comments came after a liberal member of the court accused a conservative justice of putting her in a chokehold — a charge he has denied.

Speaking on WTMJ radio, Walker said that regardless of a person's political beliefs, "there's got to be confidence that the people on the court can rationally discuss and debate" issues.

Justice Ann Walsh Bradley told the Milwaukee Journal Sentinel that Justice David Prosser tried to choke her during an argument in her office on June 13, the day before the court handed down a decision upholding a new law eliminating most public employees' collective bargaining rights. Walker had pushed the polarizing proposal, saying state and local officials needed more flexibility to deal with the state's deficit and coming budget cuts.

Dane County Sheriff David Mahoney said in a statement Monday that his office has opened an investigation into the incident at the request of Capitol Police Chief Charles Tubbs, who had jurisdiction because the argument took place in the state Capitol.

Tubbs said in a statement he asked the sheriff to handle the matter after consulting with "members of the Supreme Court." He did not elaborate, and a spokeswoman for the agency that oversees the Capitol Police didn't immediately respond to a message.


Pa. appeals court upholds $188M Wal-Mart verdict
Headline Legal News | 2011/06/24 19:21
A $188 million class-action verdict against Wal-Mart Stores Inc. and Sam's Club over payment to employees for rest breaks and off-the-clock work was upheld Friday by a Pennsylvania appeals court.

A three-judge Superior Court panel said there was sufficient evidence at trial to conclude there had been a breach of contract, unjust enrichment and violations of state labor laws.

The judges also ruled in a 211-page opinion that the presiding Philadelphia judge erred in determining some of the plaintiffs' legal fees, and sent that part of the case back for recalculation.

The 2006 trial, which lasted 32 days, resulted in a finding that Wal-Mart did not pay employees for all the work they performed and did not let them take their paid, mandatory rest breaks, the judges wrote. The court awarded $46 million in attorneys' fees.

Wal-Mart spokesman Greg Rossiter said the retail giant believes the court decision was wrong in a number of respects and looks forward to additional review in the courts.


Va suit settled over coalbed methane rights
Headline Legal News | 2011/06/24 18:21
Southwest Virginia landowners have reached a $3.4 million tentative settlement in a class-action lawsuit over coalbed methane rights.

The Bristol Herald Courier reports Wednesday's settlement would be split among 1,850 landowners.

The federal lawsuit alleged that Chesapeake Energy Corp. subsidiary Chesapeake Appalachia underpaid royalties to landowners for decades.

The settlement will be made final at a hearing Oct. 4.

Other similar class-action lawsuits are pending in federal court in southwest Virginia involving CNX Gas Co. and EQT Production Co.


Casino owner cited in complaint against Ala. judge
Headline Legal News | 2011/06/23 05:21
A casino owner accused of buying votes in Alabama for pro-gambling legislation is cited in a judicial complaint against a former state judge, who's accused of letting a gambling lobbyist bankroll her re-election campaign while she was handling a custody dispute involving the casino owner's grandchildren.

An attorney for VictoryLand casino owner Milton McGregor said Tuesday that he did nothing wrong and the complaint filed against former District Judge Patricia Warner of Montgomery is based on errors.

"It's reckless and somebody is going to have to answer for that," defense attorney Joe Espy said Tuesday outside the federal courthouse.

The 72-year-old McGregor is in the third week of a trial where he and eight others are accused of buying and selling legislators' votes for pro-gambling legislation with campaign contributions. The legislation was designed to keep McGregor's now-closed VictoryLand casino in Shorter operating.

Late Monday afternoon, the state's Judicial Inquiry Commission filed a complaint against Warner, a Democrat who resigned unexpectedly last week less than six months into her second term. The 74-count complaint accuses Warner of judicial misconduct in several cases, including the one involving an effort by McGregor's former son-in-law to regain visitation rights with McGregor's grandchildren.

The complaint will be heard by the Alabama Court of Judiciary, which can sanction her if it finds her guilty of misconduct and impose financial penalties. A spokesman for the state pension system said Warner qualifies for state retirement benefits. The amount was not immediately available.


Court says age must be considered in interrogation
Headline Legal News | 2011/06/20 11:13

A divided Supreme Court said Thursday that police and courts must consider a child's age when examining whether a boy or girl is in custody, a move the court's liberals called "common sense" but the conservatives called an "extreme makeover" of Miranda rights.

The 5-4 decision came in a case in which police obtained a confession from a seventh-grade special education student while questioning him at school about a rash of break-ins in Chapel Hill, N.C., without reading him his Miranda rights, telling him he could leave or call his relatives.

Justice Sonia Sotomayor, a former prosecutor who wrote the opinion, said police have to consider the child's age before talking to him or her about a crime. Courts also have to take the child's age into consideration when deciding whether that confession can be used in court, she said.

"It is beyond dispute that children will often feel bound to submit to police questioning when an adult in the same circumstances would feel free to leave," Sotomayor said, adding there was no reason for "police officers or courts to blind themselves to that commonsense reality."

But Justice Samuel Alito, also a former prosecutor, said the point of Miranda was that police would have clear, objective guidelines to follow. Opening the door to considering age likely will mean that other characteristics could soon be added to the list, such as educational level, I.Q. and cultural background, he said.

"Safeguarding the constitutional rights of minors does not require the extreme makeover of Miranda that today's decision may portend," Alito said in the dissent.

The special education student, known as JDB in court papers, was 13 in 2005 when he confessed while interviewed by police and school officials in a closed room at his school.




2 ex-judges, lawyer back to prison in Miss scheme
Headline Legal News | 2011/06/14 02:10
Two ex-judges and an attorney from Mississippi must return to federal prison for their convictions in a loan scheme.

A federal appeals court had vacated their bribery convictions but upheld the guilty verdicts on corruption charges. So they needed to be resentenced.

U.S. District Judge Henry T. Wingate denied requests by Paul Minor and former Harrison County judges Wes Teel and John Whitfield to be re-sentenced to time they have already served.

Wingate on Monday sentenced Minor to eight years, Teel to four and Whitfield about six — all less than previous.

Prosecutors said Minor would guarantee loans for the judges, then used cash and third parties to pay off the debts. Judges then ruled in his favor in civil cases. He has long said he is innocent and was making loans to help friends.


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