Defendant pleads guilty in NJ in $880M fraud case
Legal Topics | 2010/09/16 15:55

A Florida man known for his sports-related philanthropy pleaded guilty Wednesday to running a multistate Ponzi scheme that prosecutors say left investors with up to $100 million in losses.

Nevin Shapiro pleaded guilty in New Jersey federal court to one count of securities fraud and one count of money laundering as part of an agreement that still has him facing up to 17 years in prison at his Jan. 4 sentencing.

Prosecutors say 41-year-old Shapiro of Miami Beach, used a Florida-based company called Capitol Investments, USA, Inc., to raise nearly $900 million from investors who thought they were buying into a wholesale grocery distribution business.

Charges filed by the Securities and Exchange Commission claim Shapiro promised investors risk-free annual returns as high as 26 percent by persuading them to invest in a "grocery diversion" enterprise — a practice of buying low-cost groceries in one region of the country and reselling them in higher-priced markets.

Shapiro allegedly siphoned at least $35 million of the proceeds for personal use, including $23 million for salaries and commissions for himself, $5 million for a Miami Beach mansion and $400,000 for courtside Miami Heat basketball tickets. He also spent lavishly on luxury cars, a high-stakes gambling habit, and a pair of diamond-studded handcuffs given to an unnamed prominent athlete, according to court documents.



Officials rescue 37 immigrants from Calif. house
Legal Topics | 2010/09/09 10:33

Immigration authorities have rescued more than three dozen immigrants who were locked inside a sweltering boarded-up bedroom in a Southern California house.

Immigration and Customs Enforcement officials said Wednesday some of the 37 immigrants from six Latin American countries had been held for weeks in the 10-by-10-foot room in Riverside and had gone several days without food.

The immigrants, mostly men, had been stripped of their shoes and were found lying on the floor. Three children under 3 years old were also found inside the room, said Debra Parker, assistant special agent in charge for ICE Homeland Security Investigations in Riverside.

Authorities say they began searching for the house after a caller reported smugglers had threatened to kill his relative when the family could not pay for his release. After scouring the area for two days, including with an infrared-equipped helicopter, officials searched the home Tuesday afternoon.

Smugglers often hold illegal immigrants in so-called drop houses for days or weeks while collecting payment for bringing them into the country.



Court won't force Calif officials to defend Prop 8
Legal Topics | 2010/09/02 22:11

A California court has refused to order Gov. Arnold Schwarzenegger and Attorney General Jerry Brown to appeal a ruling that overturned the state's gay marriage ban.

The 3rd District Court of Appeal on Wednesday denied a conservative legal group's request to force the officials to defend voter-approved Proposition 8.

Presiding Justice Arthur Scotland did not explain why the appeals court turned down the request filed two days earlier by the Pacific Justice Institute.

The institute now plans to take the matter to the California Supreme Court, Chief Counsel Kevin Snider said Thursday.

"We are disappointed that the appellate court showed indecisiveness in trying to prevent a constitutional crisis," Snider said. "They didn't want to deal with it."

The institute maintains the attorney general and governor have the duty to uphold all laws, not just those with which they personally agree.

Chief U.S. District Judge Vaughn Walker struck down Proposition 8 as unconstitutional last month.

The measure approved by 52 percent of California voters in November 2008 amended the state Constitution to outlaw same-sex unions five months after the state Supreme Court legalized them.

The state has until Sept. 11 to challenge Walker's ruling. Both Brown and Schwarzenegger have said they don't plan an appeal.



Thousands sign on for $10 billion BP suit
Legal Topics | 2010/08/30 16:08

The revelation that BP's Texas City refinery emitted toxic benzene for more than a month has ignited a furor in the port community that has suffered its share of deadly industrial accidents and toxic spills.

Thousands of residents who fear they may have been exposed to the known carcinogen released at the oil refinery from April 6 to May 16 have been flooding parking lots and conference halls where local trial attorneys hosted information sessions and sought clients for class-action lawsuits against the oil giant.

BP faces the new challenge just as it is reaching a key milestone in another crisis — plugging the Gulf of Mexico well that blew out in an oil spill disaster that is costing the company billions of dollars.

On Wednesday, more than 3,400 people lined the hallways and sidewalks around the Nessler Center to sign on to a $10 billion class-action lawsuit filed Tuesday in Galveston federal court by Friendswood attorney Anthony Buzbee.

The lawsuit alleges the release of 500,000 pounds of chemicals - including 17,000 pounds of benzene - has jeopardized the health and property values of people who live and work in the area. At the nearby College of the Mainland, a separate town hall meeting drew a crowd of 600.

"I've never seen anything like this," Buzbee said, looking at the lines waiting to enter a large room at the civic center where lawyers helped people fill out paperwork. "I can't believe this is mass hysteria and that everybody here is a faker," Buzbee said.

Webster-based lawyer Chad Pinkerton said he's met with about 8,000 residents over the past week. "I believe this is probably the largest prolonged release in Texas history and many, many people are sick," he said.

Word of the lawsuits spread this week, propelled in part by rumors that BP was cutting checks to head off the benzene claims from the $20 billion fund established to pay claims related to the oil spill.



Ruling overturning Prop 8 shaped for higher courts?
Legal Topics | 2010/08/23 16:14

When U.S. District Judge Vaughn Walker struck down California's Proposition 8—the 2008 ballot initiative to outlaw gay marriage—he said the motivation for the majority of voters was clear.

"The evidence shows conclusively that moral and religious views form the only basis for a belief that same-sex couples are different from opposite-sex couples," Walker wrote in his sweeping, 136-page decision announced August 4 in San Francisco. "These interests do not provide a rational basis for supporting Proposition 8."

In Walker's reasoning, religion amounts to a "private moral view," which should not infringe upon the constitutional rights of others. While some legal scholars say Walker's decision lands on firm legal ground—a law must advance a secular purpose to pass constitutional muster—some religious leaders accuse the judge of trying to scrub faith from the public square.

On August 5, Prop 8's supporters filed an appeal of Walker's decision. Jim Campbell, an attorney with the Alliance Defense Fund, a conservative Christian law firm involved in the litigation, said the religious freedom argument will play an important role as the case moves up the federal judicial ladder—including, potentially, the U.S. Supreme Court.



DUI Life Sentence Stirs Debate About Alcoholism
Legal Topics | 2010/08/17 18:28

Nobody disputes that driving under the influence of alcohol is dangerous. In fact, it's one of the most deadly crimes. You won't get any serious arguments from anybody that people should be allowed to drive while impaired. Nobody would dispute that you are far more likely to die at the hands of a DUI driver than at the hands of a serial killer or by gang violence.

The dispute is not about the problem of impaired driving, but rather about what to do about it. Every year, many states increase the jail time, fines and other penalties for DUI offenders. There is little evidence that increased punishment deters impaired driving. In fact, there's no conclusive evidence that suggests that the average would-be drunk driver even considers the penalties before turning on the ignition and hitting the road.

Most state lawmakers increase the penalties because it is politically popular to do so, and it’s the only thing they can think of doing. In most states, the average DUI convict spends no more than a day or two in jail for a first offense, and no longer than a year for a third offense. After that, the states have a tremendous range.

It seems for most offenders, a first, second or third DUI arrest is the wake-up call they need, and very few people get caught more than three times in their lifetime. In states such as Washington that have systems that treat and educate for alcohol and drug issues, there is a ray of hope that recidivism may be reduced. In states such as Arizona, where the focus is on punishment rather than treatment, DWI convictions often do little for a would-be repeat offender than take them off the road temporarily while they are incarcerated.



Nun's death rallies anti-immigration forces
Legal Topics | 2010/08/09 13:01

In Arizona, the shooting death of a rancher blew the lid off simmering anger over border security and helped solidify support for a tough new immigration law. A similar eruption threatens in Virginia following the death of a Catholic nun in a car accident involving a man in the country illegally and accused of drunken driving.

The Benedictine Sisters of Virginia tried to discourage using the death of Sister Denise Mosier as a "forum of the illegal immigration agenda" and pleaded for a focus on "Christ's command to forgive."

"The sisters' mission is peace and love," said Corey Stewart, chairman of Prince William County's Board of Supervisors. "My mission is law enforcement and the protection of public safety."

Prince William County, about 25 miles southwest of Washington, D.C., stepped up its immigration enforcement in 2007 amid explosive growth of its Hispanic and immigrant populations. Under Stewart's leadership, the county implemented a local policy requiring police to determine the immigration status of all people arrested on suspicion of violating state or local laws.



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