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Supreme Court declines to review insider trading case
Blog Updates |
2015/10/04 13:33
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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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Connecticut court stands by decision eliminating execution
Blog Updates |
2015/10/01 13:32
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The Connecticut Supreme Court on Thursday stood by its decision to eliminate the state's death penalty, but the fate of capital punishment in the Constitution State technically remains unsettled.
The state's highest court rejected a request by prosecutors to reconsider its landmark August ruling, but prosecutors have filed a motion in another case to make the arguments they would have made if the court had granted the reconsideration motion.
Lawyers who have argued before the court say it would be highly unusual and surprising for the court to reverse itself on such an important issue in a short period of time, but they say it is possible because the makeup of the court is different. Justice Flemming Norcott Jr., who was in the 4-3 majority to abolish the death penalty, reached the mandatory retirement age of 70 and was succeeded by Justice Richard Robinson.
In the August decision, the court ruled that a 2012 state law abolishing capital punishment for future crimes must be applied to the 11 men who still faced execution for killings committed before the law took effect. The decision came in the case of Eduardo Santiago, who was facing the possibility of lethal injection for a 2000 murder-for-hire killing in West Hartford.
The 2012 ban had been passed prospectively because many lawmakers refused to vote for a bill that would spare the death penalty for Joshua Komisarjevsky and Steven Hayes, who were convicted of killing a mother and her two daughters in a highly publicized 2007 home invasion in Cheshire.
The state's high court said the death penalty violated the state constitution, "no longer comports with contemporary standards of decency," and didn't serve any "legitimate penological purpose." The majority included Norcott and Justices Richard Palmer, Dennis Eveleigh and Andrew McDonald, the same four justices that rejected the prosecution's reconsideration request Thursday.
Chief Justice Chase Rogers and Justices Peter Zarella and Carmen Espinosa bashed the majority in the Santiago case, accusing the other four justices of tailoring their ruling based on personal beliefs. The three dissenting justices also were in favor of the prosecution's motion to reconsider.
Chief State's Attorney Kevin Kane had said the majority justices unfairly considered concerns that had not been raised during Santiago's appeal and denied prosecutors the chance to address those concerns. He said prosecutors have filed briefs in the still-pending death penalty appeal of Russell Peeler Jr., raising the same issues they did in the motion for reconsideration in the Santiago case.
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Religious clerks in Kentucky follow law, but see conflict
Blog Updates |
2015/09/18 16:55
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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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Michael Jackson’s doctor pleads not guilty
Blog Updates |
2015/07/06 14:08
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Michael Jackson’s doctor pleaded not guilty Monday to involuntary manslaughter in the death of the pop star at a brief hearing that had all the trappings of another sensational celebrity courtroom drama.
Dr. Conrad Murray, accused of giving Jackson a fatal dose of an anesthetic to help him sleep, appeared in court in a gray suit and burgundy tie as Jackson’s father Joe, mother Katherine, and siblings LaToya, Jermaine, Tito, Jackie and Randy watched from courtroom seats behind prosecutors.
Neither Murray nor the Jacksons showed much emotion as the six-foot-five Murray entered his plea through his attorney Ed Chernoff, but as he emerged from court, Joe Jackson declared, “My son was murdered.”
“We need justice,” he added before leaving with family members in a fleet of Cadillac Escalades.
On Monday night, Joe Jackson told CNN’s Larry King that he doesn’t believe Murray is the only person responsible for his son’s death. “To me, he’s just the fall guy. There’s other people I think involved with this whole thing,” Joe Jackson said, without elaborating.
Joe Jackson also told King his son believed his life was in danger. “Michael said it himself that he would be killed,” Joe Jackson said. “He even told his kids that he would be murdered.”
Earlier, several people shouted “murderer” as Murray walked past a crowd of hundreds of reporters and Jackson fans on his way to a courthouse adjacent to Los Angeles International Airport. Others held signs urging “Justice For Michael.”
Murray, 56, a Houston cardiologist who was with Jackson when he died June 25, entered his plea just hours after he was charged.
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Court allows hotly disputed discount contact lens price law
Blog Updates |
2015/06/11 17:27
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A federal appeals court ruling has cleared the way for discount contact lens retailers to drop prices while a legal battle is waged between the state of Utah and manufacturers who want to impose minimum prices on their products.
The decision handed down from the 10th Circuit Court of Appeals in Denver on Friday comes after three of the nation's largest contact lens manufacturers sued to halt a hotly contested law.
Supporters, including Utah-based discount seller 1-800 Contacts, say the newly enacted legislation bans price fixing for contact lenses. But opponents, including Alcon Laboratories, Johnson & Johnson and Bausch & Lomb, say it's a brazen overreach that allows discount sellers to violate interstate commerce regulations and skirt industry price standards.
Utah's attorney general has said the companies are wrongly driving up prices, and the law is a legitimate antitrust measure designed to enhance competition and help customers. Attorney General Sean Reyes' office didn't have a comment on the decision Friday.
The ruling allows the law to go into effect while a legal battle over the measure works its way through the courts. The appeals court did agree to fast-track the case and new briefs are due in the case later this month.
Donna Lorenson, a spokeswoman for Alcon, says the company is "extremely disappointed" and maintains the law violates interstate commerce rules.
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Pandora loses to BMI in court hearing, vows to appeal
Blog Updates |
2015/05/15 11:26
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Pandora Media Inc. lost a court hearing Thursday in a dispute with music publishing rights group BMI over royalty rates, but the Internet streaming leader said it will appeal.
Pandora said it's confident it can win later since the appeals court — the 2nd U.S. Circuit Court of Appeals in New York — last week ruled in its favor in a case against the other major publishing group known as ASCAP.
Thursday's ruling would force Pandora to pay 2.5 percent of its revenue to songwriters and music publishers, up from 1.75 percent. Last week's appeals court ruling allowed Pandora's 1.85 percent rate to ASCAP to stay intact.
If the appeal fails, Pandora says its costs could rise by 0.8 percent of revenue, which would have amounted to about $1.7 million last quarter.
BMI called the ruling a victory for the more than 650,000 songwriters, composers and publishers it represents.
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Court mulls trial in absentia for Hariri case
Blog Updates |
2011/10/15 10:06
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A panel of judges at a U.N.-backed court investigating the 2005 assassination of former Lebanese Prime Minister Rafik Hariri will consider whether to stage a trial in absentia for four Hezbollah members accused in the slaying.
The suspects were indicted earlier this year, but Hezbollah has refused to arrest them and send them for trial in the Special Tribunal for Lebanon's purpose-built courtroom.
The court said in a statement Monday that a pretrial judge preparing the case has asked trial judges to determine whether proceedings in absentia should be initiated against the four men.
Iranian-backed Shiite militia Hezbollah denies involvement in the Feb. 14, 2005, truck bombing that killed Hariri and 22 others, including the suicide bomber, in Beirut. |
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