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Legal news from Monday, October 4, 2004 |
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Corporations and securities brief ~ SEC considers more charges against AIG
Amit Patel on October 4, 2004 5:04 PM ET

In Monday's corporations and securities law news, the SEC is considering bringing charges against American International Group, Inc. (AIG) over three company press releases which included false and misleading statements about the company's involvement with PNC Financial Services Group, Inc. AIG is already facing a possible lawsuit by the SEC and Justice Department over helping PNC in hiding bad loans. Read the AIG press release announcing the SEC notification here. Read the press release announcing the Justice Department notification here [PDF]. Reuters has more.
In other news...
- Former Enron accountant, Eric Boyt, testified that he thought the Nigerian barge deal was wrong from the beginning. In more news from the trial, defense lawyers are contemplating calling former Enron CFO Andrew Fastow to testify. Fastow is now a government cooperating witness after agreeing to plead guilty to two counts of conspiracy in January. AP has more.
- In a follow-up to a story I reported last week on JURIST's Paper Chase, former PeopleSoft Inc. Chief Executive Craig Conway was fired last week after PeopleSoft's directors learned that Conway testified that he intentionally misled investors when he told analysts in September 2003 that Oracle's $7.7 billion hostile takeover bid was no longer chasing away customers. Bloomberg has more.
- The US Supreme Court, without comment, rejected appeals by Visa and MasterCard from a ruling which said the credit card associations violated federal antitrust law by barring their member banks from issuing credit cards to its main rivals. View the Appeals Court decision in this case here [PDF]. The Financial Times has more.
- In moves which should tighten its accounting controls, Freddie Mac announced that it is shutting down some of its debt-securities sales division. Read the Freddie Mac press release here. AP has more.
- Office Depot Inc. has announced the resignation of Chairman and Chief Executive Officer Bruce Nelson. Read the Office Depot press release here. Reuters has more.
Click for previous corporations and securities law news


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Jury selection delayed for trial of former AL governor
Russell Adkins on October 4, 2004 2:53 PM ET

While a federal judge reviewed evidence behind a conspiracy charge in the case, jury selection was delayed Monday in the trial of former Alabama Gov. Don Siegelman, who is facing charges that he tried to defraud Medicaid with others in 1999, his first year in office. Siegelman, whose re-election bid was defeated in 2002, has called the charges politically-motivated attacks by Republican opponents.
Siegelman, former chief of staff Paul Hamrick, and Phillip Bobo, a physician, are charged with trying to fix bids so that Bobo's company could secure contracts to provide health care to poor pregnant women in rural areas of the state. The Montgomery Advertiser has more on the delay, and provides background information on the case.


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International brief ~ Dutch soldier in court-martial for killing Iraqi civilian
D. Wes Rist on October 4, 2004 1:49 PM ET

The prosecution of a Dutch soldier charged with negligently causing the death of an Iraqi civilian ended Monday with the prosecutor requesting a six month suspended sentence for Sergeant Major Eric Overvoorde. Overvoorde reportedly fired three warning shots when he believed his unit to be in jeapordy from an increasingly hostile crowd that had come to pick up aid from supply containers. Overvoorde is the first Dutch soldier court-martialed in relation to Iraq, and is believed to be the first Dutch soldier ever to be court-martialed for offences commited on foreign soil. The Khaleej Times has more. In other international law news...
- A defense panel in Japan recommended Monday that the Japanese government pursue options for making itself capable of pre-emptive attacks, a radical shift in the country's defense-only policy in place and enshrined in the Japanese constitution since the end of Allied occupation after World War II. The recommendation came from a panel composed of academics and businessmen with heavy political weight in the Japanese political system. The report stated that recent action in the world had shown pre-emptive strikes to be a valid extension of the customary international law on self-defense. The recommendation comes just one day after Taiwanese Premier Yu Shyi-kun stated his belief that Japan, Taiwan, and the US should create a defense alliance to deal with possible threats in the area, such as North Korea and mainland China. The Kyodo News has more on the Japanese panel here. The Taipei Times has more on Yu's statement here.
- Kenyan officials have suspended Meru Prison Warden Silas M'tambu and Deputy Warden Benedict Mutunga Monday after autopsies revealed that five inmates that died in September were beaten to death. At first, the government claimed the men died from suffocation, due to the extreme overcrowding of Kenyan prisons that often have dozens of men sharing a cell meant for two. But post-mortem exams revealed that the men suffered extreme amounts of damage to their bodies consistent with being beaten. The government has promised to proceed with full investigations and prosecutions, and a local NGO, the Independant Medico-league Unit has promised to sue the government on behalf of the victim's families. From Nairobi, Kenya's Daily Nation has more (registered site).
- The UN Security Council will meet later Monday to discuss the current situation in Gaza. The request came from current Council member Algeria, following a request presented to the Algerian representative by the Arab League. Israel maintains that its military action in the region is a response to continuing suicide bombing attacks carried out by Hamas and other terrorist organizations that use the Gaza region as a planning and staging area. UN Observer has more.


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Environmental brief ~ EPA completes Love Canal cleanup, removes it from Superfund list
Tom Henry on October 4, 2004 12:10 PM ET

In Monday's environmental law news, the EPA has removed the infamous Love Canal site in Niagara County, New York from the Superfund National Priorities List. The Love Canal area was a site for hazardous waste dumping from 1942-1952, after which the waste was covered by dirt and houses were constructed in the area. After residents complained of odors, studies in the 1970's showed that toxic chemicals were contaminating the local water supply. By 1980 over 950 families had been evacuated from homes around the site, and problems there were one of the main factors leading to passage of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), also known as Superfund, which serves to handle abandoned hazardous waste sites. The EPA has completed cleanup work at the Love Canal site and monitoring studies show that the cleanup goals have been reached. The press release is here. Details on cleanup at the site is here [PDF]. The University of Buffalo has additional Love Canal documentation here.
In other environemental law news...
- The India Supreme Court has directed that about 105,000 survivors of one of the world's worst industrial disasters each receive between US$545 and $1200. On December 3, 1984 more than 40 tons of poisonous gases escaped from a Union Carbide pesticide factory in Bhopal instantly killing 8,000 people. The case was settled by Union Carbide (now Dow Chemical) in 1989 through a survivor payment fund set up by the Indian government. However, litigation has persisted for years regarding how the money should be disbursed. The Calcutta Telegraph has more.
- The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) conference began on Saturday in Bangkok, Thailand and runs though October 14th. This meeting of 166 member nations will update trade regulations on plants and animals, and will include taking action on some 50 proposals. A press release on the conference and the proposals is here [PDF]. Daily news coverage from the conference can be found here.


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Legal agenda and live webcasts ~ Monday, October 4
Jeannie Shawl on October 4, 2004 7:30 AM ET

Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Monday, October 4.
The US Supreme Court's 2004 term begins today with 10 AM ET oral arguments in Kansas v. Colorado (case summary from Duke Law School), where the court will consider exceptions filed by Kansas to the Court-appointed Special Master's report investigating allegations that Colorado violated the Arkansas River Compact. The ABA provides merit briefs filed in the case.... The Court will also hear arguments in Kowalski v. Tesmer (case summary from Duke Law School), where the court will decide whether the Fourteenth Amendment guarantees an indigent criminal defendant, convicted by a guilty plea, the right to appellate attorney in a discretionary appeal and also whether attorneys have third-party standing to challenge the constitutionality of state statutes prohibiting such appointments. The ABA provides merit briefs filed in the case.... Finally, the Court will two-hour arguments in the consolidated cases of United States v. Booker and United States v. Fanfan (case summary from Northwestern University's Medill School of Journalism), where the court will consider the constitutionality of the federal sentencing guidelines in light of its decision last term in Blakely v. Washington [PDF]. The ABA provides merit briefs. The Washington Post has more on the sentencing cases and a preview of the new term. The National Chamber Litigation Center of the US Chamber of Commerce offers an additional preview of business cases on the Court's docket, featuring former Solicitor General Theodore Olson and former Acting Solicitor General Walter Dellinger. Watch recorded video of the press briefing.
In other US courts, the trial of former Alabama governor Don Siegelman begins with jury selection Monday. Siegelman faces federal charges for conspiracy, health care fraud and theft for allegedly trying to rig bids on contracts to provide medical care to pregnant women in rural Alabama. AP has more.
On Capitol Hill, the US Senate will meet at 10 AM ET and will resume consideration of the Intelligence Reform Bill (S 2845). Watch a live webcast (via C-SPAN).... The US House Rules Committee will meet at 5 PM ET to discuss a bill to create additional federal court judgeships (S 878).... A US Senate-House Conference Committee will meet at 7 PM ET to discuss the American Jobs Creation Act of 2004 (HR 4520).
The UN Security Council will hold closed consultations at 10 AM ET to discuss the Council's program of work for October and threats to international peace and security caused by terrorist acts. The Security Council President will hold a 12:30 PM ET press conference on the October work program. Watch a live webcast.
In Warsaw, the Organization for Security and Cooperation's Human Dimension Implementation Meeting opens Monday and continues for two weeks. Key issues to be discussed include the promotion of non-discrimination, freedom of assembly and association, right to a fair trial, trafficking in human beings, and cooperation between international organizations promoting human rights. Read the conference's agenda [PDF].
Also abroad today, nine British law lords will consider whether the UK anti-terror law under which foreign suspects can be held indefinitely without charge is contrary to the European convention on human rights, guaranteeing a right to trial within a reasonable time. JURIST's Paper Chase has background and the Guardian has more.... In Fiji, a court-martial of 64 soldiers is scheduled to resume Monday. The soldiers face trial for their part in a May 2000 coup. Former Prime Minister Sitiveni Rabuka is scheduled to appear as a witness.... In Nigeria, the country's largest-ever fraud trial will begin as three defendants face 98 counts of "advance fee fraud" for allegedly duping a corrupt Brazilian bank official into sending them $242 million dollars from his employer's accounts.


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