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Legal news from Friday, April 1, 2005 |


CT ex-governor Rowland begins prison sentence
Phillip Hong-Barco on April 1, 2005 4:05 PM ET

[JURIST] Former Connecticut Governor John G. Rowland [archived official website] arrived Friday at Loretto [official website], a minimum-security federal prison in Pennsylvania, to begin his year-long sentence for corruption of office. Rowland was sentenced two weeks ago [JURIST report] to one year in prison, four months of house arrest, three years probation, and an $82,000 fine after pleading guilty last December [JURIST report]. The federal Bureau of Prisons decided to place Rowland about 70 miles east of Pittsburgh, despite a recommendation by the sentencing judge for a prison outside of Boston, near his family. The former governor, who fell from power after a top aide disclosed to the FBI numerous payoffs received by the office, will be eligible for release in 10 months. AP has more.


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Corporations and securities brief ~ FBI investigates auto supplier Delphi
Amit Patel on April 1, 2005 4:02 PM ET

[JURIST] Leading Friday's corporations and securities law news, the FBI [official website] has announced it has started an investigation into auto supplier, Delphi Corp. [corporate website], over improper accounting at the firm. Delphi, which had launched an internal investigation into its accounting practices after receiving subpoenas from the SEC [official website] and Department of Justice (DOJ) [official website], announced last month that it had improperly accounted for cash payments to former parent General Motors Corp [corporate website]. Delphi said it improperly accounted for $237 million in payments made to GM in 2000 and was reviewing the timing of the release of $45 million of reserves in the first quater of 2002 and recognition of an $18 million payment received from a customer in the fourth quarter of 2000. The FBI is coordinating its investigation with the SEC, DOJ, and the United States Postal inspectors. The Detroit News has more.
In other news... - MBIA Inc. [corporate website], the world's biggest bond insurer, announced New York Attorney General Eliot Spitzer [official website] and the SEC have asked for new information about the company's accounting practices. MBIA said the requests were supplements to subpoenas sent last year related to accounting for advisory fees and reserves for claims. Investigators also asked for documents about MBIA reinsurer, Channel Reinsurance Ltd. Read the MBIA press release. Bloomberg has more.
- The SEC has accused ex-Councilman Anthony Sudol III, 44, of Gilroy, California, with insider trading relating to allegations he tipped off his two brothers, Michael Sudol and Richard Sudol to pending acquisitions when he worked as a high-level manager at Cisco Systems Inc. Read the SEC litigation release and complaint [PDF]. The San Francisco Chronicle has more.
- MCI Inc. [corporate website] announced it will reopen merger talks with invited Qwest Communications Inc. [corporate website] after Qwest had raised its bid to nearly $9 billion. MCI had agreed to Verizon Communication's [corporate website] bid of $7.5 billion earlier this week. Qwest has not commented on the move and it is unclear whether the company will stick to the April 5 deadline it had set for MCI to accept its offer. Read the MCI press release. AP has more.
- Japan and Mexico will follow the European Union [official website] and Canada in imposing higher taxes on certain US goods after Congress failed to repeal the Byrd Amendment [text]. Under a WTO [official website] ruling, which found the amendment to be illegal [JURIST story], Japan has the right to impose extra taxes totalling $116 million. The two countries have not decided against which goods they will retaliate. Bloomberg has more.
- A source close to the American Insurance Group (AIG) [corporate website] investigation said regulators are looking at up to 20 different transactions, and that more deals could be added to the list. Regulators are said to be looking at other parties to deals AIG has made. AP has more.
- Peter Berman, the former comptroller of sports retailer Just for Feet Incorporated, agreed to pay $51,000 to settle charges with the SEC that he participated in a scheme that inflated income at the company. Berman agreed to accept a ban to serve as an offer or director of a public company. AP has more.
Click for previous corporations and securities law news.


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DeLay slammed for threatening judiciary after Schiavo death
Alexandria Samuel on April 1, 2005 12:17 PM ET

[JURIST] New Jersey Democratic Senator Frank R. Lautenberg took House Republican leader Tom DeLay to task Friday for making anti-judicial remarks in the aftermath of Terri Schiavo's death that appeared to threaten some kind of recrimination. Clearly angered by the event and by the inaction of what he called in a news conference "an arrogant, out of control, unaccountable judiciary", Delay had released a statement [official text] that read, in part: Mrs. Schiavos death is a moral poverty and a legal tragedy. This loss happened because our legal system did not protect the people who need protection most, and that will change. The time will come for the men responsible for this to answer for their behavior, but not today. The US Supreme Court, a federal appeals court and a federal district court had all refused to intervene in the Schiavo case even after Congress had passed special legislation giving federal courts jurisdiction to review the case de novo. In his letter to DeLay, Lautenberg took exception to the comments and suggested that the Majority Leader might have broken the law by threatening federal judges, raising a sensitive issue only a few weeks after a federal judge's relatives were murdered in Chicago and a Georgia state judge was shot in an Atlanta courthouse.


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International brief ~ Zimbabwe elections said to fall short of standards
D. Wes Rist on April 1, 2005 12:15 PM ET

[JURIST] In Friday's international brief, reports filtering out of Zimbabwe [government website] following Thursday's national elections indicate that the vote is being heavily criticized. Foreign media have been continually denied access to the country, and domestic media are required to operate under tight governmental control. Opposition leader Morgan Tsvangirai [party profile], president of the Movement for Democratic Change [official website], has alleged that massive fraud had been committed by the government to ensure ruling party Zanu PF [official website] candidates were elected. President Robert Mugabe, head of hte Zanu PF party, has dismissed the allegations as 'ridiculous'. The US, UK, and Germany have all called the election process 'flawed', and have been joined by many international observer and human rights groups in calling on Zimbabwe to open its election process to more complete international scrutiny. South African election observers in Zimbabwe said that the entire process, while relatively peaceful, was carefully manipulated to such an extent that it could not be considered a 'free and fair election.' MDC has an election results section on their website. The Zimbabwe Election Support Networka collection of domestic NGOs and human rights groups, has an election resource page. JURIST's Paper Chase has continuing coverage of Zimbabwe. Zim Online has an updating elections results page. South Africa's News 24 has local coverge.
In other international legal news ... - South Korea [government website] announced Thursday that it would block any attempt by Japan to become a permanent member of the UN Security Council as has been suggested in the recent reform proposals [JURIST report] for the United Nations. South Korea's Ambassador to the United Nations Kim Sam-hoon said that Japan had not done as much as Germany to atone for its World War II crimes, and was not worthy of a permanent seat on the Council. South Korea announced its intent to hold an unofficial meeting in May with other UN member-states to find ways to block Japan's resolution to become a permanent member, currently scheduled for submission in June. Read the official South Korea press release. Chosun Ilbo has local coverage.
- The Royal Commission for Corruption Control in Nepal [government website] arrested three government officials Thursday on charges of receiving bribes and obtaining property in an illegal manner while in public office. The Commission, created by the Royal government [JURIST report, second story] following the February 1 state of emergency declaration, has the power to investigate, charge, and try any government officials it finds engaging in corruption in office. The Commission also questioned several dozen other members of of various government agencies in its ongoing investigations. JURIST's Paper Chase has continuing coverage of Nepal. Kantipur Online has local coverage.
- Czech Prime Minister Stanislav Gross [official profile] survived a vote of no-confidence Friday in the Chamber of Deputies [government website] that would have required new national elections for Prime Minister. The vote was initiated by the Christian-Democrats party [official website] of the Czech Republic, which was upset about details released concerning Gross' financial affairs. Reports indicated that Gross accepted financial incentives from his family to pass favorable business laws, and that Gross was financially involved in a brothel run by his wife's business partner. Gross avoided being removed mainly because the Unreformed Communist Party [official website in Czech] refused to vote against him. The Prague Post has local coverage of the allegations leading to the no-confidence vote. BBC News has more.


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Legal agenda and live webcasts ~ Friday, April 1
Chris Buell on April 1, 2005 12:01 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Friday, April 1.
The US Senate and US House [official websites] are in recess until April 4.
The American Society of International Law is presenting a speech by US Supreme Court Justice Ruth Bader Ginsburg [Oyez profile] on the use of a comparative approach in constitutional adjudication. Watch a live webcast of the address at 4:30 PM ET via C-SPAN.
The Heritage Foundation is holding a forum titled "End of the Euro-China Honeymoon? Why Europe Is Rethinking the Arms Embargo," at 10 AM ET. Watch a live webcast of the event.
At the UN, an ad hoc committee established by the General Assembly is scheduled to adopt a draft international convention to suppress acts of nuclear terrorism, and Secretary-General Kofi Annan is expected to give an address. Watch a live webcast at 11 AM ET. Also today, Human Rights Committee Chair Christine Chanet will give a brief on the Committee's 83rd session. Watch a live webcast at 11:15 AM ET.
At the International Criminal Tribunal for the Former Yugoslavia, the trial of Fatmir Limaj and others [ICTY case backgrounder] continues today at 9:30 PM local time [3:30 AM ET]. Also today, Ljube Boskoski [initial indictment] will make an initial appearance before the tribunal at 2:45 PM local time [8:45 AM ET]. Watch a webcast of proceedings.


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