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Legal news from Friday, January 6, 2006 |
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Tyco says Abramoff funneled $1.6 million in company funds to himself
Joshua Pantesco on January 6, 2006 1:25 PM ET

[JURIST] A Tyco International [corporate website] spokesperson has said that Tyco was the defrauded "Company A" referred to in court documents released Tuesday as part of former lobbyist Jack Abramoff's guilty plea to fraud and conspiracy charges [JURIST report; plea agreement]. The criminal information [JURIST document] which prompted Abramoff's plea alleges that while working for law firm Greenberg Traurig, Abramoff failed to tell the firm or his client, now revealed as Tyco, that he owned a public relations company that he was pretending to negotiate with in order to save costs while personally pocketing $1.6 of the $1.8 million dollars Tyco paid the company for public relations services. Both Tyco [JURIST news archive] and Abramoff [JURIST news archive] have become symbols of corporate and political corruption through high-profile court cases. Abramoff has pleaded guilty to fraud and conspiracy charges [JURIST report] as required by his plea bargain, which will reduce his sentence if he provides information assisting the US Department of Justice in bringing future corruption charges against members of Congress Abramoff is alleged to have bribed. In 2005, two prominent former Tyco executives were sentenced [JURIST report] to between 8 1/2 and 25 years after being convicted [JURIST report] of grand larceny, conspiracy, and falsifying business records after stealing $150 million in illegal bonuses, forgiving huge loans made to themselves from company money, and manipulating stock prices, though both plan to appeal. AP has more.


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Martha Stewart conviction upheld by federal appeals court
Katerina Ossenova on January 6, 2006 12:24 PM ET

[JURIST] The US Court of Appeals for the Second Circuit on Friday upheld the 2004 conviction [JURIST report] of Martha Stewart [JURIST news archive] for lying to federal investigators in connection with her sale of ImClone stock. Stewart filed an appeal [JURIST report] after being sentenced to five months in prison and five months of house arrest, both of which she has completed [JURIST report]. In the Court's opinion [PDF text], per Judge Peter Hall, the court held that none of the numerous grounds upon which the appeal was filed [appellate brief, PDF] provides a basis to disturb the verdict. In reference to her claim that the use of co-defendant Peter Bacanovic's testimony statements violated the confrontation clause, the court said: when the object of a conspiracy is to obstruct justice, mislead law enforcement officers, or commit similar offenses by making false statements to investigating officers, truthful statements made to such officers designed to lend credence to the false statements and hence advance the conspiracy are not rendered inadmissible by the Confrontation Clause. A contrary reading of the rule would result in obvious and unacceptable impediments to prosecuting cases like this one, in which the very object of the charged conspiracy is for the defendants to mislead investigators by responding falsely to the investigators' questions in a structured setting, fully aware that their responses might be used in future judicial proceedings. Stewart and Bacanovic, her former stockbroker, were convicted for lying about why Stewart sold nearly 4,000 shares of ImClone Systems in 2001, just before a negative government report about the company came out. AP has more.


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Japan, Brazil developing separate new proposals on Security Council expansion
Joshua Pantesco on January 6, 2006 11:22 AM ET

[JURIST] Japan has declined to join fellow G-4 nations Brazil, Germany and India in their proposal [AP report] to expand membership in the UN Security Council [official website] from 15 to 25 member nations, adding six permanent members and six non-permanent members, and will instead develop a different proposal with US advice [AP report]. Japan joined Brazil's 2004 bid to expand Security Council membership, which was substantially similar to the one submitted by Brazil. Japan, however, expressed concern that Brazil's current proposal would not win the required two-thirds general assembly vote. Although Japan has not yet formally offered a resolution, it is considering proposing expanding membership to 21. A Japanese official said Friday that the country will still consult with G-4 allies on the bid. Japan, the world's second-largest economy and the second-largest UN financial contributor, has argued that Security Council membership has not adapted to the changing international geopolitical power structure. AP has more.
Previously in JURIST's Paper Chase...


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Senate Democrats plan to attack Alito credibility in confirmation hearings
Joshua Pantesco on January 6, 2006 9:39 AM ET

[JURIST] Democrats on the US Senate Judiciary Committee [official website] have said they plan to call witnesses to question the integrity of US Supreme Court nominee Samuel Alito [official profile; JURIST news archive] during confirmation hearings. The witness list includes experts on constitutional law and civil rights, but will also include John Flym, who argued a 2002 case before the US Court of Appeals for the Third Circuit involving mutual fund managers with which Alito had accounts. Alito has been criticized for failing to recuse himself [JURIST report]; Alito was not required to recuse himself, but had promised to do so during his confirmation hearings as an appellate judge. Democrats also plan to call a journalist who had reported Alito's association with the now-defunct interest group Concerned Alumni of Princeton, that had criticized Princeton's affirmative action policies and encouraged more legacy admissions. Judiciary Committee member Sen. Ted Kennedy (D-MA) [official website], called the group "anti-black" and "anti-women," but another member of the committee Sen. John Cornyn (R-TX) [official website] said the witnesses show that Democrats are desperate for critical fodder. The New York Times has more.
In related news, over 500 law professors have signed a letter [PDF text] opposing Alito's nomination, arguing that Alito will slant the court to the right: Analyses show that in close cases the kinds of cases the Supreme Court reviews Judge Alito consistently takes positions that devalue individual rights and protections. And despite the presidents pledge to nominate someone who embraces the principle of judicial restraint, Judge Alito often reaches his conclusions by overturning or weakening federal statutes, diminishing constitutional safeguards, and hollowing out precedent. Read the Alliance for Justice press release.


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