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Legal news from Wednesday, April 4, 2007 |
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US alleges $70M loss in lawsuits against Jackson Hewitt franchises
Brett Murphy on April 4, 2007 10:36 PM ET

[JURIST] The Internal Revenue Service (IRS) and the Department of Justice (DOJ) [official websites] have filed suit [IRS press release] against five Jackson Hewitt [corporate website] franchises, seeking an injunction to bar the companies from preparing tax returns and alleging that all five corporations were involved in fraudulent tax return preparation including the filing of exaggerated claims and the use fake W-2 forms. The government, which filed lawsuits Tuesday in Chicago, Atlanta, Detroit and Raleigh, further alleged [DOJ press release and complaints] that as a result of the fraudulent activity the US Treasury took a loss of over $70 million. The suits also claim that the corporations, owners, and employees received kickbacks for helping costumers file the fraudulent returns.
Speaking about the lawsuits, IRS Commissioner Mark Everson [official profile] stated that: I am deeply disturbed by the allegation that a major franchisee of the nation's second-largest tax preparation firm is intentionally preparing improper tax returns with inflated refunds. I'm particularly concerned that many taxpayers of modest means could actually end up owing the government thousands of dollars if they claimed an improper refund.
The five corporations named as defendants are Chicago Suit: Smart Tax, Inc. of Chicago; Ask Tax, Inc.; Atlanta Suit: Smart Tax of Georgia, Inc.; Detroit Suit: So Far, Inc.; and Raleigh Suit: Smart Tax of North Carolina, Inc.; all Jackson Hewitt Tax Service franchises. The suits also name Farrukh Sohail, who wholly or partially owns each of the five corporations, as co-defendant. AP has more.


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Iowa House committee approves civil rights protection for gays, lesbians
Leslie Schulman on April 4, 2007 6:44 PM ET

[JURIST] The Iowa House Human Resources Committee [official website] on Tuesday approved SF427 [text], a bill to extend the state's civil rights protections to gays and lesbians. The bill, which still awaits passage by the full Iowa House [official website], was passed by the full Senate last week [JURIST report] and would officially add gender identity and sexual orientation to the categories protected from discrimination in Iowa's civil rights code. If approved by the full House, the legislation would complement passage earlier this year of a bill to protect gay and lesbian students from harassment in schools [SF61 text]. While Democrats support the measure, some Republican representatives expressed concerns about the scope of the protections offered. They worried how it may affect workplace ethics and increase employment lawsuits by giving businesses limited deference to set their own policies. Governor Chet Culver [official profile] said he will sign the legislation if it passes.
Like many states, Iowa is struggling to refine its gay rights [JURIST news archive] laws. Over the past few months, Washington Senate has passed [JURIST report] a civil unions law, while Rhode Island and New Jersey have moved to recognize gay couple married in other states [JURIST reports]. Meanwhile, Indiana has joined a number of states in banning gay marriage and Hawaii has shelved its proposed civil unions legislation [JURIST reports]. The Waterloo, Iowa Courier has more.


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UN SG calls for universal adherence to landmine treaties
Joshua Pantesco on April 4, 2007 4:17 PM ET

[JURIST] UN Secretary-General Ban Ki-moon [official website] Wednesday urged all countries to sign and abide by international treaties banning landmines International Mine Awareness Day [press release]. Those treaties include the Ottawa Treaty [text; ICBL backgrounder], which bans all anti-personnel landmines, and the Protocol Five to the Certain Conventional Weapons Convention [text], scheduled to assemble in November to consider how to eradicate land mines left behind in former war zones. Ban said in a statement [text] said: Today, I encourage all States who have not yet done so to accede to all these treaties as soon as possible.
I call upon all States Parties to honour their obligations under the treaties, including the commitment, for those in a position to do so, to render assistance to affected States and victims in need.
And I reiterate my call on the international community to address immediately the horrendous humanitarian effects of cluster munitions. These indiscriminately kill and maim civilians, just as easily and frequently as landmines do. International outrage has driven a large group of countries to pursue a new international treaty to deal with these weapons, thus complementing and reinforcing other on-going efforts. A UN official told reporters [transcript] Tuesday that approximately 20,000 people are killed by landmines each year, despite preventative efforts. The UN News Service has more.


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UN labor organization asks North Carolina to repeal bargaining ban
Joshua Pantesco on April 4, 2007 2:42 PM ET

[JURIST] The state of North Carolina is violating international freedom of association labor standards [ILO materials] by prohibiting governmental entities from bargaining with unions, according to a decision released Tuesday by the International Labor Organization (ILO) [official website], the labor standards branch of the United Nations. North Carolina General Statute section 95-98 [text] states: Any agreement, or contract, between the governing authority of any city, town, county, or other municipality, or between any agency, unit, or instrumentality thereof, or between any agency, instrumentality, or institution of the State of North Carolina, and any labor union, trade union, or labor organization, as bargaining agent for any public employees of such city, town, county or other municipality, or agency or instrumentality of government, is hereby declared to be against the public policy of the State, illegal, unlawful, void and of no effect. (1959, c. 742.) The ILO decision, which is not technically binding on North Carolina, requested that North Carolina repeal the statute.
The Public Service Workers Union and its parent union, the United Electrical, Radio and Machine Workers of America (UE) [advocacy websites], brought the complaint in 2005. Read the UE press release. AP has more.


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Leading Shiite cleric denies opposing law reinstating Iraq Baathists
Joshua Pantesco on April 4, 2007 1:34 PM ET

[JURIST] Iraqi Shiite religious leader Grand Ayatollah al-Sistani [official website; JURIST news archive] said Tuesday he in fact did not oppose a proposed law [JURIST report] which would return former Baath party [BBC backgrounder] members to their previously held government positions, as initially reported [JURIST report] Sunday. A spokesperson for Sistani denied the reports without revealing the Grand Ayatollah's position on the law, instead saying the issue is constitutional and not religious in nature. Reuters has more.
The draft law, introduced by President Jalal Talabani [official website, in Arabic; BBC profile] and Prime Minister Nouri al-Maliki [BBC profile] last month, would allow former members of Saddam Hussein's now-defunct Baath party to return to their government or military jobs or receive pensions if they are denied such jobs. Despite provisions in the proposal that would prevent reemployment of former Baathists who have been charged with, or are sought for, criminal activities, several Shiite leaders oppose the draft law as being "dangerous."
Supporters of the draft measure are looking for a way to reinstate [JURIST report] former Baath party members who say they joined the party for professional reasons; Hussein only allowed university enrollment, career progression and specialized medical aide to those who were members of his party. Without approval by Shiite religious leaders, the proposed law has little chance of being passed by the Iraqi National Assembly [official website] since Shiites currently hold 130 of the 275 parliamentary seats and often vote according to the advice of their religious leaders. Some Kurds, who were also suppressed by Hussein's Baathist regime, oppose the draft law as well.


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Ukraine president spars with parliament as constitutional crisis deepens
Joshua Pantesco on April 4, 2007 11:38 AM ET

[JURIST] Ukrainian President Viktor Yushchenko [official website; BBC profile] has refused to rescind Monday's decree [statement] ordering parliament to dissolve and new elections to be held in May as the constitutional crisis in Ukraine continues. On Tuesday, Yushchenko met with his main political rival, Prime Minister Viktor Yanukovych [BBC profile], in an attempt to persuade Yanukovych to withdraw an court appeal [JURIST report] seeking to block the decree and allow the current parliament to remain in power. Earlier Tuesday, Yanukovych said [speech transcript] the purpose of the president's decree is to usurp power, to discredit parliamentarism, and to "guarantee power retention for some individuals regardless of any results of the elections." Yushchenko defended the decree [commentary, subscription required] in Tuesday's Financial Times, writing: Ukraine's young democracy today faces a new and dangerous challenge, one that requires a firm and immediate response. It comes from a ruling coalition that has exceeded its mandate and attempted to monopolise political power, even at the cost of violating the constitution and ignoring the democratically expressed wishes of the Ukrainian people. On Wednesday, the parliament passed a resolution [RIA Novosti report] accusing Yushchenko of staging a coup attempt. The Financial Times has more.
Yushchenko and Yanukovych were fierce rivals in the 2004 presidential election [JURIST report], the results of which were invalidated by the country's Supreme Court [JURIST report] following fraud allegations. Yushchenko was sworn in as Ukraine's president [JURIST report] in January 2005 on the wings of the populist Orange Revolution [BBC timeline] after winning a re-vote. Yushchenko reluctantly accepted Yanukovych as prime minister last June and the two have since clashed over parliamentary attempts to expand the cabinet's power [JURIST reports] at the expense of the presidency.


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Rights groups press EU to put Rwanda genocide suspects on trial
Brett Murphy on April 4, 2007 7:43 AM ET

[JURIST] Human Rights groups REDRESS and the International Federation for Human Rights [advocacy websites] said Tuesday that the European Union should hold trials for the 37 Rwandan genocide suspects known to be living in European countries. The suspects have been living in Belgium, France, Denmark, Finland, Germany, Italy, the Netherlands and Norway, and the rights groups condemned the countries for giving them safe havens [press release, PDF]. At a conference marking the thirteenth anniversary of the 1994 Rwandan genocide [HRW backgrounder; BBC backgrounder], the groups stated that "it is unacceptable that perpetrators continue to live freely in Europe."
Last month, the trial of Desiré Munyaneza [Trial Watch profile; JURIST report], former Rwandan militia commander, began in Canada. In February, Rwanda released 8,000 prisoners [JURIST report] implicated in the genocide in an effort to combat prison overcrowding despite fears of retribution. Reuters has more.


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Gonzales aide to stay silent on US Attorney firings
Brett Murphy on April 4, 2007 7:13 AM ET

[JURIST] Monica M. Goodling, on leave from her post as special counsel to the US Attorney General, told the House Judiciary Committee [JURIST report] on Tuesday that she will not speak to the committee about her role in last year's firing of eight US attorneys [JURIST news archive]. Committee members said that a voluntary interview would forgo the need to subpoena Goodling, but Goodling's lawyer stated that even if she was subpoenaed before the committee, she would claim protection under the Fifth Amendment. Some House representatives doubt her ability to do so, stating that "her claims do not constitute a valid basis for invoking the privilege against self-incrimination." Goodling has said previously that she will refuse to testify [JURIST report] before Congressional committees, indicating that she would plead the Fifth Amendment if called to speak.
Senate Democrats have rejected attempts by the White House to advance the date that US Attorney General Alberto Gonzales [official profile; JURIST news archive] is scheduled to testify on the firings. Gonzales defended his role [JURIST report] in the firings on Friday, admitting that there has been some confusion, but saying that his involvement in the matter was limited to signing off on recommendations made by his former chief of staff Kyle Sampson [official profile]. Sampson, who resigned last month [DOJ press release], told the Senate Judiciary Committee last week that the prosecutors were fired for political reasons [JURIST report] rather than for poor performance as the Justice Department has claimed [JURIST report]. Sampson also said Gonzales did more than merely follow his recommendations, and that Gonzales and former White House counsel Harriet Miers [official profile] were deeply involved in the firings. AP has more. The Boston Globe has additional coverage.


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