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Legal news from Wednesday, May 26, 2010 |
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Canada finance minister proposes national securities regulator
Dwyer Arce on May 26, 2010 1:46 PM ET

[JURIST] Canadian Finance Minister Jim Flaherty [official website] on Wednesday introduced legislation [text; official backgrounder] that would establish a single national securities regulatory body to replace the current system managed by individual provinces and territories. The Canadian Securities Act would establish the Canadian Securities Regulatory Authority (CSRA) [fact sheet], replacing the current "passport" system, which allows provincial authorities to issue registration recognized nationwide, with a single national authority with voluntary provincial participation. According to Flaherty, the CSRA is also intended to foster competitive capital markets and protect investors from fraudulent practices. It will be run by a board of directors accountable to the Ministry of Finance [official website]. The legislation would also redefine securities-related criminal offenses that would apply even in provinces not participating in the CRSA and would give concurrent prosecutorial jurisdiction to the federal and provincial governments. Flaherty explained the need [press release] for the legislation, stating:Canada is the only major industrialized country that lacks a national securities regulator. This step will strengthen the stability, integrity and effectiveness of the Canadian financial system ... [by] harmoniz[ing] existing legislation in the form of a single statute. ... It proposes significant improvements in terms of governance, adjudication, financial stability, and regulatory and criminal enforcement, and provides a wide scope of authority to regulate financial instruments and participants in capital markets. The legislation will be submitted to the Supreme Court of Canada [official website] to rule on the proposal's constitutionality [official backgrounder], a process that could take 10 to 24 months. Quebec Premier Jean Charest [official website] sharply criticized [Montreal Gazette report] the proposed legislation, stating that it would interfere with provincial jurisdiction and that his government would pursue a legal challenge in the Quebec Court of Appeal [officials website]. The governments of Alberta and Manitoba have also been critical of the legislation, prompting another court challenge from Alberta.
The legislation is based on the recommendations of a seven-member panel appointed by Flaherty, which concluded in January that the global financial crisis [FT backgrounder] increased the need for a national securities regulatory system. It comes as a culmination of the efforts of successive Canadian governments to form a single securities regulator. The global financial crisis has caused concern over securities regulations in other countries as well, prompting the US Department of Justice [official website] in April to open a criminal investigation [JURIST report] of Goldman, Sachs & Co. [corporate website] for possible securities fraud in mortgage trading. Earlier in April, the US Securities and Exchange Commission (SEC) [official website; JURIST news archive] filed civil charges [JURIST report] against Goldman Sachs. The SEC alleges that Goldman made misleading statements and omissions to investors in early 2007 in violation of the Securities Act of 1933 [text, PDF] and Securities Exchange Act of 1934 [text, PDF]. Also in April, the German government announced [JURIST report] that it was considering legal action against the company. Britain has indicated that it may also pursue legal action [Bloomberg report] after it found out the scope of the allegations contained in the SEC lawsuit.


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ICC reports Sudan to UN for lack of cooperation with arrest warrants
Sarah Miley on May 26, 2010 1:11 PM ET

[JURIST] The International Criminal Court (ICC) [official website] on Wednesday reported [press release] Sudan to the UN Security Council [official website] for lack of cooperation in the pursuit of alleged war criminals [case materials] Ahmad Harun and Ali Kushayb [arrest warrants, PDF]. ICC Pre-Trial Chamber I released a decision [text, PDF] asking the Security Council to take any steps it deems appropriate to compel Sudan to comply with its obligation under Resolution 1593 [text, PDF], which provides that "the Government of Sudan and all other parties to the conflict in Darfur shall cooperate fully with and provide any necessary assistance to the Court and the Prosecutor pursuant to this resolution.'' The three-judge panel stated that the ICC has taken all possible measures to ensure cooperation from Sudan, but the government has refused to provide any assistance or information in regards to the case of Harun and Kushayb. Since the ICC concluded that it has exhausted all its resources, the responsibility will now be shifted to the Security Council to take appropriate action. Sudan, which is not a permanent member of the ICC under the Rome Statute
[text], refuses to recognize the court's jurisdiction, stating that "the International Criminal Court has no place in this crisis at all." Harun and Kushayb are wanted for 51 counts [case materials] of crimes against humanity and war crimes.
The decision stemmed from a request filed [JURIST report] by ICC Chief Prosecutor Luis Moreno Ocampo [official profile] last month for a finding of non-cooperation pursuant to Article 87 of the Rome Statute for the government's refusal to arrest Harun and Kushayb. The request stated that "[t]o the contrary, the [government of Sudan] continues to commit crimes, promotes and protects the persons sought by the Court; and harasses all persons who are considered to be in favor of justice." The majority of the ICC caseload has come from Africa, causing tense relations with the governments in the region. On Monday, a collection of African civil society organizations issued a declaration urging greater cooperation [JURIST report] between the ICC and African nations in anticipation of the upcoming ICC Review Conference of the Rome Statute [official website]. The group of 124 organizations called on African governments to enhance their cooperation with the court and to make greater efforts in the execution of outstanding warrants. The review conference will take place in Kampala, Uganda from May 31 to June 11, 2010. During the conference, member states will consider proposed amendments [text] to the statute.


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Peru judge orders release of US woman held for involvement with rebel group
Dwyer Arce on May 26, 2010 11:52 AM ET

[JURIST] A Peruvian judge on Tuesday ordered the release of Lori Berenson [advocacy website], a US citizen held since 1995 for collaboration with a Marxist rebel organization. Judge Jessica Leon Yarango cited [press release, in Spanish] good behavior, Berenson's renunciation of violence, and the completion of "re-education, rehabilitation and re-socialization," in deciding to grant parole. Berenson will not be allowed to leave the country until her parole period has ended and must make monthly court appearances. The prosecution has appealed the decision. Berenson was arrested in 1995 for involvement with the Tupac Amaru Revolutionary Movement (MRTA) [GlobalSecurity backgrounder], a Marxist rebel group. She is alleged to have trained guerrillas [Guardian report] and moved weapons for the MRTA in addition to assisting the group in carrying out an attack on the Peruvian Congress [official website, in Spanish] by gaining access to the body using press credentials.
In 2005, the Inter-American Court of Human Rights [official website] denied an appeal request to reinterpret its November 2004 ruling [JURIST reports] that upheld Berenson's conviction. Lawyers for Berenson claimed that her trial failed to meet international standards for fairness, and sought to have her conviction and 20-year sentence overturned. In a 2000 CBS News interview [text], Berenson characterized her original trial proceedings as hostile and coercive, saying that she had faced a panel of hooded judges and that armed guards had aimed assault rifles at her and her lawyer's heads during the 10-minute proceeding. She was initially sentenced to life imprisonment by a military court, but the sentence was reduced to 20 years in a civil retrial in 2001.


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Italy agrees to take two more Guantanamo detainees
Sarah Miley on May 26, 2010 11:30 AM ET

[JURIST] Italian Foreign Minister Franco Frattini [official profile] announced Tuesday that Italy will take two more detainees from the Guantanamo Bay detention facility [JURIST news archive]. The announcement came during a meeting the US officials from the National Security Council, including National Security Adviser James Jones. Italy's Interior Ministry [official website, in Italian] will review profiles of potential transferees before an agreement is made with US authorities on which detainees Italy will take. Italy hinted at the possibility that the selected detainees may be brought to Italy as cleared captives [Miami Herald report] rather than face trial or additional jail time. Last year, Italy accepted three Tunisian detainees [JURIST report] from Guantanamo to stand trial for terrorism charges.
The Obama administration continues its push to close the Guantanamo Bay facility, despite missing its self-imposed one-year deadline [JURIST report] in January. The administration has run into several hurdles in closing the prison, including opposition from members of Congress and the suspension of detainee transfers to Yemen [JURIST report]. Last week, the US House Armed Services Committee [official website] approved a bill [JURIST report] prohibiting the Obama administration from modifying or building a facility in the US to hold detainees currently held at Guantanamo. The bill requires [summary, PDF] that any plan to construct or modify US facilities to accommodate Guantanamo transfers be "accompanied by a thorough and comprehensive plan that outlines the merits, costs, and risks associated with utilizing such a facility." As the Obama administration has not presented such a plan to Congress, the bill prohibits the use of any funds for the purpose of preparing a US facility for Guantanamo transfers. The number of detainees at Guantanamo has significantly been reduced as the administration continues to transfer detainees to a growing list of countries including Bulgaria, Spain, Maldives, Georgia, Albania, Latvia, Switzerland, Slovakia, Algeria, Somaliland, Palau, Belgium, Afghanistan, and Bermuda [JURIST reports].


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Oklahoma voters to decide on health care opt-out amendment
Dwyer Arce on May 26, 2010 10:52 AM ET

[JURIST] The Oklahoma House of Representatives [official website] on Tuesday voted 88-9 to put a constitutional amendment purporting to exempt state residents from the federal health care law [HR 3590; JURIST news archive] on the November ballot. The vote comes after the Oklahoma Senate [official website] voted 30-13 [roll call, PDF] in favor of the ballot initiative earlier this month. The legislation would ask voters whether they wanted to add an amendment to the Oklahoma Constitution [text] prohibiting "forced participation in the health care system." If approved, the amendment would exempt state residents [press release] from any penalty for failing to purchase health insurance, according to the bill's sponsors. Most Americans will be required to purchase health insurance by 2014 under the health care law. In a statement [video], state Representative Mike Thompson (R) [official website], a sponsor of the bill, described the effort as a "shield ... from a federal takeover of our health care system," and stated:SJR 59 is the answer to Oklahoma citizens about opting out of Obamacare. ... What this legislation does is it empowers the voters to make the decision whether or not they want a single payer system implemented on them. ... [T]his legislation builds upon the state constitution ... [which is] the first line of defense for a state. The ballot initiative comes after the Oklahoma Senate failed to override a veto by Governor Brad Henry (D) [official website] of a bill that would have attempted to statutorily exempt state residents from the individual mandate provision of health care reform. Henry cited [veto message] the costs of litigation, could jeopardize health care funding from the federal government, and the inability of a state to "selectively ignore federal laws of its choosing," as reasons for the veto. The bill would have also allowed state legislators to sue the federal government to overturn the health care reform law.
Oklahoma joins Florida and Arizona in placing similar constitutional amendments on the November ballot. On Monday, the Obama administration filed a brief [JURIST report] urging the dismissal of a lawsuit brought by Virginia challenging the constitutionality of the individual mandate provision of the health care reform. Earlier this month, the National Federation of Independent Businesses (NFIB) [association website], a small business lobby group, joined a separate lawsuit [JURIST report] challenging the health care reform law. The NFIB joined 20 states in a suit that began in March when a complaint seeking injunction and declaratory relief was filed [JURIST reports] in the US District Court for the Northern District of Florida [official website]. Among the allegations in the suit are violations of Article I and the Tenth Amendment of the US Constitution [text], committed by levying a tax without regard to census data, property, or profession, and for invading the the sovereignty of the states.


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Ousted Thailand PM appeals arrest warrant
Sarah Miley on May 26, 2010 10:32 AM ET

[JURIST] A lawyer for ousted [JURIST report] Thai prime minister Thaksin Shinawatra [BBC profile; JURIST news archive] on Wednesday filed an appeal against an arrest warrant [JURIST report] issued Tuesday on charges of terrorism. Thaksin is accused of involvement in the the recent political violence [JURIST news archive] in Bangkok, as the figurehead of the pro-democracy protesters known as the red shirts [BBC backgrounder]. Thaksin's lawyer was accompanied by two additional red shirt leaders [Bangkok Post report], who have sworn they will testify that Thaksin was not involved in any acts of terrorism if the court chooses to hear the appeal. The red shirts' protests in the capital's central commercial district paralyzed the country for the past two months, and Thaksin has been repeatedly accused of organizing and financing the campaign. The former prime minster was removed from power in 2006 by a military coup and has been living abroad in Cambodia where the government has refused to extradite [JURIST report] him to Thailand for criminal prosecution. The Thai government hopes that the official charge of terrorism will make foreign governments more malleable in their extradition policies.
The Thai government's response to the recent conflict in Bangkok has been criticized by international human rights organizations. Last week, Human Rights Watch (HRW) [advocacy website] expressed concern [JURIST report] about the treatment of anti-government protesters detained during the Bangkok demonstrations. The organization chided the Thai government for enacting a "draconian" emergency decree giving Thai security forces broad power to arrest individuals without formal charges and hold them in secret detention. The decree, which lacks judicial oversight, also prevents detainees from having access to legal counsel or family members. Earlier this month, a Thai court sentenced 27 protesters to six months in prison for violating the emergency decree. Under the strict security law [JURIST report] adopted in anticipation of the protests, the red shirts initially faced up to a year in prison, but their confessions allowed the district court to commute their sentences [AFP report]. During their protests, the red shirts demanded that Prime Minster Vejjajiva Abhisit [BBC backgrounder] resign and called for new elections. The Thai government implemented a curfew [JURIST report] in Bangkok and other areas of the country in response to violence that erupted when the leader of the red shirts announced an end to the protests. The curfew remains in effect as the government tries to maintain order.


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Mladic family seeks official death declaration
Sarah Miley on May 26, 2010 9:04 AM ET

[JURIST] The family of war crimes suspect Ratko Mladic [case materials; JURIST news
archive] will file a claim in the Belgrade District Court [official website, in Serbian] seeking to have the former military leader declared officially dead, according to Serbian media reports [Novosti report, in Serbian] Tuesday. This declaration would allow Mladic's family to collect his state pension and sell his property. Under Serbian law, an individual can be officially declared dead when he is over the age of 70 and no reliable information on his whereabouts has been discovered for five years. Mladic is 68, but his family is convinced he is no longer alive, as they have not heard from him in over seven years and he was in poor health at that time. A lawyer for the family stated that they will still file the claim and ask the court for leniency so the family can put Mladic's prosecution behind them. Deputy Serbian War Crimes Prosecutor Bruno Vekaric has dismissed [Press TV report] the family's request, calling it "speculation," and stressed that the investigation into the war crimes suspect's location will continue. Mladic is one of two high-level targets still at large under the jurisdiction of the International Criminal Tribunal for the former Yugoslavia (ICTY) [official website; JURIST news archive] and faces charges of genocide and crimes against humanity for allegedly overseeing the Srebrenica [JURIST news archive] massacre and other war crimes violations during the Bosnian civil war [JURIST news archive].
Earlier this month, the ICTY announced that the Office of the Prosecutor [official website] has filed a motion to amend [JURIST report] the indictment against Mladic. Prosecutors believe that the amended indictment will help speed up the court proceedings once he is captured. The amended indictment includes 11 counts of genocide, crimes against humanity, and violations of the laws and customs of war that took place between 1992-1995. In March, UN Secretary-General Ban Ki-moon [official website] said that the ICTY will continue to operate [JURIST report] beyond its originally planned end date, in part to apprehend both Mladic and political leader Goran Hadzic [case materials], who both face a significant number of charges. Ban estimated that it will be necessary for the court to remain open until 2013.


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Oklahoma legislature overrides veto of pre-abortion questionnaire bill
Dwyer Arce on May 26, 2010 8:46 AM ET

[JURIST] The Oklahoma Senate [official website] voted 33-15 [roll call, PDF] Tuesday to override the veto of bill [HB 3284 text, RTF] that would require women seeking an abortion [JURIST news archive] to complete a questionnaire. The vote comes a day after the Oklahoma House of Representatives [official website] voted 84-13 to override the veto, allowing the proposed legislation to take effect November 1. The Statistical Abortion Report Act would require women to answer questions such as marital status, reasons for seeking the abortion, and whether the pregnancy is the result of rape or incest. It would also require doctors performing the procedure to fill out a questionnaire about complications resulting from it. The bill was vetoed [press release] by Governor Brad Henry (D) [official website] on Monday, because of its "personally invasive" nature: While I support reasonable restrictions on abortion, this legislation has numerous flaws. As with previous abortion bills I have vetoed, HB 3284 lacks an essential exemption for rape and incest victims. By forcing them to submit to a personally invasive questionnaire and posting the answers on a state website, this legislation will only increase the trauma of an already traumatic event. Victims of such horrific acts should be treated with dignity and respect in such situations, as should all people. Paul Sund, a spokesman for Henry, criticized [Tulsa World report] the Senate's override because of the cost of litigating legal challenges that may arise from the bill. Supporters have said the measure is necessary to protect unborn children.
Two weeks ago, the Oklahoma Senate voted 32-11 [JURIST report] to pass the bill. Identical legislation was signed into law last session but was struck down [JURIST report] because it was part of a broader bill that violated the state constitution's single subject requirement. Earlier this month, Oklahoma Attorney General Drew Edmondson [official profile] agreed to delay the implementation of another controversial new state law [HB 2780 text, RTF] requiring women seeking an abortion to consent first to an ultrasound after the Center for Reproductive Rights [advocacy website] requested a restraining order temporarily barring enforcement of the law. In April, the Oklahoma Senate voted to override [JURIST report] Henry's veto of two anti-abortion bills, including the ultrasound bill. The Oklahoma laws join another restrictive abortion law passed recently in Nebraska, which bans abortions after 20 weeks [JURIST report].


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