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Legal news from Tuesday, June 5, 2012 |
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Federal judge grants preliminary approval for JPMorgan settlement
Sung Un Kim on June 5, 2012 1:29 PM ET

[JURIST] The US District Court for the Southern District of New York [official website] granted JPMorgan Chase [corporate website; JURIST news archive] permission on Monday to pay $44.6 million in order to resolve allegations of fraudulent bidding practices for state and local government investment securities at taxpayers' expense. The approval came after an order [text, PDF] in March granting preliminary approval of class action settlement that set a final approval date to Monday. Judge Victor Marrero granted preliminary approval in the current case of conspiracy in fixing prices and rigging bids on municipal bond transactions and said that the settlement merits the approval as fair, reasonable and adequate.
The settlement followed JPMorgan's agreement of last July to pay a total of $228 million to federal and state authorities. It agreed [JURIST report] to pay $51.2 million to the affected municipalities, and its affiliates agreed to pay $177 million to settle parallel charges from other federal and state authorities including 25 states' attorneys general, the Securities and Exchange Commission, the Internal Revenue Service, the Office of the Comptroller of the Currency and the Federal Reserve Board [official websites]. JPMorgan was accused of having used "fraudulent practices, misrepresentations, and omissions affected the prices of the reinvestment instruments, deprived the municipalities of a conclusive presumption that their reinvestment instruments were purchased at fair market value, and/or jeopardized the tax-exempt status of the underlying securities, thereby injuring numerous Municipalities." A month earlier JPMorgan reached [JURIST report] a $153.6 million settlement for fraud charges brought by the SEC for misleading investors during the housing crises.


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Russia activists arrested protesting proposed legislation
Sung Un Kim on June 5, 2012 1:03 PM ET

[JURIST] Russian police on Tuesday arrested more than 20 people who were protesting a new bill that was introduced to the State Duma [official website, in Russian], the lower house of parliament, for a final vote. The proposed bill would raise the maximum fines [LAT report] for participating in an unsanctioned rally from 2,000 rubles (USD $60) to 300,000 rubles ($9,000) meaning a 150-fold increase. For public officials the fine would be 600,000 rubles ($18,000). The Kremlin party, or United Russia [party website, in Russian], which currently has the majority in the lower house proposed the law in advance of a planned opposition protest on June 12. Because United Russia has 238 seats in State Duma out of 450, it is expected that the bill will be approved by the lower house. Additionally, although the bill has to go through the upper house and be signed by President Vladimir Putin [official website], it is expected that the bill will become law in the near future.
The controversial bill was preliminary approved [JURIST report] in May by State Duma by a vote of 236-207 on the first reading. Putin has supported the new bill. Russia has been criticized for violating citizens' right to free expression. Earlier this month prominent Russian gay rights activist Nikolai Alekeyev, who was arrested in April, became the first to be convicted under a St. Petersburg city ordinance that prohibits the spreading "homosexual propaganda" to minors.


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Federal appeals court considers dismissing war crimes conviction challenge
Rebecca DiLeonardo on June 5, 2012 12:39 PM ET

[JURIST] The US Court of Appeals for the District of Columbia Circuit [official website] has ordered attorneys in the case of a former Guantanamo Bay [JURIST backgrounder] detainee to supply briefs explaining whether the issue has become moot. The case revolves around the war crimes conviction of former detainee Salim Ahmed Hamdan [DOD materials; JURIST news archive]. Hamdan has already completed his sentence and is no longer living in the US. In a post-argument brief [text, PDF] lawyers for Hamdan argued that his conviction will continue to have adverse affects on his life, including his permanent ban on travel to the US, and potential future political conflict with US army, which continues to occupy his home country of Yemen. The appeals court is considering the case which was appealed from the US Court of Military Commission Review [official website]. The military commission upheld the conviction [JURIST report] last June, ultimately rejecting the defense's argument that Hamdan's charge of providing material support to terrorism is not a war crime capable of being prosecuted by a military tribunal. The Department of Justice (DOJ) [official website] does not dispute [SCOTUSblog backgrounder] Hamdan's contention that the case is not moot.
Hamdan was originally convicted [JURIST report] in August 2008 on charges [charge sheet, PDF], which stemmed from his employment as Bin Laden's driver, and sentenced to 66 months of imprisonment, but given credit for 60 months he had already spent in US custody. In November 2008, Hamdan was released [JURIST report] to his native country Yemen to serve the last month of his prison sentence and is now living freely in Yemen. His release alleviated concerns that arose when government lawyers said he could be held indefinitely [JURIST report].


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DOJ monitoring Wisconsin recall election to prevent voter fraud
Sung Un Kim on June 5, 2012 12:16 PM ET

[JURIST] The US Department of Justice (DOJ) [official website] announced Monday that it would monitor the Wisconsin recall election [press release] taking place on Tuesday to prevent voter fraud. The city of Milwaukee, Wisconsin, will be one of the jurisdictions that the DOJ will oversee to ensure compliance with the Voting Rights Act of 1965 (VRA) [DOJ backgrounder], which prohibits discrimination in the election process based on race, color or membership in a minority language group. Under the VRA, the DOJ is authorized to ask the US Office of Personnel Management (OPM) [official website] to send federal observers to monitor activities in the polling places. During the election, voters will decide whether to keep Governor Scott Walker (R) in office or replace him with Milwaukee Mayor Tom Barrett (D) [official websites]. A total of 12 cities in Wisconsin will be monitored for voter fraud and Wisconsin's Department of Justice [official website] is also sending assistant attorneys general and special agents from its Division of Criminal Investigation. The other jurisdictions include Alameda, Fresno and Riverside Counties, California; Cibola and Sandoval Counties, New Mexico and Shannon County, South Dakota.
There is an ongoing debate over the prevalence of voter fraud. Supporters of the controversial voter ID laws [JURIST news archive] often argue that such laws are necessary to prevent the alleged prevalence of voter fraud. However, the Brennan Center for Justice [advocacy website] has argued [report, PDF] that such laws have an adverse effect on qualified voters while not effectively solving the problem. Other civil rights groups have challenged the new laws that are now in 32 states [NCSL backgrounder]. In May, the American Civil Liberties Union of Minnesota (ACLU-MN) [advocacy website] filed a petition [JURIST report] to challenge the proposed ballot initiative that would require citizens to present photo identification in order to vote. During the same month, Virginia Governor Bob McDonnell [official website] signed [JURIST report] a bill that would require citizens to show one form of acceptable identification to vote. Pennsylvania's voter ID law was challenged [JURIST report] earlier in May by a coalition of civil rights groups on behalf of citizens who lack valid photo ID.


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HRW: diamond monitoring body must address Zimbabwe human rights issues
Rebecca DiLeonardo on June 5, 2012 11:48 AM ET

[JURIST] Human Rights Watch (HRW) [advocacy website] on Monday urged [press release] the Kimberley Process (KP) [official website] a multi-government initiative to monitor and prevent the sale of conflict diamonds, to put further pressure on the Zimbabwe government to comply with established regulations. HRW expressed particular concern about the ongoing abuses of diamond miners by government officials and police, and the continued presence of the Zimbabwean military at Zimbabwe's Marange diamond field:Human Rights Watch's research in the Marange area indicates that while human rights violations by the Zimbabwean military in the diamond fields are not as severe as they were in 2008, abuses persist. There are significant concerns about the conduct of police and private security forces employed by companies operating in the area, and the failure of the authorities to hold to account members of the military, police and private security companies responsible for serious abuses. HRW also called on KP to revise and strengthen its certification scheme to prevent the flow of conflict diamonds in to the stream of commerce.
Zimbabwe has faced criticism in the past for its inability to address human rights violations in diamond fields. In August 2010, the US-based Rapaport Diamond Trading Network [corporate website] reiterated its stance against the sale of Zimbabwe diamonds [JURIST report] associated with human rights violations. In a letter to their members, Rapaport stated they would expel members who knowingly traded the tainted diamonds. Rapaport's letter was released a month after KP approved the sale of the diamonds [JURIST report] from the Marange mines after reaching an agreement with the Zimbabwean government. Under the agreement, the KP allowed Zimbabwe to sell a portion of its estimated USD $1.7 billion worth of mined diamonds before September of that year, and the Zimbabwean government allowed KP experts to enter the country to certify that the diamond mines meet international standards. In 2009, rights groups urged KP to suspend [JURIST report] Zimbabwe's international diamond trade due to the human rights violations allegedly committed by the Zimbabwean army against civilians and illegal workers in the Marange diamond fields.


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Conrad Black moves to dismiss remaining conviction
Sung Un Kim on June 5, 2012 11:08 AM ET

[JURIST] The lawyers for media magnate Conrad Black [CBC profile; JURIST news archive] on Monday filed a motion [text, PDF] in the US District Court for the Northern District of Illinois [official website] to dismiss the remainder of their client's convictions because the prosecution had deprived him of his right to an attorney. Black argued that the government, among other fallacies, improperly seized his funds in the amount of $9 million from the sale of his New York apartment in 2005 that he designated to retain Williams & Connolly. Despite the argument that the government had seized the proceeds from the sale with a defective affidavit and that the seizure would hinder Black from retaining the counsel of his choice, the government filed an indictment alleging that Black engaged in fraud in valuing the New York apartment. The funds were not released to him until the trial ended, allegedly depriving him of his constitutional right to an attorney. Black argued that the affidavit was in violation of the Fourth Amendment because it inaccurately alleged Black's purchase of the apartment was illegitimate. Black is asking the court to vacate his remaining convictions which would allow him to defend himself against an ongoing SEC action. As an alternative, Black requests a hearing in which the government presents all evidence that proves Black's alleged fraudulent purchase of the New York apartment.
In May, Black was released [JURIST report] from federal prison in Florida. Last June, he was ordered to return to prison [JURIST report] for an additional 13 months after he served his sentence of 42 months because the sentencing guidelines mandated he serve his full sentence. He had been released on bond in 2010 by after the US Court of Appeals for the Seventh Circuit [official website] granted Black's request for bail following a Supreme Court ruling [opinion, PDF; JURIST report] in Black v. United States [Cornell LII backgrounder]. The Court of Appeals vacated Black's two "honest service"-based convictions after Supreme Court instructed the circuit court to review the jury instructions given at trial concerning the "honest services" doctrine [18 USC § 1346 text]. Black was accused in 2007 of diverting more than $80 million from Hollinger International and its shareholders [JURIST report] during Hollinger's $2.1 billion sale of several hundred Canadian newspapers and faced 17 counts of fraud, obstruction of justice, racketeering and tax evasion.


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Federal appeals court rules citizen cannot sue over state-funded cross restoration
Rebecca DiLeonardo on June 5, 2012 10:51 AM ET

[JURIST] The US Court of Appeals for the Seventh Circuit [official website] ruled [opinion, PDF] Monday that an Illinois tax-payer does not have standing to sue the state legislature for a $20,000 grant provided to the Bald Knob Cross of Peace Organization for the restoration of a landmark Latin cross. The money was part of a $5 million appropriation for a grant program to be administered by the Illinois Department of Commerce and Economic Opportunity. The court upheld the decision of the District Court [JURIST report] below, holding that the plaintiff, Robert Sherman, does not have standing because the legislature did not choose the specific organizations that would receive the money:For a taxpayer to have standing to challenge a government expenditure as violating the Establishment Clause, the Supreme Court has required that the challenged action be "congressional action under the taxing and spending clause." Recently, the Court limited the reach of this holding to suits against "specific congressional enactment[s]," expressly excluding "discretionary Executive Branch expenditures" from taxpayer challenges in federal court. The court determined that because the money was dispersed by an executive department, Sherman does not have standing as a taxpayer to challenge the expenditure.
The challenge was initially brought in August 2010 by Sherman, who has said on his website [advocacy website] that the decision of the District Court was "bizarre" and "preposterous." In October, the Seventh Circuit rejected [JURIST report] Sherman's challenge to the constitutionality of an Illinois statute that mandates a daily moment of silence in public schools. The court reversed an April 2009 ruling [JURIST report] that the Illinois Reflection and Silent Prayer Act [text] is an unconstitutional endorsement of religion in public schools. The appellate court instead found that the statute had a secular legislative purpose that neither advanced nor inhibited religion.


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Philip Morris challenging Norway tobacco display ban
Sung Un Kim on June 5, 2012 8:58 AM ET

[JURIST] An Oslo district court on Monday began hearing a suit initiated by tobacco company Philip Morris [corporate website] against Norway [BBC backgrounder; JURIST news archive] for the country's display ban [text, in Norwegian] on tobacco products. The company argues that the ban is in violation of the European Economic Area (EEA) [official website] rules because it makes competition too difficult. The Norwegian Cancer Society [advocacy website, in Norwegian], a group that will represent the country in this case, argued that the ban will decrease tobacco use by blocking the products from being marketed to youth. The tobacco company countered by arguing that the ban does not effectively prevent the increase in tobacco sales but rather makes it impossible or really difficult for adult smokers to choose from the various tobacco products. The suit, filed in March 2010, seeks to overturn the display ban while not addressing any other tobacco-related laws in Norway. The Oslo court, as per the company's request, asked for an advisory opinion by the European Free Trade Agreement (EFTA) [official website] court before the case went to trial. The court in turn responded that the display ban could be seen as violating EEA rules by interfering with the free flow of goods while on the other hand, the underlying policy of the ban was in compliance with EEA rules. Thus, the Oslo court was given the final authority to rule over the case.
Due to health problems associated with their products, tobacco companies are facing various laws that interfere with their distribution and marketing efforts around the world. In the US, tobacco companies are facing regulations that will compel them to place prescribed warning labels on their packages. In April, a panel of the US Court of Appeals for the District of Columbia Circuit [official website] heard [JURIST report] oral arguments over the constitutionality of a new Food and Drug Administration (FDA) [official website] regulation requiring cigarette packaging and advertisements to display more prominent graphic health warning labels. A month earlier a judge in the same court had held [JURIST report] that the regulation was unconstitutional because it violated tobacco companies' First Amendment rights. In November, Philip Morris Asia Ltd. (PMA) filed a suit against the Australian government that passed [JURIST reports] new regulations requiring tobacco companies to sell its products in a generic, olive green packages without branding or logos.


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Bangladesh war crimes tribunal indicts Islamic party leader
Jamie Davis on June 5, 2012 8:39 AM ET

[JURIST] The International Crimes Tribunal in Bangladesh (ICTB) [Facebook page] on Monday indicted a leader of Bangladesh's largest Islamic party for alleged human rights atrocities committed during the 1971 Bangladesh Liberation War [GlobalSecurity backgrounder] against Pakistan, making him the fifth member to be indicted. Mohammad Kamaruzzaman, the third-highest ranking member of the Jamaat-e-Islami (JI) [GlobalSecurity backgrounder] party, was indicted on several counts [AFP report], including genocide. Kamaruzzaman is accused of being one of the main organizers of Al Badr, a group of Pakistan supporters that allegedly committed murders and genocide throughout Bangladesh during the war.
Kamaruzzaman is the most recent leader to be arrested and charged with war crimes for his participation in atrocities committed during the 1971 war. Last month Ghulam Azam, former head of the JI party, along with chief Matiur Rahman Nizami and deputy Abdul Quader Molla were indicted [JURIST report] by the ICTB. The tribunal ordered Azam's arrest [JURIST report] in January. In November the ICTB began its first trial [JURIST report] in the case against Delwar Hossain Sayedee, a former member of Parliament in the National Assembly of Bangladesh [official website, in Bengali] and one of the former leaders of JI. Human Rights Watch [advocacy website] last year sent a letter to the Bangladesh government praising its efforts through the ICTB to prosecute war crimes but urged the government to ensure that the trials are carried out in accordance with international human rights expectations [JURIST report].


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