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South Korean court sentences Samsung heir to 5 years prison
Legal Opinions | 2017/08/23 09:03
A South Korean court sentenced the billionaire chief of Samsung to five years in prison for crimes that helped topple the country’s president, a stunning downfall that could freeze up decision making at a global electronics powerhouse long run like a monarchy.

The Seoul Central District Court said Friday that Lee Jae-yong, 49, was guilty of offering bribes to Park Geun-hye when she was South Korea’s president, and to Park’s close friend, to get government support for efforts to cement his control over the Samsung empire. The revelations that led to Lee’s arrest in February fed public outrage which contributed to Park’s removal.

A panel of three judges also found Lee guilty of embezzling Samsung funds, hiding assets overseas, concealing profit from criminal acts and perjury. Prosecutors had sought a 12-year prison term.

The court said Lee and Samsung executives who advised him caused “a big negative effect” to South Korean society and its economy.

“The essence of the case is unethical collusion between political power and capital,” the court said in a statement. It led the public to fundamentally question the public nature of the president’s work and to have “mistrust in the morality of the Samsung group,” it said.

The families who control South Korea’s big conglomerates, known as chaebol, were lionized a generation ago for helping to turn South Korea into a manufacturing powerhouse put public tolerance for double standards that put them above the law has been rapidly diminishing.

Analysts said the verdict will not immediately have an impact on Samsung’s business operations, which are overseen by three chief executives. The company has successfully weathered past crises that include two recalls of Galaxy Note 7 smartphones prone to catch fire and Lee’s arrest. It is set to report its highest-ever earnings this year.

But long-term business decisions, such as finding future growth areas and identifying companies for acquisitions, may have to be put on hold.



Court file: Michigan girl who killed toddler heard voices
Legal News | 2017/08/21 23:42
Court documents say an 8-year-old girl accused of killing a toddler at a home daycare in western Michigan earlier this year suffers from "serious mental health" issues, including hearing a demon's voice.

The Department of Health and Human Services filed a petition in Muskegon County Family Court saying the girl, who was also cared for at the home daycare, killed 14-month-old Korey Landon Brown on April 14.

The petition filed last month asks the court to make the girl a temporary ward of the state and to make a decision regarding the girl's placement that protects her brother and other children. The petition says the best placement is Hawthorn Center, a state-run residential psychiatric facility in Northville for children and adolescents.

Chief Assistant Prosecutor Timothy Maat tells MLive the petition was the result of an investigation conducted by multiple agencies.

Korey's mother said that when she went to the daycare to take her children home, she found the boy unresponsive in a playpen and covered with bite marks. His death was ruled a homicide due to multiple injuries, including trauma to his head, other blunt force trauma and possible asphyxiation, according to the petition.



British cybersecurity expert pleads not guilty to US charges
Legal News | 2017/08/16 23:57
A British cybersecurity researcher credited with helping curb a recent worldwide ransomware attack pleaded not guilty Monday to federal charges accusing him of creating malicious software to steal banking information three years ago.

Marcus Hutchins entered his plea in Wisconsin federal court, where prosecutors charged him and an unnamed co-defendant with conspiring to commit computer fraud in the state and elsewhere. Authorities arrested the 23-year-old man on Aug. 2 at McCarran International Airport in Las Vegas, where he was going to board a flight to his home in Ilfracombe, England. He had been in Las Vegas for a cybersecurity convention.

Hutchins is free on $30,000 bail, but with strict conditions. His bond has been modified so that he can stay in Los Angeles near his attorney and travel anywhere in the U.S., but Hutchins is not allowed to leave the country. He is currently staying at a hotel in Milwaukee.

He was also granted access to use a computer for work, a change from an earlier judge's order barring him from using any device with access to the internet. Hutchins' current work wasn't detailed at Monday's hearing. The next hearing in the case was set for Oct. 17.

Hutchins' attorney, Adrian Lobo, hasn't responded to several phone messages left by The Associated Press over the last week.

The legal troubles Hutchins faces are a dramatic turnaround from the status of cybercrime-fighting hero he enjoyed four months ago when he found a "kill switch" to slow the outbreak of the WannaCry virus. It crippled computers worldwide, encrypting files and making them inaccessible unless people paid a ransom ranging from $300 to $600.

Prosecutors allege that before Hutchins won acclaim he created and distributed a malicious software called Kronos to steal banking passwords from unsuspecting computer users. In addition to computer fraud, the indictment lists five other charges, including attempting to intercept electronic communications and trying to access a computer without authorization.

The indictment says the crimes happened between July 2014 and July 2015, but the court document doesn't offer any details about the number of victims. Prosecutors have not said why the case was filed in Wisconsin. The name of Hutchins' co-defendant is redacted from the indictment.



DJ says taking Taylor Swift to court was only option
Court News | 2017/08/16 23:51
The former radio host who lost a groping lawsuit to Taylor Swift in federal court this week said he realizes the case was in the pop star's favor, but he had no interest in backing down.

David Mueller told The Associated Press on Tuesday that someone he knew suggested he pull out of the case early, but he refused.

"I knew that I couldn't go on with my life without representing myself," he said. "I'm never going to back down."

A six-woman, two-man jury determined Monday that Mueller groped Swift during a photo op before a concert in Denver in 2013. In keeping with Swift's request, they awarded her $1 in damages — an amount her attorney, Douglas Baldridge, called "a single symbolic dollar, the value of which is immeasurable to all women in this situation."

Mueller said he is thinking of giving Swift a Sacagawea dollar because the Native American is a prominent female.

"I mean if this is all about women's rights. ... It's a little poke at them, a little bit," he said. "I mean, I think they made this into a publicity stunt, and this is my life."

Swift's team initially tried to keep the accusation quiet by not reporting the incident to police, and instead contacting Mueller's bosses.

But it became public when Mueller sued Swift for up to $3 million, claiming her allegation cost him his $150,000-a-year job at country station KYGO-FM, where he was a morning host.

After Mueller sued, Swift countersued for assault and battery. During an hour of testimony last week, she blasted a low-key characterization by Mueller's attorney, Gabriel McFarland, of what happened. While Mueller testified he never grabbed Swift, she insisted she was groped.


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