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Supreme Court allows Stanford Ponzi scheme suits
Legal News Feed |
2014/02/28 15:21
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The Supreme Court ruled Wednesday that victims of former Texas tycoon R. Allen Stanford's massive Ponzi scheme can go forward with class-action lawsuits against the law firms, accountants and investment companies that allegedly aided the $7.2 billion fraud.
The decision is a loss for firms that claimed federal securities law insulated them from state class-action lawsuits and sought to have the cases thrown out. But it offers another avenue for more than 21,000 of Stanford's bilked investors to try to recover their lost savings.
Federal law says class-action lawsuits related to securities fraud cannot be filed under state law, as these cases were. But a federal appeals court said the cases could move forward because the main part of the fraud involved certificates of deposit, not stocks and other securities.
The high court agreed in a 7-2 decision, with the two dissenting justices warning that the ruling would lead to an explosion of state class-action lawsuits.
Stanford was sentenced to 110 years in prison after being convicted of bilking investors in a $7.2 billion scheme that involved the sale of fraudulent certificates of deposits from the Stanford International Bank. They supposedly were backed by safe investments in securities issued by governments, multinational companies and international banks, but those investments did not exist. |
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Teens charged in death of Australian due in court
Legal News Feed |
2014/02/06 16:10
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Three teenagers accused of fatally shooting an Australian baseball player as he jogged down an Oklahoma street, allegedly because they were bored, are expected in court Tuesday for a hearing that could reveal details about the case.
Police allege that Chancey Allen Luna and James Francis Edwards Jr., who are both 16, and Michael Dewayne Jones, 18, randomly targeted and shot Chris Lane last summer. Each teenager is charged with first-degree murder.
Lane's death garnered heavy media coverage in both the U.S. and Australia, prompting the judge to issue a gag order barring anyone involved from talking about the case outside court. That means little information has been released since the 22-year-old Melbourne native was shot in the back and died in August.
But investigators have said Lane was shot while jogging down a tree-lined street near the home of his girlfriend's parents in Duncan, about 80 miles south of Oklahoma City. He and his girlfriend had just returned to Oklahoma after visiting Australia, and he was preparing for his senior season playing catcher at East Central University in Ada, about 90 miles east of Duncan.
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Not guilty plea in Oakland attack on 'agender' boy
Legal News Feed |
2014/02/03 15:51
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A 16-year-old San Francisco Bay Area boy has pleaded not guilty to charges that he set a male teen's skirt on fire on a public bus.
Richard Thomas is facing aggravated mayhem and assault charges with hate crime allegations in connection with the Nov. 4 attack.
Authorities say Thomas told investigators he attacked 18-year-old on Luke Fleischman on a bus in Oakland because he was homophobic. Relatives and friends have said Fleischman identifies as "agender," a designation sometimes adopted by people who see themselves as neither male nor female.
Fleischman was sleeping when he was attacked and suffered second and third-degree burns.
The Oakland Tribune reports that Thomas, who has been charged as an adult, entered the plea on Thursday.
His attorney, William Du Bois, says Thomas was playing a prank that went wrong.
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7 now guilty in Pendleton contractor bribery case
Legal News Feed |
2014/02/03 15:43
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Two civilian defense contractors have pleaded guilty in a San Diego federal court, bringing to nine the number of defendants who have admitted guilt in recent days to their involvement in a scheme involving bribes and kickbacks at Camp Pendleton and other federal facilities.
Federal prosecutors say Paul Dana Kay of PK Excavation and Manuel Ramirez of MRN Construction, Inc., entered the pleas to violations of the Anti-Kickback Act on Friday.
Six former contractors and a former Defense Department employee have pleaded guilty in the past two weeks to involvement in the scheme.
They include Natividad Lara Cervantes, who referred to himself as "The Godfather of Camp Pendleton," and admitted accepting bribes.
Sentencing is scheduled for April. The defendants face maximums ranging from three years to 20 years in prison. |
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