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Jailed sex offender hit with five more counts
Criminal Law | 2007/04/12 00:02

An incarcerated registered sex offender in Lyon County was charged Wednesday with five counts of third-degree sexual abuse.

Kyle King, 21, allgedly committed five sex acts with a 15-year-old female in fall 2006, the Lyon County Sheriff's Department reported Wednesday.

King was already in Lyon County Jail for failing to comply with the sex offender registry at the time of his arrest. In 2004, he was convicted of assault with intent to commit sexual abuse.

Wednesday's charges carry a maximum sentence not to exceed 10 years. More charges are possible in the near future as the investigation by the sheriff's department continues.



Clergy sex abuse claims down in 2006
Legal Business | 2007/04/12 00:01

Claims of clergy sex abuse levied against the US Roman Catholic Church decreased for the second year in a row and recent cases involving claimants under age 18 have dropped significantly, according to an annual report released Wednesday by the US Conference of Catholic Bishops. The survey, compiled by the Center for Applied Research in the Apostolate at Georgetown University, cites figures from nearly all 195 dioceses in the US and reports that claims dropped from 1,092 in 2004 to 783 in 2005 to 714 in 2006, only 17 of which were from people under 18. Money spent by the dioceses and religious orders on support, settlements and litigation fees also dropped from $467 million to $399 million last year.

The report measures the US dioceses' compliance with the Charter for the Protection of Children and Young People, drafted in 2002 in response to widespread reports of sexual abuse committed by clergymen. The report, however, has been criticized since an accompanying independent audit included only 11 full, on-site visits to US dioceses and no reviews of personnel files



Bush heads for showdown on stem cells
Biotech | 2007/04/11 17:10

The White House has threatened to veto a new bid to lift US President George W Bush's restrictions on federal funding of stem cell research as the Senate began considering the bipartisan bill. While the Democratic-led Senate seemed certain to pass the legislation as early as Wednesday, it was unclear if backers would have the needed two-thirds majority to override a veto. The bill, a 2006 Democratic campaign promise, would expand federal funding of human embryonic stem cell research, lifting restrictions Bush imposed in 2001.

In the first and only veto of his presidency, Bush rejected a similar measure last year.

The debate is emotionally charged. Advocates call stem cell research the best hope for potential cures for ailments like Alzheimer's disease, diabetes and spinal cord injuries. But the testing requires destruction of days-old embryos, and opponents say it is immoral.

"The administration strongly opposes Senate passage of (the bill), which would use federal taxpayer dollars to support and encourage the destruction of human life for research," the White House said in a statement threatening a veto.

Iowa Democratic Senator Tom Harkin, a chief sponsor of the bill, countered: "It's time we provide hope to millions and expand stem cell research."

Democrats won control of the US Congress from Bush's Republicans in November promising to expand federal funding of stem cell research, which is now restricted by Bush to batches available as of August 2001.

White House spokeswoman Dana Perino said Bush stood firm.

"The president weighed this issue very carefully back in 2001 and has thought about it since. And he believes that clear moral line that he established back in August of 2001 is a good place for the country to be," Perino said.

Stem cells are a kind of master cell for the body, capable of growing into various tissue and cell types. Those taken from embryos are especially malleable. Scientists hope to use the cells to repair tissue damaged by disease or injury.

In the 100-member Senate, backers and foes debated the measure as they counted votes and tried to determine if supporters could get the two-thirds majority needed in both the House and the Senate to override a Bush veto.

"It's going to be very close," Harkin said.

Earlier this year, the House passed a similar stem cell bill on a vote of 253-174 - about three dozen votes short of a two-thirds majority.

Another bill being considered would not lift Bush's restrictions and critics said it was inadequate. But with the backing of the White House, the Senate seemed certain to pass it this week.

That measure would encourage stem cell research using embryos that have naturally lost the ability to develop into fetuses. It would also support the creation of a bank of stem cells taken from amniotic fluid and placentas - two recently discovered potential sources.

"We are offering an opportunity to move the ball forward," Republican Senator Norm Coleman of Minnesota said.



New York seeks probe of Wal-Mart for surveillance
Business | 2007/04/11 09:01

New York City is seeking a probe of Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) over the retailer's reported surveillance of shareholders who submitted proxy petitions that could potentially disrupt the company's annual meeting. New York City Comptroller William C. Thompson Jr. sent letters to the U.S. Attorney General's office and the Securities and Exchange Commission, asking for an investigation into the world's largest retailer for what he called "ill-considered and possibly illegal surveillance operations."

"As New York City's Chief Financial Officer and the Chief Investment Advisor to the City's Pension Funds, I am particularly troubled by reports that Wal-Mart engaged in chilling and truly outrageous surveillance activities," Thompson wrote. Copies of the letters were posted on the comptroller's Web site.

Wal-Mart could not immediately comment on the story. The SEC declined to comment.

Last week, a report in The Wall Street Journal said an internal Wal-Mart security group was asked to investigate the potential threat of those submitting proposals to its June shareholder meeting.

Following the article's publication, Tom Hyde, Wal-Mart's top legal officer, sent a letter to shareholder proponents saying that while the article implied that the company had initiated an intrusive "threat assessment" of shareholders who submitted proposals for inclusion in Wal-Mart's annual proxy statement, that was not true.

"In spite of a January 2007 memo referenced in the article, there were no inquiries made with respect to the proponents of shareholder proposals," he wrote in the letter, a copy of which Wal-Mart provided. "Given the nature of the matters proposed and our familiarity with the individual proponents, the request contained in the memo was not acted upon."

The New York City Pension Funds represent nearly 600,000 active members, beneficiaries and retirees and are valued at nearly $100 billion, according the Web site.

Wal-Mart shares fell 24 cents to $47.70 in morning New York Stock Exchange trade.



Man pleads guilty in massive mortgage fraud scheme
Court Watch | 2007/04/11 08:56

A man accused of stealing the identities of children, the homeless and people in drug rehab as part of a massive mortgage fraud scheme pleaded guilty to federal charges in three states Tuesday. Matthew Cox, 37, faces up to 54 years in prison and $2 million in fines at his Aug. 22 sentencing, but will likely not receive that stiff a punishment.

As part of a deal Cox struck with the government, prosecutors have agreed to recommend that U.S. District Judge Timothy Batten sentence Cox at the low end of federal guidelines. The exact range has not been determined.

Cox pleaded guilty to six charges that were leveled in Georgia, Florida and Tennessee: bank fraud, identity theft, passport fraud, two counts of mortgage fraud conspiracy, and violating his probation for a previous mortgage fraud conviction.

Forty-one other counts against him in Georgia will be dropped as part of his plea agreement.

Prosecutors say Cox and Rebecca Marie Hauck rented properties, fraudulently erased mortgage liens on the properties and then stole the owners’ identities and fraudulently took out multiple new mortgage loans.

They also used stolen identities to obtain driver’s licenses, purchase vehicles, lease mail drops, rent apartments and open bank accounts to receive proceeds from their schemes in Georgia, Florida, Alabama, South Carolina and North Carolina, authorities said.



California diocese threatened with contempt
Breaking Legal News | 2007/04/11 08:54

A federal bankruptcy judge is threatening the Roman Catholic Diocese of San Diego with contempt for allegedly attempting to hide assets to avoid payment to clergy sexual abuse victims. Judge Louise DeCarl Adler ordered the diocese's lead attorney into court Wednesday to explain why she and her colleagues should not be sanctioned. Adler cited a March 29 letter sent by a diocese parish organization to pastors urging them to get new taxpayer identification numbers and transfer funds to new accounts. The threat Monday came six weeks after the diocese sought bankruptcy protection amid lawsuits by more than 140 people who accuse priests of sexual abuse.

The judge said any post-bankruptcy transfers between the diocese and parishes outside of normal cash operations violate her ruling against shifting the diocese's assets while the bankruptcy case is pending. She said any transfers require court approval.

In a sternly worded order, Adler said attorneys Susan Boswell, Jeffry Davis and Victor Vilaplana appear to have "conspired with parishes" to create new bank accounts separate from the diocese.

Boswell wrote in court documents Tuesday that no intentional misrepresentations or misstatements had been made. She said the diocese has "no access or control" over money in more than 770 bank accounts opened by parishes and parochial schools under the diocese's taxpayer identification number.

Davis wrote in court papers that he thought comments Adler made in an earlier hearing suggested that parishes should obtain their own taxpayer identification numbers for clarity in the bankruptcy case.

Attorneys for the alleged victims have repeatedly accused the church of trying to hide assets to reduce the overall sum available for potential settlements. They estimate that a fair settlement would total about $200 million.

In March, the diocese proposed a $95 million settlement schedule for victims that would offer plaintiffs anywhere from $10,000 to $800,000.

San Diego was the fifth U.S. diocese to file for bankruptcy. The other dioceses that have filed for bankruptcy protection are Davenport, Iowa; Portland, Ore.; Spokane, Wash.; and Tucson, Ariz. Tucson has emerged from bankruptcy protection, while proposed settlements are awaiting final approval in Portland and Spokane.



O'Connor named Gonzalez's chief of staff
Legal Careers News | 2007/04/11 08:52

Attorney General Alberto R. Gonzales today named Kevin J. O'Connor, U.S. Attorney for the District of Connecticut, as his Chief of Staff. In this role, O'Connor will assist the Attorney General and senior Department of Justice staff in managing and implementing the Department's policy initiatives and priorities. Mr. O'Connor will officially start April 26, 2007. Chuck Rosenberg will return, as planned, to the Eastern District of Virginia where he serves as the U.S. Attorney, following six weeks of service as the Department's interim Chief of Staff.

"I extend my sincere gratitude to Chuck Rosenberg who stepped in to serve the Department admirably during a challenging transitional period," said Attorney General Alberto R. Gonzales. "I am very pleased that Kevin has agreed to serve as my Chief of Staff. He is an outstanding lawyer and as U.S. Attorney in Connecticut demonstrated that he is a strong manager and leader."

Mr. O'Connor was appointed by President George W. Bush and unanimously confirmed by the U.S. Senate as Connecticut's 48th U.S. Attorney in 2002. In January 2006, Mr. O'Connor also began serving in the Department's headquarters as the Associate Deputy Attorney General to oversee violent crime and gang-related policy initiatives for the Department.

Prior to his appointment as U.S. Attorney, Mr. O'Connor was a partner in the law firm of Day, Berry & Howard in Hartford, Conn. Mr. O'Connor also served as Corporation Counsel for the Town of West Hartford, Conn. from 1999 to 2001.

From 1995 to 1997, Mr. O'Connor served as Staff Attorney and Senior Counsel in the Division of Enforcement of the U.S. Securities & Exchange Commission in Washington, D.C. From 1993 to 1995, Mr. O'Connor was a litigation associate with the law firm of Cahill Gordon & Reindel in New York City. From 1992 to 1993, Mr. O'Connor served as a law clerk to the Honorable William H. Timbers of the U.S. Court of Appeals for the 2nd Circuit.

He is a 1992 graduate, with high honors, from the University of Connecticut School of Law and a 1989 graduate, with honors, from the University of Notre Dame.

Mr. O'Connor will remain the U.S. Attorney for the District of Connecticut. After four to six months, he and the Attorney General will determine whether he continues to hold both positions.



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