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Congress approves extension of Iraq inspector general
Breaking Legal News | 2006/12/11 08:24

Legislation extending the mandate of the Special Inspector General for Iraq Reconstruction (SIGIR) passed both houses of the US Congress last week at the end of its current session, and the agency will continue to monitor US spending in Iraq until the fall of 2008 pending President Bush's signature. SIGIR was originally established to independently supervise and investigate operations of the US-led Coalition Provisional Authority, and has to date uncovered multiple instances of fraud, bribery, and other legal violations by US government officials and government contractors in Iraq.

House Republicans had initially planned to terminate the agency in October 2007 through through HR 5122, transferring its mandate to the State and Defense departments. Democrats in the House introduced new legislation last month authorizing the agency for an additional year. The measure passed the Senate on Wednesday, and the House approved it by voice vote during its last sitting of the year on Saturday. Rep. Ike Skelton (D-MO), who will take over as Chairman of the House Armed Services Committee in January, has already suggested that he will expand the scope of SIGIR in the new year.



Pinochet dead at 91 without ever facing trial
International | 2006/12/10 16:13

Former Chilean dictator General Augusto Pinochet has died, according to an announcement from a military hospital in Santiago. Pinochet, 91, suffered a major heart attack.

In recent years Chilean authorities have made multiple efforts to bring the ex-dictator to justice for dozens of human rights violations he is accused of committing during his military rule from 1973 to 1990.

Pinochet suffered from mild dementia, strokes, arthritis and other ailments that made his fitness to stand trial questionable. He enjoyed general immunity from prosecution under the 1980 Chilean Constitution, but was incrementally stripped of that immunity in light of charges brought against him.

Two weeks ago, a judge ordered he be placed under house arrest in connection with the executions of two of former President Salvador Allende's bodyguards during the so-called Caravan of Death that followed the 1973 coup in which Pinochet seized power; the house arrest order was lifted earlier this week for his recuperation. Last month, on the occasion of his birthday, Pinochet publicly assumed full political responsibility for the actions of his former regime.



DOJ to Monitor Elections in New Orleans
Political and Legal | 2006/12/10 08:21

WASHINGTON - The Justice Department announced that on Dec. 9, 2006, it will monitor the congressional runoff election in New Orleans, La., to ensure compliance with the Voting Rights Act.

The Department monitors will watch and record activities during voting hours at polling locations in the city. A Civil Rights Division attorney will coordinate the federal activities and maintain contact with local election officials.

Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country. In 2004, a record 1,463 federal observers and 533 Department personnel were sent to monitor 163 elections in 105 jurisdictions in 29 states. This compares to the 640 federal observers and 103 Department personnel deployed in 2000. On Nov. 7, 2006, the Department deployed an unprecedented number of federal personnel to monitor the midterm election, sending more that 500 federal observers and more than 350 Justice Department personnel to 69 jurisdictions in 22 states "more than double the total sent on Election Day in 2002" the previous record for a midterm election.



CA accountant barred from operating tax scheme
Tax | 2006/12/09 09:24

WASHINGTON – A federal judge in Los Angeles has permanently barred Stephen Drake of Prescott, Ariz., and Kenneth Sorenson of Buellton, Calif., from promoting or operating an alleged tax fraud scheme, the Justice Department announced today.

Judge Florence-Marie Cooper of the U.S. District Court for the Central District of California signed the civil permanent injunction, which the defendants agreed to without admitting wrongdoing. The order also bars Sorenson, a CPA whose office in is Solvang, Calif., from preparing federal income tax returns for customers based on the alleged tax fraud scheme.

The government alleged in the complaint filed in this case that Drake and Sorenson devised and operated a scheme that helped some members of the Santa Ynez Band of Chumash Indians claim bogus deductions on their federal income tax returns to offset income the members receive from the Band’s casino operations at the Chumash Casino Resort in Santa Ynez, Calif. The complaint also stated that each Band member received over $300,000 in casino distributions in 2004 and over $400,000 last year.

The injunction order requires Drake and Sorenson to mail a copy of the injunction to all customers who participated in the scheme and to any other persons to whom they sold a similar scheme in the past five years.



Grand Jury Indicts Alaska Republican For Extortion
Court Watch | 2006/12/09 09:16

WASHINGTON – A federal grand jury in Anchorage, Alaska, has indicted Thomas T. Anderson, a current elected member of the Alaska State House of Representatives, on charges of extortion, conspiracy, bribery, and money laundering, Assistant Attorney General Alice S. Fisher of the Criminal Division announced today.

The seven-count indictment returned on Dec. 6, 2006, charges Anderson with two counts of extortion, one count of bribery, one count of conspiracy, and three counts of money laundering in connection with the use of a sham corporation to hide the identity of the bribery payments. The indictment further alleges that Anderson solicited and received money from an FBI confidential source in exchange for Anderson’s agreement to perform official acts to further a business interest represented by the confidential source.

The indictment also alleges that from July 2004 to March 2005, Representative Anderson, along with an individual identified as “Lobbyist A,” solicited and received $26,000 in payments from an FBI confidential source, in exchange for Anderson’s agreement to take official acts as a member of the Alaska State Legislature. According to the indictment, Anderson and Lobbyist A participated in the creation of a sham corporation to conceal the existence and true origin of the payments, and used the sham corporation to funnel a portion of the $26,000 to Anderson.

According to the indictment, the FBI confidential source was a consultant for a private corrections company located outside the state of Alaska, and Anderson and Lobbyist A initiated contact with the FBI confidential source in order to solicit bribery payments. The FBI confidential source, however, never communicated those solicitations or any other information to the corrections company due to the undercover nature of the operation. The corrections company was not implicated in the corrupt activities that are alleged in the indictment.

If convicted, Anderson faces a maximum penalty of 20 years and a $250,000 fine on the extortion counts; a maximum penalty of 20 years and a $500,000 fine on each of the money laundering counts; a maximum penalty of 10 years and a $250,000 fine on the bribery count; and a maximum penalty of five years and a $250,000 fine on the conspiracy count.

An indictment is merely an accusation and defendants are presumed innocent until proven guilty at trial beyond a reasonable doubt.

This case is being prosecuted by Trial Attorneys Nicholas A. Marsh and Edward P. Sullivan of the Public Integrity Section, which is headed by Acting Chief Edward C. Nucci, as well as Assistant U.S. Attorneys Joseph W. Bottini and James A. Goeke from the District of Alaska. The case is being investigated by Special Agents of the FBI.



Rumsfeld asks court to dismiss torture suit
Breaking Legal News | 2006/12/09 09:01

US government lawyers asked a federal judge Friday to dismiss a lawsuit against outgoing US Secretary of Defense Donald Rumsfeld in connection with alleged torture and abused by US personnel in Iraq and Afghanistan, arguing Rumsfeld is entitled to immunity. The ACLU and Human Rights First sued Rumsfeld and other military officials in 2005 on behalf of eight former detainees. The suit asserts that Rumsfeld bears direct responsibility for abuses and that his actions violated the US Constitution, federal statutes and international law. DOJ lawyers argued Friday that detainees held overseas do not have constitutional rights and therefore an exception to the general rule of immunity which allows suit when an official violates a plaintiff's constitutional rights does not apply.

US District Judge Thomas F. Hogan seemed skeptical of giving Rumsfeld immunity from the allegations, but also acknowledged that allowing the civil lawsuit to proceed would be unprecedented. He promised to rule quickly in the case. Rumsfeld resigned  from his position last month pending the confirmation of his successor. His resignation was quickly followed by the filing of a war crimes complaint against him under Germany's universal jurisdiction laws.



HP agrees to settle California pretexting suit
Law Center | 2006/12/09 06:06

Hewlett-Packard reached a $14.5 million settlement agreement with California Attorney General Bill Lockyer on Thursday in an unfair business practices suit stemming from HP's allegedly fraudulent attempts to obtain certain phone records, a practice known as "pretexting." Lockyer "commended the firm for cooperating instead of stonewalling" and announced that $13.5 million of the settlement would be used for privacy rights investigations in state and local cases. The remainder will pay for civil penalties, investigations, and other costs.

Since September, HP has been embroiled in an elaborate corporate spying scandal. In order to discover the source of boardroom leaks, the company allegedly hired outside detectives to call phone companies, posing as executives and reporters in attempt to obtain phone records. In November, former chairwoman Patricia Dunn, former ethics officer Kevin Hunsaker, and outside private investigators Ronald DeLia, Matthew DePante and Bryan Wagner pleaded not guilty in Santa Clara County Superior Court to felony charges stemming from their roles in the corporate spying scandal. Dunn resigned in September before testifying at a hearing before the US House Energy and Commerce Committee, during which she admitted that she was aware of the plan, but was also told the actions were legal by corporate attorneys.



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