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Business owner pleads guilty to tax evasion
Tax | 2007/05/01 11:25

The owner of a landscaping and contracting business in Monmouth County has pleaded guilty to tax evasion, admitting that he evaded more than $300,000 in federal income taxes, U.S. Attorney Christopher J. Christie announced. According to a press release from Christie's office, Christopher M. Aldarelli Sr., 40, of Howell, appeared before U.S. District Court Judge Stanley R. Chesler in Newark on April 13 and entered a guilty plea to Count Two of an indictment which charged him with willful tax evasion for calendar year 1999. He also admitted evading taxes for other years.

Aldarelli was arrested in February on an indictment charging him with three counts of tax evasion for calendar years 1998, 1999 and 2000. Chesler scheduled sentencing for Sept. 13.

The count to which Aldarelli pleaded guilty carries a statutory maximum penalty of five years in prison and a fine of $100,000, according to the press release. The remaining counts will be dismissed, however, all of the conduct (known as relevant conduct) described in the indictment will be taken into consideration when Chesler imposes sentence.

The indictment sets forth that from 1998 through 2000, Aldarelli ran two corporations, Aldo 1 Landscaping and Lawn Service Inc. and Aldarelli Enterprises Inc., which performed a large volume of paving, construction, high-end landscaping and lawn-cutting work for private residences and municipalities.

Aldarelli admitted during his guilty plea that because these businesses were "S" corporations, he was required to report any income derived from the businesses on his U.S. individual tax return. The indictment further set forth that for the three years in question, Aldarelli reported that he owed tax in the amount of just under $15,000 for the three years combined.

For calendar year 1999, Aldarelli reported taxable income in the amount of $66,232 with a resulting tax in the amount of $12,121. During his guilty plea, Aldarelli admitted that he intentionally failed to include an additional amount of nearly $300,000 in personal income he received during 1999 on that tax return in an effort to evade paying income taxes, according to the press release. He also admitted that for calendar years 1998, 1999 and 2000, he owed an additional total tax of approximately $317,000 on the basis of income he failed to report.

Aldarelli admitted that this additional income stemmed from the receipt of cash for work his companies performed which he did not report, as well as from cash he withdrew from business accounts but used for personal expenses. He also admitted to writing checks to himself from the business accounts which he used for personal and non-business-related expenses, according to Christie.

The guilty plea of Aldarelli represents the latest conviction to arise from Operation Bid Rig, the same investigation which has led to charges being filed against more than 18 officials in Monmouth and Ocean counties over the last several years, including convictions of the former mayors of Asbury Park, Ocean Township, West Long Branch, Brick Township, Hazlet and Keyport.



Google Responds to Viacom's YouTube Suit
Patent Law | 2007/05/01 06:02

Google Inc. on Monday filed a response to Viacom Inc.'s copyright infringement lawsuit over Google's massively popular video-sharing sharing site YouTube, arguing that the site's activities are legal. Viacom had sued Google on March 13, claiming that YouTube has used digital technology to "willfully infringe copyrights on a huge scale," facilitating the unauthorized viewing of many pieces of Viacom's programing from MTV, Comedy Central and other networks, such as "The Daily Show with Jon Stewart."

In a response filed in federal court in New York late Monday, Google said that YouTube respects the importance of copyrights and goes above and beyond what is required under the Digital Millennium Copyright Act, which gives Web hosts protection from copyright lawsuits so long as they comply with requests to remove unauthorized material.

YouTube says its cooperates with holders of copyrights and immediately complies with requests to have unauthorized material removed from the site.



Ex-Spartan pleads not guilty in neighbor's slaying
Court Watch | 2007/05/01 03:08

A judge ordered a mental health examination for a former Michigan State football player who pleaded not guilty on Monday to tossing a neighbor to his death from a third-floor apartment balcony. Defense attorney Steven Wagner requested that DuPage County Judge Robert Anderson order the evaluation to determine Hubert D. Thompson’s mental fitness, the Chicago Tribune and (Arlington Heights) Daily Herald reported.

"I do believe fitness is going to be an issue," Wagner said.

Thompson, 28, of Lombard pleaded not guilty to a five-count indictment charging him with first-degree murder.

He is accused of killing his neighbor, 66-year-old James Malone, by throwing him off a balcony in the building where they lived on March 30. Thompson surrendered to authorities that evening after a nearly seven-hour standoff with police.

Thompson was a standout athlete at a suburban Chicago high school and played defensive end at Michigan State.

The New Orleans Saints signed Thompson in 2000. But he was cut before the start of the season after getting into a dispute with a teammate during a workout.

Thompson’s mother, Maggie Ross, has said doctors diagnosed her son with bipolar disorder and that he had stopped taking medication because the drugs made him feel listless and dizzy.



Man pleads guilty in siblings' deaths
Court Watch | 2007/05/01 02:09

A 19-year-old man took responsibility Monday for being intoxicated and causing a Dec. 30, 2006, wreck that killed three siblings.

Jurors will return to the 347th District Court on Wednesday to decide the punishment of Scott Ryan Helgerson, who pleaded guilty to three counts of intoxication manslaughter and one count of aggravated assault with a deadly weapon.

Each charge is punishable by as much as 20 years in prison.

Sahar Mostaghasi, 24, and 12-year-old twins Negin and Sepehr Mostaghasi died in the wreck, which happened at Cimarron Boulevard and Brockhampton Street at about 5 a.m.

The siblings died after their vehicle, a 2006 Toyota Corolla, was struck by a 1998 Dodge Caravan driven by Helgerson, according to police.

Their brother, Morteza, 16, was a front-seat passenger in the vehicle.

He was released from a hospital two days after the accident.

Before Helgerson's plea Monday, his attorney, Richard Rogers, asked 347th District Judge Nelva Gonzales Ramos to recuse herself from the trial on the grounds that she inappropriately had a conversation in her chambers with Albert Huerta, the attorney representing the Mostaghasi family in a civil suit against Helgerson.

The Mostaghasi family is seeking an unspecified amount from Helgerson for damages including medical and funeral expenses and pain and suffering, according to a lawsuit filed by Huerta in January.

Huerta said Monday that the conversation was unrelated to the case.

After later speaking with his client, Rogers withdrew the motion.

Jury selection will begin Wednesday.



Gonzales gave aides power to hire, fire appointees
Breaking Legal News | 2007/04/30 22:56

Deputy Attorney General Paul J. McNulty told congressional investigators that he had limited involvement in the firing last year of eight U.S. attorneys and that he did not choose any to be removed, congressional aides familiar with his statements said yesterday. McNulty said he provided erroneous testimony to Congress in February because he had not been informed that Attorney General Alberto R. Gonzales and his aides had been working with the White House on the firings for nearly two years, the congressional aides said.

The statements Friday, during a private interview with investigators from the House and Senate Judiciary committees, make McNulty the latest senior Justice official to assert that he did not identify any of the U.S. attorneys to be fired and that his role was minimal.

Gonzales, former chief of staff D. Kyle Sampson and William E. Moschella, the principal associate deputy attorney general, also told Congress they did not choose who was fired.

"If the top folks at DOJ weren't the key decision-makers, it's less likely that lower-down people at DOJ were, and much more likely that people in the White House were making the major decisions," said Sen. Charles E. Schumer (D-N.Y.).

Moschella was also interviewed last week. He told investigators he was solely responsible for a provision in the USA Patriot Act reauthorization law that gave Gonzales the authority to appoint U.S. attorneys for an indefinite time, a congressional aide said.

Moschella also said that, when the provision was drawn up in November 2005, he was not aware of a dispute over the appointment of a U.S. attorney in South Dakota, the aide said. Justice officials have pointed to that case as a key justification for the provision, which Congress has since repealed.

Democrats criticized Gonzales yesterday for giving Sampson and his White House liaison in March 2006 the authority to hire and fire certain employees. "It is disturbing to learn that the attorney general was granting extraordinary and sweeping authority to the same political operatives who were plotting with the White House to dilute our system of checks and balances in the confirmation of U.S. attorneys," said Sen. Patrick J. Leahy (D-Vt.).

Administration officials said Gonzales's order, published in the Federal Register and first reported yesterday by the National Journal on its Web site, codifies a process that is standard for agencies throughout the government in dealing with political appointees. "The notion that the White House shouldn't be involved in presidential appointments is bizarre," said White House spokesman Tony Fratto.



DOJ Announces Guilty Plea in P2P Piracy Crackdown
Intellectual Property | 2007/04/30 21:31

A sixth defendant has pleaded guilty in connection with Operation D-Elite, the first criminal enforcement action targeting individuals committing copyright infringement on a peer-to-peer (P2P) network using BitTorrent technology, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney Gregory A. White for the Northern District of Ohio announced today.

Scott D. Harvanek, 22, of Tucson, Ariz., pleaded guilty to a two-count felony information charging him with conspiracy to commit criminal copyright infringement and criminal copyright infringement of a pre-commercial release work in violation of the Family Entertainment Copyright Act. The plea was entered before U.S. District Judge Christopher A. Boyko for the Northern District of Ohio who set a sentencing date for July 23, 2007, at 11 a.m. Mr. Harvanek faces up to five years in prison, a fine of $250,000, and three years of supervised release.

Mr. Harvanek's conviction is the sixth in a series of convictions arising from Operation D-Elite, an ongoing federal crackdown against the illegal distribution of copyrighted movies, software, games and music over P2P networks employing the BitTorrent file sharing technology. Operation D-Elite targeted leading members of a technologically sophisticated P2P network known as Elite Torrents. At its height, the Elite Torrents network attracted more than 133,000 members and facilitated the illegal distribution of more than 17,800 titles—including movies, software, music and games—which were downloaded over 2 million times. The virtually unlimited content selection available on the Elite Torrents network often included illegal copies of copyrighted works before they were available in retail stores or movie theatres. Mr. Harvanek was an "uploader" to the Elite Torrents network, responsible for supplying the network with the first copy of a particular movie or other content that was then made available to the entire network for downloading.

On May 25, 2005, federal agents shut down the Elite Torrents network by taking control of its main server. After seizing the server, authorities replaced the existing Web page with a law enforcement message announcing that "This Site Has Been Permanently Shut Down by the Federal Bureau of Investigation (FBI) and U.S. Immigration and Customs Enforcement (ICE)." Within only one week, the law enforcement message was viewed over half a million times. Operation D-Elite is a joint investigation by ICE and the FBI as part of the Computer and Technology Crime High Tech Response Team (CATCH), a San Diego task force of specially trained prosecutors and law enforcement officers who focus on high-tech crime. Federal and state member agencies of CATCH include ICE, the FBI, the Department of Justice, the San Diego District Attorney's Office, San Diego Police Department, the San Diego Sheriff's Department, and San Diego County Probation.

This case was prosecuted by Andrea Sharrin and Tyler Newby, trial attorneys for the Computer Crime and Intellectual Property Section of the Criminal Division, and Robert W. Kern, Assistant U.S. Attorney for the Northern District of Ohio.



Virginia ends a loophole in gun laws
Law Center | 2007/04/30 12:55

Virginia Gov. Timothy M. Kaine issued an executive order Monday closing the loophole that allowed Virginia Tech gunman Seung-Hui Cho to purchase a firearm despite having been ordered to receive psychiatric treatment by a Virginia court in 2005. The executive order amends Virginia law so that any person who has received involuntary outpatient or inpatient mental health care will be prohibited from purchasing a firearm by having their name and record placed in a database.

Previously, only those receiving inpatient mental health care were to be listed in the database, which allowed Seung-Hui Cho to bypass the screening process. A federal law prohibits persons "who have been adjudicated as a mental defective or who has been committed to a mental institution" from possessing or receiving "any firearm or ammunition."

Legislation to improve enforcement of the National Instant Criminal Background Check System (NICS) has been introduced in the House of Representatives the past three terms, but has never become law.



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