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Madoff to appear in NYC court for bail hearing
Securities | 2009/01/14 08:47
Prosecutors asked a federal judge Tuesday to jail besieged financier Bernard Madoff, saying he tried to pick "winners and losers" in his $50 billion fraud when he and his wife shipped more than $1 million in jewelry to relatives and friends over the holidays.


Assistant U.S. Attorney Marc Litt said in a letter to U.S. District Judge Lawrence M. McKenna that there were no conditions of bail that will ensure the 70-year-old former Nasdaq chairman is not a danger to do financial harm to the community and a risk to flee.

"No matter the loss amount determined by the sentencing court, it appears that defendant will not be able to come remotely close to having the resources necessary to make his victims whole," Litt wrote. "Accordingly, every possible penny of the defendant's assets must be protected from dissipation."

Madoff was scheduled to be at a hearing before the judge Wednesday afternoon, two days after a magistrate judge ruled that he could remain in his $7 million penthouse despite government claims he was trying to disperse valuable jewelry and watches to close relatives and friends.

"By doing so, the defendant showed that he would not be deterred in his efforts to pick the winners and losers of his fraudulent scheme," Litt said.



Court says evidence valid despite police error
Court Watch | 2009/01/14 08:47
The Supreme Court ruled Wednesday that evidence found after an arrest based on incorrect information from police files may be used against a criminal suspect.


In a 5-4 split, the court upheld the conviction of an Alabama man on federal drug and gun charges.

Bennie Dean Herring was arrested on what the Coffee County, Ala., sheriff's department thought was a valid warrant from a neighboring county. It turned out that the warrant for Herring's arrest had been recalled five months earlier.

Herring argued that police negligence should automatically lead to the suppression of evidence found after an unjustified arrest.

But Chief Justice John Roberts, writing for the court, said the evidence may be used "when police mistakes are the result of negligence such as that described here, rather than systemic error or reckless disregard of constitutional requirements."

Justices Samuel Alito, Anthony Kennedy, Antonin Scalia and Clarence Thomas sided with Roberts.

In a dissent for the other four justices, Justice Ruth Bader Ginsburg said the ruling "leaves Herring, and others like him, with no remedy for violations of their constitutional rights."

Ginsburg said accurate police record-keeping is of paramount importance, particularly with the widespread use of electronic databases. Justices Stephen Breyer, David Souter and John Paul Stevens also dissented.



New restrictions on Madoff, but no jail for now
Securities | 2009/01/13 08:54
A judge on Monday allowed Bernard Madoff to remain confined to his Manhattan penthouse, rejecting a bid to jail the disgraced financier but imposing new restrictions to keep him from mailing any more valuables to family and friends.


In a ruling that provided limited satisfaction to investors wiped out in what may be the largest Ponzi scheme ever, Magistrate Judge Ronald L. Ellis ordered Madoff to take an inventory of the items in his $7 million apartment and submit his outgoing mail to security checks.

Prosecutors said they would ask another judge to jail Madoff while he awaits trial.

"There is a thirst for blood that transcends just those who have been victimized," said attorney Stephen A. Weiss, who added that some of his several dozen Madoff investors "just want to have this guy's head."

Sweeping aside the emotions of the case, the judge cited laws requiring that defendants be allowed to stay out on bail before trial unless they are a danger to the community or a threat to flee.

Those standards make it difficult for prosecutors to have white-collar defendants jailed before trial. The judge noted suspects in nearly 75 percent of federal fraud cases are granted bail.

Prosecutors said they planned to appeal the ruling and ask another judge to revoke Madoff's bail. The judge stayed his ruling for 48 hours, meaning the new restrictions will not take effect right away.

The judge also said restrictions in a separate civil case that apply to property under Madoff's control would apply to the criminal case — meaning moving money around by computer would violate his bail conditions.

But in keeping Madoff out of jail for now, Ellis said it did not matter that Madoff was charged in what appears to be the largest Ponzi scheme in history, that Madoff is publicly vilified or that a conviction might bring a long prison term.



Report: US Marshals misused as sports escorts
Breaking Legal News | 2009/01/13 08:53
Investigators say a lawyer for the U.S. Marshals Service used government cars and armed deputies to drive himself and broadcasters to major sporting events like the Super Bowl and the World Series.


A report issued Monday by the Justice Department's inspector general was highly critical of the lawyer, Joseph Band, who worked in the agency's Washington office.

Band also worked as a part-time statistician for Fox Sports, and he came under scrutiny after he received rides to two World Series games in 2007 in Boston, as well as the 2008 Super Bowl in Phoenix.

The report issued Monday by Inspector General Glenn Fine found Band sometimes got escorts not just for himself, but for broadcasters as well.

Fox Sports spokesman Dan Bell said company officials were unaware "that those arrangements were in any way inappropriate, and regret to learn now that they apparently were."

Fine said use of armed government agents as a VIP car service violates ethical standards, and U.S. Marshals in the cities Band visited should not have agreed to his requests.

Band "regularly and inappropriately solicited and received assistance of (marshal service) resources for his personal activities, in violation of government ethical rules," the report concluded.



Court limits use of law aimed at career criminals
Law Center | 2009/01/13 08:53
The Supreme Court has ruled that a failure to report for prison does not count as a violent crime under a federal law intended to keep repeat criminals in prison longer.


A unanimous court on Tuesday threw out a mandatory 15-year prison term given to Deondery Chambers, who pleaded guilty to being a felon in possession of a gun. Chambers had three prior convictions, which prosecutors argued and lower courts agreed brought him under the federal Armed Career Criminal Act.

But one of Chambers' convictions was for his "failure to report" for weekend jail stays. The government contended that not showing up for the weekend confinement was akin to an escape and should be treated as a violent crime.

Justice Stephen Breyer rejected that argument in his opinion for the court. Breyer said a report that examined failures to report to prison found no evidence that defendants were more likely to resist arrest and potentially injure law enforcement officers or others.

In a separate opinion, Justice Samuel Alito said the court is called on too often to interpret the career criminal law and suggested that Congress come up with a list of specific crimes that should trigger application of the law.

In a second criminal case, the court unanimously ruled for a Texas prison inmate seeking federal review of his 43-year prison term. The federal appeals court in New Orleans was wrong to find that Carlos Jiminez had missed a deadline for filing his paperwork in federal court, Justice Clarence Thomas said for the court.

The cases are Chambers v. U.S., 06-11206, and Jiminez v. Quarterman, 07-6984.



Wash. court rules that truants entitled to lawyer
Court Watch | 2009/01/13 08:53
A panel of judges has apparently made Washington the first state to rule that juvenile students accused of chronically cutting classes in public schools are entitled to a lawyer in their first court hearing.


The Washington state Court of Appeals ruled Monday that denying a juvenile the right to a lawyer from the outset violated constitutional requirements.

Dan Donohoe, a spokesman for the King County prosecutor's office, said the ruling was under review and no decision had been made on whether to appeal to the state Supreme Court.

If it stands, the decision could make Washington the first state in which a juvenile is entitled to counsel at the outset of court truancy proceedings that could lead to penalties, said Paul M. Holland, director of the Ronald A. Peterson Law Clinic at Seattle University, which represented the student in the case.

"I am not aware of any states that provide lawyers at the initial stage of truancy proceedings," Holland said. "That is the most noteworthy part of this ruling."

He said it also is part of a growing body of law that recognizes the right to an attorney in certain civil matters as well as the well-established requirement for representation in criminal cases.

Under the law, a juvenile with at least seven unexcused absences in a month or 10 in a school year could be ordered to appear in Juvenile Court on a petition by school officials or the youngster's parents without being represented by an attorney.

The appeals court's decision was hailed by the American Civil Liberties Union, which filed a brief supporting the juvenile, a Bellevue girl identified only as E.S. and described as an emotionally troubled member of a refugee family from Bosnia.



Illinois county starts new court for veterans
Breaking Legal News | 2009/01/13 08:52
With combat duty in Vietnam under his belt, Madison County Circuit Judge Charles Romani Jr. knows veterans often have special issues when it comes to drugs and mental illness. Soon, many of them may be getting his special judicial help.

Taking a page from a similar program launched a year ago in New York, court administrators in this suburban St. Louis county plan to launch within weeks a new court designed to deal only with military veterans charged with nonviolent crimes.

The mission: Divert many of the veterans from the criminal courts to a program that, much like popular drug courts, will offer them treatment for underlying issues, perhaps sparing them a criminal conviction if they successfully complete the treatment.

"There are a lot of services out there; one thing the court will be able to do is get them connected" with veterans, ideally keeping them from becoming repeat offenders, Ann Callis, the county's chief judge, said Monday.

Veterans' participation in the new court will be voluntary and Callis said it will be staffed by veterans from virtually every branch of the military. The prosecutor will be former Marine Corps Cpl. Michael Stewart, the public defender former Navy Lt. Tyler Bateman — officials Callis hopes will have a better understanding of veterans' issues.

Callis said she hoped the veterans' court would be under way by the end of next month or early March, with no immediate expectations about how many veterans might take part.

No additional funding would be required for the court, and Madison County Bar Association lawyers will donate their services, Callis said. "Since we're not asking for any money and it's based on the spirit of volunteerism, we figured why don't we just give it a shot?" she said.



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