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Businessman gets 33 months for contract fraud
Court Watch |
2008/02/29 03:49
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A Chicago-area businessman has been sentenced to 33 months in prison for helping an American subsidiary of Siemens AG land a fraudulent contract with Cook County's Stroger (STROH'-jer) Hospital. Faust Villazan of Western Springs pleaded guilty in May to one count of wire fraud and one count of mail fraud. Villazan is the former owner of the since-dissolved Faustech Industries. The company qualified as a minority-owned business and allegedly posed as a 30% partner with the Siemens subsidiary when the larger company sought the $49 million contract. The Siemens subsidiary was also ordered to pay $2.5 million in fines and restitution. |
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EBay Settles Its Patent Dispute
Patent Law |
2008/02/29 01:47
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EBay Inc. said Thursday it has settled a long-running patent dispute over features on its Web site that allowed customers to purchase items without using the company's popular auction service. The dispute with MercExchange LLC revolved around the "buy it now" feature used on eBay's site. The company was sued over the matter in 2001 and saw the case wind all the way to the U.S. Supreme Court, which issued a decision that resulted to changes in how patent owners can block use of their patents. See full story. In a statement Thursday, eBay said it reached a settlement with MercExchange -- as patent holding firm -- to dismiss all claims under the lawsuit. Under the terms of the settlement, eBay said it will buy three patents involved in the case as well as some additional technologies. Financial terms were not disclosed, though the company said the settlement will not affect its results or outlook for 2008. |
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Bush will press for action on surveillance bill
Politics |
2008/02/28 09:00
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President Bush said Thursday that the country is not headed into a recession and, despite expressing concern about slowing economic growth, rejected for now any additional stimulus efforts. "We've acted robustly," he said. "We'll see the effects of this pro-growth package," Bush told reporters at a White House news conference. "I know there's a lot of, here in Washington people are trying to — stimulus package two — and all that stuff. Why don't we let stimulus package one, which seemed like a good idea at the time, have a chance to kick in?" Bush's view of the economy was decidedly rosier than that of many economists, who say the country is nearing recession territory or may already be there. The centerpiece of government efforts to brace the wobbly economy is a package Congress passed and Bush signed last month. It will rush rebates ranging from $300 to $1,200 to millions of people and give tax incentives to businesses. On one issue particularly worrisome to American consumers, there are indications that paying $4 for a gallon of gasoline is not out of the question once the summer driving season arrives. Asked about that, Bush said "That's interesting. I hadn't heard that. ... I know it's high now." Bush also used his news conference to press Congress to give telecommunications companies legal immunity for helping the government eavesdrop after the Sept. 11 terrorist attacks. He continued a near-daily effort to prod lawmakers into passing his version of a law to make it easier for the government to conduct domestic eavesdropping on suspected terrorists' phone calls and e-mails. He says the country is in more danger now that a temporary surveillance law has expired. The president and Congress are in a showdown over Bush's demand on the immunity issue. Bush said the companies helped the government after being told "that their assistance was legal and vital to national security." "Allowing these lawsuits to proceed would be unfair," he said. More important, Bush added, "the litigation process could lead to the disclosure of information about how we conduct surveillance and it would give al Qaida and others a roadmap as to how to avoid the surveillance." The Senate passed its version of the surveillance bill earlier this month, and it provides retroactive legal protection for telecommunications companies that wiretapped U.S. phone and computer lines at the government's request and without court permission. The House version, approved in October, does not include telecom immunity. |
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Mich. Court Rejects Detroit Mayor Case
Court Watch |
2008/02/28 07:06
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The state's highest court on Wednesday rejected an attempt by the city's mayor to prevent documents from being made public that detail a city settlement that helped conceal an apparent affair with a top aide. The Michigan Supreme Court unanimously upheld two lower court rulings ordering the release of documents. They were made public hours after the ruling. The papers pertain to an $8.4 million settlement between the city and two former police officers who alleged they were fired or forced to resign for investigating claims that Mayor Kwame Kilpatrick used his security unit to cover up extramarital affairs. They include the initial settlement agreement between the city and the former officers, which makes reference to embarrassing and sexually explicit text messages between Kilpatrick and former Chief of Staff Christine Beatty. The unsealed documents do not include transcripts of the actual messages. They also include a transcript of a Jan. 30 deposition of attorney Michael Stefani, who represented the two former officers in their lawsuit, by lawyers for two newspapers that sued to get the sealed documents, The Detroit Free Press and The Detroit News. In the deposition, Stefani said he thought Kilpatrick rejected an Oct. 17 settlement agreement because the Free Press had filed a Freedom of Information Act request for the settlement. "I'm presuming, but don't know for a fact, that they — that is, Mayor Kilpatrick and perhaps Beatty, did not ... want the reference to the text messages in the settlement agreement," Stefani said. After the mayor rejected that agreement, a separate confidentiality agreement detailing how the text messages would be kept secret was reached Nov. 1 between all parties. City Corporation Counsel John Johnson said the city is disappointed by the ruling. "Opening up settlement information to public view will most certainly put a chilling effect on parties trying to settle cases," Johnson said in a statement. "This ruling discourages the city from entering into the time honored and cost effective process of mediation." The Detroit Free Press and The Detroit News sued the city to get the sealed documents. The city argued the documents should remain sealed because they involved communications between attorneys during court-ordered mediation, but the high court ruled "there is no FOIA exemption for settlement agreements," referring to the state's Freedom of Information Act. The Free Press first reported last month about the text messages between the married mayor and Beatty, who also was married at the time. The newspaper has not said how it obtained the messages. Both denied under oath having a physical relationship during the former officers' lawsuit, and the unsealed documents could be used in an ongoing perjury investigation of Kilpatrick. Wayne County Prosecutor Kym Worthy is investigating and has said she expects to have a decision by mid-March. "This is complete vindication for the idea that public officials cannot lie under oath and go behind closed doors in secrecy to make decisions with so much public money in the balance," Free Press Editor Paul Anger said in a story posted on the paper's Web site. "The public's right to know has been upheld." James E. Stewart, attorney for the News, said the public will soon "have access to their own records. These are public records involving the expenditure of millions of dollars of public money that the mayor has attempted to keep from the public and the City Council." |
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Justices Let Age Bias Lawsuit Move Ahead
Breaking Legal News |
2008/02/28 07:05
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The Supreme Court yesterday gave the benefit of the doubt to a FedEx worker who claimed age discrimination, and said her case should not be thrown out because of mistakes made by the Equal Employment Opportunity Commission. The court ruled 7 to 2 that Patricia Kennedy's suit could move forward, even though her employer had not been notified by the EEOC that Kennedy and others had made charges against it, as the Age Discrimination in Employment Act requires. The act says that a formal charge must be made with the agency before a lawsuit can be filed, and that in that interim, the EEOC is to notify the company, investigate the claim and seek conciliation between the employer and employee before lawyers and judges become involved. At oral argument, it became clear that the form Kennedy filed with the EEOC sometimes was considered by the agency to constitute a formal charge, and sometimes not. Justices criticized the government for the inconsistency, and it responded that it is changing its policies. Justice Anthony M. Kennedy's opinion said that because of the lack of clarity on the part of EEOC, "both sides lost the benefits" of the informal dispute resolution process, and it again criticized the agency. But the majority said that the form and documents Patricia Kennedy filed could be considered a formal charge and that she should be allowed to proceed with her lawsuit. Justices Clarence Thomas and Antonin Scalia dissented, saying the court's "malleability" was wrong. "Given the court's utterly vague criteria, whatever the agency later decides to regard as a charge is a charge -- and the statutorily required notice to the employer and conciliation process will be evaded in the future as it has been in this case," wrote Thomas, who was head of the EEOC for a time in the 1980s. The decision was the court's second in two days regarding the age discrimination statute, both of them rather narrowly drawn. The case is Federal Express Corp. v. Holowecki
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Man Pleads Not Guilty to 1983 Robbery
Criminal Law |
2008/02/28 06:07
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An alleged Puerto Rican militant has pleaded not guilty to robbing a Connecticut armored car depot in 1983. Avelino Gonzalez Claudio had fought extradition to the U.S. from Puerto Rico, but a federal judge there rejected his bail request. He appeared Thursday in U.S. District Court in Hartford. Gonzalez was arrested by the FBI earlier this month in Puerto Rico. The 65-year-old had been working there as a teacher and living under an assumed name. Gonzalez is one of more than a dozen people indicted in the Sept. 12, 1983, robbery of about $7 million from a Wells Fargo armored car depot in West Hartford. He is being held without bond and is due back in court Tuesday for a bond hearing. |
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Body Parts Boss Can Plead Guilty in NYC
Court Watch |
2008/02/28 06:07
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Prosecutors had misgivings after making a plea deal with a man accused of plundering dead bodies and selling their parts to tissue companies for transplants. The victims' families clamored for a trial, and prosecutors felt there was plenty of evidence for one. So they moved to rescind the deal. They were rebuked Wednesday by a judge, who said their regrets weren't grounds for them to renege on an agreement reached weeks ago. The judge's order means Michael Mastromarino, 44, will go to prison for 18 to 54 years for his ghoulish crimes — possibly putting him behind bars for the rest of his life. "Mr. Mastromarino may never see the light of day," said Brooklyn Judge Albert Tomei, whose words brought Mastromarino's mother to tears. Prosecutor Monique Ferrell said there had been a "change in circumstance" and a trial was needed to reveal the full "scope of harm he caused." She said prosecutors became fully aware of his activities only in the last year. In a statement e-mailed after the hearing, a spokesman for the Brooklyn district attorney's office provided a clearer explanation of why prosecutors sought a trial. |
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