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AIG and Starr Have Monday Court Date
Court Watch | 2009/06/12 09:34

A long-running legal battle between American International Group Inc. and an investment firm led by its former chief executive, Maurice R. "Hank" Greenberg, is due in federal court Monday. Control of more than $4.3 billion is at stake.

At issue are tens of millions of shares Starr International Co. holds in the giant insurer, as well as tens of millions of shares Starr sold in recent years.

Were the insurance giant to prevail, AIG said Thursday that it intends to use any cash it wins to help pay back the debt it owes the federal government, which rescued it from the brink of bankruptcy in September. Any winnings that it gets in stock, currently worth a far smaller amount than the cash Starr has generated from selling other stock, will be used toward employee long-term compensation.

Mr. Greenberg is expected to testify in the trial, before a jury in federal district court in lower Manhattan. Both sides have retained name-brand counsel, David Boies for Starr, and Theodore Wells for AIG. The case could still settle.

For decades when Mr. Greenberg was at AIG's helm, the shares were used to fund a long-term compensation plan for AIG employees. But after he left in 2005, amid an investigation of AIG's accounting, the program ended and Starr, which is privately held, has been using the funds for other purposes, including investments. AIG says it should control the shares.



PA lawyer to plead guilty in $2.5M corruption case
Court Watch | 2009/06/11 07:38
Federal prosecutors say a Pennsylvania lawyer who allegedly tried to cover up payments he made to a pair of judges in a $2.5 million corruption case will plead guilty.


Prosecutors said Tuesday that 49-year-old Robert Powell of Hazleton falsified records to hide the true income of former Luzerne County judges Mark Ciavarella and Michael Conahan. They said Powell also transferred tens of thousands of dollars in cash to Conahan to avoid federal income taxes.

The former judges have pleaded guilty to accepting payoffs in exchange for placing juveniles in detention facilities operated by companies that Powell co-owned. Their sentencings are pending.

Powell's lawyer said Powell realized he made a mistake. He faces a maximum sentence of more than five years.



Mass. woman pleads not guilty to stabbing toddler
Court Watch | 2009/06/11 07:38
A Massachusetts woman charged with stabbing her 2-year-old daughter over 100 times with scissors has pleaded not guilty.


The Telegram & Gazette reports that Susan Johnson made the plea at her arraignment Wednesday in Worcester (WUH'-ster) Superior Court. She faces a variety of charges including armed assault with intent to murder and attempted murder. She was ordered held on $100,000 bail.

Prosecutors say the 39-year-old attacked the child in an apartment complex's laundry room in Gardner, about 70 miles northwest of Boston.

Authorities says she also tried to strangle the girl with a dryer's electrical cord.

Her lawyer says Johnson has a history of mental illness. She is scheduled back in court July 21.



Anger as nursery worker faces court
Court Watch | 2009/06/11 07:36

A female nursery worker has been jeered and spat at when she appeared in court charged with sexual assault and making and distributing child abuse images.


Vanessa George, who worked at the Little Ted's nursery in Plymouth, was remanded in custody amid angry scenes in the city's magistrates' court.

George, 39, of Douglass Road, Plymouth, faces three counts of sexually assaulting a girl under 13 and one count of sexually assaulting a boy under 13.

She also faces three separate counts of making, possessing and distributing indecent images of children.

The court heard the charges range from January 2007 to this month.

George, wearing a white T-shirt and black trousers, spoke only to confirm her name and address. She entered no pleas, no application for bail was made and she will now appear at Plymouth Crown Court on September 21.

She was jeered and hissed by people in the public gallery as she emerged into the court, and when the charges were read out, parents cried and yelled and one man ran from the court in tears.



High court won't hear casinos-racetracks dispute
Court Watch | 2009/06/09 02:08
The Supreme Court is staying out a fight between Illinois' casinos and horse tracks over a state law that cropped up in the impeachment and indictment of former Gov. Rod Blagojevich.


The casinos object to a law that forces them to transfer of millions of dollars to ailing horse tracks.

Last year, the state Supreme Court unanimously upheld the law. The high court let that ruling stand Monday without comment.

The renewal of the law in 2008 figures in the case against Blagojevich. FBI wiretaps on telephones in Blagojevich's home and the governor's office showed an alleged effort by the then-governor to shake down a racetrack owner for a sizable campaign contribution while the bill was pending. A lawyer for the owner, John Johnston, has said the contribution was not made.

Four secretly recorded conversations about the issue were played at Blagojevich's impeachment trial in the state Senate.



Court won't hear case of man with porn on computer
Court Watch | 2009/06/08 06:25
The Supreme Court won't stop Pennsylvania officials from prosecuting a man whose computer was found to contain child pornography while it was at Circuit City being upgraded.


Kenneth Sodomsky wants the high court to suppress the videos found on his computer, which he had taken into a Circuit City in Wyomissing, Penn., to get a DVD burner installed into it. While the computer was in the store, a worker looked through some of the files and found movie files with "questionable" names referring to boys of various ages. The worker then found a video of a hand reaching toward a penis and called the police.

Police seized the computer, obtained a warrant and found child pornography. Sodomsky moved to suppress the discovery, saying the Circuit City employees had no right to search his computer and show any of its contents to police.

A trial judge agreed, but a state appellate court overturned that decision, saying Sodomsky ran the risk of his illegal files being found and viewed by taking the computer out of his house and to the store.

Circuit City Stores Inc. closed the last of its stores in March.



NYC club bouncer guilty in Boston student's death
Court Watch | 2009/06/04 04:16
A Manhattan nightclub bouncer has been convicted of first-degree murder in the slaying of a graduate student from Boston.


Darryl Littlejohn looked straight ahead as the jury verdict was read Wednesday.

The 44-year-old parolee faces up to life in prison in the 2006 death of criminal justice student Imette St. Guillen (ih-MET' saynt GEE'-yen) of Boston. His sentencing is set for July 8.

Littlejohn is already serving 25 years to life for kidnapping another woman.

The defense said Littlejohn was framed in the St. Guillen case, which stirred memories of New York's notorious "preppie killer" slaying and spurred a city crackdown on nightlife security.



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