Navy subcontractor pleads guilty in bribe case
Areas of Focus | 2011/06/20 13:12

A Navy subcontractor pleaded guilty Friday in Rhode Island for his part in what federal prosecutors say was a kickback scheme that cost the Navy millions of dollars.

Russell Spencer's plea was part of an agreement with prosecutors in which he promised to cooperate with authorities as he has been since investigators approached him in June 2010.

Spencer, 56, pleaded guilty to conspiring to commit bribery in helping funnel money, through his businesses, from a Navy contractor to a civilian Navy employee who prosecutors say then bumped up funding to the contractor. Prosecutors say the scheme cost the Navy between $7 million and $20 million.

The case prompted an internal Navy investigation that resulted in military officials in Washington suspending the contracting authority of Newport's Naval Undersea Warfare Center. The Navy said a host of contracting problems at the facility enabled the scheme.

According to the government, Ralph M. Mariano of Arlington, Va., who worked at the warfare center, initiated the scheme by threatening to use his position to reduce funding for contracts held by Advanced Solutions for Tomorrow if company owner Anjan Dutta-Gupta didn't kick back money to Mariano.

Dutta-Gupta, of Roswell, Ga., has pleaded guilty to paying $8 million in bribes over more than a decade. Mariano has been charged, but not indicted. He has declined to comment on the allegations, and remains free on bond.




Court says age must be considered in interrogation
Headline Legal News | 2011/06/20 11:13

A divided Supreme Court said Thursday that police and courts must consider a child's age when examining whether a boy or girl is in custody, a move the court's liberals called "common sense" but the conservatives called an "extreme makeover" of Miranda rights.

The 5-4 decision came in a case in which police obtained a confession from a seventh-grade special education student while questioning him at school about a rash of break-ins in Chapel Hill, N.C., without reading him his Miranda rights, telling him he could leave or call his relatives.

Justice Sonia Sotomayor, a former prosecutor who wrote the opinion, said police have to consider the child's age before talking to him or her about a crime. Courts also have to take the child's age into consideration when deciding whether that confession can be used in court, she said.

"It is beyond dispute that children will often feel bound to submit to police questioning when an adult in the same circumstances would feel free to leave," Sotomayor said, adding there was no reason for "police officers or courts to blind themselves to that commonsense reality."

But Justice Samuel Alito, also a former prosecutor, said the point of Miranda was that police would have clear, objective guidelines to follow. Opening the door to considering age likely will mean that other characteristics could soon be added to the list, such as educational level, I.Q. and cultural background, he said.

"Safeguarding the constitutional rights of minors does not require the extreme makeover of Miranda that today's decision may portend," Alito said in the dissent.

The special education student, known as JDB in court papers, was 13 in 2005 when he confessed while interviewed by police and school officials in a closed room at his school.




US court lets class action against Bayer proceed
Areas of Focus | 2011/06/20 09:13

The Supreme Court will let two West Virginia residents revive a lawsuit against Bayer AG over its anti-cholesterol drug Baycol, which was withdrawn from the market in 2001 after reports of a severe and sometimes fatal muscle disorder.

The high court on Thursday unanimously agreed to let Kevin Smith and Shirley Sperlazza's class-action lawsuit against Bayer go forward.

The 8th U.S. Court of Appeals had thrown out their lawsuit out after a federal judge overseeing multistate litigation against Bayer refused to let other West Virginians file a similar class-action lawsuit against the corporation.

The high court said that decision was incorrect.




Strauss-Kahn said he had diplomatic immunity
Legal Topics | 2011/06/17 17:12

Dominique Strauss-Kahn declared he had diplomatic immunity and complained that his handcuffs were too tight after he was taken into custody on allegations he tried to rape a Manhattan hotel maid, court documents show.

The documents filed Thursday by prosecutors provide a chronology of statements leading to the arrest of the former leader of the International Monetary Fund, who was taken into custody by Port Authority police at John F. Kennedy International Airport on May 14 as he tried to leave on a Paris-bound flight.

One of his attorneys, Benjamin Brafman, said Thursday he had no comment.

Strauss-Kahn, who is free on $1 million bail under house arrest at a luxury townhouse, maintains he did not attack the maid at Sofitel hotel.

The new court documents describe Strauss-Kahn seemingly confused as he is taken into custody.

"I have diplomatic immunity," Strauss-Kahn told officers, according to the documents. "... Can I speak with someone from the French consulate? What is this about?"

He asked detectives whether he needs an attorney, responded to questions about whether he is hungry (at one point saying he would "like some eggs") and complained about his handcuffs, the documents say.

"Manhattan detectives need to speak with you about an incident in a hotel room," responded one detective as they go from the airport to the Manhattan Special Victims Squad on May 14 at about 5:15 p.m., the documents say.




Court won't hear restitution claim in Ponzi case
Areas of Focus | 2011/06/14 02:11
The Supreme Court has rejected an appeal from investment funds seeking repayment of their losses in a $3.7 billion Ponzi scheme operated by Minnesota businessman Thomas Petters.

The funds together lost $165 million and challenged a federal judge's order denying restitution to any of Petters' victims. Among other things, the court said the victims would have other ways of recouping some of their money.

The justices on Monday refused to disturb the ruling.

A federal law generally requires a court to order restitution as part of a defendant's sentence, but allows for some exceptions. The judge in this case said that restitution would be too complex, take too long and result in the payment of less than a penny for each dollar victims lost.


Court orders reconsideration of parole judgment
Areas of Focus | 2011/06/14 02:10
The Supreme Court has ordered a lower court to reconsider its decision to release a criminal on parole.

The high court threw out a lower court decision ordering John Pirtle and other prisoners released from prison on parole.

Pirtle was convicted of killing his wife, and the parole board started denying him parole in 2002. Pirtle sued in federal court, saying his parole was denied without any proof that he posed a danger if he got out.

The lower courts agreed with him and ordered him and other prisoners in similar situations released on parole.

The high court threw out that decision in a summary judgment and ordered the 9th U.S. Circuit Court of Appeals in San Francisco to reconsider it.


2 ex-judges, lawyer back to prison in Miss scheme
Headline Legal News | 2011/06/14 02:10
Two ex-judges and an attorney from Mississippi must return to federal prison for their convictions in a loan scheme.

A federal appeals court had vacated their bribery convictions but upheld the guilty verdicts on corruption charges. So they needed to be resentenced.

U.S. District Judge Henry T. Wingate denied requests by Paul Minor and former Harrison County judges Wes Teel and John Whitfield to be re-sentenced to time they have already served.

Wingate on Monday sentenced Minor to eight years, Teel to four and Whitfield about six — all less than previous.

Prosecutors said Minor would guarantee loans for the judges, then used cash and third parties to pay off the debts. Judges then ruled in his favor in civil cases. He has long said he is innocent and was making loans to help friends.


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