Court won't get into battle between 2 USCs
Legal Topics | 2010/10/04 14:29

The Supreme Court won't decide who really owns the initials "SC" when it comes to college sports: the University of Southern California or the University of South Carolina.

The high court on Monday refused to hear an appeal from South Carolina, which wanted to trademark a baseball cap logo with the initials "SC."

The Trojans already have a trademark on a version of "SC" and say the Gamecocks' symbol looks too much like theirs. The California school says it has sold tens of millions of dollars of apparel with "SC" on it, while South Carolina only wanted to start using those initials on baseball caps in 1997.

Courts have rejected South Carolina's trademark.

The case is University of South Carolina v. University of Southern California, 09-1270.



SEC Has Toughened Enforcement Efforts, Agency Says
Legal Topics | 2010/09/22 18:27

The Securities and Exchange Commission's chief enforcement official says the agency has toughened its efforts to shut down financial misconduct after failing to act quickly in the cases of R. Allen Stanford and Bernard Madoff.

SEC Enforcement Director Robert Khuzami says in testimony prepared for a Senate hearing that "we have moved aggressively" to put in place reforms recommended by the SEC inspector general. The IG found that the SEC knew since 1997 that Stanford likely was operating a Ponzi scheme but waited 12 years to bring fraud charges against the billionaire.

Khuzami also tells the Senate Banking Committee the SEC is working to provide "maximum recovery" to investors hurt in Stanford's alleged $7 billion fraud.

Stanford has been in federal prison since his indictment in June 2009 on criminal charges that his international banking business was really a pyramid scheme. He is disputing the charges. He faces a life sentence if convicted.

The SEC didn't bring civil fraud charges against Stanford until February 2009. SEC Inspector General David Kotz said in a report issued in April that "institutional influence" in the enforcement division was a factor in the agency's repeated decisions not to conduct a full investigation.

The report found that SEC enforcement officials discouraged cases that couldn't be resolved quickly. And it said an SEC enforcement official who helped quash investigations later legally represented Stanford.

The SEC's office in Fort Worth, Texas, had conducted "examination after examination" of Stanford's business over eight years, but "merely watched the alleged fraud grow, and failed to take any action to stop it," Kotz testified at Wednesday's hearing.



Defendant pleads guilty in NJ in $880M fraud case
Legal Topics | 2010/09/16 15:55

A Florida man known for his sports-related philanthropy pleaded guilty Wednesday to running a multistate Ponzi scheme that prosecutors say left investors with up to $100 million in losses.

Nevin Shapiro pleaded guilty in New Jersey federal court to one count of securities fraud and one count of money laundering as part of an agreement that still has him facing up to 17 years in prison at his Jan. 4 sentencing.

Prosecutors say 41-year-old Shapiro of Miami Beach, used a Florida-based company called Capitol Investments, USA, Inc., to raise nearly $900 million from investors who thought they were buying into a wholesale grocery distribution business.

Charges filed by the Securities and Exchange Commission claim Shapiro promised investors risk-free annual returns as high as 26 percent by persuading them to invest in a "grocery diversion" enterprise — a practice of buying low-cost groceries in one region of the country and reselling them in higher-priced markets.

Shapiro allegedly siphoned at least $35 million of the proceeds for personal use, including $23 million for salaries and commissions for himself, $5 million for a Miami Beach mansion and $400,000 for courtside Miami Heat basketball tickets. He also spent lavishly on luxury cars, a high-stakes gambling habit, and a pair of diamond-studded handcuffs given to an unnamed prominent athlete, according to court documents.



Officials rescue 37 immigrants from Calif. house
Legal Topics | 2010/09/09 10:33

Immigration authorities have rescued more than three dozen immigrants who were locked inside a sweltering boarded-up bedroom in a Southern California house.

Immigration and Customs Enforcement officials said Wednesday some of the 37 immigrants from six Latin American countries had been held for weeks in the 10-by-10-foot room in Riverside and had gone several days without food.

The immigrants, mostly men, had been stripped of their shoes and were found lying on the floor. Three children under 3 years old were also found inside the room, said Debra Parker, assistant special agent in charge for ICE Homeland Security Investigations in Riverside.

Authorities say they began searching for the house after a caller reported smugglers had threatened to kill his relative when the family could not pay for his release. After scouring the area for two days, including with an infrared-equipped helicopter, officials searched the home Tuesday afternoon.

Smugglers often hold illegal immigrants in so-called drop houses for days or weeks while collecting payment for bringing them into the country.



Court won't force Calif officials to defend Prop 8
Legal Topics | 2010/09/02 22:11

A California court has refused to order Gov. Arnold Schwarzenegger and Attorney General Jerry Brown to appeal a ruling that overturned the state's gay marriage ban.

The 3rd District Court of Appeal on Wednesday denied a conservative legal group's request to force the officials to defend voter-approved Proposition 8.

Presiding Justice Arthur Scotland did not explain why the appeals court turned down the request filed two days earlier by the Pacific Justice Institute.

The institute now plans to take the matter to the California Supreme Court, Chief Counsel Kevin Snider said Thursday.

"We are disappointed that the appellate court showed indecisiveness in trying to prevent a constitutional crisis," Snider said. "They didn't want to deal with it."

The institute maintains the attorney general and governor have the duty to uphold all laws, not just those with which they personally agree.

Chief U.S. District Judge Vaughn Walker struck down Proposition 8 as unconstitutional last month.

The measure approved by 52 percent of California voters in November 2008 amended the state Constitution to outlaw same-sex unions five months after the state Supreme Court legalized them.

The state has until Sept. 11 to challenge Walker's ruling. Both Brown and Schwarzenegger have said they don't plan an appeal.



Thousands sign on for $10 billion BP suit
Legal Topics | 2010/08/30 16:08

The revelation that BP's Texas City refinery emitted toxic benzene for more than a month has ignited a furor in the port community that has suffered its share of deadly industrial accidents and toxic spills.

Thousands of residents who fear they may have been exposed to the known carcinogen released at the oil refinery from April 6 to May 16 have been flooding parking lots and conference halls where local trial attorneys hosted information sessions and sought clients for class-action lawsuits against the oil giant.

BP faces the new challenge just as it is reaching a key milestone in another crisis — plugging the Gulf of Mexico well that blew out in an oil spill disaster that is costing the company billions of dollars.

On Wednesday, more than 3,400 people lined the hallways and sidewalks around the Nessler Center to sign on to a $10 billion class-action lawsuit filed Tuesday in Galveston federal court by Friendswood attorney Anthony Buzbee.

The lawsuit alleges the release of 500,000 pounds of chemicals - including 17,000 pounds of benzene - has jeopardized the health and property values of people who live and work in the area. At the nearby College of the Mainland, a separate town hall meeting drew a crowd of 600.

"I've never seen anything like this," Buzbee said, looking at the lines waiting to enter a large room at the civic center where lawyers helped people fill out paperwork. "I can't believe this is mass hysteria and that everybody here is a faker," Buzbee said.

Webster-based lawyer Chad Pinkerton said he's met with about 8,000 residents over the past week. "I believe this is probably the largest prolonged release in Texas history and many, many people are sick," he said.

Word of the lawsuits spread this week, propelled in part by rumors that BP was cutting checks to head off the benzene claims from the $20 billion fund established to pay claims related to the oil spill.



Ruling overturning Prop 8 shaped for higher courts?
Legal Topics | 2010/08/23 16:14

When U.S. District Judge Vaughn Walker struck down California's Proposition 8—the 2008 ballot initiative to outlaw gay marriage—he said the motivation for the majority of voters was clear.

"The evidence shows conclusively that moral and religious views form the only basis for a belief that same-sex couples are different from opposite-sex couples," Walker wrote in his sweeping, 136-page decision announced August 4 in San Francisco. "These interests do not provide a rational basis for supporting Proposition 8."

In Walker's reasoning, religion amounts to a "private moral view," which should not infringe upon the constitutional rights of others. While some legal scholars say Walker's decision lands on firm legal ground—a law must advance a secular purpose to pass constitutional muster—some religious leaders accuse the judge of trying to scrub faith from the public square.

On August 5, Prop 8's supporters filed an appeal of Walker's decision. Jim Campbell, an attorney with the Alliance Defense Fund, a conservative Christian law firm involved in the litigation, said the religious freedom argument will play an important role as the case moves up the federal judicial ladder—including, potentially, the U.S. Supreme Court.



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