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NY court: Case against ex-AIG execs can continue
Current Legal Issues |
2016/06/02 23:49
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New York's attorney general can continue his legal effort to bar two former American International Group Inc. executives from the securities industry and forfeit any improperly gained profits, the state's highest court ruled Thursday.
The Court of Appeals for the second time refused to dismiss the lawsuit originally filed in 2005 by then-Attorney General Eliot Spitzer, ruling it should go to trial.
The suit claims ex-AIG chief executive Maurice "Hank" Greenberg and ex-chief financial officer Howard Smith had engaged in fraudulent reinsurance transactions to conceal from investors a deteriorating financial condition.
AIG itself resolved state charges as part of a $1.64 billion agreement with regulators in 2006. The insurance giant was bailed out by the federal government in the 2008 financial crisis.
Greenberg and Smith settled related federal Securities and Exchange Commission complaints without admitting wrongdoing in 2009.
Their attorneys challenged the state lawsuit, arguing that New York's Martin Act against securities fraud authorizes neither a permanent industry ban nor disgorgement of profits, and that releases from other settlements barred further financial forfeit.
"As we have previously stated, in an appropriate case, disgorgement may be an available 'equitable remedy distinct from restitution' under the state's anti-fraud legislation," Judge Leslie Stein wrote. "Moreover, as with the attorney general's claim for an injunction, issues of fact exist which prevent us from concluding, as a matter of law that disgorgement is unwarranted."
The court rejected another dismissal motion two years ago, concluding there was sufficient fraud evidence for trial.
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Romania's outgoing PM appears at court for corruption trial
Current Legal Issues |
2015/11/04 14:57
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Romania's outgoing prime minister has appeared at the high court where he's on trial for tax evasion, money-laundering, conflict of interest and making false statements.
Victor Ponta arrived at the High Court for Cassation and Justice Friday, declining comment saying he was now "a private citizen."
Ponta and his Cabinet resigned Wednesday after mass protests following a nightclub fire that killed more than 30. Protesters have staged mass rallies demanding better governance.
The charges Ponta faces refer to a period when he was working as a lawyer. He denies wrongdoing.
Prosecutors say Ponta, who is still a lawmaker, forged expense claims worth at least 181,000 lei ($45,000) from the law firm of political ally. Prosecutors say he pretended he worked as a lawyer to justify getting money from the firm.
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Georgia man accused in hot car death to appear in court
Current Legal Issues |
2015/10/12 14:34
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A Georgia man accused of killing his toddler son by leaving him in a vehicle on a hot day is set to appear in court for a hearing.
Cobb County Superior Court Judge Mary Staley is set to hear arguments on pretrial motions Monday in the case of Justin Ross Harris.
Police have said Harris left 22-month-old Cooper in an SUV for about seven hours on a day when temperatures reached at least the high 80s in the Atlanta area. He faces multiple charges, including malice murder, felony murder and cruelty to children.
Harris has been in custody since June 18, 2014, the day his son died. He was indicted in September 2014 and has pleaded not guilty. His attorneys have said the child's death was a tragic accident.
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Connecticut court stands by decision eliminating execution
Current Legal Issues |
2015/10/11 14:34
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The Connecticut Supreme Court on Thursday stood by its decision to eliminate the state's death penalty, but the fate of capital punishment in the Constitution State technically remains unsettled.
The state's highest court rejected a request by prosecutors to reconsider its landmark August ruling, but prosecutors have filed a motion in another case to make the arguments they would have made if the court had granted the reconsideration motion.
Lawyers who have argued before the court say it would be highly unusual and surprising for the court to reverse itself on such an important issue in a short period of time, but they say it is possible because the makeup of the court is different. Justice Flemming Norcott Jr., who was in the 4-3 majority to abolish the death penalty, reached the mandatory retirement age of 70 and was succeeded by Justice Richard Robinson.
In the August decision, the court ruled that a 2012 state law abolishing capital punishment for future crimes must be applied to the 11 men who still faced execution for killings committed before the law took effect. The decision came in the case of Eduardo Santiago, who was facing the possibility of lethal injection for a 2000 murder-for-hire killing in West Hartford.
The 2012 ban had been passed prospectively because many lawmakers refused to vote for a bill that would spare the death penalty for Joshua Komisarjevsky and Steven Hayes, who were convicted of killing a mother and her two daughters in a highly publicized 2007 home invasion in Cheshire.
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Supreme Court declines to review insider trading case
Current Legal Issues |
2015/10/08 14:33
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The Supreme Court said Monday it won't hear the Obama administration's appeal of a lower court ruling that made it tougher to prosecute people for trading on leaked inside information.
The justices let stand a decision by the federal appeals court in New York last year that threw out insider trading convictions of two high-profile hedge fund managers.
The 2nd U.S. Circuit Court of Appeals overturned the convictions of Anthony Chiasson, of Manhattan, and Todd Newman, of Needham, Massachusetts, after finding they were too far removed from inside information to be prosecuted.
Prosecutors warned the ruling could hinder the government's campaign to curb insider trading on Wall Street, a crackdown that has resulted in more than 80 arrests and 70 convictions over several years.
Chiasson, who co-founded Level Global Investors based in Greenwich, Conn., and Newman, who had worked for Diamondback Capital Management based in Stamford, Conn., traded on tips from insiders on stock in technology companies Dell Inc. and Nvidia Corp. that generated $72 million in profits. The former portfolio managers were both convicted in December 2012.
The appeals court said prosecutors failed to present enough evidence the men willfully engaged in insider trading or conspired to break the law. It ruled that the government must show a person receiving a tip knew that an insider disclosed confidential information and that the tipster passed the information expecting a personal benefit.
In legal briefs filed with the court, Solicitor General Donald Verrilli said leaving the appeals court ruling in place would "hurt market participants, disadvantage scrupulous market analysts and impair the government's ability to protect the fairness and integrity of the securities markets."
Both men have denied insider trading. Their lawyers argued that they believed they were making trades based on legitimate research.
U.S. Attorney Preet Bharara in Manhattan told reporters on a conference call Monday that the Supreme Court's decision means "that there's a category of conduct that arguably will go unpunished going forward."
"If you have a CEO who has access to material, non-published information about earnings or anything else of a very sensitive nature and decides he wants to tip a relative or a buddy or a crony, knowing that person is going to trade on it to the tune and profit of millions of dollars, we would have to think long and hard, given Newman, whether to prosecute a person like that," Bharara said.
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