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Supreme Court allows Stanford Ponzi scheme suits
Topics in Legal News |
2014/02/28 15:19
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The Supreme Court ruled Wednesday that victims of former Texas tycoon R. Allen Stanford's massive Ponzi scheme can go forward with class-action lawsuits against the law firms, accountants and investment companies that allegedly aided the $7.2 billion fraud.
The decision is a loss for firms that claimed federal securities law insulated them from state class-action lawsuits and sought to have the cases thrown out. But it offers another avenue for more than 21,000 of Stanford's bilked investors to try to recover their lost savings.
Federal law says class-action lawsuits related to securities fraud cannot be filed under state law, as these cases were. But a federal appeals court said the cases could move forward because the main part of the fraud involved certificates of deposit, not stocks and other securities.
The high court agreed in a 7-2 decision, with the two dissenting justices warning that the ruling would lead to an explosion of state class-action lawsuits. |
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CA man sentenced on drug charge in fed court in SD
Court News |
2014/02/28 15:19
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A California man has been sentenced in federal court in South Dakota for his role in a conspiracy to distribute marijuana.
U.S. Attorney Brendan Johnson says 29-year-old Brett McFarland, of Korbel, Calif., was sentenced to five years in prison to be followed by four years of supervised release.
McFarland pleaded guilty last November to a drug distribution conspiracy charge. A money laundering conspiracy charge was dropped.
Johnson says McFarland has agreed to forfeit to the government his interest in proceeds from the sale of property in Petrolia, Calif., that was bought with drug proceeds. |
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Moscow court sends 7 to prison for protest rally
Press Release |
2014/02/24 14:55
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A Russian court handed down prison sentences Monday of up to four years for seven people who took part in a 2012 protest against Vladimir Putin. An eighth defendant received a suspended sentence.
Hundreds of their supporters gathered outside the courthouse to condemn the trial and the Kremlin's crackdown on opposition. Police detained about 200 of them, accusing them of violating public order.
Among those detained were members of the punk band Pussy Riot who had spent nearly two years in prison as punishment for their own anti-Putin protest.
The defendants sentenced Monday were among 28 people rounded up after the May 6, 2012, protest on the eve of Putin's inauguration for a third presidential term. The rally turned violent after police restricted access to Bolotnaya Square, across the river from the Kremlin, where the protesters had permission to gather.
The eight defendants were found guilty last week, but sentencing was postponed until Monday. All have been in custody for nearly two years except for Anastasia Dukhanina, 20, who was under house arrest. She was given a suspended sentence. |
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Court: Spain can extradite Liberty Reserve founder
Headline Legal News |
2014/02/24 14:54
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A Spanish court has ruled that a man accused of being behind one of the world’s biggest money laundering businesses can be extradited to the U.S. to face charges there.
Arthur Budovsky, who founded currency transfer and payment processing company Liberty Reserves, can appeal the ruling, the National Court said late Friday. Spain’s government must also approve the decision for an extradition to happen.
It wasn’t immediately clear if Budovsky would appeal. The 40-year-old Costa Rican, who was arrested at Madrid airport in May 2013, has acknowledged founding Liberty Reserve in 2006, but says he sold his share to stay on only as a consultant.
U.S. officials accuse Budovsky of using Liberty Reserve as a kind of underworld bank which handled about $6 billion worth of illicit transactions. |
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Argentina asks top US Court to stop 'catastrophe'
Topics in Legal News |
2014/02/20 14:51
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Argentina filed a long-shot appeal to the U.S. Supreme Court on Tuesday asking the justices in Washington to avert an "economic catastrophe" by overturning lower court rulings that could force the South American government to default on billions of dollars in debts.
Making Argentina pay cash in full to investors who didn't accept bond swaps in exchange for defaulted debt could destabilize the global economy by making other voluntary debt restructurings "substantially more difficult, if not impossible," the petition said.
"Full payment of the holdouts would cut Argentina's reserves approximately in half, an unimaginable result for any nation," Argentina's lawyers argued. "Any sovereign would protest if a foreign court issued an extraterritorial order threatening its creditors and citizens and coercing it into turning over billions of dollars from its immune reserves."
By ignoring the federal sovereign immunity law that normally protects other countries' assets from seizure outside the United States, the lower court decisions also could make U.S. assets overseas vulnerable to similar seizures by other governments, the petition said. |
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