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Legal news from Monday, October 11, 2004 |
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Corporations and securities brief ~ Defense in Enron barge trial begins
Amit Patel on October 11, 2004 5:59 PM ET

In Monday's corporations and securities law news, the defense has begun its case in the fraud and conspiracy trial of the former Enron and Merrill Lynch executives indicted in the Nigerian barge deal. Read the indictment here. The Houston Chronicle has continuing coverage of the Enron barge trial. AP has more.
In other news...
- SunTrust Banks, the US's seventh-largest bank, has announced it would restate earnings for the first half of 2004 because loan losses were calculated incorrectly. The bank also announced that two senior financial executives, Sandra Jansky, executive vice-president and chief credit officer, and Jorge Arrieta, senior vice-president and controller, have been placed on paid leave pending a review. Read the SunTrust press release here. The Financial Times has more.
- Gabelli Asset Management Inc. announced the SEC has issued it a subpoena related to the an investigation into improper fund-share trading. AP has more.
- The SEC has decided not to bring insider trading charges against former Lehman Brothers analyst Holly Becker or her husband Michael Zimmerman. The investigation centered on Zimmerman's use of unpublished reports at Lehman to gain profits in various stocks. CBS MarketWatch has more.
- As reported earlier on JURIST's Paper Chase, the US Senate has passed a $136 billion corporate tax reform bill which cuts taxes for certain businesses while also closing tax loopholes. The bill is HR 4520 or the American Jobs Creation Act of 2004. Bloomberg has more.
- Global Crossing Ltd. announced it will launch a restructuring at the company by cutting about 600 jobs and scale down operations in order to free enough cash to stay fiscally afloat. Read the Global Crossing press release relating to the planned restructuring here. AP has more.
- As previously reported on JURIST's Paper Chase, a Moscow court of arbitration order oil giant Yukos to pay fines of $1.4 billion which stems from a failure to pay its back taxes. The Russia Journal has continuing coverage of Yukos' court battles. BBC has more.
- Click for previous corporations and securities law news.


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US authorities shut down independent media websites
Amit Patel on October 11, 2004 4:31 PM ET

US authorities have shut down 20 independent media websites spanning 17 countries by seizing their British-based webservers. Rackspace [corporate website], an American-owned web hosting company in Uxbridge, Middlesex, was issued a court order Thursday under the Mutual Legal Assistance Treaty [text], which allows countries to assist each other in investigations relating to international terrorism, kidnapping, and money laundering. The FBI subpoenaed Rackspace to hand over two servers used by Indymedia [corporate website], an international media network which provides a "news wire" to which its users contribute; no specific reason was given, although FBI sources say the action was taken at the behest of French and Swiss authorities.
The general secretary of the International Federation of Journalists has condemned the seizure, calling it intrusive and intolerable [IFJ statement], noting that "the seizure follows visits by the FBI to Indymedia personnel in the US inquiring about the publication on the French site Indymedia Nantes of photographs of Swiss undercover police photographing protestors. The photographs remain available on other websites." Indymedia has more information on the server seizure here. Monday's Guardian has more.


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Slovak constitutional court to review anti-discrimination law
Russell Adkins on October 11, 2004 2:15 PM ET

The Constitutional Court of the Slovak Republic [official website] will review whether the country's new anti-discrimination statute, and specifically its policy on positive discrimination, is permissible under the Slovak Constitution. The law prohibits discrimination based on sexual orientation, sex, religion, nationality, race, and the state of a person's health.
Those opposed to the law, led by Justice Minister Daniel Lipsic, claim that it establishes quotas for people from protected groups in education and employment. CTK has the full story. The Slovak Spectator has more on the debate surrounding the law.


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International brief ~ N Korea threatens war if UN brings sanctions
D. Wes Rist on October 11, 2004 11:20 AM ET

North Korea Monday threatened war if UN sanctions are deployed to bring the recalcitrant country back to the negotiating table of the Six-Party Talks [opening remarks]. An official statement released by the Korean Central News Agency declared "sanctions mean a war and war does not know any mercy' and "if the US applies more sanctions to the DPRK (North Korea) by putting the UN in motion, the DPRK will promptly and resolutely react to it with self-defensive war deterrent force." The multiparty talks have been aimed at uncovering the extent of North Korea's nuclear testing and capability and ensuring that those test are abandoned. North Korea refused to attend the latest round of talks in September, citing the United States' 'hostile attitude', prompting some to speculate on the possibility of implementing UN sanctions against the country. South Korea's President Roh Koo-Hyun has cautioned against pushing his communist neighbor too hard over the nuclear issue. JURIST's Paper Chase has background on the nuclear talks in North Korea. The Khaleej Times has more.
In other international news...
- Trial began Monday in the corruption case against Shabir Shaik, the financial advisor to South African Deputy President Jacob Zuma [official profile]. Shaik is charged with accepting and passing along bribes to Zuma from a French arms company in exchange for protecting the company from investigations and probes by the South African government [official website]. The beginning of the trial, being conducted in the Durban High Court in Johannesburg, saw the charges against the French company being dropped. Justice Hillary Squires is also currently considering whether to allow live broadcast of the trial. If Shaik is convicted, prosecutors have stated their intent to file charges against Zuma. Zuma has been widely touted as the likely replacement to current South African President Thabo Mbeki [official profile]. IOL has background on the case. Africa's Mail and Guardian has more.
- The Filipino government [official website] announced Monday that charges have been brought against six individuals in response to the February 27 bombing of a ferry in Manila Bay that killed over 100 passengers and crew. Two of the individuals charged are already in custody, one of whom is also responsible for the beheading of American captive Guillermo Sobero. The police announced that the two, members of the kidnap-for-ransom group Abu Sayyaf [military.com backgrounder], were captured along with a significant stash of explosives. Balita.org has more.
- The Cambodian Senate [official website] approved a draft law Monday that will settle the current monarchy crisis following King Sihanouk's announcement of abdication. The draft law calls for the Royal Throne Council to select a new monarch within seven days of the incumbent's death, retirement, or abdication. The law would require a new monarch by October 14th. The current Cambodian constitution makes no provision for the retirment or abdication of the monarch, which threw the government [official website] into a frenzy of activity in trying to ensure the succession process flowed smoothly. Prince Norodom Sihamoni, who spent the weekend trying to convince his father to remain king, has been endorsed by both Sihanouk and Prime Minister Hun Sen. JURIST's Paper Chase has background on the succession issue. BBC News has more.


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Legal agenda and live webcasts ~ Monday, October 11
Jeannie Shawl on October 11, 2004 7:50 AM ET

Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Monday, October 11.
Today is Columbus Day in the United States, a federal holiday. Federal and state courts are closed in observance.
The US Senate will convene at 10 AM ET and will resume consideration of the conference report to the JOBS bill (HR 4520) [text]. Following its Saturday session, the US House stands adjourned until after the November election.
Ohio State University's Moritz College of Law will host a lecture on False Campaign Ads: Pros and Cons of Regulation, featuring UNC Kenan Professor of Law William Marshall. Moritz professors Edward Foley and David Goldberger will also speak. Watch a live webcast.
At the United Nations, the UN General Assembly will meet at 10 AM ET and will hear the annual report of the Security Council, which will address the question of equitable representation on and possible increase in the membership of the Council. The report will continue into the Assembly's 3 PM ET session. Watch a live webcast of both sessions.... The Security Council will hold 11 AM ET closed consultations on Cyprus and a letter from the Permanent Mission of Papua New Guinea to the UN.
In Denmark, the trial of former Defense Intelligence Service officer Frank Grevil begins. Grevil is charged with breaching Denmark's official information act by leaking classified reports about Iraq to a Danish daily. BBC News has background.


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BREAKING NEWS ~ Hamdi arrives in Saudi Arabia
Bernard Hibbitts on October 11, 2004 7:21 AM ET

AP is reporting that according to his lawyer, the plane carrying Yaser Esam Hamdi has arrived in Saudi Arabia. A US citizen captured by American forces in Afghanistan, designated an "enemy combatant", held without charge by the Defense Department for over two years, and finally the subject of a lawsuit that went all the way to the US Supreme Court, Hamdi was freed to go to Saudi Arabia under a deal reached last month [settlement agreement]. Hamdi also holds Saudi citizenship, but his transit there was delayed while US and Saudi officials negotiated over how US conditions on his mobility would be enforced.
UPDATE: An AP story on Hamdi's release and deportation is now available here. A timeline of the litigation in his case is available here from the US District Court for the Eastern District of Virginia, which notes that "litigation involving Yaser Hamdi has included three separate cases, five decisions by the US. Court of Appeals for the Fourth Circuit, and a ruling by the US Supreme Court." Previous reports on Hamdi in JURIST's Paper Chase are available here.
UPDATE-2: A US Statement Department press statement on Hamdi's release is online here.


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