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Legal news from Thursday, February 17, 2005 |
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Corporations and securities brief ~ Bear Stearns faces SEC action over illegal fund trading
Amit Patel on February 17, 2005 3:10 PM ET

[JURIST] Leading Thursday's corporations and securities law news, the SEC [official website] has concluded Bear Stearns Cos. [corporate website], the sixth-largest US securities firm, violated federal laws which protect investors when it aided brokers in making illegal after-hours mutual-fund trades. The SEC may announce today that it has reached a settlement with Brean Murray & Co. [corporate website], a New York brokerage. Under the terms of the settlement Brean Murray will pay $150,000 to settle allegations it aided violations made by an unnamed clearing firm that processed trades. The clearing firm is Bear Stearns. Bloomberg has more.
In other news... - The Justice Department's antitrust division [official website] has started an investigation into railroad coal pricing practices at Union Pacific Corp. [corporate website] and BNSF Railway Co. [corporate website]. Coal-industry trade publications are reporting BNSF and rival Union Pacific are trying to raise rates as they come into public pricing. Both companies indicate they will cooperate with the probe. AP has more.
- The SEC has started into Bancinsurance Corp. [corporate website] over its accounting practices. The practices gained scrutiny after the company's independent auditor, Ernst & Young [corporate website], withdrew its approval for financial reports for 2001 to 2003. Columbus Business First has more.
- Yukos [corporate website; JURIST Hot Topic archive] CEO Steve Theede is hopeful of making a deal with the Russian government over the multi-billion dollar back taxes owed before the auction of Yukos' key production unit. Yukos is currently fighting to gain jurisdiction in a US bankruptcy court to avoid having to conduct litigation in unfriendly Russian courts. Yukos is attempting gain bankruptcy protection in the US despite its lack of assets beyond two bank accounts of borrowed funds. AP has more.
- A Ukranian court has found the sell-off of a Ukrainian steel mill, Krivorizhstal, to be illegal. Krivorizhstal had been sold cheaply to friends of the previous Ukranian administration. New President Viktor Yushchenko [official website; English version] indicates the new administration will revisit many of the recent privatizations. BBC News has more.
- The injunction and asset freeze against Mutual Benefits Corp., one of the nation's largest death benefit companies, has been extended. The SEC accused the company of defrauding up to 30,000 investors out of more than $1 billion in securities sold since 1994. Read more about the fraud at Mutual Benefits Corp. AP has more.
Click for previous corporations and securities law news


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International brief ~ UN rights chief Arbour says ICC only credible venue for Sudan trials
Bernard Hibbitts on February 17, 2005 10:54 AM ET

[JURIST] In Thursday's international law brief, UN High Commissioner for Human Rights Louise Arbour [official profile] presented the findings of the International Commission of Inquiry on the Conflict in Darfur [PDF report] to the UN Security Council on Wednesday, stating that the only 'credible way' to address the atrocities was to try those accused of serious human rights abuses before the International Criminal Court [official website]. Both Sudan and the US oppose the use of the ICC. Arbour's report found that the Khartoum government had been seriously complicit in the hiring of Janjaweed militias that were responsible for numerous atrocities in Darfur, but that the Commission could not hold that genocide had occurred because of a lack of evidence of specific intent. UN News Centre has more.
In a related development, Sudanese officials met with Darfur rebel leaders Thursday in Chad to attempt to bring an end to the Darfur conflict, which UN Secretary-General Kofi Annan referred to Wednesday as "hell on earth". The talks were organized by international mediators and the African Union, and were held in the capital N'Djamena. Sudan [government website] has come under increasing international pressure to resolve the Darfur situation, especially in light of the successful negotiations with the newly autonomous South Sudan [official website]. The goal of the talks was stated as reinforcing the oft-violated cease-fire between the two sides, opening up full political negotiations on a permanent truce, and developing means to create an effective check on whether both sides are upholding their end of the deal. Both of the main rebel groups in Darfur, the Sudan Liberation Movement and the Justice and Equality Movement [faction website], attended the negotiations, the first time that both major rebel groups and the central government have met together. JURIST's Paper Chase has continuing coverage [JURIST Countries archive] of the Sudan crisis. The Sudan Tribune has local coverage.
In other international legal news ... - Togo President Faure Gnassingbe [BBC profile] flew to Nigeria Thurday to meet with Nigerian President and current African Union Chairman Olusegun Obasanjo. The meeting is likely to address the practical considerations of how quickly Togo [government website in French] can hold presidential elections and see a new president in office. Togolese officials caved in to immense international pressure [JURIST report] Wednesday, and agreed to hold new elections and restore the country's constitution to its orginal form. Faure was expected to announce the new elections late Wednsday night on national television, but no government announcement of the proposed election has been made. Togolese officials announced that a statement would be released following the conclusion of the closed-door meeting. JURIST's Paper Chase has continuing coverage [JURIST Countries archive] of Togo. Republique Togolaise, the official government news website, has local coverage.
- The Organization of American States [official website] opened the Fifth Annual Session [official website] of the Inter-American Committee against Terrorism [official website] in Trinidad and Tobago on Wednesday. Acting OAS Secretary-General Luigi R. Einaudi [official profile] called for the body to fulfill its work schedule, which called for recommendations on areas such as border control, money laundering, and cybersecurity. Read the Draft Agenda [DOC]. Read the OAS official press release.


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Legal agenda and live webcasts ~ Thursday, Feb. 17
Chris Buell on February 17, 2005 12:01 AM ET

[JURIST] Here's a run-down of law-related events, expected developments and live webcasts on JURIST's docket for Thursday, Feb. 17.
On Capitol Hill, the US Senate [official website] meets at 10 AM ET today, when it will consider S. 5 [bill summary], the Genetic Information Nondiscrimination Act of 2005. Watch a live webcast of the session. The Senate Judiciary Committee [official website] will hold a business meeting at 9:30 AM ET to consider amendments in S. 256, which would alter Title 11 [text] of the US Code. The Senate Energy and Natural Resources Committee [official website] National Parks Subcommittee is holding a 2:30 PM ET hearing on the implementation of the Federal Lands Recreation Enhancement Act [text, PDF]. Watch a live webcast of the hearing.
The US House [official website] convenes at 10 AM ET, and it will consider S. 5 [text, PDF], the Class Action Fairness Act of 2005. Watch a live webcast of proceedings. The House Judiciary Committee [official website] Courts and Intellectual Property Subcommittee is holding a hearing at 9:30 AT ET, at which it will consider H.R. 683 [bill summary], the Trademark Dilution Revision Act of 2005. View the hearing agenda [text]. The House Small Business Committee [official website] is holding a hearing at 10 AM ET, when it will consider H.R. 534 [bill summary], the Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2005. Watch a live webcast of the hearing.
The Federal Communications Commission [official website] is holding a telecommunications services priority summit today from 9:30 AM to 12 Noon ET. Read the meeting notice [text, PDF], and watch a live webcast of the hearing.
The Heritage Foundation is holding a lecture [event details] titled "Judicial Usurpation and the Constitution: Historical and Contemporary Issues," at 12 Noon ET. Watch a live webcast of the lecture.
The Independent Electoral Commission of Iraq [official website] is expected to certify election results [VOA News report] today, with a possible deal reached between political parties on the formation of a new government.
At the International Criminal Tribunal for the Former Yugoslavia, a hearing will be held in the case of Rahim Ademi and Mirko Norac [ICTY case backgrounder] beginning at 9:15 AM local time [3:15 AM ET], with an afternoon session scheduled for 3 PM local time [9 AM ET]. Watch a live webcast of proceedings.


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