[JURIST] Leading Thursday's corporations and securities law brief, former HVB Group [corporate website] executive Domenick DeGiorgio has pleaded guilty to fraud and tax evasion for his role in creating and selling illegal tax shelters for HVB and its customers. Though auditing firm KPMG [corporate website] was not named in the trial, the firm is under criminal investigation for the tax shelters [JURIST report] DeGiorgio sold. DeGiorgio's case involves the first criminal charges brought in connection with the KPMG tax shelters. DeGiorgio could face up to 50 years in prison but is expected to receive a shorter sentence in exchange for his plea and cooperation with authorities in future trials. The plea comes as rumors of a KPMG settlement to avoid indictment [New York Times report] have surfaced. AP has more.

In other corporations and securities law news...

• The Wall Street Journal is reporting that the SEC is making contingency plans for the possible indictment and collapse of one of the surviving Big Four accounting firms. Arthur Andersen's implosion [JURIST news archive] following the Enron scandal left only four major auditing firms in the US and those now handle 78% of all US publicly traded companies. CNN has more.
  
  
• Labor tensions at London's Heathrow airport lead to British Airways [corporate website] canceling all flights at the airport. A number of wildcat strikes, unorganized strikes without official union leadership or approval, at the airport left roughly 20,000 passengers stranded. Workers said the strikes were a show of solidarity for airline caterers who have been in conflict with the airport's management. In a press release, British Airways said they have cancelled all flights until at least 6 pm London time Friday. Reuters has more.
  
  
• 7-Eleven [corporate website] reached a settlement Thursday with 40 states and the District of Columbia promising to make it harder for children to buy tobacco in the company's convenience stores. 7-Eleven, the US' largest tobacco seller, had been criticized and threatened with litigation by state governments for what were perceived as lax practices for checking ID and placing cigarettes and tobacco advertising near products marketed towards children. A press release from the Attorney General of Connecticut said that the agreement was the seventh of its kind between groups of states and large retailers. AP has more.
  
  
• As reported earlier today on JURIST's Paper Chase, the accountant who masterminded the WorldCom accounting fraud [JURIST news archive] was sentenced to five years in prison. Former WorldCom CFO Scott Sullivan faced over 100 years in prison, but his cooperation with authorities earned him the lighter sentence. Sullivan explained the complex scheme to investigators and was a crucial witness in the trial against former WorldCom CEO Bernard Ebbers, who was sentenced to twenty-five years in prison last month [JURIST coverage]. Bloomberg has prepared a timeline of the WorldCom saga. MarketWatch has more.

[JURIST] Lobbyist Jack Abramoff [Wikipedia profile], once a close friend of US House Majority Leader Tom DeLay [official website], was indicted Thursday by a federal grand jury on bank fraud charges. The charges are related to a 2000 purchase by Abramoff and his partners of SunCruz Casinos [corporate website] and an alleged phony wire transfer that defrauded two lenders financing the acquisition of $60 million. Read the US DOJ press release on the indictment. DeLay, who was not mentioned in any lawsuits involving the SunCruz deal, has asked the House Ethics Committee [official website] to examine separate allegations that Abramoff or his associates covered the costs of DeLay's foreign trips, contrary to House rules. DeLay has denied knowing that the expenses were paid by Abramoff. The Republican congressman from Texas also made headlines Thursday when a Federal Election Commission audit of a fundraising committee he founded [PDF] showed that the committee failed to report more than $300,000 in debts [AP report] and improperly financed its activities with funds from another group tied to Delay. AP has more.

[JURIST] Leading Thursday's states brief, the Oregon Supreme Court has denied a timber company state compensation after the company was barred from logging trees around a bald eagle's nest by ruling [PDF text] today that state wildlife regulation of private property in the form of barring logging does not amount to a taking. Furthermore, the court found that the state constitution clause guaranteeing compensation when private property is taken for public use applies only when full economic use of the property is denied. In 1998, the Oregon Department of Forestry [official website] barred the company from logging 9-acres of a 40-acre parcel after the discovery of a bald eagle's nest. The ruling reversed a Court of Appeals decision [text]. AP has more.

In other state legal news ...

• In an opinion released Thursday, a Louisiana District Court [official website] has declared a state law that allows juries to determine whether a defendant is mentally retarded unconstitutional because it creates an "intolerable risk that mentally retarded defendants will be executed." State District Judge Stephen Beasley said the law violates the 2002 US Supreme Court ruling in Atkins v. Virginia [PDF text] by allowing juries and not judges to determine whether a defendant is mentally retarded. The state Supreme Court has already issued rulings saying judges should make the determination. AP has more.
  
  
• The Arizona Supreme Court has struck down [PDF text] a state law that allows workers' compensation coverage to be denied to workers who were injured on the job, but also tested positive for drugs or alcohol because the law conflicts with the state constitution's [text] mandate for a workers' compensation system requiring payments of benefits for work-related injuries without consideration of the employee's fault. While the court did recognize that "compelling policy reasons support banning drug and alcohol use in the workplace," Justice Michael D. Ryan wrote that the law [text] could not be upheld "unless and until the constitution is changed." The National Federation of Independent Businesses [association website] said a possible impact of the ruling may be the end of discounts employers get on workers' compensation insurance programs if they have substance-abuse policies. AP has more.
  
  
• The Ohio Supreme Court has ruled [PDF text] that photographs of police officers may be shielded under the state public records law as the photographs fall within an exception in the law that shields any records identifying a person's occupation as a law enforcement officer. The Cleveland Plain Dealer and Youngstown Vindicator, which were seeking photos of police officers, argued that the law [text] is so broadly worded, it could prevent anyone from ever identifying a police officer. Tom Kraiser, chief trial counsel for the Cleveland Law Department [website], said the ruling simply protects the safety of officers who might go undercover. AP has more.

[JURIST] The Environmental Protection Agency [official website] will soon release federal standards regulating how data from toxic pesticide studies on humans can be used, but politicians and some medical experts are claiming that children and pregnant women involved in the studies may be at risk. Public Employees for Environmental Responsibility [advocacy website; press release], who received an early copy of the standards, said the regulations would limit pesticide manufacturers' toxic chemical testing on children and pregnant women, and would create an independent board to determine if established ethical standards are being met. The new rules, however, do not apply to studies undertaken before the guidelines become law. Though an EPA spokeswoman called the new regulations "very rigorous protections," Senator Barbara Boxer [official website; press release] (D-CA), a leading opponent of pesticide testing on humans, said in a letter to the EPA that the proposal does not do enough to protect the vulnerable from "tests in which human subjects swallow, inhale, are sprayed with, or are otherwise exposed to toxic pesticides." In April, under political pressure, the EPA cancelled CHEERS [JURIST report; EPA notice], its own Children's Environmental Exposure Research Study on the effects of pesticides on children. Thursday's Washington Post has more.

[JURIST] A court in Switzerland ruled Thursday that the arrest [JURIST report] of former Russian Energy Minister Yevgeny Adamov [Wikipedia profile] complied with the law. A source at the Russian embassy in Bern said both the US and Russian requests for Adamov's extradition were also found to be legal. Adamov, formerly in charge of the Russian Federal Atomic Energy Agency (FAAE) [NTI backgrounder], was arrested in May 2005 in Bern, Switzerland under a US warrant on charges of fraud and money laundering. He has been accused of diverting $9 million dollars in funds provided by the US Energy Department [official website] for improving Russian's nuclear security to various investment projects and US firms he controls. The Swiss Federal Justice Directorate will decide in the coming months whether to deport Adamov to Russia or the US. MosNews has more.

[JURIST] Haitian Justice Minister Henri Dorlean on Wednesday pressed for the release or expedited trial of hundreds of prisoners being detained without charge. Dorlean said it was a violation of human rights for judges and prosecutors to use their positions to hold individuals in jail in violation of the law and he also called on authorities to only pursue and punish actual criminals. Human rights groups have denounced Haiti's interim government [Amnesty International report], installed with US support after the ouster of President Jean-Bertrand Aristide [BBC profile] in February 2004, for jailing members of Aristide's political party, including ex-Prime Minister Yvon Neptune [JURIST report] in violation of Haitian law. Dorlean, who claims 95 percent of the 1,300 prisoners at the national jail had been held for months without being charged or tried, said he had requested that Neptune be released or charged. Reuters has more.

[JURIST] UN Secretary-General Kofi Annan [official website] said Wednesday that the United Nations would be increasing surveillance of its procurement department after recent accusations that a senior official accepted close to $1 million in bribes from contractors. An internal investigative team at the UN on Monday arrested purchasing official Alexander Yakovlev [JURIST report] for pocketing about $1 million from the winners of $80 million in UN contracts. Benon Sevan, the head of the oil-for-food program [official website; JURIST news archive] from 1997 to 2003, was also accused of receiving $150,000 in kickbacks [JURIST report] from a Swiss-based trading firm. Sevan has adamantly denied taking bribes and nonetheless may not be able to be extradited from his native Cyprus [JURIST report]. Annan said he would meet with his new undersecretary-general for management, Christopher Burnham, later this week to discuss ways to ensure the integrity of procurement. US Ambassador to the UN John Bolton [official profile], commenting on the ways to reform the UN, said the lessons learned from the current scandals must be used to take "UN governance and management into the future." Reuters has more. Read a full transcript of Bolton's remarks.

[JURIST] In a backlash against recent proposals for sweeping changes to Britain's terror laws [JURIST report], senior judges in the UK have warned lawmakers that they will stand against any move to undermine their independence in an effort to ensure a democratic society. Their uncompromising stance comes after a series of clashes stemming from accusations made by British politicians. Tory leader Michael Howard [official website] Wednesday accused judges of aggressive judicial activism and urged courts not to interfere with terror laws [JURIST report]. Tony Blair had earlier warned that he would renounce part of the European Convention on Human Rights [JURIST report] and fight against courts that might attempt to block the deportation of Islamic extremists. Lord Carlile of Berriew, a deputy High Court judge, warned that it would be "foolish" to meddle with judicial authority, saying judges could strike back if their historic independence is threatened. The Independent has more.

[JURIST] AP is reporting that President Bush has said that new Iranian President Mahmoud Ahmadinejad [BBC profile; official website, in Farsi] will be given a US visa so that he can attend UN meetings in New York. Earlier this week, the State Department had indicated it was considering denying Ahmadinejad's visa application [JURIST report] due to allegations that Ahmadinejad was involved in the 1979 hostage crisis.

[JURIST] The US military is scheduled to complete ongoing renovations to some areas of Guantanamo Bay [JURIST news archive] by Monday, creating improved facilities for detainees who are deemed no longer a threat to the United States, Brig. General Jay Hood revealed in an affidavit filed in federal court earlier this week. The military plans to house the nonthreatening prisoners in a renovated section with home electronics, including televisions, and a view of the ocean. The military has spent weeks renovating Camp Iguana [Wikipedia backgrounder] to provide an environment of communal housing that is air conditioned and allows flexible eating and bathing schedules. Hood's affidavit was filed by the government in the case of two Chinese Uighurs who the US says were captured in Pakistan in 2001 as they fled a Taliban training facility. Rights groups have called for their release [JURIST report] after they were found not to be enemy combatants. Some detainees who have been determined to be "No Longer Enemy Combatants," or NLECs, will be eligible to live in the renovated housing. AP has more.

[JURIST] Two political parties went to court in Kenya on Thursday to try and block a vote on a draft constitution, claiming that President Mwai Kibaki [official profile] manipulated the text to increase his powers. Both the opposition Kenya African National Union [Wikipedia backgrounder] and the Liberal Democratic Party [Wikipedia backgrounder], part of the ruling coalition, joined to ask the High Court to prevent the referendum from going forward [Xinhua report]. The constitution as written has drawn protests from citizens [JURIST report] despite official bans and attempts by Kibaki to drum up support. Reuters has more.

[JURIST] After last week's initial meeting [JURIST report], the Indonesia-East Timor truth commission officially opened Thursday in Bali. The commission to investigate the 1999 violence in East Timor [Wikipedia backgrounder] is aimed at reconciliation and continued improving relations between the two countries [Jakarta Post report], but, to the dismay of the UN, will not bring prosecutions. Despite a recommendation [PDF report] by the UN's independent Commission of Experts, Indonesia opposes a UN-led tribunal [JURIST report], calling it "unnecessary." Australia's ABC News has more.

[JURIST] Proponents of a ballot initiative backed by Governor Arnold Schwarzenegger [official website] that would change the way political districts are drawn in California have lodged an appeal with the state Supreme Court asking that the issue be reinstated for the upcoming vote. Proposition 77 [PDF text, advocacy website], if approved by voters, would give a panel of retired judges the power to draw districts. Currently, the state legislature does so. On Tuesday, a lower court ruled that the measure could not be part of the November election [JURIST report] because petitions circulated to collect the necessary signatures for the initiative to appear on the ballot did not contain the same wording. Thursday's San Francisco Chronicle has more.

[JURIST] AP is reporting that former WorldCom CFO Scott Sullivan has been sentenced to five years in prison for his role in the company's $11 billion accounting fraud, the largest in US history. Sullivan is the fifth former executive from WorldCom to receive a prison sentence. In July, former WorldCom CEO Bernard Ebbers [JURIST news archive] received a 25-year prison sentence [JURIST report] after being convicted of fraud, conspiracy and filing false documents with regulators. Also in July, Sullivan and two others entered into civil settlements [JURIST report] with investors over their roles in the WorldCom accounting fraud [JURIST news archive].

[JURIST] Taysir Hayb, a former Israeli soldier, was sentenced Thursday to 8 years in prison following his manslaughter conviction by a military tribunal [JURIST report] for the shooting of Tom Hurndall [JURIST report], a British peace activist [Guardian obituary]. The case is the first time an Israeli soldier was found guilty of killing a foreign citizen. Hurndall was killed [Wikipedia backgrounder] while trying to move Palestinian children out of danger. Hayb faced as many as 20 years in prison for manslaughter and three for obstruction of justice after his conviction on both charges, but the court granted a lighter sentence upon consideration of the combat situation surrounding the death and Hayb's poor educational background. The Jerusalem Post has local coverage.

[JURIST] Under new antiterrorism measures [JURIST report] announced last week by British Prime Minister Tony Blair, UK police Thursday detained 10 foreigners, from countries including Jordan, Lebanon, and Algeria, who have been deemed to pose a security threat and scheduled them for deportation. The controversial policy of deporting those preaching violence or hatred or posing a threat to national security has drawn criticism from lawmakers [JURIST report], and the UN says such deportations might be a violation of international law [JURIST report]. British law forbids deportation to countries that practice torture, but Blair said he has agreements with some nations not to torture deportees and is trying to reach similar agreements with other nations as well. Most recently, the British Foreign and Commonwealth Office said Wednesday that it had entered into agreement with Jordan [Xinhua report] that any Jordanians deported would not be tortured or otherwise mistreated and would not face the death penalty. The Independent has local coverage; AP has more.

[JURIST] Iraqi leaders continued to work on hammering out the final details of their new Constitution Thursday, with a Monday deadline looming over the talks. Debates over federalism and the role of a centralized government [JURIST report] are still a key stumbling block, although it's unclear if this clash will result in a delay in the process. Some Shiite leaders are demanding the same sort of autonomy now given to the Kurds; opponents say such decentralization will lead to a harmful divide across the country. Despite the ongoing disputes, a US State Department spokesman said the recent discussions are "moving forward" and "the political process in Iraq is on track" [press briefing transcript; AFP report]. The State Department also said that other key issues still being resolved include rights issues and issues of resource sharing. If the constitution meets the August 15 deadline for completion, a national referendum to approve the constitution will be held October 15 with general government elections later in December. Reuters has more.

[JURIST] Diplomats at an emergency meeting of the International Atomic Energy Agency [official website] are working Thursday on a resolution that expresses "serious concern" over the restart of Iran's nuclear program [JURIST report], but stops short of asking the UN Security Council to impose sanctions. Instead, the IAEA draft states a desire to resolve the matter through negotiation. Iran's representative in Vienna, Mehdi Akhoundzadeh, rejected the resolution saying that under the Nuclear Non-Proliferation Treaty [PDF text; Wikipedia backgrounder], Iran's uranium conversion activities are not illegal [International Herald Tribune report]. Akhoundzadeh also said Thursday that the draft resolution being considered by the IAEA is seen by Iran as unnecessary pressure exerted by Europe and that the resolution will not improve the atmosphere of negotiations [IRNA report]. AP has more.

11:09 AM ET - Reuters is reporting that the IAEA has unanimously adopted the resolution expressing "serious concern" over Iran's resumption of uranium conversion and has demanded that Iran suspend all nuclear activities. Diplomats from the European Union have said that if Iran does not comply they will refer the matter to the Security Council.

11:56 AM ET - Under the resolution, the IAEA Board of Governors:

1. Expresses serious concern at the 1 August 2005 notification to the IAEA that Iran had decided to resume the uranium conversion activities at the Uranium Conversion Facility in Esfahan, at the Director General's report that on 8 August Iran started to feed uranium ore concentrate into the first part of the process line at this facility and at the Director General's report that on 10 August Iran removed the seals on the process lines and the UF4 at this facility; ...

3. Urges Iran to re-establish full suspension of all enrichment related activities including the production of feed material, including through tests or production at the Uranium Conversion Facility, on the same voluntary, non-legally binding basis as requested in previous Board resolutions, and to permit the Director General to re-instate the seals that have been removed at that facility;

[JURIST] The Republican National Committee has spent over $722,000 on lawyers from the highly-regarded Washington firm Williams & Connolly [firm website] to defend James Tobin on vote tampering charges, an RNC spokesperson confirmed Wednesday. Tobin, President Bush's 2004 campaign chairman for New England, faces four felony charges that he conspired [JURIST report] to jam phone lines and block Democratic voting drives during the 2002 Senate election in New Hampshire, which Republican John Sununu won in a tight race. Earlier this week RNC Chairman Ken Mehlman reaffirmed the party's commitment to a zero tolerance policy on voter interference but the RNC is footing Tobin's legal bills because they say they believe Tobin's assurances that he committed no crime. AP has more.

[JURIST] New documents on the legal career of US Supreme Court nominee John Roberts [JURIST news archive] are expected to be released Thursday by the National Archives and the Ronald Reagan presidential library, but Senate Democrats are continuing calls [JURIST report] for even more material to be made available for scrutiny in advance of Roberts' confirmation hearing next month. At issue are documents relating to Roberts' work in the Solicitor General's office [JURIST report] during George H.W. Bush's presidency. Last week, the Department of Justice denied a request [JURIST report] to turn over such information, citing privilege. US Attorney General Alberto Gonzales said [JURIST report] releasing such information would be "detrimental to the operation of the office." Reuters has more.

Meanwhile, an advertisement from a pro-choice group opposing Roberts has drawn criticism from a non-partisan media watchdog and even from some other pro-choice groups. The advertisement [recorded video, NARAL press release], sponsored by NARAL Pro-Choice America [advocacy website], discusses Roberts' work advocating the government's position that a law designed to protect freed slaves from the Ku Klux Klan did not apply to abortion clinic protests. Factcheck.org has declared the ad to be "false" [Factcheck.org analysis], using "especially misleading" images. Other pro-choice groups expressed concern about the ad, including one group leader that says the ad "goes over the line" and urged NARAL to pull it. Progress for America [advocacy website], a conservative group is preparing rebuttal ads [recorded video]. Thursday's New York Times has more.

[JURIST] Omar Bakri Mohammed, the British cleric who fled to Lebanon [JURIST report] after being named in an investigation into possible treason charges [JURIST report] for allegedly praising the London bombings, was detained by Lebanese police Thursday. Bakri, who has dual Lebanese-Syrian citizenship, arrived in the country on Saturday, shortly after the British government announced plans to deport and exclude from the UK those who advocate violence. Bakri is alleged to have praised the bombers and promised not to tell authorities if he learned about plans for future terrorist attacks. He denies talking about the bombings [AFP report] and says he plans to return to London. Lebanese police cited no reasons for his detention. CNN has more.