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Legal news from Thursday, December 21, 2006 |
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Former Tyco exec settles with SEC as two others charged
Caitlin Price on December 21, 2006 4:01 PM ET

[JURIST] Former Tyco [corporate website; JURIST news archive] executive Richard "Skip" Heger reached a $450,000 settlement on financial reporting and record-keeping charges, the US Securities and Exchange Commission announced [press release] Thursday. The charges are connected to a fraud case in which Tyco agreed to pay a $50 million civil penalty [JURIST report] and a $1 disgorgement fee for fraudulent accounting procedures used between 1996 through 2002. Heger, who at the time was in charge of the company's fire and security services division finances, was accused of approving financial results that he knew, or should have known, were inflated; he reached the settlement without entering a plea on the charges. Two other former executives, Richard Power and Edward Federman, were charged with fraud in overstating Tyco's operating income by hundreds of millions of dollars through the use of a sham transaction. Reuters has more.
The April settlement allowed Tyco to avoid admitting any of the allegations [SEC press release] in the SEC's complaint [PDF, text]. According to the SEC, Tyco executives inflated key figures - including its operating income by more than $567 million and its cash flow by $719 million - in official reports to the SEC. Former Tyco CEO Dennis Kozlowski and former CFO Mark Swartz were found guilty of looting the company and its shareholders out of more than $150 million in unauthorized personal compensation, and have been sentenced to prison [JURIST report] for 8 to 25 years. The company still faces a likely onslaught of shareholder litigation, which analysts predict could cost the company up to $4 billion.


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Marines platoon leader charged with murder in Haditha Iraqi civilian killings
Jeannie Shawl on December 21, 2006 3:23 PM ET

[JURIST] US Marines Staff Sgt. Frank D. Wuterich was charged Thursday with 13 counts of murder in connection with the deaths of 24 Iraqi civilians in Haditha [JURIST report] last November, according to Wuterich's lawyer. Officials at Marine Corps Base Camp Pendleton [official website] are expected to announce charges against several other military personnel later Thursday. Wuterich, commander of the platoon implicated in the Haditha incident [JURIST news archive] said earlier this year that his unit followed the rules of engagement [JURIST report] and did not purposefully attack civilians. In August, Wuterich filed a defamation and invasion of privacy lawsuit [complaint, PDF] against Rep. John Murtha (D-PA) [official website], alleging that Murtha falsely accused him of war crimes during press conferences where Murtha discussed [JURIST report] the Haditha killings. AP has more.
The 24 deaths prompted two separate military investigations: one conducted by the Naval Criminal Investigation Service (NCIS) [official website], aimed at determining whether to prosecute the soldiers involved, and an investigation into decisions made by Marine leadership led by US Army Major General Eldon Bargewell [Wikipedia profile]. An anonymous US official familiar with the NCIS investigation, speaking in May, suggested the Marines murdered in cold blood [JURIST report], and the probe concluded in August that evidence exists [JURIST report] to support murder allegations. Bargewell's report [JURIST report] has not yet been released, but officials briefed on the investigation said that there was evidence that soldiers concealed and destroyed evidence [JURIST report] relating to the incident and were reluctant to hand over evidence.
4:44 PM ET - Marine Corps officials have announced that eight Marines have been charged [list of charges and specifications] in connection with the Haditha killings: Based on the findings of the investigations, various charges have been preferred against four Marines relating to the deaths of the Iraqi civilians on 19 November 2005. Also, charges have been preferred against four Marines for failure to properly report and/or investigate the deaths of the Iraqi civilians. These charges include murder, dereliction of duty, false official statement and obstruction of justice. Read the full statement [text].


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FCC approves new rules to help companies enter cable TV market
Jaime Jansen on December 21, 2006 10:33 AM ET

[JURIST] The Federal Communications Commission (FCC) [official website] on Wednesday approved new rules [press release, PDF] to prevent local governments from blocking the entrance of companies in the cable television market, highlighting a sharp partisan divide in the five-person panel. The new rules will require local cable franchising authorities to make decisions on applications from new competitors within six months, and make decisions on applications from competitors with access to easements within 90 days. The rules also prevent localities from making the new companies build out their systems more quickly than existing carriers, and requires local governments to count some set up costs for new carriers as part of the five percent franchise fee imposed by the local governments. FCC Chairman Kevin Martin expressed hope that the new rules will help increase competition and ultimately lower prices for consumers [statement, PDF], reflecting on staggering increases in cable prices. The FCC released a report [press release, PDF] Wednesday on cable prices over the last decade, showing that prices increased by 93 percent between 1995 and 2005.
Democrats on the FCC panel, Jonathan Adelstein and Michael Copps [statements, PDF], criticized the new rules, arguing that the FCC presented questionable evidence of the existing barriers to entry for new competitors, and also questioned whether the FCC has authority to impose the new rules. US Rep. John Dingell (D-MI), the incoming chairman of the House Energy and Commerce Committee [official website], on Tuesday warned that the FCC may "exceed the agency's authority and usurp congressional prerogative" by implementing the new rules. Critics also argue that increasing local competition by allowing phone companies to enter the market more easily may not actually lower prices for consumers and may not offer their service in low-income areas. AP has more.


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Defense lawyer urges US to keep custody of Saddam to prevent torture
Jaime Jansen on December 21, 2006 10:00 AM ET

[JURIST] Former US Attorney General and Saddam Hussein [JURIST news archive] defense lawyer Ramsey Clark [JURIST news archive] on Wednesday urged President Bush to keep Hussein and his Dujail trial [BBC trial timeline] co-defendants in US custody, expressing concern that Iraqi officials will torture the convicted defendants. Hussein and two of his co-defendants, Awad Hamed al-Bandar and Barzan al-Tikriti, were all convicted and sentenced to death [judgment; JURIST report] last month for crimes against humanity [charging instrument, PDF] committed in the Iraqi town of Dujail [JURIST news archive] in 1982. The deadline to file appellate papers for the Dujail trial is on Saturday, and many expect the appellate court to make a decision on the appeal in a matter of days. If Hussein and his co-defendants lose the appeal, their execution will likely occur within 15 days, unless the US refuses to hand them over to Iraqi custody. Clark claims that the US has the "highest moral and legal obligation" to keep them in US custody, arguing that Iraqi officials will torture the co-defendants before their execution. Last week, an Iraqi official said that Hussein and his co-defendants will face a quick execution [JURIST report] and possibly a secret burial if the appellate court upholds their conviction.
Hussein is currently on trial on separate genocide charges [JURIST news archive; BBC trial timeline] for allegedly killing 100,000 Kurds during the so-called "Anfal" campaigns [HRW backgrounder] in the late 1980s. The Anfal trial could continue posthumously [JURIST report] should Hussein be executed before proceedings in the second trial conclude. CNS News has more.


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