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Legal news from Tuesday, July 10, 2007 |
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Conrad Black trial jury ordered to resume deliberations after deadlock
Melissa Bancroft on July 10, 2007 7:24 PM ET

[JURIST] The Chicago jury in the federal fraud trial of Canadian-born financier and former media mogul Conrad Black [JURIST news archive] reported Tuesday that it was unable to render a unanimous decision on all counts against Black. The jurors sent a note to Judge Amy St. Eve [official profile] of the US District Court for the Northern District of Illinois [official website], explaining: We have discussed and deliberated on all the evidence and are still unable to reach a unanimous verdict on one or more counts. Please advise. After reviewing the note and consulting with the defense and prosecution, St. Eve repeated instructions to the jury on how to solve a deadlock and then ordered jurors to resume deliberations.
Black, former chairman of Hollinger International [corporate website], faces 17 counts of fraud, obstruction of justice, racketeering and tax evasion related to the $2.1 billion sale of several hundred Canadian newspapers. Along with other former Hollinger executives, he is accused [indictment, PDF] by the US government of diverting more than $80 million from the company and its shareholders [JURIST report] during Hollinger's $2.1 billion sale of several hundred Canadian newspapers. Black also faces charges of misusing Hollinger funds for actions such as throwing a $40,000 birthday party for his wife with company money. Canadian Business has more.


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Belgium court orders ISP to prevent illegal music downloading or face fines
Michael Sung on July 10, 2007 2:13 PM ET

[JURIST] The Brussels Court of First Instance has ruled that a Belgian internet service provider (ISP) must filter or block illegal peer-to-peer music downloading [JURIST news archive], giving Scarlet Extended Ltd [corporate website] six months to comply with its order or face 2,500 (US$3,425) in fines for every day of noncompliance. The ruling, made June 29 and originating from a suit brought on by Belgian Society of Authors, Composers, and Publishers (SABAM) [organization website], relies on the European Union's Information Society Directive [Directive 2001/29/EC text] and may set an advisory precedent for other courts in member states. International Federation of the Phonographic Industry (IFPI) [official website] chairman John Kennedy welcomed the ruling [press release], saying that "the court has confirmed that the ISPs have both a legal responsibility and the technical means to tackle piracy."
The music industry's efforts to hold ISPs liable for illegal peer-to-peer file sharing have been largely unsuccessful in North America. In 2004, the Supreme Court of Canada rebuffed efforts by the music industry [JURIST report] to force ISPs to pay royalties for music downloaded illegally by users, ruling that the ISPs were only "intermediaries" and not bound by Canada's Copyright Act [text]. The EUobserver has more. International Data Group News Service has additional coverage.


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Gonzales aware of FBI privacy violations before Patriot Act testimony: WP report
Michael Sung on July 10, 2007 11:31 AM ET

[JURIST] US Attorney General Alberto Gonzales [official profile; JURIST news archive] received reports that the FBI had improperly used national security letters (NSL) [CRS backgrounder, PDF; FBI backgrounder] prior to testifying before Congress in 2005 that "there has not been one verified case of civil liberties abuse," the Washington Post reported Tuesday. According to documents [press release and list] made available by the Electronic Frontier Foundation, Gonzales received at least six internal FBI reports detailing legal or procedural violations before his April 27, 2005 testimony during a Senate Select Committee on Intelligence hearing [committee materials; transcript], which occurred as Congress was debating whether to renew the USA Patriot Act [JURIST news archive]. Department of Justice spokesperson Brian Roehrkasse defended Gonzales' testimony, telling the Post that the statements referred only to the lack of verified cases by the DOJ Office of Inspector General (OIG) [official website] and did not include other documents.
In March, the OIG released a report [PDF text] finding privacy violations at the FBI [JURIST report]. The review, which was conducted under the terms of the 2005 Patriot Act renewal legislation, found that the "FBI used NSLs in violation of applicable NSL standards, Attorney General Guidelines, and internal FBI policies." In June, a federal district court ordered [PDF text; JURIST report] ordered the FBI to release approximately 100,000 pages of documents detailing the FBI's use of NSLs pursuant to a Freedom of Information Act [DOJ backgrounder] request by the Electronic Frontier Foundation [advocacy website]. Reuters has more.


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Former Milberg Weiss partner pleads guilty to conspiracy
Michael Sung on July 10, 2007 10:56 AM ET

[JURIST] David J. Bershad [corporate profile], former name partner at leading class action law firm Milberg Weiss [corporate website], pleaded guilty [press release] Monday to conspiracy to obstruct justice in a plot in which Milberg Weiss allegedly paid up to $11.3 million in illegal kickbacks since 1984 to individuals to serve as lead plaintiffs in class action and shareholder derivative lawsuits. Also Monday, Milberg Weiss terminated its relationship [press release] with Bershad, who agreed to cooperate with federal prosecutors, give back $7.75 million in profits, and pay a $250,000 fine. Bershad's first sentencing hearing is slated for June 23, 2008, and he could face a maximum sentence of five years in prison.
Three individuals have already pleaded guilty in the case [JURIST report]. Milberg Weiss, which has pleaded not guilty [JURIST report] to fraud and conspiracy charges, is the largest US law firm ever indicted [JURIST report]. The firm allegedly collected fees of $216.1 million in cases where the firm is accused of illegal payments. The New York Times has more.


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US Marines court-martial begins in Hamdania Iraqi civilian murder case
Michael Sung on July 10, 2007 10:15 AM ET

[JURIST] The court-martial of US Marine Corps Cpl. Trent D. Thomas [advocacy website] for his alleged role in the 2006 kidnapping and murder of an Iraqi civilian in Hamdania [USMC timeline; JURIST news archive] began Monday, with the prosecutor asking jurors to convict Thomas on charges [JURIST report] of premeditated murder and kidnapping. Defense lawyers, who asserted that "Marines in combat don't challenge orders," argued that Thomas followed the orders of his superior, Sgt. Lawrence G. Hutchins III, who is also facing several charges [JURIST report] including murder. If convicted, Thomas, who previously pleaded guilty [JURIST report] to unpremeditated murder but subsequently withdrew his guilty plea [JURIST report], could face the death penalty.
Five defendants have pleaded guilty [JURIST report] in the death of Hashim Ibrahim Awad [Wikipedia profile], who was removed from his residence and killed, then arranged with a shovel and firearm to appear as if he were planting an improvised explosive device. The Uniformed Code of Military Justice Section 809 Art. 90(2), Art. 91(2), and Art. 92(1, 2) [texts] impose upon military personnel an obligation and duty to obey only lawful orders. Reuters has more.


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Thailand high court to hear corruption charges against ex-PM
Michael Sung on July 10, 2007 8:41 AM ET

[JURIST] The Thai Supreme Court agreed to hear corruption charges [JURIST report] against former Prime Minister Thaksin Shinawatra [BBC profile; JURIST news archive] Tuesday, scheduling the first hearing for August 14 and ordering the exiled Thaksin and his wife Pojamarn to appear before the court. Thaksin is charged with abuse of power for personal gain, conflict of interest violations, and also dereliction of duty for personal gain stemming from a 2003 land purchase by Pojamarn from the government-directed Financial Institutions Development Fund [official website]. Pojamarn allegedly purchased the property at nearly one-third of its earlier value, which prosecutors say is the result of Thaksin's illegal influence. Thaksin lawyer and spokesperson Noppadol Pattama indicated that Thaksin will not return to Thailand to face the charges, citing concerns for his personal safety and doubts on whether Thaksin will receive a fair trial [JURIST report]. If convicted, Thaksin and Pojamarn face a maximum sentence of up to 13 years in prison.
In June, Thai Attorney General Phatchara Yutithamdamrong recommended the seizure of the land [JURIST report] involved in the current case. The Assets Examination Committee (AEC) has also ordered the seizure of additional Thaksin family assets, valued at $245.7 million, saying that funds had been shifted from accounts frozen [JURIST report] shortly before the order to freeze was issued. The AEC recommended that charges be brought [JURIST report] against Pojamarn and other members of Thaksin's family in February and other investigations are ongoing. Investigators have been having difficulty linking Thaksin to corruption [JURIST report], which was the stated reason for last year's bloodless coup [JURIST report] which removed Thaksin from power. AP has more. BBC News has additional coverage.


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China executes former drug safety commissioner for taking bribes
Michael Sung on July 10, 2007 8:00 AM ET

[JURIST] Zheng Xiaoyu, former commissioner of China's State Food and Drug Administration [official website, in Chinese] was executed Tuesday, as the Supreme People's Court [official website] denied Zheng's appeal for leniency. The court sanctioned Zheng's execution, saying that Zheng's acceptance of $850,000 in bribes and his serious dereliction of duty as a high-level official warranted the harsh penalty as it had a serious negative impact on society.
In May, the Beijing No. 1 Intermediate People's Court convicted Zheng and sentenced him to death [JURIST report]. Zheng, who served as the food and drug commissioner from 1998 to 2005, allowed eight pharmaceutical companies to bypass the drug approval process, including one company whose antibiotic is suspected of killing at least 10 people. Last Friday, Zheng's former subordinate, former Pharmaceutical Registration Department Director Cao Wenzhuan, was also sentenced to death [JURIST report] for receiving approximately $316,000 in bribes in exchange for certifying substandard drugs from two pharmaceutical companies. Death sentences in China require the approval [JURIST report] of the Supreme People's Court. AP has more. Xinhua has local coverage in English and additional coverage in Chinese.


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