[JURIST] The US Securities and Exchange Commission (SEC) [official website] filed a civil suit [complaint, PDF] on Friday alleging securities fraud against Goldman, Sachs & Co. [corporate website]. The complaint, filed in the US District Court for the Southern District of New York [official website], alleges that Goldman made misleading statements and omissions to investors in early 2007 in violation of the Securities Act of 1933 [text, PDF] and Securities Exchange Act of 1934 [text, PDF]. Goldman's alleged conduct in marketing collateralized debt obligations (CDOs) [Investopedia backgrounder] to investors lies at the core of the controversy. Goldman responded [press release] to the allegations by denying all wrongdoing. The SEC is seeking "injunctive relief, disgorgement of profits, prejudgment interest, civil penalties and other appropriate and necessary equitable relief from both defendants," remedies considered appropriate in securities fraud cases.

The SEC action continues a trend in bringing action against financial corporations and their agents that engaged in allegedly illegal conduct at the start of the subprime mortgage downturn in 2007. Last year, two former Bear Stearns hedge fund managers were acquitted [JURIST report] of securities-related charges. The June 2008 SEC complaint [text, PDF] alleged that the managers had taken leveraged positions in financial derivatives based on subprime mortgage-based assets and then taken steps to conceal ensuing losses from investors.

[JURIST] Internal Central Intelligence Agency (CIA) [official website] documents [part 1, PDF; part 2, PDF; part 3, PDF] released Thursday reveal that the former head of the agency Porter Goss may have agreed with the destruction of videotapes [JURIST news archive] showing harsh interrogations of terror suspects. The heavily redacted documents reveal [NYT report] that, despite being unaware of the order before it was carried out, Goss agreed with the order from Jose Rodriguez, then head of the CIA clandestine services, to destroy videotapes of the interrogations of two terror suspects. Some of the documents reveal an e-mail in which Rodriguez said that "the heat from destroying is nothing compared to what it would be if the tapes ever got into the public domain ... they would make us look terrible; it would be devastating to us." The documents were released as part of a Freedom of Information Act (FOIA) [text] lawsuit brought by the American Civil Liberties Union (ACLU) [official website]. Ben Wizner, senior staff attorney with the ACLU National Security Project said that the "documents provide further evidence that senior CIA officials were willing to risk being prosecuted for obstruction of justice in order to avoid being prosecuted for torture. If the Department of Justice fails to hold these officials accountable, they will have succeeded in their cover-up."

Last year, it was revealed that 12 of the 92 videotapes destroyed by the CIA contained evidence [JURIST report] of "enhanced interrogation techniques." The US Department of Justice (DOJ) [official website] had previously acknowledged that the CIA destroyed [letter, PDF] 92 videotapes, in response to an August 2008 judicial order [text, PDF] that the CIA turn over information regarding the tapes or provide specific justifications on why it could not release the information.

[JURIST] UN High Commissioner for Human Rights Navi Pillay [official profile] on Friday decried [press release] the recent decision by Hamas [GlobalSecurity backgrounder; JURIST news archive] to execute several of its prisoners. On Thursday, the de-facto government of Palestinian Gaza [JURIST news archive] executed Naser Abu Furaih and Mohamed al-Sabaa, both of whom were convicted of treason last February in connection with the Israeli occupation of Gaza. Pillay, who said that she was "alarmed" by reports that Hamas planned to execute several more prisoners soon, called on the Islamist authority to abolish the use of the death penalty:

It is extremely disappointing that Hamas is contemplating a return to the use of the death penalty, despite the fact that no officially-sanctioned death sentences have been carried out in Gaza since 2005. ... I call on Hamas to reconsider its position and exhibit respect for the international community's firm rejection of the death penalty ... and to fully uphold and promote the right to life.

[JURIST] The Regensburg District Court in southern Germany convicted British Bishop Richard Williamson of incitement on Friday for denying the Holocaust [JURIST news archive] and ordered him to pay a 10,000 euro fine. The case stemmed from an interview to Swedish TV channel SVT1, broadcast in January 2009,in which Williamson said he doubted [Die Zeit report, in German] that six million Jews were killed in gas chambers. Last year, the same court issued a 12,000 euro fine against Williamson in connection with this case, but Williamson contested the decision, forcing the public trial [AP report]. When Williamson gave the interview to the Swedish TV channel he asked the crew not to broadcast the interview in Germany, because denial of the Holocaust is a criminal offense there. The lifting of Williamson's excommunication [NYT report] last year by Pope Benedict XVI [Vatican profile] caused international outrage.

In February, the Hungarian Parliament [official website, in Hungarian] passed a bill [JURIST report] that prohibits denials of the Holocaust. In November, the German Federal Constitutional Court [official website, in German] upheld [JURIST report] legislation prohibiting public support and justification of the Nazi regime. In 2007, the European Union approved [JURIST report] a framework aimed at criminalizing denial of the Holocaust and other genocides after six years of contentious debate. Also in 2007, a German court sentenced [JURIST report] anti-Semitic writer Ernst Zundel [ADL profile; JURIST news archive] to five years in prison after finding him guilty on 14 counts of incitement, libel and disparaging the dead.

[JURIST] A judge for the US District Court for the Eastern District of New York [official website] on Thursday ordered Imam Ahmad Afzali [NYT profile] to leave the country within 90 days. Afzali pleaded guilty [JURIST report] in March to lying to FBI agents in connection with the investigation of a plot to detonate explosives in the New York City subway system. Judge Frederic Block ordered electronic surveillance of Afzali until he leaves the country. Afzali will serve no prison sentence for the crime, but will be deported to Afghanistan if he does not comply with the order to leave the country voluntarily.

Afzali's case stems from his role as a police informant in an investigation of Najibullah Zazi [JURIST news archive], who pleaded guilty [JURIST report] in February to terrorism charges for planning the subway attacks. Afzali has admitted to telling Zazi that the FBI was investigating him, but later denying the fact to the FBI. Also in February, the US Department of Justice (DOJ) [official website] announced superseding indictments [JURIST report] against Adis Mendunjanin and Zaerein Ahmedzay, two other men accused of planning to bomb subways in New York City. Mendunjanin previously pleaded not guilty [JURIST report] to similar charges.

[JURIST] A judge for US District Court for the Western District of Wisconsin [official website] ruled [opinion, PDF] Thursday that the National Day of Prayer [official website] is an unconstitutional government endorsement of religion. Judge Barbara Crabb issued summary judgment in favor of the Freedom from Religion Foundation [advocacy website], which challenged 36 USC § 119 [text], establishing a day of prayer. The statute, passed in 1952 and amended in 1988 to make it the first Thursday in May, says the president will declare the day so people "may turn to God in prayer and meditation at churches, in groups, and as individuals." In her ruling, Crabb said the National Day of Prayer violates the First Amendment's Establishment Clause [Cornell LII backgrounder]:

It goes beyond mere "acknowledgment" of religion because its sole purpose is to encourage all citizens to engage in prayer, an inherently religious exercise that serves no secular function in this context. In this instance, the government has taken sides on a matter that must be left to individual conscience. "When the government associates one set of religious beliefs with the state and identifies nonadherents as outsiders, it encroaches upon the individual's decision about whether and how to worship."

[JURIST] US President Barack Obama on Thursday ordered Department of Health and Human Services (HHS) [official website] Secretary Kathleen Sebelius [official profile] to expand the rights [memo] of patients and non-related visitors in hospitals that receive funding from Medicaid and Medicare [official websites]. The rules that Obama asked HHS to establish are designed to ensure that hospitals respect the rights of patients' advance directives, such as designating visitors and powers of attorney, and that visitors may not be denied rights for discriminatory purposes. Obama requested that HHS:

ensure that hospitals that participate in Medicare or Medicaid respect the rights of patients to designate visitors. It should be made clear that designated visitors, including individuals designated by legally valid advance directives (such as durable powers of attorney and health care proxies), should enjoy visitation privileges that are no more restrictive than those that immediate family members enjoy. You should also provide that participating hospitals may not deny visitation privileges on the basis of race, color, national origin, religion, sex, sexual orientation, gender identity, or disability.

[JURIST] The Kyrgyzstan Prosecutor General’s Office announced Friday that the son of deposed president Kurmanbek Bakiyev [BBC profile], Maksim Bakiyev, faces charges of abuse of power and misuse of state credit. Maksim Bakiyev ran Kyrgyzstan's Central Agency for Development, Investment and Innovation and is accused of transferring [RFE/RL report] USD $35 million of a $300 million loan from Russia into private bank accounts. In separate criminal cases, Maksim Bakiyev, along with his brother Marat and paternal uncle Janysh are also facing three charges of premeditated murder and attempted murder [RFE/RL report].

Also Friday, Kyrgyzstan interim leader Roza Otunbayeva [Telegraph profile] announced that the government is working on a new constitution [Reuters report] that will provide for a parliamentary democracy for the country. Kurmanbek Bakiyev officially resigned [CSM report] from the presidency on Thursday after a week of political chaos following violent political protests [JURIST report].

Earlier this week, Otunbayeva said that Kurmanbek Bakiyev should stand trial [JURIST report] for the recent violence. The protests, prompted in part by a drastic increase in utility costs, led to at least 84 deaths [Reuters report] and many more injuries. On Tuesday, Kyrgyzstan's interim government announced that the country's highest court will be suspended [JURIST report] until a permanent government is established. Roza Otunbayeva launched the interim government [JURIST report] last week after violence forced Bakiyev to flee the capital. The protests came just one week after UN Secretary-General Ban Ki-moon [official profile] urged Kyrgyzstan to protect all forms of human rights [JURIST report], including "free speech and freedom of the media."

[JURIST] A German court ruled Thursday that persons from the former East Germany do not constitute a unique ethnic group for discrimination prevention purposes. The matter arose [DW report] when an East Berlin woman sued a Stuttgart company after the company rejected her employment application and returned her resume with the term "Ossi," a derogatory term for someone with ties to the former East Germany, written alongside a minus sign. Though admitting the term's negative connotation, the judge concluded that place of birth alone is inadequate to qualify [Spiegel report] as an ethnic group. Additional attributes such as tradition, culture, language, and religion must be considered, and the former East Germany is not sufficiently disparate from West Germany, per the court.

Many Germans believe that, though the physical barriers that once divided Germany no longer exist, a "wall in the mind" persists that leads to continued prejudice. A 2008 study concluded that 64 percent of those from the former East Germany believe they are regarded as "second-class citizens," [Spiegel report] while 77 percent believe that those from West Germany receive preferential treatment. The same study revealed that 59 percent of those surveyed feel the country continues to consist of two distinct communities.

[JURIST] US District Judge James Selna on Thursday ordered [text, PDF] a May 13 pre-trial conference for the consolidated litigation against Toyota Motor Corporation [corporate website, JURIST news archive] surrounding the company's auto safety failures. The court found that, "[b]ecause this docket involves both personal injury actions and actions for economic loss, the Court believes a somewhat unique structure is required." Toyota will defend itself in US District Court for the Central District of California [official website] against [Reuters report] nearly 100 consumer fraud class action and personal injury claims. In addition to civil suits, Toyota faces a Securities and Exchange Commission (SEC) [official website] probe [ABC report] into investor disclosures, as well as a criminal investigation by federal prosecutors surrounding "sudden acceleration" in Toyota cars.

Last week, the US Judicial Panel on Multidistrict Litigation (MDL) [official website] consolidated [JURIST report] more than 150 pending lawsuits against Toyota, transferring them to the district court. Earlier this month, the National Highway Traffic Safety Administration (NHTSA) [official website] announced that it will seek a record civil penalty [JURIST report] of $16.375 million against Toyota for a four-month delay in notifying the agency about a problem with "sticky" gas pedals in various car models. In March, the California Orange County District Attorney (OCDA) [official website] filed a consumer protection suit [JURIST report] against Toyota, alleging that the company knowingly sold vehicles with acceleration defects. Toyota has been under federal scrutiny [NHTSA materials] since December and has recalled approximately eight million cars.

[JURIST] An independent UN commission has blamed the Pakistani government and police forces for the 2007 assassination [JURIST report] of former prime minister Benazir Bhutto [BBC obituary; JURIST news archive] in its investigatory report [text, PDF] released Thursday. According to the report, the Pakistani federal government "lacked a comprehensive security plan" and failed to provide adequate security for Bhutto by relying on local officials without giving them "necessary instructions." In the report, the commission accused the government of failing to launch a proper investigation into those responsible for the attack. The report also accused the government of hindering their investigation and called their various failures "deliberate":

A range of Government officials failed profoundly in their efforts first to protect Ms. Bhutto and second to investigate with vigour all those responsible for her murder, not only in the execution of the attack, but also in its conception, planning and financing. ... The Commission believes that the failures of the police and other officials to react effectively to Ms. Bhutto's assassination were, in most cases, deliberate.

[JURIST] Council of Europe Commissioner on Human Rights Thomas Hammarberg [official profile] on Thursday criticized an agreement reached Wednesday between Germany and Kosovo that would return to Kosovo thousands of refugees who fled to Germany during the 1998-1999 Kosovo War [BBC backgrounder; JURIST news archive]. The agreement calls for Germany to repatriate up to 2,500 refugees per year [AFP report] and ensures that refugees from all ethnic groups will face repatriation, rather than only Roma [JURIST news archive], who may face persecution in Kosovo. Hammarberg worried that Kosovo does not yet have the infrastructure [DW report] to care for the returning refugees or to protect them from ethnically motivated violence.

Kosovo is currently struggling to be recognized as an independent nation. In December, the International Court of Justice (ICJ) [official website] began oral arguments regarding an advisory opinion requested by Serbia on the effectiveness of Kosovo's 2008 declaration of independence [JURIST reports]. Last year, in an effort to further the legitimacy of their independence, Kosovo began operations of its own judicial system. In March 2009, more than 100 Serbian judges, prosecutors, and legal professionals prevented the opening [JURIST report] of the first EU-backed trial in Kosovo by protesting in front of the Mitrovica court house. A panel of three judges had been set to preside over a criminal case involving two Serbian defendants. As Serbia and Kosovo's Serbian population have refused to accept Kosovo's independence, the demonstration was intended to bar the EU from holding trial [B92 report] in Kosovo except under UN laws. The trial court was established by European Union Rule of Law Mission in Kosovo (EULEX) [official website], an EU mission designed to guide Kosovo toward independence in accordance with the Rule of Law.

[JURIST] The Nova Scotian government officially pardoned [ceremony materials] and issued an apology to Canadian civil rights icon Viola Desmond in a ceremony Thursday attended by Premier Darrell Dexter and Minister of Justice Landry Ross [official profiles]. Desmond, an African-Canadian woman who died in 1965, was fined $20 and jailed overnight in 1946 on charges that stemmed from her refusal to leave an area of a theater reserved for white patrons. Dexter apologized [CBC report] to Desmond's family, including her sister Wanda Robson who was at the ceremony, and all African Nova Scotians for the government's actions against Desmond. Dexter stated:

The arrest, detainment and conviction of Viola Desmond is an example in our history where the law was used to perpetuate racism and racial segregation - this is contrary to the values of Canadian society. We recognize today that the act for which Viola Desmond was arrested, was an act of courage, not an offence.