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Supreme Court declines to review insider trading case
Court Line News |
2015/10/06 14:19
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The Supreme Court said Monday it won't hear the Obama administration's appeal of a lower court ruling that made it tougher to prosecute people for trading on leaked inside information.
The justices let stand a decision by the federal appeals court in New York last year that threw out insider trading convictions of two high-profile hedge fund managers.
The 2nd U.S. Circuit Court of Appeals overturned the convictions of Anthony Chiasson, of Manhattan, and Todd Newman, of Needham, Massachusetts, after finding they were too far removed from inside information to be prosecuted.
Prosecutors warned the ruling could hinder the government's campaign to curb insider trading on Wall Street, a crackdown that has resulted in more than 80 arrests and 70 convictions over several years.
Chiasson, who co-founded Level Global Investors based in Greenwich, Conn., and Newman, who had worked for Diamondback Capital Management based in Stamford, Conn., traded on tips from insiders on stock in technology companies Dell Inc. and Nvidia Corp. that generated $72 million in profits. The former portfolio managers were both convicted in December 2012.
The appeals court said prosecutors failed to present enough evidence the men willfully engaged in insider trading or conspired to break the law. It ruled that the government must show a person receiving a tip knew that an insider disclosed confidential information and that the tipster passed the information expecting a personal benefit.
In legal briefs filed with the court, Solicitor General Donald Verrilli said leaving the appeals court ruling in place would "hurt market participants, disadvantage scrupulous market analysts and impair the government's ability to protect the fairness and integrity of the securities markets."
Both men have denied insider trading. Their lawyers argued that they believed they were making trades based on legitimate research.
U.S. Attorney Preet Bharara in Manhattan told reporters on a conference call Monday that the Supreme Court's decision means "that there's a category of conduct that arguably will go unpunished going forward."
"If you have a CEO who has access to material, non-published information about earnings or anything else of a very sensitive nature and decides he wants to tip a relative or a buddy or a crony, knowing that person is going to trade on it to the tune and profit of millions of dollars, we would have to think long and hard, given Newman, whether to prosecute a person like that," Bharara said.
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High court weighs 3 death sentences in Kansas cases
Court Line News |
2015/10/04 14:19
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The Supreme Court on Wednesday seemed likely to rule against three Kansas men who challenged their death sentences in what one justice called "some of the most horrendous murders" he's ever seen from the bench.
The justices were critical of the Kansas Supreme Court, which overturned the sentences of the men, including two brothers convicted in a murderous crime spree known as the "Wichita massacre."
It was the first high court hearing on death penalty cases since a bitter clash over lethal injection procedures exposed deep divisions among the justices last term.
The debate this time was over the sentencing process for Jonathan and Reginald Carr and for Sidney Gleason, who was convicted in a separate case of killing a couple to stop them from implicating him in a robbery.
The Kansas Supreme Court overturned death sentences in both cases, saying the juries should have been told that evidence of the men's troubled childhoods and other factors weighing against a death sentence did not have to be proven beyond a reasonable doubt.
The state court also ruled that the Carr brothers should have had separate sentencing hearings instead of a joint one. It said Reginald Carr's sentence may have been unfairly tainted because Jonathan Carr blamed Reginald for being a bad influence during their childhoods.
While the attorneys on both sides focused on the legal technicalities, several of the justices couldn't help but dwell on the sordid facts of the Carr case during two hours of oral argument.
Justice Samuel Alito said it involves "some of the most horrendous murders that I have ever seen in my 10 years here. And we see practically every death penalty case that comes up anywhere in the country."
At one point, Justice Antonin Scalia recounted at length the brutal details. Authorities said the brothers broke into a Wichita, Kansas, home in December 2000, where they forced the three men and two women inside to have sex with each other while they watched, then repeatedly raped the women. The brothers then forced the victims to withdraw money from ATMs before taking them to a soccer field, forcing them to kneel, and shooting each one in the head.
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Religious clerks in Kentucky follow law, but see conflict
Court Line News |
2015/09/17 17:13
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Clerk Mike Johnston prays twice a day, once each morning and once each night, and asks the Lord to understand the decision he made to license same-sex marriage.
“It’s still on my heart,” said Johnston, whose rural Carter County sits just to the east of Rowan County, where clerk Kim Davis sparked a national furor by refusing to issue marriage licenses to gay couples, a decision that landed her in jail.
Johnston is one of Kentucky’s 119 other clerks, many of them deeply religious, who watched the Kim Davis saga unfold on national television while trying to reconcile their own faith and their oath of office. Sixteen of them sent pleading letters to the governor noting their own religious objections. But when forced to make a decision, only two have taken a stand as dramatic as Davis and refused to issue licenses.
And others say they find the controversy now swirling around their job title humiliating.
“I wish (Davis) would just quit, because she’s embarrassing everybody,” said Fayette County Clerk Don Blevins, whose office serves the state’s second-largest city, Lexington.
After the U.S. Supreme Court legalized gay marriage in June, Kentucky Gov. Steve Beshear ordered clerks across the state to issue licenses, launching them along markedly different paths. The clerk in Louisville, Bobbie Holsclaw, issued licenses that very day and the mayor greeted happy couples with bottles of champagne.
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Idaho high court upholds law banning horse racing terminals
Court Line News |
2015/09/11 18:04
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Idaho's highest court says the state must enforce legislation banning lucrative instant horse racing terminals after ruling that Gov. C.L. "Butch" Otter's veto of the bill was invalid.
The decision is a blow to Idaho's horse racing industry, where officials have pleaded that the machines are vital to keeping their businesses afloat.
In a unanimous decision issued Thursday, the court ruled that the ban must go into effect because Otter did not complete the veto within the required five-day time span. In Idaho, a bill automatically becomes law — even if the governor doesn't sign it — unless it is vetoed within the legal timeframe.
"This pivotal decision reaffirms that even Idaho's highest elected officials must follow the Constitution," said Coeur d'Alene Tribe Chief James Allan, chairman of the tribe that filed the lawsuit against the state, prompting the court's ruling. The tribe, which profits from its own video gaming on the reservation and faced competition from the new horse racing versions, said it was "extremely happy" with the ruling.
Secretary of State Lawerence Denney must now certify the law, which will make the machines illegal. He did not immediately return calls from The Associated Press on when he will certify it. There are currently about 250 machines installed in three locations across Idaho. |
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Bangladesh court bans Rana Plaza movie because of terrifying scenes
Court Line News |
2015/09/02 14:06
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Bangladesh’s high court has imposed a six-month ban on a film about a garment worker who was rescued from the rubble 17 days after a five-storey factory complex collapsed, killing more than 1,000 people.
The director, Nazrul Islam Khan, had argued that the real-life story of Reshma Begum depicted courage amid the tragedy.
The disaster on 24 April 2013 left 1,135 people dead. Thousands more were rescued from the ruins of the illegally built complex which housed five factories supplying garments to international companies.
Rescue workers had given up hope of finding anyone else alive in the rubble of the Rana Plaza. Then they heard a faint tapping.
When the collapse started, Begum said she raced down a stairwell into the basement, where she became trapped in a pocket of space that allowed her to survive. She found some dried food and bottles of water to sustain her until she was rescued. She now works in a hotel.
The collapse triggered an outcry at home and abroad. There have been efforts to reform Bangladesh’s garment industry to improve safety and working conditions.
Investigators say several factors contributed to the building’s collapse: it was overloaded with machines and generators, constructed on swampy land, and the owner added floors in violation of the original building plan.
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Court fines Washington state over education funding
Court Line News |
2015/08/14 08:58
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Washington officials are considering a special legislative session after the state Supreme Court issued daily fines a of $100,000 until lawmakers comply with a court order to improve the way the state pays for its basic education system.
Thursday's order, signed by all nine justices of the high court, ordered that the fine start immediately, and be put into a dedicated education account.
The court encouraged Gov. Jay Inslee to call a special session, saying that if the Legislature complies with the court's previous rulings for the state to deliver a plan to fully fund education, the penalties accrued during a special session would be refunded.
Inslee and legislative leaders are set to meet Monday in Seattle discuss what next steps the state should take.
"There is much that needs to be done before a special session can be called," Inslee said in a statement. "I will ask lawmakers to do that work as quickly as humanly possible so that they can step up to our constitutional and moral obligations to our children and lift the court sanctions."
The ruling was the latest development in a long-running impasse between lawmakers and justices, who in 2012 ruled that the state is failing to meet its constitutional duty to pay for the cost of basic education for its 1 million schoolchildren.
Thomas Ahearne, an attorney for the plaintiffs, said that the court's action "is long overdue."
"The state has known for many, many years that it's violating the constitutional rights of our public school kids," Ahearne said. "And the state has been told by the court in rulings in this case to fix it, and the state has just been dillydallying along."
The lawsuit against the state was brought by a coalition of school districts, parents, teachers and education groups — known as the McCleary case for the family named in the suit.
In its original ruling, and repeated in later follow-up rulings, the justices have told the Legislature to find a way to pay for the reforms and programs they had already adopted, including all-day kindergarten, smaller class sizes, student transportation and classroom supplies, and to fix the state's overreliance on local tax levies to pay for education. Relying heavily on local tax levies leads to big disparities in funding between school districts, experts say. |
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