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Lawsuit says California mortgage money mishandled
Legal News |
2014/03/17 14:12
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Three community assistance organizations sued Gov. Jerry Brown and other state officials on Friday, alleging the state improperly diverted nearly $370 million that was intended to help homeowners struggling with foreclosures.
The lawsuit filed in Sacramento County Superior Court says the money was siphoned off to the state's general fund as California wrestled with a massive budget deficit and has never been repaid. The money was part of the $25 billion settlement between major banks and nearly every state in 2012, with California receiving the largest share.
H.D. Palmer, a spokesman for the Department of Finance, said in a statement that the administration is confident that its budget actions are legally sound.
The suit was filed by attorney Neil Barofsky, who previously was inspector general for the federal bank bailout. The suit alleges the money is needed to help affected homeowners "weather the economic storm that continues to sweep so many families out of their homes."
"As a result of these diversions, large numbers of homeowners who are eligible for loan modifications or other relief have been left stranded, and countless fiscally imperiled California homeowners remain unaware of the full scope of their rights," the lawsuit states.
Barofsky filed the suit on behalf of three California-based community organizations that the suit says have helped thousands of homeowners: National Asian American Coalition, COR Community Development Corporation and National Hispanic Christian Leadership Conference. |
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Court declines to take up Episcopal Church dispute
Legal News |
2014/03/14 14:48
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The Supreme Court has declined to wade into a dispute between the Episcopal Church and a conservative congregation that left the denomination in a rift over homosexuality and other issues.
The justices on Monday rejected an appeal from The Falls Church, one of seven Virginia congregations that broke away from the Episcopal Church in 2006 and aligned itself with the more conservative Anglican Church of North America.
The breakaway congregation in suburban Washington, D.C., claimed a right to keep the church building and surrounding property. But the Virginia Supreme Court ruled the Episcopal Church retained ownership of the historic church.
The Falls Church was one of seven Virginia congregations that left the Episcopal Church because of theological differences, including the 2003 consecration of an openly gay bishop in New Hampshire. |
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Court: Unplayed Blagojevich tapes to stay sealed
Legal News |
2014/03/14 14:48
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An appellate court in Chicago says transcripts of FBI wiretaps not played at Rod Blagojevich's corruption trials will remain sealed.
The 7th U.S. Court of Appeals is still mulling its decision on the imprisoned former Illinois governor's request to toss his convictions.
Appellate courts typically unseal documents submitted as part of an appeal. But prosecutors later asked that the transcripts submitted to the appeals court not entered into evidence at the trials remain under seal. Blagojevich's attorneys wanted them opened.
But in its order posted Tuesday, the court said that if it eventually agrees the trial judge erred by not admitting the unplayed wiretaps at trial, they will then be unsealed.
The court's expected to rule on the appeal soon.
Blagojevich is serving a 14-year sentence for multiple corruption convictions. |
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Coast Guardsman guilty in sexual misconduct case
Legal News |
2014/03/10 13:55
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Coast Guard officials in New Orleans say a petty officer has been convicted and sentenced on charges involving sexual assault and possession of child pornography.
Petty Officer 2nd Class Christopher C. Bush's court martial was held in Norfolk, Va.
A Coast Guard news release said the 28-year-old Bush was convicted Friday on four violations of a Uniform Code of Military Justice article dealing with rape and sexual assault and one involving child pornography.
The crimes involved a junior Coast Guard woman and a civilian woman. They happened between January 2010 and May 2013 while Bush was stationed at a unit in New Orleans. The Coast Guard said it was not releasing the name of the unit to protect the privacy of the victims. |
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Fla. high court: Immigrant can't get law license
Legal News |
2014/03/07 15:15
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The Florida Supreme Court has ruled that immigrants in the country illegally can't be given a license to practice law.
The question was raised when a man who moved here from Mexico when he was 9 years old sought a license in Florida. The court said Thursday that federal law prohibits people who are unlawfully in the country from obtaining professional licenses. The justices said state law can override the federal ban, but Florida has taken no action to do so.
Earlier this year, the California Supreme Court granted a law license to Sergio Garcia, who arrived in the U.S. from Mexico as a teenager with his father. But that ruling was only after the state approved a law that allows immigrants in the country illegally to obtain the license. |
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Court: Spain can extradite Liberty Reserve founder
Legal News |
2014/02/24 14:40
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A Spanish court has ruled that a man accused of being behind one of the world’s biggest money laundering businesses can be extradited to the U.S. to face charges there.
Arthur Budovsky, who founded currency transfer and payment processing company Liberty Reserves, can appeal the ruling, the National Court said late Friday. Spain’s government must also approve the decision for an extradition to happen.
It wasn’t immediately clear if Budovsky would appeal. The 40-year-old Costa Rican, who was arrested at Madrid airport in May 2013, has acknowledged founding Liberty Reserve in 2006, but says he sold his share to stay on only as a consultant.
U.S. officials accuse Budovsky of using Liberty Reserve as a kind of underworld bank which handled about $6 billion worth of illicit transactions. |
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