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Is Schwarzenegger Serious About Taxing Lawyers?
Legal News | 2008/03/25 16:08

California Gov. Arnold Schwarzenegger has a $16 billion budget deficitdilemma on his hands. He insists he doesn't want to cut education. Buthe proclaims with equal fervor that he won't raise taxes.

So what's a post-partisan governor to do? Close tax loopholes, of course.

Now one governor's loophole may be another politician's tax increase.But according to two media outlets, Schwarzenegger told the audience ata Pleasant Hill, Calif., budget forum last Wednesday that the state should consider closing tax loop-holes and in his mind that includes the lack of a sales tax on professional services -- including legal services.

"We have to look at the way we are taxing," Schwarzenegger is reportedas saying. "There's whole new economies that are developing,service-oriented economies."

Asked about the comments on Thursday, finance department spokesman H.D.Palmer said the governor was just explaining that there are a lot ofdeficit-eliminating ideas "out there."

"Basically, it was in the context of we ought to have everything on thetable as we ought to be having discussions about them sooner ratherthan later," Palmer said. "But we're not carrying a bill in our backpocket, if that's what you're asking."



Attorney Is Disbarred for the Second Time
Legal News | 2008/03/24 21:16

A one-time law firm associate, disbarred in 1988 for insider trading, then re-admitted in 2003, has been disbarred again for misrepresenting his past in applications both for reinstatement and for non-legal licenses to work as an insurance agent and a stock broker.

Israel G. Grossman committed his insider trading offenses while working as an associate at the firm now known as Kramer Levin Naftalis & Frankel. The confidential information he passed to friends and family about transactions the firm was working on netted them $1.5 million in trading profits.

Arrested and convicted in 1987, the then-34-year-old Grossman was sentenced to two years in prison. He was also later found jointly and severally liable to the Securities and Exchange Commission for $2.5 million. The case attracted considerable attention at the time, coming soon after prosecutors ensnared the much larger insider trading ring led by investment banker Dennis Levine.

But the Appellate Division, 1st Department, ruled last week that the now 55-year-old Grossman had consistently denied having a prior conviction on professional licensing applications to the state insurance department and the National Association of Securities Dealers. He failed to disclose these applications in his successful quest for reinstatement to the bar in 2003, even though he was facing criminal prosecution at the time for allegedly lying to the NASD about his past.



Brits vs. Americans: Who Can Better Weather a Recession?
Opinions | 2008/03/24 21:14
When a downturn hits the economy, elite U.S. firms are better hedged than the U.K.'s -- or so says conventional wisdom. In the past New York's rainmakers haven't felt the effects as sharply as the London locals. But today, with financial markets in crisis and recession looming, how will American firms, with their diversity of practices, stack up against Brits and their superior geographic reach? "I would rather be a lawyer in a U.S. firm in a downturn," says David Lakhdir, a London partner at Paul Weiss.


Appeals Court Rules Against Qualcomm
Legal Watch | 2008/03/20 17:57

A federal appeals court has turned down Qualcomm Inc.'s request to hold off imposition of an injunction against sales of some of the company's cellphone chips, while Qualcomm pursues an appeal of a patent suit won by rival Broadcom Corp.

The U.S. Court of Appeals for the Federal Circuit, without providing details, ruled Tuesday that Qualcomm had not met its burden of proof to win a stay pending appeal of the injunction, which was ordered by federal judge in Santa Ana, Calif. on December 31.

The appeals court also denied a motion for Sprint Nextel Corp. to intervene in the case. The company is among the cellphone carriers potentially affected by the injunction.

A federal jury concluded last year that Qualcomm infringed three Broadcom patents, covering features that include digital-video technology, technology for allowing cellphones to use two or more networks simultaneously as well as a push-to-talk feature for instant communications between phones.

The subsequent injunction by U.S. District Judge James Selna had an immediate effect on U.S. sales of some handsets using Qualcomm chips. But most of the affected products fall under a sunset provision so that the company can continue selling them through January 2009 if it pays royalties to Broadcom. Qualcomm has been working on technical changes to some products to avoid infringing the Broadcom patents.

A Qualcomm spokeswoman, in a prepared statement, said: "Although our motion for a stay was denied, the Federal Circuit has recognized the need for speedy resolution of the many issues raised by the verdict and remedy in this case, and has therefore granted Qualcomm's motion for an expedited schedule for briefings and oral argument."



Lawyer Melvyn Weiss to Plead Guilty in Scheme
Headline News | 2008/03/20 17:55
Prominent attorney Melvyn Weiss has agreed to plead guilty in a lucrative kickback scheme involving payments to plaintiffs in class-action lawsuits against some of the largest corporations in the nation, his defense attorney said Thursday.

Weiss will plead guilty to "limited participation in a criminal conspiracy" involving payments to plaintiffs, attorney Benjamin Brafman said in a statement.

"I deeply regret my conduct and apologize to all those who have been affected," Weiss said in the statement.

Brafman did not specify the charges involved in the plea. Weiss previously pleaded not guilty to one count each of conspiracy, mail fraud, money laundering and obstruction of justice in a revised indictment.

The plea deal calls for Weiss to receive a prison sentence of 18 to 33 months, with the court able to substitute time in home confinement or community service.

Weiss also agreed to pay $10 million in fines and forfeiture penalties, according to the statement.

Authorities say the firm now known as Milberg Weiss made an estimated $250 million over two decades by filing legal actions on behalf of professional plaintiffs who received $11.3 million in kickbacks.

The lawsuits targeted companies such as AT&T, Lucent, WorldCom, Microsoft Corp. and Prudential Insurance.



Man Pleads Guilty After Verdict Tossed
Court Center | 2008/03/20 15:59
A man who was on death row for nearly 20 years until the U.S. Supreme Court overturned his verdict because of racial discrimination has pleaded guilty to the 1985 slaying for which he was originally sentenced to die.

Thomas Miller-El accepted a deal with prosecutors Wednesday that spares the 56-year-old from heading to death row for a second time but virtually assures he will never leave prison.

A judge sentenced Miller-El to life in prison after he pleaded guilty to capital murder and aggravated robbery in the killing of a hotel clerk. He waived his right to appeal in exchange for prosecutors not seeking the death penalty, reported Thursday.

The plea appeared to end a two decades-old saga in which Miller-El, who is black, had his original conviction tossed in 2005 by the high court on the grounds of racial discrimination in jury selection.

"The attitude currently in the DA's office is not conducive to the tone that existed back when Mr. Miller-El's case was tried," said Doug Parks, Miller-El's attorney.

The Supreme Court cited a manual, written in 1969 and used until at least 1980, that instructed prosecutors on how to exclude minorities from Texas juries. Supreme Court Justice David H. Souter called racial discrimination in Dallas County's jury selection process unquestionable.

Miller-El was sentenced to death row in 1986 by a 12-member jury that included one black. Prosecutors struck 10 of the 11 blacks eligible to serve.

Miller-El pleaded guilty to killing Holiday Inn clerk Douglas Walker during a robbery. Walker and co-worker Donald Ray Hall were bound, gagged and shot. Hall, who was paralyzed in the shooting, identified Miller-El as the triggerman.



Cyclist Landis Appeals Arbitration Court Ruling
Top Legal News | 2008/03/19 18:00
US cyclist Floyd Landis, stripped of his 2006 Tour de France victory for doping, began making his appeal to a three-man panel from the Court of Arbitration for Sport (CAS) here on Wednesday.

The private hearing is expected to continue through Monday with no comments from any of the participants, both Landis and the US Anti-Doping Agency (USADA) having agreed to the closed-door session unlike last May's open US hearing.

Landis, 32, has denied wrongdoing and fought his positive test for steroid testosterone on July 20, 2006, but a USADA arbitration panel ruled 2-1 against him last September, resulting in a two-year ban through January 29, 2009.

The International Cycling Union stripped Landis of his 2006 crown after that verdict, awarding the title to Spain's Oscar Pereiro.

In a Manhattan law office, Landis will make much the same case as he did last year, attacking the credibility of the French laboratory which handled his doping samples, and hope the global panel sees matters differently.

The CAS appeal board includes David Williams of New Zealand, Paris attorney Jan Paulsson and New York lawyer David Rivkin.

Swiss-based CAS will announce its binding ruling from Lausanne after completion of the hearing and consideration of the evidence presented.

Landis tested positive for synthetic testosterone after the penultimate 17th stage of the 2006 race. He fell back in stage 16 but rallied in stage 17 to reclaim almost eight minutes on his way to a now-disgraced victory moment.

The USADA arbitration panel noted several areas in which the French lab's handling of the test sample was improper but said the carbon ratio isotope test that showed Landis testing positive outweighed those issues.



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