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Executive gets 15 months in prison in doomed nuclear project
Law Firm Business | 2023/03/06 11:52
A former executive utility who gave rosy projections on the progress of two nuclear power plants in South Carolina while they were hopelessly behind will spend 15 months in prison for the doomed project that cost ratepayers billions of dollars.

Ex-SCANA Corp. Executive Vice President Stephen Byrne apologized in court Wednesday, saying he thinks about how he let down customers, shareholders, employees, taxpayers and his family almost every day.

The two nuclear plants, which never generated a watt of power despite $9 billion of investment, were supposed to be “the crowning achievement of my life,” Byrne said. “But I failed.”

Byrne is the second SCANA executive to head to prison for the nuclear debacle. Former CEO Kevin Marsh was sentenced to two years in prison in October 2021 and released earlier in March after serving about 17 months.

Two executives at Westinghouse, which was contracted to build the reactors, are also charged. Carl Churchman, who was the company’s top official at the Fairfield County construction site at V.C. Summer, pleaded guilty to perjury and is awaiting sentencing. Former Westinghouse senior vice president Jeff Benjamin faces 16 charges. His trial is scheduled for October.

Both defense lawyers and prosecutors agreed to delay Byrne’s prison sentence until he testifies at Benjamin’s trial to make sure he is honest and helpful.

But that isn’t in doubt. Prosecutors said Byrne was the first executive to come to investigators after the project was abandoned in July 2017. His careful notes taken in every meeting of who spoke and what was said saved the government years of work unraveling the lies, prosecutor Winston Holliday said.



Justices asked to hear dog toy dispute. Will they bite?
Law Firm Business | 2022/11/15 08:20
The company that makes Jack Daniel’s is howling mad over a squeaking dog toy that parodies the whiskey’s signature bottle. Now, the liquor company is barking at the door of the Supreme Court.

Jack Daniel’s has asked the justices to hear its case against the manufacturer of the plastic Bad Spaniels toy. The high court could say as soon as Monday whether the justices will agree. A number of major companies from the makers of Campbell Soup to outdoor brand Patagonia and jeans maker Levi Strauss have urged the justices to take what they say is an important case for trademark law.

The toy that has Jack Daniel’s so doggone mad mimics the square shape of its whisky bottle as well as its black-and-white label and amber-colored liquor while adding what it calls “poop humor.” While the original bottle has the words “Old No. 7 brand” and “Tennessee Sour Mash Whiskey,” the parody proclaims: “The Old No. 2 on Your Tennessee Carpet.” Instead of the original’s note that it is 40% alcohol by volume, the parody says it’s “43% Poo by Vol.” and “100% Smelly.”

The toy retails for about $13 to $20 and the packaging notes in small font: “This product is not affiliated with Jack Daniel Distillery.”

The toy’s maker says Jack Daniel’s can’t take a joke. “It is ironic that America’s leading distiller of whiskey both lacks a sense of humor and does not recognize when it — and everyone else — has had enough,” lawyers for Arizona-based VIP Products wrote the high court. They told the justices that Jack Daniel’s has “waged war” against the company for “having the temerity to produce a pun-filled parody” of its bottle.

But Jack Daniel’s lead attorney, Lisa Blatt, made no bones about the company’s position in her filing.

“To be sure, everyone likes a good joke. But VIP’s profit-motivated ‘joke’ confuses consumers by taking advantage of Jack Daniel’s hard-earned goodwill,” she wrote for the Louisville, Kentucky-based Brown-Forman Corp., Jack Daniel’s parent company.

Blatt wrote that a lower court decision provides “near-blanket protection” to humorous trademark infringement. And she said it has “broad and dangerous consequences,” pointing to children who were hospitalized after eating marijuana-infused products that mimicked candy packaging.


Iran faces US in international court over asset seizure
Law Firm Business | 2022/09/19 21:37
Iran told the United Nations’ highest court on Monday that Washington’s confiscation of some $2 billion in assets from Iranian state bank accounts to compensate bombing victims was an attempt to destabilize the Iranian government and a violation of international law.

In 2016, Tehran filed a suit at the International Court of Justice after the U.S. Supreme Court ruled money held in Iran’s central bank could be used to compensate the 241 victims of a 1983 bombing of a U.S. military base in Lebanon believed linked to Iran.

Hearings in the case opened Monday in the Hague-based court, starting with Iran’s arguments. The proceedings will continue with opening statements by Washington on Wednesday.

At stake are $1.75 billion in bonds, plus accumulated interest, belonging to the Iranian state but held in a Citibank account in New York.

In 1983, a suicide bomber in a truck loaded with military-grade explosives attacked U.S. Marine barracks in Beirut, killing 241 American troops and 58 French soldiers.

While Iran long has denied being involved, a U.S. District Court judge found Tehran responsible in 2003. That ruling said Iran’s ambassador to Syria at the time called “a member of the Iranian Revolutionary Guard and instructed him to instigate the Marine barracks bombing.”

The international court ruled it had jurisdiction to hear the case in 2019, rejecting an argument from the U.S. that its national security interests superseded the 1955 Treaty of Amity, which promised friendship and cooperation between the two countries.


Utah-based company wins auction to buy Jay Peak in Vermont
Law Firm Business | 2022/09/08 20:13
Utah-based Pacific Group Resorts, Inc., which owns five ski resorts, has won the auction to buy Jay Peak Resort, the Vermont ski area that was shaken by a massive fraud case involving its former owner and president.

The court-appointed receiver who has been overseeing Jay Peak for more than six years announced Thursday the results of Wednesday’s auction, with Pacific Group Resorts making the highest and best bid among the multiple bidders. The offer was not disclosed.

“We are pleased an experienced operating company like Pacific Group Resorts ended up with this great asset,” receiver Michael Goldberg said in a statement.

A federal court must approve the bid and a hearing is tentatively scheduled for Sept. 16, according to Goldberg. The sale is expected to close before the upcoming ski season, Goldberg said.

Pacific Groups Resorts, which owns Ragged Mountain Resort in New Hampshire and Powderhorn Mountain Resort in Colorado, as well as properties in British Columbia, Virginia, Maryland, had originally offered to buy Jay Peak for $58 million. Goldberg wanted to be able to continue to market the resort, and if there were qualified bids to hold an auction “in order to assure the highest and best offer,” according a court filing last month.

Vern Greco, PGRI’s president and CEO, said the company started pursuing the acquisition over three years ago.

“Jay has a high quality team of dedicated employees who have weathered the uncertainty of the receivership for a long time,” he said in a statement. “We look forward to bringing renewed stability to the property and its staff, we’re enthusiastic about the prospects for the resort, and we are delighted to be in Vermont which is an important market for any mountain resort operator.”

Former Jay Peak owner Ariel Quiros, former president William Stenger and Quiros’ adviser William Kelly were sentenced this spring to federal prison for their roles in a failed plan to build a biotechnology plant using tens of millions of dollars in foreign investors’ money raised through a special visa program.

The U.S. Securities and Exchange Commission and the state of Vermont also alleged in 2016 that Quiros and Stenger took part in a “massive eight-year fraudulent scheme” that involved misusing more than $200 million of about $400 million raised from foreign investors for various ski area developments through the same visa program.

They settled civil charges with the SEC, with Quiros surrendering more than $80 million in assets, including Jay Peak and Burke Mountain ski resorts.


Federal horserace authority rules again blocked in 2 states
Law Firm Business | 2022/08/11 18:06
A national horse racing authority has again been blocked by a federal court from enforcing some of its rules in the states of Louisiana and West Virginia.

A north Louisiana federal judge last month had blocked the Horseracing Integrity and Safety Authority from enforcing its rules in the two states.

That ruling was put on hold last week by the 5th U.S. Circuit Court of Appeals. But a revised ruling this week from the New Orleans-based appeals court keeps some of the limits on enforcement in place.

Rules blocked under the latest court order deal with the authority’s access to racetrack records and facilities, the calculation of state fees paid to the authority, and definitions of which horses are covered by the regulations.

The appeals court on Wednesday set arguments in the case for Aug. 30.

State and racing officials in Louisiana and West Virginia had sued to prevent the rules from going into effect.


Probation for woman who wiped up blood after killing spouse
Law Firm Business | 2022/08/08 02:42
A Florida woman who was acquitted of murdering her husband, a prominent official at the University of Central Florida, was sentenced Friday to a year of probation for tampering with evidence.

A judge sentenced Danielle Redlick in state court in Orlando.

Last month, a jury acquitted Danielle Redlick of second-degree murder in the death of her husband, Michael Redlick. Danielle Redlick said she had killed her husband out out of self-defense during a fight inside their home in which he had tried to “smother her to death.”

Jurors found Danielle Redlick guilty of evidence tampering for cleaning up her husband’s blood after stabbing him. Detectives found a pile of bloody towels, a bloody mop, bloody footprints and the strong smell of bleach in the house. She spent three years in jail prior to the trial.

Michael Redlick was the director of external affairs and partnership relations for the DeVos Sport Business Management Program at the University of Central Florida. He had previously worked for the Indianapolis Motor Speedway, Cleveland Browns and Memphis Grizzlies.

Court records showed that the Redlicks had been going through a divorce before the case was dismissed from a lack of action by Danielle Redlick, who initiated the court proceeding.

In a divorce petition, Danielle Redlick said the marriage was “irretrievably broken” and she was asking for alimony because she said she was unable to support herself without assistance. She listed herself as an unemployed photographer and multimedia professional.


Man denies kidnapping charge in alleged murder-for-hire plot
Law Firm Business | 2022/06/03 17:07
A Colorado man pleaded not guilty Thursday in federal court in Vermont to kidnapping a man who was later found shot to death in a snowbank in 2018 in what prosecutors allege is a murder-for-hire case stemming from a financial dispute.

Federal prosecutors say they believe Jerry Banks, 34, of Fort Garland, Colorado, killed Gregory Davis, 49, of Danville, Vermont, but he has not been charged in the killing. U.S. District Judge Geoffrey Crawford ordered Banks to remain detained until trial, noting the prosecutors’ concerns about his risk of flight and safety risk to potential witnesses.

“Someone who would kill for money would likely kill or improperly influence a witness or otherwise seek to influence the course of a trial that would result in his life in prison,” Paul Van de Graaf and Jonathan Ophardt, assistant U.S. attorneys for Vermont, wrote in their detention request. They said Banks has a history of living “off the grid” and no strong connection to Vermont or anywhere else in the country.

Banks’ federal public defender, Mary Nerino, did not contest detention and would not comment on the charges after the arraignment.

Davis was abducted from his Danville, Vermont, home on Jan. 6, 2018, and found shot to death the next day in a snowbank on a back road in Barnet.

Prosecutors detailed the alleged conspiracy in a filing Monday in federal court in Las Vegas. They wrote that Davis had been threatening to go to the FBI with information that Serhat Gumrukcu, 39, an inventor and the co-founder of a Los Angeles-based biotechnology company, was defrauding Davis in a multimillion-dollar oil deal Gumrukcu and Gumrukcu’s brother had entered into with Davis in 2015.

Gurumkcu was facing felony fraud charges in California in 2017 and was working on a deal that came together soon after Davis’ death that gave him significant ownership stake in Enochian Bioscience.


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