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Ex-CEO convicted in scam at auto-chemical company
Court Issues |
2011/07/20 11:21
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A former corporate executive officer of a New York-based automotive-chemical company was convicted Tuesday in a multimillion-dollar investor fraud scheme that enabled him to buy expensive jewelry and take private jets.
A jury in Manhattan state Supreme Court found Cleveland lawyer James Margulies guilty of charges including grand larceny and scheme to defraud. He faces up to 25 years on the top two counts, which could run consecutively. Bail was set at $1.5 million.
Ira London, an attorney for Margulies, said he planned to file "a very vigorous appeal."
"The jury has spoken. I believe they have convicted an innocent man," he said.
While serving as the company's finance chief — and briefly as CEO — of Industrial Enterprises of America, Inc., from 2004 to 2008, Margulies illegally issued millions of shares of stock to friends and relatives, inflating the share price by making the company look more profitable than it was, prosecutors said.
A teachers' pension fund in Ohio and a church were among the victims of the scheme, prosecutors said.
Margulies personally reaped more than $7 million, spending it on lavish luxuries such as a $350,000 diamond ring for his wife from jeweler Harry Winston, prosecutors said.
He also paid more than a million dollars on the mortgage of his first home, bought a second home and spent $500,000 on a vacation club membership, prosecutors said.
Margulies was charged in the scheme in 2010 along with John D. Mazzuto, who pleaded guilty Jan. 14 to his role in issuing fraudulent shares of stock. |
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High court sets oral arguments in campaign lawsuit
Court Issues |
2011/07/16 05:21
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A conservative group fighting campaign finance rules in Montana says in a recent filing that it agrees disclosure laws can apply to corporate speech, but Western Tradition Partnership argues it isn't subject to current disclosure laws because its attack mailers fall outside the definition of "electioneering."
The Montana Supreme Court has set oral arguments for September in the state's challenge to a district court decision that tossed out the outright ban on corporate political spending.
Western Tradition Partnership first filed the lawsuit last year piggybacking on the high-profile Citizen's United case decided by the U.S. Supreme Court. The group aims to undo Montana's century-old restriction on corporate political spending.
Western Tradition is separately fighting a decision that it failed to report campaign expenditures. The group argues its activities are not intended to influence elections.
In a brief filed earlier this month with the Supreme Court on the main case fighting the ban corporate campaign spending, WTP made it clear it believes campaign finance regulation is OK.
"If the State is truly concerned with accountability, the state has other means at its disposal, such as disclosure laws, to make sure that people know who is speaking," Western Tradition argued in the brief. "It is inappropriate, and indeed, unconstitutional, to completely outlaw corporate political speech." |
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Court documents shed light on Bulger travels
Court Issues |
2011/06/23 05:39
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Newly-unsealed court documents detail some of the early travels of James "Whitey" Bulger and his longtime girlfriend Catherine Greig following Bulger's 1995 indictment.
In an affidavit dated April 25, 1997, then-FBI Special Agent Charles Gianturco writes that Bulger and Greig spent time in New York on Long Island and in Grand Isle, La., in 1995 and 1996.
According to the affidavit, Bulger and Greig checked into a hotel under the names "Mr. and Mrs. Tom Baxter" in the fall of 1995, and that Bulger had also used that name when he befriended a man in neighboring Selden told him he was a merchant seaman.
The criminal complaint against Grieg was unsealed Thursday in Boston following the arrests of Bulger and Grieg in Santa Monica, Calif. It charges Greig with harboring and concealing Bulger. |
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Court rules against Anna Nicole Smith's estate
Court Issues |
2011/06/22 05:39
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The Supreme Court has ruled against the estate of Anna Nicole Smith in its quest to capture some of the $1.6 billion estate left behind by her late Texas billionaire husband.
The high court on Thursday ruled that a bankruptcy court's decision to give the now-deceased Playmate $475 million from the estate of oil tycoon J. Howard Marshall was decided incorrectly.
Smith and Marshall were wed in 1994, and he died the next year.
His will left his estate to his son, E. Pierce Marshall, and nothing to Smith. A California bankruptcy court awarded Smith part of the estate, but the 9th U.S. Circuit Court of Appeal said that a bankruptcy court could not make a decision on an issue outside of bankruptcy law. |
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