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Texas attorney general accused of lying to investors
Attorney News | 2015/08/05 07:04

Texas Attorney General Ken Paxton had an investment opportunity: a tech startup making data servers. He told people he had put his own money into Servergy Inc., according to prosecutors, and helped persuade a state lawmaker and another wealthy businessman to buy more than $100,000 in shares.

All the while, Paxton was actually being compensated by Servergy, according to an indictment unsealed Monday, the same day the state's top law enforcement officer turned himself into jail on securities fraud charges. The alleged deception took place before Paxton took office in January. If convicted, the rising Republican star could face five to 99 years in prison.

It was a low moment for a tea-party favorite who is barely seven months on the job, and whom GOP presidential candidate Ted Cruz candidate called a "tireless conservative warrior" when Paxton ran for office last year.

Attorneys for Paxton, 52, said he will plead not guilty to two counts of first-degree securities fraud and a lesser charge of failing to register with state securities regulators.

"He is looking forward to the opportunity to tell his side of the story in the courtroom," said Dallas attorney Joe Kendall, adding that a judge instructed Paxton's lawyers not to comment further.

A frenzy of media outside the Collin County jail in Paxton's hometown was reminiscent of a year ago, when then-Texas Gov. Rick Perry was booked after being indicted on charges of abusing his power with a 2013 veto. But whereas Perry defiantly welcomed the cameras at jail, Paxton ducked reporters after his booking, driving away in a black SUV.

Nor did top Texas Republicans rush to Paxton's side with the same outrage as they did with Perry, whose case has not yet gone to trial. Republican Gov. Greg Abbott, who last held the attorney general job, issued only a brief statement that urged the justice system to play out.



Brady lawsuit transferred from Minnesota to New York court
Court Line | 2015/08/03 22:34


Tom Brady's lawsuit against the NFL in which he wants his four-game suspension overturned will be heard in New York instead of Minnesota.

Brady and the players' union filed their suit Wednesday in Minnesota. But the NFL already had filed papers Tuesday in New York, moments after announcing that Commissioner Roger Goodell upheld the suspension for Brady's involvement in the use of underinflated footballs in the AFC championship game.

U.S. District Judge Richard Kyle, based in Minnesota, ordered the transfer.

The judge wrote that he "sees little reason for this action to have been commenced in Minnesota at all."

He noted that Brady plays in Massachusetts, the union is headquartered in Washington and the NFL in New York, Kyle added that "the arbitration proceedings took place in New York and the award was issued in New York." Jeffrey Kessler, the lead attorney for Brady and the union, wasn't concerned about this game of musical witness chairs.


Federal report finds bias in St. Louis County family court
Court Watch | 2015/08/01 20:21

The U.S. Department of Justice released a report critical of the St. Louis County Family Court on Friday, finding that black youths are treated more harshly than whites, and juveniles are often deprived of constitutional rights. Though unrelated to the department's investigation in Ferguson, the new report again raises concern about racial discrimination and profiling in the St. Louis region.

The investigation from the Justice Department's Civil Rights Division was initiated in 2013 amid complaints that black youths were treated unfairly in the family court, which handles about 6,000 youth cases each year. Treatment of African-Americans in the region drew increased scrutiny last year after the fatal shooting of 18-year-old Michael Brown, who was black, by a white police officer in Ferguson. The 60-page report arrived just over a week before the anniversary of Brown's death, Aug. 9.

"In short, black children are subjected to harsher treatment because of their race," Assistant Attorney General Vanita Gupta wrote in a letter to Gov. Jay Nixon, St. Louis County Executive Steve Stenger and Family Court Administrative Judge Thea Sherry. She called the findings "serious and compelling."

Nixon called the report "deeply concerning." Though in St. Louis County, the court is supervised by the Missouri Supreme Court. "All Missourians have a right to a fair and equitable justice system, and our young people are no exception," Nixon said in a statement.

Stenger said he will urge the court "to work with the state of Missouri to fix the glaring problems identified by the Department of Justice."

The report said the Justice Department will seek to resolve complaints through negotiations, though litigation remains possible. Gupta said at a news conference that an initial meeting with family court officials was "cordial and cooperative."

The department is taking a similar tack as after a report released in March alleging racial bias and profiling by police and the municipal court in Ferguson. That report was begun following Brown's death, and negotiations between the DOJ and Ferguson officials are still going on.



Zimbabweans linked to illegal lion hunt appear in court
Legal News | 2015/07/29 19:49

Two Zimbabweans arrested for illegally hunting a protected lion named Cecil were in court on Wednesday as anger at the kill by an American dentist escalated.

"If, as has been reported, this dentist and his guides lured Cecil out of the park with food so as to shoot him on private property ... he needs to be extradited, charged, and, preferably, hanged," People for the Ethical Treatment of Animals said in a statement Wednesday. The statement, emailed to The Associated Press, came from Ingrid Newkirk, president of the animal rights organization.

Social media on the internet — for example on Twitter under #cecilthelion — were also filled with condemnation of the killing of the black-maned lion just outside Hwange National Park in Zimbabwe.

The Zimbabwean men — a professional hunter and a farm owner — are accused of helping Walter James Palmer hunt the lion. Zimbabwean police said they are looking for Palmer, who reportedly paid $50,000 to track and kill the animal.

During a nighttime hunt, the men tied a dead animal to their car to lure the lion out of a national park, said Johnny Rodrigues, chairman of the Zimbabwe Conservation Task Force. The American is believed to have shot it with a crossbow, injuring the animal. The wounded lion was found 40 hours later, and Palmer shot it dead with a gun, Rodrigues said.

Palmer, a dentist living in the Minneapolis suburb of Eden Prairie, said in a statement that he was unaware the lion was protected, relying on local guides to ensure a legal hunt.



Appeals court upholds California's shark fin ban
Court Line | 2015/07/29 19:47

A federal appeals court Monday dismissed a legal challenge to a California law banning the sale, distribution and possession of shark fins.

The legislation does not conflict with a 19th century law that gives federal officials authority to manage shark fishing off the California coast or significantly interfere with interstate commerce, the 9th U.S. Circuit Court of Appeals said.

The 2-1 ruling upheld a lower court decision tossing the lawsuit brought by the Chinatown Neighborhood Association and Asian Americans for Political Advancement, a political action committee.

The groups had argued that the ban — passed in 2011 — unfairly targeted the Chinese community, which considers shark fin soup a delicacy. Shark finning is the practice of removing the fins from a living shark, leaving the animal to die.

Joseph Breall, an attorney for the groups, said they were reviewing their options and had not yet decided whether to appeal. He said he was heartened by the dissenting opinion by Judge Stephen Reinhardt, who said the plaintiffs should have been allowed to amend their lawsuit.

The plaintiffs had argued on appeal that the shark fin law conflicted with the federal law intended to manage shark fishing off the California coast.

The majority in the 9th Circuit ruling, however, said the federal law has no requirement that a certain number of sharks be harvested, and even if it did, the California law still allowed sharks to be taken for purposes other than obtaining their fins.

The federal law, additionally, envisions a broad role for states in crafting fishery management plans, and, like California's ban, makes conservation paramount, the court said.



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