State Auditor Crit Luallen said Thursday she forwarded the report to law enforcement "because of the nature and complexity of the exam's findings."

Those findings included high pay for executives of the quasi-governmental organization that is primarily funded by public money, conflicts of interest in spending, undocumented credit card expenses and gifts from vendors, including admission to a Las Vegas strip club for three League staff members.

The audit team of state financial experts found 19 positions in the organization paid more than $100,000 — some far more, thanks to raises over the past seven years.

Auditors noted that the executive director's salary had risen since 2002 from $170,000 to $331,000, and that the deputy executive director's pay rose over the same period from $141,00 to $255,000. They also noted a raise that took the chief insurance services officer salary from $124,000 to nearly $239,000.

NORWALK, Conn. — Xerox Corp. said Monday that a pension fund hasdropped a lawsuit over provisions in the copier company's purchase ofAffiliated Computer Services Inc. that would have made it tough for abetter buyout offer to succeed.

Xerox said the plaintiffs, Cityof St. Clair Shores Police and Fire Retirement System in Michigan,ended the litigation after the copier company agreed to removeroadblocks to a superior offer for ACS.

Xerox agreed that if theACS board receives a better offer to its $5.6 billion cash-and-stockbid for ACS, the copier company will not require ACS Chairman DarwinDeason to vote his shares in favor of Xerox.

The previousagreement would have forced Deason to give half of his votes to supportthe Xerox bid. He controls a 44 percent of the votes at ACS.

Xerox also won't force ACS to hold a shareholders meeting to vote on the Xerox bid but instead end the merger if requested.

The lawsuit was filed in October in Dallas County, Texas. A separate shareholder class action lawsuit is pending in Delaware.

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A law firm active in Henderson and Las Vegas is suing the state over rules requiring licensing of non-attorney employees working on mortgage loan modifications.

Cogburn Law Offices LLC filed suit last week in Clark County District Court against the Department of Business and Industry, Division of Mortgage Lending.

Court records indicate the law firm won a temporary restraining order against the division on Friday. District Judge Valorie Vega also set a Friday hearing on Cogburn's request for a preliminary injunction, which would extend the restraining order while the issue is litigated.

The lawsuit was filed by attorney Terry Coffing of the firm Marquis & Aurbach.

Coffing said Monday that Cogburn Law Offices has not received any notification of enforcement action against it by the Mortgage Lending Division and that the restraining order should preserve the status quo until Friday's hearing.

Coffing said the State Bar of Nevada, which regulates the legal industry, has expressed concern over the rules and he hopes the bar intervenes in the case on Cogburn's side.

He said Jamie Cogburn, co-founder of the law firm, supports regulation of the loan modification industry to ensure consumers are not harmed by scam artists.

But the division's rules are too broad, including provisions attempting to regulate the practice of law, Coffing said.