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Appeals court OKs convictions in college basketball scandal
Court Line | 2021/01/18 04:13

A federal appeals court in New York on Friday upheld convictions against a sports marketer, an aspiring agent and a financial adviser in a college basketball scandal that spoiled the careers of several coaches and left a stain on the integrity of college athletics.

The 2nd U.S. Circuit Court of Appeals in Manhattan said in its written decision that it was not adequate for the defendants to argue that their actions mirrored what was commonly done in college basketball programs and that their aim was to help universities, rather than harm.

“The ends, however, do not justify the means, and that others are engaging in improper behavior does not make it lawful,” the 2nd Circuit said in an opinion written by Judge Denny Chin.

The convictions grew from the 2017 arrests of 10 individuals in what authorities described as a conspiracy to pay bribes to the families of young players to ensure NBA-bound college basketball stars would pledge allegiance to certain agents and handlers or attend certain schools.

The appeal stemmed from the convictions of former Adidas executive James Gatto, business manager Christian Dawkins and amateur league director Merl Code. They were convicted of conspiracy to commit wire fraud for funneling money and recruits to Louisville and Kansas.

Dawkins and Code were convicted at a second trial on a single conspiracy count but acquitted of some other charges.

At trial, the men acknowledged that their actions violated NCAA rules and the official policies of the universities, but they also maintained that the universities quietly welcomed the secret payments as long as they could pretend they knew nothing of them.

Other defendants pleaded guilty to charges or cooperated with prosecutors rather than go to trial, including four former assistant basketball coaches who pleaded guilty to bribery conspiracy. Prison sentences in the case were relatively short.

In ruling, the three-judge appeals panel noted that the defendants argued that they should not have been convicted because they did not have fraudulent intent since their scheme was designed to help the schools recruit top-tier players.

Circuit Judge Gerard E. Lynch offered a partial dissent, saying he would have rejected some charges on grounds that evidence of some phone calls the defendants wanted to show jurors was unjustly disqualified.


Trump plan to curb drug costs dealt setback in court
Court Line | 2020/12/24 11:51

A late-term maneuver by President Donald Trump to use lower drug prices paid overseas to limit some of Medicare’s own costs suffered a legal setback Wednesday that appears likely to keep the policy from taking effect before the president leaves office.

U.S. District Judge Catherine C. Blake in Baltimore issued a nationwide injunction that prevents the Centers for Medicare and Medicaid Services, or CMS, from carrying out the so-called “most favored nations” rule as scheduled on Jan. 1. The judge wrote in her temporary order that CMS had failed to follow required procedures for notice and comment before imposing such sweeping changes.

The Trump regulation would tie what Medicare pays for certain drugs administered in a doctor’s office to the lowest price paid among a group of economically advanced countries. It would apply to 50 medications that account for the highest spending under Medicare’s “Part B” benefit for outpatient care.

That group includes cancer drugs and other medications delivered by infusion or injection. Trump announced his new policy at the White House before the Thanksgiving holiday, saying, “the drug companies don’t like me too much. But we had to do it.”

A coalition of groups including the Association of Community Cancer Centers and the Pharmaceutical Research and Manufacturers of American quickly sued to block the rule. Some opponents have likened the Trump policy to a form of socialist price controls.

Blake wrote that the plaintiffs had established a reasonable likelihood their arguments accusing the administration of cutting corners in a rush to regulate would carry the day in a trial. Federal law says that government agencies must provide adequate opportunity for affected parties to comment on proposed regulations. The administration had sought to use emergency authority as a work-around.

The case is hardly trivial, the judge said. “This case deals with a regulation that would for the first time implement the use of a price control mechanism not provided for by Congress,” Blake wrote.

The Health and Human Services department said it is reviewing the ruling, and had no immediate comment.

Trump came into office accusing drug companies of “getting away with murder” and promising to slash costs for American patients. But his administration was unable to drive major drug pricing legislation through Congress.

Even if the Trump rule is ultimately blocked, the idea of using international prices to lower costs for Americans is very much alive. It’s at the heart of House Speaker Nancy Pelosi’s legislation to empower Medicare to negotiate drug prices. And President-elect Joe Biden also supports the approach.

Blake was nominated to be a U.S. district judge by former Democratic President Bill Clinton.


Judge Calls Trump Request in Wisconsin Lawsuit 'Bizarre'
Court Line | 2020/12/05 20:39

A judge hearing President Donald Trump's federal lawsuit seeking to overturn Democrat Joe Biden's win in Wisconsin said Friday that the president's request to “remand” the case to the GOP-controlled Legislature to pick new electors was “bizarre.”

The federal case is one of two Trump has in Wisconsin making similar arguments. He filed another one in state court, which the Wisconsin Supreme Court on Thursday refused to hear before it first goes through lower courts.

Hearings on both lawsuits were scheduled for Thursday, with the judges noting the importance of resolving the legal battles before the Electoral College meets on Dec. 14. Trump, who argues that hundreds of thousands of absentee ballots cast in accordance with state guidelines were illegal, wants a federal judge to give the Republican-controlled Legislature the power to determine who won the election.

“It’s a request for pretty remarkable declaratory relief," said U.S. District Judge Brett Ludwig during a conference call to set deadlines and a hearing date. Ludwig, who said it was “an unusual case, obviously,” also cast doubt on whether a federal court should be considering it at all.

“I have a very, very hard time seeing how this is justiciable in the federal court,” Ludwig, a Trump appointee, said. “The request to remand this case to the Legislature almost strikes me as bizarre.”

The judge questioned why Trump wasn't going directly to the Legislature if he wants lawmakers to get involved with naming electors. Bill Bock, the Trump campaign attorney in the federal lawsuit, said Trump needed the court to rule that the election was “invalid" so the Legislature could get involved. He also said that the term “remand,” which is typically used to describe when one court sends a case to a lower court, was “inartful.”

Republican Assembly Majority Leader Jim Steineke cast serious doubt in the week on whether the Legislature might change the state's electors from Biden to Trump backers. Steineke tweeted a clip of actor Dana Carvey playing President George H.W. Bush saying, “Not gonna do it.”

In his state lawsuit, Trump is seeking to disqualify 221,000 ballots he claims were cast illegally. Judge Stephen Simanek, who is hearing that case after the Wisconsin Supreme Court refused to take it initially, said Friday he would rule from the bench following next week's hearing that's scheduled to start hours after the one in federal court.

The high court also declined Friday to hear a lawsuit brought by Wisconsin Voters Alliance over Trump's loss. Two others filed by Trump allies — one in federal court and one in state court — remain. Trump has lost multiple lawsuits in other battleground states as part of a longshot effort to overturn Biden's victory. Even if he were to prevail in Wisconsin, the state's 10 Electoral College votes would not be enough to hand him reelection.


Court weighs challenge to Colorado discrimination law
Court Line | 2020/11/17 08:52

A Colorado web designer should not have to create wedding websites for same-sex couples under the state's anti-discrimination law because it would amount to forced speech that violates her religious beliefs, a lawyer told an appeals court Monday.

Kristen Waggoner, a lawyer for Alliance Defending Freedom, told a three-judge panel of the 10th U.S. Circuit Court of Appeals in Denver that the issue for designer Lorie Smith, who is a Christian, is the message and not the customer.

“No one should be forced to express a message that violates their convictions,” Waggoner said during the virtual hearing. She is trying to revive a lawsuit challenging the state’s law, which her group also targeted on behalf of Colorado baker Jack Phillips in a case decided in 2018 by the U.S. Supreme Court.

The high court decided the Colorado Civil Rights Commission had acted with anti-religious bias against Phillips after he refused to bake a cake for two men who were getting married. But it did not rule on the larger issue of whether a business can invoke religious objections to refuse service to LGBT people.

On Monday, Chief Judge Timothy Tymkovich asked what Smith would do if she was approached by a straight wedding planner asking her to create four heterosexual wedding sites and one for a same-sex wedding. Waggoner said Smith would not take that job.

Colorado Solicitor General Eric Olson questioned whether Smith should even be allowed to challenge the law since she has not started offering wedding websites yet.

But if she did, he said her argument would mean she would refuse to create a website for a hypothetical same-sex couple named Alex and Taylor but agree to make the same one for an opposite sex couple with the same names. He said that would be discrimination under the Colorado Anti-Discrimination Act, which prohibits discrimination on the basis of sexual orientation.


US to get 9th justice with Dems powerless to block Barrett
Court Line | 2020/10/27 23:33

A divided Senate is set to confirm Amy Coney Barrett to the Supreme Court, giving the country a ninth justice Monday as Republicans overpower Democratic opposition to secure President Donald Trump’s nominee the week before Election Day.

Democratic leaders asked Vice President Mike Pence to stay away from presiding over her Senate confirmation due to potential health risks after his aides tested positive for COVID-19. But although Pence isn’t needed to break a tie, the vote would present a dramatic opportunity for him to preside over confirmation of Trump’s third Supreme Court justice.

Senate Democratic leader Chuck Schumer and his leadership team wrote that not only would Pence’s presence violate Centers for Disease Control and Prevention guidelines, “it would also be a violation of common decency and courtesy.”

But Senate Republicans control the chamber and Barrett’s confirmation isn’t in doubt.  Senate Majority Leader Mitch McConnell scoffed at the “apocalyptic” warnings from critics that the judicial branch was becoming mired in partisan politics as he defended its transformation under his watch.

“This is something to be really proud of and feel good about,” the Republican leader said Sunday during a rare weekend session.

McConnell said that unlike legislative actions that can be undone by new presidents or lawmakers, “they won’t be able to do much about this for a long time to come.”

Schumer, of New York, said the Trump administration’s drive to install Barrett during the coronavirus crisis shows “the Republican Party is willing to ignore the pandemic in order to rush this nominee forward.”

To underscore the potential health risks, Schumer urged his colleagues Sunday not to linger in the chamber but “cast your votes quickly and from a safe distance.” Some GOP senators tested positive for the coronavirus following a Rose Garden event with Trump to announce Barrett’s nomination, but they have since said they have been cleared by their doctors from quarantine. Pence’s office said the vice president tested negative for the virus on Monday.

The confirmation was expected to be the first of a Supreme Court nominee so close to a presidential election. It’s also one of the first high court nominees in recent memory receiving no support from the minority party, a pivot from not long ago when a president’s picks often won wide support.


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