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Court denies motion to stop Loughner medication
Legal Business | 2011/07/25 08:18
A federal court Friday night denied an emergency motion by defense lawyers to keep prison officials in Missouri from forcibly medicating the Tucson shooting rampage suspect with a psychotropic drug.

In a one-page ruling, judges from the 9th Circuit Court of Appeals also denied a request by Jared Lee Loughner's attorneys for daily reports about his condition at a federal prison facility in Springfield, Mo.

The judges said their denial is without prejudice to the defense seeking appropriate relief in the district court. The 9th Circuit had previously scheduled an Aug. 30 hearing in San Francisco on an appeal by Loughner's lawyers over forced medication. It wasn't immediately clear if that hearing will still be held.

Calls to lead Loughner attorney Judy Clarke for comment Friday night weren't immediately returned.

Federal prosecutors said in a filing earlier Friday that Loughner should remain medicated because he may be a danger to himself and his mental and physical condition was rapidly deteriorating.

Loughner's attorneys questioned Thursday whether the forced medication violates an earlier order by the 9th Circuit that forbid prison officials from involuntarily medicating Loughner as the court mulls an appeal on his behalf. They also said their client has been on 24-hour suicide watch.

U.S. Attorney for Arizona Dennis Burke wrote in his filing Friday that "despite being under suicide watch, Loughner's unmedicated behavior is endangering him and that no measure short of medication will protect him from himself more than temporarily because they do not address the mental state which underlies his self-destructive actions."


Iowa insurers get more time on new health law
Headline Legal News | 2011/07/25 08:17
Iowa insurance companies have been given more time to comply with a new federal rule designed to curb insurers' profits.

The regulation that went into effect this year calls for insurance companies to spend at least 80 percent of premiums on medical care and quality assurance. For employer plans covering more than 50 people, the requirement is 85 cents. Insurers that fall short of the mark are required to issue their customers a rebate.

The U.S. Department of Health and Human Services told the state on Friday that Iowa insurers will be given have to reach the 80 percent mark by 2013, but will be required to meet interim goals until then, the Des Moines Register reported.

The Iowa Insurance Division had requested extra time to comply with the law, citing fears that insurers would leave the state in droves. Six pulled out of Iowa after the law was passed.

Steve Larsen, director of HHS' Center for Consumer Information and Oversight, said in a letter to the state that implementing the law in Iowa in 2011 could cause turmoil in the insurance market. So, he laid out a timetable for compliance that calls for Iowa insurers to spend 67 percent of premiums on medical care this year, 75 percent in 2012 and 80 percent in 2013.

Iowa insurance commissioner Susan Voss said she wasn't displeased by the decision. The state had sought even more time for companies to comply, but, "I don't think we'll see companies exit as a result of this," Voss said.

Of those particularly hard-hit by the law are insurers who sell individual policies because those premiums are more volatile. Employers or large groups can negotiate for better premiums, and the risk in those plans are spread among the group.

There are 56 insurance companies in Iowa that offer individual policies. Seven of those account for 95 percent of the market, with Wellmark holding onto almost 84 percent. Wellmark spent 92 percent of premiums on care but none of the state's other top insurers met the 80 percent standard in 2010.

Federal regulators said that had the law gone into effect this year, Iowa consumers would have received $6.5 million in rebates over three years.


Court reverses conviction on online Obama threat
Court Watch | 2011/07/20 09:41
A federal appeals court on Tuesday overturned the conviction of a man who posted Internet messages threatening Barack Obama during his 2008 presidential campaign.

A divided three-judge panel of the 9th U.S. Circuit Court of Appeals ruled that Walter Bagdasarian's violent and racist screeds against Obama were "repugnant" but not criminal. The court also said it was obvious the San Diego man wasn't planning to attack the candidate and that the postings were protected by Bagdasarian's free speech rights.

Bagdasarian was convicted in 2009 of two felony counts of threatening a major presidential candidate.

Bagdasarian posted several messages to a Yahoo Finance message board in October 2008, including one that called Obama a racial epithet and another that said "he will have a 50 cal in the head soon" — a reference to a .50 caliber gun.

A retired Air Force officer forwarded the postings to the Secret Service. Yahoo provided Bagdasarian's subscriber information to investigators, who raided his house and seized six guns and a hard drive containing an email with similar sentiments.

Bagdasarian admitted posting the messages, but said he was drunk and joking.

He waived his right to a jury trial. District Judge Marilyn L. Huff found him guilty and sentenced him to 60-days in a half-way home.

But the appeals panel said no "reasonable person" could have taken seriously Bagdasarian's posts.


Ex-CEO convicted in scam at auto-chemical company
Court Watch | 2011/07/20 09:40
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.


Paralegal accused of stealing from law firm
Headline Legal News | 2011/07/20 09:40
Authorities say a South Florida paralegal stole hundreds of thousands of dollars from her Fort Lauderdale law firm.

Miami-Dade officials on Tuesday charged 53-year-old Brenda Wilcott-Kelly with more than 80 felonies, including grand theft and forging documents. Records show she's also took money from a lawyer who was on his deathbed.

Employees of Hermelee & Geffin were in court Tuesday as Judge Dennis Murphy set Wilcott-Kelly's bond at $116,000.

Defense attorney Morgan Cronin said his client is innocent.

According to the arrest affidavit, Wilcott-Kelly took $82,472 from the firm to pay off her husband's credit cards. She is also accused of stealing $31,050 from lawyer Steven A. Schultz, while he was in the hospital. Schultz leased space from the firm.


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