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Ex-CEO convicted in scam at auto-chemical company
Court Watch |
2011/07/20 09:40
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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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Defendant in 4 Calif. killings now wants lawyer
Court Watch |
2011/07/06 09:56
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The man charged with killing four Northern California women with matching first and last initials has asked for a court-appointed attorney to help him defend himself.
Seventy-seven-year-old Joseph Naso is currently acting as his own attorney. But he told a judge Wednesday his incarceration at the Marin County Jail has limited his ability to conduct legal research and has scared away attorneys who could help him.
He asked Judge Andrew Sweet to appoint an attorney to his case. Sweet is expected to continue hearing arguments about the request Thursday.
District Attorney Ed Berberian says Naso has enough money to hire his own attorney and doesn't need one appointed by the court.
Naso is accused of murdering four prostitutes in the 1970s and 1990s throughout Northern California. He has pleaded not guilty. |
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Citigroup ex-VP arrested in NYC on fraud charges
Court Watch |
2011/06/27 13:33
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A former Citigroup vice president embezzled $19.2 million from the bank in a one-man "inside job" involving a series of secret money transfers, federal prosecutors said Monday.
Gary Foster, 35, of Englewood Cliffs, N.J., surrendered Sunday at John F. Kennedy International Airport after arriving on a flight from Bangkok. He was released Tuesday on $800,000 bond after appearing in federal court in Brooklyn to face bank fraud charges carrying a maximum penalty of 30 years in prison.
Foster had been traveling in Southeast Asia when he received word of the case, defense attorney Isabelle Kirshner said after the court appearance.
"As soon as he became aware they were looking for him, he voluntarily contacted the FBI and arranged to return," Kirshner said.
Officials at Citigroup Inc. — where Foster was vice president of the treasury finance department until quitting in January — said in a statement that they were "outraged by the actions of this former employee" and hoped to see him "prosecuted to the full extent of the law."
Foster "used his knowledge of bank operations to commit the ultimate inside job," U.S. Attorney Loretta Lynch said in a statement.
According to a criminal complaint, Foster's department financed loans and processed wire transfers within Citigroup. From May 2009 through the end of last year, Foster siphoned funds from various Citigroup accounts, placed them in the bank's cash account and then wired the money into his private account at another bank in New York, the complaint alleged.
In one November 2010 transaction, Foster wired $3.9 million from a Citigroup fund in Baltimore to his New York account, the complaint says. That fraudulent transfer and seven others went undetected until a recent internal audit, it said. |
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Woman pleads guilty in border cash smuggling case
Court Watch |
2011/06/20 03:10
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A woman has pleaded guilty to attempting to smuggle more than $930,000 in cash across the Arizona border and into her native Mexico.
Federal prosecutors say 25-year-old Judith Angelica Ayala-Partida pleaded guilty Wednesday in U.S. District Court in Tucson to bulk cash smuggling.
She's scheduled to be sentenced Oct. 4.
Authorities say Ayala-Partida was driving a vehicle that was stopped last Nov. 16 at the port of entry in Nogales, Ariz.
She told U.S. Customs and Border Protection officers that she didn't have more than $10,000 to declare. But a currency-detecting dog alerted authorities to the driver's side quarter panel of the car and a search led to the discovery of 101 packages containing $937,188. |
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Texas teachers may get student criminal histories
Court Watch |
2011/06/12 19:10
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Texas is close to enacting a law that would provide teachers with detailed information about the criminal histories of their students, opening juvenile files that have always been confidential and are unavailable in most states.
The legislation, spurred by the fatal stabbing of a high school teacher in Tyler in 2009, is adding to a national debate over whether teacher safety should outweigh the rights of young offenders, who traditionally have moved through the juvenile justice system with their privacy protected.
The new disclosure rules were passed by legislators with little public attention last month. A spokeswoman for Gov. Rick Perry said the governor is "thoughtfully" reviewing the measure before deciding whether to sign it.
Many juvenile justice experts oppose the new disclosures, saying that they would undercut the purpose of youth corrections — allowing young people to move beyond early mistakes to lead normal lives. But many educators insist that teachers are in too much danger.
"The bottom line is protecting teachers," said Rep. Jerry Madden, a Republican from the Dallas suburb of Plano, who sponsored the legislation.
Texas law already gives schools more background information on students than most states permit. The new law would significantly expand the details released, including accounts of crimes committed. |
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