Legislature’s lower-profile laws change lives, too

By Anna M. Tinsley

atinsley@star-telegram.com

GREAT FALLS, Mont. — Landowners in the path of a proposed power line in northwestern Montana have filed a lawsuit against the state and a utility company targeting a business-backed eminent domain law that went into effect earlier this month.
The 11 plaintiffs in Pondera and Teton counties in the lawsuit filed Friday in Teton County District Court contend the new law is unconstitutional and will harm farming operations.
The group is asking the court to void the law that allows utilities to take private property for a public good if they cannot reach an agreement over compensation. The law ensures private utilities can continue major projects but deals a blow to landowners fighting business developments.
Tonbridge Power Inc. wants to build the 214-mile Montana Alberta Tie Line between Alberta and Great Falls. The new law will likely let the company resolve extended negotiations with landowners.
Montana lawmakers started creating the new law after a judge last year denied Tonbridge the right to eminent domain while the company was building the power line, causing concerns among power and telecommunications industries that infrastructure projects could be easily halted in Montana.
Earlier this year, Montana lawmakers passed House Bill 198 and Gov. Brian Schweitzer allowed it to become law, saying it was imbalanced and left landowners at a disadvantage but it would protect the state’s economy.
The new law gives eminent domain power to companies that receive permits under the Major Facilities Siting Act after September 2008.
The group seeking to void the law contends it is special legislation for Tonbridge Power, and allows the company to condemn land retroactively.
The group also said it unfairly singles out rural citizens because Montana lawmakers in 2007 passed a law prohibiting condemning private property for economic reasons in urban areas.
And the group said the public process leading to the building certificate in 2007 for the power line didn’t empower Tonbridge to condemn private property. The group contends that means the public process needed for such an outcome wasn’t followed, making the law invalid.
“We got a raw deal over at the Legislature,” Bruce Maurer of Maurer Farms, the lead plaintiff, told the Great Falls Tribune. “It treats an urban guy different from a rural guy, and it’s not supposed to be legal to pass a law for one individual.”
A phone call from The Associated Press to the state attorney general’s office seeking comment went unanswered Saturday.
Tonbridge earlier this week said it planned to commission a six-month study from independent experts to improve relations with landowners.

Legislature’s lower-profile laws change lives, too

By Anna M. Tinsley

atinsley@star-telegram.com

GREAT FALLS, Mont. — Landowners in the path of a proposed power line in northwestern Montana have filed a lawsuit against the state and a utility company targeting a business-backed eminent domain law that went into effect earlier this month.
The 11 plaintiffs in Pondera and Teton counties in the lawsuit filed Friday in Teton County District Court contend the new law is unconstitutional and will harm farming operations.
The group is asking the court to void the law that allows utilities to take private property for a public good if they cannot reach an agreement over compensation. The law ensures private utilities can continue major projects but deals a blow to landowners fighting business developments.
Tonbridge Power Inc. wants to build the 214-mile Montana Alberta Tie Line between Alberta and Great Falls. The new law will likely let the company resolve extended negotiations with landowners.
Montana lawmakers started creating the new law after a judge last year denied Tonbridge the right to eminent domain while the company was building the power line, causing concerns among power and telecommunications industries that infrastructure projects could be easily halted in Montana.
Earlier this year, Montana lawmakers passed House Bill 198 and Gov. Brian Schweitzer allowed it to become law, saying it was imbalanced and left landowners at a disadvantage but it would protect the state’s economy.
The new law gives eminent domain power to companies that receive permits under the Major Facilities Siting Act after September 2008.
The group seeking to void the law contends it is special legislation for Tonbridge Power, and allows the company to condemn land retroactively.
The group also said it unfairly singles out rural citizens because Montana lawmakers in 2007 passed a law prohibiting condemning private property for economic reasons in urban areas.
And the group said the public process leading to the building certificate in 2007 for the power line didn’t empower Tonbridge to condemn private property. The group contends that means the public process needed for such an outcome wasn’t followed, making the law invalid.
“We got a raw deal over at the Legislature,” Bruce Maurer of Maurer Farms, the lead plaintiff, told the Great Falls Tribune. “It treats an urban guy different from a rural guy, and it’s not supposed to be legal to pass a law for one individual.”
A phone call from The Associated Press to the state attorney general’s office seeking comment went unanswered Saturday.
Tonbridge earlier this week said it planned to commission a six-month study from independent experts to improve relations with landowners.

FIA DG issued contempt notice

RAWALPINDI – An Anti-Terrorism Court (ATC) Judge Rana Nisar Ahmed Khan Saturday expressing deep concern over Federal Investigation Agency (FIA) for not submitting report regarding execution of non-bailable arrest warrants of former President General (r) Pervez Musharraf in Benazir Bhutto murder case and for changing the investigation officer, issued contempt of court notice to Director General FIA Malik Muhammad Iqbal.
The court also issued directions for DG FIA Malik Muhammad Iqbal to appear in court in person on the next date of hearing and explain his position. Court will again hear the case on May 30. During in-camera trial of BB murder case held at Adyala Jail, ATC No 3 Judge Rana Nisar Ahmed Khan scolded FIA for not presenting the progress report about non-bailable arrest warrants of former President General (r) Pervez Musharraf, who is in UK, before the court and for separating the IO Khalid Rasool from BB murder case interrogation. FIA Prosecutor Chaudhry Zulfiqar told the court that there was no further development regarding arrest warrants of accused Pervez Musharraf in BB assassination case that was why FIA could not present the report before the court. He informed the court that IO Khalid Rasool was transferred because of his engagements in interrogation of Haj scam.

FIA DG issued contempt notice

RAWALPINDI – An Anti-Terrorism Court (ATC) Judge Rana Nisar Ahmed Khan Saturday expressing deep concern over Federal Investigation Agency (FIA) for not submitting report regarding execution of non-bailable arrest warrants of former President General (r) Pervez Musharraf in Benazir Bhutto murder case and for changing the investigation officer, issued contempt of court notice to Director General FIA Malik Muhammad Iqbal.
The court also issued directions for DG FIA Malik Muhammad Iqbal to appear in court in person on the next date of hearing and explain his position. Court will again hear the case on May 30. During in-camera trial of BB murder case held at Adyala Jail, ATC No 3 Judge Rana Nisar Ahmed Khan scolded FIA for not presenting the progress report about non-bailable arrest warrants of former President General (r) Pervez Musharraf, who is in UK, before the court and for separating the IO Khalid Rasool from BB murder case interrogation. FIA Prosecutor Chaudhry Zulfiqar told the court that there was no further development regarding arrest warrants of accused Pervez Musharraf in BB assassination case that was why FIA could not present the report before the court. He informed the court that IO Khalid Rasool was transferred because of his engagements in interrogation of Haj scam.

Justice Kakar leads Quetta tragedy probe

QUETTA – Balochistan government on Saturday appointed Balochistan High Court judge, Justice Muhammad Hashim Kakar to lead a judicial tribunal to investigate Kharotabad incident.
Provincial Home Secretary Zafarullah Baloch told newsmen that after approval of Chief Minister Balochistan Nawab Muhammad Aslam Raisani, the notification of constituting a judicial tribunal headed by Justice Muhammad Hashim Kakar had been issued.
He said that tribunal would investigate Kharotabad incident and after examining its all aspects would prepare its report which would be presented to the provincial government. In the light of report action would be taken against responsible, he added.
Zafarullah said the tribunal would present its report within two weeks, however, if more time was required it could be given.
When asked about handing over the bodies of the Chechens, he said no one had so far requested for the same.
Five suspected Chechen, including three women were killed by firing of police and Frontier Corps in Kharotabad, in the outskirts of Quetta on May 17. Many questions were raised by media and residents of the area following their killings, upon which provincial government decided to constitute a judicial tribunal to investigate the incident.
Meanwhile, the bomb disposal squad of Balochistan Police declared Saturday that no suicide jacket or explosives were recovered from the bodies of all five Chechens, three of them women, killed in firing by police and Frontier Corps on May 17.
Submitting its report to the Inspector General of Balochistan here on Saturday BDS claimed that two safety levers of hand grenade were found close to the bodies and one of the two men was wearing the ring carrying safety pin of hand grenade.
The report did not mention the site of the blast caused by hand grenade or any splinter of the hand grenade. However, it declared that when the three-member team of bomb disposal squad reached the site, it found five bodies lying close to FC checkpost in the middle of the round about who were killed by FC and police personnel.

Asma for increasing high court judges’ strength

KARACHI: Supreme Court Bar Association (SCBA) President Asma Jehangir has stressed the need for appointment of more judges at the high court level to expedite the disposal of pending cases. “There is an urgent need to increase the number of judges in the higher courts; otherwise, people will resort to the old Panchayat System for justice,” she said while addressing the “Meet the Press” programme of Karachi Press Club (KPC) here on Saturday.
Referring to her whirlwind visit of various cities of the country in recent days and interaction with the legal fraternity, she said that democracy has created a sense of security among the people who were much aware of their rights today as compared to the past.
“Gone are the days of the dictators who were catalyst to widen the gap between the rich and the poor,” she remarked.
The SCBA president said the present judicial system was fully independent and the masses have reposed their full confidence in the higher judiciary.
Earlier, KPC President Tahir Hasan Khan and Secretary Moosa Kaleem also spoke on the occasion and highlighted the sacrifices made by journalists for the cause of democracy and human rights.

Justice Kakar leads Quetta tragedy probe

QUETTA – Balochistan government on Saturday appointed Balochistan High Court judge, Justice Muhammad Hashim Kakar to lead a judicial tribunal to investigate Kharotabad incident.
Provincial Home Secretary Zafarullah Baloch told newsmen that after approval of Chief Minister Balochistan Nawab Muhammad Aslam Raisani, the notification of constituting a judicial tribunal headed by Justice Muhammad Hashim Kakar had been issued.
He said that tribunal would investigate Kharotabad incident and after examining its all aspects would prepare its report which would be presented to the provincial government. In the light of report action would be taken against responsible, he added.
Zafarullah said the tribunal would present its report within two weeks, however, if more time was required it could be given.
When asked about handing over the bodies of the Chechens, he said no one had so far requested for the same.
Five suspected Chechen, including three women were killed by firing of police and Frontier Corps in Kharotabad, in the outskirts of Quetta on May 17. Many questions were raised by media and residents of the area following their killings, upon which provincial government decided to constitute a judicial tribunal to investigate the incident.
Meanwhile, the bomb disposal squad of Balochistan Police declared Saturday that no suicide jacket or explosives were recovered from the bodies of all five Chechens, three of them women, killed in firing by police and Frontier Corps on May 17.
Submitting its report to the Inspector General of Balochistan here on Saturday BDS claimed that two safety levers of hand grenade were found close to the bodies and one of the two men was wearing the ring carrying safety pin of hand grenade.
The report did not mention the site of the blast caused by hand grenade or any splinter of the hand grenade. However, it declared that when the three-member team of bomb disposal squad reached the site, it found five bodies lying close to FC checkpost in the middle of the round about who were killed by FC and police personnel.

Asma for increasing high court judges’ strength

KARACHI: Supreme Court Bar Association (SCBA) President Asma Jehangir has stressed the need for appointment of more judges at the high court level to expedite the disposal of pending cases. “There is an urgent need to increase the number of judges in the higher courts; otherwise, people will resort to the old Panchayat System for justice,” she said while addressing the “Meet the Press” programme of Karachi Press Club (KPC) here on Saturday.
Referring to her whirlwind visit of various cities of the country in recent days and interaction with the legal fraternity, she said that democracy has created a sense of security among the people who were much aware of their rights today as compared to the past.
“Gone are the days of the dictators who were catalyst to widen the gap between the rich and the poor,” she remarked.
The SCBA president said the present judicial system was fully independent and the masses have reposed their full confidence in the higher judiciary.
Earlier, KPC President Tahir Hasan Khan and Secretary Moosa Kaleem also spoke on the occasion and highlighted the sacrifices made by journalists for the cause of democracy and human rights.

Writer facers court over naming injunction footballer on Twitter

A JOURNALIST who is a regular on TV could face jail after naming on Twitter the Premier League love rat at the centre of the Imogen Thomas case.
Lawyers acting for the player want Attorney General Dominic Grieve to consider prosecuting the high-profile writer for contempt of court.
If he is prosecuted and found guilty, he faces a jail sentence of up to two years.


In a hearing this week ­the lawyers told Mr Justice ­Tugendhat that the writer had breached the gagging order. in the case. The judge ­accepted their plea to report the matter to the ­Attorney General for consideration.
The journalist – who also cannot be named – said yesterday: “Because it would be contempt of court I think it would be stupid to say anything at all.”
Meanwhile, it was revealed yesterday that former Royal Bank of Scotland chief Fred “The Shred” Goodwin – who also took out a privacy injunction – gave his high-flying mistress a lucrative promotion in the run-up to the bank’s disastrous collapse.

Writer facers court over naming injunction footballer on Twitter

A JOURNALIST who is a regular on TV could face jail after naming on Twitter the Premier League love rat at the centre of the Imogen Thomas case.
Lawyers acting for the player want Attorney General Dominic Grieve to consider prosecuting the high-profile writer for contempt of court.
If he is prosecuted and found guilty, he faces a jail sentence of up to two years.


In a hearing this week ­the lawyers told Mr Justice ­Tugendhat that the writer had breached the gagging order. in the case. The judge ­accepted their plea to report the matter to the ­Attorney General for consideration.
The journalist – who also cannot be named – said yesterday: “Because it would be contempt of court I think it would be stupid to say anything at all.”
Meanwhile, it was revealed yesterday that former Royal Bank of Scotland chief Fred “The Shred” Goodwin – who also took out a privacy injunction – gave his high-flying mistress a lucrative promotion in the run-up to the bank’s disastrous collapse.

Mixed reactions trail Okereke-Onyiuke court judgment

Some market
operators have expressed divergent views on the judgment of a Federal
High Court in Lagos last Friday which nullified the removal of the
former director general of the Nigerian Stock Exchange (NSE), Ndi
Okereke-Onyiuke, by the Securities and Exchange Commission (SEC).
Justice Mohammed
Idris who ruled over the case also awarded the sum of N500 million to
Mrs. Okereke-Onyiuke as exemplary and aggravated damages.
The former Exchange boss had challenged her removal as the DG of the NSE by SEC and demanded N3 billion as damages.
Mrs.
Okereke-Onyiuke was removed on August 5, 2010 by Arunma Oteh, the
director general of the Securities and Exchange Commission, over
allegations of financial impropriety. The capital market regulatory
agency also removed Aliko Dangote as the president of the NSE during
the period.
Her removal ushered
in an interim administrator for the Exchange, Emmanuel Ikazoboh, and
after eight months brought in Oscar Onyema as the new chief executive
officer of the NSE.
While some
operators applauded the court rulings, others believe that the judgment
should be appealed as some of the investigations of the yet-to-be
officially released forensic report of the NSE under Mrs.
Okereke-Onyiuke revealed that her administration mismanaged funds.
Boniface Okezie,
the national chairman of the Progressive Shareholders Association of
Nigeria, said the court judgment has “really vindicated her (Mrs.
Okereke-Onyiuke) and proven that SEC’s action was illegal.”
Mr. Okezie said the
judge ruled in her favour because the Exchange’s Commission did not
follow due process before taking action, adding that “she was not given
any fair hearing.”
For David Amaechi,
an executive member of the Shareholders Association of Nigeria, the
decision of the court “is good and a proof that people’s fundamental
human rights should not be violated in any given circumstances.”
“(Ms.) Oteh should
have suspended her following SEC’s discovery and investigated the
matter thoroughly before sacking her. But because she (Ms. Oteh) wanted
to show she has power, SEC went ahead to removed her without fair
hearing,” Mr. Amaechi said, adding that people’s right must always be
respected.
Meanwhile, a
stockbroker, who spoke under the condition of anonymity, said, “I
believe SEC really understood the crisis in the market before the
intervention. Today, foreign investors can now trade in our market
because the system is now transparent. This court judgment must be
appealed so that the true face of the market during her tenure has
shown in the forensic report can be revealed to the public.”
Breach of law
Delivering his
judgment last Friday, Justice Muhammed Idris held that
Okereke-Onyiuke’s removal was “irrational and hasty,” adding that “SEC
acted in breach of Section 308 of the Investment and Security Act and,
therefore, the removal of the plaintiff based on that section is a
nullity.”
The judge held that
the plaintiff’s right to fair hearing was breached, adding that “it is
ridiculous that SEC removed the plaintiff within 24 hours after
directing the NSE to remove her.”
The judge also
dismissed SEC’s objection that the court lacked jurisdiction to
entertain the suit, stressing that the Federal High Court had an
exclusive jurisdiction over the case.
“The plaintiff is
right to have commenced the suit by way of originating summons as
provided by Order 3 Rule 6 of the Federal High Court rules, thus
overruling the objection of SEC on the issue,” he said.
He ruled that Mrs
Okereke-Onyiuke’s removal was not in accordance with the rule of law
and should not be condoned in a democratic dispensation. He, therefore,
declared the removal as “illegal, unlawful, null and void.” Meanwhile
SEC’s spokesperson,
Lanre Oloyi, the
Exchange Commission’s spokesperson, said it would appeal the judgment,
adding that the court did not consider the allegations of financial
mismanagement levelled against Mrs. Okereke-Onyiuke.
“In August 2010,
SEC exercised its statutory powers of intervention and took regulatory
action to protect the NSE, the interest of the investing public and the
Nigerian economy as a whole. The judgment read in court this morning
(last Friday) questions procedural aspects of SEC’s regulatory action.
SEC disagrees and intends immediately to file an appeal against the
decision,” the Exchange’s Commission said in a statement on Friday.
The statement noted
that “the judgment makes no comment whatsoever about the serious
allegations of misconduct, fraud and breach of trust made against the
former Director-General of the NSE, Mrs. Ndi Okereke-Onyiuke, and some
of her erstwhile colleagues. It is also important to note that Mrs. Ndi
Okereke-Onyiuke has not attempted, in any forum, and in any manner
whatsoever, to answer those allegations on their merits.”
Forensic report
Some of the
revelations in the yet-to-be officially released report on the
investigation of the NSE under the leadership of Mrs. Okereke-Onyiuke
showed that in 2008, the Exchange spent N186 million to buy Rolex
watches for long serving employees.
The report, a
product of investigations by KPMG, an audit firm, and Aluko Oyebode
Co., a legal firm, revealed that “at the beginning of 2008, the
NSE expended the sum of N45 million in purchasing 64 Rolex watches for
presentation to employees who had served the NSE for 10 years.”
The report also
noted that “later in the same year, Candy Floss Limited (a company
owned by Yinka Idowu, former head of NSE’s corporate affairs
department), was given N95 million for an additional purchase of 91
Rolex watches, and subsequently, after the award ceremony, another 10
Rolex watches at the cost of N46 million were purchased.”
Meanwhile, the
investigators said they observed that the award ceremony document
showed that only 73 out of the 165 Rolex watches purchased were
actually presented to the awardees, meaning that 92 Rolex watches
valued at N99.5 million were unaccounted for.
While the fact that Articles 52 of the NSE Employee Handbook for
Management and Senior Staff, as well as Article 55 of the Employee
Handbook for Junior Staff limits the value of gifts/cash that can be
given to employees for the long service award, the auditors said, “We
observed that the gifts awarded/presented far exceeded the value stated
in these handbooks, “adding that “these Articles further stated that
these awards should be presented to only members of staff, but we
observed that former members of staff were also given awards.”

LHC benches for next week

LAHORE – The Lahore High Court chief justice Saturday constituted 10 division benches, seven Special Benches to hear the family related matters and 22 single benches for hearing cases at the LHC Principal Seat during next week.
The division benches (DBs) include: DB-I Chief Justice Ijaz Ahmed Chaudhry and Justice Mazhar Iqbal Sidhu, DB-II Justice Sh Azmat Saeed and Justice Ameer Bhatti, DB-III Justice Umar Ata Bandial and Justice Asad Munir, DB-IV Justice Nasir Saeed Sheikh and Justice Syed Kazim Raza Shamsi, DB-V Justice Manzoor Ahmad Malik and Justice Muhammad Anwaarul Haq, DB-VI Justice Sardar Tariq Masood and Justice Malik Shahzad Ahmad Khan, DB-VII Justice Ijazul Ahsan and Justice Shahid Saeed, DB-VIII Justice Mansoor Ali Shah and Justice Abdul Waheed Khan, DB-IX Justice Sheikh Ahmad Farooq and Justice Qasim Khan, DB-X Justice Shahid Hameed Dar and Justice Altaf Ibrahim Qureshi.
The special benches include Justice Nasir Saeed Sheikh, Justice Ch Shahid Saeed, Justice Mazhar Iqbal Sidhu, Justice Asad Munir, Justice Mamoon Rashid Sheikh, Justice Mehmood Maqbool Bajwa, and Justice Syed Kazim Raza Shamsi.
The judges on the Single Benches to hear all type of cases are: Chief Justice Ijaz Ahmed Chaudhry, Justice Sh Azmat Saeed, Justice Umar Ata Bandial, Justice Nasir Saeed Sheikh, Justice Manzoor Ahmad Mailk, Justice Sardar Tariq Masood, Justice Ijaz ul Ahsan, Justice Syed Mansoor Ali Shah, Justice Sheikh Ahmad Farooq, Justice Ch Shahid Saeed and Justice Shahid Hameed Dar.

Mixed reactions trail Okereke-Onyiuke court judgment

Some market
operators have expressed divergent views on the judgment of a Federal
High Court in Lagos last Friday which nullified the removal of the
former director general of the Nigerian Stock Exchange (NSE), Ndi
Okereke-Onyiuke, by the Securities and Exchange Commission (SEC).
Justice Mohammed
Idris who ruled over the case also awarded the sum of N500 million to
Mrs. Okereke-Onyiuke as exemplary and aggravated damages.
The former Exchange boss had challenged her removal as the DG of the NSE by SEC and demanded N3 billion as damages.
Mrs.
Okereke-Onyiuke was removed on August 5, 2010 by Arunma Oteh, the
director general of the Securities and Exchange Commission, over
allegations of financial impropriety. The capital market regulatory
agency also removed Aliko Dangote as the president of the NSE during
the period.
Her removal ushered
in an interim administrator for the Exchange, Emmanuel Ikazoboh, and
after eight months brought in Oscar Onyema as the new chief executive
officer of the NSE.
While some
operators applauded the court rulings, others believe that the judgment
should be appealed as some of the investigations of the yet-to-be
officially released forensic report of the NSE under Mrs.
Okereke-Onyiuke revealed that her administration mismanaged funds.
Boniface Okezie,
the national chairman of the Progressive Shareholders Association of
Nigeria, said the court judgment has “really vindicated her (Mrs.
Okereke-Onyiuke) and proven that SEC’s action was illegal.”
Mr. Okezie said the
judge ruled in her favour because the Exchange’s Commission did not
follow due process before taking action, adding that “she was not given
any fair hearing.”
For David Amaechi,
an executive member of the Shareholders Association of Nigeria, the
decision of the court “is good and a proof that people’s fundamental
human rights should not be violated in any given circumstances.”
“(Ms.) Oteh should
have suspended her following SEC’s discovery and investigated the
matter thoroughly before sacking her. But because she (Ms. Oteh) wanted
to show she has power, SEC went ahead to removed her without fair
hearing,” Mr. Amaechi said, adding that people’s right must always be
respected.
Meanwhile, a
stockbroker, who spoke under the condition of anonymity, said, “I
believe SEC really understood the crisis in the market before the
intervention. Today, foreign investors can now trade in our market
because the system is now transparent. This court judgment must be
appealed so that the true face of the market during her tenure has
shown in the forensic report can be revealed to the public.”
Breach of law
Delivering his
judgment last Friday, Justice Muhammed Idris held that
Okereke-Onyiuke’s removal was “irrational and hasty,” adding that “SEC
acted in breach of Section 308 of the Investment and Security Act and,
therefore, the removal of the plaintiff based on that section is a
nullity.”
The judge held that
the plaintiff’s right to fair hearing was breached, adding that “it is
ridiculous that SEC removed the plaintiff within 24 hours after
directing the NSE to remove her.”
The judge also
dismissed SEC’s objection that the court lacked jurisdiction to
entertain the suit, stressing that the Federal High Court had an
exclusive jurisdiction over the case.
“The plaintiff is
right to have commenced the suit by way of originating summons as
provided by Order 3 Rule 6 of the Federal High Court rules, thus
overruling the objection of SEC on the issue,” he said.
He ruled that Mrs
Okereke-Onyiuke’s removal was not in accordance with the rule of law
and should not be condoned in a democratic dispensation. He, therefore,
declared the removal as “illegal, unlawful, null and void.” Meanwhile
SEC’s spokesperson,
Lanre Oloyi, the
Exchange Commission’s spokesperson, said it would appeal the judgment,
adding that the court did not consider the allegations of financial
mismanagement levelled against Mrs. Okereke-Onyiuke.
“In August 2010,
SEC exercised its statutory powers of intervention and took regulatory
action to protect the NSE, the interest of the investing public and the
Nigerian economy as a whole. The judgment read in court this morning
(last Friday) questions procedural aspects of SEC’s regulatory action.
SEC disagrees and intends immediately to file an appeal against the
decision,” the Exchange’s Commission said in a statement on Friday.
The statement noted
that “the judgment makes no comment whatsoever about the serious
allegations of misconduct, fraud and breach of trust made against the
former Director-General of the NSE, Mrs. Ndi Okereke-Onyiuke, and some
of her erstwhile colleagues. It is also important to note that Mrs. Ndi
Okereke-Onyiuke has not attempted, in any forum, and in any manner
whatsoever, to answer those allegations on their merits.”
Forensic report
Some of the
revelations in the yet-to-be officially released report on the
investigation of the NSE under the leadership of Mrs. Okereke-Onyiuke
showed that in 2008, the Exchange spent N186 million to buy Rolex
watches for long serving employees.
The report, a
product of investigations by KPMG, an audit firm, and Aluko Oyebode
Co., a legal firm, revealed that “at the beginning of 2008, the
NSE expended the sum of N45 million in purchasing 64 Rolex watches for
presentation to employees who had served the NSE for 10 years.”
The report also
noted that “later in the same year, Candy Floss Limited (a company
owned by Yinka Idowu, former head of NSE’s corporate affairs
department), was given N95 million for an additional purchase of 91
Rolex watches, and subsequently, after the award ceremony, another 10
Rolex watches at the cost of N46 million were purchased.”
Meanwhile, the
investigators said they observed that the award ceremony document
showed that only 73 out of the 165 Rolex watches purchased were
actually presented to the awardees, meaning that 92 Rolex watches
valued at N99.5 million were unaccounted for.
While the fact that Articles 52 of the NSE Employee Handbook for
Management and Senior Staff, as well as Article 55 of the Employee
Handbook for Junior Staff limits the value of gifts/cash that can be
given to employees for the long service award, the auditors said, “We
observed that the gifts awarded/presented far exceeded the value stated
in these handbooks, “adding that “these Articles further stated that
these awards should be presented to only members of staff, but we
observed that former members of staff were also given awards.”

LHC benches for next week

LAHORE – The Lahore High Court chief justice Saturday constituted 10 division benches, seven Special Benches to hear the family related matters and 22 single benches for hearing cases at the LHC Principal Seat during next week.
The division benches (DBs) include: DB-I Chief Justice Ijaz Ahmed Chaudhry and Justice Mazhar Iqbal Sidhu, DB-II Justice Sh Azmat Saeed and Justice Ameer Bhatti, DB-III Justice Umar Ata Bandial and Justice Asad Munir, DB-IV Justice Nasir Saeed Sheikh and Justice Syed Kazim Raza Shamsi, DB-V Justice Manzoor Ahmad Malik and Justice Muhammad Anwaarul Haq, DB-VI Justice Sardar Tariq Masood and Justice Malik Shahzad Ahmad Khan, DB-VII Justice Ijazul Ahsan and Justice Shahid Saeed, DB-VIII Justice Mansoor Ali Shah and Justice Abdul Waheed Khan, DB-IX Justice Sheikh Ahmad Farooq and Justice Qasim Khan, DB-X Justice Shahid Hameed Dar and Justice Altaf Ibrahim Qureshi.
The special benches include Justice Nasir Saeed Sheikh, Justice Ch Shahid Saeed, Justice Mazhar Iqbal Sidhu, Justice Asad Munir, Justice Mamoon Rashid Sheikh, Justice Mehmood Maqbool Bajwa, and Justice Syed Kazim Raza Shamsi.
The judges on the Single Benches to hear all type of cases are: Chief Justice Ijaz Ahmed Chaudhry, Justice Sh Azmat Saeed, Justice Umar Ata Bandial, Justice Nasir Saeed Sheikh, Justice Manzoor Ahmad Mailk, Justice Sardar Tariq Masood, Justice Ijaz ul Ahsan, Justice Syed Mansoor Ali Shah, Justice Sheikh Ahmad Farooq, Justice Ch Shahid Saeed and Justice Shahid Hameed Dar.

Courts free to give justice uninfluenced by NICL case: SC

ISLAMABAD – A three-member Supreme Court bench, headed by Chief Justice Iftikhar Muhammad Chaudhry, has observed that courts where Moonis Elahi’s case is being heard are entirely independent to proceed with the matter in accordance with the law and without being influenced in any manner from the NICL case proceedings in the apex court.
The bench passed this order on a petition filed by Pakistan Muslim League-Q President Senator Chaudhry Shujat Hussain.
SM Zafar, Wasim Sajjad and Dr Khalid Ranjha appeared in the case as his legal counsels.
Zafar as the senior counsel stated that on account of the pendency of the matter before the Supreme Court, Moonis Elahi was not getting the legal relief he was entitled for.
The bench in its written order observed that notwithstanding any controversy with regard to the interim or final status of the challan, the courts hearing the matter were entirely independent in their proceedings. The bench further observed that if the legal relief was sought for the counsel appearing on behalf of the petitioner would be free to raise any argument.

Courts free to give justice uninfluenced by NICL case: SC

ISLAMABAD – A three-member Supreme Court bench, headed by Chief Justice Iftikhar Muhammad Chaudhry, has observed that courts where Moonis Elahi’s case is being heard are entirely independent to proceed with the matter in accordance with the law and without being influenced in any manner from the NICL case proceedings in the apex court.
The bench passed this order on a petition filed by Pakistan Muslim League-Q President Senator Chaudhry Shujat Hussain.
SM Zafar, Wasim Sajjad and Dr Khalid Ranjha appeared in the case as his legal counsels.
Zafar as the senior counsel stated that on account of the pendency of the matter before the Supreme Court, Moonis Elahi was not getting the legal relief he was entitled for.
The bench in its written order observed that notwithstanding any controversy with regard to the interim or final status of the challan, the courts hearing the matter were entirely independent in their proceedings. The bench further observed that if the legal relief was sought for the counsel appearing on behalf of the petitioner would be free to raise any argument.

Court reserves orders on bail plea of Morani, Balwa

A Delhi court trying the 2G spectrum allocation case, on Saturday, reserved for May 23 its order on the anticipatory bail plea of Cineyug Films’ Karim Morani.
Special Judge O P Saini, who was also to deliver its order on the bail pleas of co-accused Rajiv Agarwal and Shahid Balwa of Kusegaon Fruits and Vegetables, deferred the matter to May 24.
Senior advocate Sidharath Luthra, appearing for Morani, also produced a medical report from Mumbai’s J J Hospital in order to seek exemption from personal appearance.
Morani, who is named as an accused in the supplementary charge sheet, was told on May 10 to produce a medical certificate relating to his ill-health.
Luthra sought bail for Morani on the grounds that he was on medication as his heart was functioning only 45 per  cent. The doctors have advised him eight small meals in a day, he submitted.
The CBI, on the other hand, opposed Morani’s plea, saying that he had a definite role in the case and acted as a co-conspirator in transfer of Rs 200 crore to Kalaignar TV from Shahid Usma Balwa’s D B Realty. The court, however, reserved its order till Monday.
Meanwhile, the court allowed the orthopedics mattress in jail for the two officials of Anil Dhirubai Ambani Group (ADAG) Gautam Doshi and Hari Nair.
“However, as per jail rules, the accused are to be examined in OPD (out patient department) of Deen Dayal Upadhaya hospital before the use of orthopedic mattress,” the court said.
It directed the jail authorities to take Doshi and Nair to the hospital directly from Tihar Jail on May 23 for examination before producing them before the court.
The CBI had filed the main charge sheet in the 2G spectrum case on April 2, naming former telecom minister A Raja, former telecom secretary Siddharth Behura, Swan Telecom promoter Shahid Balwa, Raja’s then aide R K Chandolia, Swan Telecom’s Vinod Goenka and Unitech’s Sanjay Chandra as the accused.
In its supplementary charge sheet, the CBI named Kanimozhi, DMK MP, and Sharad Kumar, Kalaignar TV’s MD and CEO, as co-conspirators following the emergence of details about transfer of over Rs 200 crore.
Morani as well as Shahid’s brother Asif Balwa and Aggarwal were also named in the supplementary chargesheet.
Three ADAG officials, Gautam Doshi, Hari Nair and Surendra Pipara, were also named in the case. Pipara is in the All India Institute of Medical Sciences (AIIMS) as he is undergoing treatment.
All the accused, except Morani and Pipara were present in the court on Saturday.

Court reserves orders on bail plea of Morani, Balwa

A Delhi court trying the 2G spectrum allocation case, on Saturday, reserved for May 23 its order on the anticipatory bail plea of Cineyug Films’ Karim Morani.
Special Judge O P Saini, who was also to deliver its order on the bail pleas of co-accused Rajiv Agarwal and Shahid Balwa of Kusegaon Fruits and Vegetables, deferred the matter to May 24.
Senior advocate Sidharath Luthra, appearing for Morani, also produced a medical report from Mumbai’s J J Hospital in order to seek exemption from personal appearance.
Morani, who is named as an accused in the supplementary charge sheet, was told on May 10 to produce a medical certificate relating to his ill-health.
Luthra sought bail for Morani on the grounds that he was on medication as his heart was functioning only 45 per  cent. The doctors have advised him eight small meals in a day, he submitted.
The CBI, on the other hand, opposed Morani’s plea, saying that he had a definite role in the case and acted as a co-conspirator in transfer of Rs 200 crore to Kalaignar TV from Shahid Usma Balwa’s D B Realty. The court, however, reserved its order till Monday.
Meanwhile, the court allowed the orthopedics mattress in jail for the two officials of Anil Dhirubai Ambani Group (ADAG) Gautam Doshi and Hari Nair.
“However, as per jail rules, the accused are to be examined in OPD (out patient department) of Deen Dayal Upadhaya hospital before the use of orthopedic mattress,” the court said.
It directed the jail authorities to take Doshi and Nair to the hospital directly from Tihar Jail on May 23 for examination before producing them before the court.
The CBI had filed the main charge sheet in the 2G spectrum case on April 2, naming former telecom minister A Raja, former telecom secretary Siddharth Behura, Swan Telecom promoter Shahid Balwa, Raja’s then aide R K Chandolia, Swan Telecom’s Vinod Goenka and Unitech’s Sanjay Chandra as the accused.
In its supplementary charge sheet, the CBI named Kanimozhi, DMK MP, and Sharad Kumar, Kalaignar TV’s MD and CEO, as co-conspirators following the emergence of details about transfer of over Rs 200 crore.
Morani as well as Shahid’s brother Asif Balwa and Aggarwal were also named in the supplementary chargesheet.
Three ADAG officials, Gautam Doshi, Hari Nair and Surendra Pipara, were also named in the case. Pipara is in the All India Institute of Medical Sciences (AIIMS) as he is undergoing treatment.
All the accused, except Morani and Pipara were present in the court on Saturday.

California’s plan to “realign” criminal justice

California’s prison system holds 162,000 inmates. By the end of June the United States Supreme Court could uphold an order to cut that number by nearly 40,000.
The justices are hearing a California appeal of a lower court order to end prison overcrowding. If the state loses the appeal, no one's sure what prison officials will do, but the solution might be Gov. Jerry Brown’s recently enacted “realignment plan” (AB109) to shift thousands of inmates from state prisons to county jails.
Brown’s “realignment” plan shifts non-violent, low-level offenders from state prison to the county supervision. They’d serve time in local jails, or on house arrest, or in community service or rehab programs. Counties would also house all but a few juvenile offenders. And counties would supervise parolees who’d served time in state prison for non-violent, low-level offenses.
But Secretary of Corrections Matthew Cate emphasizes that under “realignment,” no one will get out of prison early.

“Everybody who’s in prison now stays in prison” says Cate. “Everybody who’s on state parole now stays on state parole. This is all, 'What does it look like in the future?'”

In the future the caseloads of state parole officers would be reduced by tens of thousands of ex-convicts. Counties would supervise them. State parole officers would focus on high-risk ex-cons, including sex offenders and violent criminals. And only high-risk, ex-cons would be sent back to state prison for parole violations, like other states do it.
Cate says while state parole officers watch the high-risk offenders, the counties will focus on getting low-risk offenders the help they need to stay out of trouble.
“Part of this investment will be to provide county probation and county sheriffs with a big chunk of money to get these offenders into programs that have been working locally to try to shrink the size of the pie. We just can’t afford to continue to have so many offenders fail.”

Many local law enforcement officials agree with “realignment” in principle.
Irvine Police Chief Dave Maggard, President of the California Police Chiefs Association says “chiefs throughout California believe that if done with care and if we have sufficient funding that realignment has the potential to really result in better public safety outcomes that than we currently have.”
The governor promised to provide $1.1 billion dollars a year to counties to cover public safety “realignment.” He’s still trying to convince a few Republican lawmakers to support a five-year tax extension so he can pay for that promise.
Maggard says if lawmakers approve funding, he wants some of those dollars to beef up local police forces.

“We do know that there’s going to be more people out there that we’re going to have to be engaged with. There’s going to be some offenses that we’re going to wanna make sure that we’re going to be monitoring closely.”

The California District Attorneys Association pushed to get funding to pay for prosecuting more crimes. But spokesman Scott Thorpe says a bigger worry is whether “realignment” would crowd county jails.

“If you have a certain jail capacity and you have more people coming to local jails that means certain people who would otherwise be in a local jail won’t be there. Those people will be out on the street. Many of those people will most likely commit more crimes.”

Thorpe says many of California’s county jails are at capacity.
“There are some counties who literally don’t have the beds, so they don’t have the physical facilities and the realignment doesn’t provide enough money to build jails quick enough. There are other jails that, they have the beds but they don’t have the funding for the personnel so they can’t put people in some of those beds.”

The realignment plan includes money to reopen 10,000 jail beds, expand existing jails or build new ones.
Cate says state prisons will also offer to contract with counties to house some low-level offenders. Private prisons in California also have room.
Cate says the most immediate change will involve county probation departments; they’ll take over the job of monitoring low-level, non-violent parolees released from state prisons in July. Cate expects counties to monitor 35,000 parolees within two years.

California’s plan to “realign” criminal justice

California’s prison system holds 162,000 inmates. By the end of June the United States Supreme Court could uphold an order to cut that number by nearly 40,000.
The justices are hearing a California appeal of a lower court order to end prison overcrowding. If the state loses the appeal, no one's sure what prison officials will do, but the solution might be Gov. Jerry Brown’s recently enacted “realignment plan” (AB109) to shift thousands of inmates from state prisons to county jails.
Brown’s “realignment” plan shifts non-violent, low-level offenders from state prison to the county supervision. They’d serve time in local jails, or on house arrest, or in community service or rehab programs. Counties would also house all but a few juvenile offenders. And counties would supervise parolees who’d served time in state prison for non-violent, low-level offenses.
But Secretary of Corrections Matthew Cate emphasizes that under “realignment,” no one will get out of prison early.

“Everybody who’s in prison now stays in prison” says Cate. “Everybody who’s on state parole now stays on state parole. This is all, 'What does it look like in the future?'”

In the future the caseloads of state parole officers would be reduced by tens of thousands of ex-convicts. Counties would supervise them. State parole officers would focus on high-risk ex-cons, including sex offenders and violent criminals. And only high-risk, ex-cons would be sent back to state prison for parole violations, like other states do it.
Cate says while state parole officers watch the high-risk offenders, the counties will focus on getting low-risk offenders the help they need to stay out of trouble.
“Part of this investment will be to provide county probation and county sheriffs with a big chunk of money to get these offenders into programs that have been working locally to try to shrink the size of the pie. We just can’t afford to continue to have so many offenders fail.”

Many local law enforcement officials agree with “realignment” in principle.
Irvine Police Chief Dave Maggard, President of the California Police Chiefs Association says “chiefs throughout California believe that if done with care and if we have sufficient funding that realignment has the potential to really result in better public safety outcomes that than we currently have.”
The governor promised to provide $1.1 billion dollars a year to counties to cover public safety “realignment.” He’s still trying to convince a few Republican lawmakers to support a five-year tax extension so he can pay for that promise.
Maggard says if lawmakers approve funding, he wants some of those dollars to beef up local police forces.

“We do know that there’s going to be more people out there that we’re going to have to be engaged with. There’s going to be some offenses that we’re going to wanna make sure that we’re going to be monitoring closely.”

The California District Attorneys Association pushed to get funding to pay for prosecuting more crimes. But spokesman Scott Thorpe says a bigger worry is whether “realignment” would crowd county jails.

“If you have a certain jail capacity and you have more people coming to local jails that means certain people who would otherwise be in a local jail won’t be there. Those people will be out on the street. Many of those people will most likely commit more crimes.”

Thorpe says many of California’s county jails are at capacity.
“There are some counties who literally don’t have the beds, so they don’t have the physical facilities and the realignment doesn’t provide enough money to build jails quick enough. There are other jails that, they have the beds but they don’t have the funding for the personnel so they can’t put people in some of those beds.”

The realignment plan includes money to reopen 10,000 jail beds, expand existing jails or build new ones.
Cate says state prisons will also offer to contract with counties to house some low-level offenders. Private prisons in California also have room.
Cate says the most immediate change will involve county probation departments; they’ll take over the job of monitoring low-level, non-violent parolees released from state prisons in July. Cate expects counties to monitor 35,000 parolees within two years.

UFC: CSAC U-turn on Chael Sonnen case suggests witchhunt mentality

Astonishing. Only thing worse than a lying politician, an unelected one. And I’m not talking about Chael Sonnen. The manner in which the five commissioners of the California State Athletic Commission ruled on the future career of Sonnen at a hearing on Wednesday was staggering. It smacked of a witchhunt, especially given the U-turn 24 hours later.
In the United States, the Commissioners of the State Athletic Commission are politicians. But they are not elected into office. They are appointed. However, they are still state government officials.
Sonnen had already served eight months suspended after a post-fight screening test in Oakland last August revealed higher than normal T to E testosterone levels. The well-documented case of Sonnen’s plea that he had notified the CSAC that he needed treatment for Hypergonadism ensued. In the meantime, he had his Real Estate trader’s licence removed for being implicated in a white collar crime.  He did not benefit personally. He got a $10,000 fine and had his licence removed for two years.
CSAC banned him for six months, then decided to look again at his ban after further evidence emerged which they say affected the ban, and in the last two weeks ruled that his licence would be removed indefinitely.    
Did the punishment fit the crime ? Clearly not. It made no sense whatsoever.
An indefinite ban was not fitting on the 4-1 commissioners’ vote. Yes, Sonnen had done wrong. Yes, he needed to be suspended. A year looked about right. Serve the ban, go back to work. Do it again, banned for life.
Worth considering this. This was the same commission which banned the boxer Antonio Margarito for a year for the extremely, dangerous, illegal hand wraps. From this corner, far more serious than Sonnen’s transgressions. Margarito was back after a year.
What is upholding an indefinite ban ? Why did they come out with this ? And then reverse it with a U-turn a day later, revealing that Sonnen was then free to apply for a licence after June 29. It seems that he will be able to do that anywhere but California. And given that he has burnt his bridges with Keith Kizer, who claims he has been perjured by Sonnen, Nevada might be a bad place to apply.
What right did they have to sit in judgement on a man’s character, which is what they did on Wednesday. How on earth did they have the right to bring in the Real Estate federal case relating to this. It has nothing whatsoever to do with the evidence of the case they were considering. What did one have to do with the other ? Had the indefinite ban been upheld, surely Sonnen and his lawyers would have pleaded ‘Restraint of Trade’.
This was like watching four out of five Caesars in a Coliseum putting their thumbs down on the death of a career…a sorry state of affairs. When the news of the U-turn, or indeed confession of a mistake by CSAC was announced yesterday, there was an outpouring of goodwill towards the Oregonian. Sure, he’s not popular with everyone. But he deserves a second shot to fight in the mixed martial arts world.
Sonnen went through ritual humiliation, was as contrite as anyone has ever seen him, was pleading to go back to work, he was not asking for something he has not earned, and he worked all his life in MMA to get this role on TUF.
What the June 29 date does do, however, is arguably rule Sonnen out of being a coach in the next TUF series, a deadline for the role having been set by UFC president Dana White. Sonnen revealed in Wednesday’s hearing that he had been offered the role, opposite British mixed martial artist Michael Bisping.
The TUF series clearly needs an injection of life. This could have been it. It remains to be seen whether that deadline will be put back for the Bisping v Sonnen TUF series would go ahead. It would also most likely be an eliminator for a shot at the UFC middleweight title.  
You don’t have to like Chael Sonnen. He’s no angel. But the man clearly deserved some justice.

UFC: CSAC U-turn on Chael Sonnen case suggests witchhunt mentality

Astonishing. Only thing worse than a lying politician, an unelected one. And I’m not talking about Chael Sonnen. The manner in which the five commissioners of the California State Athletic Commission ruled on the future career of Sonnen at a hearing on Wednesday was staggering. It smacked of a witchhunt, especially given the U-turn 24 hours later.
In the United States, the Commissioners of the State Athletic Commission are politicians. But they are not elected into office. They are appointed. However, they are still state government officials.
Sonnen had already served eight months suspended after a post-fight screening test in Oakland last August revealed higher than normal T to E testosterone levels. The well-documented case of Sonnen’s plea that he had notified the CSAC that he needed treatment for Hypergonadism ensued. In the meantime, he had his Real Estate trader’s licence removed for being implicated in a white collar crime.  He did not benefit personally. He got a $10,000 fine and had his licence removed for two years.
CSAC banned him for six months, then decided to look again at his ban after further evidence emerged which they say affected the ban, and in the last two weeks ruled that his licence would be removed indefinitely.    
Did the punishment fit the crime ? Clearly not. It made no sense whatsoever.
An indefinite ban was not fitting on the 4-1 commissioners’ vote. Yes, Sonnen had done wrong. Yes, he needed to be suspended. A year looked about right. Serve the ban, go back to work. Do it again, banned for life.
Worth considering this. This was the same commission which banned the boxer Antonio Margarito for a year for the extremely, dangerous, illegal hand wraps. From this corner, far more serious than Sonnen’s transgressions. Margarito was back after a year.
What is upholding an indefinite ban ? Why did they come out with this ? And then reverse it with a U-turn a day later, revealing that Sonnen was then free to apply for a licence after June 29. It seems that he will be able to do that anywhere but California. And given that he has burnt his bridges with Keith Kizer, who claims he has been perjured by Sonnen, Nevada might be a bad place to apply.
What right did they have to sit in judgement on a man’s character, which is what they did on Wednesday. How on earth did they have the right to bring in the Real Estate federal case relating to this. It has nothing whatsoever to do with the evidence of the case they were considering. What did one have to do with the other ? Had the indefinite ban been upheld, surely Sonnen and his lawyers would have pleaded ‘Restraint of Trade’.
This was like watching four out of five Caesars in a Coliseum putting their thumbs down on the death of a career…a sorry state of affairs. When the news of the U-turn, or indeed confession of a mistake by CSAC was announced yesterday, there was an outpouring of goodwill towards the Oregonian. Sure, he’s not popular with everyone. But he deserves a second shot to fight in the mixed martial arts world.
Sonnen went through ritual humiliation, was as contrite as anyone has ever seen him, was pleading to go back to work, he was not asking for something he has not earned, and he worked all his life in MMA to get this role on TUF.
What the June 29 date does do, however, is arguably rule Sonnen out of being a coach in the next TUF series, a deadline for the role having been set by UFC president Dana White. Sonnen revealed in Wednesday’s hearing that he had been offered the role, opposite British mixed martial artist Michael Bisping.
The TUF series clearly needs an injection of life. This could have been it. It remains to be seen whether that deadline will be put back for the Bisping v Sonnen TUF series would go ahead. It would also most likely be an eliminator for a shot at the UFC middleweight title.  
You don’t have to like Chael Sonnen. He’s no angel. But the man clearly deserved some justice.

Connecticut Man Sentenced for Distributing Crack

David B Fein, United States Attorney for the District of Connecticut, announced that TYRONE WILLIAMS, 37, of West Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine. This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department, and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was centered in the Newhallville section of New Haven and Hamden, and was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area. According to court documents and statements made in court, in October 2010, WILLIAMS purchased crack cocaine from other members of the drug trafficking organization, and then sold the crack to others.

On March 2, 2011, WILLIAMS pleaded guilty to one count of conspiring to distribute 28 grams or more of cocaine base (“crack cocaine”). WILLIAMS has been detained since his arrest on November 16, 2010. Thirty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. This matter was investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Task Force (composed of members of members of the New Haven, Ansonia, Milford, and East Haven Police Department, and the Connecticut State Police and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden, and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments.

The United States Marshals Service assisted with the arrest of defendants in November and December 2010. The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs. This matter is being prosecuted by Assistant United States Attorneys Christopher M Mattei and Robert M Spector.

Reported by: FBI

Wisconsin Man Sentenced in Tribal Drug Investigation

MADISON, WI—John W Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Eric E Garvey, 40, Webster, Wis ., was sentenced yesterday by United States District Judge William M Conley to 42 months in prison without parole and three years of probation for the distribution of methamphetamine. Garvey was found guilty of four charges of distributing methamphetamine on February 8, 2011, after a two-day trial in federal court in Madison. The government’s proof at the jury trial established that Garvey sold methamphetamine to an individual working with law enforcement on four occasions in April and May 2008. The Garvey investigation was part of a large investigation into drug dealing on St.

Croix tribal lands. Twenty-five defendants have previously been sentenced as a result of this investigation. The previous defendants sentenced are set forth below: Name Crime of Conviction Sentence Imposed Joseph Merrill Distribution of Crack Cocaine 4 years Manley L Williams Distribution of Crack Cocaine 8 years, 4 months Christifer Sonnenberg Distribution of Crack Cocaine 5 years, 6 months Jean Sonnenberg Conspiracy to Distribute Crack Cocaine 19 years, 7 months Bruce Sonnenberg Conspiracy to Distribute Crack Cocaine 24 years, 4 months Amanda Sonnenberg Distribution of Crack Cocaine 3 years, 10 months George Rainey Distribution of Crack Cocaine 14 years Bruce Rainey Distribution of Crack Cocaine 17 years, 6 months Diana Martin Conspiracy to Distribute Crack Cocaine 9 years Margrette Cobb Conspiracy to Distribute Crack Cocaine 13 years, 4 months Andrew Sonnenberg Distribution of Crack Cocaine 17 years, 6 months Ericka J Reynolds Conspiracy to Distribute Crack Cocaine 1 year, 6 months Shaleah Reynolds Distribution of Crack Cocaine 2 years Michael D Hammond Distribution of Crack Cocaine 12 years, 7 months Steven R Lang Distribution of Methamphetamine 4 years Shana Corbine Distribution of Crack Cocaine 4 years, 3 months Linda Lightfeather Operating a Crack House 5 months Buck Zehner Operating a Crack House 8 months Janeen Mosay Operating a Crack House 6 months Frankie Bildeau Distribution of Crack Cocaine 12 months, 1 day Broderick Swain Conspiracy to Distribute Crack Cocaine 54 months Derrick Rapley Conspiracy to Distribute Crack Cocaine 13 years Louis Belisle Distribution of Crack Cocaine 21 months Brandon Belisle Distribution of Crack Cocaine 21 months John Carr Conspiracy to Distribute Crack Cocaine 6 years United States Attorney Vaudreuil stated that this sentencing, and all the prior sentencings, were the result of a long-term investigation conducted by the Wisconsin Department of Justice, Division of Criminal Investigation; Federal Bureau of Investigation; St. Croix Tribal Police Department; Rice Lake Police Department; Barron County Sheriff's Department; Burnett County Sheriff's Department; Sawyer County Sheriff’s Department; Polk County Sheriff's Department; Native American Drug & Gang Initiative; and Wisconsin State Patrol.

Assistant United States Attorney Peter M Jarosz handled the prosecution of the Garvey case; United States Attorney John W Vaudreuil handled the prosecution of the previous cases.

Reported by: FBI

Connecticut Man Sentenced for Distributing Crack

David B Fein, United States Attorney for the District of Connecticut, announced that TYRONE WILLIAMS, 37, of West Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine. This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department, and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was centered in the Newhallville section of New Haven and Hamden, and was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area. According to court documents and statements made in court, in October 2010, WILLIAMS purchased crack cocaine from other members of the drug trafficking organization, and then sold the crack to others.

On March 2, 2011, WILLIAMS pleaded guilty to one count of conspiring to distribute 28 grams or more of cocaine base (“crack cocaine”). WILLIAMS has been detained since his arrest on November 16, 2010. Thirty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. This matter was investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Task Force (composed of members of members of the New Haven, Ansonia, Milford, and East Haven Police Department, and the Connecticut State Police and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden, and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments.

The United States Marshals Service assisted with the arrest of defendants in November and December 2010. The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs. This matter is being prosecuted by Assistant United States Attorneys Christopher M Mattei and Robert M Spector.

Reported by: FBI

Wisconsin Man Sentenced in Tribal Drug Investigation

MADISON, WI—John W Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Eric E Garvey, 40, Webster, Wis ., was sentenced yesterday by United States District Judge William M Conley to 42 months in prison without parole and three years of probation for the distribution of methamphetamine. Garvey was found guilty of four charges of distributing methamphetamine on February 8, 2011, after a two-day trial in federal court in Madison. The government’s proof at the jury trial established that Garvey sold methamphetamine to an individual working with law enforcement on four occasions in April and May 2008. The Garvey investigation was part of a large investigation into drug dealing on St.

Croix tribal lands. Twenty-five defendants have previously been sentenced as a result of this investigation. The previous defendants sentenced are set forth below: Name Crime of Conviction Sentence Imposed Joseph Merrill Distribution of Crack Cocaine 4 years Manley L Williams Distribution of Crack Cocaine 8 years, 4 months Christifer Sonnenberg Distribution of Crack Cocaine 5 years, 6 months Jean Sonnenberg Conspiracy to Distribute Crack Cocaine 19 years, 7 months Bruce Sonnenberg Conspiracy to Distribute Crack Cocaine 24 years, 4 months Amanda Sonnenberg Distribution of Crack Cocaine 3 years, 10 months George Rainey Distribution of Crack Cocaine 14 years Bruce Rainey Distribution of Crack Cocaine 17 years, 6 months Diana Martin Conspiracy to Distribute Crack Cocaine 9 years Margrette Cobb Conspiracy to Distribute Crack Cocaine 13 years, 4 months Andrew Sonnenberg Distribution of Crack Cocaine 17 years, 6 months Ericka J Reynolds Conspiracy to Distribute Crack Cocaine 1 year, 6 months Shaleah Reynolds Distribution of Crack Cocaine 2 years Michael D Hammond Distribution of Crack Cocaine 12 years, 7 months Steven R Lang Distribution of Methamphetamine 4 years Shana Corbine Distribution of Crack Cocaine 4 years, 3 months Linda Lightfeather Operating a Crack House 5 months Buck Zehner Operating a Crack House 8 months Janeen Mosay Operating a Crack House 6 months Frankie Bildeau Distribution of Crack Cocaine 12 months, 1 day Broderick Swain Conspiracy to Distribute Crack Cocaine 54 months Derrick Rapley Conspiracy to Distribute Crack Cocaine 13 years Louis Belisle Distribution of Crack Cocaine 21 months Brandon Belisle Distribution of Crack Cocaine 21 months John Carr Conspiracy to Distribute Crack Cocaine 6 years United States Attorney Vaudreuil stated that this sentencing, and all the prior sentencings, were the result of a long-term investigation conducted by the Wisconsin Department of Justice, Division of Criminal Investigation; Federal Bureau of Investigation; St. Croix Tribal Police Department; Rice Lake Police Department; Barron County Sheriff's Department; Burnett County Sheriff's Department; Sawyer County Sheriff’s Department; Polk County Sheriff's Department; Native American Drug & Gang Initiative; and Wisconsin State Patrol.

Assistant United States Attorney Peter M Jarosz handled the prosecution of the Garvey case; United States Attorney John W Vaudreuil handled the prosecution of the previous cases.

Reported by: FBI

California Man Indicted in Florida for Attempting to Damage Cruise Ship

TAMPA, FL—United States Attorney Robert E O'Neill announces the return by a grand jury of an indictment charging Rick Ehlert (44, of Thousand Oaks, California) with one count of attempting to damage a ship in a way that endangers its safe navigation and two counts of attempting to damage a vessel and a maritime facility. If convicted on all counts, Ehlert faces a maximum penalty of 20 years in federal prison. According to the indictment, on or about November 27, 2010, Ehlert attempted to cause damage to the MS Ryndam, a cruise ship, while it was in international waters, by unlawfully dropping the stern anchor on board the ship. Additionally, Ehlert attempted to destroy or disable a life buoy, an item intended to be used in connection with the operation of a vessel.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Federal Bureau of Investigation and the United States Coast Guard. It will be prosecuted by Assistant United States Attorney Sara C Sweeney.

Reported by: FBI

Arkansas Man Convicted in Connection with Assault of Five Hispanic Men

WASHINGTON—Frankie Maybee, 20, of Green Forest, Ark ., was convicted today by a federal jury today of five counts of committing a federal hate crime and one count of conspiring to commit a federal hate crime, announced the Justice Department. This is the first conviction at trial for a violation of the Matthew Shepard and James Byrd Jr Hate Crimes Prevention Act, which was enacted in October 2009. Maybee faces a maximum of 55 years in prison, and a fine of up to $250,000 per violation. On May 16, 2011, co-defendant Sean Popejoy, 19, of Green Forest, pleaded guilty in federal court to one count of committing a federal hate crime and one count of conspiring to commit a federal hate crime in connection with this matter.

Evidence presented at trial established that in the early morning hours of June 20, 2010, Maybee and Popejoy conspired to and did threaten and injure five Hispanic men who had pulled into a gas station parking lot. The co-conspirators pursued the victims in a truck. When the co-conspirators caught up to the victims, Popejoy leaned outside of the front passenger window and waived a tire wrench at the victims, and continued to threaten and hurl racial epithets at the victims. Maybee, driving his truck, rammed into the victims' car repeatedly, which caused the victims' car to cross the opposite lane of traffic, go off the road, crash into a tree and ignite.

As a result of Maybee and his co-conspirators' actions, the victims suffered bodily injury, including one victim who sustained life-threatening injuries. "The defendants targeted five men because they were Hispanic, and today's verdict shows that the Justice Department is committed to vigorously prosecuting individuals who perform acts of hate because of someone's race or national origin," said Thomas E Perez, Assistant Attorney General for the Civil Rights Division. "We will continue to use the Matthew Shepard and James Byrd Jr Hate Crimes Prevention Act, and every other tool in our law enforcement arsenal, to identify and prosecute hate crimes whenever they occur." "We thank the jury for their careful consideration, and for their verdict. It is horrific that acts of violence are committed against complete strangers because of their race," Conner Eldridge, United States Attorney for the Western District of Arkansas.

"In this case, five Hispanic men stopped to fill up their car with gas and were violently run off the road, causing severe injuries and nearly causing death to one of them. In the Western District of Arkansas, we will continue to prosecute acts of violence that are motivated by hatred of another's race." This case was investigated by the FBI's Fayetteville, Ark ., Division in cooperation with the Arkansas State Police Department and the Carroll County Sheriff's Office. The case was prosecuted by Trial Attorney Edward Chung of the Department of Justice's Civil Rights Division and Assistant United States Attorney Kyra E Jenner for the Western District of Arkansas.

Reported by: FBI

California Man Indicted in Florida for Attempting to Damage Cruise Ship

TAMPA, FL—United States Attorney Robert E O'Neill announces the return by a grand jury of an indictment charging Rick Ehlert (44, of Thousand Oaks, California) with one count of attempting to damage a ship in a way that endangers its safe navigation and two counts of attempting to damage a vessel and a maritime facility. If convicted on all counts, Ehlert faces a maximum penalty of 20 years in federal prison. According to the indictment, on or about November 27, 2010, Ehlert attempted to cause damage to the MS Ryndam, a cruise ship, while it was in international waters, by unlawfully dropping the stern anchor on board the ship. Additionally, Ehlert attempted to destroy or disable a life buoy, an item intended to be used in connection with the operation of a vessel.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Federal Bureau of Investigation and the United States Coast Guard. It will be prosecuted by Assistant United States Attorney Sara C Sweeney.

Reported by: FBI

Arkansas Man Convicted in Connection with Assault of Five Hispanic Men

WASHINGTON—Frankie Maybee, 20, of Green Forest, Ark ., was convicted today by a federal jury today of five counts of committing a federal hate crime and one count of conspiring to commit a federal hate crime, announced the Justice Department. This is the first conviction at trial for a violation of the Matthew Shepard and James Byrd Jr Hate Crimes Prevention Act, which was enacted in October 2009. Maybee faces a maximum of 55 years in prison, and a fine of up to $250,000 per violation. On May 16, 2011, co-defendant Sean Popejoy, 19, of Green Forest, pleaded guilty in federal court to one count of committing a federal hate crime and one count of conspiring to commit a federal hate crime in connection with this matter.

Evidence presented at trial established that in the early morning hours of June 20, 2010, Maybee and Popejoy conspired to and did threaten and injure five Hispanic men who had pulled into a gas station parking lot. The co-conspirators pursued the victims in a truck. When the co-conspirators caught up to the victims, Popejoy leaned outside of the front passenger window and waived a tire wrench at the victims, and continued to threaten and hurl racial epithets at the victims. Maybee, driving his truck, rammed into the victims' car repeatedly, which caused the victims' car to cross the opposite lane of traffic, go off the road, crash into a tree and ignite.

As a result of Maybee and his co-conspirators' actions, the victims suffered bodily injury, including one victim who sustained life-threatening injuries. "The defendants targeted five men because they were Hispanic, and today's verdict shows that the Justice Department is committed to vigorously prosecuting individuals who perform acts of hate because of someone's race or national origin," said Thomas E Perez, Assistant Attorney General for the Civil Rights Division. "We will continue to use the Matthew Shepard and James Byrd Jr Hate Crimes Prevention Act, and every other tool in our law enforcement arsenal, to identify and prosecute hate crimes whenever they occur." "We thank the jury for their careful consideration, and for their verdict. It is horrific that acts of violence are committed against complete strangers because of their race," Conner Eldridge, United States Attorney for the Western District of Arkansas.

"In this case, five Hispanic men stopped to fill up their car with gas and were violently run off the road, causing severe injuries and nearly causing death to one of them. In the Western District of Arkansas, we will continue to prosecute acts of violence that are motivated by hatred of another's race." This case was investigated by the FBI's Fayetteville, Ark ., Division in cooperation with the Arkansas State Police Department and the Carroll County Sheriff's Office. The case was prosecuted by Trial Attorney Edward Chung of the Department of Justice's Civil Rights Division and Assistant United States Attorney Kyra E Jenner for the Western District of Arkansas.

Reported by: FBI

Texas Man Guilty of Attempted Carjacking of Off-Duty Border Patrol Agent, Other Crimes

McALLEN, TX—Jose Antonio Armendariz, 27, last known to reside in Penitas, Texas, has been found guilty of all 12 counts charged against him in relation to the 2006 hostage-taking of a local rancher, two 2006 carjackings, and the 2009 attempted carjacking of an off-duty Border Patrol (BP) agent, United States Attorney José Angel Moreno announced today. Yesterday, at approximately 4:00 PM, a federal jury returned its verdict after approximately three hours of deliberation, finding Armendariz guilty of one count of attempted carjacking, two counts of carjacking, one count of conspiracy to commit carjacking, three counts of conspiracy to use or carry a firearm in relation to a crime of violence, three counts of using and carrying a firearm in relation to a crime of violence, one count of conspiracy to commit hostage taking, and one count of hostage taking. Armendariz, aka “El Commandante,” was originally set to begin trial on Wednesday, September 8, 2010. However, on the eve of trial, he elected to plead guilty instead to attempted carjacking.

Later, he withdrew his plea and opted to go to trial. During the eight-day trial, the jury heard testimony from multiple cooperators, federal agents, local law enforcement officers, and the four victims of the offenses of which Armendariz was convicted. The evidence showed, among other things, that Armendariz masterminded the hostage-taking of a local rancher in November 2006. In preparation for the commission of the hostage-taking, Armendariz and four accomplices carjacked two vehicles during which Armendariz’s accomplices threatened the victims with a firearm.

Shortly after the second carjacking, four of Armendariz’s accomplices took a local rancher at gunpoint and Armendariz negotiated the $200,000 ransom that was eventually paid by the rancher’s family. The jury also heard testimony of Armendariz’s involvement in the 2009 attempted carjacking of an off-duty Border Patrol agent. The evidence showed that Armendariz and at least seven accomplices planned to steal a vehicle at gunpoint that supposedly had a large amount of cash concealed within. According to the record of the case, on June 23, 2009, Claudia Elena Gomez Aguilar, 28, of Tamaulipas, Mexico, a card reader and Santisima Muerte worshipper, was contacted by a drug money courier who asked Gomez to pray for her as she traveled from Michigan to the Rio Grande Valley with a large sum of money.

Instead, Gomez told De La Rosa and Juan Vite Martinez, 40, of Hidalgo, Mexico, about the trip and asked if they knew anyone willing to rob the courier and split the money with her. Martinez offered the name of “El Commandante.” Armendariz was tasked with scouting United States Highway 281 to look out for the vehicle. However, they identified and attempted to steal the wrong vehicle. This vehicle actually belonged to an off-duty Border Patrol agent who was traveling with his young daughter.

The agent and daughter were able to escape, but not before one of the assailants fired a shot that struck the agent’s vehicle. Both the agent and his daughter were unharmed. In its verdict yesterday, the jury also found Armendariz used a firearm in relation to a crime of violence, that is, that a firearm was brandished in the 2006 carjackings and that a firearm was discharged during the 2009 attempted carjacking. With these findings, Armendariz now faces a maximum punishment of life imprisonment at his sentencing, which is set for July 26, 2011, as well as a fine of up to $250,000.

Armendariz has been in federal custody since his January 2010 arrest where he will remain pending his sentencing hearing. Nieves Rogelio Ramirez, 27, of Sullivan City, Texas; Jose Concepcion Hernandez, aka “El Mazapan,” 31, of Edinburg, Texas; along with Gomez and Martinez pleaded guilty last year to the attempted carjacking as well as the related firearm charge, while Maria Teresa De La Rosa, 28, of McAllen, Texas, pleaded guilty to one count of carjacking. Each remains in custody without bond pending sentencing. Also charged and convicted are Jose Wenceslado Mejia, 20, of Rio Grande City, Texas, and Dagoberto Navarro Pompa, 26, of Tamaulipas, Mexico.

Mejia and Pompa have been sentenced to 150 and 180 months in prison, respectively, for their participation in the attempted carjacking. This case, investigated by the FBI and the FBI Safe Streets Task Force with the assistance of the Mission Police Department, the Texas Department of Public Safety, and the Hidalgo County Sheriff’s Office, was prosecuted by Assistant United States Attorneys Leo J Leo III and Casey N MacDonald.

Reported by: FBI

Founding Partner of Florida Law Firm Guilty in $837 Million Investment Fraud Scheme

Wifredo A Ferrer, United States Attorney for the Southern District of Florida, and John V Gillies, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), Miami Field Office, announce that defendant Michael J McNerney, a founding partner of the Ft. Lauderdale law firm formerly known as Brinkley, McNerney, Morgan, Solomon & Tatum, LLP, pled guilty on May 18, 2011, to a one-count criminal information charging him with conspiracy to commit mail fraud and wire fraud in connection with a scheme to defraud investors in the Mutual Benefits Corporation (“MBC”). As part of his plea agreement, McNerney agreed to be responsible for $837 million in restitution to the investors who were victims of this fraud. Sentencing has been scheduled for August 26, 2011 before United States District Judge Adalberto Jordan.

At sentencing, McNerney faces a maximum statutory sentence of five years in prison. For almost 10 years, from about October 1994 through at least May 2004, McNerney was the lead outside lawyer for MBC, and participated in a scheme through which MBC sold investment interests in viatical and life settlement insurance policies to the general public, raising more than $1.25 billion from approximately 30,000 investors worldwide. A viatical settlement is a transaction in which a terminally ill person sells the death benefit of his or her life insurance policy to a third party in return for a lump-sum cash payment, which is a discounted percentage of the policy’s face value. A life settlement is similar to a viatical settlement, except the seller is not terminally ill, but is a senior citizen.

In the sale of viatical or life settlements, an investor would realize a profit if, when the insured dies and the policy matures, the policy benefit is more than the price paid for policy. Any profit realized would be decreased by additional out-of-pocket costs, such as premium payments. As charged in the information, McNerney, as outside counsel for MBC, made and caused others to make, knowingly misleading representations concerning such matters as the management of MBC and its related entities and the sufficiency of the funds set aside to make premium payments on the investors’ policies. For example, among the misrepresentations made to investors, MBC’s sales agents falsely promised a “fixed return” on investments and falsely represented that MBC had a strong track record of accurately predicting life expectancies.

In addition, McNerney and his conspirators concealed from investors and regulators the fact that Joel Steinger, a convicted felon, was the key decision maker at MBC. Through these and other misrepresentations, MBC engaged in an unsustainable Ponzi scheme, in which it used new investors’ monies to pay previous investors. United States Attorney Wifredo A Ferrer stated, “Attorneys hold a position of trust in our society. As such, they are expected to deal honestly and truthfully with their clients and the general public in the exercise of their duties.

This attorney breached that duty and defrauded investors by providing “legal cover” to what was essentially nothing more than a Ponzi scheme. McNerney abused his position of trust and used his law license to help commit this massive fraud. Such abuse will not be tolerated.” “This is another case about an attorney who instead of doing the right thing was motivated by his personal greed and defrauded thousands of investors out of hundreds of millions of dollars,” said Special Agent in Charge John V Gillies. “McNerney’s actions were illegal and unethical and those who engage in such behavior need to know that they will be brought to justice, regardless of how elaborate or complex they think their scheme is.” Mr Ferrer commended the investigative efforts of the FBI and the Southeast Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals.

The matter is being prosecuted by Assistant United States Attorney Jerrob Duffy. Attachments: Information (pdf) Plea Agreement (pdf) Factual Basis (pdf) A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov.

Reported by: FBI

Texas Man Guilty of Attempted Carjacking of Off-Duty Border Patrol Agent, Other Crimes

McALLEN, TX—Jose Antonio Armendariz, 27, last known to reside in Penitas, Texas, has been found guilty of all 12 counts charged against him in relation to the 2006 hostage-taking of a local rancher, two 2006 carjackings, and the 2009 attempted carjacking of an off-duty Border Patrol (BP) agent, United States Attorney José Angel Moreno announced today. Yesterday, at approximately 4:00 PM, a federal jury returned its verdict after approximately three hours of deliberation, finding Armendariz guilty of one count of attempted carjacking, two counts of carjacking, one count of conspiracy to commit carjacking, three counts of conspiracy to use or carry a firearm in relation to a crime of violence, three counts of using and carrying a firearm in relation to a crime of violence, one count of conspiracy to commit hostage taking, and one count of hostage taking. Armendariz, aka “El Commandante,” was originally set to begin trial on Wednesday, September 8, 2010. However, on the eve of trial, he elected to plead guilty instead to attempted carjacking.

Later, he withdrew his plea and opted to go to trial. During the eight-day trial, the jury heard testimony from multiple cooperators, federal agents, local law enforcement officers, and the four victims of the offenses of which Armendariz was convicted. The evidence showed, among other things, that Armendariz masterminded the hostage-taking of a local rancher in November 2006. In preparation for the commission of the hostage-taking, Armendariz and four accomplices carjacked two vehicles during which Armendariz’s accomplices threatened the victims with a firearm.

Shortly after the second carjacking, four of Armendariz’s accomplices took a local rancher at gunpoint and Armendariz negotiated the $200,000 ransom that was eventually paid by the rancher’s family. The jury also heard testimony of Armendariz’s involvement in the 2009 attempted carjacking of an off-duty Border Patrol agent. The evidence showed that Armendariz and at least seven accomplices planned to steal a vehicle at gunpoint that supposedly had a large amount of cash concealed within. According to the record of the case, on June 23, 2009, Claudia Elena Gomez Aguilar, 28, of Tamaulipas, Mexico, a card reader and Santisima Muerte worshipper, was contacted by a drug money courier who asked Gomez to pray for her as she traveled from Michigan to the Rio Grande Valley with a large sum of money.

Instead, Gomez told De La Rosa and Juan Vite Martinez, 40, of Hidalgo, Mexico, about the trip and asked if they knew anyone willing to rob the courier and split the money with her. Martinez offered the name of “El Commandante.” Armendariz was tasked with scouting United States Highway 281 to look out for the vehicle. However, they identified and attempted to steal the wrong vehicle. This vehicle actually belonged to an off-duty Border Patrol agent who was traveling with his young daughter.

The agent and daughter were able to escape, but not before one of the assailants fired a shot that struck the agent’s vehicle. Both the agent and his daughter were unharmed. In its verdict yesterday, the jury also found Armendariz used a firearm in relation to a crime of violence, that is, that a firearm was brandished in the 2006 carjackings and that a firearm was discharged during the 2009 attempted carjacking. With these findings, Armendariz now faces a maximum punishment of life imprisonment at his sentencing, which is set for July 26, 2011, as well as a fine of up to $250,000.

Armendariz has been in federal custody since his January 2010 arrest where he will remain pending his sentencing hearing. Nieves Rogelio Ramirez, 27, of Sullivan City, Texas; Jose Concepcion Hernandez, aka “El Mazapan,” 31, of Edinburg, Texas; along with Gomez and Martinez pleaded guilty last year to the attempted carjacking as well as the related firearm charge, while Maria Teresa De La Rosa, 28, of McAllen, Texas, pleaded guilty to one count of carjacking. Each remains in custody without bond pending sentencing. Also charged and convicted are Jose Wenceslado Mejia, 20, of Rio Grande City, Texas, and Dagoberto Navarro Pompa, 26, of Tamaulipas, Mexico.

Mejia and Pompa have been sentenced to 150 and 180 months in prison, respectively, for their participation in the attempted carjacking. This case, investigated by the FBI and the FBI Safe Streets Task Force with the assistance of the Mission Police Department, the Texas Department of Public Safety, and the Hidalgo County Sheriff’s Office, was prosecuted by Assistant United States Attorneys Leo J Leo III and Casey N MacDonald.

Reported by: FBI

Founding Partner of Florida Law Firm Guilty in $837 Million Investment Fraud Scheme

Wifredo A Ferrer, United States Attorney for the Southern District of Florida, and John V Gillies, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), Miami Field Office, announce that defendant Michael J McNerney, a founding partner of the Ft. Lauderdale law firm formerly known as Brinkley, McNerney, Morgan, Solomon & Tatum, LLP, pled guilty on May 18, 2011, to a one-count criminal information charging him with conspiracy to commit mail fraud and wire fraud in connection with a scheme to defraud investors in the Mutual Benefits Corporation (“MBC”). As part of his plea agreement, McNerney agreed to be responsible for $837 million in restitution to the investors who were victims of this fraud. Sentencing has been scheduled for August 26, 2011 before United States District Judge Adalberto Jordan.

At sentencing, McNerney faces a maximum statutory sentence of five years in prison. For almost 10 years, from about October 1994 through at least May 2004, McNerney was the lead outside lawyer for MBC, and participated in a scheme through which MBC sold investment interests in viatical and life settlement insurance policies to the general public, raising more than $1.25 billion from approximately 30,000 investors worldwide. A viatical settlement is a transaction in which a terminally ill person sells the death benefit of his or her life insurance policy to a third party in return for a lump-sum cash payment, which is a discounted percentage of the policy’s face value. A life settlement is similar to a viatical settlement, except the seller is not terminally ill, but is a senior citizen.

In the sale of viatical or life settlements, an investor would realize a profit if, when the insured dies and the policy matures, the policy benefit is more than the price paid for policy. Any profit realized would be decreased by additional out-of-pocket costs, such as premium payments. As charged in the information, McNerney, as outside counsel for MBC, made and caused others to make, knowingly misleading representations concerning such matters as the management of MBC and its related entities and the sufficiency of the funds set aside to make premium payments on the investors’ policies. For example, among the misrepresentations made to investors, MBC’s sales agents falsely promised a “fixed return” on investments and falsely represented that MBC had a strong track record of accurately predicting life expectancies.

In addition, McNerney and his conspirators concealed from investors and regulators the fact that Joel Steinger, a convicted felon, was the key decision maker at MBC. Through these and other misrepresentations, MBC engaged in an unsustainable Ponzi scheme, in which it used new investors’ monies to pay previous investors. United States Attorney Wifredo A Ferrer stated, “Attorneys hold a position of trust in our society. As such, they are expected to deal honestly and truthfully with their clients and the general public in the exercise of their duties.

This attorney breached that duty and defrauded investors by providing “legal cover” to what was essentially nothing more than a Ponzi scheme. McNerney abused his position of trust and used his law license to help commit this massive fraud. Such abuse will not be tolerated.” “This is another case about an attorney who instead of doing the right thing was motivated by his personal greed and defrauded thousands of investors out of hundreds of millions of dollars,” said Special Agent in Charge John V Gillies. “McNerney’s actions were illegal and unethical and those who engage in such behavior need to know that they will be brought to justice, regardless of how elaborate or complex they think their scheme is.” Mr Ferrer commended the investigative efforts of the FBI and the Southeast Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals.

The matter is being prosecuted by Assistant United States Attorney Jerrob Duffy. Attachments: Information (pdf) Plea Agreement (pdf) Factual Basis (pdf) A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov.

Reported by: FBI