2nd Circuit Court

N.Y. Lawyer Ad Rules Struck Down

Updated: A federal judge has ruled that many of New York’s lawyer advertising restrictions violate the First Amendment. Judge Frederick Scullin of Syracuse ruled the state had not shown the rules advanced its interest in protecting the public, the New York Law Journal reports. Scullin struck down bans on: –Nicknames…

Jul 24, 2007 3:40 PM CDT

Hypnosis Hearing Stuns Petitioner

A federal judge has granted a hearing to determine if the children who agreed to testify in a high-profile sexual abuse case were influenced by hypnosis. U.S. District Judge Joanna Seybert of Central Islip, N.Y., issued the order in response to a habeas petition by Jesse Friedman, the New York…

Jul 24, 2007 3:31 PM CDT

DOJ Cites Wins as Reform Bill Looms

The Justice Department may have lost big in the massive $2.5 billion tax shelter fraud case brought against former KPMG accounting firm employees, if a federal judge’s dismissal of 13 defendants on ethics grounds this week holds up on appeal. But it has won 1,236 other corporate fraud cases over…

Jul 19, 2007 8:08 PM CDT

KPMG Lawyers: Unchain Us from Clients!

Representing a high-profile client in a major white-collar case can be both a blessing and a curse for a criminal defense attorney. Such cases can bring in big bucks and offer lots of free publicity. But they can also result in enormous unpaid legal bills. That nightmare scenario is apparently…

Jul 18, 2007 10:46 PM CDT

Pearl’s Widow Sues Major Pakistan Bank

The widow of a Wall Street Journal reporter abducted and murdered in Pakistan by terrorists in 2002 has sued his alleged killers, al-Qaida, and Pakistan’s biggest bank in federal court in New York. In a complaint filed today, Mariane Pearl, a French citizen, and her husband’s estate contend that Habib…

Jul 18, 2007 10:21 PM CDT

‘Impressive Benchslappery’ Noted

Bloggers are taking about a humorous dissenting opinion in a free speech case brought by college newspaper editors against their school. This dissenter is Chief Judge Dennis Jacobs of the 2nd U.S. Circuit Court of Appeals. He says the suit over nullification of a student election was “about nothing” and…

Jul 17, 2007 2:11 PM CDT

Judge Calls Interference on Prosecutors, Dismisses 13 from KPMG Case

Updated: Saying that prosecutors inappropriately interfered with their defense, a federal judge in Manhattan has dismissed charges against 13 of 16 KPMG former employees charged in a tax shelter fraud case. In a ruling today, U.S. District Judge Lewis A. Kaplan said he had no choice but to dismiss the…

Jul 16, 2007 7:37 PM CDT

Suits: Fuzzy Logic in High-Def TV Ads

Which service is better for high-definition TV viewers—cable or satellite? Lawsuits contend advertising on the subject isn’t giving consumers a clear picture. DirecTV has sued Comcast Cable for its ad claiming that satellite customers prefer its HD picture quality. The commercial is based on a comparison of picture quality on…

Jul 13, 2007 8:27 PM CDT

Defense Tab: At least $10 M

An executive charged with a high-profile white-collar crime can expect to spend at least $10 million on his defense. And that’s on the low end. That’s the conclusion in several legal briefs filed in the trial of 12 ex-KPMG employees charged with creating illegal tax shelters, the New York Law…

Jul 13, 2007 12:34 PM CDT

Suit: Ladies’ Nights Unconstitutional

A New York City attorney claims nightclubs that charge women less money are violating his constitutional rights. Roy Den Hollander has filed suit seeking a declaratory judgment that the policies are “state action” because the nightclubs are overseen by liquor regulators, the National Law Journal reports. He says a ruling…

Jul 12, 2007 12:55 PM CDT

Guilty Plea by Ex-Neteller Exec

A second executive with Neteller Inc. has pleaded guilty to conspiracy for transferring gambling proceeds. John Lefebvre, former president of the company, entered his plea yesterday in Manhattan federal court, the Wall Street Journal reports (sub. req.). He also agreed to cooperate with a federal probe of online gambling. Company…

Jul 11, 2007 5:58 PM CDT

26 Charged in $200 M Mortgage Fraud

Federal prosecutors in New York City announced today charges against 26 people in an alleged $200 million subprime mortgage scheme that involved 1,000 fraudulent loans. Participants allegedly cooperated to submit fraudulent mortgage applications between 2004 and 2006, obtaining funding for loans that otherwise would never have been made, reports CNN.…

Jul 11, 2007 1:57 AM CDT

Home Detention Tab: $15 K a Day

A wealthy Muttontown, N.Y., couple accused of enslaving two housekeepers should be released to home detention pending their trial, a federal appeals court has ruled. Varha and Mahender Sabhnani have agreed to pay for a private security force to ensure they will not flee, Newsday reports. They also will pick…

Jul 10, 2007 5:05 PM CDT

Suspension for Violent IM Upheld

A school did not violate an eighth-grade student’s First Amendment rights by suspending him for instant messaging a crude image suggesting that a teacher be shot and killed, a federal appeals court has ruled. The drawing, sent from a home computer, showed a pistol pointed at a person’s head and…

Jul 6, 2007 1:29 PM CDT

Split in School Worship Case

A fractured ruling by a federal appeals court permits an evangelical Christian church to hold Sunday worship services in a school building, at least temporarily. Two judges differed on whether the ban violated the church’s First Amendment rights, and a third said the case is not yet ripe for review.…

Jul 5, 2007 2:43 PM CDT