After Prosecutor Resigns, Charges Dropped, for Now, Against 5 Gitmo Suspects

Charges have been dropped against five terrorism suspects at Guantanamo with links to Abu Zubaydah, an al-Qaida recruiter who was subjected to waterboarding during interrogations. Prosecutors say the charges were only temporarily dropped to give the government more time to prepare its case following the resignation of a military prosecutor,…

Oct 22, 2008 11:36 AM CDT

Credit Default Swaps Grab Attention of Prosecutors and the SEC Chairman

State and federal prosecutors in New York are investigating whether traders manipulated the market for credit default swaps, a kind of securitized insurance that protects against defaults on corporate bonds. The joint investigation by U.S. Attorney Michael Garcia of Manhattan and New York Attorney General Andrew Cuomo focuses on whether…

Oct 20, 2008 6:33 PM CDT

US Prosecutors in NY and NJ Add Lawyers to Probe Financial Firms

Federal prosecutors in New York and New Jersey are adding more lawyers to investigate financial firms for possible fraud and misrepresentation. U.S. Attorney Michael Garcia of Manhattan told Bloomberg he has added three prosecutors to his white-collar crime unit, for a total of 20 prosecutors, and assigned eight lawyers to…

Oct 17, 2008 3:10 PM CDT

AIG to Allow Cuomo to Review Executive Compensation

Bending to criticism from New York Attorney General Andrew Cuomo, the American International Group will allow Cuomo’s office to review its spending, including its payments to executives who have since left the company. The insurer will allow Cuomo to review compensation and bonuses paid to senior executives and will work…

Oct 17, 2008 12:50 PM CDT

Brothers Sue Texas Lawyer Who Got Them $1.7M in False Arrest Case

Two Texas brothers who won a $1.7 civil rights settlement in a false arrest case that brought down the local district attorney are now suing their own lawyer. At issue in the new breach-of-contract case is litigation costs: A state court judge approved reimbursement by the losing Harris County defendants…

Oct 16, 2008 9:35 PM CDT

Disbarred Prosecutor’s Guitars Sold at Auction

Three guitars owned by the disbarred prosecutor in the Duke University lacrosse case were sold at a bankruptcy auction for $5,100. Former Durham County District Attorney Mike Nifong filed for bankruptcy in January after he was sued for malicious prosecution by three lacrosse players who had been wrongfully accused of…

Oct 14, 2008 12:31 PM CDT

Faulty Eyewitness IDs, Flawed Procedures Helped Convict the Innocent

Faulty eyewitness identifications, often encouraged by flawed police procedures, were the reason why 18 of 19 men cleared by DNA evidence since 2001 were initially convicted in Dallas County, Texas, of crimes that they didn’t commit. Although the county has led the nation in the number of defendants exonerated by…

Oct 13, 2008 5:14 PM CDT

Courts in Chicago Struggle to Protect Domestic Violence Victims

Victims of domestic violence in Chicago have a special court at which they can seek help. But, suffering from staff shortages and a deluge of cases, it doesn’t work as well as those who created it nearly 25 years ago hoped it would. Fewer than 1 in 5 of the…

Oct 10, 2008 11:03 PM CDT

Judge Axes Evidence in Sen. Stevens Case, Due to Prosecutor Errors

The judge in the corruption case against Sen. Ted Stevens, R-Alaska, has eliminated some evidence due to Brady violations. Because prosecutors didn’t turn over exculpatory evidence to the defense, as required, two sets of evidence will be excluded. They are: business records related to potential testimony by a construction foreman…

Oct 9, 2008 12:11 AM CDT

Drug Forfeiture Fund to Help Restore Historic Texas Courthouse

Ordinarily, money forfeited in drug-related cases goes to purchase needed equipment. But officials hope to give a historic courthouse in Kleberg County, Texas, a facelift with the help of a $200,000 contribution from the district attorney’s forfeiture fund, reports KIII-TV, an ABC affiliate. “In this case, how better to use…

Oct 7, 2008 11:32 PM CDT

False Affair Claim Doesn’t Get Remaining Prosecutors Booted

A false claim of an affair that spurred 250 California-based prosecutors to remove themselves from a corruption case hasn’t resulted in the ouster of the final two assistant U.S. attorneys. A federal judge refused last week to reconsider his decision allowing two federal prosecutors to continue handling the prosecution of…

Oct 7, 2008 2:10 PM CDT

Calif. Prosecutor Arrested on Suspicion of Rape, Makes $1M Bail

A veteran California prosecutor has been arrested on suspicion of rape in an alleged incident reportedly involving another Contra Costa County deputy district attorney. He has posted $1 million bail. Michael Gressett, 51, is on paid administrative leave after being arrested Thursday on suspicion of four felonies—rape, oral copulation, sodomy…

Oct 6, 2008 10:13 PM CDT

No Mistrial for Senator Stevens

A federal judge in Washington, D.C. Thursday refused to declare a mistrial in the corruption trial of Sen. Ted Stevens, R-Alaska, despite a finding that prosecutors failed to turn over potentially exculpatory information to the defense. U.S. District Judge Emmet G. Sullivan took prosecutors to the woodshed, saying “the court…

Oct 3, 2008 10:32 AM CDT

Sources: No Bear Stearns Indictment

Investment bank Bear Stearns – the collapse of which in March began the current Wall Street crisis – will avoid indictment by federal prosecutors examining possible wrongdoing by financial professionals, two anonymous sources tell the Washington Post. But two of its former fund managers are battling criminal charges for allegedly misleading investors about the financial health of their unit.

A pattern of prosecutors going after individuals, while sparing the companies they work for, is likely to develop as law enforcement probes of the mess on Wall Street expand, the paper reports. Last week, the FBI announced 26 investigations underway at companies including Fannie Mae, Freddie Mac, Lehman Brothers, and American International Group.

Oct 3, 2008 9:50 AM CDT

Judge Considers Dismissing Stevens Indictment over Withheld FBI Records

Updated: A federal judge heard arguments Thursday on whether to dismiss the indictment or declare a mistrial in the prosecution of Alaska Sen. Ted Stevens. U.S. District Judge Emmet Sullivan suspended Stevens’ trial because of revelations the government did not disclose FBI records that could have helped Stevens’ defense, report…

Oct 2, 2008 4:11 PM CDT