March 2009 Archives

Today, Freedom Watch announced the filing of a class action lawsuit by shareholders of AIG to force the directors of the company to themselves pay back the millions in illicit bonuses, dividends and other perks they paid out to themselves and other officials who destroyed the company's financial standing.

The lawsuit, filed in the federal court in Los Angeles, is wide reaching and will accomplish what Congress cannot, given the patent illegality of its taxing scheme, which violates the U.S. Constitution as it would tax ex post facto and discriminately.

Larry Klayman, the Chairman and General Counsel of Freedom Watch, who represents the shareholders in their class action suit, issued this statement:

"Today, the American people, not the compromised ruling elite in Washington, D.C., have begun a second American Revolution to take the country back from the con men on Wall Street, and on Pennsylvania Avenue - who under successive administrations played a central role in the meltdown of the U.S. financial system and economy. Freedom Watch will not rest until justice is done and it won't come from the Obama administration, bent on deceiving the U.S. taxpayer that it intends to clean up this corruption, all the while lining the pockets of its friends at AIG with government bailout money, who gave handsomely to have the President elected."

The lawsuit also seeks to recover, from the directors, the losses of the shareholders of the last many months and years, as well as to make AIG whole under new leadership, without the use of government money.

A copy of the complaint can be found at www.freedomwatchusa.org

Source: Freedom Watch

A new report released today by The Justice Project analyzes the cases of thirty-nine innocent Texans who collectively spent more than five hundred years in prison for crimes they did not commit. Convicting the Innocent: Texas Justice Derailed also presents reforms Texas must implement in order to improve the quality of evidence used in criminal cases and reduce the risk of wrongful convictions.

The report finds that while DNA analysis is an invaluable tool, it alone cannot prevent the wrongful convictions that arise from unreliable evidence. The report also analyzes the many costs to society each time a wrongful conviction occurs, including the crimes committed by the actual perpetrators following the conviction of the wrong person.

Among the report's key findings:

• Innocent Texans exonerated by DNA spent about 548 years in prison for crimes they did not commit.

• Eyewitness misidentification is the leading cause of wrongful convictions exposed by DNA in Texas, present in eight-five percent of wrongful conviction cases.

• Other factors leading to Texas wrongful convictions include: false confessions and guilty pleas, suppression of exculpatory evidence, false testimony from informants or accomplices with incentives to lie, false forensic testimony, and unreliable or limited forensic methodologies.

The full report is available at www.TheJusticeProject.org.

"It is essential to learn from these mistakes when they are discovered," said Edwin Colfax, director of state reform campaigns at The Justice Project, "so that we can address systemic flaws and ensure the most reliable evidence possible in our courts."

The report details how the devastation these cases have wrought begins with the wrongly convicted, but extends out to the family members, jurors and victims who become embroiled in a terrible injustice. According to the report, "In each of these innocence cases, a criminal investigation into a serious, violent crime was shut down prematurely when authorities prosecuted the wrong person."

Legislation is pending in the Texas Legislature that would reform eyewitness identification procedures, require electronic recording of custodial interrogations, and increase safeguards against unreliable informant testimony, among other reforms.

The Justice Project (TJP) is a non-profit, non-partisan organization dedicated to improving the fairness and accuracy of the criminal justice system. TJP is based in Washington, D.C. and has an office in Austin, Texas.

SOURCE The Justice Project

The two-year-long meltdown in real estate values and sales has generated confusing options confronting property owners fearful of losing their homes as they fall behind in mortgage payments.

One well-known Tampa Bay law firm, which specializes in helping clients avoid foreclosure and stay in their homes, has recognized the growing "vogue" of mortgage modifications: the simple-sounding but complex process of working with lending institutions to decrease mortgage principals or interest rates, or extend the time for mortgage loan repayment, all of which decrease the financial burden on homeowners.

At its best, it is a good solution for some, says Shawn Yesner, managing partner in the firm of Yesner & Boss. At worst, it is a scam that can plunge desperate homeowners even deeper into the mortgage morass.

"Our goal for our clients is to make it possible for them to keep their homes with an affordable modification, or at least to reduce or eliminate their liability under their loans," said Yesner. "We don't want to add to their financial burdens, so we keep our rates low, much lower than fees demanded by 'foreclosure-rescue' scammers. Our work always includes legal services provided by a Florida-licensed attorney who specializes in foreclosure issues."

Yesner cautions that mortgage modifications are not a quick-fix for everyone. Many mortgages that are modified still go into default in a matter of months. Yet, the advantages for the property owner with a successful modification is being able to keep the home at an affordable monthly price. The incentive for the lender is the opportunity to turn a non-performing loan back into a good investment and sidestep foreclosure action in which the lender winds up owning a property it cannot sell while maintenance costs keep growing.

"So many people are desperate to save their homes they are vulnerable to scammers," said Christopher Boss, a partner in the firm Yesner & Boss. "Any time a company guarantees results, it should raise a huge red flag. And Florida law requires that homeowners be given certain disclosure documents. If they aren't provided, that should be a huge red flag."

SOURCE Yesner & Boss

An Arizona jury today awarded a landmark verdict of $11 million to the widow of a 36-year-old man with traumatic brain injury who died after ingesting foreign objects while in the care of Liberty Manor Residency, a Phoenix assisted living facility. The verdict included $2 million for the decedent, $5 million for the wife and $4 million in punitive damages. It was the largest verdict ever awarded against an assisted living facility in the United States.

"I want this to be a lasting victory for all individuals with TBI or other disabilities living in assisted living centers or group homes," said Lydia Scherrer, widow of Earl Scherrer, who died May 7, 2006, at the age of 36.

Earl Scherrer suffered a severe traumatic brain injury as a result of a car accident in 1996. He lapsed into a coma and was not expected to recover. Despite doctors' assessment that Mr. Scherrer's condition was permanent, Lydia Scherrer refused to disconnect her husband's life support. Earl Scherrer remained in a coma for 16 months before he began to slowly emerge. With his wife's nurturing and support, he slowly started to speak, albeit slowly. Mrs. Scherrer worked with her husband day after day, using first-and second-grade reading and math textbooks and other elementary learning tools to stimulate his brain function and coax him to reach his full potential.

Lydia Scherrer devoted many hours per week to her husband's recovery, but she also had to work and was forced to turn to assisted living and residential facilities to provide the 24-hour care her husband needed. For years, she visited him faithfully on her days off, every Tuesday and Wednesday, checking him out of the facility and taking him home.

On April 7, 2006, Mrs. Scherrer placed her husband in Liberty Manor Residency, a facility that purported to provide 24-hour supervision of its residents. One month later - on May 7, 2006 - she received a call saying her husband had been vomiting. Mrs. Scherrer rushed over to Liberty Manor, brought her husband home and gave him a bath. Within a matter of minutes, he began vomiting black matter and died in her arms.

Autopsy results showed a number of items - including plastic bags, unopened catsup packets, candy wrappers and paper towels - were found in Earl Scherrer's stomach and small intestines. The medical examiner determined these foreign objects were significant contributing factors to his death. The autopsy read in part, "hypertensive heart disease due to mechanical obstruction of the GI [gastrointestinal tract] from the foreign objects."

Lydia Scherrer, represented by Craig Knapp, of the Scottsdale law firm of Knapp & Roberts, brought claims against Liberty Manor for abuse and neglect, wrongful death and punitive damages.

At trial, it came to light that Liberty Manor made numerous false entries in its charts with respect to Earl Scherrer's care, including notations of care on days when Mrs. Scherrer had checked him out of the facility. Liberty Manor was also unable to produce Mr. Scherrer's alleged caregiver, an employee named Raul.

"Lydia Scherrer did not walk away from her husband, in life or in death," said her attorney, Craig Knapp. "Her hope is that this verdict will force the assisted living facility industry to set and meet higher standards of care for their residents, resulting in enhanced protections for the defenseless individuals trusted to the care of others.

SOURCE law firm of Knapp & Roberts

Lawsuit Alleges that Drywall Emits Toxins Harmful to Humans and Property.

Jason and Melissa Harrell recently filed a class action lawsuit in Miami-Dade County Circuit Court on behalf of themselves and other homeowners who purchased defective homes. The Harrells allege that drywall installed in their new home, and those of their neighbors, emits destructive and harmful toxins and renders the homes unsafe and uninhabitable. The defective drywall was installed in the Harrell's home by the builder, South Kendall Construction Corp., and supplied by Banner Supply Company.

In January 2008, Jason and Melissa Harrell purchased their newly constructed home in Palm Isle Estates, a single family home community in Homestead, Fla. Shortly after moving in, the Harrells noticed foul odors in the home, their children began experiencing significant respiratory problems and Jason began suffering headaches. The Harrells also experienced problems with their air conditioning system, appliances, internal wiring and other electrical systems rendering them, in some cases, inoperable. Black soot appeared on the copper wiring in the home and in other places.

The Harrells repeatedly asked their builder to fix the problems, but it failed to correct them. The Harrells were forced to move out of their home and into a rental. With no resolution in sight, the Harrells turned to legal counsel. "The Harrell's thought they were buying their dream home," said Joey Givner, attorney for the Harrells. "Instead, they stepped into a nightmare." Several of the approximate 100 homeowners in the Palm Isles Estates have already relocated for similar reasons.

The lawsuit, brought by the law firms of Higer Lichter & Givner, The Blumstein Law Firm and Podhurst Orseck, alleges that the defective drywall emits toxins, including carbon disulfide, carbonyl sulfide and hydrogen sulfide. "These toxins pose serious health threats, including headaches, respiratory ailments and other health problems. They also corrode various metals within the structure of the homes and disrupt with the operation of electronic equipment," said attorney Mark Blumstein. "People buy homes for shelter and protection; not homes that make them sick."

According to the lawsuit, South Kendall Construction Corp. purchased this defective Chinese drywall from suppliers including Banner, a Miami-based company who supplied the drywall for the construction of the homes. It is believed that the manufacturer of the drywall exported approximately 67.3 million pounds of Chinese-made drywall into the United States, which is enough to build up to 7,500 average-size single-family homes. "There are many others experiencing the same problems as the Harrells," said attorney David Lichter. "Unfortunately, sometimes the only way to get companies to do the right thing is to sue them. The Harrells want a safe house, not a sick house."

A special phone line has been set up for those seeking information on the issue 305-356-7549.

SOURCE The Blumstein Law Firm

A San Mateo victim, 41, who had her neck broken, was paralyzed for life, and became a quadriplegic when her car was struck by a driver speeding through a red light was awarded $45 million in medical payments, wage loss, and pain and suffering, San Francisco victims' rights attorney Mary Alexander, who represented the woman, announced today.

The order was filed on March 16 following the judgment in San Mateo County Superior Court of California. The case is Tricia Roth vs. Division 1 All Service, Inc.

On September 11, 2006, the driver, Roman Pantoja, 72, an employee of Division 1, drove a Chevy truck through the red light at the intersection E. Hillsdale Boulevard and Franklin Parkway in San Mateo. Even though cars were stopped in both directions, he crashed into Tricia Roth. As Alexander told the Court, "There was no contributory negligence on the part of my client, Tricia Roth."

The Court found that driver Pantoja was working in the course and scope of his employment with Division 1 at the time of the accident. Pantoja was likely using the truck to pick up company supplies.

Court documents state that "when the cars came to rest, Tricia Roth could not move her legs... could not move her arms, she was rendered a quadriplegic. Her neck was broken."

"She will never be able to return to work" and "her life expectancy is reduced," Alexander said in the court brief. Alexander proved that Roth was going to lose annual income of $290,790 with benefits as a software consultant, totaling $7,038,991 over the rest of her work-life. Past medical bills totaled $1,557,131, and future medical care totals $10,758,944 in today's dollars.

Alexander explained that Roth "had been very active, swimming, horseback riding. A particular interest that she and her husband, Kay Huh, had was ballroom dancing. They were very good at it...it was very important to them, one of their activities that they enjoyed together." At the time of the accident, they had been married six years -- a young couple.

Huh now has become a near full-time caregiver, all the while trying to maintain his career in biotechnology. He was awarded $5,000,000 for loss of consortium (companionship) and $30,000 in past lost earnings.

With $15 million for pain and suffering for Roth, plus her medical and wage damages, the total damages to be paid are $45 million.

The presiding judge was the Honorable Beth Labson Freeman.

Alexander stated, "This is a tragic life-altering case. The award is a proper victory for the victims' rights."

Alexander is a past President of the Association of Trial Lawyers of America, (now the American Association for Justice) and past President of the Consumer Attorneys of California. She has spent over 25 years representing tort victims and their families. Her office is in San Francisco.

The order granting plaintiff's motion is: http://openaccess1.sanmateocourt.org/openaccess/CIVIL/civildetails.asp?casenumber=468850&courtcode=A&casetype=CIV&dsn

The Mary Alexander trial brief on the case may be found at: www.weinerpublic.com/Alexander_Roth_Trial_Brief.doc

The trial transcript is: www.weinerpublic.com/Alexander_Roth_Trial_Transcript_pdf

Contact: Bob Weiner/Rebecca Vander Linde 301-283-0821/202-329-1700

SOURCE Robert Weiner Associates for Mary Alexander

Berger & Montague, P.C. has filed a class action lawsuit in the United States Bankruptcy Court for the District of Delaware, Rieke, et al. v. Monaco Coach Corporation, Civil Action No. 09-50444-KJC, on behalf of 2,600 employees who were laid off by Monaco Coach Corporation in December 2008 and thereafter without receiving any notice. Monaco Coach Corporation, the manufacturer of luxury recreational vehicles headquartered in Coburg, Oregon, and traded on the New York Stock Exchange under the symbol MNC until trading was suspended on March 3, 2009, filed for Chapter 11 bankruptcy protection on March 5, 2009. The lawsuit claims that Monaco violated the Worker Adjustment and Retraining Notification Act (the "WARN Act") which provides that employers must give sixty days notice to employers prior to a plant closing or mass layoff. The lawsuit seeks sixty days wages and benefits in lieu of the notice.

The lead plaintiffs, Randy Rieke, Cary Rieke, Gary Betts, Joyce Betts, Michael Dager, Angel Dager, Diana Hensley, and Jenny Ossthun, were all employed by Monaco at its headquarters in Coburg, Oregon. However, the lead plaintiffs filed this lawsuit on behalf of all employees who were part of the layoffs, including those who worked at Monaco's facilities located in Milford, Indiana, Wakarusa, Indiana, and Warsaw, Indiana.

"The WARN Act provides for sixty days advance notice of plant closings and mass layoffs to affected employees, and Monaco Coach Corporation has admitted publicly that it did not give such notice," said Shanon Carson of Berger & Montague, P.C., an attorney for the plaintiffs. "We will vigorously seek just compensation for our clients and their co-workers and ask simply that the company comply with the federal laws passed by Congress to protect employees from being abruptly terminated without notice, which substantially impacts their ability to find substitute work and support their families." Mr. Carson also noted that some of the lead plaintiffs and other affected workers are doubly impacted because they are husband and wife.

Former employees of Monaco Coach Corporation who were part of these layoffs can obtain additional information by calling Shanon Carson at (215) 875-4656, or by email at scarson@bm.net" target=_new>scarson@bm.net. This lawsuit is being prosecuted by the Philadelphia law firm of Berger & Montague, P.C. (www.bergermontague.com), which consists of over 60 attorneys who represent plaintiffs in complex litigation. The firm's Employment Law Group has extensive experience in representing employees in class and collective action litigation, and the firm has played lead roles in major cases for almost 40 years resulting in recoveries of billions of dollars for its clients and the classes they represent.

SOURCE Berger & Montague, P.C.

Lawsuits brought by the families of six Pennsylvania men who died of malignant mesothelioma were successfully resolved this past week, announced Baron & Budd, P.C. The deceased men -- an electrician, a carpenter, a pipefitter, a maintenance worker, a weekend home remodeler, and a Navy sailor -- had all been the victims of occupational asbestos exposure.

Asbestos exposure has been known for decades to cause mesothelioma, lung cancer, and other cancers. Asbestos exposure kills an estimated 10,000 people a year in the U.S. alone. Mesothelioma is a cancer of the lung's lining. The cancer is incurable. Asbestos caused mesothelioma leads to the deaths of approximately 3,000 Americans each year.

"Before mesothelioma took their lives, each of these men asked our law firm to take care of their families," said John Langdoc of Baron & Budd. "We hope that through this verdict, we've gone beyond that, and that we have also been able to shape future safety policies of companies who choose to use hazardous substances in their consumer products. It was an economic analysis for these companies, asbestos was known to cause cancer, but it was cheaper to use."

Three of the cases settled before verdict for more than $1 million each. The remaining three cases were tried to verdict against Ericsson, Inc., Georgia-Pacific, and Melrath. In what is believed to be the nation's first asbestos verdict against a wiring manufacturer, an electrician was exposed to asbestos in the lining of certain Anaconda electrical wiring that he used while working at a printing company.

The six Philadelphia, Pennsylvania cases involved:

• An electrician who was exposed to asbestos in the lining of certain Ericsson, Inc. "Anaconda brand" electrical wiring.
• A professional carpenter and remodeler who was exposed to Georgia-Pacific asbestos-containing joint compound.
• A weekend and evenings home remodeler who was exposed to Georgia Pacific asbestos-containing joint compound.
• A maintenance worker who was exposed to asbestos fireproofing and gaskets in boilers made by Kewanee, now known as Oakfabco;
• A pipefitter who for many years was exposed to asbestos-containing pipe insulation and asbestos gaskets used to join hundreds of miles of pipe at a large chemical plant.; and
• A Navy sailor who was exposed to asbestos-containing gaskets made by Crane Co.

Baron & Budd attorneys John Langdoc, Eric Brown and Chris Norris represented the families at trial. Dallas-based Baron & Budd has been a leader in asbestos litigation for decades and has been responsible for uncovering evidence of egregious misconduct by the asbestos industry and for discovering asbestos exposure from products not previously known to present a risk.

SOURCE Baron & Budd, P.C.

The Small Business Administration (SBA) is being sued by the American Small Business League (ASBL) in United States District Court, Northern District of California for refusing to release the telephone records of SBA Press Office Director Mike Stamler. The ASBL requested Mr. Stamler's phone records under the Freedom of Information Act (FOIA). The ASBL believes Mr. Stamler engaged in an aggressive campaign to mislead the media and damage the organization's reputation.

The ASBL has won a series of federal lawsuits against the SBA, which forced the disclosure of information showing that the SBA had fabricated federal small business contracting data and covered-up the diversion of hundreds of billions of dollars in federal small business contracts to Fortune 500 companies and other large businesses.

The ASBL expects to file an additional lawsuit against the SBA for refusing to release all of Mr. Stamler's emails for the years 2006 and 2007. The ASBL began requesting Mr. Stamler's communications after several journalists informed the organization that Mr. Stamler had libeled and slandered the ASBL and its President Lloyd Chapman, and embarked on an aggressive campaign to impugn the organization's credibility with members of the media.

In one such example, after the Long Island Business News (LIBN) quoted ASBL President Lloyd Chapman in a story, the LIBN reporter received a profanity-riddled email from Mr. Stamler. In response, the LIBN reporter published a blog titled, "Expletives the SBA's Forte?" (http://libn.com/libizblog/2008/02/22/expletives-the-sbas-forte/)

The ASBL intends to continue gathering information on Mr. Stamler's campaign to libel and slander the organization and its President Lloyd Chapman in preparation for another lawsuit to be filed against the SBA for defamation of character.

The SBA's own Inspector General has released several investigations that found blatant fraud and abuses in SBA administered small business contracting programs. (http://www.sba.gov/IG/05-15.pdf)

In the past, the SBA responded to federal investigations and news stories, which found billions of dollars in small business contracts had gone to Fortune 500 corporations with a series of press releases claiming that the diversion of federal small business contracts to large corporations was a myth. (www.asbl.com/documents/sbamythvfact.pdf)

"There is no question that Mike Stamler and the SBA have tried to cover up the diversion of small business contracts to Fortune 500 corporations," ASBL President Lloyd Chapman said. "Based upon the information we have obtained so far, it's obvious that they have launched a massive campaign to attack our organization and impugn our credibility as we continue to expose the rampant fraud and abuse that has gone unchecked since 2002."

SOURCE American Small Business League

Nearly three years after the Japanese government refused to prosecute Toyota executives for concealing a steering rod relay defect until after a horrific accident occurred in Japan, O'Reilly & Danko has filed a Complaint in Los Angeles Superior Court on behalf of the late Levi Stewart's parents. Levi Stewart died on September 15, 2007 when his Toyota truck's steering relay rod snapped and he crashed, due to the total loss of steering control. Levi was killed, and his friends were seriously injured.

The Stewarts contend that Toyota should have issued the recall in the mid-1990s when Toyota first learned that steering rod relays were snapping, causing injuries and accidents due to the loss of steering. Had the Toyota executives issued the recall then, the Stewarts believe that Levi Stewart would be alive today. The Stewarts never received notice of either the Japanese or the later U.S. recall.

In 2004, local police in Komamoto, Japan investigated a frightening accident when the steering relay rod in a Toyota Hilux Surf (4-Runner) snapped, causing it to cross a median and strike another vehicle head-on. The police learned that Toyota executives had known since the mid 1990s that the steering rods were defective, but had refused to issue a recall then. Only after the media storm from Komamoto did Toyota issue a recall, but only in Japan, and not any other country in which their vehicles were sold.

Toyota knew that it had installed this same part, the defective steering relay rod, into nearly 1 million vehicles in the United States. In 2004, Toyota told the U.S. government it "had received field information from the Japanese market but no similar information from the U.S. Market had been received." This was untrue. O'Reilly & Danko's investigation has uncovered multiple accidents caused by the defective relay rods, which had been reported to Toyota or their dealers before the Japanese recall. The lawsuit alleges that Toyota, in fact, had notice of steering rods failing in the United States, when they told NHTSA otherwise. O'Reilly & Danko's investigation continues at www.ToyotaSteeringRecall.com.

Toyota eventually issued a recall in the United States in 2005, but due to the lackadaisical effort by Toyota only approximately 32% of the trucks were repaired after a year and a half. The generally accepted pass/fail rate for automotive recalls is 70%. "32% may be acceptable for the Red Sox lead off hitter. For an automotive recall where drivers can lose steering, it's an utter failure," said their attorney, John P. Kristensen of O'Reilly & Danko.

SOURCE O'Reilly & Danko

Holy House Shipping AB, a Swedish corporation, was sentenced today in U.S. District Court in Camden, N.J., to pay a $1 million fine, a special assessment of $400,000 in community service payments and serve three years of probation for failing to maintain an accurate oil record book in an attempt to conceal illegal discharges of oil-contaminated waste directly into the ocean from one of its ships, the Justice Department announced.

Under the terms of the plea agreement approved by U.S. District Judge Jerome B. Simandle, the $400,000 special assessment will go to the congressionally-established National Fish and Wildlife Foundation to be used for projects to restore and protect fragile marine habitats in New Jersey.

According to documents filed in the case, on Feb. 27, 2008, U.S. Coast Guard inspectors from Coast Guard Sector Delaware Bay boarded the M/V Snow Flower, a 568-foot, Cook Island flagged ocean-going ship, at the marine terminal in Gloucester, N.J., to conduct a routine inspection. Coast Guard inspectors reviewed the ship's oil record book, a required log in which ship engineers must record all transfers and discharges of oil. Inspectors identified a number of discrepancies related to the capacity and use of the ship's oil water separator. In addition, the inspectors identified a pipe that was believed to be used to discharge oil contaminated waste directly to the sea, bypassing the oil water separator.

Prior to the vessel entering the Gloucester Marine Terminal, crewmembers who worked in the Snow Flower's Engine Room Department, contacted members of the Coast Guard Sector Bay and reported that the ship's chief engineer had ordered the discharge of oily water and oil sludge overboard on the vessel's most recent voyage from Los Angeles to Chile and again on the return voyage to the United States. The crewmembers stated that the discharges were ordered in the Pacific and/or Atlantic Oceans and were accomplished by using a metal pipe connected to the vessel's starboard bilge holding tanks. During today's hearing, Judge Simandle ordered $375,000 be awarded to the two whistle blowers for their efforts.

The chief engineer, Igor Krajacic, pleaded guilty to failing to maintain an accurate record book on Nov. 3, 2008, and was sentenced on Jan. 16, 2009, to an $8,000 fine.

"Holy House Shipping violated our nation's environmental laws and today the company is paying for it," said John C. Cruden, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. "Deliberate pollution from ocean-going ships is a continuing problem. Today's fine sends the message that we will continue to prosecute those who ignore laws meant to protect the environment."

"The Coast Guard is committed to aggressive enforcement of U.S. laws and international requirements designed to prevent pollution at sea. We thoroughly investigate credible reports of alleged illegal discharges of oil and/or tampering with shipboard anti-pollution equipment or falsifying oil discharge records," said Captain David Scott, Commanding Officer of the U.S. Coast Guard's Sector Delaware Bay. "We work closely with appropriate state and other Federal law enforcement agencies to prosecute environmental crimes, to promote compliance with these important environmental protection statutes."

"We work closely with the U.S. Coast Guard to investigate those who take shortcuts and dump waste oil and contaminated bilge water directly into the ocean," said William Lometti, Special Agent in Charge of Environmental Protection Agency's Criminal Investigation Division in New York. "Today's sentence should send a clear message that those who violate the law and pollute the ocean will be vigorously investigated and prosecuted."

As part of its probation, Holy House Shipping must implement an Environmental Management System/Compliance Plan (EMS) to ensure there is no future dumping from the ships it operates and manages that conduct business in U.S. ports. The company must hire a third party auditor to ensure it is following all procedures identified in the EMS. The auditor will have access to all of the company's ships and records. Additionally, each of the auditor's reports will be sent to the Coast Guard, the probation office, the U.S. Attorney's Office and the Justice Department's Environmental Crimes Section, at the same time the report is sent to the company.

The case was investigated by the U.S. Coast Guard Investigative Special Agents, U.S. Coast Guard Delaware Bay, and the Environmental Protection Agency's Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Ronald Chillemi and Trial Attorney Gary Donner of the Environmental Crimes Section.

SOURCE U.S. Department of Justice

Despite a surge in actions taken by bank regulators, overall mortgage litigation eased, according to the Fourth Quarter 2008 Mortgage Litigation Report released by http://www.MortgageDaily.com. The analysis, based on active cases covered by MortgageDaily.com, was prepared in conjunction with the law firm of Weiner Brodsky Sidman Kider PC, which is known as a leader for its work in mortgage banking litigation.

A total of 202 active cases were tracked in the latest report. Many fell into more than one of the 22 categories covered during the latest period. Excluding regulatory-only actions, 46 cases were tracked -- tumbling from 74 cases in the third quarter but about the same as the quarterly average for 2007.

The biggest volume of activity was with regulatory actions, which jumped to 161 from the third quarter's 126 -- reflecting deteriorating capital at the weakest U.S. banks. Investor class actions eased, though 11 cases were still tracked.

After no third-quarter activity -- four mortgage-backed securities lawsuits, three mortgage employment lawsuits and three suitability cases were tracked in the fourth quarter.

Most categories, however, saw a decline during the fourth quarter.

Cases tied to mortgage compliance tumbled from 18 in the third quarter to six during the latest period. Mortgage fraud litigation was down similarly, falling to five cases in the fourth quarter from 18. Secondary marketing lawsuits fell from 12 cases to just three.

Mortgage fee lawsuits were down by half in the fourth quarter, while predatory lending actions declined 43 percent.

Likely reflecting private and public efforts to stem foreclosures, fourth-quarter foreclosure lawsuits were off by more than half.

Read the full Fourth Quarter 2008 Mortgage Litigation Report.

SOURCE MortgageDaily.com

Litigation sparked by financial losses investors suffered due to the alleged Madoff Ponzi scheme will be the focus of a half-day seminar and webcast scheduled to take place at Chicago's Gleacher Center on the afternoon of June 8, 2009.

The program is being produced by HB Litigation Conferences, formerly Mealey's Conferences.

"The faculty and agenda are being pulled together now, and will be adjusted as this dramatic legal and financial story unfolds," said Tom Hagy, president of HB Litigation Conferences.

Sharon Boothe, vice president at HB, added, "We are thrilled to be working again with Philip Bentley of Kramer Levin who did an extraordinary job moderating and speaking at our New York seminar."

Bentley, a partner with Kramer Levin Naftalis & Frankel LLP in New York, currently represents numerous defrauded Madoff investors with respect to their rights in connection with potential litigation. In the Bayou Group bankruptcy, Bentley represented 70 former hedge fund investors in litigation brought by Bayou to recover redemption payments.

The Chicago seminar will start at 1 p.m. and end at 5 p.m. local time (2 p.m. to 6 p.m. ET). The price to attend in person or via webcast is $595. The program will be fully accredited for continuing legal education (rules vary by state).

For the latest details on the Chicago Madoff program, or to order the recording package from the New York Madoff program, go to www.LitigationConferences.com. A free excerpt of the session on clawback litigation, featuring Bentley and Jeff Marwil of Proskauer Rose has been posted on the site.

SOURCE HB Litigation Conferences

In a 59 page decision issued yesterday, a three judge panel in Portland Oregon ruled that a man who was sexually assaulted in the 1960s by a priest can pursue his civil lawsuit for damages against the Holy See. It's the first time in history that a victim has won this right.

Attorneys for the victim argue that in a rigid hierarchy like the Catholic church, decisions come from Vatican, so it's crucial that the Vatican be held responsible for on-going cover ups of clergy sex crimes. "They say the ruling sends a clear signal that anyone who enables American kids to be molested will face legal consequences. It will help prevent future child assaults and cover ups of those assaults. It also signals that the Vatican is not above the law."

The case involves Fr. Andrew Ronan, who is accused of molesting kids in his native Ireland. He was then sent to Chicago, where he allegedly abused three boys, and finally transferred to an Oregon Catholic school, where he reportedly assaulted the victim in this case. Ronan is now deceased.

The case was argued by Professor Marci Hamilton of Philadelphia, a Cardozo law school faculty member. Defending the Vatican was attorney Jeff Lena of Berkeley, CA.

Important deadlines are approaching for class members of a proposed class action settlement related to the average wholesale prices of certain prescription drugs. The United States District Court for the District of Massachusetts granted preliminary approval of the Proposed Settlement in July 2008. In the lawsuit, In re: Pharmaceutical Industry Average Wholesale Price Litigation, No. 01-CV-12257-PBS, MDL No. 1456, plaintiffs claimed that drug manufacturers unlawfully inflated the published average wholesale price of certain drugs, increasing what certain consumers and others paid. The defendants deny any wrongdoing.

Consumers who paid percentage co-payments or full payments for any of the covered drugs between January 1, 1991 and March 1, 2008 are eligible for money back. (A percentage co-payment varies with the cost of the drug; refunds are not available to those who paid flat co-payments.) Requests to be excluded from the Settlement and objections to the Settlement must be postmarked by March 16, 2009. Consumer Class Members must file claims by May 1, 2009.

The Proposed Settlement includes approximately $21.8 million for payments to consumers who file valid claims. Qualifying consumers can get a minimum of $35 by certifying under oath that they paid percentage co-payments for the covered drugs. Or, with receipts or bills for percentage co-payments for the covered drugs, they can receive more money back. For some of the drugs, the payment is up to three times the amount of the co-payment.

The approximately 200 covered drugs are used for the treatment of many medical conditions and are often, but not always, injected in a doctor's office or clinic. The drugs include those for treatment of cancer, HIV, asthma, allergies, infections, inflammation, pain, gastrointestinal, lung and blood issues, and other conditions.

The Defendants, 11 drug manufacturers, deny any wrongdoing, and have stated that while they believe they have strong defenses to the claims asserted, they have entered into the Settlement as a reasonable way to resolve the litigation and avoid the further expense, burden, and inconvenience that would result if they continued to litigate.

The Court will hold a Final Approval Hearing on April 27, 2009 at 2:00 p.m. to consider whether the Proposed Settlement is fair, reasonable, and adequate and the motion for attorneys' fees and expenses. For detailed information, including a list of all the covered drugs and a claim form, call toll-free 1-877-465-8136, visit www.AWPTrack2Settlement.com, or write: AWP Track 2 Settlement Administrator, P.O. Box 951, Minneapolis, MN 55440-0951.

SOURCE AWP Track 2 Settlement Administrator

On February 6th 2009, a federal jury in Chicago returned a verdict against Publications International Ltd. (PIL) of Lincolnwood, Ill., and awarded $5.6 million to The Smart Marketing Group, Inc. (SMG) in damages resulting from PIL's breach of a 2003 contract.

According to the lawsuit filed in January 2004, PIL's "Consumer Guide" division contracted with SMG of Los Angeles, Ca. to market and sell certain "Consumer Guide" products to automobile dealers. SMG alleged that it exceeded its sales and revenue targets but Consumer Guide failed to provide the products and services it promised to the dealers. "The jury clearly agreed with SMG that PIL acted in bad faith by terminating the relationship when there was no cause to do so," said attorney William Ziegelmueller of Chicago.

"PIL and Consumer Guide wrongly put us out of business, then wrote letters to all of our dealers to damage our reputation when it was really Consumer Guide that failed to perform," said Michael Welch, the CEO of SMG. "It was the dirtiest kind of pool."

"No amount of money can make up for what they purposely did to our business and our reputation over the past five years," said Bill Magarity, SMG's President. "At that time in our careers, we were the number one dealer sales organization in the country. We had sold more than 7,000 auto dealers into advertising and internet programs, and Consumer Guide took everything from us. Fortunately, after five years of trial delays, a jury has vindicated us."

Conflicting trial testimony from PIL's top executives "proved that PIL did not deal honestly with us," according to Magarity, who also indicated that SMG intends to pursue a fraud claim against PIL in the event PIL appeals the verdict.

SOURCE The Smart Marketing Group, Inc.