Scott Allen, of Atlanta, was charged last week with securities fraud and insider trading in the U.S. District Court Southern District of New York, according to the Wall Street Journal. The government alleges that Mr. Allen and John Bennett of Norwalk, Connecticut, conspired to make more than $2.6 million in profits on insider trades of pharmaceutical stocks. Mr. Allen was a former employee of Mercer, a gloabl human resources consulting firm, and Mr. Bennett was an independent film producer and stock trader. The criminal complaint against the defendants charges that Mr. Allen allegedly obtained information regarding acquisitions by pharmaceutical companies in 2008 and 2009, and gave the information to Mr. Bennett. Mr. Bennett is charged with using the information to make $2.6 million in trades, while paying Mr. Allen $100,000 in kickbacks.
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As reported by Reuters, last week, the U.S. District Court for the District of Columbia declared a mistrial in the trial of four arms salesmen for alleged bribes under the Foreign Corrupt Practices Act (FCPA). The defendants, Andrew Bigelow, Pankesh Patel, Lee Tolleson and John Wier, were accused of attempting to bribe two individuals who were posing as representatives of the defense ministry of the African nation of Gabon in order to win a $15 million deal to provide guns, body armor and other equipment. The defendants were alleged to have told the informants that they would add a 20 percent commission to any prices quoted as bribes. The mistrial was declared following a six week trial in which the jury failed to reach a unanimous verdict after six different votes.
The sting operation, which involved a staggering 250 FBI agents, resulted in 22 individuals being charged, including a former U.S. Secret Service agent and an executive for U.S. firearm manufacturer Smith & Wesson Holding Co. Department of Justice officials have informed the media that the Department intends to retry the case. Three of the 22 individuals charged as a result of the sting have pled guilty. Trials have been scheduled for the remaining defendants.
Luis Posada Carriles was 30 years old at the time of the 1959 Cuban Revolution. He was sent to prison by the regime of Fidel Castro and subsequently sought asylum in Mexico. Posada then emigrated to the United States where he helped to organize President John F. Kennedy's and the CIA's failed 1961 Bay of Pigs invasion. He then returned to the U.S. where he became a 2nd Lieutenant in the U.S. Army and was active in the CIA's Operation 40--a guerilla force which operated covertly to overthrow the Castro regime. Posada also developed close ties to anti-Castro groups in the U.S., including the Cuban American National Foundation.
Eventually suspected by the CIA of alleged involvement in several bombing plots, Posada relocated to Venezuela in 1968. Carriles became a chief of operations for Venezuela's intelligence agencies. The CIA severed all ties with Posada in 1976, on suspicion that he was allegedly involved in cocaine trafficking. That same year, he was arrested in Venezuela for alleged involvement in the bombing of Cubana airlines flight 455, which killed all 73 people on board. He was acquitted in a trial in military court, however the verdict was overturned and Posada was retried in a civil court. He escaped from prison in Venezuela and sought asylum in Chile.
Posada was imprisoned in Chile until 1985, when he escaped from prison again, dressing as a priest. He fled to El Salvador, where he again became involved in U.S. activities in the region, helping to provide supplies to the Contra forces opposed to the Sandinista regime of Nicaragua for the administration of President Ronald Reagan. Following the Reagan administration, Posada became a security advisor to the Guatemalan government. He was shot in Guatemala City in 1990, upon information and belief by Cuban agents.
Posada was implicated in a series of bombings in Cuba in 1997 which killed a Canadian citizen and wounded 11 other people. He was arrested in Panama City in 2000 with 200 pounds of explosives which were allegedly to be used to assassinate Castro, who was to visit Panama for the first time since 1959. In 2004, Panamanian President Mireya Moscoso pardoned Posada and his alleged co-conspirators. Posada requested asylum in the United States in 2005, and he was detained by the Department of Homeland Security, which sought to deport him. He was released on bond in 2007, and was indicted on seven counts of alleged immigration fraud. In 2009, a grand jury in El Paso, Texas, issued a superseding indictment against Posada, charging him with 11 counts, including immigration fraud, obstruction of a terrorism investigation and terrorism charges relating to the 1997 Cuban bombings. As reported by the Miami Herald, Posada was tried in a 13 week trial in the Western District of Texas in 2010. The jury took 3 hours to find him not guilty on all charges.
Last week, the 83 year-old Posada received a gala dinner in Miami by Cuban exile organizations including Alpha 66, intended to help defray his legal expenses. Posada's counsel stated that they believed that the jury was favorably disposed to Posada as a result of his military history. However, as a result of his 2004 Panamanian conviction, Posada is barred from seeking residency in the U.S. No other countries will accept Posada, however, besides Cuba and Venezuela, and the U.S. has refused to deport him to Cuba or Venezuela, citing concerns that he might be tortured. Venezuela has announced that it will re-file its petition to extradite Posada. Venezuelan President Hugo Chavez has called Posada the "biggest terrorist" on the continent, and Castro has denounced Posada as a "coward."
It is college football season, and appropriately the most notable news in an otherwise slow Federal criminal news day appears to be that the Federal Bureau of Investigation has interviewed John Bond, a former quarterback for the Mississippi State Bulldogs, regarding Auburn quarterback Cam Newton, according to the Atlanta Journal and Constitution.
Bond told Mississippi State officials in January that a former teammate had asked him for $180,000 in order to secure Newton's commitment to the Bulldogs. The teammate was subsequently revealed to be Kenny Rogers, another former player for the Bulldogs and owner of a company called Elite Football Preparation, which holds camps in Alabama, Chicago and Mississippi, and matches football prospects with colleges. Rogers, in turn, has publicly stated that he met with Newton's father, Cecil Newton, as well as assistant coaches for MSU, on November 27, 2009, in Starkville, Mississippi, and that Newton demanded between $100,000 and $180,000 in order to ensure that his son signed with the Bulldogs.
Newton originally signed a letter of intent with the University of Florida, where he spent the 2007-2008 season as a back-up quarterback to Heisman Trophy winner Tim Tebow. He subsequently transferred to Blinn College in Texas, where he led the Blinn Buccaneers to the NJCAA National Championship before signing with Auburn. According to ESPN, Cecil Newton told Rogers at the meeting that his son's transfer to Auburn was not going to be "free." Rogers was referred to Mississippi State booster and former Bulldogs offensive lineman Bill Bell. Bell confirmed to ESPN that Rogers did contact him to ask for money in exchange for Newton signing with Mississippi State. Rogers has stated that he doesn't know if Cam Newton knew about his father's demand for money. However, ESPN reported that recruiting sources for Mississippi State had disclosed that they had had telephone conversations with Cam Newton, as well as his father, that Newton's college choice would be based on a pay-for-play plan.
The allegations are further not limited to Newton's dealings with Mississippi State. One recruiter has reported that Cam Newton telephoned him after committing to Auburn and informed him that he had chosen Auburn over Mississippi State because "the money was too much."
Mississippi State compliance officials reported the allegations to Southeastern Conference compliance officials in January. The NCAA and the FBI are both conducting investigations into these allegations. The news has cast a shadow over Auburn's so-far undefeated season, and Newton himself, the current leading contender for the Heisman Trophy. Newton's reputation was already previously marred by charges of burglary, larceny and obstruction relating to an alleged stolen laptop while he was at the University of Florida.
The Federal investigation could result in criminal proceedings for conspiracy, fraud, bribery and other offenses. In a case which college football fans will have some familiarity with, U.S. v. Young, NO. 03-20400 BV, (W.D.Tenn. 2004), Tennessee businessman and University of Alabama booster Logan Young was indicted for structuring, in violation of 31 U.S.C. § 5324; Travel Act violations under 18 U.S.C. § 1952; and conspiracy, in violation of 18 U.S.C. § 371, for paying $150,000 to Lynn Lang, coach of Trezvant High School in Memphis, to ensure that high school defensive player Albert Means signed a letter of intent with Alabama. Young, Lang and Trezvant Assistant Coach Milton Kirk were subsequently convicted. Alabama was placed on probation for five years by the NCAA as a result of the conduct, and given a two year bowl ban. The University of Kentucky was given a one year bowl ban for a $6,000 payment by a booster to Lang in order to have Means visit the school. Similar misconduct was alleged against the University of Georgia, the University of Arkansas and the University of Memphis, however those schools were not sanctioned. An old Sports Illustrated article has more on the Means scandal.
The recap of the trial thus far of former Illinois Governor Rod Blagojevich, from the coverage of the Chicago Tribune's "Blagojevich on Trial" Blog and the Springfield State Journal-Register's Blagojevich trial coverage continues.
Thursday, June 17, 2010: Former Democratic Party fundraiser Joseph Cari testifies that Blagojevich spoke with him about presidential ambitions and getting contributions from businesses in exchange for awarding state business. Cari states that Antoin “Tony” Rezko told him he made decisions as to who got state work. Cari also testifies that he pressured venture capital firm JER, which was seeking to gain an $80 million allocation from Illinois’ teacher’s pension panel, to hire a consultant designated by Rezko, who would be paid a large finder’s fee. The defense gets Cari to admit that Stuart Levine—not Blagojevich—told Cari that JER would not receive the pension investment business unless it hired the consultant. Cari does admit that JER received the allocation even though it did not ultimately hire the consultant. Blagojevich’s attorneys point out that Cari did not tell federal investigators about his alleged conversations with Blagojevich until 82 days after they first contacted him, and attempts to portray Cari as lying to prosecutors in order to obtain a plea deal. Former Illinois Director of Boards and Commissions Jill Hayden testifies that she gave the most weight to recommendations by Rezko and Chris Kelly in selecting candidates to fill State boards. Rezko and Kelly selected five of the nine member Illinois Finance Authority (IFA). Hayden testifies that Rezko also called her and told her Levine needed to be reappointed to the Illinois Teacher’s Retirement System Board. Blagojevich aid Alonzo “Lon” Monk subsequently contacted Hayden and told her not to take any more calls from Rezko because the FBI had tapped his phones. Ali Ata, former head of the IFA, testifies that, in August 2002, he met with Blagojevich, Rezko, Kelly and legislator Jay Hoffman and gave Blagojevich $25,000 in return for a position in the administration. He states that gave Blagojevich another $25,000 in 2003 at Rezko’s request, and that Blagojevich had thanked Ata and said that he knew he was considering a job with the administration and that it had better be a job where Ata could “make some money.” Ata testifies that Rezko also came to him while he was Chief of the IFA seeking $16 million to refinance his restaurant businesses, stating that he would get the Governor to approve it. Ata states that he did not support the plan. Ata testifies that Rezko promised him a job on the Capital Development Board, but that the position was given to someone else. He also states that Rezko became increasingly paranoid about being bugged by federal investigators. On cross-examination, the defense attempts to have Ata admit that Blagojevich himself never informed Ata that he was receiving a State post in exchange for his campaign contributions.
Monday, June 21, 2010: John Johnston, owner of the Maywood and Balmoral race tracks, testifies that Lon Monk came to see in December of 2008 and asked him for a contribution right before the Governor signed legislation extending subsidies for race tracks. E-mails are introduced indicating that former U.S. Representative and White House Chief of Staff Rahm Emanuel supported Blagojevich in 2006 in exchange for the State authorizing a $2 million grant for construction of athletic fields for the Academy for Urban School Leadership, a school in Emanuel’s district. Former Deputy Governor Bradley Tusk testifies that Emanuel contacted him when the grant money for the school was held up, and that Blagojevich’s advisors said that the Governor wanted Emanuel’s brother, a wealthy Hollywood agent, to hold a fundraiser for the Governor. Tusk requested that Emanuel write a letter to the Chicago Tribune in support of the Governor’s programs. He also testifies that he met frequently with Rezko and Kelly during his tenure as Deputy Governor, and that he signed checks for Blagojevich when the Governor was not present. John Harris, Blagojevich’s Chief of Staff, testifies that Blagojevich had stated to him that he wanted to run for President. Harris testifies that Blagojevich directed him to block two investment firms from getting any State business on the grounds that the firms had failed to hire the Governor’s wife, Patti Blagojevich. Harris also testifies that Blagojevich was interested in finding a State position for his wife, including on the Illinois Pollution Control Board.
Tuesday, June 22, 2010: Harris testifies that Blagojevich became increasingly worried about his finances, including his legal bills of approximately $1.7 million from the law firm of Winston & Strawn. Blagojevich paid his legal expenses from his campaign funds. Harris testifies that Blagojevich considered appointing Illinois Senate President Emil Jones, and even himself, to the U.S. Senate seat vacated by President Barack Obama. However, when Jones caused an ethics bill which Blagojevich opposed to pass the Senate, Blagojevich allegedly told Harris that there was no way Jones would get the seat. Harris testified that he had conversations with Blagojevich regarding “how much” he could get for the Senate seat, including from wealthy businessmen Blair Hull and J.B. Pritzker. Harris testified that he and General Counsel Bill Quinlan told Blagojevich not to consider such ideas. Harris testified that Rahm Emanuel telephoned him and told him that President Obama was interested in having Valerie Jarrett, former Chairman of the Chicago Transit Authority, appointed to fill the seat. The prosecution plays an audio recording of a conversation between Blagojevich and Harris regarding Emanuel’s suggestion of Jarrett. Blagojevich asks Harris on tape what he can get for appointing Jarrett, including a potential appointment as Secretary of the U.S. Department of Health and Human Services.
Since the prosecution of former Illinois Governor Milorad R. “Rod” Blagojevich has rested its case, we take the opportunity to recap the testimony and evidence in the first 23 days of the trial, drawing upon the excellent coverage of the Chicago Tribune’s “Blagojevich on Trial” Blog, and also WGN-TV Team 9's Trial Coverage. For the serious follower of the trial, the U.S. District Court for the Northern District of Georgia has also made available virtually all the pleadings, exhibits and recordings from the trial to the public, which may be perused here.
Thursday, June 3, 2010: The trial of Blagojevich and his brother and co-defendant, Robert Blagojevich, begins in the U.S. District Court for the Northern District of Illinois in Chicago, U.S. District Judge James Zagel presiding. Blagojevich’s attorney, Sheldon Sorosky confirms that the defense has subpoenaed numerous individuals, including U.S. Senator and Senate Majority Leader Harry Reid, U.S. Senator Dick Durbin, U.S. Representative Jesse Jackson, Jr., White House Chief of Staff Rahm Emanuel and Presidential advisor Valerie Jarrett. Judge Zagel denies petitions from the media to disclose the identities of jurors. Jury selection begins.
Friday, June 4, 2010: Jury selection continues. Blagojevich speaks to media and states that he has been falsely accused, and will be vindicated.
Monday, June 7, 2010: Jury selection continues.
Tuesday, June 8, 2010: A jury of 11 women and seven men—12 jurors and six alternates—is selected. The defense files motion alleging that Blagojevich’s First Amendment right to free speech was “criminalized.” Judge Zagel rules that no “twittering” is allowed in the courtroom. Assistant U.S. Attorney Carrie Hamilton give opening statement for prosecution. Hamilton argues that Blagojevich had more than $200,000 in debt and viewed the election of former U.S. Senator for Illinois Barack Obama as President of the United States as a financial opportunity. The prosecution alleges that Blagojevich sought to be appointed Secretary of the U.S. Department of Health and Human Services (HHS) and for millions of dollars in donations to a charitable organization which Blagojevich would control in exchange for appointing Valerie Jarrett to Obama’s vacant Senate seat. Hamilton argues that Blagojevich later sought $1 million from Jesse Jackson, Jr., in exchange for the appointment. Blagojevich viewed the vacancy as a “golden ticket.” The prosecution also argues that Blagojevich, convicted real estate developer Antoin “Tony” Rezko, Christopher Kelly and Blagojevich’s former Chief of Staff, Alonzo “Lon” Monk, conspired to extort kickbacks from companies seeking business from the state. Rezko allegedly made payments of $12,000 per month to Blagojevich’s wife, Patti Blagojevich. Blagojevich is also alleged to have extorted tens of thousands of dollars from Children’s Memorial Hospital in Chicago in exchange for obtaining reimbursements for the hospital, and to have attempted to extract campaign contributions from then-U.S. Representative Rahm Emanuel in exchange for a $2 million grant to a school in Emanuel’s district. Blagojevich attorney, Sam Adam, Jr., argues that Blagojevich didn’t receive a dime from the alleged scheme. Adam argues that Blagojevich was naïve in trusting others, including Rezko.
Wednesday, June 9, 2010: FBI agent Daniel Cain testifies regarding the investigations of Rezko and Blagojevich. Lon Monk, Blagojevich’s former campaign manager, who pled guilty to conspiring to solicit a bribe and is cooperating with the government, testifies to Blagojevich’s fundraising in the 2002 campaign. Monk testifies that Blagojevich, Rezko, Chris Kelly and Monk had a meeting in 2003 to discuss how to profit from action by the state. Rezko listed nine money-making ideas and the participants agreed to divide the profits equally. Kelly, who owned a roofing company, committed suicide in 2009, and the Court prohibited any mention of him to the jury. Monk testifies that he and Rezko also gave their opinions on who should receive senior positions in Blagojevich’s administration. He testifies that Blagojevich and Rezko obtained a $500,000 kickback from lobbyist Robert Kjellander in exchange for selecting Bear Stearns to sell a $10 billion pension bond deal in 2003. Monk testifies that Rezko tried to start an insurance company using his connections, the profits from which would be divided with Blagojevich and Monk.
Thursday, June 10, 2010: Lon Monk testifies regarding Blagojevich’s appointments of donors donating $25,000 or more to State boards and commissions. He states that Rezko allegedly “hired” Patti Blagojevich and paid her a $150,000 retainer, despite the fact that Ms. Blagojevich performed no work. Monk testifies that Blagojevich entered an agreement with Illinois State Senator and Senate President Emil Jones to not override Blagojevich’s veto of a bill which would have limited fundraising in campaigns for governor. The prosecution plays a recording of a telephone conversation between Blagojevich and Monk about getting $4 million in campaign fundraising, with Blagojevich yelling at Monk to contact prior donors to send $5,000 or whatever they can send. Prosecutors play recordings of telephone conversations, including a conversation in which Blagojevich and Monk discuss Jesse Jackson, Jr. Monk testifies that Blagojevich instructed him to attempt to obtain a $500,000 donation from Jerry Krozel, head of a road construction association, in exchange for announcing $5 billion in toll road funding, before a new ethics law banning such large donations took effect.
Photo from Cleveland.com
Monday, June 14, 2010: Monk testifies that he felt pressure to bring in campaign funds. He testifies that Blagojevich met with him in 2008 and said that he wanted to meet with race track owner John Johnston and obtain a $100,000 donation, allegedly in exchange for signing legislation which would save money for Illinois race tracks. The defense cross-examines Monk. Michael Ettinger, attorney for Robert Blagojevich, gets Monk to admit that Rod kept his brother out of the political end of things, including the meeting concerning Johnston. Sam Adam asked Monk whether it was a crime for a politician to accept a campaign contribution for state action if there was no quid pro quo, or something offered in exchange. Monk subsequently responded that it was not. Adam questioned Monk regarding whether Blagojevich had ever indicated that he would not sign the race track legislation if Johnston did not make a campaign contribution.
Tuesday, June 15, 2010: Blagojevich’s counsel continue their cross-examination of Monk. Monk admits that he occasionally lied to Blagojevich in order to stop Blagojevich from bothering him about fundraising. Monk repeatedly admits that he does not remember specifics of meetings with Blagojevich, Rezko and Kelly. The defense points out that Monk accepted several $10,000 cash gifts from Rezko allegedly in exchange for his involvement in the scheme, however Monk had signed a statement for the prosecution stating that the amounts were gifts with no quid pro quo attached. Monk admits that he lied to the FBI in an earlier interview. The defense tries to suggest that Blagojevich knew nothing about the cash or illegal acts involving Monk and Rezko. Monk admits that Blagojevich never told him he would withhold the funding for the toll roads if he did not receive a contribution. David Abel, a public finance quantitative technician, testifies regarding a meeting with Blagojevich, Kelly and staffers regarding the $10 billion pension bond issue. Abel admits on cross-examination that Bear Stearns was rated as highly qualified to do the deal. Vincent Mazzaro, a member of Bear Stearns’ municipal bond department, testifies that the manager of the department would have hired Robert Kjellander, who allegedly paid a $500,000 kickback to Rezko to ensure that Bear Stearns was selected as elite manager for the sale of the bonds. Kjellander would receive a “success fee,” in this case $809,000. Joseph Aramanda, a friend of Rezko’s, testifies that Kjellander loaned him hundreds of thousands of dollars at Rezko’s direction to support Papa John’s pizza franchises which Aramanda had purchased from Rezko. Aramanda testifies that Kjellander did not ask for any documentation for the loan. He testifies that Rezko contacted him following his receipt of the loan proceeds and asked him to pay various individuals and entities whom Rezko owed money to. Aramanda also testifies that Rezko told him he was involved in appointments for cabinet positions in Blagojevich’s administration, and offered Aramanda a position in the Illinois Department of Aging. Rezko also approached Aramanda about being a middleman between the Illinois Teachers Retirement System (TRS) and investment firms seeking to invest TRS monies. Aramanda testified that Rezko introduced him to Sheldon Perkin, another middle man, and that he and Perkin received $375,000 each from a $50 million investment deal between TRS and Glencoe Capital.
Wednesday, June 16, 2010: Joseph Aramanda testifies that Sheldon Perkin paid him $375,000, in three installments, on the TRS/Glencoe Capital, deal despite the fact that he did no work on the deal. Rezko asked Aramanda to divert $50,000 from the first installment to the sister of one of Rezko’s business associates. Aramanda testifies that Rezko told him that he could earn at least $1 million a year in finder’s fees for securing state pension monies for investment firms. Rezko told Aramanda that he would take a cut of the fees paid to Aramanda and would share them with Blagojevich, Lon Monk and Chris Kelly. Armanda stated that when Rezko told him about the arrangement, he became uncomfortable and withdrew from the agreement. Blagojevich attorney Michael Gillespie questions Aramanda about making a $10,000 contribution in 2004 to Barack Obama’s campaign for the U.S. Senate. The prosecution plays audio recordings of telephone conversations in which Blagojevich discusses the interest Illinois businessman Blair Hull, who donated $467,000 to Blagojevich’s 2002 campaign, in the vacant U.S. Senate seat. Blagojevich calls Hull “an idiot.” IRS agent Shari Schindler testifies that, in investigating Rezko, the government found monies going to Chris Kelly and River Realty, a company affiliated with Patti Blagojevich. Joseph Cari, a former national Democratic fundraiser, testifies that he had a conversation with Blagojevich in 2003 regarding Blagojevich running for president, in which Blagojevich told him he would approach businesses for contributions in exchange for awarding state business. The prosecution requests a gag order for Blagojevich and his counsel to prevent them from making public comments and influencing the jury. Judge Zagel states that he will take up the request later.
Knoxvillenews.com has been intensively covering here, here, here and elsewhere the trial of David C. Kernell, son of Tennessee State Representative Mike Kernell of Memphis and former University of Tennessee student, who was charged in the U.S. District Court for the Eastern District of Tennessee with hacking into the electronic mail account of former Governor of Alaska and Vice Presidential candidate Sarah Palin in 2008. The jury received the case today, and is still deliberating. The trial began last week.
Kernell, 22, is charged with guessing the answers to various security questions to gain access to Palin's Yahoo! e-mail account shortly after she was chosen to be Arizona Senator John McCain's running mate during the 2008 U.S. presidential campaign. Screenshots, pictures and a new password for the e-mail account were then posted on the website 4Chan. Ten other individuals in the U.S. and abroad proceeded to access the account more than 70 times.
Kernell, who was a 20 year-old economics major at the time, was charged with identity theft and other offenses. Palin herself testified on Friday, and her daughter, Bristol Palin, testified last week. Kernell did not testify.
Assistant U.S. Attorney Greg Weddle argued to the jury yesterday that Kernell intended to do something malicious from the beginning. Authorities seizing Kernell's computer found a New York Times article questioning whether Palin was using private e-mail accounts for government business. Assistant U.S. Attorney Mark Krotoski quoted Kernell's message on the 4Chan discussion board: "'I'm not going to ruin someone's life' but I'll give you the key, the pass(word)." Weddle cited Kernell's statement to persons who posted the information for him on the website 4Chan "make me proud."
Kernell's attorneys defended that Kernell did not believe that such a high-profile public figure could use such a poorly protected e-mail account. They argued to the jury that Kernell only used information available in newspaper articles and from the official state of Alaska website, and that what Kernell did was stupid and closer to a prank than a crime.
Supreme Court Justice John Paul Stevens, who notified President Barack Obama last week that he will be stepping down from the Court when its current term is over in June or July, has written nearly 400 opinions over his nearly 35 year tenure on the Court. Justice Stevens has weighed in on many occasions on criminal law issues over the past three and a half decades. Contrary to the label commonly applied to Justice Stevens as a "liberal," like all Supreme Court Justices, he has sided with the government in criminal cases more often than not. However, Justice Stevens has been the originator of many opinions which have upheld and furthered the rights of the individual in criminal cases, some of the more notable of which are outlined below.
On sentencing issues, Justice Stevens authored the opinion in Apprendi v. New Jersey, 530 U.S. 466 (2000), the forerunner of the Court's landmark decisions in Blakely v. Washington, 542 U.S. 295 (2004) andUnited States v. Booker, 543 U.S. 220 (2005), in which the Court first famously held, in regard to New Jersey's "hate crimes" statute, that "[t]he Constitution requires that any fact that increases the penalty for a crime beyond the prescribed statutory maximum, other than the fact of a prior conviction, must be submitted to a jury and proved beyond a reasonable doubt."
Justice Stevens also issued the Court's opinion in Gall v. U.S., 552 U.S. 38 (2007), which sets forth the definitive current process for federal criminal sentencing. The Court in Gall held that district courts cannot consider the ranges recommended by the U.S. Sentencing Guidelines as presumptively reasonable, must consider the extent of any departure or variance from the sentencing range recommended by the Guidelines, and must explain the appropriateness of any unusual variance, and that appellate courts review all sentences imposed by a district court under a deferential abuse-of-discretion standard, reviewing for any significant procedural errors and for substantive reasonableness of the sentence. To calculate a defendant's sentence, a district court must first correctly calculate the applicable Guidelines range, then should consider all of the factors under 18 U.S.C. § 3553(a), and if the court determines to sentence the defendant outside the advisory Guidelines range, it must consider the extent of the deviation and adequately explain the sentence.
In regard to searches under the Fourth Amendment, Justice Stevens held that a search of a vehicle incident to a defendant's arrest could not be justified under circumstances where the defendant no longer had access to the vehicle in In Arizona v. Gant, 129 S.Ct. 1710 (2009). And while he upheld the police search in Maryland v. Garrison, 480 U.S. 79, 107 S.Ct. 1013 (1987), Justice Stevens wrote legal dicta which has formed the basis for many challenges to the scope of a search of areas which are not specified in a search warrant. In Payton v. New York, 445 U.S. 573 (1980), the Court affirmed that a man's home is truly his castle, and that the police may not make a warrantless, nonconsensual entry into a suspect's home in order to effectuate an arrest.
Justice Stevens has been an ardent opponent of capital punishment throughout most of his term on the Court and has been the author of numerous opinions limiting the application of the death penalty. In Atkins v. Virginia, 536 U.S. 304 (2002), the Court held that execution of "mentally retarded" offenders constituted cruel and unusual punishment, and in Thompson v. Oklahoma, 487 U.S. 815 (1988), ruled that juveniles under the age of 16 cannot possess the requisite culpability for imposition of the death penalty. And in Beck v. Alabama, 447 U.S. 625 (1980) the court mandated that, in capital cases, the jury must be instructed on, and permitted to consider, a verdict of guilt on a lesser included offense.
In other cases, Justice Steven held in Johnson v. California, 545 U.S. 162 (2005), that a State could not impose the burden on a defendant claiming a racially discriminatory striking of a juror pursuant to Batson v. Kentucky, 476 U.S. 79, to show that the striking was "more likely than not" the product of purposeful discrimination. He also held, in Hubbard v. U.S., 514 U.S. 695 (1995), that a federal court is not a department or agency of the United States for the purposes of making false statements in a matter within the jurisdiction of the United States pursuant to 18 U.S.C. § 1001.
The Blog wishes Justice Stevens a happy retirement and looks forward to the appointment of his successor.
As the final hours of 2009 were running out on New Years' Eve, U.S. Supreme Court Chief Justice John Roberts issued the Chief Justice's Year-End Report on the Federal Judiciary, available here, a tradition begun by Chief Justice Warren Burger in 1970 to address the most critical needs of the federal judiciary. The Chief Justice has used the Year-End Report in the past to call for salary increases for federal judges. However, this year, the Report merely states that the federal courts are operating soundly, citing the hardships experienced by the nation in 2009.
The Appendix to the Report surveys the workload of the federal courts in 2009. It notes that the total number of cases filed in the Supreme Court decreased by about 6.1% from 2007 to 2008, however the Court hear more cases argued and issued more signed opinions in 2008 than 2007. Filings in the Federal Circuit Courts of Appeals also declined 6% to 57,740, mostly due to a drop in appeals from the Board of Immigration Appeals.
The Year-End Report notes, however, that criminal case filings in federal district courts rose 8% to 76,655, and the number of defendants climbed 6% to 97,982, surpassing the previous record for the number of defendants, 92,714, set in 2003, and reached its highest level since 1932. Filings relating to immigration, fraud, marijuana trafficking, and sex offenses increased. The number of mmigration cases and defendants reached record levels, as a result of illegal re-entries and visa or entry permit fraud. Most of the increase was in five federal districts near the southwestern border. The Report also observes that, as of September 30, 2009, the number of persons under post-conviction supervision was 124,183, an increase of 3% from the previous year. Supervised release cases and pretrial services cases also rose by several percent.
The fallout from Fort Lauderdale attorney Scott Rothstein's alleged fraudulent scheme to bilk investors out of hundreds of millions continues to fall.
Florida Governor Charlie Crist has told the media that he will return campaign contributions received from Rothstein and employees of his law firm, a total of $76,250. The announcement by Crist follows a pledge by Florida Republican Senate President Jeff Atwater to return donations by Rothstein. On the same day, Florida Chief Financial Officer Alex Sink, a Democrat, announced that she would return at least $7,025 in contributions from Rothstein and members of his firm. Crist is running for U.S. Senate, Sink is running for Governor and Atwater is running for Chief Financial Officer. Rothstein is alleged to have made contributions to numerous politicians using ill-gotten gains, and to have illegally reimbursed members of his firm for making contributions. Rothstein and his wife, Kimberly, also held fundraisers for Senator McCain and Governor Crist in one of their waterfront homes.
The campaign contributions have also created potential criminal exposure for lawyers at Rothstein's firm Rothstein Rosenfeldt Adler. Approximately 30 lawyers in the firm, along with 15 employees, spouses and relatives, made approximately $2.2 million in Federal and State campaign contributions, with the largest recipient being the 2008 Presidential campaign of Arizona Senator John McCain. One attorney, Steven Lippman, and his wife contributed approximately $247,000 to Governor Crist, Senator McCain and other politicians over a span of four years. Federal investigators are looking into the contributions. Several partners in the firm have retained counsel in response to the investigation. Experts have stated that the attorneys should have been aware that they were violating campaign finance laws when Rothstein required the attorneys to make campaign donations as a condition to receiving bonuses.
The fallout has extended further to Fort Lauderdale Police Chief Frank Adderly. Two Fort Lauderdale City Commissioners have asked the Florida Department of Law Enforcement to investigate Adderly regarding his relationship with Rothstein. Rothstein is alleged to have flown Adderly to New York in December 2008 for a football game, and Adderly personally intervened in an automobile collision involving a friend of Rothstein.
Fisher Auction will auction property of Rothstein's law firm on January 23, at the direction of the firm's trustee, including fountain pens used by Rothstein and the massage chair in the firm's lounge. Rothstein's attorney has opposed the auctioning of photographs of Rothstein withvarious politicians.
