Well, it's a Friday in December. Awfully quiet around town.
I found interesting this Herald article about a state judge and a defendant being Facebook friends:
Several weeks ago, Miami-Dade Circuit Judge Yvonne Colodny accepted a new friend request on the social networking site Facebook -- from Miami Commissioner Michelle Spence-Jones.
On Thursday, Spence-Jones was not a pal but a defendant whose grand theft case was on Colodny's docket for arraignment.
Colodny disclosed the tidbit to lawyers in the case, assuring them that she immediately unfriended the politician when she learned of her arrest on Nov. 13. Colodny also noted that she never once looked at Spence-Jones' Facebook page.
``We'll be leaving Facebook because of the issues arising from that website,'' Colodny said Thursday morning.
Defense lawyer Michael Band and prosecutor Richard Scruggs chuckled about the disclosure but had no problems with it. Band entered a plea of not guilty for Spence-Jones, who did not appear.
So, should judges abandon Facebook, Twitter, and Blogging altogether?
Other topics to consider on this Friday:
1. Who would release ladybugs at Art Basel?
2. Who would win in a fight between Justices Ginsburg and Sotomayor?
3. Is Florida the ponzi scheme capitol of the world?
4. Here's a creative way to enforce a judgment -- have the Marshals seize paintings from Art Basel.
The SDFLA Blog is dedicated to providing news and notes regarding federal practice in the Southern District of Florida. The New Times calls the blog "the definitive source on South Florida's federal court system." All tips on court happenings are welcome and will remain anonymous. Please email David Markus at dmarkus@markuslaw.com
Friday, December 04, 2009
Wednesday, December 02, 2009
Did Scott Rothstein surrender or was he arrested?
There has been some debate about whether Rothstein was arrested or whether he was permitted to surrender. The answer is really neither. When a defendant surrenders, he is permitted to show up at magistrate court for his first appearance on his own (not in handcuffs). And when someone is arrested, federal agents show up at your house at 6:30 in the morning and bring you to court. Here, we had a little of both -- Rothstein wasn't arrested at his house (or the hotel he was staying at) and he didn't show up to magistrate court on his own. Instead, it appears he surrendered himself to the FBI office where they put him in handcuffs and brought him to court. The feds did this so that they could say they arrested him, but they allowed him to show up to the FBI office because it's pretty obvious he has been cooperating and so they gave him this small concession. Also, for some reason Rothstein's lawyer continues to say he isn't cooperating, so having him show up to court in handcuffs allows Rothstein to continue to say this even though I think everyone knows that train has left the station.
The whole surrender vs. arrest thing has always bugged me. If a defendant knows about the charges and hasn't gone anywhere, he should be permitted to surrender even if he isn't cooperating. The government should not be able to use the threat of arrest to coerce a person into pleading... It's a complete waste of resources. Obviously, this is not the typical case, so perhaps the government, for political reasons, couldn't allow him to simply show up to court on his own (especially since he's been sipping martinis for the past couple weeks in everyone's face).
The other topic being discussed is the information vs. indictment. Rothstein has been charged by way of information, meaning that the feds didn't have to go to a grand jury. This generally is a tell-tale sign that the defendant is cooperating. But again, the whole information vs. indictment thing has never made much sense to me. Who cares whether you are charged with an information instead of an indictment. It does absolutely nothing for the defendant whatsoever. I guess it saves an agent from an afternoon of explaining the case to a grand jury. In my view, we should just get rid of the grand jury altogether. That would require a constitutional amendment though, and we haven't had one of those in a while.
Here's Jeff Sloman at the press conference yesterday:
The whole surrender vs. arrest thing has always bugged me. If a defendant knows about the charges and hasn't gone anywhere, he should be permitted to surrender even if he isn't cooperating. The government should not be able to use the threat of arrest to coerce a person into pleading... It's a complete waste of resources. Obviously, this is not the typical case, so perhaps the government, for political reasons, couldn't allow him to simply show up to court on his own (especially since he's been sipping martinis for the past couple weeks in everyone's face).
The other topic being discussed is the information vs. indictment. Rothstein has been charged by way of information, meaning that the feds didn't have to go to a grand jury. This generally is a tell-tale sign that the defendant is cooperating. But again, the whole information vs. indictment thing has never made much sense to me. Who cares whether you are charged with an information instead of an indictment. It does absolutely nothing for the defendant whatsoever. I guess it saves an agent from an afternoon of explaining the case to a grand jury. In my view, we should just get rid of the grand jury altogether. That would require a constitutional amendment though, and we haven't had one of those in a while.
Here's Jeff Sloman at the press conference yesterday:
Monday, November 30, 2009
Scott Rothstein to be arrested tomorrow (Tuesday) -- NUMEROUS UPDATES BELOW
The Herald broke the story here:
Scott Rothstein, the flashy Fort Lauderdale attorney who authorities say ran a $1 billion investment scam while acting like a philanthropic tycoon, is expected to be arrested Tuesday on a federal racketeering charge, sources familiar with the case said.
Rothstein, who had fled to Morocco in late October but returned in early November, is expected to appear at a magistrate hearing to face the RICO conspiracy charge at the federal courthouse in Fort Lauderdale.
While under federal watch in November, Rothstein cooperated with prosecutors and provided them with details of his Ponzi scheme, involving the sale of fabricated legal settlements to wealthy investors.FBI and IRS agents also raided his Fort Lauderdale law office and seized his waterfront home and other assets.
Rothstein could not be reached for comment, and his attorney, Marc Nurik, declined to say anything about his client's imminent arrest.
``Scott intends to see that all legitimate investors get paid back,'' Nurik said late Monday. ``Exactly how that's going to be done remains to be seen. He is sincere in his intent.''
Rothstein, 47, is likely to plead guilty soon while he is in custody. The U.S. attorney's office, meanwhile, will convene a grand jury to consider criminal charges against Rothstein's alleged co-conspirators -- including possibly former employees of his now-defunct firm.
Rothstein, who had fled to Morocco in late October but returned in early November, is expected to appear at a magistrate hearing to face the RICO conspiracy charge at the federal courthouse in Fort Lauderdale.
While under federal watch in November, Rothstein cooperated with prosecutors and provided them with details of his Ponzi scheme, involving the sale of fabricated legal settlements to wealthy investors.FBI and IRS agents also raided his Fort Lauderdale law office and seized his waterfront home and other assets.
Rothstein could not be reached for comment, and his attorney, Marc Nurik, declined to say anything about his client's imminent arrest.
``Scott intends to see that all legitimate investors get paid back,'' Nurik said late Monday. ``Exactly how that's going to be done remains to be seen. He is sincere in his intent.''
Rothstein, 47, is likely to plead guilty soon while he is in custody. The U.S. attorney's office, meanwhile, will convene a grand jury to consider criminal charges against Rothstein's alleged co-conspirators -- including possibly former employees of his now-defunct firm.
Scott is still talking, this time to the Sun-Sentinel:
Rothstein called Monday, after I sent a text asking if he was about to turn himself into federal authorities, a rumor that was making the rounds."No, I'm not surrendering," he said. "I'm sitting here in the hotel with my attorney (Marc Nurik) and it's a very strange scenario."First we're fielding calls from people asking if we're in protective custody. No, I'm not in protective custody. Now we're getting calls if I'm about to surrender...So I guess you guys are giving me a heads up that I'm about to be arrested."
***
Said [Mark] Nurik: "Nobody's telling us that they're picking him up, and nobody's giving us any right to surrender...He's sitting here with me, talking about the case. He's mostly freaking out about being arrested."
So, he'll obviously be detained with no bond. But should he be?
UPDATE 9:30am Tuesday -- Rothstein has been arrested early Tuesday morning and he wasn't permitted to surrender. He will make his initial appearance this morning in Ft. Lauderdale before Judge Robin Rosenbaum.
SECOND UPDATE -- No bond... Stipulation to detention...
THIRD UPDATE -- Rothstein was charged by way of infomation, which means he is definitely cooperating. Still strange to me that they simply wouldn't indict him. Here's the information, which has been assigned to Judge James Cohn.
Would you do 40 months for a billion bucks?
Bradley Birkenfeld would. He's the UBS banker who helped the government makes its case against UBS and all the tax cheats. Here's the New York Times story:
Bradley C. Birkenfeld was sentenced to 40 months in prison for helping rich Americans dodge their taxes. Now he is hoping for a bit more — a few billion dollars more.
Mr. Birkenfeld, a former private banker at the Swiss bank UBS, won the enmity of his peers by violating the omerta of Swiss banking: He divulged the tax evasion secrets of UBS, the world’s largest bank by assets, and its well-heeled American clients. As part of a deal with federal prosecutors, he admitted to, among other things, helping to smuggle diamonds in a tube of toothpaste.
Now, as thousands of wealthy Americans seek amnesty for keeping illicit, offshore bank accounts, Mr. Birkenfeld and his lawyers hope to use a new federal whistle-blower law to claim a multibillion-dollar reward from the American government. If they succeed — and legal experts say the odds are pretty good — it would be the largest reward of its kind.
Mr. Birkenfeld, who is to begin his prison term as soon as January, is being represented by the executive director of the National Whistleblowers Center, Stephen M. Kohn. Mr. Kohn successfully represented Linda Tripp, who helped expose the Monica Lewinsky scandal of the Clinton years.
“We are seeking at least several billion dollars,” Mr. Kohn said.
So, how much would it take you to do 40 months in a federal pen:
Bradley C. Birkenfeld was sentenced to 40 months in prison for helping rich Americans dodge their taxes. Now he is hoping for a bit more — a few billion dollars more.
Mr. Birkenfeld, a former private banker at the Swiss bank UBS, won the enmity of his peers by violating the omerta of Swiss banking: He divulged the tax evasion secrets of UBS, the world’s largest bank by assets, and its well-heeled American clients. As part of a deal with federal prosecutors, he admitted to, among other things, helping to smuggle diamonds in a tube of toothpaste.
Now, as thousands of wealthy Americans seek amnesty for keeping illicit, offshore bank accounts, Mr. Birkenfeld and his lawyers hope to use a new federal whistle-blower law to claim a multibillion-dollar reward from the American government. If they succeed — and legal experts say the odds are pretty good — it would be the largest reward of its kind.
Mr. Birkenfeld, who is to begin his prison term as soon as January, is being represented by the executive director of the National Whistleblowers Center, Stephen M. Kohn. Mr. Kohn successfully represented Linda Tripp, who helped expose the Monica Lewinsky scandal of the Clinton years.
“We are seeking at least several billion dollars,” Mr. Kohn said.
So, how much would it take you to do 40 months in a federal pen:
Saturday, November 28, 2009
Thanksgiving weekend blogging
The Miccosukee Tribe of Indians was certainly thankful to Judge Seitz on Thanksgiving Day. Just hours before we all headed home on Wednesday to defrost our turkeys, Judge Seitz issued an order stating that she was “convinced that the Tribe will succeed on the merits” after a two-day preliminary injunction hearing last week seeking to halt construction on 21-mile “Loop Road” in the Everglades. The DBR’s article is here. Judge Seitz found that “the Government failed to comply” with environmental laws prior to starting the project. Michael Tein represented the Tribe at the hearing and accused the National Parks Service of a “cover up.” Mike produced Interior Department notes and memos indicating that government viewed public disapproval of the project as a “high risk” that would be handled with an “internal memorandum to file” instead of the full-blown public environmental study that federal environmental laws require. Apparently, the government was going to use money earmarked back in 2005 for “emergency Hurricane Wilma relief,” to pay for repaving the road, which Mike said had no hurricane damage. Mike’s brief charting out the alleged “cover up” is a fun read and I will post it shortly. After the hearing, the government agreed to delay the project another two weeks to allow for additional briefing. Judge Seitz said she would rule by December 14.
Wednesday, November 25, 2009
Breaking!!
The case against Ben Kuehne and the co-defendants has been dismissed by the Feds. Happy Thanksgiving.
UPDATE -- The government moved to dismiss the pending appeal against Gloria Velez and also moved to dismiss the entire indictment in the district court against Velez, Oscar Saldarriaga, and Ben Kuehne. The motion simply says that it is based on the changed circumstances from the Court of Appeal's decision and in the interest of justice. Indeed. It was signed by Ken Blanco, Deputy Assistant Attorney General.
UPDATE 2 -- Ben Kuehne issued the following statement:
On this, the day before Thanksgiving, I am gratified beyond measure that the United States Department of Justice has decided to abandon all charges against me. I have had throughout a deep and abiding belief that things would turn out well in the end. However, I did not know the end result would come about by decision of the Department of Justice. We are all fortunate to be able to say that we have a Justice Department whose goal is to try to do the right thing—not to win at all costs.
Although I would have preferred not to go through this experience, I am also gratified that my case has been the occasion for an important precedent-setting legal ruling by the District Court, recently affirmed by the Eleventh Circuit Court of Appeals, and embraced by the legal community, in preserving and protecting the Sixth Amendment right to counsel. This ruling deals with an area of law that is close to my heart. It is to the right to counsel in criminal cases that I have dedicated much of my career at the Bar. I want to, once again, thank the many members of our community who have, over the past two years, so consistently expressed their confidence in my innocence. Throughout this period, I have continued to do what I have been trained to do, and what I love most, which is to practice law. I am grateful to the many clients who have reposed their confidence in me by seeking to utilize my legal services.
I am also grateful to my amazing lawyers, John Nields, Jason Raofield, and Laura Shores from Howrey in Washington, D.C., and my good friend, Jane Moscowitz, from Miami. I wish to thank them for their skill, dedication, and commitment to me and my case.
Finally, throughout this legal drama, my greatest strength has been the unsinkable spirit and love of my wife, Lynn, and our entire family. I want to thank them for knowing who I am, and of my sincere dedication to the law.
UPDATE -- The government moved to dismiss the pending appeal against Gloria Velez and also moved to dismiss the entire indictment in the district court against Velez, Oscar Saldarriaga, and Ben Kuehne. The motion simply says that it is based on the changed circumstances from the Court of Appeal's decision and in the interest of justice. Indeed. It was signed by Ken Blanco, Deputy Assistant Attorney General.
UPDATE 2 -- Ben Kuehne issued the following statement:
On this, the day before Thanksgiving, I am gratified beyond measure that the United States Department of Justice has decided to abandon all charges against me. I have had throughout a deep and abiding belief that things would turn out well in the end. However, I did not know the end result would come about by decision of the Department of Justice. We are all fortunate to be able to say that we have a Justice Department whose goal is to try to do the right thing—not to win at all costs.
Although I would have preferred not to go through this experience, I am also gratified that my case has been the occasion for an important precedent-setting legal ruling by the District Court, recently affirmed by the Eleventh Circuit Court of Appeals, and embraced by the legal community, in preserving and protecting the Sixth Amendment right to counsel. This ruling deals with an area of law that is close to my heart. It is to the right to counsel in criminal cases that I have dedicated much of my career at the Bar. I want to, once again, thank the many members of our community who have, over the past two years, so consistently expressed their confidence in my innocence. Throughout this period, I have continued to do what I have been trained to do, and what I love most, which is to practice law. I am grateful to the many clients who have reposed their confidence in me by seeking to utilize my legal services.
I am also grateful to my amazing lawyers, John Nields, Jason Raofield, and Laura Shores from Howrey in Washington, D.C., and my good friend, Jane Moscowitz, from Miami. I wish to thank them for their skill, dedication, and commitment to me and my case.
Finally, throughout this legal drama, my greatest strength has been the unsinkable spirit and love of my wife, Lynn, and our entire family. I want to thank them for knowing who I am, and of my sincere dedication to the law.
Escape From Dubai
In another this-is-too-good-to-be-true story, Curt Anderson covers former French intelligence officer Herve Jaubert, who believed he was essentially being held captive in Dubai when his passport was confiscated by authorities amid a dispute with his employer, a powerful government-run conglomerate. He claimed he was threatened with torture and worried each day he would be arrested. From the AP article:
So Jaubert disguised himself as a Muslim woman and fled the country. The accomplished diver hid scuba gear under the head-to-toe abaya. He swam out to the area's only patrol boat and cut the fuel lines. Then, he said, he launched his rubber dinghy, started the motor and piloted it six hours to meet an awaiting sailboat.
Now he's in South Florida, embroiled in a federal lawsuit over an ill-fated business venture with Dubai World Corp., which says the 2008 escape story is one of his many lies. Jaubert sued the company, claiming the failed plan to build recreational submarines for tourists and the super-wealthy cost him millions in lost business opportunities.
"I lived with fear in my stomach for more than a year. Every day when you wake up, you expect to be picked up by the police," Jaubert said.
And we even get a video!
In other words, we should all be thankful that we weren't in Mr. Jaubert's shoes. Think Midnight Express:
On that note, Happy Thanksgiving!
So Jaubert disguised himself as a Muslim woman and fled the country. The accomplished diver hid scuba gear under the head-to-toe abaya. He swam out to the area's only patrol boat and cut the fuel lines. Then, he said, he launched his rubber dinghy, started the motor and piloted it six hours to meet an awaiting sailboat.
Now he's in South Florida, embroiled in a federal lawsuit over an ill-fated business venture with Dubai World Corp., which says the 2008 escape story is one of his many lies. Jaubert sued the company, claiming the failed plan to build recreational submarines for tourists and the super-wealthy cost him millions in lost business opportunities.
"I lived with fear in my stomach for more than a year. Every day when you wake up, you expect to be picked up by the police," Jaubert said.
And we even get a video!
In other words, we should all be thankful that we weren't in Mr. Jaubert's shoes. Think Midnight Express:
On that note, Happy Thanksgiving!
Tuesday, November 24, 2009
The U
Friends of Blog Alfred Spellman and Billy Corben (of Cocaine Cowboys fame) are now coming out with the U, which will air on ESPN December 9. Barry Jackson has a piece on the documentary today. Apparently, UM didn't cooperate... I never understand that. The movie is going to get made; you might as well cooperate. From Jackson:
Inside a Miami Beach office that feels like a not-too-reverential Hurricanes shrine, the finishing touches are being applied to the documentary of record on the University of Miami football program.
Stacks of old newspaper clippings and UM media guides sit atop a table. A Ray Lewis action figure poses menacingly on a desk, and a stuffed ``Ibis'' lurks across the room. A UM pin cushion and Canes pillow are propped on the couch.
Director Billy Corben and producer Alfred Spellman aren't only accomplished filmmakers -- they're also former UM students. Corben believes Canes fans will be pleased when their two-hour documentary, The U, airs at 9 p.m. Dec. 12 on ESPN, in a high-profile slot following the Heisman Trophy show.
``For Canes fans, this will be a reminder of what they loved about this team. For Canes haters, this will be a reminder of what they hated about this team,'' said Corben, who has crafted six films with Spellman, most notably Cocaine Cowboys. ``I'm also hoping the haters might walk away with some passing appreciation of what the team brought to the table in terms of their pop culture contributions, the merger of sports and entertainment, the style of game played.
``The criticism of the team has been well-documented. We certainly review it. But this is really a Canes talk-back, a Canes rebuttal kind of piece. There's no dearth of incredible highlights of both sensational plays and over-the-top celebrations.''
UM WON'T PARTICIPATE
But Corben said UM refused to participate and would not allow the filmmakers to interview coach Randy Shannon, former athletic director Paul Dee or former president Tad Foote, though old sound bites from Foote appear in the film. According to Corben, former coach Dennis Erickson and several former Hurricanes players said they disregarded UM's request that they not grant interviews.
``It upset me to no end,'' Corben said of UM's resistance. ``I felt disrespected and unappreciated by my alma mater. Early on, [UM athletic department spokesman] Mark Pray told me, `You should rethink even doing this project.' It was a display of rudeness, disrespect and ignorance. UM has a persecution complex about that era.'' As a result, Corben said he resigned from UM's Citizens Board, which supports the university's philanthropic efforts and promotes UM's programs.
Jackie Menendez, UM's vice president/communications, said the school declined to allow the interviews or participate in the project because Corben wasn't willing to allow UM officials to read the script in advance. Corben said he never was asked for a script -- ``a documentary doesn't have a script'' -- but that he sent UM a treatment, which is a two-page synopsis of the project.
When Devin Hester heard that UM wasn't cooperating, this was his reaction, showing his Bear/bare behind.
The movie should be great. I'm looking forward to it. Luke Campbell has the title track:
In other news, a Miami pastor was convicted before Judge Huck yesterday after a lengthy trial. He was convicted of committing $7 million in fraud.
Rothstein was apparently paying his lawyers and staff with ponzi proceeds. This keeps getting uglier and uglier. Bob Norman has pics of his house and lots of other news.
An agent who was kidnapped in Colombia has been released:
About three hours later, ``Fat Man'' returned to the cabin with one of his men, who told Ortiz that they knew he was a federal agent.
They were visibly nervous, Ortiz told the FBI.
The man removed Ortiz's handcuffs, repeatedly saying, ``Our apologies, brother.''
Once his hands were free, Ortiz saw that his apologetic guard carried a revolver in a belt holster and asked him for it. The man surrendered it.
Ortiz also asked for a car, a demand accepted by his kidnappers. One of them drove him to the city.
Ortiz arrived on his own at the hotel, where a contingent of Colombian police officers and U.S. agents were waiting for him so they could take him immediately to Bogotá.
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