Ho Hum -- The Princess, A Sex Sting, and UBS

Hey, can you tell it's SFL here?

Yep, still foolin' around while David tries another big case.

So I told you all this UBS thing was big. Here's an update on what went down in Judge Gold's courtroom yesterday:

U.S. District Judge Alan S. Gold set a July 13 hearing on the IRS lawsuit, unless an agreement is reached first. UBS claims that turning over the account names would violate Swiss privacy law and jeopardize the bank's license to stay in business.

"Such violations would expose these (UBS) employees to substantial prison terms, as well as fines, penalties and other sanctions," the UBS lawyers said in a court filing last week. "There is simply no reason to have, nor equity in having, such an expedited process here."

The IRS had sought an accelerated timetable, but Justice Department tax attorney Stuart Gibson and UBS lawyers told Gold at a brief telephone hearing Monday they had agreed on a lengthier process. Gold also set a series of deadlines for court filings.

"I would appreciate the continued efforts to discuss this matter, to narrow down what the legal issues are and the factual issues are," Gold said.

Most judges probably would appreciate that.

What do you know -- the feds bust a Miami Beach sex ring:

Bernabe-Caballero, 34, remained without bond in Miami's Federal Detention Center Monday night and was scheduled for a 10 a.m. hearing Tuesday about extradition to Michigan, where the grand jury in the case had convened.

Bernabe-Caballero's attorney, Rene A. Sotorrio, declined to comment.

Smart move, I wouldn't say anything either if my client was facing these kind of allegations.

And -- can you believe it -- a story about a cocaine princess and federal court.

Sometimes these things write themselves.

More on Kuehne R&R

SFL here, hope you had a nice weekend.

Here's a nice quote from John Pacenti's article on Judge Bandstra's R&R on Ben Kuehne:

If Bandstra’s decision stands, the case would be down to five substantive money laundering counts. Kuehne and Saldarriaga are accused of using a money broker to hide the movement of drug profits into the defense fund. The money broker was an informant working with the government and exchanging pesos for dollars used in U.S. drug stings.

Miami litigator Jane Moscowitz, one of Kuehne’s attorneys, said she was thrilled with the Bandstra ruling.

“It took my breath away that the motion had been granted,” she said.

And us too, Jane.

And here's some more background on the IRS/UBS suit, which is being closely watched in financial and legal circles:

While the deferred prosecution agreement reached between Swiss banking giant UBS and federal prosecutors on Wednesday might have initially looked like a great deal for the government, in reality the Zurich-based bank isn't disclosing nearly as many client names as law enforcement officials are suggesting, says Miller & Chevalier tax partner George Clarke III.

Clarke says that the decision by the Justice Department to file suit against UBS on Thursday in Miami is evidence of this.

Despite forking over $780 million in penalties as part of its deferred prosecution agreement, UBS, represented by Wachtell, Lipton, Rosen & Katz litigation partner John Savarese, managed to secure a pretty good deal for itself, Clarke says.

Sure, not bad for a bunch of carpetbaggers from New York. But what are we, chopped liver?

Another one bites the dust

The government's case against Ben Kuehne is in utter shambles -- Count I (the most serious count) was already dismissed. The case against a co-defendant has been dismissed. And now, Magistrate Judge Bandstra has recommended that Count 7 -- the wire fraud count -- be dismissed against all defendants. It is time for the government to concede defeat, no?

Is It Friday Already?

By SFL

Boy the federal court beat is...a little beat today.

Does it count as SD FL news that I saw Judge Moreno having a nice lunch at La Loggia yesterday?

No, guess not -- darn, where's Julie Kay when you need her?

Anyways, the always-in-trial big man already updated us on Joe Cool. Judge Huck set sentencing for May 6.

Third time's the charm in the Liberty 6 retrial, which is starting to feel like Jarndyce and Jarndyce -- only longer.

What do you all think of this line from the defense opening:

“This case is a 100 percent setup; this is a manufactured crime,” the lawyer, Ana M. Jhones, said in her opening argument, which drew several objections from the prosecution, most notably when she remarked that “taking an oath to Al Qaeda is not a crime.”

True, but do must jurors think it should be?

And finally, more details on the IRS v. UBS showdown unfolding right here in sunny South Florida:

With today’s lawsuit, the U.S. asked a federal judge to enforce its so-called John Doe summonses. On July 1, a federal judge in Miami approved an IRS summons seeking information on thousands of UBS accounts owned or controlled by U.S. citizens. Negotiations between the U.S., Switzerland and UBS have been at a standstill since then, according to a Justice Department filing.

UBS said in a statement that it expected today’s filing.

“UBS believes it has substantial defenses” to the U.S. attempt to enforce the summonses and will “vigorously contest” the case, the bank said in the statement. The bank’s objections are based on U.S. laws, Swiss financial privacy laws, and a 2001 agreement between UBS and the IRS, according to the statement.

Anyone know who has been retained to represent UBS on this? I know a certain humble blogger who's available.

Have a great weekend all!

Joe Cool verdict

Guilty.

I am loving guest-blogger South Florida Lawyer. Great stuff below...

Thanks.

New Plea Agreement Policy Becomes Effective Tomorrow

SFL here, still muckin' around this joint while David tries another big case.

Boy I feel like a dinosaur thinking back to the days when the clerk's office was not automated, and you had to actually walk over to Court to pull a docket or see an administrative order.

Now the clerk can just imprint them directly into the microchip transmitter located behind your retina, saving a lot of time and also something they used to have a long time ago called "trees."

Wait a minute -- that upgrade is set to launch in 2010.

I guess in 09 they're still using old fashioned emails, and I got one earlier today from the clerk that said this:

Administrative Order 2009-2, effective February 20, 2009, provides in part:

ORDERED AND ADJUDGED that as of February 20, 2009, the Southern District of Florida's current policy of providing limited electronic access to plea agreements is rescinded. All plea agreements filed on or after February 20, 2009 will be public documents, with full remote access available to all members of the public and the bar, unless the Court has entered an Order in advance directing the sealing or otherwise restricting a plea agreement.

Please visit the Southern District of Florida web page at http://www.flsd.uscourts.gov for the full text of Administrative Order 2009-2.

Hmm, I have to think this is a good thing, right?

Guest Blogging At David's Place.

Hi folks, SFL here.

David was kind enough to lend me the keys to his soapbox for a few days because, as you may have heard, he's busy doing IMPORTANT LEGAL STUFF.

In fact, here's a taste of what the big man has been up to this week:

The guiding principle of the medical profession is often stated as "First, do no harm."

But according to federal prosecutor Sean Cronin, Dr. Ali Shaygan operated by a different four-word motto, "Mo' money. Mo' money," with deadly consequences.

Making his opening statement Wednesday to a Miami federal jury, Cronin called Shaygan a drug dealer who sold prescriptions for dangerous narcotics to boost his income.

One of Shaygan's patients, James "Brendan" Downey of West Palm Beach, died in June 2007 after overdosing on methadone prescribed by Shaygan, Cronin said.

Shaygan's attorney, David O. Markus, countered that the 37-year-old physician prescribed appropriate doses of medications to patients who claimed to be suffering from pain and other ailments.

"He had a legitimate medical reason for doing what he did," Markus said. "Because a patient passes away doesn't make the doctor a criminal."

Shaygan, who lives in Miami Beach, is charged with 141 counts of unlawful prescribing and causing Downey's death. If convicted, he faces more than 20 years behind bars.

Geez, all I do is move around money.

Good luck David!

In other SD FL news, all you machers can see if you made the list. No, not the Madoff investment list, but the list of 19,000 offshore UBS bank accounts of American investors who may have been trying to avoid US taxes:

The largest bank in Switzerland, UBS, agreed Wednesday to reveal the names of wealthy Americans whom the authorities suspect of using offshore accounts to evade taxes.

The change in policy is the result of UBS' admitted role in conspiring to defraud the Internal Revenue Service. As part of the agreement, the bank will pay $780 million in damages, and also close all offshore accounts of its American clients.

You can see the filing that was submitted to Judge Cohn here.

Ok ok I know it's not Shakespeare, and I'll see if I can punch it up a bit, but I did promise myself -- out of my deep respect for David -- not to "work blue."

Boy, now I know how Bob Saget feels.

Have a good day everybody!

Exhaustion

Trial the last two days from 8:30 am to 6:30pm. I'm tired...

Updates you probably know already:

Openings in the Liberty City 6 today.

Closings in the Joe Cool case and the jury is out.

Good news -- South Florida Lawyer has agreed to guest blog. THANK YOU!