Thursday, July 09, 2009

I heart Paris

I had another matter in the courthouse this afternoon, so I snuck over to Judge Moreno's courtroom to see the Paris Hilton trial.

I watched a bit of both opening statements. Judge Moreno was on his A-game, asking lots of questions in his engaging and witty way. He even asked a funny question about the rule against perpetuities. Another exchange -- Lawyer: I'm here to make your life easier judge. Moreno: You are failing so far. Moreno wondered out loud why the case had not settled and asked whether Paris could simply promote the movie this weekend to settle the matter.

Paris was laughing at Judge Moreno's jokes and nodding her head in agreement during much of the proceeding. She wore a black and white sleeveless dress, a black headband, and pig-tails. UPDATE -- I added a picture of her (with one of her lawyers) walking into the courthouse so you could see for yourselves.

Wednesday, July 08, 2009

Paris, oh Paris

The Paris Hilton trial starts tomorrow. Our prior coverage is here. I imagine it's going to be a circus (as far as circuses go in federal court; remember no tweeting or blogging!) in the Chief Judge's courtroom tomorrow. I'm hoping to get an exclusive blog interview with Paris... if I do, what questions should I ask her, my dear readers?

Here's Curt Anderson's preview of the case:

In an odd intersection of showbiz and securities fraud, proving a claim that Paris Hilton was a lousy pitchwoman would benefit investors jilted by a Ponzi scheme she had no part in.
A federal lawsuit set to go to trial Thursday against Hilton contends she didn't do enough to promote the 2006 sorority hijinks movie "Pledge This!" and seeks about $8 million in damages from Hilton and her company, Paris Hilton Entertainment Inc.
One of the main investors in the box-office bomb was once a high-flying concert and theater promoter from Miami named Jack Utsick, who was listed as one of the movie's producers. When the admittedly bad movie lost money, his now-defunct Worldwide Entertainment Group took a financial hit.
But it's not Utsick who's suing Hilton. Rather, the lawsuit stems from an effort to repay people ripped off in what federal securities investigators say was a $300 million Ponzi scheme hatched by Utsick. Hilton's work on the film had nothing to do with the scheme.
The Securities and Exchange Commission said Worldwide Entertainment was a multimillion-dollar fraud and won a civil judgment earlier this year against Utsick and several associates. A federal judge appointed attorney Michael Goldberg as receiver to collect as much money as possible for some 3,300 wronged investors.
It was Goldberg who filed the lawsuit against Hilton. He claims she failed to adequately promote the DVD release for "Pledge This!" and that she deprived the film's investors of $8.3 million in profits by not cooperating.


What about the defense:

Hilton and her attorneys claim she went the extra mile to plug the movie, which played in just 25 theaters and made only about $2.9 million worldwide, according to court documents. Hilton, 28, is expected to testify in the three-day bench trial before U.S. District Judge Federico Moreno.
In a deposition, Hilton said she did promotion events at the Cannes Film Festival in France, appeared at the movie's Chicago premiere and generally mentioned it publicly whenever possible.
"Any chance I got, any red carpet, any press, if I was doing something for another product, even if I wasn't asked about it, I would just bring it up," she said.

Quick Hits

Sorry about the slow blogging this week. It's summer and I'm swamped... What up with that?

Okay, to the news:

1. General Noriega has filed a cert petition.
2. Paris Hilton starts trial tomorrow in front of Judge Moreno. Steven Binhak and Michael Weinstein represent her.
3. UBS trial next week.
4. Federal JNC interviews for judge and U.S. atty coming up.
5. Palm Beach is moving firearms cases to federal court. (The State Attorney there says it's because the min-mans in federal court are higher than in state court. But there is no min-man for being a felon in possession of a firearm in the federal system.)
6. More on SexyLexus and White & Case.
7. There's lots of mortgage fraud.
8. Boeis tops Wells.
9. AUSA Scott Ray is leaving the office. Going away party next Thurday at Tobacco Road. Good luck to Scott.
10. The Marshals are busy.

Monday, July 06, 2009

Obama nominates Beverly Martin to Eleventh Circuit

President Obama has nominated District Judge Beverly Martin to fill Lanier Anderson's seat on the Eleventh Circuit. She's been a district judge in the Northern District of Georgia since 2000 and before that was the U.S. Attorney for the Middle District of Georgia for three years. She has sat by designation a couple of times on the Eleventh Circuit, the most noted case being Buckley v. Haddock, the taser case in which she dissented. (She wanted the video appended to the opinion, but the Court refused. After that, someone uploaded it to YouTube). She has a sense of humor -- check out this footnote (via Law.com): "Essentially, in the spirit of an old Woody Allen joke, Southern requests more time to finish a deposition that it apparently believes has not been very helpful." Then, invoking the joke from the 1977 movie "Annie Hall," she goes on, "Two elderly women are at a Catskill mountain resort, and one of 'em says, 'Boy, the food at this place is really terrible.' The other one says, 'Yeah, I know; and such small portions.'" A Macon native, Martin graduated from Stetson University and the University of Georgia School of Law.

Saturday, July 04, 2009

SDFLA turns 4

Four years ago on Fourth of July weekend I started this blog with no expectations and no idea if the blog would last a month, let alone four years. Since then, there have been 1,275 posts (there is a post almost every business day) and almost 500,000 hits (it took us a while, but the blog now averages around 600 hits a day). Here is our first month of posts, and our first one -- suggesting that former President Bush appoint a Floridian to the Supreme Court. I just wanted to wish everyone a Happy Fourth of July and thank you all for stopping by over the past four years. I hope I can keep it going for another four. --David Markus

Friday, July 03, 2009

Sealed Mutual Benefits stuff starts to leak

Jay Weaver has the lengthy front page story here. Our prior coverage is here. The bombshell from the article is that Paul Huck Jr. was one of the reasons a number of documents were sealed and a number of judges recused (including Judge Huck). Of course Huck Jr. has been cleared of all wrongdoing -- he is a stand-up and ethical lawyer. But for him to have to go through this is terrible. From the intro to the Herald article:


The U.S. Justice Department is investigating corruption allegations made by an indicted Fort Lauderdale insurance executive who, in a bid for a favorable plea deal, has named lawyers, lobbyists and fundraisers he claims plotted with him to thwart a state crackdown on him and his industry.

Justice officials have convened a federal grand jury to pursue the claims of former Mutual Benefits Corp. chief Joel Steinger. The wealthy businessman contends that he orchestrated a campaign to stifle a 1999-2000 statewide grand jury probe by attempting to improperly influence public officials, three knowledgeable sources have told The Miami Herald.

One of the officials Steinger named was lawyer Paul Huck Jr., a former deputy to state Attorney General Charlie Crist. But Huck confirmed that he was one of six public officials already cleared of any wrongdoing by the Justice Department's Public Integrity Section. Huck said authorities have told him that he was "a reputational victim of statements made by a third party.''

Others who remain under scrutiny: several prosecutors and officials who worked under Florida Attorney General Bob Butterworth and his successor, Crist.

Judge Jordan had this to say:

''Disclosure of those names, and the matters being investigated, could have devastating consequences for those persons who have been cleared of any misconduct, as well as for those still under investigation,'' Jordan wrote, adding that the grand jury probe was ancillary to the Mutual Benefits fraud investigation.

Jordan stressed that, according to the Public Integrity Section, the six exonerated officials "had no knowledge of, or participation in, any of the alleged wrongdoing.''

More on Huck Jr. and his comment about having to go through such an ordeal:

Among them: Huck Jr., who was a deputy attorney general in Fort Lauderdale when Mutual Benefits was being prosecuted in Broward by the statewide prosecutor. The post is part of the attorney general's office. Mutual Benefits pleaded guilty to racketeering charges in 2007. Huck was not the prosecutor on that case.

Huck, who later became Gov. Crist's general counsel and now is in private practice in Miami, confirmed that he is one of the public officials the judge referred to as being cleared. Huck declined to comment further, saying he does not want to interfere with the probe.

''It's a real shame when folks in public service have to deal with that, and it makes it that much harder to attract people to go into public service in the first place,'' Huck told The Miami Herald.

Thursday, July 02, 2009

Alex Kozinski and Porn

We've posted about the whole dust-up with Ninth Circuit Judge Alex Kozinski and his personal website featuring sexually explicit photos and videos.

Well, the Third Circuit's judicial council, tasked with investigating the case, wrote a 41 page opinion admonishing Kozinski, but clearing him of any wrongdoing. It's just about the holiday weekend, so I haven't slogged through the whole opinion yet. But here's the bottom line:

We find that the Judge's possession of sexually explicit offensive material combined with his carelessness in failing to safeguard his sphere of privacy was judicially imprudent. Moreover, once the Judge became aware in 2007 that offensive material could be accessed by members of the public, his inattention to the need for prompt corrective action amounted to a disregard of a serious risk of public embarrassment. We join with the Special Committee in admonishing the Judge that his conduct exhibiting poor judgment with respect to this material created a public controversy that can reasonably be seen as having resulted in embarrassment to the institution of the federal judiciary. We determine that the Judge's acknowledgment of responsibility together with other corrective action, his apology, and our admonishment, combined with the public dissemination of this opinion, properly conclude this proceeding.
***
The Judge explained and admitted his error; apologized for it, recognizing its impact on the judiciary; and committed to changing his conduct to avoid any recurrence of the error. The offending material has been removed and will be destroyed. The Judge’s acknowledgment of responsibility combined with the corrective actions he has already completed or has committed to pursue and his apology, along with our admonishment, made public in this opinion, properly “remed[y] the problems raised by the complaint.” Rule 11(d)(2). Accordingly, this proceeding is properly concluded. We find that “all of the purposes of the judicial misconduct provisions are fully served” by this result.

In my opinion, this has been a huge waste of time. Kozinski issued the following statement to the WSJ Law Blog:

I asked the Third Circuit Court of Appeals to thoroughly review this matter, and I am pleased that today’s unanimous decision reaffirms what I have said all along about my private files: They were kept on a private server and were not intended to be shared publicly. Our Ninth Circuit Court of Appeals has much important work to do, and I look forward to continuing to work with my colleagues to accomplish our goals.

Anyway, I hope you all have a wonderful Fourth.

Wednesday, July 01, 2009

Interviews (and times) made public

After the list has been floating around the past couple of days, the JNC finally posted it here. You can see the times of the public interviews. I wonder if anyone will show up.

Some interesting notes:

  • The order of the interviews is random. (Which is the best slot? Robin Rosenbaum is first up and Ana Martinez is last. Robert Lee is first up after a short 30 minute lunch. For USA, Mark Schnapp is first up and James Swaim is last.)
  • The interviews last 25 minutes.
  • Each applicant gets an opening (3 minutes) and closing statement (2 minutes). (Those should be interesting...)
  • The JNC recommends that applicants show up 30 minutes ahead of time. (Can you imagine an applicant being late?)
  • "The Rule" has been invoked. "No applicant will be allowed to attend the interview of another applicant or to discuss an interview with a member of the public who has attended other interviews." (So can I live blog?)
  • AUSA Marcus Christian got an interview for the U.S. Attorney slot in the Middle District of Florida. And B.J. Throne got one in the Northern District...