CBS Corp. filed an appeal of the Federal Communications Commision’s (FCC) fine against 20 CFS stations for the airing of the flashing of Janet Jackson’s breat during the 2004 Super Bowl. Each station has been fined $27,500, and the total is therefore $550,000.
The FCC has been assessing larger fines for indecency. The largest came in March 2006, which the CBS show “Without a Trace” was fine $3.6 million. CBS says it has taken steps to ensure that something like this will not happen again.
Spivak & Bice of the Milwaukee Journal Sentinel break an interesting (but sad) story about Milwaukee’s inept District Attorney’s Office.
On July 22, Sidney Gray alleged burglarized a home and killed Frank Moore II, a neighbor who was trying to stop the burglary. Gray has seven convictions on his record.
As it turns out, Gray probably should have been in jail for stealing a car, resisting arrest and attempting to burglarizing a woman’s home on July 16. So who bungled the case? The District Attorney’s office says that they told the police to bring this woman go to the DA’s office to tell them her story. They say the police never brought her.
The police say Gray should have at least been charged with resisting arrest while the case was being investigated. A detective’s report on the burglary of the woman’s home is dated July 27, which is 5 days after Moore was murdered.
The woman says she was never told to come downtown, and that she was very willing to help out. She wants to know why Gray was released without anyone talking to her. The whole situation is crazy, including the apparent reluctance of the police to act quickly on the night of the attempted burglary. Read the whole story for the details.
The first case against a [tag]NSYE specialist firm[/tag] trader was aqutted of charges that he made improper trades of Eli Lilly stock. The case against Robert Scavone Jr. ended with a finding of [tag]not guilty[/tag] for one count of secruities fraud. He faced up to 20 years in prison.
The accusations against Scavone, a former trader for Van der Moolen Specialists USA LLC, included illegally trading for the firm’s account ahead of public orders. It was alleged that the firm made profits (and avoided losses) to the tune of $500,000 because of this. The defense was that the trades weren’t intentional crimes, rather that they were mistakes as well as misinterpreted.
11 more traders are expected to go to trial with their cases. 2 other traders have been found guilty in trials, and 2 more pleaded guilty.
A federal court has posted online 1,202 exhibits from the Zacarias Moussaoui trial. The exhibits include photographs, recorded phone calls, hijacker motel receipts, and surveillance videotapes of the hijackers passing through airport security from September 11, 2001.
18 of the exhibits were marked “discretion advised” because of the graphic content.
Two former outside directors and the former CEO of Brooks Automation Inc. signed a document that allowed the CEO to exercise an [tag]expired stock option[/tag], which netted him millions of dollars. The option was to expire in August 1999, and CEO Robert Therrien supposedly exercised it only two days before the deadline.
Company officials now say that the transaction actually occurred months later, and was permitted because the three men signed a document as if it happened in June. The document referenced a loan given to Thierren in August 1999, which supposedly was discussed by the men in June 1999. Brooks Automation has since found that no such discussions occurred in June, and Therrien exercised the options in November 1999 for a profit of $5.8 million.
The company recently restated some earnings to account for problems with their its accounting for stock options. A total of $60 million in expense was added to the company’s [tag]financial statements[/tag] for 1999 through 2005.
The full story from the Wall Street Journal can be read here.
A recent [tag]theft of data[/tag] involving over 112,000 customers at Sentry Insurance is currently being investigated by the U.S. [tag]Secret Service[/tag]. The thief was a “lead programmer” with a computer consulting company hired by Sentry. In carrying out his job duties, he had access to the information on customers. He has been arrested, and faces felony charges in federal court.
The company is aware that the personal information of 72 customers with workers compensation claims has been sold on the internet. The additional 112,198 claimants involved in the theft do not appear to have had their information sold. The information being sold includes names and Social Security numbers.
Today the U.S. Court of Appeals for the Second Circuit upheld the conviction and prison sentence of former WorldCom CEO Bernard Ebbers. The 64-year-old defendant was convicted in 2005 of nine counts of conspiracy, securities fraud, and false SEC filings. He received a 25-year prison sentence, which all but assures that he will die in prison.
WorldCom’s demise was an $11 billion accounting fraud that included improper capitalization of operating costs, among other things. It sent WorldCom, a company with stock previously valued at $180 billion, into bankruptcy. Ebbers’s defense was that the CFO, Scott Sullivan, and his subordinates committed the fraud without his knowledge.
Ebbers’s attorney argued that the sentence was excessive and that Ebbers did not receive a fair trial because potential defense witnesses weren’t offered immunity from prosecution in exchange for their testimony. The witnesses said they would use the fifth amendment to avoid testifying.
Ebbers has been free while the appeal was pending, and is expected to be ordered to prison soon.
After deliberately lying during testimony in a Milwaukee County courtroom, Milwaukee Alderman Michael McGee (aka Jackson) will not be charged with perjury.
The perjury occurRed on April 12, May 12, and May 16, 2006 during Domestic Abuse Injunction Hearings before the Family Court Commissioner and Judge Clare Fiorenza. The hearing involved McGee/Jackson and his pregnant former mistress Kimley Rucker. Continue reading
Sharman Networks Ltd., the company behind the music-swapping service called Kazaa, has agreed to pay $115 million ot the entertainment industry to settly piracy lawsuits. The company has also agreed to help discourage piracy of music online.
Kazaa software was downloaded more than 389 million times, and the company used a “Fast Track” file sharing network to connect millions of personal computers. Sharman Networks is now negotiating distribution licenses with entertainment companies, which would allow the company to legally distribute music and movies through its service.
In the ongoing saga of the life of Alderman Michael McGee (aka Jackson), there is a new development. McGee/Jackson had a restraining order against him, which prohibited contact with his ex-mistress Kimley Rucker.
Rucker was pregnant, allegedly by McGee/Jackson. She got a restraining order against him due to domestic volence, and in court the day of the restraining order, McGee/Jackson told her that if she drove by his house, he’d kill her. Continue reading