ReportWire

Tag: Corporate crime

  • US, UK, and Canada sanction Lebanon’s former central bank governor over corruption allegations

    US, UK, and Canada sanction Lebanon’s former central bank governor over corruption allegations

    [ad_1]

    BEIRUT — The United States, United Kingdom, and Canada slapped sanctions Thursday on Lebanon’s embattled former central bank governor and a handful of close relatives and associates over allegations of corruption, the U.S. Treasury Department said.

    Riad Salameh, 73, ended his 30-year tenure on July 31 under a cloud of investigation and blame for his country’s historic economic crisis.

    France, Germany, and Luxembourg are investigating Salameh and close associates over alleged financial crimes, including illicit enrichment and the laundering of $330 million. Paris and Berlin issued Interpol notices on Salameh in May, though Lebanon does not hand over its citizens to foreign countries.

    “Salameh abused his position of power, likely in violation of Lebanese law, to enrich himself and his associates by funneling hundreds of millions of dollars through layered shell companies to invest in European real estate,” a U.S. Treasury Department statement said.

    The statement said the U.S. coordinated the sanctions with the U.K. and Canada and that assets connected to Salameh would be frozen. The U.S. also sanctioned Salameh’s son Nady, brother Raja, close associate Marianne Hoayek and “former partner” Anna Kosakova. The U.K. sanctioned the same list of people except Nady Salameh, and Canada sanctioned only Salameh, his brother and Howayek.

    Salameh has repeatedly denied allegations of corruption, embezzlement, and illicit enrichment. He insists that his wealth comes from inherited properties, investments and his previous job as an investment banker at Merrill Lynch.

    Salameh’s lawyer did not immediately respond to a request from The Associated Press for comment on the sanctions.

    U.S. officials said Salameh allegedly hid his identity through Panama shell companies and a trust in Luxembourg in a scheme where he purchased shares in a company his son Nady worked for as an investment advisor. He then sold those shares to a Lebanese bank regulated by the Central Bank, which the U.S. Treasury said was a conflict of interest and likely violated a Lebanese law that banned central bank employees from profiting from private businesses .

    Raja has been accused of supporting his brother’s embezzlement through a brokerage firm he owns called Forry Associates Ltd, which the U.S. Treasury described as a shell company based in the Virgin Islands.

    Howayek, meanwhile, was accused of transferring hundreds of millions of dollars to the Salamehs from her bank account, which was “far more” than what could be accounted for with her central bank salary.

    Nady Salameh was sanctioned as “the publicly registered officer” of companies registered in Luxembourg that purchased high-end real estate worth tens of millions of dollars through subsidiary companies in Belgium and Germany.

    France-based Kosakova was accused of using funds funneled from Forry to purchase luxury properties in Paris, including apartments in high-end neighborhoods, and an office building on the touristic Champs-Elysées avenue for the central bank as a “continuity of operations” center.

    Salameh is also being investigated in Lebanon. The Lebanese judiciary had taken his passports and imposed a travel ban soon after receiving the Interpol notices.

    Salameh has has criticized the European probe and said it was part of a media and political campaign to scapegoat him.

    Once hailed as Lebanon’s guardian of financial stability, Salameh has been among the officials most blamed for policies that led to the country’s economic crisis, which has decimated the value of the Lebanese pound by around 90% against the U.S. dollar and sparked triple-digit inflation.

    Lebanon has not appointed a new central bank governor, but a vice governor, Wassim Mansouri, has been named acting governor. The crisis-hit country has also been without a president for almost a year and is run by a caretaker Cabinet with limited functions.

    “The only way to put Lebanon on the path to much-needed economic recovery is for its leaders to stamp out corruption and implement real reforms.” the UK’s minister of state for the Middle East, Lord Ahmad of Wimbledon, said in a statement from the Foreign, Commonwealth and Development Office announcing the sanctions.

    [ad_2]

    Source link

  • Prison probably isn’t the end of the political road for Pakistan’s ex-Prime Minister Imran Khan

    Prison probably isn’t the end of the political road for Pakistan’s ex-Prime Minister Imran Khan

    [ad_1]

    ISLAMABAD — Former Prime Minister Imran Khan, Pakistan’s popular opposition leader, is now an inmate at a high-security prison after being convicted of corruption and sentenced to three years.

    It’s the most dramatic twist yet in months of political and legal wrangling between Khan and his political rivals since he was toppled in a parliamentary no-confidence vote in April 2022.

    Khan’s party said it will appeal what government critics describe as a flimsy case, aimed at removing the former cricket star from politics ahead of a general election meant to be held this fall. The government defended the conviction as lawful and denied that Khan is a victim of political persecution.

    If the conviction stands, the 70-year-old Khan would be prohibited by law from running for office or leading Pakistan Tehreek e-Insaf, the party he founded in the 1990s. However, polls indicate a strong election showing for PTI, and Khan’s imprisonment could further boost its standing.

    WHAT WAS THE CASE AGAINST HIM?

    An Islamabad court ruled Saturday that Khan failed to report income from gifts he received from foreign dignitaries and heads of state while he was in power. In Pakistan, government leaders are allowed to keep such gifts after leaving power, in exchange for paying a portion of the value for them.

    The court said Khan sold some of those gifts and failed to state those earnings in a report last year to Pakistan’s election commission. The court convicted Khan of corruption, handed down a three-year sentence and fined him 100,000 rupees, or roughly $350.

    Shortly after the verdict, Khan was detained at his home in the eastern city of Lahore and taken to a high-security lockup in the town of Attock, about an hour’s drive from the capital of Islamabad.

    WHAT OTHER CASES ARE PENDING AGAINST KHAN?

    Since Khan’s ouster, more than 150 cases have been filed against him by various government agencies on charges ranging from contempt of court to terrorism and inciting violence.

    Critics say this flurry of legal filings is part of an attempt by the governing coalition to sideline Khan, who as opposition leader has been able to mobilize huge crowds of loyal supporters.

    The government, in turn, portrays Khan as a corrupt trickster who has employed legal maneuvers to stay out of prison. The government has backers in Pakistan’s powerful military, which has controlled the country for much of its 75-year history.

    HOW IS THIS ARREST DIFFERENT?

    Khan is being held in Attock, a notorious lockup for convicted militants and violent criminals. Officials familiar with conditions there said he has his own cell with a fan and separate bathing facilities, a step up from the prison’s generally harsh conditions. The officials spoke on condition of anonymity because they were not allowed to brief the media.

    This is in marked contrast to Khan’s brief detention in May, after he was dragged from a court hearing on a different set of corruption charges by anti-graft officials. The Supreme Court intervened swiftly, declaring the detention illegal. Khan was allowed to stay at a guest house in a police compound and could receive visitors while the legal arguments over his detention played out. Khan eventually returned to Labore, where his car was showered with rose petals.

    WHAT HAPPENS NEXT?

    The Supreme Court could overturn Khan’s conviction and sentence on appeal — an outcome that political analyst Imtiaz Gul believes is likely.

    “There was absolutely no solid case against Imran Khan, who had to face this conviction because of a technical mistake,” said Gul, who heads the Center for Research and Security Studies, an Islamabad-based think tank.

    Information Minister Marriyum Aurangzeb claimed in a statement defending the conviction that support for Khan is eroding.

    “He may deceive a few naive, gullible supporters, but the general public now recognizes his true nature,” she wrote. “His pretense has been stripped away, revealing the face of an individual who evaded the law, exploited state gifts for trivial profits.”

    If Khan’s conviction stands, he won’t be able to lead his party into an election because those with criminal convictions are barred from running for office. But even from behind bars, he could wield significant political influence.

    After his detention in May, his supporters demonstrated their ability to disrupt public life. Tens of thousands of Khan loyalists rampaged through cities, some of them destroying military and government property. The government cracked down, detaining more than 7,000, with some prosecutions still ongoing.

    By comparison, the reaction to Khan’s arrest this weekend was much more muted, possibly because of fears of another crackdown. His calls for peaceful protests failed to rouse widespread support.

    WHAT IS THE POLITICAL FALLOUT?

    Prime Minister Shehbaz Sharif is likely to dissolve parliament in the coming weeks, possibly paving the way for elections by mid-November. The government could delay the vote by several months if it decides to redraw constituencies based on recent census results.

    Khan’s imprisonment could win him and his party greater electoral support. It would also feed into the political persona he created after losing power — that of a fearless campaigner for Pakistan’s disadvantaged.

    “The next elections are likely to be held without active participation of Imran Khan, but even from jail, he has the potential to effectively run a campaign for his candidates,” said political analyst Azim Chaudhry.

    [ad_2]

    Source link

  • The son of Colombia’s president says his father’s election campaign received money of dubious origin

    The son of Colombia’s president says his father’s election campaign received money of dubious origin

    [ad_1]

    BOGOTA, Colombia — The son of Colombian President Gustavo Petro acknowledged Thursday that his father’s 2022 election campaign received money of dubious origin, according prosecutors investigating the son for alleged illicit enrichment and money laundering.

    Nicolás Petro, who was a legislator representing a northern coastal region, agreed to cooperate with prosecutors in the probe after being charged Tuesday.

    Prosecutor Mario Andrés Burgos, who heads the investigation, said the younger Petro has revealed that unjustified increases detected in his assets came from two individuals being questioned by Colombian authorities. The money went partly into his own accounts and partly into the campaign that made his father Colombia’s first elected leftist president, the prosecutor said.

    On Tuesday, when he was charged, prosecutors said the younger Petro took thousands of dollars from drug traffickers and used it to buy luxurious homes and expensive cars. Nicolás Petro, 36, pleaded innocent to the charges, but agreed to cooperate with authorities.

    The case has come at a time when Colombia’s president is losing popularity and has been exposed to attacks by opposition parties, which have become increasingly reluctant to cooperate with his legislative agenda.

    The investigation stems from a shocking declaration made by the son’s former wife, Daysuris Vásquez, to local news magazine Semana in March.

    Vasquez said she was present at meetings where Nicolás Petro arranged a 600 million peso ($150,000) donation from a politician who was once convicted in Washington of drug trafficking and who wanted to contribute to Gustavo Petro’s 2022 presidential campaign.

    She accused her ex-husband of pocketing the money and said that the father’s presidential campaign had no knowledge of the donation.

    On Thursday, prosecutors said the “resources” in the case were around $270,000 that was delivered by Samuel Santander Lopesierra and Gabriel Hilsaca to Nicolás Petro.

    Lopesierra was convicted and extradited to the United States, where he was sentenced for drug trafficking. Hilsaca is the son of Alfonso Hilsaca, who is currently being prosecuted on charges of murder and criminal conspiracy in Colombia.

    Burgos said the president’s son has promised to deliver audio recordings and documentary evidence that would corroborate that part of the money he received was used to finance his father’s electoral campaign without being duly reported to authorities..

    Prosecutors also accused Vásquez of co-operating in the money laundering scheme and said she helped her husband hide thousands of dollars in cash in suitcases that the couple kept at their home.

    The couple, who no longer live together, were arrested Saturday and have been held at the headquarters of the Chief Prosecutor’s Office in Bogota.

    Thursday’s hearing was held to hear arguments on whether Nicolás Petro’s detention should be switched to house arrest.

    The president has said he would not interfere with the investigation, and wrote a message on X, the platform formerly known as Twitter, in which he said he hoped his son would “reflect on his mistakes.”

    [ad_2]

    Source link

  • Texas Attorney General Ken Paxton to appear in Houston court hearing for his securities fraud trial

    Texas Attorney General Ken Paxton to appear in Houston court hearing for his securities fraud trial

    [ad_1]

    Embattled Texas Attorney General Ken Paxton is set to appear in a Houston courtroom to discuss his nearly decade-long delayed trial on securities fraud charges

    ByJUAN A. LOZANO Associated Press

    FILE – Texas Attorney General Ken Paxton makes a statement at his office, May 26, 2023, in Austin, Texas. Paxton, awaiting the start of a separate impeachment trial, is set to appear in a Houston courtroom Thursday, Aug. 3, to discuss his nearly decade-long delayed trial on securities fraud charges. (AP Photo/Eric Gay, File)

    The Associated Press

    HOUSTON — Embattled Texas Attorney General Ken Paxton, awaiting the start of a separate impeachment trial, is set to appear in a Houston courtroom Thursday to discuss his nearly decade-long delayed trial on securities fraud charges.

    It’s unclear if any decision will be made during the court hearing on when Paxton might finally go to trial on felony charges of defrauding investors in a tech startup. He was indicted in 2015.

    The case is back in a Houston courtroom after the Texas Court of Criminal Appeals upheld a decision last month by a judge who originally oversaw the case to move the proceedings out of Paxton’s hometown near Dallas. Paxton has spent years fighting to keep the trial in Collin County, where he maintains wide support among GOP activists and his wife, Angela Paxton, is a state senator.

    Paxton was scheduled to appear in court during the hearing, said Philip Hilder, one of Paxton’s lawyers. Paxton has rarely appeared in court for hearings in the securities fraud case.

    Hilder declined to comment on what might be discussed during the status conference hearing but said he expected it to be “relatively short.”

    Brian Wice, a special prosecutor who was appointed to the securities fraud case after Paxton was indicted, declined to comment.

    The hearing will be before state District Judge Andrea Beall, a Democrat.

    The indictments accuse Paxton of defrauding investors in a Dallas-area tech startup by not disclosing he was being paid by the company, called Servergy, to recruit them. The indictments were handed up just months after Paxton was sworn in as Texas’ top law enforcement officer.

    A multitude of reasons have delayed the trial, including legal debate over whether the case should be tried in the Dallas area or Houston, changes in which judge would handle the case and a protracted battle over how much the special prosecutors should get paid.

    If convicted of the securities fraud charges, Paxton faces up to 99 years in prison.

    Thursday’s hearing comes as Paxton faces removal from office following his historic impeachment by the state House in May. A trial in the Texas Senate is set to begin Sept. 5.

    The case is among the 20 articles of impeachment the Texas House of Representatives brought against Paxton. Other impeachment charges surround Paxton’s relationship with Nate Paul, an Austin real estate developer who has been indicted on charges of making false statements to banks to obtain more than $170 million in loans.

    ___

    Follow Juan A. Lozano on the X platform: https://twitter.com/juanlozano70

    [ad_2]

    Source link

  • Media owner files complaint alleging interference by Costa Rica’s president in custody dispute

    Media owner files complaint alleging interference by Costa Rica’s president in custody dispute

    [ad_1]

    Prosecutors say a banker and media owner has filed a legal complaint against Costa Rican President Rodrigo Chaves, alleging that his administration interfered in his child custody dispute

    FILE – Costa Rica’s President Rodrigo Chaves walks during a visit to Goal Project in San Jose, Costa Rica, Sunday, Aug. 28, 2022. It was announced on Tuesday, Aug. 1, 2023, that Chavez has been placed under investigation by local authorities for influence peddling. (AP Photo/Moises Castillo, File)

    The Associated Press

    SAN JOSE, Costa Rica — Prosecutors said Tuesday that a banker and media owner has filed a legal complaint against Costa Rican President Rodrigo Chaves, alleging that his administration interfered in his child custody dispute.

    The animosity between Chaves and the complainant Leonel Baruch, who owns online news site CR Hoy, is well known.

    Baruch’s complaint, which alleges influence trafficking by the president and top officials, is one that any citizen can file, and does not necessarily lead to any charges.

    The dispute came to light when the former head of Costa Rica’s child welfare agency, Gloriana López Fuscaldo, claimed she had received a phone call from Chaves’ chief of staff, telling her the president wanted her to “rule well” on the custody case.

    López Fuscaldo later went to neighboring Panama, claiming she feared for her safety.

    Chaves did not immediately respond to Baruch’s complaint, but said López Fuscaldo could return at any time.

    “I just want to tell Gloriana that she can return with the assurance that nobody is going to do anything to her, she should stop making things up,” Chaves said.

    Chaves has previously called reporters from CR Hoy “political assassins,” and his administration briefly tried to bring a tax evasion case against one of Baruch’s companies.

    Chaves began a four-year term as Costa Rica’s president in May 2022. There have been about 18 such legal complaints filed against his administration, all of them reportedly still open.

    [ad_2]

    Source link

  • Lebanon’s central bank governor ends 30-year tenure under investigation during dire economic crisis

    Lebanon’s central bank governor ends 30-year tenure under investigation during dire economic crisis

    [ad_1]

    BEIRUT — Lebanon’s embattled central bank governor stepped down Monday under a cloud of investigation and blame for his country’s economic crisis as several European countries probe him for alleged financial crimes.

    Riad Salameh, 73, ended his 30-year tenure atop the central bank as tearful employees took photos and a band played celebratory music with drums and trumpets.

    In that same building, his four vice governors, led by incoming interim governor Wassim Mansouri, quickly pivoted to urge fiscal reforms for the cash-strapped country.

    “We are at a crossroads,” Mansouri said at a news conference. “There is no choice, if we continue previous policy … the funds in the Central Bank will eventually dry up.”

    Seventy-three-year-old Riad Salameh kicked off his tenure as central bank governor in 1993, three years after Lebanon’s bloody 15-year civil war came to an end. It was a time when reconstruction loans and aid was pouring into the country, and Salameh was widely celebrated at the time for his role in Lebanon’s recovery.

    Now, he leaves his post a wanted man in Europe, accused by many in Lebanon of being a main culprit in the country’s financial downfall since late 2019.

    It was a steep fall for a leader whose policies were once hailed for keeping the currency stable. Later, many financial experts saw him as setting up a house of cards that crumbled as the country’s supply of dollars dried up on top of decades of rampant and corruption and mismanagement from Lebanon’s ruling parties.

    The crisis has pulverized the Lebanese pound and wiped out the savings of many Lebanese, as the banks ran dry of hard currency.

    With the country’s banks crippled and public sector in ruins, Lebanon for years has run on a cash-based economy and relied primarily on tourism and remittances from millions in the diaspora.

    Mansouri said previous policies that permitted the Central Bank to spend large sums on money to prop up the Lebanese state is no longer feasible. He cited years of spending billions of dollars to subsidize fuel, medicine, and wheat and more to keep the value of the Lebanese pound stable.

    Instead, Mansouri proposed a six-month reform plan that included passing long awaited reforms such as capital controls, a bank restructuring law, and the 2023 state budget.

    “The country cannot continue without passing these laws,” Mansouri explained. “We don’t have time, and we paid a heavy price that we cannot pay anymore.”

    The reforms Mansouri mentioned are among those the International Monetary Fund set as conditions on Lebanon in April 2022 for a bailout plan, though he did not mention the IMF. None have been passed.

    France, Germany, and Luxembourg are investigating Salameh and his associates over myriad financial crimes, including illicit enrichment and the laundering of $330 million. Paris and Berlin issued Interpol notices to the central bank chief in May, though Lebanon does not hand over its citizens to foreign countries.

    Salameh has repeatedly denied the allegations and insisted that his wealth comes from his previous job as an investment banker at Merrill Lynch, inherited properties, and investments. He has criticized the probe and said it was part of a media and political campaign to scapegoat him.

    In his final interview as governor, Salameh said on Lebanese television that the responsibility for reforms lies with the government.

    “Everything I did for the past 30 years was to try to serve Lebanon and the Lebanese,” he said. “Some — the majority — were grateful, even if they don’t want to say so. And there are other people, well may God forgive them.”

    Salameh’s departure adds another gap to crisis-hit Lebanon’s withering and paralyzed institutions. The tiny Mediterranean country has been without a president nine months, while its government has been running in a limited caretaker capacity for a year. Lebanon has also been without a top spy chief to head its General Security Directorate since March.

    Lebanese officials in recent months were divided over whether Salameh should stay in his post or whether he should step down immediately in the remaining months of his tenure.

    Caretaker Economy Amin Salam wanted the latter, given that the central bank chief had a “legal question mark.”

    “I cannot explain anyone holding on to a person while a nation is failing unless there is something wrong or hidden,” Salam told The Associated Press.

    [ad_2]

    Source link

  • China-Founded Rivals Ramp Up War for American Shoppers

    China-Founded Rivals Ramp Up War for American Shoppers

    [ad_1]

    China-Founded Rivals Ramp Up War for American Shoppers

    [ad_2]

    Source link

  • British billionaire owner of Tottenham football club charged with ‘brazen’ insider trading

    British billionaire owner of Tottenham football club charged with ‘brazen’ insider trading

    [ad_1]

    U.S. prosecutors have called an offsides on the British billionaire owner of Tottenham Hotspur soccer team, charging him with a “brazen insider-trading scheme,” in which he passed secret stock tips worth millions to his girlfriends, private pilots and assistants for years.

    Joe Lewis, 86, who is one of the richest people in the United Kingdom, is accused of taking inside information about companies in which he was a large investor and handing it out to people around him for them to use to get rich.  

    “Notwithstanding his vast personal wealth, Lewis provided the inside information to his employees, romantic partners, and friends as a way to give them compensation and gifts,” federal prosecutors wrote in an indictment filed in New York.

    Prosecutors say Lewis, who Forbes has estimated to be worth $6.1 billion, carried on with the scheme from 2013 through 2021, helping his employees and friends make millions of dollars in illicit gains. 

    Some people who benefited from Lewis’ loose lips included staff on his private, $250 million super yacht, the Aviva.

    In some cases, prosecutors allege Lewis gave his pilots short-term, $500,000 loans to buy stock and then pay him back after they scored big based on his tips.

    “Thanks to Lewis, those bets were a sure thing,” said Damian Williams, the U.S. attorney for the Southern District of New York. “That’s classic corporate corruption. It’s cheating and it is against the law.”

    Lewis’ private equity company, Tavistock Group, has investments in hundreds of companies ranging from agriculture, sports, resort properties and life-sciences businesses. The firm owns works of art by painters like Pablo Picasso, Henri Matisse and Gustav Klimt.

    Investigators say Lewis shared information about publicly-traded life-science groups Solid Biosciences
    SLDB,
    +0.88%

    and Mirati Therapeutics
    MRTX,
    -2.43%
    ,
    as well as beef producer Australian Agricultural Co.
    AAC,
    -2.79%

    and a special purpose acquisition company, BCTG. 

    Prosecutors also allege that he hid how much of a stake he owned in cancer therapeutics company Mirati “through a pattern of false filings and misleading statements” in order to manipulate markets.  

    A message sent to representatives of Tavistock wasn’t immediately returned.

    Making his fortune as a currency trader, Lewis became more widely known when he acquired the Tottenham football club in 2001 for $35.5 million. 

    He has lived as a tax exile in the Bahamas for years. 

    [ad_2]

    Source link

  • Takeaways from AP’s report on financial hurdles in state crime victim compensation programs

    Takeaways from AP’s report on financial hurdles in state crime victim compensation programs

    [ad_1]

    Thousands of crime victims each year are confronted with the difficult financial reality of state compensation programs that are billed as safety nets to offset costs like funerals, medical care, relocation and other needs.

    Many programs require victims to pay for those expenses first and exhaust all means of payment before they reimburse costs, often at rates that don’t fully cover expenses. The programs also struggle under often unstable funding mechanisms that leave their budgets vulnerable to shortages and the changing priorities of lawmakers, especially those that rely on court fees and fines as their main source or only source of funding.

    Pamela White turned to Louisiana’s victim compensation board for help when her son, Dararius Evans, was killed in a shooting a few days after Christmas in 2019. She was met with administrative hurdles, a denial that blamed her son for his own death, a lengthy appeal — all while paying up front through a personal loan that gathered interest as she waited.

    In the end, White won her appeal and was awarded $5,000 — the maximum amount available at the time, but it didn’t cover her full loan or the interest.

    As part of a series examining crime victim compensation programs, The Associated Press found racial inequities and other barriers in how many states deny claims. The AP also found victims in a dozen states were the driving force in legislative reforms to address some of those barriers.

    Here is a look at key takeaways from the third installment in that series.

    PROGRAMS OFTEN PUT THE UPFRONT FINANCIAL BURDEN ON VICTIMS

    Advocates say most states’ requirements that victims pay upfront can leave out people living on the edge of financial disaster who are often most vulnerable to a crime.

    “So many families often can’t rely solely on that reimbursement model. … Those funds take months to arrive to families,” said Aswad Thomas, vice president of the Alliance for Safety and Justice, a nonprofit working to reform victim compensation and other aspects of the criminal justice system.

    Some programs offer to directly pay funeral homes or medical providers. And many states offer emergency awards to help victims through the immediate aftermath of crime, but advocates say those awards are restrictive, capped as low as $500, and are deducted from any later award. About a dozen states don’t offer emergency awards at all.

    Programs also require victims to exhaust other payment options first, like insurance, lawsuit awards or even crowdfunding. If a family member or friend starts a GoFundMe drive, it could cause some programs to reduce an award or claw back already granted money.

    MANY STATES HAVEN’T INCREASED AWARD AMOUNTS IN DECADES

    The Associates Press found that the maximum awards states provide ranged from $10,000 to $190,000, though two states did not have overall caps on awards. Some of those amounts haven’t been increased since the 1970s.

    Programs have lagged less in raising limits on individual expenses like funerals. But many states don’t offer enough money to cover the actual cost of burying a loved one. The National Funeral Directors Association estimated the median cost of a funeral with burial vault was more than $9,400 in 2021. Only a dozen states offer enough to cover that median cost.

    FUNDING FOR STATE PROGRAMS IS OFTEN UNSTABLE

    About a dozen states get most or all of their funding from recurring state budget dollars. But many states have put the onus of paying for the programs on people in the criminal justice system – court fines, taking a percentage of prisoner wages or prison commissary fees.

    Those funding streams can fluctuate greatly. Temporary court closures early in the COVID-19 pandemic, and well-intentioned prison and criminal justice reforms aimed at reducing incarceration have caused shortfalls in some states that rely heavily on court or prison fines and fees for funding.

    A handful of state legislatures have used one-time general fund infusions to plug budget holes created by the downstream effects of those reforms. In Hawaii, shortfalls nearly caused the compensation program to close in 2022 until an influx of general funds “saved” the program, according to an annual report.

    ___

    Catalini reported from Trenton, New Jersey. Lauer reported from Philadelphia.

    ___

    The Associated Press receives support from the Public Welfare Foundation for reporting focused on criminal justice. The AP is solely responsible for all content.

    [ad_2]

    Source link

  • AMC revises stock-conversion settlement plan after Friday’s surprise court setback

    AMC revises stock-conversion settlement plan after Friday’s surprise court setback

    [ad_1]

    AMC Entertainment Holdings Inc. has submitted a revised proposal for its stock-conversion plan, after a judge rejected a settlement Friday that would have given a green light to the deal.

    In a letter to investors that was posted Sunday on Twitter, AMC Chief Executive Adam Aron said that a modified proposal was filed Saturday with the Delaware Chancery Court intended to address the court’s concerns. If the court agrees, Aron said he hopes to implement the plan “as soon as possible.”

    Movie-theater chain AMC
    AMC,
    +1.62%

     has wanted to turn its its so-called APE
    APE,
    -2.17%

    — or AMC Preferred Equity — preferred units into common stock as part of its battle to eliminate debt. But Delaware Chancery Court Vice Chancellor Morgan Zurn on Friday rejected a settlement with opposing shareholders that would have allowed that conversion to move forward. That sent AMC shares rocketing more than 60% higher in after-hours trading Friday.

    “AMC must be in a position to raise equity capital,” Aron stressed in his letter Sunday, saying that if the company is unable to do so, the risk of running out of cash in 2024 or 2025 rises.

    “The risk of financial collapse is not whimsical,” Aron said, noting the bankruptcies of rival theater chain Cineworld/Regal and retailer Bey Bath & Beyond.

    AMC shares are up 8% year to date, but have sunk 54% over the past 12 months.

    [ad_2]

    Source link

  • AMC stock surges 60% after Delaware judge puts brakes on APE-to-stock conversion plan

    AMC stock surges 60% after Delaware judge puts brakes on APE-to-stock conversion plan

    [ad_1]

    Shares of AMC Entertainment Holdings Inc. rocketed more than 60% higher on Friday after a judge in Delaware shot down a settlement that would have allowed the movie-theater chain to move ahead with a plan, maligned by some investors, to dump more shares onto the market, according to reports.

    AMC
    AMC,
    +1.62%

    has wanted to turn its its so-called APE — or AMC Preferred Equity — preferred units into common stock. But Delaware Chancery Court Vice Chancellor Morgan Zurn rejected an earlier settlement that would have allowed that conversion to move forward.

    The theater chain has been looking to find ways to boost its share count and sell more shares — a tack that helped it through the COVID-19 pandemic — as it tries to shore up its finances and rein in its debt, the Wall Street Journal noted.

    But not every investor was on board with the plan, amid worries about share dilution.

    “At this juncture, the Court’s only task is to approve or reject the proposed
    settlement,” wrote in the ruling, obtained by Bloomberg Law. “The focus of the settlement is on the claims presented in this case. The Court cannot address issues that do not pertain to the fairness of the settlement.”

    “Such issues raised by AMC stockholders include theories about synthetic shares, Wall Street corruption, dark pool trading, insider trading and RICO violations, and a request for a share count,” the ruling continued. “The Court’s role is limited to considering settlement-specific issues, like the strength of the plaintiffs’ claims, the consideration the class would receive, and the scope of the release the class would give in exchange for that consideration.”

    “To cut to the chase, the settlement cannot be approved as submitted,” the ruling added later.

    AMC did not immediately respond to a request for comment.

    [ad_2]

    Source link

  • Prosecutor cites risky investments as ‘grave’ violations, in closing of Vatican financial case

    Prosecutor cites risky investments as ‘grave’ violations, in closing of Vatican financial case

    [ad_1]

    VATICAN CITY — VATICAN CITY (AP) —

    The Vatican prosecutor insisted Tuesday that his indictments of 10 people, including a cardinal, for alleged financial crimes held up under two years of testimony, criticism and defense motions, as he began closing arguments in a trial that exposed the unseemly financial underbelly of the Holy See.

    Prosecutor Alessandro Diddi opened two weeks of hearings to summarize his case by accusing officials in the Vatican secretariat of state of committing “grave violations” of internal norms and canon law when they decided in 2012 to start investing the pope’s money in “highly speculative” investments, including in a 350 million euro (US $390 million) London real estate venture.

    “There’s not a single faithful (Catholic) who has donated a euro thinking that this euro would be used in speculative operations,” Diddi said, alleging that such canonical violations amounted to criminal abuse of office and embezzlement.

    The sprawling Vatican trial originated in the London deal but grew to include two other tangents implicating Cardinal Angelo Becciu, once a papal contender and the first-ever cardinal to stand trial in the Vatican court: One involved allegations he donated some 125,000 euros in Vatican money to a Sardinian charity run by his brother; the other involved allegations he used some 575,000 euros in Vatican funds to double pay a self-styled security analyst ransom fees to help free a nun held hostage by al-Qaida-linked militants in Mali.

    The ransom payments, in particular, exposed inner financial and diplomatic workings of the Vatican that were never supposed to come to light. Together with evidence that Vatican monsignors brought in foreign intelligence agents to debug their offices and cardinals secretly recorded Pope Francis, the trial has served as an eye-opening reality check of life in the world’s tiniest country that is headquarters to the 1.3-billion strong Catholic Church.

    All 10 defendants denied wrongdoing and, over the course of the two-year trial, some accused the tribunal of denying them basic defense rights, including access to key prosecution evidence. Some defense lawyers even called into question Francis’ role in the case, since he changed Vatican law four times during the investigation in ways that benefitted the prosecution.

    Diddi conceded that the trial, the most complicated in the Vatican City State’s history, posed a test for the “capacity of the system” and that there were problems, difficulties and tensions. But he insisted that at the end of the day, “the indictment held up.”

    Diddi conceded flaws in his original thesis that donations from rank-and-file faithful for papal charities had funded the investments, acknowledging that the bulk of the money instead had come from the annual transfer of profits from the Vatican bank, which over 16 years came to some 700 million euros. But he said those monies too, should never have been used for speculative investments since they were designated for the pope’s use or to support the Vatican bureaucracy.

    That said, the defense repeatedly argued and offered evidence that both Francis and the Vatican secretary of state were well aware of the various financial investments and transactions and approved them, including the 15 million euro payout to a London-based broker accused of extorting the Holy See for control of the London property.

    One of the most mysterious figures in the trial was Monsignor Alberto Perlasca, who was in charge of managing the secretariat of state’s asset portfolio. He was initially a prime suspect but then flipped and started cooperating with prosecutors. Diddi acknowledged his decision to spare Perlasca indictment had been criticized, and suggested he would certainly adapt if the judges decide Perlasca should eventually stand trial for his own role in the fiasco, given evidence he was manipulated into changing his story.

    Diddi has five more hearings, this week and next, to summarize his case. The court then takes a summer recess until the end of September, at which point the defense and civil parties present their closing arguments. Judge Giuseppe Pignatone has said he expects a verdict before the end of the year.

    [ad_2]

    Source link

  • Court Rules Against Uber. It’s a Victory for Drivers.

    Court Rules Against Uber. It’s a Victory for Drivers.

    [ad_1]


    • Order Reprints

    • Print Article

    [ad_2]

    Source link

  • FTC files appeal, again seeks to block Microsoft-Activision deal

    FTC files appeal, again seeks to block Microsoft-Activision deal

    [ad_1]

    The Federal Trade Commission on Thursday asked an appeals court to temporarily block Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc. while it challenges a ruling earlier this week green-lighting the deal.

    The FTC on Thursday asked U.S. District Judge Jacqueline Scott Corley to postpone her ruling — which she promptly denied — and also appealed to the Ninth U.S. Circuit Court of Appeals in San Francisco to pause the acquisition “to preserve the status quo” while the case is reviewed, claiming it is likely to succeed in its appeal.

    According to the filing, the FTC claims the judge applied the wrong legal standard to its request for a preliminary injunction, and erred in a number of other matters.

    The deal is set to close in the coming days, and letting it happen will “irreparably harm the public interest and the FTC,” regulators said.

    Also see: GOP blasts FTC Chair Khan as a ‘bully’ after agency’s loss in Microsoft case

    In a response filed with the court, Microsoft said the FTC “failed to carry its burden on independent, fact-based grounds” and “dragged its heels” before appealing.

    “The court has already found that it would be inequitable” to order an injunction that could lead to “the potential scuttling of the merger,” Microsoft said, in asking for the FTC’s request to be denied.

    The FTC has claimed the tie-up of a major videogame platform — Microsoft’s
    MSFT,
    +1.62%

     Xbox — with a major videogame publisher — Activision
    ATVI,
    -0.51%

     makes the wildly popular “Call of Duty,” among other titles — would be harmful to the videogame industry and consumers.

    Microsoft has pledged to keep “Call of Duty” available to Sony’s
    SONY,
    +2.82%

     PlayStation console for 10 years, and will make it available for Nintendo’s 
    7974,
    -0.36%

     Switch and some cloud-gaming platforms.

    In her ruling clearing the deal Tuesday, Corley said the FTC did not show “this particular vertical merger in this specific industry may substantially lessen competition.”

    Bloomberg News reported late Thursday that Microsoft and Activision are considering giving up some control of their cloud-gaming business in the U.K. to win approval of British regulators, who — if the U.S. appeals court does not act — are the final hurdle to the deal closing on time.

    FTC Chair Lina Khan testified on Capitol Hill on Thursday, where Republican lawmakers assailed her actions and sharply criticized her agency’s court losses in trying to block the Microsoft-Activision deal and Meta’s
    META,
    +1.32%

    acquisition of a virtual-reality gaming company earlier this year.

    Read more: After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech

    Also: FTC’s probe of OpenAI marks key moment in Khan’s push to rein in Big Tech

    [ad_2]

    Source link

  • Founder of failed crypto lending platform Celsius Network arrested on fraud charges

    Founder of failed crypto lending platform Celsius Network arrested on fraud charges

    [ad_1]

    NEW YORK — The founder and former CEO of the failed cryptocurrency lending platform Celsius Network was freed on $40 million bail Thursday after pleading not guilty to federal fraud charges alleging that he schemed to defraud customers by misleading them about key aspects of the business.

    Alexander Mashinsky, 57, of Manhattan, was charged with securities, commodities and wire fraud in an indictment unsealed in Manhattan federal court. He was also charged with illegally manipulating the price of Celsius’s proprietary crypto token while secretly selling his own tokens at inflated prices.

    Mashinsky left the court without commenting after an attorney, Benjamin Alee, told a magistrate judge that Mashinsky was pleading not guilty. When the judge asked if that was his plea, Mashinsky said it was. The $40 million personal recognizance bond is secured by property and the signatures of his wife and a second person.

    Another Mashinsky attorney, Jonathan Ohring, said in an email that his client “vehemently denies the allegations brought today.”

    “He looks forward to vigorously defending himself in court against these baseless charges,” Ohring added.

    According to the indictment, Mashinsky from 2018 to 2022 pitched Celsius to customers as a modern-day bank where they could safely deposit crypto assets and earn interest. But, it said, Mashinsky operated Celsius like a risky investment fund, taking in customer money under false and misleading pretenses and exposing customers to a high-risk business.

    The indictment alleged that Mashinsky promoted Celsius through media interviews, his Twitter account and Celsius’s website, along with a weekly “Ask Mashinsky Anything” session broadcast posted to Celsius’s website and a YouTube channel.

    Celsius employees from multiple departments who noticed false and misleading statements in the sessions warned Mashinsky, but they were ignored, the indictment said.

    Mashinsky’s false portrayal of Celsius as a safe and secure institution caused its customer base to grow exponentially through a large number of retail investors, the indictment said.

    By the fall of 2021, Celsius had become one of the largest crypto platforms in the world, purportedly holding approximately $25 billion in assets, it said.

    U.S. Attorney Damian Williams said the arrest of Mashinsky was further proof that his office will seek to hold responsible those who try to cheat ordinary investors.

    “Whether it’s old-school fraud or some new-school crypto scheme, it doesn’t matter one bit. It’s all fraud to us. And we’ll be here to catch it,” he said.

    The Securities and Exchange Commission on Thursday also sued Mashinsky and Celsius, saying they misled investors through unregistered and often fraudulent offers and sales of crypto asset securities.

    In January, New York Attorney General Letitia James sued Mashinsky in state court in Manhattan, saying he misled hundreds of thousands of investors.

    Celsius filed for bankruptcy last year.

    [ad_2]

    Source link

  • FTC will appeal judge’s ruling clearing Microsoft-Activision deal

    FTC will appeal judge’s ruling clearing Microsoft-Activision deal

    [ad_1]

    The Federal Trade Commission late Wednesday filed notice that it will appeal a judge’s ruling this week that gave Microsoft Corp. the green light to proceed with its $69 billion acquisition of Activision Blizzard Inc.

    In a filing with the Ninth Circuit Court of Appeals in San Francisco, the FTC is seeking to overturn U.S. District Judge Jacqueline Scott Corley’s ruling Tuesday, which said the deal would not hurt competition.

    “The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers,” Brad Smith, Microsoft’s vice chair and president, said in a statement.” We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.” 

    The FTC has claimed the tie-up of a major videogame platform — Microsoft’s
    MSFT,
    +1.42%

    Xbox — with a major videogame publisher — Activision
    ATVI,
    -1.09%

    makes the wildly popular “Call of Duty,” among other titles — would be harmful to the videogame industry and consumers.

    “The facts haven’t changed,” an Activision spokesperson said Wednesday. “We’re confident the U.S. will remain among the 39 countries where the merger can close. We look forward to reinforcing the strength of our case in court, again.”

    Microsoft has pledged to keep “Call of Duty” available to Sony’s
    SONY,
    +1.78%

    PlayStation console for 10 years, and will make it available for Nintendo’s
    7974,
    +1.63%

    Switch and some cloud-gaming platforms.

    The deal faces a July 18 deadline, and still must gain regulatory approval in the U.K.

    Tuesday’s ruling was yet another antitrust setback for the FTC, which has failed to do much to rein in Big Tech, and one analyst told MarketWatch on Tuesday that the regulators need to do ” a much better job of picking their battles,”

    Read more: After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech

    [ad_2]

    Source link

  • After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech

    After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech

    [ad_1]

    The U.S. Federal Trade Commission’s defeat as it sought to block Microsoft Corp.’s acquisition of videogame maker Activision Blizzard is yet another setback for an increasingly toothless regulator that needs to pick better battles with Big Tech.

    On Tuesday morning, a federal judge denied the FTC’s injunction that was seeking to block the software giant’s proposed $69 billion acquisition of Activision
    ATVI,
    +10.02%
    ,
    best known for its hit videogame “Call of Duty.” The FTC argued that Microsoft
    MSFT,
    +0.19%

    could withhold “Call of Duty” and other Activision games from rival console platforms such as Sony’s PlayStation, and keep the games on its Xbox only.

    Microsoft, in a show of faith, committed in writing to keep “Call of Duty” on PlayStation on parity with Xbox for 10 years, agreed with Nintendo
    7974,
    +1.10%

    to bring “Call of Duty” to Switch and entered into several pacts to bring Activision content to several cloud gaming services, U.S. District Court Judge Jacqueline Scott Corley noted in her decision.

    “With these 10-year contracts that Microsoft made across the board with so many vendors, Nvidia
    NVDA,
    +0.53%
    ,
    Nintendo and others, 10 years is a really long time, in my opinion,” said Sarah Hindlian-Bowler, an analyst at Macquarie Equity Research, in an interview Tuesday. “It is long enough to cover the arrival and maturity of the cloud gaming market….She understands  that 10 years is a very long long time to make a guarantee of this kind.”

    Also read: Regulators face an antitrust dilemma after Meta launches Threads

    Hindlian-Bowler said that she had been in the minority of Wall Street analysts in not believing the U.S. government would be able to block this deal.

    “The assumption that this somehow decreases the market is going to prove to be wildly incorrect,” she said, adding that she does not believe that the U.K.’s  Competition and Markets Authority will be able to block the deal either.

    The latest upset at the FTC was also not too surprising to other Capitol Hill watchers, especially in the light of other high-profile setbacks by the agency and its once-heralded commissioner, Lina Khan. When she was sworn in as chair of the FTC in mid-2021, Khan was hailed as the sheriff who would rein in Big Tech.

    “It’s hard to say I am surprised by the ruling because Khan has had a fairly unsuccessful track record,” said Owen Tedford, a senior research analyst at Beacon Policy Advisors. “The regulators are pushing the boundaries, deals that previously would have gone unchallenged have now gone challenged. And they are breaking precedent because Khan and company have expressed a dislike of settlements.”

    The FTC’s attempts to sue Meta Platforms Inc.
    META,
    +1.42%

    have had some defeats so far. In February, a California judge denied the FTC’s attempts to block Meta from buying a virtual-reality startup called Within Unlimited. The FTC’s suit to reverse Meta’s acquisitions of WhatsApp and Instagram, filed in 2021, is still plodding along.

    Additionally, the FTC recently filed a suit against Amazon.com Inc.
    AMZN,
    +1.30%
    ,
    alleging that it is too difficult for consumers to cancel their Prime accounts, and the agency is reportedly also mulling another far-reaching suit against Amazon alleging that the e-commerce giant punishes merchants who do not use its logistics services. One analyst has already made a case that the FTC will lose that fight too.

    “I think that the FTC is in need of some change, in need of some refreshing and in need of doing a much better job of picking their battles,” said Hindlian-Bowler. “This does feel toothless, a lot of the fights they are picking are toothless. And unfortunately, they are missing the real battle. They are missing TikTok, they are missing the real fights where we actually have national security at risk.”

    In February, one of the Republican commissioners on the FTC resigned, and wrote an op-ed in the Wall Street Journal accusing Khan of disregarding the rule of law and due process.

    Compared to the European Union, which has had far more success implementing regulation to rein in Big Tech, the U.S. is still much weaker. “The EU seems to be having somewhat more success, levying big fines, getting these companies to change,” said Beacon’s Tedford. “The EU has passed these bills, but the U.S., despite these efforts, has not gotten there and is not going to get there for the next two years.”

    Money spent by Big Tech to lobby Congress in a huge part of the problem, whereas in Europe, “those lawmakers feel less beholden,” he added.

    More than a century ago, President Teddy Roosevelt, known for his “speak softly and carry a big stick” foreign policy, also used his bully pulpit to bust industrial monopolies.

    If Khan and her staff want to follow his lead and rein in Big Tech, they need to start picking their future battles more carefully — and carry bigger sticks.

    [ad_2]

    Source link

  • Glitches in Japan’s unpopular MyNumber digital ID cards draw a flood of complaints

    Glitches in Japan’s unpopular MyNumber digital ID cards draw a flood of complaints

    [ad_1]

    TOKYO (AP) — The minister charged with an overhaul of Japan’s digitized system to assign a number to everyone living in the country has apologized, as doctors protested glitches with health insurance and local governments begged Thursday for clarity on how to handle the problems.

    The MyNumber, or “MaiNa” for short, system has clearly gone afoul.

    The government has ordered a total rechecking of MyNumber data, one by one, “mechanically,” as the digital agency put it. The goal is to complete it by the fall, which could be anytime from September to November.

    Record ocean heat has invaded Florida with a vengeance. Water temperatures in the mid-90s (mid-30s Celsius) are threatening delicate coral reefs, depriving swimmers of cooling dips and adding a bit more ick to the state’s already oppressive summer weather.

    A man accused of killing an 86-year-old and injuring three other people in a series of apparently random shootings while riding a scooter in New York City has been arraigned on charges including murder and attempted murder.

    Colombian prosecutors have accused a former presidential candidate of receiving at least $2.8 million from Odebrecht, the Brazilian construction giant that has admitted paying bribes across Latin America to secure infrastructure contracts.

    A U.S. intelligence assessment says Iran is not pursuing nuclear weapons at the moment but has ramped up activities that could help it develop them.

    Local governments have to deal with much of the checking work. Officials have met with Digital Minister Taro Kono demanding help. Costs for the review have not been announced, but are expected to total trillions of yen (tens of billions of dollars).

    Under MyNumber, launched in 2016, people get a card with a photo and embedded IC chip. Officials already are talking about issuing totally new cards in 2026, apparently to start afresh.

    After thousands of complaints about mistaken identities related to MyNumber this year alone, Kono’s suggestion that the system be renamed set off an uproar.

    “We are extremely sorry,” Kono told a special committee in parliament, where opposition lawmakers slammed his efforts as inept. “We will do our best to speedily check the system and win back people’s trust,” he said.

    With the system already in trouble, a plan to phase out existing health care insurance cards and replace them with MyNumber cards by next year has drawn a still shriller level of protests.

    Japan has widespread and relatively affordable health care and an insurance payment system, now being used by more than 100 million Japanese.

    The Japanese Medical and Dental Practitioners for the Improvement of Medical Care, or Hodanren, a major grouping of doctors and dentists, is opposing the MyNumber plan.

    “The dangers are clear, and the government has done nothing to take responsibility,” Dr. Kenyu Sumie, who heads Hodanren, told reporters. “To use MyNumber in medical care is dangerous and impractical.”

    A study by the industry group estimated that more than 1 million people were affected by MyNumber troubles at medical facilities between May 23 and June 19.

    No major financial losses or crimes using stolen identities have been reported. But the confusion has severely undermined government efforts to promote the system.

    “Dealing with the glitches that keep popping up is turning into wack-a-mole,” said Hideya Sugio, an opposition lawmaker and journalist.

    MyNumber problems have been aggravated by the fact that many Japanese names that sound the same may be written using different characters. Some fear this could cause lapses at hospitals that might lead to leaks or inadvertent mishandling of personal medical histories, the Hodanren says.

    The Digital Agency has not explained clearly how the government plans to rechecking the MyNumber IDs. It’s an undertaking involving the prime minister’s office, health ministry, communications ministry and local governments.

    Many Japanese, never having had to get national IDs, were leery about the system to begin with and many have never gotten MyNumber cards. The most recent estimates are that about 77% of all Japanese have one.

    Japan’s reputation for attention to detail and quality technology also has been cast into question by cybersecurity lapses and failures in online banking and stock trading systems.

    Despite the tide of public opposition, the government is eager to push ahead with MyNumber.

    It allocated 2 trillion yen ($14 billion) in public money as bonus “points” or shopping discounts for people who get MyNumber cards. The big push for its use in health care is aimed at compelling the last holdouts to get them.

    ___

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

    [ad_2]

    Source link

  • Hope and uncertainty linger as California turns the page on state-run youth prisons

    Hope and uncertainty linger as California turns the page on state-run youth prisons

    [ad_1]

    LOS ANGELES — Juvenile offenders in California might now have a better chance at rehabilitation instead of facing a mostly punitive sentence in a youth prison system that often only reinforced the patterns of neglect and violence that led many of them into trouble in the first place.

    On Saturday, California shuttered its last three state-run youth lockups and passed day-to-day operations of juvenile halls to county probation departments. The plan decentralizes care of youth offenders and prioritizes keeping them closer to home in facilities focused less on punishment and more on reformation — all in hope of breaking “the school-to-prison pipeline,” as Gov. Gavin Newsom put it in 2020.

    But will it be enough?

    Advocates say the move away from a punitive approach reflects their belief that children who commit crimes are better served in settings that emphasize education, mental health care and other supportive services.

    But supporters and skeptics alike say there is still plenty of uncertainty ahead.

    The state-run system had a troubled history marked by inmate suicides and brawls, as well as allegations of physical and sexual abuse by staff members. And more recently, state facilities had been reserved for the worst offenders — young people who had committed murder, assault and other serious crimes.

    “At the local level we just don’t have the programs and services, or the culture, that’s ready to handle to the kids with real needs, those dealing with serious trauma,” said Frankie Guzmán, director of the California Youth Justice Initiative at the National Center for Youth Law. He himself spent six years in California’s youth prisons for armed robbery.

    Jose, a 21-year-old who spent nearly two years in a state-run juvenile hall in the San Francisco Bay Area, described a facility where classes and treatment programs were frequently canceled because of staffing shortages. Fights were common, illegal drugs readily available and gang members jostled for power in dorms and on yards. He was pepper-sprayed twice by guards while fending off attacks by other youths, he said.

    “You got this feeling where you’re not safe and need to watch your back,” said Jose, who asked that his full name not be used for fear of personal and professional repercussions. “You feel like you’re always a target.”

    Jose said he had to navigate a complicated system of incentives and rewards to eventually gain access to behavioral health treatment, schooling and vocational training.

    “My mission was to get out of there,” he said. He was eventually granted early release after serving time for a string of offenses including stealing a car and association with a gang — things he said he did after falling in with the wrong crowd after emigrating from Mexico.

    Other kids were not as motivated and remained trapped in a loop of acting out and subsequent punishment. The old system wasn’t fully equipped to help young people with anger issues and untreated trauma, he said.

    The first California facility for troubled youth — the San Francisco Industrial School — was created by the Legislature in 1859 as an alternative to housing children as young as 12 alongside adults in San Quentin and Folsom state prisons. Two years later, the State Reform School in Marysville opened for boys ages 8-18. At one point, the state system included 11 lockups holding about 10,000 youths.

    Today, the youth offender population in the remaining state-run facilities was around 300. Their average age was 19 and in 2020, a disproportionate 88% were Black or Latino.

    California counties already handle about 35,000 juvenile offenders — more than 3,600 of them held in juvenile halls, camps and ranches.

    County probation departments say they are determined to make the law work despite the challenges of a decentralized system. Officials fear smaller counties could struggle with providing care to youth with serious mental health needs, said Chief Probation Officers of California executive director Karen Pank.

    And some rural counties in Northern California will have to consolidate and share facilities.

    While California has in recent years ramped up funding for behavioral health, not enough of it flows to young people or the state’s 58 county probation departments tasked with handling the new system, Pank said.

    “The state must remove barriers and listen to the counties to hear what they really need,” she said.

    California will send counties about $230 million annually to help cover those costs.

    County probation officers, meanwhile, will try to balance reform advocates’ focus on rehabilitation with judges who — at prosecutors’ request — could still send older teenagers to adult prisons for the most serious crimes.

    Still, others believe meaningful change will only happen with robust oversight from the state.

    “It’s wrong to think that the state of California can simply move the prison population into the county juvenile hall and we’ll suddenly have a more successful juvenile justice system,” said Meredith Desautels, a staff attorney at the Youth Law Center in San Francisco. Transformation, she said, is only possible if California recognizes it “as an ongoing process that requires ongoing adjustments.”

    Oversight of the realigned system will run through the new Office of Youth and Community Restoration, part of the state’s Health and Human Services Agency, instead of the Department of Corrections and Rehabilitation.

    That offers little consolation to Guzmán, who fears the new office “has no teeth” and won’t be able to provide the oversight the counties need. A bill that passed the Assembly last month seeks to give the office greater regulatory authority, including the ability to respond to reports of abuse.

    The state-run system, while far from perfect, had concentrated resources at campuses that could fit schools and vocational training and provide care, Guzmán said.

    “Now that we’re closing those down, what we’re left with are much smaller facilities that lack resources, essentially county jails for young people,” he said.

    Katherine Lucero, director of the Office of Youth and Community Restoration, conceded that the counties still have work to do.

    Her office has been staffing up internally and establishing relationships with a range of partners including advocates, therapists and attorneys “to ensure youth have a supportive and safe environment as they return to their home communities,” Lucero said in a statement.

    Lucero defended her office’s relationship with a now-defunct nonprofit established by probation chiefs across California shortly after Newsom’s decision to close youth prisons. The County Probation Consortium Partnering for Youth Realignment, with a board comprised of most of California’s probation chiefs, made recommendations on what resources counties needed.

    Critics said the consortium added an unnecessary layer of bureaucracy and secrecy, and the nonprofit was targeted by a lawsuit demanding greater transparency. Late last month, the nonprofit said it would shut down because “the critical need for the consortium has come to an end.”

    Jose, the former youth inmate, said when he arrived in lockup as an angry, directionless young man he couldn’t imagine the future he has now: employed full time with goals of starting his own business and raising a family.

    His main hope for the new system is a major staffing shakeup and a renewed focus on health and wellbeing. During his sentence, he dealt mostly with staff members “who weren’t invested, they weren’t professionals, they were just there to guard.”

    “We need people who want to make it more therapeutic,” he said. “It’s more of learning how to function in a community by replacing negative behaviors with positive behaviors.”

    [ad_2]

    Source link

  • Texas Attorney General Ken Paxton will not testify at his impeachment trial, attorney says

    Texas Attorney General Ken Paxton will not testify at his impeachment trial, attorney says

    [ad_1]

    A lawyer for embattled Texas Attorney General Ken Paxton says the Republican will not testify in his upcoming impeachment trial

    ByPAUL J. WEBER Associated Press

    FILE – Texas state Attorney General Ken Paxton makes a statement at his office, May 26, 2023, in Austin, Texas. A lawyer for embattled Paxton said in a Monday, July 3, 2023, statement that the Republican will not testify in his upcoming impeachment trial. (AP Photo/Eric Gay, File)

    The Associated Press

    AUSTIN, Texas — Embattled Texas Attorney General Ken Paxton will not testify in his upcoming impeachment trial that could result in the Republican being permanently removed from office, according to his defense team.

    In a lengthy statement released Monday night, Paxton’s lead attorney against criticized the proceedings that led to the GOP-controlled Texas House impeaching the state’s top law enforcement in May.

    The trial in the Texas Senate is scheduled to begin Sept. 5.

    “‘They had the opportunity to have Attorney General Paxton testify during their sham investigation but refused to do so,” attorney Tony Buzbee said in a statement. “We will not bow to their evil, illegal, and unprecedented weaponization of state power in the Senate chamber.”

    A spokesman for the House managers leading the impeachment did not immediately return a message seeking comment Tuesday.

    Paxton, a Republican, is temporarily suspended from office pending the outcome of his trial on 20 articles of impeachment that include charges of bribery and abuse of office. Separately, he is under FBI investigation over accusations that he used his power to help a donor. That donor was indicted in a federal court in Austin last month on charges of making false statements to banks.

    Paxton is also still awaiting trial on felony securities fraud charges from 2015. He has pleaded not guilty and has never been given a deposition in the case’s eight-year history, according to impeachment managers.

    [ad_2]

    Source link