Interesting news

Mortgage Downturn Cited in Dismissal of Securities Case Against Merrill Lynch
The Legal Intelligencer

A federal judge has dismissed a securities fraud suit against Merrill Lynch and six of its subsidiaries, citing the "profound" downturn in the mortgage market as the more likely cause of the plaintiffs' woes and noting that securities fraud plaintiffs "must do more than show motive and opportunity" to prove scienter. The suit was brought by two real estate investment trusts that said Merrill Lynch's false statements led them to invest $26 million into mortgage-backed securities riddled with problem accounts.

Former Stanford CFO Pleads Guilty to Fraud and Conspiracy Charges
Texas Lawyer

James M. Davis, the former chief financial officer for Stanford Financial Group and Stanford International Bank, pleaded guilty Thursday morning to criminal charges in connection with the collapse of Stanford International Bank. Former Chairman R. Allen Stanford, who is being held in federal prison, was supposed to appear in court for a hearing on who will represent him, but the judge said from the bench that Stanford was taken by ambulance to a hospital because of an irregular electrocardiogram and a high pulse rate.

Former N.Y. Judge Convicted of Attempted Extortion and Soliciting Bribes
New York Law Journal

Former New York Supreme Court Justice Thomas J. Spargo has been found guilty of attempting to shake down lawyers appearing before him to help pay the substantial legal bills he had incurred in fighting an ongoing investigation into his conduct by a judicial conduct commission. A federal jury on Thursday convicted Spargo of both counts in the indictment against him: attempted extortion and soliciting a bribe. Under state law, Spargo also will be disbarred. Spargo's sentencing is scheduled for December.