Thursday, January 31, 2013

Axl Rose Close to Losing $20M Lawsuit Against Activision for Featuring Slash


The GnR frontman alleged he was duped into licensing "Welcome to the Jungle," but his failure to sing to a judge sooner appears to have doomed him.

Axl Rose might not like that Guitar Hero III featured his former Guns N' Roses band-mate Slash on the front cover, but he might have objected too late.

At a summary judgment hearing today, Los Angeles Superior Court judge Charles Palmer reportedly indicated that he is inclined to dismiss Rose's $20 million lawsuit against Activision Blizzard for fraudulently inducing him into authorizing "Welcome to the Jungle" for use in the popular game. At the conclusion of the hearing, according to an attorney involved in the case, the judge took the matter under submission.

Originally, Rose sued for fraud and breach of contract, and last August, the judge struck the fraud claim because of the statute of limitations issue. That ruling came despite arguments by Rose's lawyer that the claims did not accrue until he discovered that "Activision had been intentionally concealing its plans to use [Velvet Revolver] and Slash in the game all along."

What was left was deciding the contract issue -- and the parties disputed the form that contract took.

Rose's attorneys pointed to emails to Activision by Wayne Milligan, a licensing administrator at Sussman & Associates who does work for GNR Music, which administers publishing rights to the band's songs. The rock star's position was that there was a written agreement not to have Velvet Revolver -- Slash's band -- and that as a result, Rose had four years to file a lawsuit.

But Judge Palmer is inclined to rule that the agreement relied at least on oral promises and was subject to a two-year statute of limitations. "The only extrinsic evidence supports Activision's interpretation and does not support Rose's interpretation," the judge ruled in a tentative order that was recorded by a legal newswire.

 Read More...  http://www.hollywoodreporter.com/thr-esq/axl-rose-close-losing-20m-417262

Tommy Lee Jones, William Morris, RGM Entertainmemt, Food Network - Suits


A fight over commissions owed by actor Tommy Lee Jones to his former talent agency William Morris Endeavor is over. In October, WME filed a petition in LA Superior Court seeking to confirm an arbitration ruling that Jones owed $1.95 million for work negotiated for No Country for Old Men. The money emanated from a $15 million settlement Jones received from Paramount. The arbitrator ruled that WME was entitled to 10 percent plus interest. Last Tuesday, WME filed for dismissal with prejudice.

The law firm of Stroock & Stroock & Lavan is suing RGM Entertainment, looking to confirm an arbitration award of more than $200,000 in owed legal fees. The firm represented the Singapore-based company in setting up a rebook of the 1991 action film Point Break. An arbitrator awarded the money in December after RGM failed to show up.

Two producers are at war against each other in a new lawsuit over a Food Network pilot show called $24 in 24 Hours. Custom Television Productions is suing Kyra Shelgren in LA Superior Court, alleging the defendant has breached an oral contract and committed conversion by failing to turn over 30 photography releases. The parties appear to be quarreling over issues like compensation and expenses for the show, and the plaintiff is claiming that Shelgren's refusal to turn over releases signed by people appearing on the show, as required by the Food Network, is "tantamount to extortion."

Read More... http://www.hollywoodreporter.com/thr-esq/hollywood-docket-hobbit-slot-machine-417117

Marvel Entertainment, Broadway Spider-Man, and Marvel Briefcase Suits


The on-again, off-again litigation between director Julie Taymor and producers of the Broadway musical, Spider-Man: Turn off the Dark, appears to be going dark again. Earlier in the month, the litigation was revived when the parties admitted there was still some work on the settlement negotiating front. Last week, Taymor's attorney Charles Spada notified the court that a final settlement agreement would be executed soon, describing the hold-up as being for producer 8 Legged Production and non-party Marvel Entertainment to to amend a license to produce the Spider-Man musical. Spada said that "8 Legged and Marvel will be executing a formal amendment to their licensing agreement within days."


Speaking of Marvel, the studio has gotten out of an odd dispute over a briefcase featured in The Avengers. Last August, Rimowa GmbH, a German manufacturer of luxury travel briefcases, sued because the Topas attaché case seen being used by Samuel L. Jackson's character Nick Fury was allegedly repurposed as the packaging for Blu-ray versions of the film. Last week, the parties stipulated to dismiss the case with prejudice. No further terms of the agreement were made public.


Read More... http://www.hollywoodreporter.com/thr-esq/hollywood-docket-hobbit-slot-machine-417117

'Hobbit' Slot Machine Countersuit


In November, Tolkien's heirs and and its book publisher HarperCollins filed an $80 million lawsuit that alleged that Rings/Hobbit producers including Warner Bros. had infringed the copyright in the books and breached a contract by overstepping their rights. The plaintiffs alleged that a decades-old deal only covered "tangible" merchandise, not stuff like slot machines.

The Saul Zaentz Co. has now brought counterclaims.

According to court papers filed earlier this month, Saul Zaentz Co. says that agreements struck in 1969 "impose no restriction whatsoever on the nature of the products, services, or businesses with with Zaentz's and its licensees' films may be associated, except for a limitation on certain print publications not at issue."

Zaentz also says that it and Warners have been exploiting online video games and gambling without objection for a long time -- and that in 1996, the parties confirmed rights to online video games.

A declaration that Zaentz has the right to use Tolkien marks in connection with games, hotels, restaurants, travel agencies, ringtones and more is now being sought.

In addition, the countersuit includes a claim that the Tolkien estate has breached an implied covenant of good faith and fair dealing.

Read Full Document: http://www.scribd.com/doc/123187959/Rings-counterclaims
Read More... http://www.hollywoodreporter.com/thr-esq/hollywood-docket-hobbit-slot-machine-417117



Wednesday, January 30, 2013

EmmyLou Harris Charged with Hit-and-Run


Los Angeles prosecutors have charged country star Emmylou Harris with misdemeanor hit-and-run related to an accident last year.

The Grammy-winning singer was charged Wednesday for failing to exchange information with a driver whose car she hit on a freeway on Oct. 1.

A criminal complaint filed in Beverly Hills did not contain additional details about the accident or how much damage occurred.

A publicist for the 65-year-old singer didn't immediately return a message seeking comment.
Harris has won a dozen Grammys for her solo work and collaborations with artists such as Dolly Parton, Linda Ronstadt, Alison Krauss and others.

Harris continues to tour and is scheduled to release an album of duets in late February.

More: http://abclocal.go.com/wpvi/story?section=news/entertainment&id=8974272

Judge: NCAA Athletes in Lawsuit Can Go After Live TV Cash


The NCAA lost a court battle this week when a federal judge shot down a motion that would have prohibited college athletes involved in a lawsuit from receiving a portion of the billions of dollars generated by live television rights.

The ruling comes as college athletes find themselves cut out of an increasingly-lucrative industry where major networks like Disney’s (DIS) ESPN pay top dollar to televise hugely popular college football and basketball games.

Last year a long-running antitrust lawsuit led by former college basketball star Ed O’Bannon amended its suit to claim a piece of all TV game revenue, instead of just money generated by rebroadcasts.

While the NCAA objected to the amendment on procedural grounds, on Tuesday federal Judge Claudia Wilken rejected the NCAA’s motion to preclude the lawsuit from advancing. 

“Now the (NCAA and its co-defendants) are facing potential liability that's based on the billions of dollars in revenue instead of tens or hundreds of millions," Michael Hausfeld, interim lead counsel for the plaintiffs, told ESPN. "It's a more accurate context for what the players deserve."

“Although our motion to strike was denied, the judge has signaled skepticism on plaintiff's class-certification motion and recognized the plaintiffs' radical change in their theory of the case," said NCAA general counsel Donald Remy. "This is a step in the right direction toward allowing the NCAA to further demonstrate why this case is wrong on the law and that plaintiffs have failed to demonstrate that this case satisfies the criteria for class litigation."

In her ruling, Wilken wrote that the NCAA’s claim “is not reason to preclude” the plaintiffs from moving for class certification. However, Wilken said: “These contentions are more properly considered as arguments supporting denial of the motion…on its merits.”

The lawsuit, which also names video game giant Electronic Arts (EA) as a defendant, was first unveiled in 2009 and has since been joined by big-name college athletes such as Bill Russell and Oscar Robertson.

The judge set a tentative date for a 15-day jury trial for June 2014.

Read more: http://www.foxbusiness.com/industries/2013/01/30/judge-ncaa-athletes-in-lawsuit-can-go-after-live-tv-cash/#ixzz2JUzQvSxn


Director Hal Needham Sues Warner Bros. in Growing Home-Video Royalty Flap


Five studios have been sued in a class-action lawsuit alleging underreporting of home-video revenue.

Director Hal Needham has sued Warner Bros. in an expanding class-action case targeting the way studios calculate home-video royalties for profit participants.

Needham, the director of Cannonball Run, Smokey and the Bandit and Hooper, filed suit Tuesday in Los Angeles Superior Court claiming that he's been shortchanged revenue from the latter film due to the Warner Bros. practice of calculating his profit participation using only 20 percent of the home-video revenue received by the studio.

Read Full Complaint here: http://www.hollywoodreporter.com/sites/default/files/custom/Documents/ESQ/Needham.pdf

The move comes a week after 20th Century Fox, Paramount, Universal and Sony were sued by talent whose decades-old contracts allow them to share in the revenue from hit films. Stanley Donen (Lucky Lady), Charles Bronson (Hard Times) and Colin Higgins (Foul Play and The Best Little Whorehouse in Texas) are the lead plaintiffs in the other cases. Read those lawsuits:
http://www.hollywoodreporter.com/sites/default/files/custom/Documents/ESQ/Twentieth_81.pdf
http://www.hollywoodreporter.com/sites/default/files/custom/Documents/ESQ/Paramount_79.pdf
http://www.hollywoodreporter.com/sites/default/files/custom/Documents/ESQ/Universal_80.pdf
http://www.hollywoodreporter.com/sites/default/files/custom/Documents/ESQ/Sony_82.pdf%20

studios began paying talent based on a 20-percent royalty rate in the early 1980s as VCRs became popular. The lawsuits have been filed by profit participants whose contracts predate the 1980s, so they argue that they should be entitled to share in 100 percent of home-video revenue.

Warners' accounting practices "have allowed WB to wrongfully withhold a substantial amount of money it receives from home video distribution at the expense of Plaintiff and the Class," the Needham lawsuit states.

Exact damages are not alleged, but the claims could total in the millions of dollars.

Read More: http://www.hollywoodreporter.com/thr-esq/director-hal-needham-sues-warner-416688


Have you found yourself in a DUI Checkpoint?


Checkpoints are happening at an alarming rate in many parts of the southern Ca. areas!

Just last night 3,675 Vehicles through one town checkpoint were checked, with 1,912 Drivers checked. The from the Los Angeles County Sheriff’s Department, Risk Management Bureau’s Traffic Services found:

4 DUI alcohol suspects arrested

1 DUI Combo (alcohol and marijuana) suspect arrested


1 Illegal possesion of narcotics suspect arrested


1 Petty theft/public intoxication suspect arrested


4 vehicles were stored for a day


The goal of the DUI/DL checkpoint was removing impaired drivers and to bring awareness to the public of the dangers of driving under the influence of drugs and alcohol.

If you find yourself in a DUI contact the Law Offices of Jonathan Franklin at (310) 273-9600.
More information here: http://www.jonathanfranklinlaw.com/dui.html 

Give us a call and we are here to help you!



Tammy Knickerbocker’s Daughter Arrested For Punching Cop


Former ‘Real Housewives of Orange County’ star Tammy Knickerbocker has more drama in real life than on reality TV. Her daughter Lindsey was arrested on Dec. 14 for punching a cop in the stomach after driving under the influence! Read on for all the details.
Lindsey Knickerbocker, 23, was arrested December 14, 2012 after she slammed her car into a couple of parked vehicles on Balboa Island in Orange County, and then ran into a friend’s house where cops later found her. The very intoxicated daughter of former Real Housewives of Orange County star Tammy Knickerbocker then hit one of the police officers in the stomach and was consequently arrested.

Lindsey Knickerbocker’s Dangerous Drunk Night
The court documents reveal that Lindsay had a blood count of .32% on the night of the incident, TMZ reports. That’s four times the legal limit in California!

Witnesses say Lindsey rammed her car into parked two cars and then took off running. After ending up at a friend’s house, she was arrested a few minutes later.

Was she on something else other than alcohol? Why did she punch the cop? What does her mother think?

Lindsey is scheduled for a court hearing in February, and has been charged with four crimes, including DUI, hit-and-run and assault on a police officer.

Lindsey is suffering from the death of her father,  Louis L. Knickerbocker passed away of a heart attack in 2007.

Read More: http://hollywoodlife.com/2013/01/29/lindsey-knickerbocker-arrested-punching-cop-tammy-knickerbocker-daughter-rhoc/


Tuesday, January 29, 2013

Thomas Gibson of "Criminal Minds" Deal After Crazy DUI Arrest


The "Criminal Minds" star Thomas Gibson has struck a plea deal in his DUI arrest ... when it took FIVE cops to wrestle him to the ground -- TMZ has learned.
We broke the story ... Gibson was popped by cops​ earlier this month on suspicion of DUI -- when cops say he drunkenly tried to drive his Audi SUV through a part of Downtown L.A. that was sectioned off for a half-marathon.

But today, Gibson pled "no contest" to one count of alcohol-related reckless driving -- and in exchange, prosecutors dropped the DUI counts.

The night of Gibson's arrest, multiple officers took him down while he screamed, "I am not resisting ... I am not resisting."

Under the plea deal, Gibson was sentenced to 36 months probation, $300 in court fees and one year of alcohol education classes.

See Video and Read More: http://www.tmz.com/2013/01/29/thomas-gibson-dui-arrest-plead-no-contest/#ixzz2JPP1lKxO


Jason London of "Hero Factory" a TV series Beaten and Arrested


The "Dazed & Confused" actor Jason London was punched in the face in a bar fight ... this according to a police report obtained by TMZ.

Here's what the report says ...

Cops were called to the Martini Ranch bar in Scottsdale, Arizona at 1:42 AM on Sunday morning after getting a call about a man who was bleeding on the street.

When officers arrived to the scene ... they found Jason nursing a swollen eye. Cops spoke to a bouncer who told them Jason had been inside the club, walked by him and sneezed on him.  The bouncer asked for an apology, and Jason allegedly punched him in the face.

40-year-old Jason was thrown out of the bar kicking and screaming and in the process he was beaten up.

Paramedics arrived to the scene to treat London, but cops say the actor got aggressive with the responders and shoved some of them. Cops say one of the officers was forced to deliver a knee strike to London's right thigh so they could seat him on the ground. London later called one of the officers a "f**king hillbilly."

Jason was eventually arrested for disorderly conduct/fighting and assault.

Jason said:  "Some guy thought I was hitting on his girl and had me jumped. My wife was in the next room, had no idea what even happened.  Jason has 7 shows/movies in Production.

Read more: http://www.tmz.com/2013/01/29/jason-london-arrested-crapped-assault-mug-shot/#ixzz2JPN6OMZO


A&E Responds to Allegation That 'Storage Wars' Is Rigged


The cable network says David Hester was unhappy with how contract negotiations were going, so he concocted a "tabloid-worthy drama" filled with "inconsistencies in his exaggerated self-portrait."

 A&E, confronting Storage Wars' David Hester, the answer is admitting there's a bit of dress-up happening but that it's emanating from the other side.

"In a transparent attempt to distract from the issues -- and maximize any potential recovery -- Plaintiff's Complaint tries to convert a garden-variety breach of contract claim into a tabloid-worthy drama, in which Hester portrays himself as a crusading whistleblower," the cable network says in legal papers filed last week in L.A. Superior Court.

A&E continues, "But setting aside the notable inconsistencies in his exaggerated self-portrait, the law does not permit such sophistry."

In his lawsuit filed in December, Hester discussed Storage Wars, a series featuring the auctioning of storage-unit contents based on a few minutes of inspection by buyers like himself. He alleged that A&E has planted items of memorabilia, that interviews with castmembers were scripted in advance and that producers have shot footage when no real auctions are taking place.

Hester further claimed that he was fired after complaining to producers that A&E's "fraudulent conduct of salting and staging the storage lockers was possibly illegal." He based his allegations of illegality on the Communications Act of 1934, which makes it illegal for broadcasters to rig a contest of intellectual skill with the intent to deceive the viewing public.

A&E presents a different picture of what happened.

According to the network, A&E complained first -- about Hester "improper use of AETN's trademarks." (The two sides have been fighting at the U.S. Trademark Office over marks like "Storage Warrior.")

Hester also demanded to renegotiate his agreement for Storage Wars, says A&E. Only then did Hester raise concerns about authenticity, it adds.

But now that he has, A&E spells out in a footnote in its legal papers why Hester is not the crusading whistleblower he claims to be: "Among other things, Plaintiff says that he participated in the very conduct he simultaneously claims was 'fraudulent' and 'illegal,' namely, the purported 'salting' of storage lockers with valuable items and the 'scripting' of some portions of the reality television program."

Among the reasons given by A&E:
                   Hester's claim for "unfair business practices" fails because courts have only applied it to commercial speech, not expressive works like television programs.

                    Hester can't claim standing on behalf of the "general public" because he doesn't bring the lawsuit as a class action nor does he demonstrate the prerequisites to be a class representative. He hasn't alleged any "actual injury," and the only statute that he's identified -- the Communications Act of 1934 -- "does not apply to cable television."

                  Hester doesn't provide a basis for recovery of damages. He can't use an unfair competition claim for the "disgorgement of profits," can't plead "restitution" since nothing was taken from him and can't obtain injunctive relief since it would constitute a First Amendment prior restraint of speech violation.

Here's A&E's motion to strike, written by Kelli Sager at Davis Wright Tremaine, who among other things, describes Storage Wars as a matter of public interest because it "has captured the public's interest by combining elements of competition and business strategy with the mystery of discovering what surprises may be found in an abandoned storage unit."

Replace "abandoned storage unit" with "courtroom," and the description is an apt summary of this dispute too.

Here's the Motion: http://www.scribd.com/doc/122674098/Hester

Read More: http://www.hollywoodreporter.com/thr-esq/a-e-responds-allegation-storage-416006

'Odd Thomas' Producers Suing Over $35 Mil in Marketing and Distribution Costs, Loans


Two Out of Ten Prods. and Fusion Films claim that several entities failed to pay up on the feature starring Willem Dafoe and based on a Dean Koontz novel.

The producers of Odd Thomas, a feature starring Willem Dafoe and based on a Dean Koontz novel, are suing several entities alleging that they failed to provide $35 million that would have gone toward marketing and distributing the movie and paying back production loans.

Two Out of Ten Prods., known at TOOT, and Fusion Films filed their lawsuit Monday in Los Angeles Superior Court, naming as defendants Outsource Media Group Fund, ABS Investment Group, individuals Craig Chang and Mark Bishop, and Outsource Media Group. The latter, referred to as OMG in the lawsuit, is run by principals Bradley Holmes, Dan Reardon and Harrison Kordestani, an executive producer of lower-budget horrors and thrillers such as The Coffin, Already Dead, In a Dark Place and Intervention.

Read the full complaint: http://www.hollywoodreporter.com/sites/default/files/custom/Documents/ESQ/Odd_Thomas.pdf

The lawsuit alleges that when money was promised but did not arrive, “substantial problems with the distribution of the film and with the plaintiff’s existing investors and international distributors” arose.

The producers had several meetings with OMG at the Cannes Film Festival in 2012 and amended their agreement, and promises that money would be forthcoming were again made. Some of the money, according to the lawsuit, was to come from Justin Thompson, a son of one of the founders of Skype, and via Mark Bishop, an expert in mortgage-backed securities.

While at Cannes, says the lawsuit, Bishop “reiterated that he had $45 million in bonds that he was willing to pledge to ensure that the print and advertising commitment for the picture was met.”

Still, the money never arrived, according to the lawsuit.

TOOT and Fusion are suing for compensatory damages, punitive damages, attorneys’ fees, costs of the suit and other relief.

Odd Thomas tells the story of a clairvoyant short-order cook working in a desert town who encounters a potentially dangerous and very mysterious man.

Read More: http://www.hollywoodreporter.com/thr-esq/odd-thomas-producers-suing-35-416288

4.5 Million in Chinese-Made Counterfeit Cigarettes Seized


Roughly 30,000 cartons of illegal cigarettes with an estimated street value of $4.5 million were seized from a warehouse in Borough Park last week, the Brooklyn DA's office announced Friday. The major bust was the fruit of a six month investigation, and netted one arrest: Yin Haun Zhao, who is accused of Trademark Counterfeiting in the Second Degree and Attempt to Evade or Defeat Cigarette and Tobacco Products Tax. He faces up to seven years in prison if convicted.

According to Brooklyn DA Charles Hynes, the cigarettes included counterfeit versions of popular brands, such as Marlboro and Camel, as well as less well-known Chinese cigarettes. "As unhealthy as smoking is, smoking counterfeit and bootleg cigarettes is even worse, because there is no way of knowing what chemicals they contain,” Hynes said in a statement. “Selling this poison is also a drain on the state and city economy, because these cigarettes are entirely untaxed.” The taxes on that quantity of smokes, if sold legally, would have generated $1.8 million in revenue.

Michael Vecchione, Chief of the Brooklyn DA’s Racket Division, tells Brooklyn Paper that in China, where the cigarettes originated, unregulated tobacco "is sometimes dried by trucks rolling over the nicotine-filled leaves laid out on the ground, lacing it with leaded gas fumes in the process." It's laborious work, but how else are you going to get a pure taste of Diesel Flavor Country.

Source: http://gothamist.com/2013/01/28/45_million_in_counterfeit_cigarette.php

Monday, January 28, 2013

Hit and Run - Facing Charges - Alcohol - Leaving the Scene of an Accident - WHAT TO DO!


                              Beverly Hills Hit and Run Charges Defense Attorney Jonathan Franklin

Facing Charges on Leaving the Scene of an Accident

Under California state law, if you are involved in a motor vehicle accident you are required to stop and exchange information with the other driver. If you inadvertently hit a car in a parking lot and are unable to locate the car’s owner, you are required to leave a note on the car containing your information and file a police report as soon as possible. When people fail to stop or leave a note after hitting another car, they can be charged with hit and run. In cases where no one is injured, hit and run is a misdemeanor offense that could result in fines, driver’s license suspension, even jail. In injury or fatal hit and run accidents, drivers face felony charges that could result in prison, heavy fines, and the suspension of their license if convicted. At the Law Offices of Jonathan Franklin, we conduct our own investigation of a hit and run accident to determine if the prosecution is ignoring important information in a rush to judgment to convict our client.

If you’ve been charged with hit and run, contact Beverly Hills criminal defense attorney Jonathan Franklin today to schedule a free confidential consultation before you talk to the police. We can protect your rights and ensure you aren’t forced into admitting to crime you didn’t commit.

Hit and Run and Alcohol

A number of hit-and-run accidents involve people who have been drinking. In some cases, a driver – whether drunk or not – may leave the scene of an accident in the hope that he or she will have time to “sober up” before being caught or reported to the police. In other instances, a driver who has been drinking may not realize he or she has hit someone. The distinction can be important since it involves a question of intent: did the driver of a vehicle realize he or she had been in an accident and knowingly and intentionally leave the scene?

While you may still be held accountable for hit and run, the charges against you may be reduced if it becomes clear that you did not knowingly leave the scene of an accident because you were worried about being charged with drunk driving. You can bet the prosecutor in your case will check credit card receipts and bar and restaurant tabs to determine if alcohol played a role in your hit-and-run accident. That’s why we work hard to stay ahead of an investigation, preparing a defense against allegations of drunk driving and hit and run.

Intentionally Leaving the Scene of an Accident
If there is little question of your guilt in leaving the scene of an accident, it’s still important to tell the court why you fled the scene. While there is no guarantee the court will reduce your sentence, extenuating circumstances and a clean driving record may convince a judge to reduce the sentence or ultimately dismiss the case against you. For example, did you stop and, after inspecting your car, decide there wasn’t enough damage to justify exchanging information? Did you believe the other driver wasn’t going to stop? Did you have auto insurance that ultimately took care of any damage? Again, while these kinds of reasons may not absolve you of criminal responsibility, they may convince the court to reduce or dismiss the charge against you.

Contact Beverly Hills, California Hit and Run Defense Attorney
A conviction for hit and run can result in jail, fines, and the loss of your license. Additionally, it could increase your insurance rates and result in the loss of your job if your employer refuses to let you take a leave of absence to serve your jail or prison sentence. To schedule a free, confidential consultation to discuss your case, contact Beverly Hills, California, hit and run defense lawyer Jonathan Franklin today.


                                        http://www.jonathanfranklinlaw.com/hit-and-run-2.html


Former MTV "Sunny Cross" star of 'CATFISH' Arrested for DUI


Sunny Cross, who was on the very first episode of the MTV show "Catfish," was arrested this morning for suspicion of driving while intoxicated

8:20 AM in Fayetteville, AR. According to the website for the Washington County Sheriff's Office, Cross was popped for driving too close to another vehicle, driving on the wrong side of the road, and lastly ... DWI.

Cross posted $1,055 bond and was released at 9:39 AM. Oddly enough ... at 8:39 AM she tweeted, "Last night was hilarious."

We called Cross for comment and got her voicemail. A few minutes after we called, she tweeted, "Well I guess it's safe to say last night was an epic fail."


Read more: http://www.tmz.com/2013/01/27/catfish-sunny-cross-arrested-dwi/#ixzz2JIGU3mGF


Sunday, January 27, 2013

Colorado Theater Shooting Lawsuits Against Cinemark Shouldn't Be Dismissed, Says Judge


A magistrate judge says more discovery is needed to ascertain theater owner's liability under Colorado law.

The Colorado magistrate judge presiding over various lawsuits brought by victims of the shooting tragedy at a midnight showing of The Dark Knight Rises has recommended to a District Court that the lawsuits be allowed to survive but only under a state law governing premises liability.

The lawsuits come from those wounded in the July 20 shooting in Aurora, Colo., and from family members of those killed. Cinemark, owner of the theater where the shootings took place, is being sued to see whether it holds civil liability for not hiring more security, failing to have alarmed exit doors and other measures the plaintiffs believe could have mitigated 12 deaths and dozens of more injuries. James Holmes is being charged with the criminal act.

In response to the suits, Cinemark has asserted that what happened was not "foreseeable" and that the "fault here lies entirely with the killer."

On Thursday, Judge Michael Hegarty gave his own assessment.

The plaintiffs brought various tort claims in their lawsuits, but Cinemark asserted that only the Colorado Premises Liability Act -- a state law on the liability of a landowner for injuries on premises -- applied.

Hegarty agreed that plaintiffs' claims for negligence and wrongful death should fail because they were abrogated by the CPLA.

Cinemark also challenged whether the plaintiffs had stated a plausible claim for relief under the CPLA since what happened that night wasn't foreseeable.

The plaintiffs argued that Cinemark should have known about previous danger and criminal activity at the theater and the conditions of its premises -- e.g. the unlocked and unmonitored exit door and the lack of security personnel.

"The extent of Defendant's knowledge in this case has yet to be explored," he wrote. "Discovery may reveal that other more serious crimes had occurred at or near the theater and that Defendant had knowledge of such crimes. Further, as the Court noted at the hearing, discovery might show that Defendant had knowledge of and/or concern for the numerous mass shootings that had taken place in the United States in recent times. As the CPLA demonstrates, Defendant, a landowner, has a higher duty of care to its patrons, or 'invitees', and the extent of its knowledge of such duty should be explored."

The judge has recommended that the District Court deny Cinemark's motion to dismiss claims under the CPLA.

Read More...http://www.hollywoodreporter.com/thr-esq/colorado-theater-shooting-lawsuits-cinemark-415365

"High School Musical" Star Christopher Warren's Parents Stole THOUSANDS

As if his famous mom's divorce wasn't bad enough -- "High School Musical" star Chris Warren has now filed a lawsuit against BOTH his parents, accusing the pair of stealing hundreds of thousands of dollars of his child acting money.
 Warren filed the lawsuit against "Passions" actress Brook Kerr and Christopher Warren Sr., claiming they established a trust for him back in 2001 for all the money he made as a minor -- and have been secretly dipping into the kitty ... big time.

According to the lawsuit, Chris paid into the account for years, but when he decided to make a withdrawal back in 2011 -- as a 21-year-old -- his parents refused to grant him access.

When pressed, Chris claims his parents admitted they had blown through hundreds of thousands of dollars of his money on their own personal expenses ... but refused to say how much was left in the account.

Chris is now suing his parents for all the money back ... even though he's still not sure exactly how much they took.

Since High School Musical Christopher has done: The Bernie Mac Show, Alvin and the Chipmunks: The Squeakquel, Good Luck Charlie, The Hard Times of RJ Berger, and The Inbetweeners.

Read more: http://www.tmz.com/2013/01/27/high-school-musical-chris-warren-parents-lawsuit-divorce/#ixzz2JBgkL4OY


9 Black ex-Contestants plan to sue "Idol" producers


The 9 black ex-contestants claiming the contestants were publicly disqualified based on their dubious criminal backgrounds ... solely because they're African-American.

TMZ obtained a letter submitted to the U.S. Equal Employment Opportunity Commission by New York attorney James Freeman, requesting permission to sue Fox and the show on behalf of his nine clients. In the letter, Freeman claims there is a racist pattern in the "Idol" disqualification process.

Freeman alleges that only nine "Idol" contestants had been publicly disqualified since the show debuted in 2002, and all happened to be black. He claims the show enacted a "cruel and inhumane" scheme, which included background checks and arrest inquiries, to humiliate the contestants on live TV and perpetuate "destructive stereotypes" that made his clients appear to be "violent criminals, liars and sexual deviants."

Nigel Lythgoe, producer of "American Idol," told TMZ he was "shocked" by the "ridiculous" allegations.

full list of disqualified contestants and more details on the lawsuit:  http://www.tmz.com/2013/01/25/american-idol-racism-lawsuit-corey-clark-disqualified-contestants-letter-discrimination/
                          According to Freeman, NONE of the contestants who were disqualified from the show based on their criminal backgrounds were convicted of the crimes for which they were charged at the time of their disqualification. But Freeman adds, "Yet their personal and professional lives remain permanently and severely impaired by [the show's] continuing violations of our nation's laws."  Freeman's letter is the first step towards a lawsuit -- and we're told as soon as he gets the green light from the EEOC, he plans to file the docs in court.

Although seven of the nine contestants were booted due to legal issues, two were not. Chris Golightly (Season 9) was disqualified when "Idol" learned he had an existing contract with a boy band, Billboard reported. And Ju'Not Joyner (Season 8) was not publicly disqualified, according to Zap2It, though he never advanced past the semifinals.

As for whether or not any non-black contestants were publicly disqualified, Zap2It cites Delano Cagnolatti (Season 1) and Joanna Pacitti (Season 8), who were both dismissed on air.

"American Idol," which has crowned three black winners in its history, has been accused of racial biases several times. When Phillip Phillips beat Jessica Sanchez to win the Season 11 cycle, the show was accused of being racist. In November 2012, judge Nicki Minaj had a spat with rocker and co-judge Steven Tyler and accused him of making a racist comment about her judging qualifications.

Read More: http://www.huffingtonpost.com/2013/01/25/american-idol-racism_n_2550281.html

Obama birth control mandates loosens lawsuits


The legal challenges over religious freedom and the birth control coverage requirement in President Barack Obama's health care overhaul appear to be moving toward the U.S. Supreme Court.

Faith-affiliated charities, hospitals and universities have filed dozens of lawsuits against the mandate, which requires employers to provide insurance that covers contraception for free. However, many for-profit business owners are also suing, claiming a violation of their religious beliefs.

The religious lawsuits have largely stalled, as the Department of Health and Human Services tries to develop an accommodation for faith groups. However, no such offer will be made to individual business owners. And their lawsuits are yielding conflicting rulings in appeals courts around the country.

"The circuits have split. You're getting different, conflicting interpretations of law, so the line of cases will have to go to the Supreme Court, " said Carl Esbeck, a professor at the University of Missouri Law School who specializes in religious liberty issues.

Last year, the Supreme Court ruled that Obama's fiercely contested health care overhaul, known as the Affordable Care Act, was constitutional. But differences over the birth control provision in the law have yet to be resolved.

Under the requirement, most employers, including faith-affiliated hospitals and nonprofits, have to provide health insurance that includes artificial contraception, including sterilization, as a free preventive service. The goal, in part, is to help women space pregnancies as a way to promote health.

Religious groups who employ and serve people of their own faith — such as churches — are exempt. But other religiously affiliated groups, such as Catholic Charities, must comply.

Roman Catholic bishops, evangelicals and some religious leaders who have generally been supportive of Obama's policies have lobbied fiercely for a broader exemption. The Catholic Church prohibits the use of artificial contraception. Evangelicals generally permit the use of birth control, but they object to specific methods such as the morning-after contraceptive pill, which they argue is tantamount to abortion.

Obama promised to change the birth control requirement so insurance companies and not faith-affiliated employers would pay for the coverage, but religious leaders said more changes were needed to make the plan work.

The Health and Human Services Department said it could not comment on litigation. A spokeswoman also did not respond to a question about when the latest revisions in the birth control rule would be made public.

However, government attorneys responding to a lawsuit said an announcement was expected by the end of March. In the suit filed by the evangelical Wheaton College in Illinois and Catholic Belmont Abbey in North Carolina, the court ordered government attorneys to provide a progress report on the new rule every 60 days. Whatever its final form, the mandate will take effect for religious groups in August.

At the center of the cases is the Religious Freedom Restoration Act, the 1993 law that bars the government from imposing a substantial burden on the exercise of religion for anything other than a compelling government interest pursued in the least restrictive way. The question of how or whether these criteria apply when owners of for-profit businesses have a religious objection to a government policy hasn't been fully tested.

"It's more natural for people to say Notre Dame exercises religion, but when you say this power tool company exercises religion, you have to explain it little more, I think the claims are really the same," said Kyle Duncan, general counsel for the Becket Fund for Religious Liberty, which represents many of the plaintiffs.

Brigitte Amiri, senior staff attorney at the American Civil Liberties Union, argued the business owners are trying to use a religious liberty claim to deny benefits to someone else.

"We don't think that religious liberty claims can be used as a way to discriminate against women employees — using those claims to take away someone else's benefits and services," Amiri said.

In the lawsuits from faith-affiliated groups, such as the University of Notre Dame, judges around the country have generally said it would be premature to decide the legal issues until the federal rule for religiously affiliated organizations is finalized.

In the cases involving business owners, judges have granted temporary injunctions to businesses in nine of 14 cases they've heard, while questions about for-profit employers and religious rights are decided, according to a tally by the Becket Fund.

In a case brought by Cyril and Jane Korte, Catholic owners of Korte & Luitjohan Contractors in Illinois, a three-judge panel granted a temporary injunction, ruling 2-1 that providing employees insurance coverage that includes birth control would violate the Kortes' faith.

"It is a family-run business, and they manage the company in accordance with their religious beliefs," the judges wrote.

The dissenting judge argued that the company will not be paying directly for contraception but instead will purchase insurance that covers a wide range of health care that could include birth control, if the woman decides with her physician that she needs it.

"What the Kortes wish to do is to preemptively declare that their company need not pay for insurance which covers particular types of medical care to which they object," the dissenting judge wrote.

Similar reasoning was used by courts denying an injunction requested by the arts and crafts chain Hobby Lobby and religious book-seller Mardel Inc., which are owned by the same evangelical family. Oklahoma-based Hobby Lobby calls itself a "biblically founded business" and is closed on Sundays.

The U.S. district judge who first considered the request said, "Hobby Lobby and Mardel are not religious organizations."

"Plaintiffs have not cited, and the court has not found, any case concluding that secular, for-profit corporations such as Hobby Lobby and Mardel have a constitutional right to the free exercise of religion," the ruling said.

Source... http://news.yahoo.com/obama-birth-control-mandates-loosens-lawsuits-220241491--finance.html
The legal challenges over religious freedom and the birth control coverage requirement in President Barack Obama's health care overhaul appear to be moving toward the U.S. Supreme Court.

Faith-affiliated charities, hospitals and universities have filed dozens of lawsuits against the mandate, which requires employers to provide insurance that covers contraception for free. However, many for-profit business owners are also suing, claiming a violation of their religious beliefs.

The religious lawsuits have largely stalled, as the Department of Health and Human Services tries to develop an accommodation for faith groups. However, no such offer will be made to individual business owners. And their lawsuits are yielding conflicting rulings in appeals courts around the country.

"The circuits have split. You're getting different, conflicting interpretations of law, so the line of cases will have to go to the Supreme Court, " said Carl Esbeck, a professor at the University of Missouri Law School who specializes in religious liberty issues.

Last year, the Supreme Court ruled that Obama's fiercely contested health care overhaul, known as the Affordable Care Act, was constitutional. But differences over the birth control provision in the law have yet to be resolved.

Under the requirement, most employers, including faith-affiliated hospitals and nonprofits, have to provide health insurance that includes artificial contraception, including sterilization, as a free preventive service. The goal, in part, is to help women space pregnancies as a way to promote health.

Religious groups who employ and serve people of their own faith — such as churches — are exempt. But other religiously affiliated groups, such as Catholic Charities, must comply.

Roman Catholic bishops, evangelicals and some religious leaders who have generally been supportive of Obama's policies have lobbied fiercely for a broader exemption. The Catholic Church prohibits the use of artificial contraception. Evangelicals generally permit the use of birth control, but they object to specific methods such as the morning-after contraceptive pill, which they argue is tantamount to abortion.

Obama promised to change the birth control requirement so insurance companies and not faith-affiliated employers would pay for the coverage, but religious leaders said more changes were needed to make the plan work.

The Health and Human Services Department said it could not comment on litigation. A spokeswoman also did not respond to a question about when the latest revisions in the birth control rule would be made public.

However, government attorneys responding to a lawsuit said an announcement was expected by the end of March. In the suit filed by the evangelical Wheaton College in Illinois and Catholic Belmont Abbey in North Carolina, the court ordered government attorneys to provide a progress report on the new rule every 60 days. Whatever its final form, the mandate will take effect for religious groups in August.

At the center of the cases is the Religious Freedom Restoration Act, the 1993 law that bars the government from imposing a substantial burden on the exercise of religion for anything other than a compelling government interest pursued in the least restrictive way. The question of how or whether these criteria apply when owners of for-profit businesses have a religious objection to a government policy hasn't been fully tested.

"It's more natural for people to say Notre Dame exercises religion, but when you say this power tool company exercises religion, you have to explain it little more, I think the claims are really the same," said Kyle Duncan, general counsel for the Becket Fund for Religious Liberty, which represents many of the plaintiffs.

Brigitte Amiri, senior staff attorney at the American Civil Liberties Union, argued the business owners are trying to use a religious liberty claim to deny benefits to someone else.

"We don't think that religious liberty claims can be used as a way to discriminate against women employees — using those claims to take away someone else's benefits and services," Amiri said.

In the lawsuits from faith-affiliated groups, such as the University of Notre Dame, judges around the country have generally said it would be premature to decide the legal issues until the federal rule for religiously affiliated organizations is finalized.

In the cases involving business owners, judges have granted temporary injunctions to businesses in nine of 14 cases they've heard, while questions about for-profit employers and religious rights are decided, according to a tally by the Becket Fund.

In a case brought by Cyril and Jane Korte, Catholic owners of Korte & Luitjohan Contractors in Illinois, a three-judge panel granted a temporary injunction, ruling 2-1 that providing employees insurance coverage that includes birth control would violate the Kortes' faith.

"It is a family-run business, and they manage the company in accordance with their religious beliefs," the judges wrote.

The dissenting judge argued that the company will not be paying directly for contraception but instead will purchase insurance that covers a wide range of health care that could include birth control, if the woman decides with her physician that she needs it.

"What the Kortes wish to do is to preemptively declare that their company need not pay for insurance which covers particular types of medical care to which they object," the dissenting judge wrote.

Similar reasoning was used by courts denying an injunction requested by the arts and crafts chain Hobby Lobby and religious book-seller Mardel Inc., which are owned by the same evangelical family. Oklahoma-based Hobby Lobby calls itself a "biblically founded business" and is closed on Sundays.

The U.S. district judge who first considered the request said, "Hobby Lobby and Mardel are not religious organizations."

"Plaintiffs have not cited, and the court has not found, any case concluding that secular, for-profit corporations such as Hobby Lobby and Mardel have a constitutional right to the free exercise of religion," the ruling said.

Source... http://news.yahoo.com/obama-birth-control-mandates-loosens-lawsuits-220241491--finance.html

Saturday, January 26, 2013

Cooper Health System Pays $12.6 Million To Resolve False Claims Lawsuit Over Kickbacks Paid To Referring Physicians


A federal lawsuit filed by prominent Delaware Valley cardiologist Nicholas L. DePace , M.D., sparked a multi-year investigation by the United States Department of Justice and the New Jersey Attorney General's Office that has resulted in New-Jersey based Cooper Health System, and Cooper University Hospital paying $12,600,000 to settle Medicare and Medicaid fraud allegations.

The qui tam lawsuit filed in federal district court in New Jersey in 2008 by Dr. DePace alleged that the Cooper Health System and Cooper University Hospital (collectively referred to as "Cooper") paid millions of dollars in illegal kickbacks to physicians to induce them to refer patients to Cooper for expensive in-patient and out-patient cardiac services.  A copy of Dr. DePace's qui tam Complaint, which both the United States and the State of New Jersey joined, along with a copy of the Settlement Agreement can be found at www.falseclaimsact.com; and www.usdoj.gov/usao/nj/.  The United States and State of New Jersey did not file their own Complaint. 

Details of Cooper's Alleged Kickback Scheme

According to Dr. DePace's Complaint, since 2004, Cooper funneled illegal kickbacks to referring physicians through an advisory board known as the Cooper Heart Institute Advisory Board ("CHIAB").  Cooper established the CHIAB in 2004, with the stated purpose of utilizing prominent New Jersey physicians to advise the Cooper Heart Institute regarding innovative technologies, new management strategies, community needs, and appropriate educational and research initiatives.

In reality, the CHIAB was a sham, in which Cooper paid physicians with high-volume medical practices upwards of $18,500 each to do little more than watch four lectures per year hosted at an elegant banquet facility.  These lectures consisted mostly of marketing presentation on cardiac care at Cooper.  Additional lectures included generic subjects that were irrelevant to the stated mission of the CHIAB, including a 2008 lecture entitled: "The Healthcare Plans of the Two Presidential Candidates."

Relator Dr. Nicholas L. DePace

Dr. Nicholas L. DePace is a nationally-recognized expert in cardiology, a prolific author, and noted philanthropist.  He runs a busy solo-cardiology practice with offices in Philadelphia and Sewell, New Jersey.                      

Dr. DePace has practiced medicine in New Jersey and Pennsylvania for more than 30 years.  He is Board Certified in both Cardiology and Internal Medicine.  He is also certified in Echocardiology, Nuclear Cardiology, and Lipidology.  Dr. DePace has, since age 33, served on the faculty of numerous medical schools, including the Medical College of Pennsylvania, Thomas Jefferson University, and Drexel University College of Medicine (formerly Hahnemann University).  He is a Fellow of the American College of Cardiology and the American College of Chest Physicians.

Dr. DePace Exposes Cooper's Kickback Scheme

In the spring of 2007, Cooper invited Dr. DePace to join the CHIAB.  After attending his first CHIAB lecture, Dr. DePace quickly realized that the CHIAB was a thinly-veiled kickback scheme.  Dr. DePace observed that the other CHIAB members were family physicians with high-volume practices.  These physicians were all in the position to direct millions of dollars in patient care to Cooper.

Dr. DePace also observed that the CHIAB physicians were paid $18,500 for doing nothing more than sitting and listening to marketing presentations and lectures on irrelevant topics.  The physicians did not discuss the lecture topics, and were not required to perform any additional work in exchange for the payments from Cooper.

In exchange for Cooper's kickback payments, CHIAB physicians referred their patients to the Cooper Heart Institute for expensive in-patient and out-patient cardiac services.  At least one CHIAB member admitted to Dr. DePace that, when making referrals, he knew that Cooper, through the CHIAB, "butters his bread."

Dr. DePace was alarmed by the CHIAB scheme because patients were being referred to Cooper because of the kickbacks paid to physicians, instead of basing that referral on the best medical interests of the patients.  Dr. DePace filed his qui tam lawsuit in 2008 in an effort to stop this kickback scheme.

Cooper's Scheme Violated Federal and State Anti-Kickback Statutes and Physician Self-Referral Laws
Cooper's scheme is alleged to have violated federal and state Anti-Kickback Statutes, Physician Self-Referral laws, and the federal and New Jersey False Claims Act.

The federal Anti-Kickback Statute, along with similar state laws, generally prohibits the offering or paying anything of value to induce the referral of a service or item paid for by the Medicare or Medicaid programs.  42 U.S.C. Sec.1320a-7b(b)(1) and (2), and N.J.S.A. 30:4D-17(c).

The Federal False Claims Act

The False Claims Act allows private persons (known as "relators") to file a lawsuit against those business and individuals that have directly or indirectly defrauded the federal government.  The False Claims Act was enacted by Congress at the request of President Lincoln, who signed it into law on March 2, 1863.  The Act was strengthened in 1986, and again with amendments enacted in 2009 and 2010.  The Act is the government's primary tool against fraud by its contractors, as evidenced by the recovery of more than $33 billion since 1986.

Read More at PR Newswire... (http://s.tt/1yULd)

Lawsuit Claims SyFy's 'Face Off' Stolen From Pitch Meeting


SyFy and owner NBC Universal were sued Friday by a production company that claims it pitched a show on make-up artists but the network took the idea and instead created the hit reality series Face Off.

The lawsuit, filed in Los Angeles Superior Court, alleges breach of implied-in-fact contract, breach of confidence, unfair competition and other charges.

Read Full Complaint.... http://www.hollywoodreporter.com/sites/default/files/custom/Documents/ESQ/SyFy.pdf

The Results Group, which formerly was known as Studio City, says that in May 2009 a meeting was arranged by an agent at William Morris to pitch a make-up competition show hosted by a female actor. It centered around a $100,000 prize.

The pitch meeting with SyFy allegedly was attended by an executive from The Results Group, a producer it brought in, a consultant and its agent. After the meeting, Results Group allegedly was told the network had decided not to pursue a TV series based on its idea and materials.

When the company learned SyFy was doing a similar series, it asked for evidence the series was not copied from the pitch. In response, SyFy allegedly provided documents that said Face Off had been planned prior to the pitch meeting. When the show debuted on SyFy in January 2011, the Results executives felt what they saw was very much like what they pitched. In the first episode, contestants had to make up models to look like either a beetle, an ostrich or an elephant. The suit says that conceit was substantially similar to the show that was pitched.

The suit seeks damages to cover the lost credit and producing fees, the cost of the suit and other punitive damages to be determined by a judge. Results Group also wants any money the network made off the show.

Read More... http://www.hollywoodreporter.com/thr-esq/lawsuit-claims-syfys-face-stolen-415602

Justin Bieber Investigated for Assault ...


Justin Bieber is being investigated on serious gun control charges -- Nerf gun control!

Here's the story.  Justin was in Ottawa, Canada in November when a female employee of the venue where he was performing filed a police report, claiming Bieber -- or someone who was Biebs adjacent -- assaulted her.

The woman told Canadian cops (aka Mounties) she was hit by something.

Justin was Nerf fighting with his 3-year-old brother and 4-year-old sister and apparently one of the darts hit the woman.

We're told the woman pitched a fit and told Bieber's people she was a security guard for the venue and was royally pissed off.  She filed a police report and the cops are actually taking it seriously -- they've already interviewed some people at the venue.

Read more: http://www.tmz.com/2013/01/26/justin-bieber-nerf-gun-assault-investigation-canada/#ixzz2J7NjPjjg


Ex-football player Erxleben arrested again on fraud charges


Eight years after his release from prison on fraud charges, former football player Russell Erxleben was arrested Thursday at his Dripping Springs home. He is accused of defrauding investors through a Ponzi scheme that paid out more than $2 million in nearly four years.

In an indictment handed up Tuesday and unsealed Thursday, Erxleben was charged with five counts of wire fraud, two counts of money laundering and one count of securities fraud. He appeared, in black gym shorts and a T-shirt, before a federal judge hours after his arrest and asked for a court-appointed lawyer.

U.S. Magistrate Judge Mark Lane said the government had determined Erxleben was a risk of flight or a danger to others and should remain in custody until his arraignment and detention hearing next week.

Erxleben was a three-time All-American kicker at the University of Texas in the late 1970s. He was a first-round pick of the New Orleans Saints and played six seasons in the NFL, mostly as a punter. But since the latter part of the 1990s, he has become more famous for his financial and legal troubles.

The latest indictment said that from about September 2005 to October 2009, Erxleben used three companies, all under Erxleben Entities, to promote several fraudulent investment opportunities, mainly in defaulted post-World War I German government gold bearer bonds. The bonds, instruments of indebtedness issued by Germany in the 1920s and 1930s, have potential historical value, but their financial worth is disputed.

Nevertheless, Erxleben told investors those bonds — sold for about $1,000 each — would be placed in a trust that would create securities coveted by institutional investors who would buy them at premium prices, generating high dividends, court records said.

But none of the investors received the bonds or any ownership document, nor did they receive any return on their investment, the filings said.

Federal authorities said that in another scheme, which began about March 2009, Erxleben feigned to be a member of Gauguin Partners LLC and received money from investors for the examination and appraisal of a painting purportedly by Paul Gauguin, the late 19th century French artist.

He told investors that if the artwork was proved authentic — a process that would cost about $75,000 — the painting could be sold for an estimated $58 million, records said.

The indictment said Erxleben used proceeds from the investment ventures for the benefit of himself and family and to maintain the Ponzi scheme, in which returns paid to earlier investors were actually funds provided by later investors. He made various wire transfers using numerous financial accounts opened and maintained by others, including at least one family member, the records said.

Read More: http://www.statesman.com/news/news/crime-law/former-ut-football-player-erxleben-arrested/nT55j/