Court denies plastics exec's appeal of SEC fines
WASHINGTON (AP) - The Supreme Court won't hear an appeal from a New Jersey plastics industry executive who was ordered to pay $49.5 million for lying about his ownership of a music retailer's stock.
The justices on Monday let stand a lower court ruling that ordered Alfred S. Teo to pay $17.4 million in disgorgement - repayment of unlawful gains - plus $14.6 million in prejudgment interest, and penalties of $17.4 million.
Teo served 2 ½ years in prison after pleading guilty in June 2006 to three counts of insider trading in stock he owned in the now-defunct Musicland Stores Corp.
Teo argued that he should not have had to disgorge profits that were unrelated to violations of securities laws.
Teo is chairman and CEO of Sigma Plastics Group Inc. of Lyndhurst, N.J.
@ROUND UP Briefs Headline:Court to consider when 2nd mortgage can be void
WASHINGTON (AP) - The Supreme Court said Monday it will decide whether homeowners who declare bankruptcy can void a second mortgage if the home's market value has dropped below the amount they owe on the first mortgage.
The justices will consider two appeals from Bank of America, which asserts that bankrupt homeowners should not be able to "strip off" a second loan even if they are underwater on primary loans.
Both cases involve Florida homeowners who were allowed to nullify second loans held by Bank of America. The Atlanta-based 11th U.S. Circuit Court of Appeals affirmed both cases, but Bank of America says the rulings conflict with Supreme Court precedent and every other appeals court to consider the issue.
Bank of America claims hundreds - and possibly thousands - of homeowners in states covered by the 11th Circuit have moved to void underwater second mortgages since the appeals court endorsed the practice two years ago. Those states include Florida, Georgia and Alabama.
"This case presents a critical issue of bankruptcy law affecting a large number of chapter 7 cases," lawyers for Bank of America said in a court filing. The company urged the high court to clarify the rules "and restore uniformity to the administration of chapter 7 cases across the country."
About 28 percent of mortgaged houses in Florida are worth substantially less than market value, ranking the state second only to Nevada in underwater mortgages, according to the real-estate-research company RealtyTrac.
Bank of America says in both cases that it loaned money to the debtors secured by a lien on the home. The company argues that even if the primary mortgage is underwater, that has no effect on the lien securing the second loan.
Attorneys for the homeowners argue that none of the other appeals courts dealt with second mortgages "that would be entirely worthless in foreclosure."
High court asked to rule on tour-guide licensing
ARLINGTON, Va. (AP) - A group of tour guides wants the U.S. Supreme Court to decide whether city governments are restricting their free-speech rights by requiring them to be licensed and pass exams testing their knowledge of local history.
The Arlington-based Institute for Justice says it's filing two petitions arguing that the government has no business licensing tour guides. They say a ruling could have significant implications for anyone who earns a living by talking.
The institute filed the first challenge Monday on licensing laws in Savannah, Georgia. It says it plans to file the second, to the U.S. Supreme Court, on Tuesday.
Two federal appellate courts have recently issued opposing rulings. In New Orleans, a court ruled that city was within its rights to license tour guides. In Washington, D.C., a court said similar rules there were unfounded.
Published: Tue, Nov 18, 2014
