Kim Dotcom’s lawyer: “There has been a trail of illegality”

Police violated numerous laws in New Zealand when pursuing their case against Kim Dotcom and MegaUpload, Dotcom’s lawyer Ira P. Rothken said during a panel at the SF Musictech Summit in San Francisco Tuesday, which is why he is hoping that the case will soon be dismissed in its entirety. There has been a trail of illegality,” Rothken said, adding: “We strongly believe MegaUpload will win this case.”

Rothken was joined on the panel by EFF staff attorney Julie Samuels, whose organization is interceding in the proceedings on behalf of a MegaUpload user. The user is attempting to get access to his data, which was taken offline as part of the raid on MegaUpload’s U.S. data center earlier this year. Samuels agreed that the case looks pretty good for Dotcom overseas, stating: “The case is procedurally falling apart in New Zealand.” The situation is a little different in the U.S., in part because the warrants used to raid MegaUpload’s file hoster Carpathia are still under seal.

Samuels put the proceedings against MegaUpload into the context of other take-down cases against other websites, including Rojadirecta. “There is this lack of due process,” she lamented, saying that the government often relies on information from organizations like the RIAA to seize domains, only to turn them back over 12 to 18 months later if a site owner fights back. The problem is, she added, that many of the affected site owners don’t have the means or willingness to go to court against the government. “We are lucky that MegaUpload is in the position to fight back,” she said.

Dotcom has been working on bringing back MegaUpload, as well as launch a new cloud music service called Megabox. Rothken said that he was working on Megabox even before the raid. “Megabox was designed to cut out the large middle man and to allow artists to monetize their music directly with the consumer,” Rothken said, adding: “Days before Megabox was rolled out, the raid on MegaUpload occured.”

However, Rothken reminded his audience Tuesday that this isn’t just about the legality of a cloud storage business, but aslo about real-life consequences for Dotcom and his co-defendants. “(This) is more than just a case for them. Their liberty is at stake,” he said.

US sues Wells Fargo over loan defaults

The U.S. government has sued Wells Fargo Bank in New York, blaming the nation's largest originator of home mortgages for thousands of loan defaults over the last decade.

A civil mortgage fraud lawsuit filed in U.S. District Court in Manhattan on Tuesday seeks to recover hundreds of millions of dollars that the Federal Housing Administration, which insured the loans, had to pay out after borrowers defaulted.

The lawsuit charges San Francisco-based Wells Fargo with falsely certifying that its loans met the standards necessary to be eligible for government insurance. U.S. Attorney Preet Bharara says the bank's plan to reward employees for the number of loans they approved "was an accelerant to a fire already burning."

This marks the fifth lawsuit that the government has brought against major lenders over mortgage practices.

Wells Fargo & Co. has denied the allegations and is promising a vigorous defense.

Congressman opens voting rights probe of tea party group

Rep. Elijah E. Cummings

A Maryland congressman has opened an investigation of a group that has tried to remove thousands of voters from registration rolls across the nation in advance of the presidential election.

The inquiry by Rep. Elijah E. Cummings , a Democrat, is being started a week after Sen. Barbara Boxer (D-Calif.) urged the Justice Department to enforce voting rights laws, citing a Los Angeles Times article detailing attempts by an Ohio offshoot of the group, True the Vote, to strike hundreds of students and others from voting rolls.

“At some point, an effort to challenge voter registrations by the thousands without any legitimate basis may be evidence of illegal voter suppression,” Cummings told True the Vote founder Catherine Engelbrecht in a letter on Thursday. “If these efforts are intentional, politically motivated and widespread across multiple states, they could amount to a criminal conspiracy to deny legitimate voters their constitutional rights.”

Cummings is the ranking minority member of the House Committee on Oversight and Government Reform.

Engelbrecht, a Texas tea party leader, has described True the Vote as an effort to prevent election fraud and clean up voter registration rolls. The group recruits volunteers, largely through tea party networks, to scour voter lists, challenge the registration of those they believe are dead or do not live at their listed address, and monitor the polls on election day.

“True The Vote has forwarded Congressman Cummings’ letter to its legal team and is more than happy to avail itself” to the congressional committee, the group’s spokesman, Logan Churchwell, said by email. “In the interim, True The Vote invites Congressman Cummings, or any other interested parties, to participate in any training sessions in the weeks ahead.”

The Times article described efforts by the Ohio Voter Integrity Project, a spinoff of True the Vote, to remove more than 2,100 names from voter rolls. Hundreds of them were college students the group tried to strike from the rolls for failure to specify their dorm room numbers. Local election boards declined to remove any of them.

The Ohio group also challenged the rights of eight members of an African American family to vote from an address it identified as a vacant lot outside Cincinnati. But the address was actually the house where the family had lived for nearly three decades. The family suspected race was the group’s motive. The white tea party activist who challenged the family said she had made a mistake and apologized.

In a statement dated Monday on True the Vote’s website, Engelbrecht said the group’s Ohio volunteers had no intention of challenging properly registered voters and were “completely unprepared for the partisan gamesmanship and media spectacle they were subjected to.”

“They trusted in the system and were betrayed at every turn,” Engelbrecht said. “True the Vote stands by the well-intentioned efforts of these citizens and is disgusted by the attempts of some within government and media to warp what should have been a simple, legal process into a calculated partisan charade.”

In his letter, Cummings expressed concerns about the Ohio voter challenges, as well as others reported in North Carolina, Wisconsin and Maryland. He asked True the Vote to provide information “about the data you have been using to challenge voter registrations, the training you have been providing volunteers to conduct these activities, and the manner in which you have been determining where to deploy your resources in select jurisdictions.”

U.S. Unadjusted Unemployment Rate at 7.9% in September

U.S. unemployment, as measured by Gallup without seasonal adjustment, was 7.9% for the month of September, unchanged from 7.9% measured in mid-September but down slightly from 8.1% for the month of August. Gallup's seasonally adjusted September unemployment rate was 8.1%, unchanged from August.

Gallup Adjusted and Unadjusted Unemployment Rate Trend, January 2011-September 2012

These results are based on Gallup Daily tracking interviews, conducted by landline and cell phone, with approximately 30,000 Americans throughout the month -- 68.2% of whom are active in the workforce. Gallup calculates a seasonally adjusted unemployment rate by applying the adjustment factor the government used for the same month in the previous year. The government made no adjustment to the August numbers last year, but adjusted September's up by 0.2 percentage points, which accounts for the flat seasonally adjusted unemployment rate in September despite the decline in the unadjusted rate.

The 7.9% unadjusted rate is the lowest Gallup has recorded since it began collecting employment data in January 2010. It is also significantly lower than the 8.6% rate measured in September 2011.

Underemployment, as measured without seasonal adjustment, was 16.5% in September -- also the lowest rate Gallup has recorded since it started collecting unemployment data in 2010. The September reading reflects more than a half-point drop since the end of August, and a nearly two-point improvement from the 18.3% measured in September 2011.

Gallup's U.S. underemployment measure combines the percentage who are unemployed with the percentage of those working part time but looking for full-time work. Gallup does not apply a seasonal adjustment to underemployment.

Voter ID laws take another hit in Mississippi, no appeal coming in Pennsylvania ruling

Voter buttons

Republicans thought they could suppress the vote this year with a variety of new laws, including state requirements that citizens show a photo ID before casting their ballots. Courts in New Hampshire and Georgia approved their laws. But, in Texas, Wisconsin and Pennsylvania, the photo ID mandate has fallen to court rulings and other legal action. Mississippi joined those three on Tuesday. That came on the heels of news that Pennsylvania Gov. Tom Corbett won't appeal Tuesday's ruling that eliminates the photo ID requirement in his state for this year's election.

Unlike Pennsylvania, where the nation's strictest photo-ID law ran afoul of state courts, Mississippi falls under the Voting Rights Act of 1965. That law was passed to end various "Jim Crow" laws and regulations that for decades had kept most African Americans in the South from casting ballots. Under the law, 16 states or parts of states must have major changes in their voting laws "pre-cleared" by the U.S. Department of Justice. The DOJ's request for more information in its review of the Mississippi law means it won't be in place for this year's election, according to Attorney Gen. Jim Hood.

"All the DOJ is saying in this response is that they need more details of the state's plan in order to make a determination," said Hood. "What this means is that the voter ID requirement will not be in place before the November election. You will not be required to show ID at the poll until DOJ interposes no objections or pre-clears Mississippi's voter ID bill." [...]

In its letter to the state, the Justice Department asked Hood's office whether the state has determined that voter ID "will not have a retrogressive effect on minority citizens in the effective exercise of their electoral franchise." The DOJ also asks to review a detailed description of any measures the state intends to put in place to "ameliorate this prohibited effect, which Hood said would include the rules and regulations being created by Secretary of State Delbert Hosemann.

New Zealand PM was aware of illegal Kim Dotcom surveillance

The New Zealand prime minister who authorized the raid the netted Megaupload.com founder Kim Dotcom in January now admits he was briefed on the possible illegality of the case less than a month after it went down.

Only last month, New Zealand Prime Minister John Key publically apologized to Kim Dotcom, explaining that the mistakes carried out by the Government Communications and Security Bureau (GCSB) leading up to and during the January 20 raid on his Coatesville, NZ home was “appalling.”

"Of course I apologize to Mr. Dotcom. I apologize to New Zealand," Mr. Key said. "I am personally very disappointed that the agency failed to fully understand the workings of its own legislation” when conducting surveillance of Dotcom in the period before his arrest.

Now, however, Mr. Key confirms that he sat in on a debriefing meeting with the GCSB on February 29, during which the state’s spy agency discussed details of the mission.

Mr. Key admits to attending the meeting, but blames "brain fade" for forgetting the actual events of the encounter. A Government Communications Security Bureau review now confirms that the prime minister was put in the know only weeks after Dotcom was arrested, and right at the start of a case that the defendant calls “politically motivated” and appears to be weakening by the moment.

“A paper prepared as talking points for the staff member conducting a presentation contained a short reference to the Dotcom arrest a few weeks earlier, as an example of cooperation between the GCSB and the police,” the GCSB investigation appeals.

Mr. Key declines remembering the specifics of the sit-down, saying, “While neither the GCSB Director nor I can recall the reference to the Dotcom matter being made during my visit to the bureau back in February, I accept that it may well have been made.” What he does recall, he says, is seeing an image of Dotcom appear on the screen during a presentation made during the February meeting.

"They just flashed through it, I do vaguely remember the screen so I remember it being put up,” he says.

An investigation into GCSB practices have forced the agency to admit that the legality of three surveillance missions dating all the way back to 2009 may now be called into questions, only expediting the erosion of New Zealand’s case against Dotcom, a German national who has been raising a family at his Coatesville estate since being freed by authorities. His arrest in January was endorsed by the United States’ FBI, who has indicted Dotcom and his associates for allegedly operating a vast copyright conspiracy over the Internet. Dotcom, born Kim Schmitz, maintains his innocence.

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