Rush for safe havens as euro fears rise

US benchmark borrowing costs plunged to levels last seen in 1946 and those for Germany and the UK hit all-time lows as investors took fright at what they see as a disjointed policy response to the debt crisis in Spain and Italy. In a striking sign of the flight to haven assets, German two-year bond yields fell to zero for the first time, below the equivalent rate for Japan, meaning investors are willing to lend to Berlin for no return. US 10-year yields fell as low as 1.62 per cent, a level last reached in March 1946, according to Global Financial Data. German benchmark yields reached 1.26 per cent while Denmark's came close to breaching the 1 per cent level, hitting 1.09 per cent. UK rates fell to 1.64 per cent, the lowest since records for benchmark borrowing costs began in 1703. "They are extreme levels because we are in an extremely perilous situation. People just want to put their money somewhere where they think they will get it back. People may soon be paying Germany or the US to look after their money," said Gary Jenkins, head of Swordfish Research, an independent credit analysis company. The flight to safety came as the situation in Italy and Spain, the eurozone's third- and fourth-largest economies, deteriorated further. Italy held a disappointing debt auction and saw its benchmark borrowing costs rise above 6 per cent for the first time since January. The euro fell 0.8 per cent against the dollar to under $1.24 for the first time in two years. Confusion over how the Spanish government's rescue of Bankia, the stricken lender, will be structured led the premium Madrid pays over Berlin to borrow to hit fresh highs for the euro era at 540 basis points. Analysts said the elevated level meant that clearing houses could soon raise the amount of margin, or collateral, that traders need to post against Spanish debt, a move that led to the escalation of crises in Portugal and Ireland. The European Central Bank has made clear to Spain that it cannot use the bank's liquidity operations as part of a recapitalision of Bankia. However, the central bank said on Wednesday it had not been officially consulted on the plans. Equity markets globally fell on the eurozone fears with bourses in Paris, Frankfurt and London all dropping 2 per cent. But Nick Gartside, international chief investment officer for JPMorgan Asset Management, noted that while US bond yields had halved since April last year the S&P 500 equity market was at the same level. "One of those two markets is mispriced. Core government bonds are an efficient market and they are ahead," he added. Investors said borrowing costs for the US, UK and Germany were likely to continue to fall amid a worsening economic backdrop and the threat of more central bank intervention. Wealth managers have been moving client assets into currency havens in recent weeks, with the Swiss franc and the US dollar among the biggest beneficiaries "Risk aversion, a rapidly slowing global economy and unusually low policy rates will pin these short and intermediate maturity bonds at unprecedented low levels for quite a while," said Mohamed El-Erian, chief executive of Pimco, one of the world's largest bond investors. Mr Gartside said he could easily see German rates going below 1 per cent, following a path that only Japan and Switzerland have taken among major economies, while the US and UK could dip under 1.5 per cent. Markets are increasingly resigned to more turmoil until policy makers take more radical action. The two most popular plans of action for investors are for the ECB to buy Spanish and Italian bonds in unlimited size or for eurozone countries to agree on a fiscal union involving the pooling of debt. "You have to throw everything at it. Spain is just too big for half measures. The next intervention has to be not just massive in size but it has to show a total commitment," said Mr Jenkins. He recommends that the ECB set targets either for the premium Spain and Italy pay to borrow over Germany or for their yields.

Euro break-up 'could wipe 50pc off London house prices'

Property prices in the capital’s most sought-after postcodes have been driven up by investors moving funds out of assets held in euros to buy into what is seen as a “safe haven” alternative. Foreign money seeking a refuge from the wider economic turmoil accounted for 60pc of acquisitions of prime central London property between 2007 and 2011, according to a report by Fathom Consulting for Development Securities. If the shared currency broke up completely, London property would initially be boosted by the continued flight towards a safe haven, the report predicts. But, once the break-up had taken place, demand for these assets as an insurance against this event would start to ebb. “Although fears about a messy end to the euro debt crisis may account for much of the gain in prime central London (PCL) prices that has taken place over the past two years, we find that a break-up of the single currency area is also the single greatest threat to PCL,” said researchers.

Leveson - The Hunt is on

Up until now, Lord Justice Leveson has only held the future of the British press in his hands. Today, despite all his protests to the contrary, his inquiry may determine the fate of the culture secretary, Jeremy Hunt. The judge insists that it is not his job to put any minister in the dock and that he certainly will not be giving his verdict on whether there have been any breaches of the ministerial code. Nevertheless, the prime minister has made it clear that he sees today's hearing as the moment when Mr Hunt must defend his much criticised handling of News Corp's £8bn bid for total control of BSkyB. The culture secretary has, I'm told, submitted more than 160 pages of internal memos, emails and text message transcripts to the Leveson Inquiry. I understand that he will insist that, despite having originally been a cheerleader not just for Rupert Murdoch but also for his bid, he acted in ways which frustrated it rather than accelerated it once he was made the minister in charge. He will claim that he referred it to the broadcasting regulator Ofcom when told by officials that it wasn't necessary to do so. He is likely to face questions about why he did not follow Ofcom's advice to refer the bid to the Competition Commission. He is likely to reply that he was given legal advice that he had first to consider News Corps offer to spin off Sky News so as to deal with so-called plurality issues. The culture secretary is likely to be asked how he can claim to have been unaware of the scale or nature of the contact between News Corp and his political adviser, Adam Smith - who resigned once his flood of emails and texts were revealed. I understand that Jeremy Hunt originally believed that his adviser had done nothing wrong and told friends he would resign himself rather than letting a junior official resign for him. The prime minister shows no sign yet of wanting to force him out - believing that however bad things may now look, Mr Hunt didn't actually do anything wrong or anything which helped the Murdochs and their bid. Labour argue that - even before today's hearing - it is evident the culture secretary should go as he is in breach of the ministerial code for failing to supervise his adviser, and for misleading the House of Commons when he wrongly asserted he had published all contacts between his department and News Corp - as well as claiming never to have intervened to affect the outcome of the bid.

Coulson on Sheridan perjury charge

David Cameron's former communications chief Andy Coulson has been charged over allegations he committed perjury during the trial of former MSP Tommy Sheridan. The 44-year-old was detained for questioning at Govan police station in Glasgow by officers from Strathclyde Police. More than six hours later, the force confirmed he had been arrested and charged with perjury. A report will be sent to the procurator fiscal which will decide if Coulson is to face court proceedings. The former News of the World editor gave evidence at Sheridan's perjury trial at the High Court in Glasgow in December 2010, while he was employed by Downing Street as director of communications. At the trial, he claimed he had no knowledge of illegal activities by reporters during the time that he was editor of the now-defunct newspaper. He said: "I don't accept there was a culture of phone hacking at the News of the World." Sheridan was ultimately jailed for three years in January last year after being found guilty of perjury during his 2006 defamation action against the News of the World. He had been awarded £200,000 in damages after winning the civil case but a jury found him guilty of lying about the tabloid's claims that he was an adulterer who visited a swingers' club. The former Scottish Socialist Party (SSP) leader was convicted of five out of six allegations in a single charge of perjury relating to his evidence during the civil action at the Court of Session in Edinburgh. Sheridan was released from jail in January this year after serving one year of his sentence and vowed to continue the fight to clear his name. Coulson was arrested last year in relation to Scotland Yard's long-running investigation into phone hacking at the newspaper. He was held in July on suspicion of conspiring to intercept communications and corruption, and had his bail extended earlier this month. Coulson resigned as editor in 2007 after the paper's former royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed for phone hacking. In May that year, he was unveiled as director of communications and planning with the Conservative Party. He quit his role as Downing Street communications chief in January last year after admitting the News of the World phone-hacking row was making his job impossible.

Julian Assange's fight to evade extradition to Sweden appears doomed despite stay of execution

Julian Assange's fight to evade extradition to Sweden appeared doomed today though he was given a stay of execution by the highest court in the land. His celebrity-endorsed legal battle trundled on without him as the self-proclaimed champion of truth and transparency remained stuck in London's notorious traffic, undoubtedly disappointing his legion of fans. While vastly diminished in number from the early days of the furore surrounding the WikiLeaks founder, they were as vociferous as ever, penned in outside the Supreme Court yesterday, carrying megaphones, guitars and banners proclaiming “Free Assange” and “God Save Julian”. Mr Assange, 40, had argued that an European Extradition Warrant from Sweden to face allegations of rape and sexual molestation was invalid as the public prosecutor who issued it did not constitute a “judicial authority”. He denies the accusations, insisting they are “politically motivated”. His case was partially trumped by the French translation of the words judicial authority, which judges at the Supreme Court said carried a far wider meaning that simply a judge or court. By a majority of five to two they decided the practice by many European countries to have public prosecutors issue such warrants countered the interpretation in United Kingdom and his appeal failed. Nevertheless they granted his lawyers 14 days to apply to have the case re-opened after they insisted that they had not been given an opportunity to argue on the very legal points on which the judges had based their decision.

FORMER Downing Street communications chief Andy Coulson has been arrested on suspicion of committing perjury during the Tommy Sheridan trial

Andy Coulson has been arrested on suspicion of perjury. Picture: Getty

FORMER Downing Street communications chief Andy Coulson has been arrested on suspicion of committing perjury during the Tommy Sheridan trial at the High Court in Glasgow, the Crown Office said today.

 

The 44-year-old was detained in London this morning by officers from Strathclyde Police.

 

Coulson gave evidence in Mr Sheridan’s perjury trial at the High Court in Glasgow in December 2010.

 

He was also arrested last year in relation to Scotland Yard’s long-running investigation into phone-hacking at the News of the World.

 

He was held in July on suspicion of conspiring to intercept communications and corruption and had his bail extended earlier this month.

 

A Strathclyde Police spokesman said: “Officers from Strathclyde Police Operation Rubicon detained a 44-year-old man in London this morning under section 14 of the Criminal Procedures Scotland Act on suspicion of committing perjury before the High Court in Glasgow.

 

“It would be inappropriate to comment any further at this time.”

 

It is understood Coulson is on his way to Glasgow.

 

Operation Rubicon detectives have been looking at whether certain witnesses lied to the court during Sheridan’s trial as part of a “full” investigation into phone hacking in Scotland.

 

Mr Coulson, then employed by Downing Street as director of communications, told the trial in December 2010 he had no knowledge of illegal activities by reporters while he was editor of the News of the World.

 

He also claimed: “I don’t accept there was a culture of phone hacking at the News of the World.”

Former News of the World Editor arrested in dawn raid on his London home

 

PR man: Andy Coulson was held today by Strathclyde Police,David Cameron’s former No 10 spin doctor Andy Coulson was arrested today on suspicion of committing perjury.

Mr Coulson, 44, was detained at his home in Dulwich at 6.30am by seven officers from Strathclyde police and taken to Glasgow where he will be questioned.

The case centres on claims that he misled a court about his knowledge of phone-hacking during a criminal trial in Glasgow. The former News of the World editor, hired by the Prime Minister as his director of communications, told a court in 2010 that he had no knowledge of illegal voicemail interception when in charge of the tabloid.

During the perjury trial of former Scottish MP Tommy Sheridan, Mr Coulson said: “I don’t accept there was a culture of phone hacking at the News of the World.” He also denied knowing that the

 newspaper paid corrupt police officers for tip-offs. Mr Cameron has faced questions over his decision to bring Mr Coulson into the heart of government. Mr Coulson has already been arrested by the Met on suspicion of phone-hacking and bribing public officials.

The perjury charge, which carries a maximum prison sentence of seven years, is potentially the most serious facing the former Conservative Party spokesman.

One Downing Street source said the arrest came as a “complete surprise”.

Mr Coulson was a major witness in a trial involving Sheridan who was accused of lying in court during a libel victory against the NoW.

Coulson was editor when it published a story that labelled Sheridan an adulterer who visited swingers’ clubs. He was called as a witness and told the court that he had no knowledge of illegal activities by reporters.

Sheridan was jailed for three years last year after being found guilty of perjury during his 2006 defamation action against the NoW. He had successfully sued the newspaper over its claims.

Strathclyde police announced its probe into Mr Coulson last July but it was thought to be taking a back seat as five major Scotland Yard inquiries into the Murdoch media empire rumbled on.

However, the Standard can disclose that officers from Scotland recently visited London to interview several former NoW staff about their old boss.

Under Scottish law a suspect is detained on suspicion of an offence unlike in England and Wales where a suspect is arrested. Mr Coulson has not been charged.

British housewife could face the death penalty after being arrested in Bali over a £1.6m cocaine haul.

 

Lindsay Sandiford, 55, was caught with 4.8kg of the drug stuffed in the lining of a suitcase as she arrived in Bali, according to customs officials.

After her arrest on the Indonesian island last week she reportedly agreed to take part in a sting operation in which police swooped on four other suspects, arresting another British woman, two British men and an Indian man.

The head of Bali's drugs squad, who goes by one name, Mulyadi, said the two British men, identified by the initials BP and JAP, were believed to be senior figures in a major drug-smuggling syndicate. "It's an international network controlled from abroad", the Australian Associated Press news agency reported Mulyadi saying.

Hiding her face

Sandiford, originally from Redcar, Teesside, is thought to have told police that she only agreed to make the smuggling trip because her children in England were being threatened.

She was paraded at a press conference alongside the drugs, wearing an orange prison T-shirt and hiding her face from cameras.

Masked armed officers in Kuta, a town on the holiday island, flanked her as she was brought into the room and a customs official cut open packages wrapped in brown tape to reveal a white powder.

Sandiford, listed on immigration documentation as a housewife, was stopped as she arrived at Bali's Ngurah Rai International Airport on a Thai Airways flight from Bangkok, Thailand, on May 19, according to customs official Made Wijaya.

Two days after her arrest she was contacted by the second British woman, identified by the initials RLD, at which point a meeting was arranged.

Mr Wijaya said at the press conference: "After weighing, the total cocaine is 4.791kg."

Death penalty

The drugs have an estimated street value of 23.9 billion Indonesian rupiah (£1.6m), he said.

Indonesia has extremely strict drug laws, and the official said Sandiford was likely to face charges that carry a death penalty.

He said: "This is a big international network. The charge against them would carry the death penalty."

Another 68g of cocaine, 280g of powdered ecstasy and a small amount of hashish were also seized following the arrest of the other gang members at separate locations in Bali, officials said.

A Foreign Office spokesman said: "We are aware of the arrest in Bali, and we stand ready to provide consular assistance."

Suspended Cleveland Police chief, Sean Price, sues forces

Cleveland Police's chief constable and his deputy are suing three police forces over allegations of wrongful arrest. Sean Price and Derek Bonnard are taking civil action claiming unlawful arrest, false imprisonment and trespass. Their claims are against the chief constables of North Yorkshire, West Yorkshire and Warwickshire. Action has also been taken against Keith Bristow, ex-police chief of Warwickshire who is now interim director of the National Crime Agency. Cleveland Police said the force would not be commenting on the action taken by the men. But Warwickshire Police, which made the arrests last August, said they have been ready to interview the pair for five months. 'Affected my health' Continue reading the main story “ Start Quote We are completing enquiries as quickly and professionally as lawfully possible” Warwickshire Police The force originally detained Mr Price and Mr Bonnard on suspicion of misconduct in a public office, fraud by abuse of position and corrupt practice. The pair, who have been suspended since their arrests, are on bail until October. The solicitors for the two men say they're taking action after nearly a year, in which there have been no further criminal interviews or allegations made. Mr Price said: "It is now 10 months since my arrest and detention, my name and reputation has been dragged through the mud, it has badly affected my health and I remain on bail suspended from the job I love. "I remain baffled as to why I have been subjected to this treatment but it would appear it is down to my refusal to act unlawfully." He added he was "totally innocent" and determined to clear his name. "I also believe the public, who are funding the bill for this inquiry, deserve to know exactly what has gone on," he said. Mr Bonnard said it felt like he and his family were living through a "plane crash". 'Disproportionate and expensive' "I have served policing for 25 years and working with an excellent workforce, Sean and I turned Cleveland Police into one of the best forces in the country," he said. "Now I am suspended and subject to what I believe is an unnecessary, disproportionate and highly expensive investigation that the public are funding." In a statement, Warwickshire Police said various issues had arisen since the men's arrests which prolonged inquiries. "The investigation did have to obtain search warrants from a district judge to search private and police premises," it said. "Prior to this there had been significant problems in securing documentary evidence. "We have been in a position to interview Mr Price and Mr Bonnard in relation to misconduct matters for 5 months but they have been unable to make themselves available. "We are completing enquiries as quickly and professionally as lawfully possible. "It should be remembered that this is an investigation into complex corruption involving a number of other individuals. A range of serious allegations are being investigated."

A FRAUD investigation is under way after claims a Nottingham financial firm lost £20 million of investors' money.

Police arrested the owners of Arck Limited Liability Partnership, Kathryn Clark and Richard Clay, following the allegations and they have since been released on bail.

1. ​

   Kathryn Clark and Richard Clay

Evidence has been found which suggests Mrs Clark may have tried to falsify bank statements to show Arck had £13.7 million in an account – which actually contained only £25.90.

Arck, based at the Triangle, Enterprise Way, on the NG2 business park, has been placed in compulsory liquidation to freeze its assets.

And the Financial Services Authority (FSA) has also suspended some of the activities of pension firm HD Administrators, which is based at the same address as Arck and has Mrs Clark as a director.

A statement released by the FSA says Mrs Clark did not tell investors in HD Administrators that she was also an executive at Arck, or about the "significant financial benefit" she gained from it.

She was arrested on suspicion of fraud by false representation and money laundering.

The statement adds: "Mrs Clark appears to have received, circulated or been involved in the provision of forged bank statements purporting to relate to Arck General Client account.

"The FSA considers that Mrs Clark's roles in Arck LLP and HDA give rise to a conflict of interest. These circumstances call into question Mrs Clark's fitness and propriety (honesty, integrity and reputation)."

The FSA also claims Mr Clay sent an email to financial advisers acting for investors in November which included a bank statement forwarded to him by Mrs Clark.

It says: "This statement purportedly showed the balance in Arck's general client account at Yorkshire Bank to be £13,750,000 as at 30 September 2011.

"In fact, at this date, the account held a balance of £25.90."

It is not known exactly how many people invested with Arck, but the pension scheme run by HD Administrators has 422 members.

The FSA notice says Arck is facing legal action by investors alleging they have lost £20 million. It says Mrs Clark has received more than £360,000 from Arck since 2006.

No-one was at the company's headquarters when the Post called. E-mails to the company bounce back to the sender and no telephone number appears to be listed on the internet.

Letter boxes at the building were secured shut with screws and a winding up petition against HD Administrators was stuck to the front door.

According to Companies House records, Mr Clay is of Station Road, Bottesford, and Mrs Clark is of Village Street, Edwalton.

A police spokesman said: "Notts Police can confirm it is investigating allegations of fraud related to the activities of Arck LLP.

"Two people, a 47-year-old man and a 49-year-old woman, were arrested in connection with this inquiry on March 2.

"They have been interviewed by detectives and bailed pending further inquiries."

A spokesman for the FSA said: "Following the arrest of two individuals by Notts Police on March 2, the FSA suspended HD Administrators' permissions to carry on regulated activities altogether, and froze its assets.

"Our investigation, along with the ongoing fraud investigation by the police means that there are considerable limitations placed on us regarding what we are able to say publicly. The FSA is continuing to work closely with Notts Police to assist their inquiries."

A notice on the Insolvency Service website says Arck was registered in 2006. It adds: "Once all contact details of investors have been verified the official receiver will be calling a meeting of creditors to appoint an insolvency practitioner as liquidator who will be responsible for realising assets and making payments to creditors. Investors in Arck LLP will need to provide the official receiver with details of their investment so the relevant information can be sent to them."

Crime writer who became the story

A crime reporter has been charged with robbing a liquor store and shooting at police. Akile Simon, of the Trinidad Express, is one of four men accused of stealing $28,000 (£18,000) and nine bottles of whiskey from the store near Port of Spain. Both Simon and Brendon Alexander, a cameraman, denied the charges yesterday and were remanded in custody.

Kansas governor signs bill banning Islamic law

Republican Kansas Governor Sam Brownback signed a bill aimed at keeping state courts and agencies from using Islamic or other non-U.S. laws when making decisions, his office said on Friday, drawing criticism from a national Muslim group. The law has been dubbed the "sharia bill" because critics say it targets the Islamic legal code. Sharia, or Islamic law, covers all aspects of Muslim life, including religious obligations and financial dealings. Opponents of state bans say they could nullify wills or legal contracts between Muslims. Supporters said the law will reassure foreigners in Kansas that state laws and the U.S. Constitution would protect them. Opponents said it singled out Muslims for ridicule and was unnecessary because American laws prevail on U.S. soil. Sherriene Jones-Sontag, a spokeswoman for the governor, said in an e-mail that the bill "makes it clear that Kansas courts will rely exclusively on the laws of our state and our nation when deciding cases and will not consider the laws of foreign jurisdictions." Legislators supporting the bill said there were many cases around the country where judges or state agencies cited sharia law in deciding cases, especially involving divorce-related custody and property matters where Islamic code differs from U.S. law. The Council on American-Islamic Relations in Washington denounced the Kansas law and said it is considering legal action. About 20 states have considered similar legislation but the Kansas law is the only one signed in recent weeks, council spokesman Ibrahim Hooper said. "It's unfortunate the governor chose to pander to the growing Islam-phobia in our society that has led to introduction of similar unconstitutional and un-American legislation in dozens of state legislatures," Hooper said. Hooper said legislators have often referred to sharia law in supporting such legislation, but he said they take the word out of the bill to stave off legal challenges. The Kansas bill does not mention sharia. Federal courts struck down an Oklahoma law voters approved in 2010 that barred state judges from considering sharia law in making decisions. The court called the law discriminatory.

Former head of digital banking security at Lloyds charged with fraud

The former head of digital banking fraud and security at state-backed Lloyds Banking Group has been charged with defrauding her employer by submitting close to £2.5 million worth of false expense claims. In a statement the UK’s Crown Prosecution Service said it had authorised London’s Metropolitan Police to charge Jessica Harper with one count of fraud by abuse of position. The prosecution service said the charge related to an allegation that Ms Harper submitted false invoices to claim payments totalling £2,463,751 to which she was not entitled between September 2008 and December 2011. She will appear before Westminster Magistrates Court in London on May 31st. Lloyds, which is 40 per cent owned by the UK taxpayer, declined to comment.

Lord Taylor banned from legal profession following expenses scandal

The former Tory politician was last May jailed for 12 months after cheating the public purse out of £11,277 with bogus claims for travel costs. He now has no income and has been struggling to find work after 'losing his good name', the Bar Standards Board heard. The 59-year-old had retained his status as a barrister despite not having practised since he became a member of the House of Lords. Disbarring him for 'conduct discreditable to a barrister', Judge Nicholas Riddell said the regulator 'requires complete honesty and the greatest integrity as regards all members of the bar.' 'Criminal behaviour of this seriousness is, in our view to a high degree, discreditable to a barrister, whether or not he was practising at the time,' Judge Riddell said. 'We regretfully are clearly of the opinion that the commission of this offence is incompatible with his continued membership of the bar, despite all the mitigation we have heard and taken account of.' Before entering politics, Taylor had practised as a lawyer in Oxford and the midlands for 17 years. Mohammed Khamisa QC, defending, told the panel Taylor had 'suffered quite enough' after his conviction on the criminal charges. 'He told me, "what more has God, has society, got in store for me?". 'He has lost the only thing that he had: his good name - he really hasn't got very much money, and is living through the benevolence of friends and family. 'What you are dealing with is a single error of judgement in an otherwise distinguished life. 'He has been a role model and continues to be.' Taylor was convicted of six counts of false accounting following a trial at Southwark Crown Court last May. He had falsely registered a house in Oxford as his main residence, enabling him to claim expenses for travel to-and-from London, and for overnight stays in the capital. In reality the property belonged to his nephew's partner, and Taylor, who actually lived in Ealing, west London, had never even stayed there. While in prison, Taylor is said to have written to government to complain about low levels of literacy among inmates, and the number serving sentences for 'petty crimes'. Mr Khamisa added the disgraced politician had never lived a lavish lifestyle and instead lived 'in a house in Ealing where he has lived for the past three decades.' 'He went to Parliament by public transport and came back by public transport, and came home by public transport,' he said. 'He is truly a people's peer.' Taylor, who claims he continues to be the target of racial abuse, had wanted to remain a barrister despite having 'no desire' to work as a lawyer in the future. 'It helps when he travels on speaking engagements, that he can say he is a member of the bar,' said Mr Khamisa. 'The ability to be able to say that he is a member of the solemn profession is bound to increase his prospects in getting a job. 'With a conviction it has been difficult, if not impossible, to get paid employment.' Taylor, of Lynwood Road, Ealing, West London, admitted engaging in conduct discreditable to a barrister. Speaking outside court, Taylor's solicitor, Eddie Tang, said the peer accepted the panel's decision. 'He will deal with it quietly and with dignity, as he did when he served his sentence,' he said. 'He hopes to continue to serve the public in the way he has done for the past 25 years.'

EU cookie implementation deadline is today

A year after its implementation in May 2011, the European Commission's Privacy and Electronic Communications Directive will finally start to be enforced as of tonight, meaning visitors to websites are required to be informed of, and given choice over, the site's intentions to store their data in cookies. Though there has been fierce opposition to the directive, some companies, such as the BBC, Channel 4 and the Guardian, have now begun implementing measures that range from multiple user choices in the level of information shared with the site, to a single message informing the user that, by continuing to browse, they have automatically agreed to have their information stored. Further reading EU cookie law is a 'restraint to trade online', says online retailer Most UK organisations not compliant with EU cookie law New EU cookie law set to come into force But the majority of companies, it is widely reported, will miss tonight's deadline. While the Information Commissioner's Office (ICO) still disagrees that a "one size fits all" policy of standardisation is not the way forward when enforcing cookie legislation, some believe such a framework is the only way forward. Society for engineering and technology professionals, the Institution of Engineering & Technology said, "The implementation of this directive is likely to prove very variable until the introduction of a set of standards on the best way to provide a balance between easy browsing and personal privacy. "We had hoped that more progress would have been made on achieving this in the 12 month implementation delay that the Information Commissioner, Christopher Graham, gave British organisations."

Google plans to warn more than half a million users of a computer infection that may knock their computers off the Internet this summer.

Unknown to most of them, their problem began when international hackers ran an online advertising scam to take control of infected computers around the world. In a highly unusual response, the FBI set up a safety net months ago using government computers to prevent Internet disruptions for those infected users. But that system will be shut down July 9 -- killing connections for those people.

The FBI has run an impressive campaign for months, encouraging people to visit a website that will inform them whether they're infected and explain how to fix the problem. After July 9, infected users won't be able to connect to the Internet.

LONG ARM OF SCOFFLAW

An online ad scam is having some unintended ramifications: The fix may prevent as many as 360,000 from getting online. Several sites will show if you're infected:

DNS Changer Working Group: can discern whether you’re infected and explain how to fix the problem.

DNSChanger Eye Chart: if the site goes red, you’re in harm’s way. Green means clean.

The FBI website: type in the IP address of your DNS server to find out if it is infected.

Read more on how to stay safe

On Tuesday, May 22, Google announced it would throw its weight into the awareness campaign, rolling out alerts to users via a special message that will appear at the top of the Google search results page for users with affected computers, CNET reported. 

“We believe directly messaging affected users on a trusted site and in their preferred language will produce the best possible results,” wrote Google security engineer Damian Menscher in a post on the company’s security blog.

“If more devices are cleaned and steps are taken to better secure the machines against further abuse, the notification effort will be well worth it,” he wrote.

The challenge, and the reason for the awareness campaigns: Most victims don't even know their computers have been infected, although the malicious software probably has slowed their web surfing and disabled their antivirus software, making their machines more vulnerable to other problems.

Last November, when the FBI and other authorities were preparing to take down a hacker ring that had been running an Internet ad scam on a massive network of infected computers, the agency realized this may become an issue.

"We started to realize that we might have a little bit of a problem on our hands because ... if we just pulled the plug on their criminal infrastructure and threw everybody in jail, the victims of this were going to be without Internet service," said Tom Grasso, an FBI supervisory special agent. "The average user would open up Internet Explorer and get `page not found' and think the Internet is broken."

On the night of the arrests, the agency brought in Paul Vixie, chairman and founder of Internet Systems Consortium, to install two Internet servers to take the place of the truckload of impounded rogue servers that infected computers were using. Federal officials planned to keep their servers online until March, giving everyone opportunity to clean their computers.

But it wasn't enough time.

A federal judge in New York extended the deadline until July.

Now, said Grasso, "the full court press is on to get people to address this problem." And it's up to computer users to check their PCs.

'We started to realize that we might have a little bit of a problem on our hands...'

- Tom Grasso, an FBI supervisory special agent

This is what happened:

Hackers infected a network of probably more than 570,000 computers worldwide. They took advantage of vulnerabilities in the Microsoft Windows operating system to install malicious software on the victim computers. This turned off antivirus updates and changed the way the computers reconcile website addresses behind the scenes on the Internet's domain name system.

The DNS system is a network of servers that translates a web address -- such as http://www.foxnews.com -- into the numerical addresses that computers use. Victim computers were reprogrammed to use rogue DNS servers owned by the attackers. This allowed the attackers to redirect computers to fraudulent versions of any website.

The hackers earned profits from advertisements that appeared on websites that victims were tricked into visiting. The scam netted the hackers at least $14 million, according to the FBI. It also made thousands of computers reliant on the rogue servers for their Internet browsing.

When the FBI and others arrested six Estonians last November, the agency replaced the rogue servers with Vixie's clean ones. Installing and running the two substitute servers for eight months is costing the federal government about $87,000.

The number of victims is hard to pinpoint, but the FBI believes that on the day of the arrests, at least 568,000 unique Internet addresses were using the rogue servers. Five months later, FBI estimates that the number is down to at least 360,000. The U.S. has the most, about 85,000, federal authorities said. Other countries with more than 20,000 each include Italy, India, England and Germany. Smaller numbers are online in Spain, France, Canada, China and Mexico.

Vixie said most of the victims are probably individual home users, rather than corporations that have technology staffs who routinely check the computers.

FBI officials said they organized an unusual system to avoid any appearance of government intrusion into the Internet or private computers. And while this is the first time the FBI used it, it won't be the last.

"This is the future of what we will be doing," said Eric Strom, a unit chief in the FBI's Cyber Division. "Until there is a change in legal system, both inside and outside the United States, to get up to speed with the cyber problem, we will have to go down these paths, trail-blazing if you will, on these types of investigations."

Now, he said, every time the agency gets near the end of a cyber case, "we get to the point where we say, how are we going to do this, how are we going to clean the system" without creating a bigger mess than before

Under European Union law, Greece cannot leave the euro.

That is the theory. But in practice, any protection the law offers investors could be difficult to enforce, according to lawyers trying to protect their corporate clients against the upheaval sure to follow if Greece defaults on its debts and adopts a new currency. So their advice is blunt: Remove cash and other liquid assets from Greece and prepare to take a short-term hit on any other investments. “My personal view is that it is irrational for anyone, whether a corporation or an individual, to be leaving money in Greek financial institutions, so long as there is a credible prospect of a euro zone exit,” said Ian Clark, a partner in London for White & Case, a global law firm that has a team of 10 attorneys focusing on the issue. Several multinational corporations have already taken the same view. Vodafone, the mobile phone operator, and GlaxoSmithKline, the pharmaceuticals firm, say they are “sweeping” money out of Greece and into British banks each evening. This applies not just to Greece but to most other euro nations, although Glaxo says it still keeps money in Germany. Corporate attorneys say looking to E.U. law provides only approximate guidance on whether Greece could stop using the euro while remaining in the Union. Although the E.U. prides itself on basing decisions on strict interpretation of the legal texts in its governing treaty and other legislation, the rules on euro membership have proved flexible. For example, while all 27 E.U. nations are supposedly obliged to join the single currency, once they meet certain economic criteria, Britain and Denmark were able to negotiate the option of retaining their own currencies. Sweden is one of the nations technically obliged to join the euro, but since a national referendum opposed the idea in 2003, no one has pressed the country to do so. Similarly, while leaving the euro might, legally, mean quitting the union itself, most experts see this as a technicality that can be circumvented as well. “The treaty doesn’t cover the question of what would happen if a country were to leave the euro and return to its previous currency,” said Stephen Weatherill, Jacques Delors Professor of European Law at Oxford University. “In the absence of any provision, there is plenty of space for European governments to concoct a solution, adopt it and for it to be legally enforceable,” he added. “In general, you can do anything you like, so long as you do not breach pre-existing international obligations.” The mechanics of leaving the euro would surely lead Greece to impose so-called capital controls to stem the flight of money from a currency destined to be devalued. Again, such controls look impossible under E.U. law. But Mr. Weatherill thinks that a loophole allowing for the protection of public security could be invoked. Mr. Clark, of White & Case, a global law firm, points to a clause in Article 65 of the treaty that says that the pledge on free movement should not prevent countries from taking measures “which are justified on grounds of public policy or public security.” Mr. Clark and his team serve clients that include financial institutions like BNP Paribas and hedge funds. In February, Andrew Witty, the chief executive of GlaxoSmithKline, said: “We don’t leave any cash in most European countries” except Germany. Tens of millions of pounds flow into accounts in Britain every day, he said. But, apart from trying to ensure that debts are paid promptly and therefore in euros, legal options for companies are limited. Contracts covered by Greek law, particularly for services delivered in Greece, provide little protection against the currency’s being redenominated and devalued — a development regarded as unlikely until recently. “Greece would, through its laws, be able to amend contracts governed by Greek law or to be performed within the territory of Greece,” Mr. Clark said. “It is the governing law and the place of performance of the contract that is most important.” International contracts, which might be covered by English, German or Swiss law, would be more likely to be honored in the designated currency, though in some cases the wording of the legal document may be vague. And even if the law is on their side, companies would find that to extract payment from a Greek company, they would need a judge in Greece to enforce a ruling from a foreign court. “Enforcement of foreign judgments is harder or easier from country to country within the E.U.,” Mr. Clark said. “Greece has always had a reputation of being a difficult place in which to enforce judgments, from a practical perspective.” That means that international trading partners are likely to share in any losses that accompany a Greek exit from the euro. “International businesses that have long-term interests in Greece are going to have to be pragmatic and probably, in the short term, give some dispensation to their Greek counterparties, rather than trying to enforce the terms of contracts that cannot be performed,” Mr. Clark said.

Former Lloyds worker Jessica Harper in £2.5m fraud charge

A former head of security at Lloyds Bank has been charged in connection with an alleged £2.5m fraud. Jessica Harper, 50, of Croydon, south London, is accused of submitting false invoices to claim payments, between September 2008 and December 2011. At the time she was working as head of fraud and security for digital banking and allegedly made false claims totalling £2,463,750. Ms Harper will appear at Westminster Magistrates' Court on 31 May. She has been charged with one count of fraud by abuse of position. The bank, which is now 39.7% state-owned after being bailed out by the government during the financial crisis, refused to comment on the charging of Ms Harper. A Metropolitan Police spokesman said she was arrested on 21 December 2011 by officers from its fraud squad. Andrew Penhale, from the Crown Prosecution Service's Central Fraud Group, said: "The charge relates to an allegation that between 1 September 2008 and 21 December 2011, Jessica Harper dishonestly and with the intention of making a gain for herself, abused her position as an employee of Lloyds Banking Group, in which she was expected to safeguard the financial interests of Lloyds Banking Group, by submitting false invoices to claim payments totalling £2,463,750.88, to which she was not entitled. "This decision to prosecute was taken in accordance with the Code for Crown Prosecutors. "We have determined that there is a realistic prospect of conviction and a prosecution is in the public interest."

Metropolitan police anti-corruption unit investigated over payments

Scotland Yard is investigating allegations that detectives working for its anti-corruption unit have been paid thousands of pounds by a firm of private investigators. A parliamentary inquiry was told today that invoices, also seen by the Guardian, purport to show how a firm of private investigators made payments in return for information about the Metropolitan police investigation into James Ibori, a notorious Nigerian fraudster. On Tuesday, the Commons home affairs select committee was told by a lawyer involved in the case that invoices showed about £20,000 of potential payments to police officers in what amounted to an undetected case of "apparent corruption right at the heart of Scotland Yard". In recent weeks, as the Guardian investigated the allegations, the Met has sought to discourage the paper from publishing details about the case. But , after MPs heard the evidence, the Met dropped its previous insistence that there was "evidence that casts doubt on the credibility" of the allegations. A police source with knowledge of the investigation, which has been ongoing since October, said developments over the last 24 hours had now led police to take the allegations more seriously. The case revolves around a private investigation firm called RISC Management. Five years ago the firm was hired to work for Ibori, a former Nigerian state governor, after he discovered he was being investigated by the Met for serious fraud. Ibori recently pleaded guilty to money laundering and was jailed in the UK, after the conclusion of a major investigation into his financial affairs. The allegation now being investigated by police is that some detectives on the Met's Proceeds of Corruption Unit, which investigated Ibori, were receiving payments in exchange for information about the ongoing investigation. Invoices and other documents appearing to support the allegations have been anonymously posted to the Met and Independent Police Complaints Commission (IPCC). The documents have also been seen by the Guardian and separately sent to the home affairs committee, which is conducting an inquiry in whether private investigators should be subject to statutory regulation. Keith Vaz, the chair of the committee, has said there is growing concern in the wake of the phone-hacking scandal that some private investigators are operating in "the shadows" of the law. The Commons inquiry has been scrutinising the nexus between private investigators - many of whom are retired police officers - and their former colleagues who are still serving. On Tuesday morning, Mike Schwarz, a lawyer who represents one of Ibori's co-accused, told the inquiry about what he understood to be the significance of the material. He said it indicated possible corruption at the heart of the police investigation into the Nigerian politician's money laundering activities. The invoices are alleged to be from RISC Management to Speechly Bircham, a top firm of lawyers hired by Ibori to prepare his defence. Schwarz told MPs the invoices "perhaps" documented "payments made by RISC Management to sources, presumably police officers or those close to the investigation". He added: "The records, which I think the committee have, show about half-a-dozen payments totalling about £20,000 over a period of eight or nine months [...] it appears to be inappropriate if not corrupt." Schwarz told the committee that he believed RISC Management had been hired to "extract" information from the police investigation into Ibori. He said he had also seen emails - which he believed had also been forwarded to the committee - which confirmed "contact" between detectives investigating Ibori and the private investigators. Schwarz, from Bindmans solicitors, represents Bhadresh Gohil, a London-based solicitor jailed along with Ibori for orchestrating his money laundering scam. Gohil is now considering an appeal. Gohil is understood to have been sent the invoices, anonymously, while in Wandsworth Prison last summer. In a statement, the Met said: "The [force] is investigating an allegation that illegal payments were made to police officers for information by a private investigation agency. The Directorate of Professional Standards (DPS) referred the matter to the Independent Police Complaints Commission in October 2011 which agreed to supervise a DPS investigation into the allegations." Following Schwarz's evidence to parliament, the Met said it had dropped its previous claim to have recently "uncovered evidence" casting doubt on the allegations. Previously, the force had suggested an active line of inquiry was the theory that Gohil or his associates had fabricated the allegations to undermine the prosecution. In a previous statement, provided on Friday, the force said: "As a result of inquiries police have uncovered evidence that casts doubt on the credibility of these allegations. Warrants have been executed at two addresses in London and a quantity of paperwork and computer equipment recovered." Two weeks ago, following raids on properties, one of which was the Gohil's family home in Kent, the force said: "Officers believe that they have identified the originator of the information and a line of enquiry suggests that there may have been an attempt to pervert the course of justice." However, sources at the Yard said previous statements no longer fully represented their position. A source with knowledge of the Met inquiry said the change of stance was unrelated to Schwarz's parliamentary evidence. The source said that, instead, there had been developments in the investigation over the last 24 hours. Schwarz named three serving Met police officers in his testimony to parliament as being potential "culprits": detective inspector Gary Walters, detective constables named as John MacDonald and "Clark". All three officers declined an opportunity to respond to the allegations when contacted by the Guardian last week. However, RISC Management indicated Walters would deny "any and all allegations". RISC Management denied all the allegations about the company, saying it was not aware of the Scotland Yard investigation and had no knowledge of the alleged financial records. The firm confirmed it had been hired by Ibori's lawyers but denied making corrupt payments, saying it "has never paid a serving police officer for information and would never approve such payments". Keith Hunter, chief executive of the company, said: "RISC management does not need to pay serving police officers for confidential information as we pride ourselves on our ability to provide positive solutions and accurate information legitimately. RISC Management has a highly respected reputation for conducting professional investigations". He added that his company was "proud to have a network of highly professional consultants, contacts and resources. These individuals are hired precisely because of their unique skill set and expertise". He accused Schwarz of "grandstanding" in front of the Commons committee, instead of taking the "correct course of reporting the matter to the police". He said Schwarz had not produced any evidence to support his claims and acted for a convicted solicitor, Gohil, who was jailed for seven years for money laundering. Speechly Bircham denied any knowledge of wrongdoing and said it would be willing to assist with any police inquiries. The law firm stressed Schwarz did not suggest in his evidence to parliament that Speechly Bircham was "party to illegal or corrupt payments" and said any such allegation would be false and defamatory. Ian Timlin, the former Speechly Bircham lawyer who was at the time representing Ibori, said neither he nor the firm had "any knowledge of any payments to police officers for information." He added: "At no time, did RISC ever inform me who or what was the source/s they were paying."

TD was the main depository bank for Scott Rothstein), a celebrity lawyer who sold dodgy investments linked to legal settlements

ONE of the success stories in retail banking over the past decade has been the expansion of TD, Canada’s second-largest bank, along America’s eastern seaboard, fuelled by such basic ideas as longer opening hours and service that is better-than-halfway decent. But a fraud case in Florida threatens to sully the reputation of the firm known to millions as “America’s Most Convenient Bank”. TD was the main depository bank for Scott Rothstein), a celebrity lawyer who sold dodgy investments linked to legal settlements. His $1.2 billion Ponzi scheme collapsed in 2009 and he was sentenced to 50 years in jail. Angry investors went after TD, accusing it of “pivotal participation” in the conspiracy. In a court filing plaintiffs alleged, among other things, that TD officers had met with investors to vouch for Mr Rothstein, even conducting “shows” for his structured products at TD branches and corporate offices; that they had misled Rothstein clients about the balances of, and restrictions on transfers from, accounts supposedly held for their benefit; and that the bank had, at Mr Rothstein’s request, moved $16m of investor funds to an account he held in Morocco. TD has consistently denied engaging in wrongdoing. It settled with one group of investors for $170m. A case brought by another group went to trial, resulting in a $67m award in January, which TD is appealing. This set a worrying precedent for the financial sector as it was the first civil verdict against a bank for aiding and abetting fraud in a case brought by the victims (as opposed to the bankruptcy trustee). “It is a landmark case that will cause banks around the world to shudder,” says Charles Intriago, president of the Association of Certified Financial Crime Specialists. There may be more trouble ahead for TD. One of the bank’s internal assessments of the money-laundering risks posed by Mr Rothstein had a red bar across the top with “High Risk” emblazoned on it. Those words were mysteriously missing in the version the bank presented to the court, a discrepancy only spotted when the correct version surfaced in another case in which TD is being sued. This matters because the document could be seen as having supported the bank’s defence that it did not consider the lawyer risky and thus did not conduct the enhanced investigations that might have detected the fraud. TD denies having tampered with evidence, blaming the blacked-out bar on a “copying error”. It stands accused of burying documents, too. In a filing on April 24th, TD recanted statements that it and its lawyers had made in court about an internal document called the “Standard Investigative Protocol”, which sets out the bank’s policies on the detection of dirty money. Having said several times that no such document existed, TD eventually produced it and announced that it had replaced its outside legal counsel, Greenberg Traurig, with another firm. One of the Greenberg lawyers representing TD has since left the firm. Reportedly livid about these developments, the judge who oversaw the $67m award in January, Marcia Cooke, called a hearing to examine whether TD and its lawyers should be held in contempt. At its first session, on May 17th, lawyers for Mr Rothstein’s victims called for extra penalties against the bank and its lawyers—arguing that the award would have been higher had the jury known about the documents—and asked that TD’s pleadings be struck, which, if it were to happen, would cripple its appeal. Judge Cooke appeared to show little sympathy for the bank and Greenberg, reportedly saying: “It is hard for me to describe in words the difficulty throughout this trial related to documents and discovery…It was almost daily.” Triple Damages This drama is good news for other investors lining up to sue TD. After weighing new evidence, a judge recently gave the go-ahead for another Rothstein-related case to proceed, this one a racketeering suit brought by New York-based Emess Capital. The law permits triple damages in such cases, and some think Emess could walk away with more than $100m. “The cases against TD are helping victims of frauds everywhere to compile a road map on how to recover their losses from deep-pocketed financial institutions,” says Mr Intriago. On top of this, some expect TD’s regulator in the United States, the Office of the Comptroller of the Currency, to weigh in with enforcement actions and the Department of Justice to bring indictments. At least one of the individuals involved in the document debacle has hired a criminal-defence lawyer. The Rothstein scam may have been small compared with Bernard Madoff’s, but the implications of its collapse for banks and their legal advisers could be bigger.

Malawi to overturn homosexual ban, Joyce Banda says

President Joyce Banda has said Malawi will overturn its ban on homosexual acts - the first African country to do so since 1994. Two Malawian men were sentenced to 14 years in prison in 2010 after saying they were getting married. Several Western leaders have recently said they would cut aid to countries which did not recognise gay rights. Mrs Banda took power last month after her predecessor, Bingu wa Mutharika, died of a heart attack. She has since reversed several of his policies, including devaluing the currency, in a bid to get donor funding restored. Many donors cut aid under Mr Mutharika, accusing him of economic mismanagement and political repression. After a storm of international condemnation, he did pardon the two Malawian men on "humanitarian grounds only" but said they had "committed a crime against our culture, against our religion, and against our laws". Homosexual acts are illegal in most African countries. In Uganda, an MP recently introduced a bill which stipulated the death penalty could be imposed for some homosexual offences, although he has since said he now wants this changed to life in prison. South Africa is the only African country where same-sex marriages are legal - discrimination based on sexual orientation was banned after a new constitution was introduced when white minority rule ended in 1994. 'Attempted coup' In a speech to parliament, which was broadcast live on national radio, Mrs Banda said: "The Indecency and Unnatural Acts laws shall be repealed." Earlier this month, Mrs Banda said she did not want Sudan's President Omar al-Bashir to attend an African Union summit Malawi is hosting in July. She said she feared the "economic implications" if Mr Bashir visited the country in defiance of an arrest warrant issued by the International Criminal Court on war crimes charges over the conflict in Darfur. Relations with donors have already improved under Mrs Banda and the UK, which had been extremely critical of Mr Mutharika, is now urging other donors to restore funding as soon as possible. Malawi is one of the poorest countries in the world and aid used to make up a large proportion of the national budget. Mrs Banda was elected vice-president as Mr Mutharika's running mate in 2009 but the pair had since fallen out. When the president died, there were reports that Mr Mutharika's allies attempted to sidestep the constitution to prevent her succeeding him. Mrs Banda also announced that an official inquiry would be opened into this "attempted coup" and the circumstances of Mr Mutharika's death.

Police officer reprimanded for tweeting he had arrested offenders who battered 93-year-old woman

Pc Hanif Sanghar even alluded to the fact the arrests were going to be made, telling his 2,700 followers that he was “due to be up very early” yesterday morning. At 5.06am, just over an hour before a 56-year-old woman and a 28-year-old man were arrested on suspicion of assault, he tweeted to a colleague that he was “on an operation”. Emma Winnall was left with a severed finger, a broken arm and wrist after the attack in her ground-floor flat in Moseley, Birmingham, on May 1. Police said the arrested woman was not Miss Winnall’s daughter Joyce Blencoe, who is also 56. Chief Insp Sally Seeley, from West Midlands Police, said: “The man and woman arrested in connection with the attack on Emma Winnall are suspects. They are innocent until proven guilty.” She said in Pc Sanghar’s keenness to update the public “he used terminology which was wholly inappropriate”. She added: “The officer has been advised and the tweets removed.”

Chicago police have reportedly engaged in a preemptive raid against activists that planned to protest the NATO summit.

The raid is believed to have taken place late last night in the Bridgeport neighborhood of Chicago.

The National Lawyers Guild reports:

…Police broke down a door to access a 6-unit apartment building near 32nd & Morgan Streets without a search warrant. Police entered an apartment with guns drawn and tackled one of the tenants to the floor in his kitchen. Two tenants were handcuffed for more than 2 hours in their living room while police searched their apartment and a neighboring unit, repeatedly calling one of the tenants a “Commie faggot.” A search warrant produced 4 hours after police broke into the apartment was missing a judge’s signature, according to witnesses. Among items seized by police in the Bridgeport raid were beer-making supplies and at least one cell phone…

These kinds of raids are the “hallmark of National Special Security Event,” says Sarah Gelsomino of the NLG and People’s Law Office. Gelsomino is correct. In fact, Michael Ratner and Margaret Ratner Kunstler document the “new paradigm of law enforcement” that is preemptive policing in their book Hell No! Your Right to Dissent.

Kunstler and Ratner call it the domestic version of preemptive war. The doctrine of preemptive policing relies on:

…information about demonstration plans, organizers and participants collected in advance of events to cancel protests and acts of dissent before any wrongdoing has occurred. Even assuming that such intelligence is reliable (most of the time police intelligence about protests is proven to be mistaken; the majority of demonstrators and bystanders arrested are found to be innocent of any crimes), the concept of relying on the ability of police to predict violations of the law flies in the face of the First Amendment. Well-established Constitutional law prohibits the government in nearly all instances from exercising prior restraint of speech or association…

Preemptive raids and arrests happened ahead of the 2008 Republican National Convention in St. Paul against the RNC Welcoming Committee and they happened ahead of the 2000 Republican National Convention in Philadelphia.

In addition to this report of a preemptive raid, the NLG adds the police are “unlawfully detaining, searching and questioning NATO protesters.”

…3 plainclothes police officers unlawfully stopped, handcuffed, and searched a NATO protester on Michigan Avenue and Wacker Drive at approximately 2pm today [Thursday, May 17]. According to the protester, he did not consent to a search and there was no probable cause to detain him. The police also photographed and questioned him about where he was from, how he got to Chicago, how long it took, what he was doing here, where he was staying, who he was with, and how long he was planning to say in Chicago. The protester refused to answer any questions and was eventually released…

*

Additionally, a copy of the Chicago police’s ground rules for media has made it on to the Internet. Here is a link to a copy of it. They come from Debra Kirby, chief of the Chicago Police Department Office of International Relations.

Highlights from the rules being put forward by police include:

No “cutting” in and out of police lines will be permitted, or “going up against their backs.”  Those who follow protesters onto private property to document their actions are also will be subject to arrest if laws are broken.

Any member of the media who is arrested will have to go through the same booking process as anyone else.  Release of equipment depends on what part the equipment played in the events that led to the arrest.

There will not be any quick personal recognizance bond just for media members…

…To date, the department has seen no evidence that protesters are turning on media representatives as happened in New York.  She urges media to keep safety in mind and to “not become the story.”…

…Reporters who carry backpacks should be prepared to show their content to police.  You may be asked to fire up and demonstrate any equipment that does not look familiar to officers.

There has been concern among journalists, especially independent media, that the Chicago police will violate their press freedom like New York police have violated journalists covering Occupy Wall Street. Overall, it does not seem the police will be as wanton in violating journalists. However, these ground rules leave a lot of openings for individual cops to use their authority to interfere with press and also make arrests.