Tag Archives: JUDIC

Justice Dept. found more classified items in Biden home search

WASHINGTON, Jan 21 (Reuters) – A new search of President Joe Biden’s home in Wilmington, Delaware on Friday by the U.S. Justice Department found six more items, including documents with classification markings, a lawyer for the president said in a statement Saturday night.

Some of the classified documents and “surrounding materials” dated from Biden’s tenure in the U.S. Senate, where he represented Delaware from 1973 to 2009, according to his lawyer, Bob Bauer. Other documents were from his tenure as vice president in the Obama administration, from 2009 through 2017, Bauer said.

The Department of Justice, which conducted a search that lasted over 12 hours, also took some notes that Biden had personally handwritten as vice president, according to the lawyer.

The president offered access “to his home to allow DOJ to conduct a search of the entire premises for potential vice-presidential records and potential classified material,” Bauer said.

Neither Biden nor his wife were present during the search, the attorney said. Biden is in Rehoboth Beach, Delaware, for the weekend.

Justice Department investigators coordinated the search with Biden’s lawyers ahead of time, Bauer said, and the president’s personal and White House lawyers were present at the time.

Other classified government records were discovered this month at Biden’s Wilmington residence, and in November at a private office he maintained at a Washington, D.C., think tank after ending his tenure as vice president in the Obama administration in 2017.

On Saturday, Bauer did not make clear in his statement where in the Wilmington home the documents were found. The previous classified documents were found in the home’s garage and in a nearby storage space.

The search shows federal investigators are swiftly moving forward with the probe into classified documents found in Biden’s possession. This month, U.S. Attorney General Merrick Garland named a special counsel to probe the matter.

Special counsel Robert Hur, who was appointed during the process, is investigating how the president and his team handled Obama-era classified documents that were recently found in Biden’s private possession.

Biden’s lawyers found all the documents discovered before Friday’s search by the DOJ, according to the White House. The latest search was the first time federal law enforcement authorities have conducted a search for government documents at Biden’s private addresses, according to information released publicly.

Republicans have compared the investigation to the ongoing probe into how former President Donald Trump handled classified documents after his presidency. The White House has noted that Biden’s team has cooperated with authorities in their probe and had turned over those documents. Trump resisted doing so until an FBI search in August at his Florida resort.

The search escalates the legal and political stakes for the president, who has insisted that the previous discovery of classified material at his home and former office would eventually be deemed inconsequential.

Biden said on Thursday he has “no regrets” about not publicly disclosing before the midterm elections the discovery of classified documents at his former office and he believed the matter will be resolved.

“There is no there, there,” Biden told reporters during a trip to California on Thursday.

Since the discovery of Biden’s documents, Trump has complained that Justice Department investigators were treating his successor differently.

“When is the F.B.I. going to raid the many homes of Joe Biden, perhaps even the White House?” Trump said in a social media post earlier this month.

Reporting by Nandita Bose, Matt Spetalnik, Steve Holland and Joel Schectman
Editing by Nick Zieminski and David Gregorio

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Tens of thousands of Israelis protest against Netanyahu justice plans

TEL AVIV, Jan 21 (Reuters) – Tens of thousands of Israelis joined demonstrations on Saturday against judicial reform plans by Prime Minister Benjamin Netanyahu’s new government that protesters say will threaten democratic checks and balances on ministers by the courts.

The plans, which the government says are needed to curb overreach by activist judges, have drawn fierce opposition from groups including lawyers, and raised concerns among business leaders, widening already deep political divisions in Israeli society.

“They want to turn us into a dictatorship, they want to destroy democracy,” the head of the Israeli Bar Association, Avi Chimi said. “They want to destroy judicial authority, there is no democratic country without a judicial authority.”

Netanyahu has dismissed the protests, now in their third week, as a refusal by leftist opponents to accept the results of last November’s election, which produced one of the most right-wing governments in Israel’s history.

The protesters say the future of Israeli democracy is at stake if the government succeeds in pushing through the plans, which would tighten political control over judicial appointments and limit the Supreme Court’s powers to overturn government decisions or Knesset laws.

As well as threatening the independence of judges and weakening oversight of the government and parliament, they say the plans will undermine the rights of minorities and open the door to more corruption.

“We are fighting for democracy,” said Amnon Miller, 64, among crowds of protesters, many bearing white and blue Israeli flags. “We fought in this country in the army for 30 years for our freedom and we won’t let this government take our freedom.”

Saturday’s protests, which Israeli media said were expected to draw more than 100,000 people to central Tel Aviv, come days after the Supreme Court ordered Netanyahu to fire Interior Minister Aryeh Deri, who leads the religious Shas party, over a recent tax conviction.

The new government, which took office this month, is an alliance between Netanyahu’s Likud party and a clutch of smaller religious and hard-right nationalist parties which say they have a mandate for sweeping change.

Netanyahu, who is himself on trial on corruption charges which he denies, has defended the judicial reform plans, which are currently being examined by a parliamentary committee, saying they will restore a proper balance between the three branches of government.

Likud politicians have long accused the Supreme Court of being dominated by leftist judges who they say encroach on areas outside their authority for political reasons. The court’s defenders say it plays a vital role in holding the government to account in a country that has no formal constitution.

A survey released by the Israel Democracy Institute last week showed trust in the Supreme Court was markedly higher among left-wing Israelis than among those on the right, but that there was no overall support for weakening the court’s powers.

Reporting by Emily Rose; Writing by James Mackenzie; Editing by David Holmes and Andrew Heavens

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In Mexico, a reporter published a story. The next day he was shot dead

MEXICO CITY, Jan 21 (Reuters) – Just after sunset on Thursday, February 10th, two men in a white Dodge Ram pickup pulled up in front of Heber Lopez Vasquez’s small radio studio in southern Mexico. One man got out, walked inside and shot the 42-year-old journalist dead. Lopez’s 12-year-old son Oscar, the only person with him, hid, Lopez’s brother told Reuters.

Lopez was one of 13 Mexican journalists killed in 2022, according to the Committee to Protect Journalists (CPJ), a New York-based rights group. It was the deadliest year on record for journalists in Mexico, now the most dangerous country for reporters in the world outside the war in Ukraine, where CPJ says 15 reporters were killed last year.

A day earlier, Lopez–who ran two online news sites in the southern Oaxaca state–had published a story on Facebook accusing local politician Arminda Espinosa Cartas of corruption related to her re-election efforts.

As he lay dead, a nearby patrol car responded to an emergency call, intercepted the pickup and arrested the two men. One of them, it later emerged, was the brother of Espinosa, the politician in Lopez’s story.

Espinosa has not been charged in connection with Lopez’s killing. She did not respond to multiple requests for comment and Reuters could not find any previous comment she made about her role in corruption or on Lopez’s story.

Her brother and the other man remain detained but have yet to be tried. Their lawyer did not respond to multiple requests for comment.

“I already stopped covering drug trafficking and corruption and Heber’s death still scares me,” said Hiram Moreno, a veteran Oaxacan journalist who was shot three times in 2019, sustaining injuries in the leg and back, after writing about drug deals by local crime groups. His assailant was never identified. “You cannot count on the government. Self-censorship is the only thing that will keep you safe.”

It is a pattern of fear and intimidation playing out across Mexico, as years of violence and impunity have created what academics call “silence zones” where killing and corruption go unchecked and undocumented.

“In silence zones people don’t get access to basic information to conduct their lives,” said Jan-Albert Hootsen, CPJ’s Mexico representative. “They don’t know who to vote for because there are no corruption investigations. They don’t know which areas are violent, what they can say and not say, so they stay silent.”

President Andres Manuel Lopez Obrador’s spokesman did not respond to a request for comment about attacks on the media.

Since the start of Mexico’s drug war in 2006, 133 reporters have been killed for motives related to their work, CPJ determined, and another 13 for undetermined reasons. In that time Mexico has registered over 360,000 homicides.

Aggression against journalists has spread in recent years to previously less hostile areas–such as Oaxaca and Chiapas–threatening to turn more parts of Mexico into information dead zones, say rights groups like Reporters Without Borders and 10 local journalists.

Lopez was the second journalist since mid-2021 to be murdered in Salina Cruz, a Pacific port in Oaxaca. It nestles in the Isthmus of Tehuantepec, a skinny stretch of land connecting the Gulf of Mexico and the Pacific that has become a landing spot for precursor chemicals to make fentanyl and meth, according to three security analysts and a DEA source.

Lopez’s last story, one of several he wrote about Espinosa, covered the politician’s alleged efforts to get a company constructing a breakwater in Salina Cruz’s port to threaten workers to cast their vote for her re-election or else be fired.

The infrastructure was a part of the Interoceanic Corridor–one of Lopez Obrador’s flagship development projects in southern Mexico.

Jose Ignacio Martinez, a crime reporter in the isthmus, and nine of Lopez’s fellow journalists say since his murder they are more afraid to publish stories delving into the corridor project, drug trafficking and state collusion with organized crime.

One outlet Reuters spoke to, which asked not to be named for fear of reprisals, said it had done an investigation on the corridor, but did not feel safe to publish after Lopez’s death.

Lopez Obrador’s spokesman did not respond to a request for comment about corruption accusations related to the corridor.

THE MECHANISM

In 2012 the government established the Mechanism for the Protection of Human Rights Defenders and Journalists.

Known simply as the Mechanism, the body provides journalists with protections such as panic buttons, surveillance equipment, home police watch, armed guards and relocation. Since 2017, nine Mechanism-protected reporters have been murdered, CPJ found.

Journalists and activists may request protection from the Mechanism, which evaluates their case along with a group of human rights defenders, journalists and representatives of nonprofits, as well as officials from various government agencies that make up a governing board. Not all those who request protection receive it, based on the analysis.

At present there are 1,600 people enrolled in the Mechanism, including 500 journalists.

One of those killed was Gustavo Sanchez, a journalist shot at close range in June 2021 by two motorcycle-riding hitmen. Sanchez, who had written critical articles about politicians and criminal groups, enrolled in the Mechanism for a third time after surviving an assassination attempt in 2020. Protection never arrived.

Oaxaca’s prosecutor at the time said Sanchez’s coverage of local elections would be a primary line of investigation into his murder. No one has been charged in the case.

Sanchez’s killing triggered Mexico’s human rights commission to produce a 100-page investigation into authorities’ failings. Evidence “revealed omissions, delays, negligence and breach of duties by at least 15 public servants,” said the report.

Enrique Irazoque, head of the Interior Ministry’s department for the Defense of Human Rights, said the Mechanism accepted the findings, but highlighted the role local authorities played in the protection lag.

Fifteen people within government and civil society told Reuters the Mechanism is under-resourced given the scope of the problem. Irazoque agreed, though he noted its staff of 40 increased last year to a staff of 70. Its 2023 budget increased to around $28.8 million from $20 million in 2022.

In addition to the shortage of funding, Irazoque said that local authorities, state governments and courts need to do more, but there was a lack of political will.

“The Mechanism is absorbing all the problems, but the issues are not federal, they are local,” he said in an interview with Reuters.

More convictions are what Irazoque believes are most needed, saying the lack of legal repercussions for public officials encourages corruption.

Impunity for journalist killings hovers around 89%, a 2021 report from the Interior Ministry, which oversees the Mechanism, showed. Local public servants were the biggest source of violence against journalists, ahead of organized crime, the report found.

“You would think the biggest enemy would be armed groups and organized crime,” said journalist Patricia Mayorga, who fled Mexico after investigating corruption. “But really it’s the ties between those groups and the state officials that are the problem.”

Many Mexican journalists killed worked for small, independent, digital outlets that sometimes only published on Facebook, noted Irazoque, saying their stories dug deep into local political issues.

Mexico’s National Association of Mayors (ANAC) and its National Conference of Governors (CONAGO) did not respond to requests for comment about the role of state and local governments in journalist killings or allegations of corrupt ties to crime groups.

President Lopez Obrador frequently pillories the press, calling out reporters critical of his administration and holding a weekly segment in his daily news conference dedicated to the “lies of the week.” He condemns the murders, while accusing adversaries of talking up the violence to discredit him.

Irazoque says he has no evidence the president’s verbal attacks have led to violence against journalists. Lopez Obrador’s spokesman did not respond to a request for comment.

“What type of life is this?,” journalist Rodolfo Montes said, eyeing security footage from inside his home where the Mechanism, in which he first enrolled in 2017, had installed cameras with eyes on the garage, street and entryway.

Years earlier, a cartel rolled a bullet under the door as a threat, and he has been on edge ever since. An entire archive box of threats spread over a decade sat in the corner. Looking down at his phone after a cartel threatened his 24-year-old daughter just a few days before, he said, “I’m living, but I’m dead, you know?”

Reuters Graphics

Editing by Claudia Parsons and Dave Graham; Additional reporting by Pepe Cortes in Oaxaca

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Feds seized nearly $700 million from FTX founder Bankman-Fried

Jan 20 (Reuters) – Federal prosecutors have seized nearly $700 million in assets from FTX founder Sam Bankman-Fried in January, largely in the form of Robinhood stock, according to a Friday court filing.

Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, has pleaded not guilty to fraud charges. He is scheduled to face trial in October.

The Department of Justice revealed the seizure of Robinhood shares earlier this month, but it provided a more complete list of seized assets Friday, including cash held at various banks and assets deposited at crypto exchange Binance.

The ownership of the seized Robinhood shares, valued at about $525 million, has been the subject of disputes between Bankman-Fried, FTX, and bankrupt crypto lender BlockFi.

The most recent asset seizure reported by the DOJ took place on Thursday, when prosecutors seized $94.5 million in cash from an account at Silvergate Bank which was associated with FTX Digital Markets, FTX’s subsidiary in the Bahamas. The DOJ seized more than $7 million from other Silvergate accounts associated with Bankman-Fried and FTX.

The DOJ previously seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a small bank in Washington state.

DOJ also said that assets in three Binance accounts associated with Bankman-Fried were subject to criminal forfeiture, but did not provide an estimate of the value in those accounts.

Reporting by Dietrich Knauth; Editing by Noeleen Walder and Daniel Wallis

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Musk expected to take stand as trial resumes over Tesla tweet

SAN FRANCISCO Jan 20 (Reuters) – Elon Musk, Tesla Inc’s (TSLA.O) chief executive, is likely to be called to testify on Friday in a jury trial over his 2018 Twitter post that he had “funding secured” to take the electric carmaker private, which shareholders allege cost them millions in trading losses.

The class action trial in San Francisco federal court resumed with investor Timothy Fries telling the jury how he lost $5,000 buying Tesla stock after Musk sent the tweet at the center of the lawsuit.

Musk, known for combative testimony, is expected to address why he has insisted he had Saudi investor backing for the deal, which never came together, and whether he knowingly made a materially misleading statement with his tweet.

The case is a rare securities class action trial and the plaintiffs have already cleared high legal hurdles, with U.S. Judge Edward Chen ruling last year that Musk’s post was untruthful and reckless.

Shareholders alleged that Musk lied when he sent the tweet, costing investors.

Fries told the jury that funding secured meant to him that “there had been some vetting, some critical review of those funding sources.”

Musk’s attorney, Alex Spiro, told the jury in his opening statement Wednesday that Musk believed he had financing from Saudi backers and was taking steps to make the deal happen. Fearing leaks to the media, Musk tried to protect the “everyday shareholder” by sending the tweet, which contained “technical inaccuracies,” Spiro said.

Guhan Subramanian, a Harvard Law School professor, told the jury that Musk’s behavior in 2018 lacked the hallmarks of traditional corporate dealmaking by tweeting his interest in Tesla without proper financial or legal analysis.

“Compared to the standard template it’s an extreme outlier,” said Subramanian, who called Musk’s approach “unprecedented” and “incoherent.”

A jury of nine will decide whether the tweet artificially inflated Tesla’s share price by playing up the status of funding for the deal, and if so, by how much.

The defendants include current and former Tesla directors, whom Spiro said had “pure” motives in their response to Musk’s plan.

Reporting by Tom Hals in Wilmington, Del., and Jody Godoy in San Francisco; Editing by Noeleen Walder, Peter Henderson, Matthew Lewis and Daniel Wallis

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Jody Godoy

Thomson Reuters

Jody Godoy reports on banking and securities law. Reach her at jody.godoy@thomsonreuters.com

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Trump, lawyers sanctioned nearly $1 million for ‘political’ lawsuit vs Clinton

Jan 19 (Reuters) – A federal judge on Thursday ordered former U.S. President Donald Trump and his attorneys to pay more than $937,000 in sanctions for suing former Secretary of State Hillary Clinton over claims the 2016 presidential election was rigged.

U.S. District Judge John Middlebrooks, who threw out Trump’s lawsuit in September, said the sanctions were warranted because the former president had exhibited a pattern of misusing the courts to further his political agenda.

“This case should never have been brought. Its inadequacy as a legal claim was evident from the start. No reasonable lawyer would have filed it. Intended for a political purpose, none

of the counts of the amended complaint stated a cognizable legal claim,” Middlebrooks wrote in the 45-page written ruling.

Representatives for Trump and his lead attorney in the case, Alina Habba, could not be reached for comment by Reuters on Thursday evening.

Trump sued Clinton, the 2016 Democratic presidential nominee, claiming that she and other Democrats sought to rig that election by falsely accusing his campaign of links to Russia. read more

Middlebrooks, who was appointed to the bench by President Bill Clinton in 1997, dismissed the case in September, calling the lawsuit “a two-hundred-page political manifesto outlining his grievances against those that have opposed him.”

Trump, a Republican, sought re-election in 2020 but was defeated by Democrat Joe Biden, after which he repeatedly made false claims blaming widespead voting fraud for his loss.

He has launched a run for the 2024 presidential election, setting up a potential rematch against Biden.

Reporting by Dan Whitcomb; Editing by Simon Cameron-Moore

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Brazil court grants bankruptcy protection for retailer Americanas

SAO PAULO, Jan 19 (Reuters) – A Rio de Janeiro court on Thursday accepted Brazilian retailer Americanas SA’s (AMER3.SA) bankruptcy protection request, days after the company disclosed nearly $4 billion in accounting inconsistencies that have sparked a legal feud with creditors and investors.

Americanas, a 93-year-old company with stores all over Brazil and a major e-commerce unit, said in a securities filing that it would restructure debts of about 43 billion reais ($8.2 billion).

Shares in the company plunged about 42.5% to 1.00 real following news of the filing, extending its year-to-date drop to around 90%.

The firm, backed by the billionaire trio that founded 3G Capital, said the move had come “despite the efforts and measures that the management has been taking in the past few days alongside its financial and legal advisers to protect the company from the effects” of the accounting scandal.

Investors had expected the decision, with some deeming it unavoidable, especially after lender BTG Pactual (BPAC3.SA) obtained on Wednesday a court decision overturning part of the firm’s protection from creditors.

Americanas is also facing seven different investigations launched by securities regulator CVM, as well as an arbitration process requesting compensation of 500 million reais to the firm and the trio that founded 3G Capital.

In a document filed with the court, law firms Basilio Advogados and Salomao Kaiuca Abrahao attributed the urgency in filing for bankruptcy to the creditors’ decision to seize the companies’ assets.

The retailer also mentioned a debt downgrade by ratings agencies, which prevented any new loans from being extended. S&P, Moody’s and Fitch all downgraded Americanas’ credit ratings following the accounting scandal.

Earlier, Americanas had said that its current cash position stood at only 800 million reais, down from a previously reported 7.8 billion.

Lucas Pogetti, a partner at M&A advisers RGS Partners, said a large part of Americanas’ previously disclosed cash position was linked to the prepayment of receivables or deposited with creditors.

“Naturally, when the banks became aware of the company’s real situation they began to adopt a more aggressive posture to protect themselves, consequently restricting access to resources,” Pogetti said.

In the filing, Americanas asks to exclude its fintech, Ame, from the bankruptcy protection, as it is regulated by the central bank, and for authorization to increase its capital.

Americanas’ stores are ubiquitous at Brazilian shopping malls. It e-commerce unit, which traded as a separate company before a recent restructuring, is one of the country’s top online retailers.

Chief executive Sergio Rial resigned last week, less than two weeks after taking the job, citing the discovery of “accounting inconsistencies” totaling 20 billion reais.

Rial, the former head of Banco Santander’s Brazilian arm (SANB3.SA), attributed the inconsistencies to differences in accounting for the financial cost of bank loans and debt with suppliers.

Chief financial officer Andre Covre, who had just joined Americanas as well, also left the firm, which has Brazilian billionaires Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles as reference shareholders.

Americanas said the reference shareholders intended to maintain the company’s liquidity at levels that allowed for a “good operation” of its stores, digital channel and other entities.

($1 = 5.2226 reais)

Reporting by Gabriel Araujo, Tatiana Bautzer and Peter Frontini in Sao Paulo and Carolina Pulice in Mexico City; Editing by Rosalba O’Brien and Bradley Perrett

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Sex pills, designer clothes found in mafia boss Messina Denaro’s hideout

  • Messina Denaro caught after 30 years on the run
  • Apartment found in Western Sicilian town
  • Doctor who prescribed cancer treatment under investigation

PALERMO, Italy, Jan 17 (Reuters) – Perfumes, designer clothes and sex pills were found on Tuesday in an apartment which investigators believe was the last hideout of Sicilian mafia boss Matteo Messina Denaro, judicial sources said, a day after the arrest of the fugitive.

Messina Denaro, 60, caught on Monday at a private hospital in Palermo after 30 years on the run, is being held in the central Italian city of L’Aquila, the Palermo prosecutor said. He was transferred from Sicily on the day of his arrest.

The apartment is in an a modest building near the centre of Campobello di Mazara, a town in the Western Sicilian province of Trapani, just a few kilometres from Messina Denaro’s home town of Castelvetrano.

Investigators found clothes, shoes, a well-stocked fridge and restaurant receipts there, judicial sources said. They also found potency pills.

“He had a regular life, he went to the supermarket,” said magistrate Paolo Guido, one the officials investigating Messina Denaro.

Neighbours described him as a friendly person.

“I live on the first floor of the building, sometimes I have seen this person, greeted him and nothing else. He responded in a cordial manner,” Rosario Cognata told Italian media.

TASTE FOR LUXURY

Messina Denaro was known for his taste for luxury goods, including designer clothes and expensive sunglasses. Police said he was wearing a watch worth 35,000 euros ($38,000) when he was arrested.

Messina Denaro is believed to have lived in the apartment for the past year, judicial sources said, but police are still searching for other places where he might have spent time.

Investigators believe Messina Denaro was driven on Monday to Palermo’s La Maddalena hospital from Campobello di Mazara to be treated for cancer. The town was home to his alleged aide Giovanni Luppino, who was arrested with him.

Police placed under investigation medical doctor Alfonso Tumbarello on suspicion of aiding and abetting the mafia boss, judicial sources said, because he attended to Messina Denaro, who was undergoing anti-cancer treatment under a false name.

The sources said he gave the name of Andrea Bonafede, who was the owner of the apartment Messina Denaro was living in, and who is also under investigation.

Nicknamed “‘U Siccu” (The Skinny One), Messina Denaro picked up 20 life prison terms in trials held in absentia for his role in an array of mob murders, including the bomb attacks that killed anti-mafia prosecutors Giovanni Falcone and Paolo Borsellino in 1992.

Despite his illness, prosecutors said Messina Denaro was fit enough to serve time in prison where he will carry on with his cancer treatment.($1 = 0.9232 euros)

Additional reporting by Angelo Amante and Alvise Armellini in Rome
Writing by Angelo Amante
Editing by Keith Weir and Tomasz Janowski

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Cardi B given second chance by judge for community service hours

NEW YORK, Jan 17 (Reuters) – Grammy Award-winning rapper Cardi B has until March 1 to complete 15 days of mandatory community service over a 2018 assault at a strip club, a New York City judge ruled on Tuesday.

The Queens District Attorney’s Office told Reuters the hearing was a “compliance update” and the judge had asked Cardi B to come in because she had not completed her 15 days of community service as per her plea deal.

The “WAP” artist arrived at the Queens County Criminal Court wearing a white form-fitting dress and long white coat.

“Personally and professionally, Cardi is dedicated to community service and charitable endeavors. She therefore appreciates the court giving her until March 1st to complete her community service commitment in Queens, New York,” Cardi B’s attorney said in a statement.

Police said that Cardi B, whose real name is Belcalis Almanzar, got into an argument with female bartenders at a club. She had accused one of them of having an affair with her husband and fellow rapper, Offset.

The 30-year-old rapper pleaded guilty to two misdemeanor assault charges last year after being accused of starting a fight with two bartenders, claiming she wanted to be a better example for her children.

“Part of growing up and maturing is being accountable for your actions,” she said after her hearing in September.

Reporting by Soren Larson and Danielle Broadway;
Editing by Mary Milliken and Josie Kao

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Tesla video promoting self-driving was staged, engineer testifies

Jan 17 (Reuters) – A 2016 video that Tesla (TSLA.O) used to promote its self-driving technology was staged to show capabilities like stopping at a red light and accelerating at a green light that the system did not have, according to testimony by a senior engineer.

The video, which remains archived on Tesla’s website, was released in October 2016 and promoted on Twitter by Chief Executive Elon Musk as evidence that “Tesla drives itself.”

But the Model X was not driving itself with technology Tesla had deployed, Ashok Elluswamy, director of Autopilot software at Tesla, said in the transcript of a July deposition taken as evidence in a lawsuit against Tesla for a 2018 fatal crash involving a former Apple (AAPL.O) engineer.

The previously unreported testimony by Elluswamy represents the first time a Tesla employee has confirmed and detailed how the video was produced.

The video carries a tagline saying: “The person in the driver’s seat is only there for legal reasons. He is not doing anything. The car is driving itself.”

Elluswamy said Tesla’s Autopilot team set out to engineer and record a “demonstration of the system’s capabilities” at the request of Musk.

Elluswamy, Musk and Tesla did not respond to a request for comment. However, the company has warned drivers that they must keep their hands on the wheel and maintain control of their vehicles while using Autopilot.

The Tesla technology is designed to assist with steering, braking, speed and lane changes but its features “do not make the vehicle autonomous,” the company says on its website.

To create the video, the Tesla used 3D mapping on a predetermined route from a house in Menlo Park, California, to Tesla’s then-headquarters in Palo Alto, he said.

Drivers intervened to take control in test runs, he said. When trying to show the Model X could park itself with no driver, a test car crashed into a fence in Tesla’s parking lot, he said.

“The intent of the video was not to accurately portray what was available for customers in 2016. It was to portray what was possible to build into the system,” Elluswamy said, according to a transcript of his testimony seen by Reuters.

When Tesla released the video, Musk tweeted, “Tesla drives itself (no human input at all) thru urban streets to highway to streets, then finds a parking spot.”

Tesla faces lawsuits and regulatory scrutiny over its driver assistance systems.

The U.S. Department of Justice began a criminal investigation into Tesla’s claims that its electric vehicles can drive themselves in 2021, after a number of crashes, some of them fatal, involving Autopilot, Reuters has reported.

The New York Times reported in 2021 that Tesla engineers had created the 2016 video to promote Autopilot without disclosing that the route had been mapped in advance or that a car had crashed in trying to complete the shoot, citing anonymous sources.

When asked if the 2016 video showed the performance of the Tesla Autopilot system available in a production car at the time, Elluswamy said, “It does not.”

Elluswamy was deposed in a lawsuit against Tesla over a 2018 crash in Mountain View, California, that killed Apple engineer Walter Huang.

Andrew McDevitt, the lawyer who represents Huang’s wife and who questioned Elluswamy’s in July, told Reuters it was “obviously misleading to feature that video without any disclaimer or asterisk.”

The National Transportation Safety Board concluded in 2020 that Huang’s fatal crash was likely caused by his distraction and the limitations of Autopilot. It said Tesla’s “ineffective monitoring of driver engagement” had contributed to the crash.

Elluswamy said drivers could “fool the system,” making a Tesla system believe that they were paying attention based on feedback from the steering wheel when they were not. But he said he saw no safety issue with Autopilot if drivers were paying attention.

Reporting by Hyunjoo Jin; Editing by Kevin Krolicki and Lisa Shumaker

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