NATION IN BRIEF: Madoff case costs top $28 million

From News Services

Tuesday, December 30, 2008

A trustee presiding over the liquidation of Bernard Madoff’s investment firm says he plans to spend $28.1 million on employee salaries and other costs. Court papers filed in federal bankruptcy court in Manhattan show that Bank of New York Mellon Corp. has agreed to transfer the money to Trustee Irving Picard. The court papers, which say the trustee is in “urgent need of funding for immediate costs of administration of the debtor’s estate,” show $883,000 already has been transferred to the trustee to pay salaries and health benefits. A hearing on the matter was set for today, and a bankruptcy judge still must approve the deal.

Blagojevich tapes may be aired

U.S. Attorney Patrick Fitzgerald wants lawmakers to hear what Illinois Gov. Rod Blagojevich says on wiretapped phone calls. Fitzgerald filed paperwork Monday to release some of the conversations to an Illinois House panel considering impeachment proceedings. Meanwhile, a lawyer for Blagojevich argued the wiretaps may have caught the governor making some “unfortunate” remarks, but they don’t show him doing anything that justifies impeachment. Attorney Ed Genson told the state House committee there’s no evidence the governor took any action to auction off a U.S. Senate seat or pressure the Chicago Tribune to fire its editorial writers. Blagojevich was arrested Dec. 9 on federal corruption charges.

Marine pilot dies in warplane crash

A Marine AV-8B Harrier jet crashed near a base in eastern North Carolina on Monday, killing the pilot. Marine Corps Air Station Cherry Point said the single-seat plane crashed in woods near one of the base’s two runways. The crash did not affect any of the few homes in the area, the base said. WNCT-TV in Greenville reported that a hunter nearby said the jet was making an odd noise and belching smoke and flames before it crashed. Monday’s crash comes in the same month that another Marine jet crashed in a San Diego neighborhood near its base, killing four people on the ground.

Judge won’t group trailer lawsuits

A judge in New Orleans on Monday refused to grant class-action status to the lawsuits of hundreds of Gulf Coast hurricane victims who claim they were exposed to potentially toxic formaldehyde fumes while living in emergency trailers. U.S. District Judge Kurt Engelhardt said the lawsuits against the federal government and trailer manufacturers can’t be handled as a collective class-action claim because each plaintiff’s claim is unique and must be examined individually. The trailers and mobile homes were brought in to use as emergency shelters after two hurricanes, Katrina and Rita, struck the Gulf Coast in 2005.

Palin’s daughter delivers a son

The 18-year-old daughter of former Republican vice presidential candidate Sarah Palin has given birth in Alaska to a son. People magazine said Bristol Palin gave birth to Tripp Easton Mitchell Johnston on Sunday. He weighed 7 pounds, 4 ounces. A relative said the baby was fine and Bristol was “doing well.” The father is Levi Johnston, a former hockey player at Alaska’s Wasilla High School who has said he and Bristol plan to marry. Palin created a stir in September by announcing the pregnancy as she prepared to accept her nomination at the Republican National Convention.


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