Colorado Business Litigation Lawyer Blog

In 2008, the North Metro Drug Task Force raided a number of “high-end” homes in the Denver suburbs, seizing millions of dollars in drugs and cash. The houses were used as “grow houses,” where marijuana plants were grown. As a result of the raids, Dan Tang, a politically connected Thornton restaurant owner was arrested, allegedly as the ringleader of and the person who funded the drug operation.

The investigation--known as “operation fortune cookie”--may have been compromised, however, because allegedly someone on the Task Force wrote a letter to Tang, informing him that he was under investigation. The letter was discovered when Tang’s house was raided.

Tang was charged with money laundering, but has not been charged with any drug transactions. On November 20, 2010, he entered a guilty plea to a single charge of money laundering. He will be sentenced on March 31. It is rumored that he will receive probation.

In a significant development, two of the former members of the Task Force have filed suit a “whistleblowers” suit in federal court, claiming that there was “corruption” within the Task Force, and that when they tried to go up the chain of command in their respective departments to report the corruption, they were rebuffed and told not to cooperate in a Drug Enforcement investigation into the source of the leak to Tang. The officers were subsequently removed from the Task Force.

Further complicating the situation, after the raid, Tang allegedly gave $400,000 in cash to the former mayor of the City of Thornton and the same amount to an attorney. Both were to hold the cash for Tang, allegedly because authorities were in the process of tying-up Tang’s bank accounts. A short time later, the money was returned to Tang. Neither of these persons was criminally charged.

I will report further developments in this fiasco. Tang said he knew that growing marijuana was illegal, but that he was dragged into the operation by some of his relatives. Some of these other persons have already been convicted. Tang’s attorney said that Tang had never seen a marijuana plant or smoked marijuana. It is difficult to imagine how these facts somehow mitigate the seriousness of what Tang did. Westword newspaper says that the investigation revealed that Tang’s involvement in the drug operation involved more than just supplying its financing.

Stay tuned.

Lead lawyers in the class actions filed against Toyota in Colorado and across the country are adding claims that the vehicle manufacturer is guilty of racketeering under the Racketeer Influenced and Corrupt Organization Act (RICO).

Plaintiffs in the initial class actions claim that the resale value of their Toyotas has decreased because of problems of unintended acceleration that prompted the recall of millions of Toyota vehicles. If successful, this theory of damages could cost Toyota as much as $2 billion.

The lawsuits allege that Toyota knew of the unintended acceleration problems-- possibly as far back as 2002-- but Toyota nevertheless continued to advertise its vehicles as safe and reliable and concealed the problems from the public. If the RICO claims are proved, damages could approach $10 billion.

Support for the RICO claims is allegedly based upon Toyota documents and the congressional testimony of Toyota officials. Toyota has declined to comment on the litigation to date.

Continue reading "Toyota Guilty of Racketeering?" »

Heidi Hemmet, an investigative reporter for Fox31 KDVR.com reported March 17, 2010, retired workers at Denver Water in Colorado say they buried hazardous waste near several homes and schools 20 years ago. One former worker says he and a number of his co-workers were ordered by the Denver Water manager to bury "cement asbestos, radiation asphalt" and other toxic chemicals at the Foothills Water Treatment Facility near Titan Road and Santa Fe in Douglas County.

The workers claim they "crushed the asbestos piping, spread it out on the land and covered it with dirt. It was never properly capped." The workers also say they suffer from a wide range of illnesses believed to have been caused by exposure to asbestos. They are concerned that digging at the site could be releasing asbestos particles into the air and contaminating the soil and groundwater.

Some homeowners in the area said they thought they were buying homes near open space, and that if they knew about the contamination they never would have purchased property in that area. Workers say a drain flushes ground water from the site past dozens of houses and empties out just below Roxborough Intermediate School.

A statement by Denver Water to Fox31 says in part that "burying of CA (cement-asbestos) pipe may have occurred, but if it did, it was per standard practice at the time." In 2008, when workers first raised the issue with Denver Water, a company spokesperson advised they would conduct a thorough investigation if and when the workers brought forth specific details about alleged activities. The Denver Water Board says it will investigate the allegations. The state health department advises it may be prompted to investigate if it receives enough complaints from the community.

Those wishing to file a claim should call 303-692-3322.

As readers know, I don’t inject politics into my blogs. Nevertheless, I found the following subject a glaring example of a politician’s inexplicable turnabout.

The Huffington Post reports on March 8, 2010, Sarah Palin, in her first speech in Canada since resigning as Alaska’s Governor, admits that her family “used to hustle over the border for health care we received in Canada.” She goes on to comment, “And I think now, isn’t that ironic?”

Readers may recall Sam Stein of The Huffington Post citing, “The irony, one guesses, is that Palin now views Canada’s health care program as revolting: with its government-run administration and ‘death-panel’-like rationing.” Stein notes that the Canadian system was apparently more appealing to the Palins, at some point, than the health care coverage available in their home state of Alaska.

I do not believe that Ms. Palin is the first, nor surely will she be the last politician with the “do as I say, not as I do” philosophy. Numerous examples are available on the internet and in the archives of many newspapers of politicians, both Republican and Democrat, who have exhibited such a philosophy. The point is that such conduct and public statements do not tend to instill public confidence in our politicians.

We are entitled to better.

I wrote on December 7, 2009 that a Florida jury had awarded $300 million to an ex-smoker with emphysema. Cindy Naugle’s case was one of many formerly involved in a class action against Philip Morris.

On February 25, 2010, law360.com reported that the trial judge reduced the judgment to $30.9 million, finding that the original award was “excessive” and “shocking,” and the result of passion on the part of the jury.

In the initial award, the jury found the ex-smoker 10% at fault and a subsidiary of Philip Morris 90% at fault for the emphysema, resulting in a compensatory damages award of more than $56 million and $244 million in punitive damages.

An appeal is expected.

Continue reading "Judge Reduces $300 Million Award in Philip Morris Case" »