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Judiciary Reprimands Kansas Federal Judge for Sexually Harassing Court Employees

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A federal judge in Kansas was publicly reprimanded Monday for misconduct that included sexually harassing court employees and other “inappropriate behavior,” Law.com reported. The Judicial Council of the U.S. Court of Appeals for the Tenth Circuit, chaired by Circuit Chief Judge Timothy Tymkovich, held that U.S. District Judge Carlos Murguia sexually harassed employees, engaged in an extramarital relationship with a felon who was then on probation, and was “habitually” tardy for court engagements. The order said that evidence and facts associated with the misconduct allegations “are insufficient” to recommend that Judge Murguia be impeached. An order signed by Judge Tymkovich said that the council reached its conclusions after an extensive investigation that included interviews with 23 people and a hearing at which Murguia testified under oath. Judge Murguia admitted the misconduct allegations, apologized for his behavior and promised he would not engage in any inappropriate conduct in the future. He also offered to take any recommended voluntary corrective actions.

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Rep. Collins Resigns House Seat Ahead of Guilty Plea to Insider-Trading Charges

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Rep. Chris Collins (R-N.Y.) is resigning from Congress and expected to plead guilty to insider-trading charges today, following allegations last year that Collins schemed with his son to avoid significant losses on a biotechnology investment, the Washington Post reported. Collins allegedly tipped off his son to confidential information about an Australian biotechnology company, Innate Immunotherapeutics, that he learned as a member of its board. Collins and several others used the information to avoid more than $700,000 in losses, according to prosecutors. He is scheduled to change his plea today in a Manhattan federal court. Collins’s son, Cameron, and another family member are scheduled to change their pleas on Thursday.

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Forever 21 Files for Bankruptcy

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Fashion retailer Forever 21 Inc. filed for bankruptcy on Sunday, as it joined a growing list of brick-and-mortar players who have succumbed to the onslaught of e-commerce companies such as Amazon.com Inc., Reuters reported. “We have requested approval to close up to 178 stores across the U.S. The decisions as to which domestic stores will be closing are ongoing, pending the outcome of continued conversations with landlords,” the company said in an email statement. Founded in 1984, the retailer said that it has 815 stores in 57 countries. The company plans to close most of its stores in Asia and Europe. However, it does not expect to exit any major markets in the United States. The company lists both assets and liabilities in the range of $1 billion to $10 billion, according to the court filing in the U.S. Bankruptcy Court for the District of Delaware. The retailer said it received $275 million in financing from its existing lenders with JPMorgan Chase Bank, N.A. as agent, and $75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds. Read more

Occupancy issues are at the heart of many significant retail cases, as detailed in the ABI publication Retail and Office Bankruptcy: Landlord/Tenant Rights, available at the ABI Store. 

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