Va. court: Hookah lounge exempt from smoking ban

A divided Virginia Court of Appeals has ruled that a Blacksburg hookah lounge is exempt from the state's restaurant smoking ban.

In a 6-3 ruling Tuesday, the court said the She-Sha Cafe and Hookah Lounge is not subject to the ban because it's a retail tobacco store as well as a restaurant. She-Sha says most of its revenue comes from customers' use of hookahs - tall water pipes that are used to smoke flavored tobacco.

The state law regulating indoor public smoking covers restaurants but specifically exempts tobacco retailers. The court's majority cited that exemption in ruling in She-Sha's favor.

The decision reverses a three-judge panel's ruling that She-Sha is covered by the ban because it also serves food.

Anti-whaling activist to testify in US court

A fugitive anti-whaling activist known for confronting Japanese whaling vessels off Antarctica is due to testify about his actions in a U.S. court Wednesday.

Paul Watson, founder of the Oregon-based Sea Shepherd Conservation Society, is expected to take the witness stand in a contempt of court hearing in Seattle.

The Japanese whalers argue that the organization 10 times violated an order barring its vessels from attacking or coming within 500 yards of the whaling ships. They've asked the 9th U.S. Circuit Court of Appeals to impose fines of $100,000 for each violation, though they suggested the court waive those fines as long as the protesters stop confronting their ships.

The case is part of a long-running fight between the protesters and Japan's whaling fleet, which kills up to 1,000 whales a year, as allowed by the International Whaling Commission.

Japan is permitted to hunt the animals as long as they are killed for research and not commercial purposes, but whale meat not used for study is sold as food in Japan. Critics say that's the real reason for the hunts.

For several years, Sea Shepherd operated anti-whaling campaigns in the Southern Ocean. Activists aboard its vessels would hurl acid and smoke bombs at the whalers and drag ropes in the water to damage their propellers.

Spanish court convicts 53 in corruption trial

A Spanish court convicted 53 people Friday in the country's biggest-ever corruption trial, which lasted two years and centered on widespread real estate fraud and bribery in the southern jet-set resort town of Marbella.

The defendants in the trial, which ended last year, included former town hall officials, lawyers and business representatives. The judge took several months to decide on the sentences — 40 other people were acquitted and two accused died while the case was being prepared.

Under a highly complex scheme in the mid-1990s, city funds were widely misappropriated, and public officials and business representatives divvied up under-the table kickbacks for planning permissions and construction of hotels, residential complexes and urban infrastructure. Much of the money was then laundered with the help of lawyers.

Marbella, located on Spain's southern coast, was a magnet for jet set and society figures from across the world during the 1970s and 1980s.

The man who prosecutors said was the mastermind of the fraud, former Marbella urban planning adviser Juan Antonio Roca, got the biggest sentence — 11 years — for money laundering, bribery and fraud. He also was fined 240 million euros ($326 million).

Roca has been in jail since 2006 when he was first arrested as the case broke. Back then, he was considered one of the richest people in Spain with his assets including ranches, fighting bulls, thoroughbred horses, art, expensive cars and boats.

The scheme began when late Atletico Madrid soccer club owner Jesus Gil y Gil was mayor of Marbella between 1991 and 2002. Roca began working for Marbella town hall under Gil and claimed during the trial that he was just following the mayor's orders.

Committee OKs school spending report for WA court

A committee overseeing progress on paying the full cost of basic education for kids in public school voted unanimously Tuesday to approve a draft of its latest progress report to the state Supreme Court.

In its decision on a lawsuit brought by a coalition of school districts, parents and education groups _ known as the McCleary case for the family named in the suit _ the high court ruled in January 2012 that the state is not meeting its constitutional obligation concerning education funding. In the ruling, the Supreme Court ordered the Legislature to make yearly progress reports on its efforts. Those reports are then critiqued by the group that brought the lawsuit, and by the Supreme Court.

This year, the Legislature allocated about $1 billion more for basic education for the current two-year budget cycle. Lawmakers estimate they need to find a total of between $3.5 billion to $4.5 billion more over the coming years to fully pay for basic education.

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Los Angeles jeweler pleads guilty in KPMG case

The owner of a Los Angeles jewelry store pleaded guilty Monday for his role in an insider-trading case involving a former senior partner at accounting firm KPMG.
Bryan Shaw, 52, pleaded guilty to one count of conspiracy and was scheduled to be sentenced Sept. 16 when he faces a maximum of five years in prison.
"In this guilty plea, Mr. Shaw continued his path to fully accepting responsibility for his actions and doing the right thing," said Shaw's attorney Nathan Hochman.
Authorities said Shaw made more than $1 million in illicit profits by trading in advance of company announcements on earnings results or mergers for KPMG LLC clients, including Herbalife Lt., Skechers USA Inc. and Uggs maker Deckers Outdoor Corp.
In exchange, Shaw gave former KPMG accountant Scott London bags filled with cash, along with a $12,000 Rolex watch and jewelry for his wife, among other items, prosecutors said. The Securities and Exchange Commission, which filed civil charges in the case, estimates London received at least $50,000.