Supreme Court of Missouri renounces use of photograph for political purposes

Recently, the Supreme Court of Missouri found out about a campaign mailer of Attorney General Eric Schmitt’s that features a photograph of Schmitt with three of the Court’s judges. The photograph was taken at a public event that the judges attended during the state’s bicentennial celebration last August. The judges attended the event as a celebration of the different branches of state government working together. The photo was taken with neither the Court nor its judges knowledge that it would go one to be distributed in a political context.

None of the judges did – or ever would – consent to their names, titles or likenesses being used in any political context. The Court hopes that Missouri citizens know that no Supreme Court judge would or could endorse a political candidate, and this photo should not be taken as such an endorsement despite the implication of the mailer.

Article V, section 25(f) of the Missouri Constitution prohibits Supreme Court judges from engaging in any political activity. They are reporting the incident as required by their judicial code of conduct and legal ethics. Meanwhile, the Court has asked the attorney general’s office to delete this photograph and any others like it from the office’s public or social media accounts to help prevent any further inappropriate use of such images.

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Judgment Not Final Without Ruling on Attorney Fees

Absent other exceptions, the only circuit court ruling that is subject to appeal is a final judgment, meaning a writing denominated as a judgment that addresses all claims as to all parties. Judgment addressed all claims as to all parties except each party’s claim for attorney fees. “An unresolved claim for attorney’s fees can arrest the finality of a judgment, and defeat appellate jurisdiction.” Appeal, cross-appeal, and claims for attorney fees on appeal dismissed.  

David & Amy Schmidt vs. Dart Bein, LC 
Missouri Court of Appeals, Western District – WD84253, WD84490, and WD84491

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Challenges to Vaccination Exemption Form Unsuccessful

“In Missouri, it is unlawful for any student to attend school unless he or she is properly immunized and can provide satisfactory evidence of such immunization or unless he or she is properly exempted.” Nothing requires the State to provide an exemption to a neutral and generally applicable mandate on religious grounds, but Missouri has elected to do so, through statutes providing that proper exemption is subject to regulations of the Missouri Department of Health and Senior Services. Those regulations require the use of a prescribed form. That regulation is within statutory authority, does not violate the Missouri Religious Freedom Restoration Act, has a rational relationship to the State’s interest in preventing childhood disease, does not bar the expression of religious beliefs, and does not compel complicity in vaccination in violation of any constitutional provision.

For plaintiff to state a claim against defendant, plaintiff must describe a justiciable controversy. A justiciable controversy in an action for declaratory judgment, bringing a pre-enforcement challenge to a provision of law, includes the defendant’s authority to enforce the challenged provision against the rights of the plaintiff. The plaintiffs did not allege that defendant local health authorities had any authority over, or made any attempt to enforce, the use of a form for exemption to vaccination requirements prescribed by the Missouri Department of Health and Senior Services. Judgment on the pleadings, dismissing the petition, affirmed. 

Audrey Baker, et al. vs. Crossroads Academy-Central Street, et al. 

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Todd and Julie Chrisley Found Guilty on Federal Charges

Todd and Julie Chrisley, stars of the reality television show “Chrisley Knows Best,” were recently found guilty in Atlanta on federal charges including bank fraud and tax evasion. The Chrisleys were initially indicted in August 2019 and a new indictment was filed in February 2022. A jury found them guilty of conspiring to defraud community banks out of more than $30 million in fraudulent loans, according to the office of U.S. Attorney Ryan Buchanan in Atlanta. They were also found guilty of conspiring to defraud the IRS and tax evasion, and Julie Chrisley was convicted of wire fraud and obstruction of justice.

Prosecutors alleged that the Chrisleys submitted fake documents to banks when applying for loans. They said Julie Chrisley also submitted a false credit report and fake bank statements when trying to rent a house in California. They used a company they controlled to hide income to keep the IRS from collecting unpaid taxes owed by Todd Chrisley, prosecutors said. After they were found guilty, U.S. District Judge Eleanor Ross allowed the Chrisleys to remain free on bond. But she placed them on location monitoring and home detention, meaning they can only leave the house for certain reasons, including work, medical appointments and court appearances. They also have to alert their probation officers to any spending over $1,000, according to the order. Peter Tarantino, an accountant hired by the couple, was found guilty of conspiracy to defraud the United States and willfully filing false tax returns, the U.S. attorney’s office in Atlanta said. He also remains free on bond.

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CFPB Seeks Ban Against Operator of Student Loan Debt Relief Scam Reboot

The Consumer Financial Protection Bureau (CFPB) has taken action against the owner of a student-loan debt relief company for allegedly withdrawing hundreds of thousands of dollars from student borrowers’ bank accounts, without authorization . The CFPB alleges that Frank Gebase, Jr. controlled a company that took the borrowers’ money after obtaining their names and account information from a previous student-loan debt-relief scammer that the CFPB shut down. The CFPB’s proposed settlement, if entered by the court, would ban Gebase from the debt-relief industry and order him to pay a penalty. On March 30, 2016, the CFPB ordered Student Aid Institute to shut down its debt-relief operations and rescind all of its consumer agreements. Gebase had leased office space to Student Aid Institute, and he was a longtime associate of its principal. In 2016, Gebase founded Processingstudentloans in San Diego, and he was the founder, sole owner, CEO, and sole corporate officer.

The CFPB alleges that from approximately May 20, 2016 to April 5, 2017, Processingstudentloans was a non-bank provider of student-loan debt-relief services. As alleged in the complaint, without authorization, Processingstudentloans collected recurring fees from customers, typically $39 per month, stealing hundreds of thousands of dollars in total fees from hundreds of student loan borrowers. In addition to controlling Processingstudentloans and facilitating the debits, Gebase was aware or should have known that the debits were unauthorized and unlawful. By April 2017, under this scheme, Gebase’s company had unlawfully debited more than $240,000 from hundreds of student borrowers’ accounts.

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Ex-San Antonio Lawyer Accused of Stealing Millions Has ‘Medically Related Issues,’ His Attorney Says

Ex-San Antonio attorney Christopher Pettit has been sued for allegedly absconding with his former law clients’ money. He’s landed in bankruptcy and he’s surrendered his law license. Pettit is also dealing with “medically related issues,” his attorney disclosed during the first hearing in Pettit’s massive bankruptcy case. Bankruptcy lawyer Michael Colvard declined to reveal his client’s medical issues but told a San Antonio judge that Pettit was referred to another lawyer who works closely with the Texas Lawyers Assistance Program. The program helps attorneys who have “substance use and other mental health issues,” according to its website.

Pettit, who specialized in estate planning and personal-injury law, has been sued at least 14 times by former clients who say he stole millions of dollars from them. He has issued general denials to the allegations in some of the cases but has entered into judgments with some plaintiffs — agreeing to pay them actual and punitive damages. Pettit and his law firm filed for chapter 11 protection June 1, essentially putting a hold on the pending litigation. He listed $27.8 million in assets and $115.2 million in liabilities in his personal bankruptcy, making it one of the largest ever filed in San Antonio. He has given up his law license in lieu of disciplinary action by the State Bar of Texas. Bankruptcy Judge Craig Gargotta agreed to the appointment of a chapter 11 trustee, who will essentially act as a CEO or manager to shepherd the bankruptcy cases and appoint professionals, including forensic accountants to track down money and other assets for the benefit of Pettit’s former clients and other creditors.

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CFPB Report Highlights Experiences of Military Families with Medical Billing, Credit Reporting, and Debt Collection

The Consumer Financial Protection Bureau (CFPB) recently released its annual report on the top financial concerns facing servicemembers, veterans, and military families, based on the complaints they submitted to the CFPB. Servicemembers told the CFPB about billing inaccuracies and that debt collectors used aggressive tactics to recover allegedly unpaid medical bills. Servicemembers also reported failures by credit reporting companies in helping to resolve inaccuracies and other credit reporting issues.

“Errors on credit reports can jeopardize servicemembers’ financial readiness, and ultimately, their ability to protect our nation,” said CFPB Director Rohit Chopra. “No servicemember, veteran, or military family should be subject to credit reporting rumors and innuendo, nor should they feel coerced to pay a bill they do not owe.” Servicemembers, veterans, and military families have now submitted more than 250,000 consumer complaints since the CFPB began collecting complaints in 2011. In 2021, they submitted more than 42,000 complaints to the CFPB. The most common types of complaints — more than 60% — were about credit reporting and debt collection.

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Bitcoin Plunges as Major Crypto Lender Halts Operations

The price of bitcoin and other cryptocurrencies plummeted Monday after a major cryptocurrency lender effectively failed and halted all withdrawals from its platform, citing “extreme market conditions.” It’s the latest high-profile collapse of a pillar of the cryptocurrency industry. These meltdowns have erased tens of billions of dollars of investors’ assets and spurred urgent calls to regulate the freewheeling industry. Bitcoin was trading at roughly $22,400 late Monday, down more than 16% in the past day. Ethereum, another widely followed cryptocurrency, was down roughly 17%.

Investors have been selling riskier assets such as digital currencies and technology stocks as the Federal Reserve raises interest rates to combat high inflation. On Sunday, the cryptocurrency lending platform Celsius Network announced that it was pausing all withdrawals and transfers between accounts in order to “honor, over time, withdrawal obligations.” Celsius, with roughly 1.7 million customers and more than $10 billion in assets, gave no indication in its announcement when it would allow users to access their funds.

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Evidence Obtained by Deception Okay

The delay from charges to trial did not reach the threshold of a presumptive violation of the right to a speedy trial, so no further analysis of other factors was necessary, and circuit court did not err in denying defendant’s motion to dismiss. “The State has the burden of production and persuasion to show by a preponderance of the evidence that a defendant’s motion to suppress should be overruled at trial.” A confession is involuntary and subject to exclusion when obtained by coercion, determined by a totality of circumstances, either physical or psychological.

Physical factors include length of detention, duration of questioning, and deprivation of food or sleep. Psychological factors include age, experience, intelligence, gender, degree of education, infirmity, unusual susceptibility to coercion, advisement of rights, demeanor of interrogators, and restraints on defendant. Deception does not render defendant’s confession involuntary “unless the deception offends societal notions of fairness or is likely to produce an untrustworthy confession.” Promises of leniency render a confession involuntary but defendant’s hope for leniency, or divine forgiveness, does not. Circuit court did not err in denying defendant’s motion to suppress. 

STATE OF MISSOURI, Respondent vs. ERIC A. HINES, Appellant
Missouri Court of Appeals, Southern District – SD37164

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Things organizations should know about applying for tax-exempt status

To be tax-exempt under Section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for any of these purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals.

Organizations that want to apply for recognition of tax-exempt status under Section 501(c)(3) use a Form 1023-series application.

Here are some key things to know about this process.

• The application process on IRS.gov includes a step-by-step guide explaining how to apply for tax-exempt status.

• Form 1023-series applications for recognition of exemption must be submitted electronically online at Pay.gov. The application must be complete and include the user fee.

• Some types of organizations don’t need to apply for Section 501(c)(3) status to be tax-exempt. These include churches and their integrated auxiliaries, and public charities with annual gross receipts normally no more than $5,000.

• An employer identification number is a nine-digit number the IRS assigns for tax filing and reporting purposes. Every tax-exempt organization should have an EIN, even if they don’t have any employees. An organization must include their EIN on the application. Organizations can apply online to get an EIN.

• The effective date of an organization’s tax-exempt status depends on their approved Form 1023. If they submit this form within 27 months after the month they legally formed, the effective date of their organization’s exempt status is the legal date of its formation. If an organization doesn’t submit this form within those 27 months, the effective date of its exempt status is the date it files Form 1023.

• Once the IRS determines an organization qualifies for tax-exempt status under the law, it will also be classified as a private foundation unless the organization meets the requirements to be treated as a public charity.

Courtesy of the Internal Revenue Service

• A charitable organization must make certain documents available to the public. These include its approved application for recognition of exemption with all supporting documents and its last three annual information returns. See Publication 557, Tax Exempt Status For Your Organization for additional information on public inspection requirements.

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