Business

Prosecutors in Alec Baldwin ‘Rust’ shooting case are getting heat over apparent missteps

Published

2 weeks ago

March 7, 2023

107186866-16751992732023-01-31t133941z_689627065_rc2p1z96djfx_rtrmadp_0_film-rust-shooting.jpeg

Actor Alec Baldwin departs his home, as he will be charged with involuntary manslaughter for the fatal shooting of cinematographer Halyna Hutchins on the set of the movie “Rust”, in New York, January 31, 2023.

David Dee Delgado | Reuters

It’s been just over a month since New Mexico authorities charged Alec Baldwin with manslaughter for the fatal shooting of a crew member on the set of the film “Rust,” and already the prosecution has come under harsh criticism and scrutiny.

First, there’s the question of whether the case’s main prosecutor is even eligible to try the case. The state’s constitution prohibits a member of one branch of government from exercising the power of another branch. Andrea Reeb, the special prosecutor, also serves as a Republican state legislator. Baldwin’s attorneys filed a motion on Feb. 7 to disqualify Reeb from the case.

Reeb and New Mexico’s First Judicial District Attorney’s office rejected that disqualification motion, calling the defense’s argument a “misconception” and saying it is “based on a novel theory that has no support in New Mexico statutes or case law,” according to court documents filed Monday.

“Accepting Defendant’s theory would require the Court to create new law, which would have state-wide implications, based on nothing more than creative, legally unsupported argument,” prosecutors wrote in the court filing.

Rust set to begin filming again after settlement

Legal experts have also criticized Reeb’s overcharging of Baldwin based on a law that did not apply at the time of the fatal shooting. She backed down and downgraded the charges, which could result in a shorter jail sentence for Baldwin, if he’s convicted.

Lawyers also found incendiary press statements and media appearances by the district attorney’s office odd since prosecutors are typically advised to reserve their comments for the courtroom.

“From the outset, there have been some unusual facts surrounding the DA’s prosecution,” said John Day, a Santa Fe-based attorney who has practiced law in New Mexico since 1996.

The charges stem from the October 2021 shooting death of cinematographer Halyna Hutchins during the filming of independent film “Rust.” Baldwin, who also starred in “The Departed” and “Beetlejuice,” held the gun, which was loaded with live ammunition.

Baldwin, who is also a producer of “Rust,” and the movie’s armorer at the time, Hannah Gutierrez-Reed, were both charged in January with two different types of involuntary manslaughter by New Mexico First Judicial District Attorney Mary Carmack-Altwies. A jury, by law, can only convict them of one of those counts, each of which has a maximum possible sentence of 18 months in prison.

David Halls, the film’s first assistant director, signed an agreement to plead to the misdemeanor charge of negligent use of a deadly weapon and receive a suspended sentence and six months of probation.

Baldwin and Gutierrez-Reed are set to appear virtually for a status hearing on Thursday.

The special prosecutor

Carmack-Altwies appointed Reeb to be special prosecutor in August. Reeb previously was the Ninth Judicial District Attorney, but retired a year ago, shortly after launching her legislative campaign. She won the race in November but stayed on the “Rust” case.

Reeb’s dual role as legislator and prosecutor raised eyebrows in the local legal community. George Heidke, a former attorney in the First Judicial District Attorney’s Office, told CNBC this was the first time in his 25 years of practicing law in New Mexico he has seen a sitting legislator simultaneously serve as a prosecutor.

Baldwin’s lawyers argue Reeb should be removed from the case. “A prosecutor who also serves as a legislator could face pressure to make prosecutorial decisions that serve her legislative interests,” Baldwin’s lawyers wrote in a motion. Baldwin is an outspoken supporter of Democratic and progressive issues, making him a target of Reeb’s fellow Republicans.

The DA’s office responded to this argument Monday, saying that such claims are “purely hypothetical and demonstrate the limb Defendant must climb out on in order to allege some sort of ‘encroachment or interference.’”

There are other complications, as well.

An aerial view of the film set on Bonanza Creek Ranch where Hollywood actor Alec Baldwin fatally shot cinematographer Halyna Hutchins and wounded a director when he discharged a prop gun on the movie set of the film “Rust” in Santa Fe, New Mexico, U.S., in this frame grab taken from October 21, 2021 television footage. Footage taken October 21, 2021.

KOB TV NEWS | Reuters

“I think everyone agrees that she’s inappropriately placed in two different branches of government at the same time,” Lisa Torraco, the New Mexico attorney representing Halls, told CNBC. “This is a good reason why: I donate to her campaign as a legislator and now she’s the special prosecutor on my case.”

In September, Torraco donated $250 to Reeb’s campaign, assuming that if Reeb won the legislative race, she would automatically recuse herself from the “Rust” case. That didn’t happen.

“If I knew, I probably wouldn’t have given her money,” Torraco said.

Along with Torraco, Carmack-Altwies, a registered Democrat, and Dennis Maez, the private investigator for Halls, also contributed to Reeb’s campaign.

Torraco said there is no connection between her small campaign donation and Halls’ plea deal. But, according to Santa Fe lawyer Day, “It’s the appearance that’s important.”

“If you’re donating money to legislators, you’ve got to understand that people are going to have access to that and going to be wondering, ‘What’s going on here?’” he said. “This is exactly why you don’t want to …have a legislator who’s also acting as a prosecutor.”

Heather Brewer, the DA’s spokesperson hired specifically for the “Rust” case, confirmed Torraco’s donation. She added that Reeb’s “integrity could never be compromised by a $250 contribution – or a contribution of any amount. Her only focus is serving the public honorably, and she will continue to do so in pursuing justice for Halyna Hutchins.”

Gutierrez-Reed’s lawyers co-signed Baldwin’s motion to disqualify Reeb. The DA’s office declined to comment on the motion before filing its response.

‘A first-year law student mistake’

Reeb’s role in the legislature aside, local lawyers found it strange that Carmack-Altwies appointed a special prosecutor in the first place. Historically, if the DA’s office does not have the resources to handle a case, it has called on the state attorney general for help.

Instead, Carmack-Altwies requested $635,000 from New Mexico’s Board of Finance, claiming that her office needed an additional attorney, media contact person and other personnel specifically dedicated to the “Rust” case, according to a letter she sent to the finance board on Aug. 30.

When a member of the finance board asked Carmack-Altwies whether she had approached the attorney general for assistance, she said that she had not “specifically reached out about this case in particular,” according to minutes of a hearing on her funding request. Reeb was the better option, said Carmack-Altwies, because she has “25+ years of experience, and this will be her only case for the next 12 to 18 months, which is by design.”

The state granted the DA’s office $317,750, about half of the original request.

Torraco said the charges that Baldwin and Gutierrez-Reed face are among the lowest-level felonies in New Mexico.

“And they’re asking for hundreds of thousands of dollars from the legislature to prosecute it? It’s just absurd,” said Torraco. “They prosecute fourth-degree felonies every single day … why all the hype?”

The legal risk that Baldwin faced was much higher until last month, when his lawyers challenged another decision by the prosecution.

When Reeb first filed criminal charges, she included a so-called firearm enhancement charge, which carries a potential five-year prison sentence. Baldwin’s lawyers filed a motion on Feb. 10 to eliminate that enhancement since it became a law seven months after the fatal shooting occurred, violating the legal concept known as “ex post facto,” or after the fact.

It was a “first-year law student mistake,” said Day. “If you’re a prosecutor, it’s your obligation to make sure you’re charging the correct law. And it’s embarrassing for that to happen because it shows they’re not paying attention to detail.”

Reeb, in a Feb. 12 email to Baldwin’s lawyers, pointed to her legislative duties after they raised their objection to the enhancement. She wrote that she had been “busy in session all week,” and that she now was only able to take a look at the specifics of the firearm enhancement more closely.

Reeb soon after admitted she had incorrectly applied the enhancement and dropped it from the case.

Media circus

The case has received significant media attention, which has persisted due to Baldwin and the prosecutors’ press communication. Baldwin gave an interview to ABC’s George Stephanopoulos in December 2021. Carmack-Altwies and Reeb have in turn made their own appearances on CNN and Fox News.

Beyond that, Brewer, the spokesperson specifically hired for the “Rust” case, has made several heated statements about Baldwin and his attorneys on behalf of the DA’s office.

Cinematographer Halyna Hutchins is seen in this undated handout photo received by Reuters on October 23, 2021.

Swen Studios | via Reuters

After the Feb. 10 motion to reduce the firearm enhancement, Brewer told CNBC that the DA’s office is dedicated to holding everyone, “even celebrities with fancy attorneys,” accountable under the law. Nearly two weeks later, when Reeb dropped the enhancement, Brewer said in a statement that the withdrawal of the charge was “in order to avoid further litigious distractions by Mr. Baldwin and his attorneys.”

“The prosecution’s priority is securing justice, not securing billable hours for big-city attorneys,” Brewer added.

Brewer also has suggested that Baldwin’s attempts to remove Reeb from the case are designed to take the focus off Baldwin’s alleged criminal conduct. “Mr. Baldwin and his attorneys can use whatever tactics they want to distract from the fact that Halyna Hutchins died because of gross negligence and a reckless disregard for safety on the ‘Rust’ film set,” Brewer said in a public statement.

The American Bar Association advises against attorneys making public statements that could prejudice a jury in a criminal case, particularly as it relates to the “character” or “reputation” of defendants.

“Prosecutors have to walk a very fine line between what you can say publicly,” said Day, the local lawyer. “You don’t want to be accused of poisoning the jury pool ahead of time. And that certainly could be an issue here.”

Source link

Up Next

Best Buy will set up in-home hospital care through a new deal with Atrium Health

Don't Miss

Paramount Global considers selling majority stake of BET Media Group, sources say

Click to comment

You must be logged in to post a comment Login

You must log in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business

Virgin Orbit scrambles to avoid bankruptcy as deal talks continue

Published

6 hours ago

March 20, 2023

ironity

Virgin Orbit’s LauncherOne rocket on display in Times Square, New York.

CNBC | Michael Sheetz

Virgin Orbit is scrambling to secure a funding lifeline and avoid bankruptcy, which could come as early as this week without a deal, CNBC has learned.

The rocket builder paused operations last week and furloughed most of the company, as CNBC first reported, while it sought new investment or a potential buyout.

Virgin Orbit CEO Dan Hart and other senior leadership held daily talks with interested parties through the weekend, according to people familiar with the matter, who asked to remain anonymous in order to discuss internal matters.

During an all-hands meeting last week, Hart told employees that the company hoped to give an update on the situation as soon as Wednesday.

Meanwhile top talent is already hitting the job market: Many of Virgin Orbit’s approximately 750 employees are looking elsewhere for openings. That talent ranges from executives to senior and lead engineers to program managers who are actively searching for and finding new jobs, according to a CNBC analysis.

While a door remains open to avoiding bankruptcy, people close to the situation describe a sense of panic as the company struggles to get a deal done. One possible buyer balked at a proposed sale price of near $200 million, one person told CNBC — a price just below the company’s market value as of Friday’s close.

At the same time, Virgin Orbit is bracing for a potential bankruptcy filing as soon as this week, one person said. Virgin Orbit hired a pair of firms — Alvarez & Marsal and Ducera Partners — to draw up restructuring plans in the event of insolvency, CNBC has learned. Sky News first reported the firms had been hired.

A Virgin Orbit spokesperson declined to comment.

Shares of Virgin Orbit have continued to fall since its pause in operations, with its stock slipping to near 50 cents a share in Monday trading.

The company developed a system for sending satellites into space that uses a modified 747 jet, which drops a rocket from under the aircraft’s wing midflight. Its last mission suffered a midflight failure, and its rocket failed to reach orbit.

Richard Branson’s Virgin Orbit, with a rocket under the wing of a modified Boeing 747 jetliner, takes off for a key drop test of its high-altitude launch system for satellites from Mojave, California, July 10, 2019.

Mike Blake | Reuters

The company was spun out of Richard Branson‘s Virgin Galactic in 2017 and counts the billionaire as its largest stakeholder, with 75% ownership. Mubadala, the Emirati sovereign wealth fund, holds the second-largest stake in Virgin Orbit, at 18%.

But the company has struggled to sustain its cash coffers. It went public in December 2021 near the tail end of the SPAC craze and was unable to tap the markets for fundraising in the same way as its sister company Virgin Galactic, which built its cash reserves to more than $1 billion through stock and debt sales.

Virgin Orbit aimed to raise $483 million through its SPAC process, but significant redemptions meant it raised less than half of that, bringing in $228 million in gross proceeds. The funds it did manage to raise came from Boeing and AE Industrial Partners, among others.

Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

Virgin Orbit has been looking for a financial lifeline for several months. Branson was not willing to fund the company further, people familiar said, and instead shifted strategy to salvaging value.

Since the fourth quarter, Virgin Orbit has raised $60 million in debt from the investment arm of Branson’s Virgin Group — giving it first priority over Virgin Orbit’s assets. Around the same time, Virgin Orbit hired Goldman Sachs and Bank of America to explore other financial opportunities, ranging from a minority-stake investment to a full sale.

George Mattson, who sits on Virgin Orbit’s board of directors, has been heavily involved in the process of selling the company, people told CNBC. Mattson spent nearly two decades as a banker at Goldman Sachs, before co-founding the SPAC called NextGen, which took Virgin Orbit public at a $3.7 billion valuation.

Virgin Orbit disclosed in a filing Monday that it had approved a severance plan for top executives, if they are terminated “following a change in control” of the company. The plan covers Hart, as well as Chief Strategy Officer Jim Simpson and Chief Operating Officer Tony Gingiss, and includes paying out base compensation and annual bonuses. In the event of termination, Hart would receive a cash severance equal to 200% of his base salary, which is $511,008, according to FactSet.

Source link

Business

Foot Locker touts ‘renewed’ Nike relationship as it reports slide in holiday-quarter profit

Published

6 hours ago

March 20, 2023

ironity

Foot Locker CEO Mary Dillon on Monday touted a “renewed” and revitalized relationship with Nike, including an emphasis on what she called “sneaker culture.”

Shares of Foot Locker fell more than 2%. The sneaker and athletic-apparel retailer also reported quarterly earnings Monday morning.

During the holiday quarter, which ended Jan. 28, Foot Locker posted just under $2.34 billion in sales, slightly lower than a year earlier. Its profit for the period came in at $19 million, or 20 cents a share, compared with $103 million, or $1.02 a share, a year earlier. Excluding one-time items, earnings per share were 97 cents, down from $1.46.

For the current fiscal year, which will include an extra week, Foot Locker expects sales and comparable sales to be down 3.5% to 5.5%, with adjusted earnings per share of $3.35 to $3.65.

The retailer plans to close about 400 under-performing mall stores but said it will open around 300 new format stores.

Since Dillon took over as chief executive of Foot Locker in September, she’s spent a “great deal of time with Nike revitalizing our partnership” after Nike moved away from wholesale channels to focus on building out direct to consumer sales.

“Of course, Nike is our largest brand partner and the leader in the industry. From day one I’ve been welcomed to the industry by John and Heidi and their team,” Dillon said of Nike CEO John Donahoe and Heidi O’Neill, its president of consumer and marketplace.

Dillon, the former chief executive of Ulta, said Foot Locker and Nike have “re-established joint planning, as well as data and insight sharing.”

“The fruits of our renewed commitment to one another will begin to show up in holiday this year as we build increasing momentum to 2024 and the 50th anniversary of Foot Locker,” Dillon said.

For the past several years, Nike has been working to grow its direct to consumer business and with it, cut partnerships with numerous wholesale accounts so it could grow its e-commerce channels and open new stores.

However, like other retailers, Nike was stuck with a glut of inventory brought on by pandemic-related supply chain challenges over the last few quarters and relied on those wholesale partners to move that product out.

During its fiscal-second quarter that ended Nov. 30, Nike’s wholesale revenue was up 19% for the quarter after it’d been effectively flat over the previous several quarters.

“We’ve been starving the wholesale channel for six to eight quarters because of supply constraints and so as we had supply constraints, we were prioritizing adequate inventory levels within NIKE Direct and so we’re seeing strong demand as we go back into our wholesale partners with available supply,” Matthew Friend, Nike’s chief financial officer, explained to investors during an earnings call in December.

In January, when asked about Nike’s direct to consumer plans during an interview with CNBC, Donahoe spoke about the importance of an omnichannel model.

“Our strategic wholesale partners, partners like Dick’s Sporting Goods or Foot Locker or JD, are very, very important because consumers want to be able to try on products, they want to be able to touch and feel,” Donahoe said. “And so we’ve invested in strengthening those strategic relationships.”

While Nike was glad to get rid of that extra inventory during its last quarter, Foot Locker is now dealing with its own glut of shoes and apparel it’s struggling to get off the shelves. At the end of its fiscal fourth-quarter, inventories stood at $1.6 billion, about 30% higher than the year ago period, although down slightly from the fiscal third quarter.

As part of its new strategy under Dillon, Foot Locker is revisiting its store footprint in a bid to drive revenue and acquire new customers. While it plans to close about 400 underperforming mall stores in North America, it plans to bolster its new format stores from about 120 to more than 400 by 2026.

The new formats include Foot Locker’s community stores, power stores and its house of play concept.

Source link

Business

New Starbucks CEO Laxman Narasimhan takes over nearly two weeks earlier than expected

Published

10 hours ago

March 20, 2023

ironity

Starbucks CEO Howard Schultz, left, with incoming CEO Laxman Narasimhan, Sept. 7, 2022.

Source: CNBC

Starbucks on Monday said Laxman Narasimhan has officially become CEO, nearly two weeks earlier than expected.

He’ll lead the coffee giant’s annual shareholder meeting Thursday, marking his first public address as its chief executive.

After being named incoming CEO in September, Narasimhan has spent months learning about Starbucks’ business, including training as a barista. The official transition was expected to happen April 1.

Before his appointment, he was chief executive of Reckitt, which owns brands like Lysol, Durex and Mucinex. He also previously worked at PepsiCo and McKinsey.

Narasimhan takes the reins from Howard Schultz, who is ending his third stint in the top job.

“Today, I am entrusting you all with Starbucks – something that holds a place in my heart second only to that of my beloved family,” Schultz wrote in a letter to company leadership that was viewed by CNBC.

Schultz returned nearly a year ago after former CEO Kevin Johnson surprised investors by announcing his retirement.

This time around, Schultz suspended the company’s buyback program for months, pushed back against baristas’ union plans and announced a new strategy to keep up with how the company’s business has transformed.

Since Schultz returned April 4, Starbucks stock has risen nearly 8%, bringing its market value to $113 billion. The S&P 500, meanwhile, has fallen more than 13% over that time.

Despite stepping down earlier than anticipated, Schultz is still expected to testify in front of a Senate panel on March 29 about the company’s alleged union-busting activity.

In September, Schultz told CNBC that he’s never planning on coming back as Starbucks’ chief executive again.

Investors have been putting pressure on the company to make sure that never happens. On Thursday, shareholders will vote on a proposal from SOC Investment Group, which represents pension funds sponsored by unions, that would require the Starbucks board to start succession planning at least three years in advance.

Source link