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Stevens guilty of all charges

WASHINGTON, Oct. 27 (UPI) -- U.S. Sen. Ted Stevens, R-Alaska, was found guilty Monday of all seven federal felony charges related to unreported gifts and renovation work done on his home.

Stevens didn't talk to reporters before leaving U.S. District Court in Washington but his office issued a statement in which he maintained his innocence.

"I am obviously disappointed in the verdict but not surprised given the repeated instances of prosecutorial misconduct in this case," Stevens said. "I will fight this unjust verdict with every ounce of energy I have. I am innocent. This verdict is the result of the unconscionable manner in which the Justice Department lawyers conducted this trial. I ask that Alaskans and my Senate colleagues stand with me as I pursue my rights. I remain a candidate for the U.S. Senate."

Stevens, 84, the longest-serving Senate Republican in history, was convicted of failing to report more than $250,000 in gifts from friends, including Bill Allen, the former head of Veco Corp.

Stevens was expressionless and held his stomach as the verdict was read, The Hill reported.

Judge Emmet G. Sullivan deferred sentencing until after Feb. 23. Stevens faces up to five years in prison on each count.

Stevens and his lawyers had argued Allen gave Stevens gifts he didn't want and was unaware of, and that he believed the $160,000 Stevens gave to another contractor covered the costs for all of the renovations on his home in Alaska.

Stevens, who resigned his leadership positions in the Senate when he was indicted in July, is up for re-election Nov. 4 against Democratic opponent Mark Begich, the mayor of Anchorage.

Neo-Nazis arrested in Obama plot

WASHINGTON, Oct. 27 (UPI) -- Federal agents said Monday a neo-Nazi plot to kill U.S. Democratic presidential candidate Barack Obama has been foiled.

The U.S. attorney's office in Tennessee said in a statement that the Bureau of Alcohol, Tobacco and Firearms was holding two suspects who allegedly also planned to shoot and kill 88 people and to decapitate 14 blacks, ABC News reported.

The suspects were identified in a complaint in Jackson, Tenn., as Daniel Cowart and Paul Schlesselman. They were arrested Oct. 22 in Tennessee by the Crockett County Sheriff's Department on a tip from the Haywood County Sheriff's Department.

The U.S. attorney's office said the pair allegedly planned to rob a gun shop, commit the killings at an unnamed "predominantly African-American school" and then cap it all off by killing Obama.

Among the weapons found in the men's possession were sawed-off shotguns and an FASI .308 rifle.

ABC said the numbers 88 and 14 have significance in the Nazi movement -- 88 standing for Heil Hitler, a reference to World War II German Nazi leader Adolf Hitler, and 14 representing the number of words in "We must secure the existence of our people and a future for white children."

"The allegations set forth in this criminal complaint are serious and will be treated as such," said Lawrence J. Laurenzi, acting U.S. Attorney for the Western District of Tennessee.

Federal authorities allege that about one month ago, Cowart and Schlesselman met on the Internet through a mutual friend. Both allegedly claim to hold very strong beliefs about "White Power" and "Skinhead" philosophy, and discussed going on a "killing spree," officials said.

Prosecutors allege Cowart traveled from Tennessee to Arkansas Oct. 20 to pick up Schlesselman so they could carry out their plan. The complaint alleges the defendants said they would be willing to die during this attempt.

"The U.S. Secret Service takes all threats against presidential candidates seriously and is actively investigating the allegations," Richard Harlow, special agent in charge of the Secret Service-Memphis Field Office, said.

James Cavanaugh, special agent in charge of ATF, gave credit to the two county sheriff's departments, saying "it is critical that the alleged plot was interrupted."

Cowart and Schlesselman had their initial appearances in federal court Monday and are to be back in court for a detention hearing Thursday in Memphis.

Schwarzenegger calls special session

SACRAMENTO, Oct. 27 (UPI) -- Gov. Arnold Schwarzenegger Monday said he will call the California State Assembly into emergency session to address a growing fiscal crisis.

Schwarzenegger said the Nov. 5 session -- one day after Election Day -- would deal with a deficit that will be "much more" than the $3 billion state analysts have projected, the Los Angeles Times reported Monday.

The Assembly passed a budget a month ago before adjourning until December. That's when the incoming Legislature is schedule to begin its term.

However, Schwarzenegger said revenue is dropping at such a rate that he and legislative leaders decided a lame-duck session would be necessary.

"The situation is far more severe that it was when we were negotiating the budget" he said.

The session will also take up proposals to address the growing foreclosure crisis and an economic stimulus package intended to promote job creation, the newspaper said.

Schwarzenegger and top lawmakers will create a commission to consider an overhaul of the California tax code.

Police confirm body is Hudson's nephew

CHICAGO, Oct. 27 (UPI) -- Police confirmed Monday the body of a child found in a vehicle in Chicago is that of 7-year-old Julian King, the nephew of actress-singer Jennifer Hudson.

The Chicago Tribune quoted police Superintendent Jody Weis as saying the child's identity was confirmed by the Cook County medical examiner's office.

Hudson and three other relatives went to the office and identified Julian's remains, which were discovered in the back seat of a parked Chevrolet Suburban by a passerby on Chicago's West Side early Monday.

An autopsy is scheduled for Tuesday.

The boy hadn't been seen since before his grandmother Darnell Donerson and uncle Jason Hudson were shot to death last Friday in the Hudson family home on the South Side of Chicago. The sports utility vehicle in which Julian was found was registered to Jason Hudson.

Law enforcement sources told the Tribune the boy was shot multiple times in the back of the vehicle. The SUV was found just blocks from where police picked up William Balfour, 27, the estranged husband of Jennifer and Jason Hudson's sister, Julia.

While Balfour has not been charged in the killings, he was being held by police on a parole violation.

The Tribune quoted an unnamed family friend as saying Balfour had threatened to take Julian away from his mother.

Hudson, the Oscar-winning star of "Dreamgirls," Sunday offered a $100,000 reward for information leading to the return of her nephew. Donerson was her mother and Jason her brother.