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GONZALEZ CAMPAIGNER ON DA OFFICE LEAVE District Attorney Terence Hallinan sent one of his investigators, Ross Mirkarimi, on leave Thursday after reading allegations in local news stories that Mirkarimi was working for mayoral candidate Matt Gonzalez on the public dime. Deputy City Attorney John Shanley — on a leave of absence to work full time on the mayoral campaign for Gavin Newsom, Gonzalez’s rival — said it was “highly inappropriate, at best” for Mirkarimi to serve as Gonzalez’s spokesman while still on the city’s payroll. “You should take a leave of absence � so you’re not cheating the taxpayers,” Shanley said, adding that while on leave, he pays for his own health benefits and doesn’t accrue retirement benefits. Mirkarimi responded that he’d gone off the clock whenever he worked on Gonzalez’s campaign and had done nothing improper, according to a report in the San Francisco Chronicle. Hallinan told Mirkarimi on Thursday not to “try to work in both places for the next three weeks” before the Dec. 9 runoff, Hallinan said. “And don’t use the city car, which I think he was pretty good about, but he used at least one time. And that starts right now.” Mirkarimi said he’d been “given the opportunity to take a leave,” and added that he thought it would begin today or Monday, in a voice mail message to The Recorder on Thursday. Hallinan said he thinks Mirkarimi properly accounted for his time off. But the DA acknowledged he hadn’t been keeping strict tabs on the investigator’s time cards previously. “I’m trying to run for office and be a district attorney at the same time,” Hallinan said, “and maybe I’m not paying as much attention to detail as I ordinarily would.” — Pam Smith ELECTRONIC ARTS GC IS STEPPING DOWN Ruth Kennedy, the general counsel of Electronic Arts, announced Wednesday that she is stepping down from her post. Kennedy said she would like to take a less time-consuming job within the company, perhaps in its educational department, so that she can devote more time to her children, ages 10 and 11. “The job is incredibly challenging and wonderful and I have two young sons who are challenging and wonderful,” Kennedy said. Electronic Arts is global now and “to spend time on airplanes doesn’t fit for me anymore.” Kennedy said she will stay in her position until a replacement is found. Based in Redwood City, Electronic Arts is the leading video-game maker. Kennedy, who has been the company’s top lawyer for the past 13 years, is known for encouraging the video-game maker not to publish products that feature gratuitous sex, violence or profanity. Prior to joining Electronic Arts she worked at tech startups, including Tolerant Systems, which subsequently became Veritas Software Corp. — Brenda Sandburg JURY AWARDS $11.4 M IN CONTRACT DISPUTE SAN JOSE — A South Bay jury ordered a Texas semiconductor company Wednesday to pay $11.4 million in damages for breaching contracts. The jury found that Dallas Semiconductor Corp. broke its agreement with Fremont’s Lam Research Corp. when it backed out of a $20 million deal to buy six semiconductor fabrication systems. After five weeks of testimony, the jury deliberated less than a day before reaching its verdict in Santa Clara Superior Court Judge C. Randall Schneider’s courtroom. “The jury clearly understood and properly applied the Uniform Commercial Code,” said Lam’s lead attorney, Jay Fowler. In 2000, Lam agreed to build tools for Dallas. Dallas sent purchase orders, which incorporated boilerplate contract language and Lam sent acknowledgements with its own terms and conditions, said Fowler, an attorney with Bergeson. Dallas was acquired by Maxim Integrated Products in 2001 and pulled the plug on the contract after Lam had already built two of the six systems ordered. “The jury had to decide whether the conduct of Dallas and the overall behavior showed there was a contract, despite the fact that the written terms did not agree,” Fowler said. “They were not fooled by Maxim’s tactics.” Dallas’ attorney David Draper, a partner with San Jose’s Terra Law, argued that no contract was entered. Draper said the company will appeal. — Shannon Lafferty UNIFY EXEC GUILTY OF FRAUD, CONSPIRACY The former CEO of Unify Corp. was found guilty Thursday by a federal jury of nine counts of securities fraud and one conspiracy count, the U.S. attorney’s office announced. Gholamreza Mikailli, 52, was convicted of inking side-letter agreements and improper revenue recognition in order to meet Wall Street expectations. After a 10-week trial, the verdict was handed down after little more than a day of deliberations. Mikailli was also shown to have transferred hundreds of thousands of company shares to his ex-wife as part of a divorce settlement, then sold his remaining shares for more than $4 million. “This case demonstrates that juries in San Francisco understand the significance of what it means for corporate officers to fraudulently manipulate the books and trade on inside information,” U.S. Attorney Kevin Ryan said in a statement. Assistant U.S. attorneys Jeffrey Bornstein and Anne Christine Massullo prosecuted the case. A Securities and Exchange Commission case against Mikailli is pending. Unify’s former chief financial officer, Gary Pado, had previously pleaded guilty. Mikailli will be sentenced Feb. 27 before U.S. District Judge Susan Illston. — Jason Hoppin

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