Tom DeLay may be able to escape prosecution for money laundering, on the grounds that the Texas money laundering statute does not apply to checks, according to Republican justices in Texas. A panel of judges voted along party lines not to rehear a decision that would exempt checks from the definition of "funds" in the money laundering law. DeLay's attorneys believe that this will force prosecutors to dismiss charges against DeLay. (Houston Chronicle)

Chairman of the House Judiciary Committee John Conyers demanded an explanation for why the Justice Department failed to pursue charges against former Attorney Gen. Alberto Gonzales following yesterday's release of an inspector general report concluding that Gonzales mishandled classified information. According to Conyers, the report clearly indicates that Gonzales violated department rules. (House Judiciary Committee)

A second U.S. after-battle investigation continues to contradict reports by Afghan officials, human rights groups, and the United Nations that large numbers of civilians were killed in a recent U.S. airstrike. The new U.S. investigation claims that between 30 and 35 Taliban militants were killed in the attack, along with seven civilians. The U.N. previously found "convincing evidence" that up to 90 civilians were killed. (AP)

The FBI taped more than 100 hours of phone conversations involving indicted Sen. Ted Stevens (R-AK) as part of their public corruption investigation. The FBI investigation focused on conversations between oil contractors such as VECO and politicians. Stevens' attorneys are preparing to argue that these phone conversations should not be admitted at trial against Stevens, on the grounds that he was not named on the FBI warrants. (AP)

The hearing to remove Detroit mayor Kwame Kilpatrick will begin this morning, after Kilpatrick lost a last minute appeal to the Michigan Court of Appeals. The Michigan court ruled that Gov. Jennifer Granholm (D-MI) has the power to remove Kilpatrick from office. Kilpatrick is accused of 10 felonies but has refused to resign. (New York Times)

Democracy Now! host Amy Goodman was arrested during protests of the Republican Convention, along with two of the show's producers and an AP journalist. The two producers were arrested while covering the protests and charged with felony rioting. Goodman was arrested after asking a police officer about the status of her two producers and charged with a misdemeanor obstruction of a legal process and interference with a peace officer. (AP)