An appeals court panel on Wednesday expressed doubts about the fairness of a prosecution that led to a prison sentence for a man convicted of defrauding a government bailout program.

A three-judge panel of the 2nd U.S. Circuit Court of Appeals had plenty of questions for a prosecutor as it conducted oral arguments in an appeal by Jesse Litvak, a bond trader on the Stamford, Connecticut, trading floor at Jefferies & Co. Inc.

Litvak, who's from New York, was sentenced last year to two years in prison after a jury convicted him of securities fraud, defrauding the Troubled Asset Relief Program and making false statements to the federal government. He has not had to serve his sentence pending appeal.

The conviction made Litvak, 40, the first person convicted of a crime related to the program, which used bailout funds in the financial meltdown to boost the economy.

A federal appeals court halted Wednesday's scheduled execution of a Texas killer whose attempt to subpoena Jesus Christ as a trial witness and other behavior led his attorneys to argue he is too mentally ill for capital punishment.

Scott Panetti, who was diagnosed with schizophrenia some 14 years before fatally shooting his estranged wife's parents in 1992, was granted the reprieve less than eight hours before he was set to receive a lethal injection. In stopping the execution, the 5th U.S. Circuit Court of Appeals acknowledged the legal complexity of putting a mentally ill inmate to death.

In a two-sentence ruling, the court said it needs time to "fully consider the late arriving and complex legal questions at issue in this matter" and that it will schedule briefings and hearings to consider arguments.

The Texas attorney general's office said it has no immediate plans to appeal and that state attorneys will present arguments to the 5th Circuit once the court sets a date for them.

Panetti's lawyers described him as delusional and argued that he was too mentally ill to qualify for capital punishment and they sought the delay so Panetti could undergo new competency examinations.

Panetti, who acted as his own trial lawyer, testified as an alternate personality he called "Sarge" to describe the slayings of Joe and Amanda Alvarado. He wore a purple cowboy outfit, including a big cowboy hat, during trial and largely ignored a standby attorney the judge appointed to assist him.

Appeals also were before the U.S. Supreme Court, which has said mentally ill people cannot be executed if they don't have a factual and rational understanding of why they're being punished. The high court took no action once the lower court stopped the punishment.

A California man has been sentenced in federal court in South Dakota for his role in a conspiracy to distribute marijuana.

U.S. Attorney Brendan Johnson says 29-year-old Brett McFarland, of Korbel, Calif., was sentenced to five years in prison to be followed by four years of supervised release.

McFarland pleaded guilty last November to a drug distribution conspiracy charge. A money laundering conspiracy charge was dropped.

Johnson says McFarland has agreed to forfeit to the government his interest in proceeds from the sale of property in Petrolia, Calif., that was bought with drug proceeds.

One of Australia's largest banks faces a multimillion dollar payout to thousands of customers after a judge ruled on Wednesday that late payment fees it charged on credit cards were exorbitant.

ANZ Banking Group Ltd. partially lost a class action law suit in the Australian Federal Court brought by more than 43,000 customers who claimed they had been charged excessive fees for years. In some cases the fees were 70 times the cost to the bank of administering late payments.

Justice Michelle Gordon ruled that the bank had been illegally imposing penalties for late payments on credit cards.

She agreed with lead plaintiff Lucio Paciocco's argument that the fees were "extravagant, exorbitant and unconscionable," and represented a breach of contract.

But she also ruled in ANZ's favor by dismissing claims that other types of bank fees were illegal penalties.

It was not clear how much the bank would have to pay back customers who had been charged too much over six years. Lawyers for the bank and customers have until next week to agree on a proposal for repaying customers that the court can rule on.

A King County Superior Court judge declined Friday to immediately rule on a challenge to the voter-approved $15 an hour minimum wage requirement for airport workers in Seattle-Tacoma International Airport.

Judge Andrea Darvas said she'll issue a ruling with reasoning after Christmas Day but before January 1. Parties in the case had been expecting a ruling Friday.

The measure is scheduled to go into effect on January 1.

Last month voters in the city of SeaTac narrowly approved the measure, which would require a $15 minimum wage, a handful of paid sick days and other standards to around 6,000 workers at the airport and related industries, like hotels and rental car companies.

However, the legal fight over the measure is not expected to end with Darvas' ruling. An eventual appeal to the state Supreme Court could come from either side, depending on her ruling.

The challenge to the newly approved measure is being led by Alaska Airlines Group and other businesses. They say that an initiative approved by city residents doesn't have power over the airport, which is operated by the Port of Seattle. The Port of Seattle, a public entity, agrees.

Alaska Airlines Group also says state law prohibits initiatives from packaging laws. So they're arguing that the multiple requirements in the measure, such as the minimum wage and paid sick days, constitute packaging multiple laws into one initiative.

A court-martial has been scheduled for February for a U.S. Naval Academy student accused of aggravated sexual assault.

Midshipman Josh Tate appeared at an arraignment Monday at the Washington Navy Yard.

The court-martial is scheduled to begin Feb. 10. The case stems from an April 2012 party at an off-campus house in Annapolis. The alleged victim had been drinking heavily and has testified that she cannot remember having sex with Tate.

Another student also faces a separate court-martial in the case. It is scheduled for Jan. 27. Midshipman Eric Graham is charged with abusive sexual contact.

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