Al Qaeda suspect al-Liby stays with defense lawyer paid by Libya

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By Joseph Ax NEW YORK (Reuters) - Suspected Al Qaeda figure Anas al-Liby has elected to stick with his defense lawyer, despite a judge's warnings that the lawyer has a potential conflict of interest because the Libyan government is paying his fees. Al-Liby, whose real name is Nazih al-Ragye, told U.S. District Judge Lewis Kaplan in New York on Wednesday that he understood his lawyer Bernard Kleinman theoretically could find his loyalties divided between his client and the Libyan government. Kaplan said he would permit Kleinman to remain on the case if al-Liby agreed to waive any future appeal centered on whether Kleinman's representation was tainted by the potential conflict.