Russia vows tough response to U.S. human rights legislation

MOSCOW — Russian officials are promising a tough response to U.S. legislation that would impose sanctions on Russian officials if Congress finds them responsible for violating human rights.

The U.S. House on Friday passed a bill that establishes permanent normal trade relations with Russia, repealing the 1974 Jackson-Vanik amendment, which had imposed limits on trade because of the Soviet Union's treatment of Jews. It had been waived annually since 1989, two years before the Soviet Union collapsed.

But a provision of the legislation named after Russian lawyer Sergei Magnitsky also would impose sanctions on officials responsible for human rights violations.

Magnitsky was a 37-year-old lawyer representing the Britain-based Hermitage Capital Management company in 2008 when he blew the whistle on alleged fraud involving Russian tax officials and police officers. Magnitsky said a tax refund scam had cost Russia about $200 million.

But Magnitsky himself was arrested on charges of organizing tax evasion for Hermitage Capital executives. He was allegedly tortured and denied proper medical treatment, and died in a Moscow prison on Nov. 16, 2009.

The circumstances of his death as well as the purported multimillion-dollar fraud have never been properly investigated, human rights activists say.

If the legislation passed by the House on Friday, the third anniversary of Magnitsky's death, also passes the Senate and is signed by President Obama, U.S. officials will be obligated within 120 days to compile and publish a list of Russian officials involved in Magnitsky's persecution and death, and other violations of human rights in Russia.

The officials on the so-called Magnitsky list will be denied U.S. visas and current visas will be revoked. Their financial assets in the United States will be frozen.

The Russian Foreign Ministry said the legislation could damage relations with the United States.

"The passage of the Magnitsky Act is another attempt of flagrant politicizing the issue of human rights," the ministry's envoy on human rights, Konstantin Dolgov, said Saturday in an interview with Voice of Russia radio station. "The American side over and over again attempts to accuse Russia of violating human rights in [Sergei] Magnitsky's case, ignoring the exhaustive explanations about the course of the case's investigation."

Dmitry Peskov, President Vladimir Putin's spokesman, said late Friday that the legislation would elicit an "equally tough response."

Lilia Shevtsova, a senior researcher with the Moscow Carnegie Center, said there was little left of the U.S.-Russia relationship to be damaged by the latest dispute.

"Moscow however may take advantage of it to more actively play the role of the spoiler in respect to America in global politics," Shevtsova said. "The Kremlin will try to use the situation to intensify its ongoing crackdown on the opposition inside the country."

Pavel Palazhchenko, senior advisor to former Soviet President Mikhail Gorbachev, said he was puzzled by Russia's tough reaction.

"My guess is that the authorities, including the Foreign Ministry, misjudged the internal dynamics in the U.S., betting that the administration, which never likes Congress micromanaging foreign policy, would object to the Magnitsky Act," he said.

Palazhchenko said Russia was rapidly using up any goodwill left in the West, but he predicted that Obama would do some damage control before his planned visit to Moscow next year.

sergei.loiko@latimes.com

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Israel's Rocket-Hunting Ace Got His Start Playing <em>Warcraft</em>

War has once again erupted between Hamas and the Israel Defense Forces, with the Gaza-based militant group launching hundreds of rockets and missiles at Israeli towns. But many of these projectiles never made it to their targets, thanks to the new Iron Dome missile defense system that’s arguably become this conflict’s most important technological difference-maker. This article, first published in April, tracks the story of Iron Dome’s most prolific “gunner.” While his record for shooting down missiles and rockets has by now undoubtedly fallen, the tale still gives insight into the battle now gripping Israel and Gaza.

KFAR GVIROL, Israel — While many of the boys in Idan Yahya’s high school class were buffing up and preparing themselves for selection into elite combat units, this gawky teenager was spending “a lot of time” playing Warcraft — the real-time strategy computer game where opposing players command virtual armies in a battle to dominate the fictional world of Azeroth.

Four years later, the high school jocks who sweated it out in pre-military academies so they could make the cut into the Israel Defense Force’s Special Operations units are now crawling through the sand dunes on the outskirts of the Gaza Strip and watching while Idan knocks rockets out of the sky hundreds of meters above their heads. Idan Yahya, 22, an Iron Dome “gunner” in the Active Air Defense Wing 167, currently holds the record for the number of rockets intercepted: eight.

People in the army describe him variously as a geek and an ace. But the geek who grew up playing Warcraft is now a highly prized soldier on the cutting edge of real war craft. He’s the Israeli army’s top rocket interceptor.

The Iron Dome is a mobile anti-rocket interception system that Israel moves around the country to shoot down the rockets fired at its civilian population centers by armed groups in Gaza and southern Lebanon. Its radar picks up launches and fires interceptor missiles at them if they’re calculated to be heading towards populated centers. The system has become increasingly important as Hamas, Hezbollah and other groups amass surface-to-surface missiles to hit the Israeli home front with, thus bypassing the Israel Defense Force’s overwhelming advantage of concentrated firepower and fighter aircraft. Should Israel attack Iran’s nuclear installations, the expected rocket reprisals from the armed groups on its borders will keep Iron Dome very, very busy.

As the war between Israelis and Arabs enters its sixth decade (or its 500th depending on who you ask), it is increasingly becoming a hi-tech rocket war. The IDF’s Director of Military Intelligence Maj. Gen. Aviv Kochavi in February said there were 200,000 rockets aimed at Israel from the south, north and east. And in this increasingly technological battlefield of rockets, anti-rocket interceptors, radars, control rooms, drones and drone hacking, it is soldiers like Idan Yahya (and whoever his counterparts on the Arab side are) who are making the most impact.

Computer geek, keyboard combatant, soldier, call him what you will, Idan and others like him man the controls of the latest rock star in advanced military technology. “There are a lot of flashing blips, signs, symbols, colors and pictures on the screen. You look at your tactical map; see where the threat is coming from. You have to make sure you’re locked onto the right target. There’s a lot of information and there is very little time. It definitely reminds me of Warcraft and other online strategy games,” Idan says.

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Stephen Colbert joins US presidents at wax museum

WASHINGTON (AP) — Stephen Colbert is taking his place among the presidents at the Madame Tussauds wax museum in Washington and will be featured in a new media gallery.

Colbert visited the museum Friday to unveil a wax figure created to represent him. The museum says Colbert donated his own clothes to dress the figure in a suit, tie, cuff links and lapel pin. Colbert wore an identical outfit.

The new figure will be the centerpiece of a new media gallery with a replica of “The Colbert Report” set where guests can sit next to Colbert’s figure behind his fake news desk.

Designers from Madame Tussauds went to Colbert’s New York studio in June to take more than 250 measurements and photographs of the Comedy Central star to create the wax figure.

Entertainment News Headlines – Yahoo! News

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The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil

For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.

“I had a rough road,” he said.

Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.

“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”

About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.

One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.

Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”

“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”

The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.

As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”

After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.

But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.

“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”

In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.

But one evening in May 2010, he had a bout with insomnia.

He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.

“The next morning when I woke up, it was hard for me to breathe,” he said.

He called an ambulance, which took to Woodhull Hospital. He was released after about a month.

Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”

In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.

Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.

“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”

Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.

But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.

He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.

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The iEconomy: As Boom Lures App Creators, Tough Part Is Making a Living

Daniel Rosenbaum for The New York Times

Shawn and Stephanie Grimes’s efforts have cost $200,000 in lost income and savings, but their apps have earned less than $5,000 this year.

ROSEDALE, Md. — Shawn and Stephanie Grimes spent much of the last two years pursuing their dream of doing research and development for Apple, the world’s most successful corporation.

But they did not actually have jobs at Apple. It was freelance work that came with nothing in the way of a regular income, health insurance or retirement plan. Instead, the Grimeses tried to prepare by willingly, even eagerly, throwing overboard just about everything they could.

They sold one of their cars, gave some possessions to relatives and sold others in a yard sale, rented out their six-bedroom house and stayed with family for a while. They even cashed in Mr. Grimes’s 401(k).

“We didn’t lose any sleep over it,” said Mr. Grimes, 32. “I’ll retire when I die.”

The couple’s chosen field is so new it did not even exist a few years ago: writing software applications for mobile devices like the iPhone or iPad. Even as unemployment remained stubbornly high and the economy struggled to emerge from the recession’s shadow, the ranks of computer software engineers, including app writers, increased nearly 8 percent in 2010 to more than a million, according to the latest available government data for that category. These software engineers now outnumber farmers and have almost caught up with lawyers.

Much as the Web set off the dot-com boom 15 years ago, apps have inspired a new class of entrepreneurs. These innovators have turned cellphones and tablets into tools for discovering, organizing and controlling the world, spawning a multibillion-dollar industry virtually overnight. The iPhone and iPad have about 700,000 apps, from Instagram to Angry Birds.

Yet with the American economy yielding few good opportunities in recent years, there is debate about how real, and lasting, the rise in app employment might be.

Despite the rumors of hordes of hip programmers starting million-dollar businesses from their kitchen tables, only a small minority of developers actually make a living by creating their own apps, according to surveys and experts. The Grimeses began their venture with high hopes, but their apps, most of them for toddlers, did not come quickly enough or sell fast enough.

And programming is not a skill that just anyone can learn. While people already employed in tech jobs have added app writing to their résumés, the profession offers few options to most unemployed, underemployed and discouraged workers.

One success story is Ethan Nicholas, who earned more than $1 million in 2009 after writing a game for the iPhone. But he says the app writing world has experienced tectonic shifts since then.

“Can someone drop everything and start writing apps? Sure,” said Mr. Nicholas, 34, who quit his job to write apps after iShoot, an artillery game, became a sensation. “Can they start writing good apps? Not often, no. I got lucky with iShoot, because back then a decent app could still be successful. But competition is fierce nowadays, and decent isn’t good enough.”

The boom in apps comes as economists are debating the changing nature of work, which technology is reshaping at an accelerating speed. The upheaval, in some ways echoing the mechanization of agriculture a century ago, began its latest turbulent phase with the migration of tech manufacturing to places like China. Now service and even white-collar jobs, like file clerks and data entry specialists or office support staff and mechanical drafters, are disappearing.

“Technology is always destroying jobs and always creating jobs, but in recent years the destruction has been happening faster than the creation,” said Erik Brynjolfsson, an economist and director of the M.I.T. Center for Digital Business.

Still, the digital transition is creating enormous wealth and opportunity. Four of the most valuable American companies — Apple, Google, Microsoft and I.B.M. — are rooted in technology. And it was Apple, more than any other company, that set off the app revolution with the iPhone and iPad. Since Apple unleashed the world’s freelance coders to build applications four years ago, it has paid them more than $6.5 billion in royalties.

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Former O.C. Sheriff Michael Carona seeks to cut prison sentence

Attorneys for former Orange County Sheriff Michael Carona — who is now serving 66 months in federal prison for witness tampering — are asking that the former lawman's sentence be cut by nearly half, potentially freeing him.

In a motion, Carona's attorneys argued that the sentence handed down in 2009 by U.S. District Judge Andrew Guilford should be adjusted after changes in the law.

His attorneys contend that the judge sentenced Carona on the witness tampering charge by "cross-referencing" charges on which he was acquitted, a practice his attorneys argue that the U.S. Supreme Court overruled in a case involving former Enron President Jeffrey Skilling.

"Carona seeks relief on the ground that the court erred in determining his sentence by using honest services fraud as the 'underlying offense' under United States sentencing guidelines," his lawyers wrote in the motion filed earlier this month. They added that "the conduct at issue did not constitute honest services fraud or any other federal offense."

His lawyers, according to the motion, are seeking to reduce his time to a term of 24 months to 30 months.

Brett Sagel, the federal prosecutor on the case, said in an emailed statement Thursday that the government contends "Carona's filing lacks merit both factually and legally."

Carona was acquitted in 2009 on charges of conspiracy, mail fraud and one count of witness tampering. But the jury found him guilty on another count of witness tampering after he was recorded as he tried to persuade his former assistant sheriff to lie to a grand jury investigating allegations of corruption.

Carona, 57, was widely considered to be a rising political star at the time of his indictment.

The former sheriff began serving his 51/2 -year prison sentence in January 2011 at Englewood Federal Correctional Institution in Littleton, Colo., where he joined other prominent criminals — including Skilling, who is serving a 24-year sentence; and disgraced former Illinois Gov. Rod Blagojevich.

When Carona's sentence began, officials at the prison — dubbed by Forbes magazine as one of the "12 best places to go to prison" — said the former sheriff would put in 71/2-hour days doing landscaping, plumbing, painting or food service.

But he could have access to the low-security prison's amenities, including college courses and the use of indoor and outdoor recreational facilities with a running track, bicycle court and exercise bicycles.

Carona's lawyers said that he had exhausted his appeals when the U.S. 9th Circuit Court of Appeals upheld his conviction shortly before he reported to the prison.

rick.rojas@latimes.com

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So You Want in on the Music Biz? Fred Wilson Has 4 Things to Tell You

Not only is Union Square Ventures partner Fred Wilson the godfather of the New York startup scene, he also loves music. So who better than this self-proclaimed music nut to talk about the future of music and technology, and how companies straddling both have a shot at making money.

At the Billboard FutureSound conference in San Francisco this week, Wilson laid out four guiding principals for would-be music moguls. All you Russell Simmons wannabes, here you go.

1. It’s more expensive than you think, and it takes longer than you want.

Unlike a typical software startup that can get up and running with $500,000, music startups often need at least $5 million and up to $20 million just to get started, says Wilson. Much of that money goes towards licensing music content from the copyright holder, which is usually a record label. “The startup costs for a legal and legitimate music service are extremely high relative to any other sector,” he says. Translation: VCs have plenty of other cheap sectors to go hunting for promising startups, so funding for music startups is hard to come by.

Union Square Ventures‘ two music plays are group listening service Turntable.fm and social MP3 sharing site SoundCloud, both of which received sizable rounds from the firm. Turntable.fm has raised $7 million from Union Square and others, and SoundCloud banked $10 million in its Wilson-led second round of funding.

Unlike many web-based startups (mobile and otherwise), which latch on to massive distribution platforms offered by Facebook, Google and Apple, music streaming or discovery services can’t go global on day one because of copyright protections and country-specific licensing contracts.

Turntable.fm learned that lesson the hard way. When the service launched in 2011 it blew up thanks to its slick design and mobile-friendly approach. But the startup quickly learned that it was illegally offering music to overseas listeners. It immediately shut off service to international customers, and two-thirds of its users disappeared. The company is now hammering agreements with individual countries and record labels to stream music legally, but it’s going to be a long and tedious process, says Wilson.

2. No matter how many users you have, massive valuations are fleeting if you can’t make money – even if you are Spotify and Pandora.

Spotify recently banked $100 million from Goldman Sachs, valuing the company at $3 billion. Even though Pandora has been trading down 46 percent from its 2011 debut, the company still has a $1.21 billion market cap. But those valuations will disappear if neither company can stem their operating losses, and fast, says Wilson.

A PrivCo report shows that while Spotify earned $244 million in revenue during 2011, the company lost $60 million in the same period. Even though a leaked report says that Spotify’s revenue could double in 2012, if the company losses keep climbing, Wilson says Spotify’s value won’t stay in the billions forever. “Spotify is probably not worth $3 billion,” he says. “It might be worth something, someday to someone, but if they still can’t figure how to make money, they’ll lose.”

Pandora faces the same struggle as Spotify, trying to get users, not advertisers, to pay for its service. For the second quarter of its 2013 fiscal year, the company booked $101.3 million in revenue, but lost $5.4 million. Though its advertising revenue remains strong at $89.4 million, it is having a hard time converting freeloading listeners into paid subscribers, despite its own ad attempts. “Pandora will not be worth billions for long if they are losing money,” Wilson says.

3. That said, Pandora has the right idea. Advertising dollars will move increasingly to internet radio, and artists will start to make money from their music.

FM radio advertising is a $17 billion market, and Wilson believes that as Internet radio services like Pandora, Songza, and Rdio take the place of traditional broadcast, those ad dollars will move online. That’s good for online radio streaming startups, but even better for the artists whose music is played over these apps and websites.

When a song is played on the radio, the artists gets a royalty. But to play a song over Rdio or Pandora, those companies must pay licensing costs and higher royalties, which go right back to the artists. Pandora has said that it pays out $1 million to Adele, Coldplay, and others.

Wilson is optimistic that as more music enthusiasts ditch radios for apps, more money will find its way to artists. That might be the case for radio apps now, but that could easily change as Pandora has been looking for ways to reduce its royalty costs. The company recently sued the American Society for Composers, Authors and Publishers, a major royalty collection agency, seeking lower licensing fees. Pandora is also lobbying Congress to pass the Internet Radio Fairness Act to bring down it’s licensing costs, a piece of legislation that many artists oppose.

4. Selling virtual goods might be a better business than selling music.

Wilson would be remiss to not plug his own investment in Turntable.fm during his keynote. If you’re not familiar with the service, users create themed music rooms, like “I Love the 80s” or “Indiescribable,” which they join as a virtual DJ. Others join the room as listeners, and influence which songs are played based on a thumbs-up/thumbs-down voting system. Too many down-votes will force the song to skip to a new one on the playlist, but up-votes earn you “DJ points,” credits you can use to unlock new avatars.

Turntable.fm doesn’t charge its users for a subscription and doesn’t serve ads. Though it’s not bringing in revenue right now, there is talk of charging for DJ points, so anyone can get a little bit of cred without getting up on the virtual DJ platform.

While that will surely vex some current Turntable.fm users, charging for virtual goods might be the next big revenue-earning tool for music businesses. “Ads can carry a lot of the load, but not all,” says Wilson. “Turntable.fm’s virtual goods model could work well as a new revenue stream for other music businesses.”

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Scott Dadich Named Top Editor at Wired

LOS ANGELES (TheWrap.com) – Scott Dadich has been named editor-in-chief of Wired magazine, it was announced Friday by Condé Nast editorial director Tom Wallace.

The appointment marks a homecoming for Dadich, who served as Wired’s creative director from 2006 to 2010. He replaces Chris Anderson as the publication’s top editor.

Since 2010, Dadich has served as vice president, editorial platforms and design at Conde Nast. In this role, he oversaw the creative efforts to bring Condé Nast’s storied brand portfolio to emerging digital channels.

“Scott has been at the forefront of the company’s digital innovation for the past three years, developing the design for a digital magazine that has become an industry standard,” Wallace said. “His return to Wired, where he served as creative director and won three National Magazine Awards for Design, will ensure that it continues its pace-setting growth.”

While Dadich was creative director at Wired, the magazine received three consecutive National Magazine Awards for Design. He is the only creative director ever to win both the National Magazine Award for Design and the Society of Publication Designers Magazine of the Year Award for three consecutive years (2008-2010).

“I’m excited to return to Wired, which has had such a tremendous impact on my life and my career,” Dadich said. “I’m honored to have the chance to build on the legacy of innovation that Louis and Jane started some 20 years ago. And I am grateful to my friend and colleague Chris and the incredible Wired staff. I look forward to finding new opportunities to delight and surprise the Wired community, both with the stories we tell and in the ways in which we tell them.”

Prior to Wired, he was the creative director of Texas Monthly, which was nominated for 14 National Magazine Awards during his tenure and won for General Excellence in 2003.

Celebrity News Headlines – Yahoo! News

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N.F.L. Paid Millions Over Brain Injuries, Article Says

Three retired N.F.L. players received at least $2 million in disability payments as a result of brain trauma injuries from their playing days, according to an article by ESPN and the PBS series “Frontline.”

The payments were made in the 1990s and early 2000s by the Bell/Rozelle N.F.L. Player Retirement Plan, a committee comprising representatives of the owners, players and the N.F.L. commissioner.

The N.F.L. is being sued by several thousand retired players who accuse the league of concealing a link between head hits and brain injuries. The league denies the accusation and has said it did not mislead its players.

The article, however, cites a letter written in 2000 from the director of the retirement plan who stated that Mike Webster, who retired in 1990, had a disability that was “the result of head injuries he suffered as a football player with the Pittsburgh Steelers and the Kansas City Chiefs.”

Webster died in 2002. The article cites similar payments to Gerry Sullivan, a Browns lineman, and a third, unnamed player.

The article provides more details than were known about Webster’s case; his fight for disability benefits was known. The retired players say in their complaint that “the N.F.L.’s own physician independently examined Webster and concluded that Webster was mentally ‘completely and totally disabled as of the date of his retirement and was certainly disabled when he stopped playing football sometime in 1990.’ ”

However, Greg Aiello, an N.F.L. spokesman, said that the ESPN report “underscores that we have had a system in place with the union for many years to address player injury claims on a case-by-case basis.” The disability plan, he said, was “collectively bargained with the players.”

“All decisions concerning player injury claims are made by the disability plan’s board, not by the N.F.L. or by the Players Association,” Aiello said.

The board has seven members: three owner representatives, three player representatives and one nonvoting representative of the commissioner.

The disclosures in the article came a day after Commissioner Roger Goodell spoke at the Harvard School of Public Health, where he trumpeted the league’s efforts to increase the safety of its players and proclaimed that “medical decisions override everything else.”

Jeffrey Standen, a law professor at Willamette University in Oregon, said the details about Webster’s disability payments did not amount to a smoking gun. The plan’s determination that Webster sustained head injuries is not the same as the N.F.L. making that decision.

“The problem is the N.F.L. didn’t make the admission; it was the board,” Standen said. “They’re not the same body. As a legal matter, the fact that they paid Webster is not going to matter much in legal terms. But it’s evidence to throw in front of a jury.”

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DealBook: As Labor Talks Collapse, Hostess Turns Out Lights

What might be the last Twinkie in America — at least for a while — rolled off a factory line Friday morning. It was just like the millions that had come before it, golden, cream-filled empty calories, a monument to classic American junk food.

But it is likely to be the last under the current management. After not one but two bankruptcies, Hostess Brands, the beleaguered purveyor of Twinkies, Ho Hos, Sno Balls and Wonder bread, announced plans to wind down operations and sell off its brands.

Since filing for Chapter 11 bankruptcy protection in January, Hostess has been trying to renegotiate its labor contracts in a bid to cut costs. But the talks fell apart, and last week one union went on strike.

The so-called liquidation will probably spell the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. Although the company could theoretically negotiate a last-minute deal with the union, Hostess is moving to shut factories and lay off a large majority of its 18,500 employees.

But Twinkies and the other well-known brands could eventually find new life under a different owner. As part of the process, Hostess is looking to auction off its assets, and suitors could find value in the portfolio.

“The potential loss of iconic brands is difficult,” said the company’s chief executive, Gregory F. Rayburn. “But it’s overshadowed by the 18,500 families that are out of work.”

The company’s current problems stem, in part, from the legacy of its past.

An amalgam of brands and businesses, the company has evolved over the years through acquisitions. In the 1960s and 1970s, the company, then called Interstate, bought more than a dozen regional bakeries scattered across the country. A couple of decades later, it paid $330 million for the Continental Baking Company, picking up a portfolio of brands like Wonder and Hostess.

As the national appetite for junk food waned, the company fell on hard times, struggling against rising labor and commodity costs. In 2004, it filed for bankruptcy for the first time.

Five years later, the company emerged from Chapter 11 as Hostess Brands, so named after its most prominent division. With America’s new health-conscious attitude, it sought to reshape the business to changing times, introducing new products like 100-calorie Twinkie Bites.

But the new private equity backers loaded the company with debt, making it difficult to invest in new equipment. Earlier this year, Hostess had more than $860 million of debt.

The labor costs, too, proved insurmountable, a situation that has been complicated by years of deal-making. The bulk of the work force belongs to 12 unions, including the International Brotherhood of Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

The combination of debt and labor costs has hurt profits. The company posted revenue of $2.5 billion in the fiscal year 2011, the last available data. But it reported a net loss of $341 million.

With profits eroding, the company filed for Chapter 11 in January. It originally hoped to reorganize its finances, seeking lower labor costs, including an immediate 8 percent pay cut.

The negotiations have been contentious.

The Teamsters, which has 6,700 members at Hostess, said it played an instrumental role in ousting Hostess’s previous chief executive, Brian J. Driscoll, this year after the board tripled his compensation to $2.55 million. The union also hired a financial consultant, Harry J. Wilson, who had worked on the General Motors restructuring.

While highly critical of management missteps, the Teamsters agreed in September to major concessions, including cuts in wages and company contributions to health care. As part of the deal, the union was to receive a 25 percent share of the company’s stock and a $100 million claim in bankruptcy.

“The objective was to preserve jobs,” said Ken Hall, the Teamsters’ general secretary-treasurer. “When you have a company that’s in the financial situation that Hostess is, it’s just not possible to maintain everything you have.”

But Hostess reached an impasse with the bakery union. Frank Hurt, the union’s president, seemed to lose patience with Hostess’s management, upset that it was in bankruptcy for the second time despite $100 million in labor concessions. He saw little promise that management would turn things around.

“Our members decided they were not going to take any more abuse from a company they have given so much to for so many years,” said Mr. Hurt. “They decided that they were not going to agree to another round of outrageous wage and benefit cuts and give up their pension only to see yet another management team fail and Wall Street vulture capitalists and ‘restructuring specialists’ walk away with untold millions of dollars.”

About a month ago, Mr. Rayburn said, the bakers union stopped returning the company’s phone calls altogether. For its part, the bakery union said the company had taken an overly aggressive approach. David Durkee, the union’s secretary-treasurer, said Hostess had given an ultimatum. “They said, ‘If you do not ratify this, we are going to liquidate based on your vote.’ ”

With the company standing firm, the bakery union struck last week, affecting nearly two-thirds of the company’s factories across the country. The Teamsters drivers honored the picket line, further shutting down the operations. The company gave union members until 5 p.m. on Thursday to return to work.

Mr. Rayburn said the financial strain of the strike was too much for the company, which had already reached the limits of its bankruptcy financing. Over the last week, Hostess lost tens of millions of dollars as many customers’ orders went unfilled. And its lenders would not open their wallets one more time.

By Thursday morning, Hostess’s executives were ensconced in the company’s headquarters in Irving, Tex., still hoping that enough employees would return to work to resume production. A small number of workers had already crossed the picket lines that had sprung up at most of the baker’s factories, but more than 10 plants remained well below their necessary capacity.

Mr. Rayburn’s deadline of 5 p.m. passed without either side backing down. Soon after, executives asked the company’s legal advisers to finish the court motions that would begin the liquidation. Papers had been drawn up well before that afternoon.

Around 7 p.m., Mr. Rayburn had his final discussions with the company’s board and his senior managers and made the call to begin winding down.

“We were trying to focus on where people were having success, but I had to make a call,” Mr. Rayburn said.

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Veteran L.A. County sheriff's deputy charged with murder

After spending much of his life putting people behind bars, a veteran L.A. County sheriff's deputy stood in handcuffs Thursday, charged with gunning down a former neighbor who apparently got into a fight with his son.

Francisco Gamez, 41, is accused of shooting Armando "Cookie" Casillas, a well-known figure in his blue-collar neighborhood in Sylmar.

Gamez was off duty, sitting in his car, when he allegedly fired two shots on the night of June 17, killing Casillas and narrowly missing a second man, prosecutors said.

Gamez, a 17-year veteran who worked as a detective in West Hollywood, was allegedly furious over a fight between his 20-year-old son and Casillas, 38, prosecutors said. The younger Gamez had called his father to the scene, authorities said.

Casillas was later found by relatives lying near his home, and died later at Providence Holy Cross Medical Center.

Gamez was removed from duty in July after witnesses and evidence tied the detective to the slaying, authorities said. He was arrested Wednesday and led handcuffed from his San Fernando home by his former co-workers.

On Thursday he was formally charged with murder, attempted murder and discharging a firearm from an occupied vehicle. Gamez could face 75 years to life in prison if convicted of all charges.

In court, where he stood handcuffed in a plexiglass cage, sheriff's deputies peeked into the room to gawk at their former colleague. Sheriff Lee Baca described the whole thing as "deeply disturbing."

Gamez is being held on $4-million bail.

On Beaver Street in Sylmar, where the shooting occurred, Casillas' photo sat in a frame in the midst of a makeshift memorial, along with a cross and a potted plant with U.S. and Mexican flags and candles.

"He was a sweetheart, and very generous," said Patsy Telles-Cabrera, who lived across the street from Casillas for years. "He would check in on my parents." She left a box of chocolates at the growing shrine.

"It never should have happened," said one neighbor. "This is a family neighborhood."

sam.quinones@latimes.com

richard.winton@latimes.com

Times staff writer Wesley Lowery contributed to this report.

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A Google-a-Day Puzzle for Nov. 16

Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.

SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!

Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.

And now, without further ado, we give you…

TODAY’S PUZZLE:

Note: Ad-blocking software may prevent display of the puzzle widget.

Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.

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“Avengers”, Adam Levine lead People’s Choice nominations

LOS ANGELES (Reuters) – “The Avengers” led the movie nominations for the annual People’s Choice Awards on Thursday in a field packed with action films, while Maroon 5 and frontman Adam Levine won six nods in music and television categories.

Justin Bieber, Channing Tatum – People magazine’s latest “sexiest man alive” – and actresses Jennifer Lawrence and Emma Stone also received multiple nominations for the only Hollywood awards show covering film, music and television that is voted on entirely by the public.

The People’s Choice Awards ceremony, set for January 9, is the first in the busy Hollywood awards season, which culminates with the coveted Academy Awards on February 24.

Summer blockbuster “The Avengers” won eight nominations including favorite movie, favorite action movie, and multiple nods for its stars Robert Downey Jr., Anne Hathaway, Scarlett Johansson and Chris Hemsworth.

It will compete with superhero movies “The Amazing Spider-Man” and “The Dark Knight Rises”, fantasy film “Snow White and the Huntsman” and futuristic thriller “The Hunger Games” for favorite movie.

The last of the popular “Twilight” films – “Breaking Dawn-Part 2″ – released this week, did not fall within the eligibility period for the People’s Choice Awards.

But its avid “Twi-hards” picked up a nomination for favorite movie fan following, along with those of “Harry Potter”, “The Lord of the Rings”, “Pirates of the Caribbean” and “The Hunger Games”.

In music, Adam Levine leapt to the top of the pile on the back of his stint as a judge on TV singing contest “The Voice”. Maroon 5 won nominations for favorite band, song, album, and music video, while Levine was nominated for celebrity judge – along with Christina Aguilera and new “X Factor” judges Britney Spears and Demi Lovato. “The Voice” was among the contenders for competition TV show.

On the small screen, network comedies “The Big Bang Theory” and “Glee” face off against “Modern Family”, while “Gossip Girl”, “Grey’s Anatomy” and “Grimm” are among the TV drama nominees.

The nominees were chosen by the votes of more than 93 million fans. Voting for the winners in all 48 categories begins on Thursday on website www.PeoplesChoice.com, where a complete list of nominations can be found.

(Reporting by Jill Serjeant; Editing by Patricia Reaney and Dale Hudson)

Movies News Headlines – Yahoo! News

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I Was Misinformed: The Time She Tried Viagra

I have noticed, in the bragging-rights department, that “he doesn’t need Viagra” has become the female equivalent of the male “and, I swear, she’s a real blonde.” Personally, I do not care a bit. To me, anything that keeps you happy and in the game is a good thing.

But then, I am proud to say, I was among the early, and from what I gather, rare female users.

It happened when the drug was introduced around 1998. I was 50, but after chemotherapy for breast cancer — and later, advanced ovarian cancer — I was, hormonally speaking, pretty much running on fumes. Whether this had diminished my sex drive I did not yet know. One may have Zorba-esque impulses when a cancer diagnosis first comes in; but a treatment that leaves you bald, moon-faced and exhausted knocks that out of your system pretty fast.

But by 1998, the cancer was gone, my hair was back and I was ready to get back in the game. I was talking to an endocrinologist when I brought up Viagra. This was not to deal with the age-related physical changes I knew it would not address, it was more along the feminist lines of equal pay for equal work: if men have this new sex drug, I want this new sex drug.

“I know it’s supposed to work by increasing blood flow,” I told the doctor, “But if that’s true for men, shouldn’t it be true for women, too?”

“You’re the third woman who asked me that this week,” he said.

He wrote me a prescription. I was not seeing anyone, so I understood that I would have to do both parts myself, but that was fine. I have a low drug threshold and figured it might be best the first time to fly solo. My memory of the directions are hazy: I think there was a warning that one might have a facial flush or headaches or drop dead of a heart attack; that you were to take a pill at least an hour before you planned to get lucky, and, as zero hour approached, you were supposed to help things along by thinking beautiful thoughts, kind of like Peter Pan teaching Wendy and the boys how to fly.

But you know how it is: It’s hard to think beautiful thoughts when you’re wondering, “Is it happening? Do I feel anything? Woof, woof? Hello, sailor? Naaah.”

After about an hour, however, I was aware of a dramatic change. I had developed a red flush on my face; I was a hot tomato, though not the kind I had planned. I had also developed a horrible headache. The sex pill had turned into a bad joke: Not now, honey, I have a headache.

I put a cold cloth on my head and went to sleep. But here’s where it got good: When I slept, I dreamed; one of those extraordinary, sensual, swimming in silk sort of things. I woke up dazed and glowing with just one thought: I gotta get this baby out on the highway and see what it can do.

A few months later I am fixed up with a guy, and after a time he is, under the Seinfeldian definition of human relations (Saturday night date assumed) my official boyfriend. He is middle aged, in good health. How to describe our romantic life with the delicacy a family publication requires? Perhaps a line from “Veronika, der Lenz ist da” (“Veronica, Spring Is Here”), a song popularized by the German group the Comedian Harmonists: “Veronika, der Spargel Wächst” (“Veronica, the asparagus are blooming”). On the other hand, sometimes not. And so, one day, I put it out there in the manner of sport:

“Want to drop some Viagra?” I say.

Here we go again, falling into what I am beginning to think is an inevitable pattern: lying there like a lox, or two loxes, waiting for the train to pull into the station. (Yes, I know it’s a mixed metaphor, but at least I didn’t bring in the asparagus.) So there we are, waiting. And then, suddenly, spring comes to Suffolk County. It’s such a presence. I’m wondering if I should ask it if it hit traffic on the L.I.E. We sit there staring.

My reaction is less impressive. I don’t get a headache this time. And romantically, things are more so, but not so much that I feel compelled to try the little blue pills again.

Onward roll the years. I have a new man in my life, who is 63. He does have health problems, for which his doctor prescribes an E.D. drug. I no longer have any interest in them. My curiosity has been satisfied. Plus I am deeply in love, an aphrodisiac yet to be encapsulated in pharmaceuticals.

We take a vacation in mountain Mexico. We pop into a drugstore to pick up sunscreen and spot the whole gang, Cialis, Viagra, Levitra, on a shelf at the checkout counter. No prescription needed in Mexico, the clerk says. We buy all three drugs and return to the hotel. I try some, he tries some. In retrospect, given the altitude and his health, we are lucky we did not kill him. I came across an old photo the other day. He is on the bed, the drugs in their boxes lined up a in a semi-circle around him. He looks a bit dazed and his nose is red.

Looking at the picture, I wonder if he had a cold.

Then I remember: the flush, the damn flush. If I had kids, I suppose I would have to lie about it.

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In BP Indictments, U.S. Shifts to Hold Individuals Accountable

HOUSTON — Donald J. Vidrine and Robert Kaluza were the two BP supervisors on board the Deepwater Horizon rig who made the last critical decisions before it exploded. David Rainey was a celebrated BP deepwater explorer who testified to members of Congress about how many barrels of oil were spewing daily in the offshore disaster.

Mr. Vidrine, 65, of Lafayette, La., and Mr. Kaluza, 62, of Henderson, Nev., were indicted on Thursday on manslaughter charges in the deaths of 11 fellow workers; Mr. Rainey, 58, of Houston, was accused of making false estimates and charged with obstruction of Congress. They are the faces of a renewed effort by the Justice Department to hold executives accountable for their actions. While their lawyers said the men were scapegoats, Attorney General Eric H. Holder Jr. said at a news conference, “I hope that this sends a clear message to those who would engage in this kind of reckless and wanton conduct.”

The defense lawyers were adamant that their clients would contest the charges, and prosecutors said that the federal investigations were continuing.

Legal scholars said that by charging individuals, the government was signaling a return to the practice of prosecuting officers and managers, and not just their companies, in industrial accidents, which was more common in the 1980s and 1990s.

“If senior managers cut corners, or if they make decisions that put people in harm’s way, then the criminal law is appropriate,” said Jane Barrett, a University of Maryland law professor and former federal prosecutor.

She noted that it was unusual for the Justice Department to prosecute individual corporate officers in recent years, including in the 2005 BP Texas City refinery explosion that killed 15 workers, where only the company was fined.

BP said on Thursday it would pay $4.5 billion in fines and other payments, and the corporation pleaded guilty to 14 criminal charges in connection with spill. The $1.26 billion in criminal fines was the highest since Pfizer in 2009 paid $1.3 billion for illegally marketing an arthritis medication.

The crew was drilling 5,000 feet under the sea floor 41 miles off the Louisiana coast in April 2010 when they lost control of the well during its completion. They tested the pressure of the well, but misinterpreted the test results and underestimated the pressure exerted by the flow of oil or gas up the well. Had the results been properly interpreted, operations would have ceased.

Mr. Vidrine and Mr. Kaluza were negligent in their reading of the kicks of gas popping up from the well that should have suggested that the Deepwater Horizon crew was fast losing control of the ill-fated Macondo well, according to their indictment, and they failed to act or even communicate with their superiors. “Despite these ongoing, glaring indications on the drill pipe that the well was not secure, defendants Kaluza and Vidrine again failed to phone engineers onshore to alert them to the problem, and failed to investigate any further,” the indictment said.

The indictment said they neglected to account for abnormal pressure test results on the well that indicated problems, accepting “illogical” explanations from members of the crew, which caused the “blowout of the well to later occur.”

In a statement, Mr. Kaluza’s lawyers said: “No one should take any satisfaction in this indictment of an innocent man. This is not justice.”

Bob Habans, a lawyer for Mr. Vidrine, called the charges “a miscarriage of justice.”

“We cannot begin to explain or understand the misguided effort of the United States attorney and the Department of Justice to blame Don Vidrine and Bob Kaluza, the other well site leader, for this terrible tragedy.”

Several government and independent reports over the last two years have pointed to sloppy cement jobs in completing the well or the poor design of the well itself as major reasons for the spill. But none of the three was indicted in connection with those problems.

Mr. Rainey was a far more senior executive, one who was known around Houston and the oil world as perhaps the most knowledgeable authority on Gulf oil and gas deposits. According to his indictment, Mr. Rainey obstructed Congressional inquiries and made false statements by underestimating the flow rate to 5,000 barrels a day even as millions were gushing into the Gulf.

Campbell Robertson contributed reporting.

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Tax hikes, improving economy bode well for state budget

SACRAMENTO — Although a modest deficit will linger into next year, California's finances are poised for marked improvement as the state reaps the benefits of newly approved taxes and the economy continues to recover, the Legislature's top budget advisor said Wednesday.

Schools can expect more money eventually, and the state may even start to see surpluses, according to Legislative Analyst Mac Taylor, who provides nonpartisan counsel to lawmakers. He said a healthier budget should then allow officials to turn their attention to California's other chronic financial issues, such as an unstable tax base and an expensive debt burden.

In a report released Wednesday, his office estimates that state officials will need to close a $1.9-billion budget gap in the spending plan they pass next summer, about one-eighth of the problem they faced this year. The gap is smaller than it might have been because state officials, as part of a regular process, recalculated how much tax revenue arrived in recent years, resulting in a $1.4-billion boost.

A big chunk of the remaining deficit is due to the lagging stock price of Facebook, which went public this year. The analyst's office said there would be $626 million less in tax revenue than expected from the initial public offering. The state also is saving far less from closing redevelopment agencies than officials had projected.

Nonetheless, Gov. Jerry Brown hailed the analyst's forecast.

"This report validates the hard work the state has done to cut its deficit and balance its budget over the long term," he said in a statement. "California is now on the path for a fair and sustainable budget as long as we continue to exercise fiscal discipline and pay down debt."

Chipping away at California's most intractable budget problems has been Brown's primary goal since beginning his second tour of duty in Sacramento in 2010.

On election day last week, voters approved Proposition 30, the governor's plan to temporarily raise the sales tax and income taxes on high earners, providing an estimated $6 billion annually for state coffers. Voters also passed Proposition 39, which changes the corporate tax code to raise an estimated $1 billion a year for the general fund and clean energy projects.

Within six years, the report said, California could find itself with a $9-billion surplus, a stark turnaround after many years of severe budget deficits. But continuing financial challenges could quickly eat up any extra money.

Taylor said surplus dollars may be used to shore up the underfunded public pension system or pay back more debt. "We still have a lot of catching up to do," he said.

There will also be intense pressure from activists to restore funding to social services cut during many budget crises.

"We're turning the corner," said Chris Hoene, executive director of the California Budget Project in Sacramento, a think tank that advocates for low-income families. "We should approach the budget with some cautious optimism."

Despite the improved financial outlook, Taylor said the state will probably burn through its existing reserve of nearly $1 billion and end up with a nearly $1-billion deficit by the end of the current fiscal year.

Most of the problem, he said, is the lack of savings from dissolving redevelopment agencies. The state may reap only $1.4 billion, he said, less than half of the Brown administration's estimate.

Facebook, once expected to provide California with a tax windfall, has also been a disappointment. Brown administration officials expected to reap $1.9 billion in taxes by the end of the current fiscal year from the company's initial public offering, but the report issued Wednesday said they should count on only $1.25 billion.

Kim Rueben, a senior fellow at the nonpartisan Tax Policy Center in Washington, D.C., said California needs to be more careful when dealing with potential tax windfalls like Facebook, perhaps routing the money to a separate reserve fund.

"You don't want it to be in your day-to-day budget," she said.

chris.megerian@latimes.com

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'Shirtless' FBI Agent Who Hunted Petraeus Also Helped Stop LA Bombing

The FBI agent responsible for the downfall of two of the military’s most respected generals helped stop a terrorist from bombing Los Angeles International Airport and shot a man who attacked him with a knife at the gates of a military base. And he kicked off an investigation that not only upended Washington, it has many wondering if the FBI exceeded its authority.

Meet Frederick W. Humphries II — finally. Humphries, identified by The New York Times, is the mystery Florida-based FBI agent central to the ongoing scandal that brought down CIA Director David Petraeus and threatens the career of the Afghanistan war commander. At nearly every key moment in the tawdry sex scandal, Humphries has been there, lurking in the shadows, sometimes without his shirt on. No wonder colleagues interviewed by the Times described him as “obsessive.” Even before anyone knew who he was, someone set up a parody Twitter account for him, @shirtlessFBIguy.

In 1999, Humphries used his French language skills to interrogate a Francophone suspect. And that helped the Bureau find and stop Ahmed Ressam from bombing LAX airport in what would come to be known as the Millennium Plot, according to a Seattle Times piece. Described as “wiry [and] high-energy,” the former Army officer unraveled the cover story of a member of the Millennium Plot by calling bull on the operative’s fake Quebecois accent. Eleven years later, Humphries would shoot and kill a “disturbed knife-wielding man” who attacked him at the gates of MacDill Air Force Base in Tampa.

Humphries knew Tampa socialite Jill Kelley, an unofficial “ambassador” between Tampa and MacDill, home of U.S. Central Command, run in 2010 and 2011 by Petraeus and Gen. John Allen, now the commander of the Afghanistan war. When Kelley started receiving harassing e-mails this summer, Kelley asked her FBI friend Humphries to look into it. Humphries agreed, but soon found himself taken off the case, according to the Times. That would prove to be a fateful move.

The FBI has broad authorities over cyber-stalking investigations. “When something of this nature comes to our attention,” spokesman Paul Bresson tells Danger Room, “we work in close coordination with prosecutors to evaluate the facts and circumstances with respect to jurisdiction and potential violations of federal law.”

Not everyone is buying that the FBI would normally take up the case of a socialite receiving unwanted, nasty e-mails. “This is highly irregular. Highly, highly irregular. With a case of e-mail harassment, we’d normally say: we’re kind of busy, contact your local police,” a former federal prosecutor tells Danger Room. “You know that old cliche ‘let’s not make a federal case out of it?’ Well, in this case, it rings true.”

In any case, the feds did make a federal case out of it — just without Humphries. But Humphries didn’t let the case go. He sent shirtless pictures of himself to Kelley, something a lawyer for a law-enforcement guild who spoke with Humphries described to the Times as a “joke” that the national media have misunderstood. Still, his friends characterized him as “passionate” and “kind of an obsessive type.” It showed.

Humphries did not take kindly to being removed from a case he kickstarted. Evidently, he knew that the FBI expanded the case from cyber-harassment to one determining whether Paula Broadwell, Petraeus’ mistress who harassed Kelley, received classified information from Petraeus. Humphries was convinced there was a Bureau cover-up to protect Obama, and in late October went to Rep. Dave Reichert, a Washington state Republican with whom Reichert had worked previously. Reichert — who would not respond to Danger Room’s queries — took Humphries to Rep. Eric Cantor, the GOP majority leader, on October 27.

Cantor and his staff met with Humphries shortly after Reichert made the introduction. But they did not know what his motivations were. Nor could they judge Humphries’ credibility. Worse, they had no idea the FBI had Petraeus under investigation in the first place. After conferencing, they decided the prudent thing to do was to take the information from the investigation to FBI Director Robert Mueller’s office. They did so on October 31, around the same time that FBI agents interviewed Petraeus and reportedly told him he was not under suspicion of leaking classified information.

A week later, on November 6 — election day — Mueller informed James Clapper, the director of national intelligence and Petraeus’ boss, of the investigation. The House Judiciary Committee has written to Mueller to determine, among other things, why Mueller waited a week, and why he informed neither the relevant congressional oversight committees or the White House. (Mueller on Wednesday briefed the leaders of the House and Senate intelligence committees.) But Clapper essentially sealed Petraeus’ fate, urging him to deliver the resignation from the CIA that ultimately came on Friday.

There are questions about whether the FBI has exceeded its bounds in the case Humphries launched. While the FBI has wide latitude to investigate potential leaks of classified intelligence — the focus of the ongoing inquiry into Broadwell that brought Petraeus down — it is far less clear what authority the FBI had to give the Pentagon flirtatious emails between Allen and Kelley that came to agents’ attention in the course of that inquiry.

The Pentagon, whose inspector general is now investigating Allen, says there is no evidence Allen gave Kelley classified material or otherwise compromised national security. Under the Uniformed Code of Military Justice, adultery is a crime. But a Defense official on Tuesday told reporters that Allen denies cheating on his wife, and the emails contain some “flirtatious” exchanges between the two. Yet while the so-called “Plain Sight Doctrine” holds that investigators can pursue evidence of a crime that they encounter in an unrelated investigation, flirtation is not evidence of adultery.

While many of the facts of Allen’s case have yet to be determined, some legal experts wonder if the FBI was required to ignore the emails between Allen and Kelley.

“Whether the supposed basis for the investigation was cyber-harassment, disclosure of classified information, or the vulnerability of the CIA chief to blackmailing, it’s difficult to see how a military commander’s flirtatious emails are relevant,” says Rachel Levinson-Waldman, a lawyer who studies information sharing between national-security agencies at New York University’s Brennan Center for Justice. In such a case, the FBI is usually required to “minimize” — that is, ignore or destroy — information on unrelated parties that it inadvertently collected. In practice, though, Levinson-Waldman cautions, FBI officials have strong incentives to hold on to such material, for fear of jeopardizing potential future investigations.

The FBI, argues the Electronic Frontier Foundation’s Kurt Opsahl, appears to have engaged in “a series of stretches,” to get from investigating Broadwell to turning over Allen’s communications with Kelley to the Defense Department. “I don’t see how that email [traffic] is necessary or how there’s any kind of probable cause to believe there’s any link to the crimes the FBI was investigating,” Opsahl says.

In a statement released by his military lawyer late Wednesday, Allen vowed “to fully cooperate with the Inspector General Investigators” while his nomination to be NATO commander is officially on hold. There’s a possibility that Allen will be vindicated. But if he’s not, he has overzealous FBI investigators to thank — including Humphries, who started it all.

– additional reporting by Noah Shachtman

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BAFTA Shifts Corporate Sponsors for Film Awards

LOS ANGELES (TheWrap.com) – You can’t buy awards, but when it comes to the BAFTAs you can certainly sponsor them.

The British Academy of Film and Television is switching up its corporate partners for its annual film awards ceremony. That means it’s out with telecom company Orange, and in with broadband network EE.

The overhaul will require some rechristening of BAFTA‘s hardware. After 15 years with Orange in the title, the ceremony will now be known as the EE British Academy Film Awards. Moreover, its award for best newcomer will now be named the EE Rising Star Award.

The BAFTAs are the U.K. equivalent of the Oscars. EE is a sister company of Orange, so the shakeup is not seismic.

The EE British Academy Film Awards will be broadcast on the BBC on February 10, 2013 and will be hosted by satirist Stephen Fry.

TV News Headlines – Yahoo! News

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F.D.A. Seeks More Control Over Drug Compounders

Susan Walsh/Associated Press

Barry Cadden, chief pharmacist for the company that made the contaminated drugs, at a Congressional hearing on Wednesday.

WASHINGTON — The commissioner of the Food and Drug Administration on Wednesday called on Congress to empower the agency to better police compounding pharmacies like the one at the center of a national meningitis outbreak. But Republican lawmakers pushed back, arguing that the agency has enough authority, leaving it unclear whether the House would support efforts to increase oversight.

In a contentious hearing of the House Committee on Energy and Commerce, the commissioner, Dr. Margaret Hamburg, testified that a tangle of conflicting court decisions and the lack of a clear definition of compounding in the law had limited the agency’s ability to build a case against compounding pharmacies that fail to meet basic safety standards.

“There is an enormous lack of clarity, and we should seize this opportunity to address it,” Dr. Hamburg said.

In many cases, such pharmacies are not required to give investigators access to their books, agency officials say. Federal regulators sometimes have to appeal to local courts to gain access to the pharmacies or their records, although, by law, large drug manufacturers must submit to regular inspections. Compounding pharmacies are now regulated primarily by the states.

Dr. Hamburg’s remarks signaled that the Obama administration will press for new legislation in response to the meningitis outbreak, which was caused by contaminated pain medication made by a compounding pharmacy in Massachusetts. So far, 461 people have fallen ill, and 32 of them have died.

The central question is whether the F.D.A. has enough power to crack down on large-scale compounding companies that behave more like drug manufactures than the neighborhood pharmacies that mix medicines for individual patients — the traditional purview of compounders.

Republicans on the committee said the outbreak appeared to have been preventable under existing regulations.  

“After a tragedy like this, the first question we all ask is, ‘Could this have been prevented?’ ” said Representative Cliff Stearns, Republican of Florida, who is chairman of the Subcommittee on Oversight and Investigations. After reviewing documents, he said, “The answer appears to be yes.”

The agency’s critics maintain that the 1938 Food Drug and Cosmetic Act provides it with plenty of authority, but that the F.D.A. failed to use it to shut down the Massachusetts pharmacy, the New England Compounding Center.  

Barry Cadden, the chief pharmacist at the company, and one of the principal owners, invoked his Fifth Amendment right to remain silent in response to every question posed to him during the hearing.

The agency has had dealings with the compounding center in the past, including an inspection in 2002 after reports of problems and a warning letter to the company in 2006. The agency argued that those steps failed to head off the meningitis outbreak in part because the company took advantage of gray areas in the law to elude oversight.

 “Throughout this time, N.E.C.C. has repeatedly disputed F.D.A.’s jurisdiction over its facility,” Dr. Hamburg said in her written testimony.

Republicans on the committee repeatedly cited the 2006 warning letter and the agency’s recent criminal investigation, which involved federal agents seizing computers from the company’s offices.

“We’re just not buying it, doctor,” said Representative Michael C. Burgess, Republican of Texas. “You lack the authority to do anything, yet you send a letter like this?”

Democrats came to Dr. Hamburg’s defense.

 “We need to work together to come up with a solution, but instead what I’m hearing from my Republican colleagues is they want to prosecute the Food and Drug Administration,” said Representative Henry A. Waxman, Democrat of California. “If there’s any ambiguity, it’s our job to clear it up. Why are we looking for anybody to blame other than the company?”

Representative Edward J. Markey, Democrat of Massachusetts, who has proposed legislation to close what he calls regulatory loopholes, said he believed the committee would eventually come together and pass a bill.

Dr. Hamburg proposed requiring large-scale compounders to register with the F.D.A. and report any problems with their products to the agency. She also recommended new labeling requirements that would make clear the origin and the risks of compounded drugs.

Large-scale pharmacy compounding has greatly expanded since the early 1990s, partly because hospitals are increasingly outsourcing the making of the compounded drugs that they need and also because of widespread shortages of medicines made by the big drug manufacturers.

Jess Bidgood contributed reporting from Boston.

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Obama Meets C.E.O.’s as Fiscal Reckoning Nears

Luke Sharrett for The New York Times

Ursula M. Burns, chief of Xerox, said the president discussed few specifics of a potential agreement but emphasized that “we cannot go over the fiscal cliff.”

WASHINGTON — President Obama extended an olive branch to business leaders Wednesday, seeking their support as he prepared to negotiate with Congressional Republicans over the fiscal impasse in Washington.

If Congress and the president cannot reach a deal to reduce the deficit by January, more than $600 billion in tax increases and spending cuts will go into effect immediately — a prospect many chief executives and others warn could tip the economy back into recession.

Even so, Mr. Obama has some fence-mending to do before he can count on any serious backing from the business community.

“The president brought up that he hadn’t always had the best relationship with business, and he didn’t think he deserved that, but he understood that’s where things were and wanted it to be better,” said David M. Cote, chief executive of Honeywell. He was one of a dozen corporate leaders invited to meet Mr. Obama at the White House for 90 minutes Wednesday afternoon, after the president’s first news conference since the election.

While Mr. Obama did not present a detailed plan at Wednesday’s meeting or reveal what he would propose in terms of new corporate taxes, he strongly reiterated that he would not allow tax cuts for the middle class to expire. The president, according to attendees and aides, said he was committed to a balanced approach of reductions in entitlements and other government spending and increases in revenue.

With time running out, many people expect the president and Republican leaders in Congress to come up with a short-term compromise that prevents the full slate of tax increases and spending cuts from hitting in January. That would give both sides more time to come up with a far-reaching deal on entitlement spending, even as they work on a broad tax overhaul later next year.

One corporate official briefed on the meeting said that the chief executives came away with a sense that Mr. Obama was poised to present a more formal proposal in the next few days, but that he did not press them for support on particular policies. “It was more of a back and forth,” he said.

The chief executives from some of the country’s biggest and best-known companies, including Procter & Gamble and I.B.M., were not unified on everything, according to one who was interviewed after the meeting.

Many of the executives who described the meeting would speak only on condition of anonymity.

The outreach to business comes as both the White House and corporate America maneuver ahead of the year-end deadline, as well as the beginning of Mr. Obama’s second term. Many executives were put off by what they saw as antibusiness rhetoric coming from the White House in his first term, and many also oppose tax increases on the rich that Mr. Obama favors but would hit them personally.

Both sides have plenty to gain from a better relationship. Business leaders want to buffer their image after the recession and the financial crisis, while Mr. Obama would gain valuable leverage if he could persuade even a few chief executives to come out in favor of higher taxes on people with incomes over $250,000.

Lloyd C. Blankfein, chief executive of Goldman Sachs, publicly endorsed higher tax rates in an opinion article published in The Wall Street Journal on Wednesday.

“I believe that tax increases, especially for the wealthiest, are appropriate, but only if they are joined by serious cuts in discretionary spending and entitlements,” he wrote.

While Mr. Blankfein and other Wall Street leaders have been speaking out about the dangers of the fiscal impasse, only one executive from the financial services industry, Kenneth I. Chenault of American Express, was at Wednesday’s meeting.

Afterward, the corporate leaders seemed pleased with the tone of the meeting but cautious about the prospect of finding common ground with the White House on the budget choices facing Congress and the president.

“I’d say everybody came away feeling pretty good about the whole discussion,” Mr. Cote said. “Now, all of us are C.E.O.’s, so we’ve learned not to confuse words with results. And that’s what we still need to see.”

Ursula M. Burns, chief executive of Xerox, who was also at the meeting, said afterward that it was clear that “we’re going to have to work through some sticking points.” But while “we didn’t get into too many specifics,” she said, it was also made clear that “we cannot go over the fiscal cliff.”

Ms. Burns’s comments about the potentially dire consequences of the fiscal impasse echoed those of other chief executives, including many in the Business Roundtable, which began an ad campaign Tuesday calling on lawmakers to resolve the issue quickly. The Campaign to Fix the Debt, a new group with a $40 million budget and the support of many Fortune 500 chiefs, began its own ad campaign on Monday.

Michael T. Duke, chief executive of Wal-Mart Stores, warned in a statement after the meeting that “before the end of the year, Washington needs to find an agreement to avoid the fiscal cliff.” He said Walmart customers “are working hard to adapt to the ‘new normal,’ but their confidence is still very fragile. They are shopping for Christmas now, and they don’t need uncertainty over a tax increase.”

 

Helene Cooper reported from Washington and Nelson D. Schwartz from New York. Jackie Calmes contributed reporting from Washington.

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GOP senators cool to idea of Susan Rice as secretary of State

WASHINGTON — Senate Republicans signaled stiffening resistance Tuesday to the Obama administration's possible nomination of U.N. Ambassador Susan Rice to replace Hillary Rodham Clinton as secretary of State.

GOP strategists said lawmakers would use such a nomination as an opening for an extended examination of how the administration handled the Sept. 11 militant attack on the U.S. mission in Benghazi, Libya, that killed four Americans, including the U.S. ambassador. Although the Senate rarely rejects a president's Cabinet picks, the strategists said, the process could be so painful and lengthy that Obama might come to regret his choice.

A senior Republican aide said he couldn't predict whether the nomination would be voted down, but "the question is, is this worth spending political capital and taking punches on a subject they'd like to distance themselves from?"

"Whether it's fair to her or not, she's become a poster child for perceptions that there's been a coverup by the administration," he said, speaking anonymously because he was not authorized to address the topic publicly.

Some Senate Republicans have already begun discussing how they would question Rice, he said, and plan to gather information from House Republican colleagues to bore in on questions they say the administration has not yet satisfactorily answered.

Sen. Jon Kyl (R-Ariz.), the No. 2 Senate Republican, told reporters he considered Rice "tainted" by her role in the administration's handling of Benghazi, and recommended that the White House instead choose Sen. John F. Kerry (D-Mass.), chairman of the Senate Foreign Relations Committee, whom administration officials have also been considering for the diplomatic post.

Administration officials said that Rice, a pillar of Obama's foreign policy team since the 2008 election campaign, was a leading candidate for the post, and that they would not be deterred by Republican warnings. Officials and some others familiar with the process predicted that the GOP would eventually end its resistance to Rice because it would become clear that her disputed comments after the attack were prepared by other U.S. officials for her appearances on Sept. 16 talk shows.

Rice said in those TV appearances that the attack was motivated by anger at a U.S.-made film trailer that denounced the prophet Muhammad, and that it was not a planned assault.

Sen. Bob Corker (R-Tenn.), who is expected to become the ranking minority member of the Senate Foreign Relations Committee, found it "beyond belief" that Rice could have described the attack as motivated by anger over the film, when U.S. officials in Benghazi had told officials in Washington during the attack that it was a terrorist assault.

"I still don't know how anybody of that capacity could have been on television five days later saying the things that were said," Corker said. "I don't know how that could happen."

On Sunday, Sen. Lindsey Graham of South Carolina, an influential Republican on foreign policy issues, predicted that Rice's nomination would have a difficult time making it through the Senate. He said he would not vote for Rice unless she provided more satisfactory explanations of her actions.

A single senator can hold up a nomination if he or she is determined to do so. But a more likely avenue to blocking confirmation would be with a filibuster, aides said. Sixty votes are required to end a filibuster — more than the number of senators in the Democratic caucus.

Senate aides said the Republican caucus, which is regrouping after the election defeat, might decide that shooting down Obama's choice would be a way of underscoring its unhappiness with the administration's treatment of the Benghazi issue. But historically, the Senate has deferred to presidents on Cabinet picks, and Republicans would run the risk of looking unreasonable.

Clinton's intention to leave the post has been public for more than a year, and the candidacies of Rice and Kerry have been discussed for months. Both are interested in the job.

The Washington Post reported Tuesday that Rice was the leading candidate for the diplomatic post and Kerry, a Vietnam veteran, was under consideration as secretary of Defense. If Kerry took either post, Republicans would have a chance to win his Senate seat in a special election — further narrowing the Democrats' majority.

Sources who have been familiar with past nominations say that Obama confers with only a small circle on his top choices, and sometimes emerges with surprise selections. Jim Yong Kim, Obama's choice to head the World Bank, was one such case.

As a second-term president, Obama has wide latitude to pick the candidate he believes will best serve his interests. He is under less pressure to satisfy political constituencies, some Democrats pointed out.

Jay Carney, the White House press secretary, declined to comment on the nomination, but said Obama believed Rice had done an "excellent job" at the United Nations.

paul.richter@latimes.com

Michael Memoli and Christi Parsons in the Washington bureau contributed to this report.

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