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.
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.”
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.
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.”
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.
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.
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."
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)
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.
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.
