Richard Adams dies at 65; gay marriage pioneer









Thirty-seven years ago, Richard Adams made history when he and his partner of four years, Anthony Sullivan, became one of the first gay couples in the country to be granted a marriage license. It happened in Boulder, Colo., where a liberal county clerk issued licenses to six same-sex couples in the spring of 1975.


Adams had hoped to use his marriage to secure permanent residency in the United States for Sullivan, an Australian who had been in the country on a limited visa and was facing deportation.


But Colorado's attorney general declared the Boulder marriages invalid. Several months later, Adams and Sullivan received a letter from the Immigration and Naturalization Service that denied Sullivan's petition for resident status in terms that left no doubt about the reason:





"You have failed to establish that a bona fide marital relationship can exist between two faggots," the notification read.


Adams, who later filed the first federal lawsuit demanding recognition of same-sex marriages, died Monday at his home in Hollywood after a brief illness, said his attorney, Lavi Soloway. He was 65.


Soloway described Adams and Sullivan as "pioneers who stood up and fought for something nobody at that time conceived of as a right, the right of gay couples to be married.


"Attitudes at the time were not supportive, to put it mildly," Soloway said. "They went on the Donahue show and people in the audience said some pretty nasty things. But they withstood it all because they felt it was important to speak out."


Born in Manila on March 9, 1947, Adams immigrated to the U.S. with his family when he was 12. He grew up in Long Prairie, Minn., studied liberal arts at the University of Minnesota and became a naturalized U.S. citizen in 1968.


By 1971 he was working in Los Angeles, where he met Sullivan and fell in love.


Four years later, the two men heard about Boulder County Clerk Clela Rorex: She had decided to issue marriage licenses to gay couples after the Boulder district attorney's office advised her that nothing in state law explicitly prohibited it.


On April 21, 1975, they obtained their license and exchanged marriage vows at the First Unitarian Church of Denver.


The Boulder marriages attracted national media attention, including an article in the New York Times that called Colorado "a mini-Nevada for homosexual couples." Rorex received obscene phone calls, as well as a visit from a cowboy who protested by demanding to marry his horse. (Rorex said she turned him down because the 8-year-old mare was underage.)


After their marriage, Adams and Sullivan filed a petition with the INS seeking permanent residency for Sullivan as the spouse of a U.S. citizen. In November 1975, they received the immigration agency's derogatory letter and lodged a formal protest. Officials reissued the denial notice without the word "faggots."


They took the agency to court in 1979, challenging the constitutionality of the denial. A federal district judge in Los Angeles upheld the INS decision, and Adams and Sullivan lost subsequent appeals.


In a second lawsuit, the couple argued that Sullivan's deportation after an eight-year relationship with Adams would constitute an "extreme hardship." In 1985 a three-judge panel of the U.S. 9th Circuit Court of Appeals rejected the hardship argument and opened the way for Sullivan to be sent back to Australia.


Because Australia had already turned down Adams' request for residency in that country, the couple decided the only way they could stay together was to leave the U.S. In 1985, they flew to Britain and drifted through Europe for the next year.


"It was the most difficult period because I had to leave my family as well as give up my job of 18 1/2 years. It was almost like death," Adams said in "Limited Partnership," a documentary scheduled for release next year.


The pair ended their self-imposed exile after a year and came home. They lived quietly in Los Angeles to avoid drawing the attention of immigration officials, but in recent years began to appear at rallies supporting same-sex marriage, Soloway said.


They were encouraged by new guidelines issued by the Obama administration this fall instructing immigration officials to stop deporting foreigners in long-standing same-sex relationships with U.S. citizens.


Although the policy change came more than three decades after Adams and Sullivan raised the issue, it gave Adams "a sense of vindication," Soloway said.


The day before he died, Sullivan told him that the most important victory was that they were able to remain a couple.


"Richard looked at me," Sullivan told Soloway, "and said, 'Yeah, you're right. We've won.'"


Adams, who was an administrator for a law firm until his retirement in 2010, is survived by Sullivan; his mother, Elenita; sisters Stella, Kathy, Julie and Tammie; and a brother, Tony.


elaine.woo@latimes.com





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2 bombers target mobile phone firms in Nigeria






KANO, Nigeria (AP) — Authorities blame a radical Islamist sect for twin suicide car bombings targeting two major mobile phone companies, an official said Saturday, blacking out a top operator’s network in most of Nigeria‘s northern commercial hub.


A suicide bomber drove an explosive-laden car into the facilities of the Nigerian subsidiary of Bharti Airtel Ltd. of India at about 8 a.m. in the city of Kano, said Capt. Iweha Ikedichi, who speaks for a special taskforce deployed in Kano to reduce the threat of the Islamic rebels known as Boko Haram. The attack left an Airtel worker injured, authorities said. It also damaged a switch station, said James Eze, an Airtel spokesman. He said the company was still assessing how bad the damage was, but declined to comment further.






Switch stations control the regional mobile phone network and if they are seriously damaged, the entire network could go down. An Airtel staff who spoke on condition of anonymity because he is not authorized to speak to the press said the targeted switch station covered six northern states, including Kano. But while Airtel’s network appeared to be down across Kano Sunday, calls to lines in some of the other states went through.


At about the same time as the Airtel attack, another bomber targeted the facilities of the Nigerian subsidiary of South Africa-based MTN Group Ltd., about two miles (three kilometers) away. That attack was botched by security officers who shot the bomber, causing an explosion at the company’s gate, Ikedichi said.


The target of the foiled attack was MTN’s switch station, said Funmilayo Omogbenigun, spokeswoman for Nigeria’s largest cell phone network provider.


Authorities suspect the Boko Haram sect is behind the attacks. The group is held responsible for more than 770 deaths this year alone, according to figures compiled by The Associated Press. Boko Haram’s campaign of bombings and shootings has targeted mosques, churches, schools, universities and government buildings. But, four months ago, the group broadened its scope by attacking mobile phone towers for the first time.


In September, a series of attacks damaged more than 31 towers operated by all the major mobile phone providers in the country. Other attacks have occurred since then, further straining the one link Nigeria relies on for communication in a country with very few landlines. While no one claimed responsibility for the attacks, the Islamist sect had threatened mobile phone companies earlier in the year, warning that they would be targeted for cooperating with the government to flush out its members.


In Nigeria, Africa’s most populous country with more than 160 million people, mobile phones serve as a valuable lifeline in both cities and rural communities. Landlines remain almost nonexistent, as the state-run telephone company has collapsed and repeated efforts to privatize it have failed. More 87 million mobile phone lines were in use in 2009, according to estimates.


“Never would we have expected that telecommunications could be targeted,” said Damien Udeh, a spokesman for the Association of Licensed Telecommunications Operators of Nigeria. “It portends a dangerous situation for everybody, especially government.”


___


Associated Press writer Yinka Ibukun contributed to this report from Lagos, Nigeria


Wireless News Headlines – Yahoo! News





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Ashton Kutcher files for divorce from Demi Moore


LOS ANGELES (AP) — Ashton Kutcher filed court papers Friday to end his seven-year marriage to actress Demi Moore.


The actor's divorce petition cites irreconcilable differences and does not list a date that the couple separated. Moore announced last year that she was ending her marriage to the actor 15 years her junior, but she never filed a petition.


Kutcher's filing does not indicate that the couple has a prenuptial agreement. The filing states Kutcher signed the document Friday, hours before it was filed in Los Angeles Superior Court.


Kutcher and Moore married in September 2005 and until recently kept their relationship very public, communicating with each other and fans on the social networking site Twitter. After their breakup, Moore changed her name on the site from (at)mrskutcher to (at)justdemi.


Kutcher currently stars on CBS' "Two and a Half Men."


Messages sent to Kutcher's and Moore's publicists were not immediately returned Friday.


Moore, 50, and Kutcher, 34, created the DNA Foundation, also known as the Demi and Ashton Foundation, in 2010 to combat the organized sexual exploitation of girls around the globe. They later lent their support to the United Nations' efforts to fight human trafficking, a scourge the international organization estimates affects about 2.5 million people worldwide.


Moore was previously married to actor Bruce Willis for 13 years. They had three daughters together — Rumer, Scout and Tallulah Belle — before divorcing in 2000. Willis later married model-actress Emma Heming in an intimate 2009 ceremony at his home in Parrot Cay in the Turks and Caicos Islands that attended by their children, as well as Moore and Kutcher.


Kutcher has been dating former "That '70s Show" co-star Mila Kunis.


The divorce filing was first reported Friday by People magazine.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP.


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Genetic Gamble : Drugs Aim to Make Several Types of Cancer Self-Destruct


C.J. Gunther for The New York Times


Dr. Donald Bergstrom is a cancer specialist at Sanofi, one of three companies working on a drug to restore a tendency of damaged cells to self-destruct.







For the first time ever, three pharmaceutical companies are poised to test whether new drugs can work against a wide range of cancers independently of where they originated — breast, prostate, liver, lung. The drugs go after an aberration involving a cancer gene fundamental to tumor growth. Many scientists see this as the beginning of a new genetic age in cancer research.




Great uncertainties remain, but such drugs could mean new treatments for rare, neglected cancers, as well as common ones. Merck, Roche and Sanofi are racing to develop their own versions of a drug they hope will restore a mechanism that normally makes badly damaged cells self-destruct and could potentially be used against half of all cancers.


No pharmaceutical company has ever conducted a major clinical trial of a drug in patients who have many different kinds of cancer, researchers and federal regulators say. “This is a taste of the future in cancer drug development,” said Dr. Otis Webb Brawley, the chief medical and scientific officer of the American Cancer Society. “I expect the organ from which the cancer came from will be less important in the future and the molecular target more important,” he added.


And this has major implications for cancer philanthropy, experts say. Advocacy groups should shift from fund-raising for particular cancers to pushing for research aimed at many kinds of cancer at once, Dr. Brawley said. John Walter, the chief executive officer of the Leukemia and Lymphoma Society, concurred, saying that by pooling forces “our strength can be leveraged.”


At the heart of this search for new cancer drugs are patients like Joe Bellino, who was a post office clerk until his cancer made him too sick to work. Seven years ago, he went into the hospital for hernia surgery, only to learn he had liposarcoma, a rare cancer of fat cells. A large tumor was wrapped around a cord that connects the testicle to the abdomen. “I was shocked,” he said in an interview this summer.


Companies have long ignored liposarcoma, seeing no market for drugs to treat a cancer that strikes so few. But it is ideal for testing Sanofi’s drug because the tumors nearly always have the exact genetic problem the drug was meant to attack — a fusion of two large proteins. If the drug works, it should bring these raging cancers to a halt. Then Sanofi would test the drug on a broad range of cancers with a similar genetic alteration. But if the drug fails against liposarcoma, Sanofi will reluctantly admit defeat.


“For us, this is a go/no-go situation,” said Laurent Debussche, a Sanofi scientist who leads the company’s research on the drug.


The genetic alteration the drug targets has tantalized researchers for decades. Normal healthy cells have a mechanism that tells them to die if their DNA is too badly damaged to repair. Cancer cells have grotesquely damaged DNA, so ordinarily they would self-destruct. A protein known as p53 that Dr. Gary Gilliland of Merck calls the cell’s angel of death normally sets things in motion. But cancer cells disable p53, either directly, with a mutation, or indirectly, by attaching the p53 protein to another cellular protein that blocks it. The dream of cancer researchers has long been to reanimate p53 in cancer cells so they will die on their own.


The p53 story began in earnest about 20 years ago. Excitement ran so high that, in 1993, Science magazine anointed it Molecule of the Year and put it on the cover. An editorial held out the possibility of “a cure of a terrible killer in the not too distant future.”


Companies began chasing a drug to restore p53 in cells where it was disabled by mutations. But while scientists know how to block genes, they have not figured out how to add or restore them. Researchers tried gene therapy, adding good copies of the p53 gene to cancer cells. That did not work.


Then, instead of going after mutated p53 genes, they went after half of cancers that used the alternative route to disable p53, blocking it by attaching it to a protein known as MDM2. When the two proteins stick together, the p53 protein no longer functions. Maybe, researchers thought, they could find a molecule to wedge itself between the two proteins and pry them apart.


The problem was that both proteins are huge and cling tightly to each other. Drug molecules are typically tiny. How could they find one that could separate these two bruisers, like a referee at a boxing match?


In 1996, researchers at Roche noticed a small pocket between the behemoths where a tiny molecule might slip in and pry them apart. It took six years, but Roche found such a molecule and named it Nutlin because the lab was in Nutley, N.J.


But Nutlins did not work as drugs because they were not absorbed into the body.


Roche, Merck and Sanofi persevered, testing thousands of molecules.


At Sanofi, the stubborn scientist leading the way, Dr. Debussche, maintained an obsession with p53 for two decades. Finally, in 2009, his team, together with Shaomeng Wang at the University of Michigan and a biotech company, Ascenta Therapeutics, found a promising compound.


The company tested the drug by pumping it each day into the stomachs of mice with sarcoma.


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Naomi Gleit helps keep Facebook growing









The gig: As senior director of Facebook Inc.'s growth, engagement and mobile team, Naomi Gleit helps grow the social network's 1-billion-plus user base.


Facebook employee No. 29: Few people outside Facebook have heard of Gleit, but she's the second-longest-serving Facebook employee, after Facebook founder Mark Zuckerberg. Gleit, 29, talked her way into a job at Facebook on July 18, 2005 — her birthday. She was Facebook's 29th employee, coming on board shortly after the company hit 1 million users and before anyone had an inkling of the colossus it would become.


Dogged spirit: Unlike most other early employees who eventually dispersed to seek new fortunes, Gleit says she has no intention of leaving Facebook. She gets that tenacity from her "tiger mom," a computer programmer who ferried her to ballet, piano, karate and Chinese lessons, and her Jewish father, an immigration lawyer who took her to Hebrew school, she said. "I know it sounds completely irrational, but I had no doubt in 2005 that Facebook would be something incredible in the future," she said.





Rival social networks: Her passion for Facebook began before she was hired, when she was a Stanford undergraduate studying science, technology and society, an interdisciplinary major. She wrote her senior thesis on why Facebook beat out rival college social networking site Club Nexus at Stanford. (Club Nexus was started by Stanford student and Turkish software engineer Orkut Büyükkökten, who went on to create Orkut, Google's first attempt at a social network.) Getting in on the ground floor at Facebook made her feel like she was taking part in something bigger than herself, the same feeling she got volunteering for six months in a refugee camp in Botswana, she said.


Growing with Facebook: Gleit helped Facebook push beyond colleges to high schools and eventually to everyone. In late 2007, when the torrid growth pace temporarily cooled, Zuckerberg tapped a team of five to reignite it and asked Gleit to lead product management. It fell to the growth team to identify the obstacles to the company's momentum. In a company ruled by engineers, Gleit, who never studied programming, earned respect with her analytical approach and intuitive understanding of people. "I always believed that growth was the most important thing, the most important way to impact the company," she said. There are now more than 150 people on the team. "It's been an incredible learning experience," she said. "Each year is different."


That magic moment: Those who work closely with Gleit say part of her success early on was her ability to seize on the "magic moment" that makes users fall in love with Facebook. She made it simpler to sign up, and she helped people find friends as soon as they joined. She also helped Facebook spread quickly to new countries by enlisting users to translate the service into more than 80 languages. Gleit helps her team parachute into new markets and traverse less-familiar languages and cultures. It's something that comes from her own passion to see the world and have new experiences. She has taught on a Navajo reservation and lived in a Buddhist monastery in Thailand.


One billion users: Around noon Sept. 14, Zuckerberg gathered with Gleit and dozens of employees in front of a big screen as the number of Facebook users crossed 1 billion. "The scale was insane," she said. "But that is not the goal. When Mark talks about his vision for Facebook, he talks about being able to connect everyone in the world to the people that they care about and provide some value for them every single day."


A problem solver: Zuckerberg calls on Gleit for high-profile projects. In May 2010, when Facebook was under siege because of how it was handling users' personal information, he put Gleit in charge of simplifying privacy settings. Last year she worked on a popular feature that lets users subscribe to a News Feed without having to become Facebook friends.


Betting on mobile: Now Gleit is focused on the future: mobile devices and how they can unlock emerging markets. Gleit knew back in 2011 that people would begin to log on to Facebook from mobile devices in greater numbers than from desktops, particularly in the developing world. So she traveled to Tel Aviv to buy Snaptu, which makes software that helps people on low-tech phones access Facebook, and she brought the whole team back to Silicon Valley with her. Now Facebook is surging in popularity on mobile devices in Tokyo and Nairobi, Kenya. "I have always been interested in technology and how it can be used to improve lives," Gleit said.


jessica.guynn@latimes.com





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Obama offers scaled-back plan to limit tax increases









WASHINGTON — With the sudden collapse of House Speaker John A. Boehner's Plan B to avert most year-end tax increases, President Obama and congressional leaders face a daunting choice: compromise in the few days remaining before tax hikes and spending cuts kick in, or call it quits and soar off the "fiscal cliff."


Obama appeared in the White House briefing room late Friday to urge congressional leaders to at least prevent income tax increases on household income of less than $250,000, continue long-term unemployment benefits and delay the mandatory spending cuts set to begin in January.


"Call me a hopeless optimist, but I actually still think we can get it done," Obama said before leaving with his family to spend Christmas in Hawaii.





The president's plea was a retreat from the much broader deal he had sought during private talks with Boehner, which fell apart this week as the Ohio Republican pursued a separate course. By suggesting last-ditch action on priorities that are most important to Democrats, Obama is not likely to attract an enthusiastic GOP response.


Obama talked with Boehner by telephone before he spoke in the briefing room, and he met at the White House with Senate Majority Leader Harry Reid (D-Nev.) — a trusted partner who could help craft a deal in the Senate. All sides expect to return to Washington next week.


"Everybody can cool off; everybody can drink some eggnog, have some Christmas cookies, sing some Christmas carols, enjoy the company of loved ones," the president said. "Think about the obligations we have to the people who sent us here."


Even this more modest request will probably run into opposition from Republicans as they weigh whether to seek a better agreement or stomach the tax hikes that will happen Jan. 1 if nothing is done.


The options carry political and practical calculations for all sides — and could determine not only whether every American sees a bigger tax bill, but also whether Obama's second term will be consumed by more chaotic budget debates.


Although Boehner's stature appears diminished by his failure to persuade GOP colleagues to support his tax plan — which would have raised taxes on incomes over $1 million — Republican support, or at least acquiescence, will be required for congressional action.


That includes Mitch McConnell of Kentucky, the Senate minority leader. Obama will face continued pressure to sweeten his budget plan so McConnell does not put up a filibuster fight.


McConnell is a close-to-the-vest operator eyeing his own run for reelection in two years. If a budget deal cleared the Senate, that would put pressure on Boehner to bring it to a vote — even if most of his Republican colleagues opposed it — and allow it to pass with Democratic support. That would threaten his authority as speaker, which stems, in part, from controlling what legislation comes to the House floor.


Boehner dealt himself a blow — and strengthened the Democrats' hand — with his Plan B, which conservatives rejected as a tax increase. The proposal would have kept most tax rates the same but allowed the scheduled increase on incomes above $1 million to take effect. The rate would have risen to 39.6% from 35%.


Despite the setback, Boehner reasserted himself Friday, accompanied by his sometime-rival, House Majority Leader Eric Cantor of Virginia, in a public display of solidarity.


As for a deal, the speaker said, "How we get there, God only knows."


Obama must decide whether he is willing to make concessions to Republicans to achieve a broader budget deal. Many Republicans have signaled publicly, and privately, that they are willing to raise taxes as part of a deal to cut spending.


In negotiations with Boehner, Obama proposed raising taxes only on household income above $400,000 and cutting the inflation adjustment for Social Security and other government benefits.


The president had campaigned for reelection on keeping tax rates the same for the first $250,000 of income for families and $200,000 for individuals, but raising rates on income above that level. He returned to that stance Friday, when he made a pitch to Republicans to help enact a few stopgap measures. His party's left flank is unlikely to cheer another overture to the GOP.


"The slate is clean," AFL-CIO President Richard Trumka said in a statement. Obama has "no obligation to radical Republicans," he said.


All parties were weighing whether a deal remained within reach or whether the fiscal cliff would provide strengthened leverage to fight what Boehner has called "trench warfare" into next year.


In a matter of months, a vote will be needed to raise the debt limit so the nation can pay its bills. That has the potential to create a replay of the 2011 battle that led to the current standoff. A new bill to keep the federal government functioning will also be due in the spring.


"Both sides need to recognize what the other can do," said David Winston, a longtime GOP strategist who is close to the House leadership. "Republicans and Democrats, the last thing they want to do is go off the fiscal cliff."


lisa.mascaro@latimes.com


christi.parsons@latimes.com


Michael A. Memoli in the Washington bureau contributed to this report.





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Instagram diverts attention from botched policy change with another new filter









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The Daughter of a Sick Woman Falls Prey to a Craigslist Scam





Sitting side by side on their living room sofa, Patricia Morales and her daughter, Katherine, could be any mother-daughter duo. Both have dark hair, dark eyes and welcoming, infectious smiles.







Librado Romero/The New York Times

Patricia Morales, 62, at home in the Bronx. Her treatment for ailments like rheumatoid arthritis and hepatitis C led to depression.






2012-13 Campaign


Previously recorded:

$3,375,394



Recorded Wednesday:

182,251



*Total:

$3,557,645



Last year to date:

$3,320,812




*Includes $709,856 contributed to the Hurricane Sandy relief efforts.

The Neediest CasesFor the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.


Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.







The Youngest Donors


If your child or family is using creative techniques to raise money for this year’s campaign, we want to hear from you. Drop us a line on Facebook or talk to us on Twitter.





But the ties that bind them go beyond their genes, beyond the bodies they were born with.


“It’s called a neck ring. It’s a silver curved barbell, one inch,” Katherine, 20, said as she swept aside her shoulder-length black hair to show the piercing in the back of her neck, a show of solidarity with her mother. She had it done when she was 16. “I wanted to know what it felt like for my mom.”


Her mother then turned around and outlined with her finger two lengthy scars that run down her back.


“I’ve had a lot of physical problems,” Ms. Morales, 62, said. Shaking her head at her daughter’s piercing, she added, “I’ve had rods put in my upper and lower spine, but I could never do that.”


The rods were surgically planted to treat herniated discs, the result of having a cruel combination of osteoporosis, hepatitis C, fibromyalgia and rheumatoid arthritis. Ms. Morales contracted hepatitis C from a blood transfusion she received in 1972 after the birth of her only son, she said.


“I didn’t even know about it until 10 years ago,” she said. “My liver blood count was a little high.”


Since the diagnosis, Ms. Morales, a former schoolteacher, has ridden the arduous highs and lows common to patients with hepatitis C. Her treatments for the disease, which debilitates the liver over time, have included pills and injections that can cause depression. Ms. Morales, a single parent, found an unforgiving salve in alcohol.


“I was depressed; I was totally drunk,” she said. “I didn’t want to live anymore.”


Then, about a year ago, she reached a turning point when visiting her hepatitis C specialist.


“I was 210 pounds,” she said. “The doctor said: ‘You have to stop drinking. You have to lose weight.’ ”


To help combat the depression, her doctor referred her to Jewish Association Serving the Aging, a beneficiary agency of UJA-Federation of New York, one of the organizations supported by The New York Times Neediest Cases Fund. She began weekly counseling sessions with a social worker and started taking an antidepressant medication. The federation drew about $600 from the fund in May so that Ms. Morales could buy a mattress.


“I had a horrible bed,” she said. “I felt like I was sleeping on rocks, and with rods in my back, I was waking up every hour.”


After several months of therapy and starting a diet, Ms. Morales was on her way to losing 60 pounds. Today, she weighs 148.


Light was starting to show itself again when the family took an unexpected financial hit this summer. While taking time off from attending Hostos Community College, Katherine Morales looked for work on Craigslist.


“I saw my mom, and I realized I needed to get a job,” Katherine said shyly. “This guy asked me to be his personal assistant, and he asked me to wire money.”


Offering $400 a week, the man requested help transferring almost $2,000 from what he said was his wife’s account. He transferred the money to Katherine’s account, asking her to wire it to a bank account in Malaysia.


Shortly after she wired the money, the bank froze the account, which Katherine and her mother shared. It was then that Katherine realized she had been the victim of a scam. The money transferred into her account turned out to have been stolen, and she was responsible for repaying it.


Katherine went to detectives immediately with more than 20 pages of evidentiary e-mails, but found that she was unable to file a complaint.


“They told me it wasn’t enough,” she said. “These things happen all the time.”


They lost almost $2,000.


Ms. Morales lives on a fixed income. She receives just over $700 a month from Social Security and $200 month in food stamps. The rent for the apartment she shares with her daughter in the Throgs Neck neighborhood of the Bronx is $230, and Ms. Morales has a monthly combined phone and cable bill of $140. Ms. Morales has a son, but he is unable to help the family.


Falling behind on her bills, Ms. Morales turned once again to JASA for help paying a combined phone and cable bill of nearly $200, a grant the agency drew from the Neediest Cases Fund.


“It was terrible, because my intention was to help my mom,” said Katherine, who has since found a part-time job at a vitamin shop.


Ms. Morales has been feeling much better, but she is nervous about an appointment with her hepatitis C specialist in January.


“I’m taking things one day at a time, but I’m looking forward to someone taking care of me,” she said. “I want to live a little bit longer, but not that long.”


“Why are you putting a time limit on it?” Katherine said, jokingly. “Seventy’s the new 20!” she added, nudging her mother in the side. “Remember, the doctor said you wouldn’t live past your late 50s, but you did.”


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E-book restrictions leave 'buyers' with few rights








There's a crass old joke about how you can never buy beer, just rent it. Who would think that the same joke applies to book buying in the digital age?


But that's the case. Many people who'll be unwrapping iPads, Amazon Kindles or Barnes & Noble Nooks on Tuesday morning and loading them with bestsellers or classics won't have any idea how limited their rights are as their books' "owners."


In fact, they won't be owners at all. They'll be licensees. Unlike the owners of a physical tome, they won't have the unlimited right to lend an e-book, give it away, resell it or leave it to their heirs. If it's bought for their iPad, they won't be able to read it on their Kindle. And if Amazon or the other sellers don't like what they've done with it, they can take it back, without warning.






All these restrictions "raise obvious questions about what 'ownership' is," observes Dan Gillmor, an expert on digital media at Arizona State University. "The companies that license stuff digitally have made it clear that you own nothing."


Typically, e-book buyers have no idea about these complexities. How could they? The rules and limitations are embodied in "terms of service" documents that Amazon, Apple, B&N and other sellers shroud in legalese and bury deep in their websites. That tells you how little they want you to know.


The rules are based, in turn, on the 1998 Digital Millennium Copyright Act, with which Congress hoped to balance the rights of copyright holders and content users. "In the digital environment, that's always been the trickiest balance to strike," Annemarie Bridy, a specialist in intellectual property law at the University of Idaho, told me. In those terms, the DMCA looks like a failure.


Both camps have important rights to protect. Let's start with copyright owners.


In the non-digital world, copyright ends with the first sale of each copyrighted object. Under the "first sale" doctrine, once you buy a book, that physical book is yours to lend, give away, or resell. Copyright is safeguarded by the limitations of physical transfer — once the book is given or loaned, the original buyer no longer has access to it. If a library owns five copies of a book, only five borrowers can read it at the same time. Theoretically a book can be photocopied, but only at great effort and with a perceptible loss of quality.


In digital-dom, however, technology allows infinite copies to be made, with no loss of quality. Absent the usual restrictions, one could give away an e-book and still have it to read. Unrestricted transferability becomes a genuine threat to the livelihood of authors, artists, filmmakers, musicians.


So some limitation is sensible. That's usually done through digital rights management, or DRM, which encodes copy or usage limitations into the digital file. The DMCA protected DRM by outlawing efforts to circumvent it (with a few exceptions).


The question is whether the balance has tipped too far in favor of the booksellers, at the consumers' expense. The answer is yes.


For one thing, DRM has put far too much power in the hands of digital booksellers. Amazon, in particular, has shown it can't be trusted with that power. In 2009, having learned that it inadvertently had sold unauthorized e-book versions of George Orwell's "1984" and "Animal Farm" through its website, the company simply deleted those e-books from buyers' Kindles stealthily, without warning.


An uproar followed, not least because Amazon's Orwellian behavior involved those Orwellian masterpieces. Amazon settled a subsequent lawsuit by promising never to steal a book back from a Kindle without the device owner's permission.


But earlier this year, the company was revealed to have unilaterally shut down the access of Linn Jordet Nygaard, a Norwegian Kindle owner, to her library of 43 e-books, for reasons it refused to divulge. Another uproar, and Amazon backed down again, restoring Nygaard's account — again without explanation. Amazon refused my request for comment.


Another downside of e-book DRM is that most e-books are tied to the seller's reading device or apps. Buy a book from Amazon, and you can read it only on a Kindle or Amazon app. Buy it from Apple, and it can be read only on an Apple device.


This lock-in gives the booksellers power over not only consumers but publishers. In fact, it led several publishers to make a price-fixing deal with Apple that aimed to undermine Amazon's market power, but ended with their getting whacked with a big federal antitrust fine instead.


Moreover, notwithstanding the public impression that digital is forever, nothing is permanent in the digital world. In fact, digital content can be less permanent than physical books. In libraries you can find volumes that date back hundreds of years and can still be read (if carefully); but there are digital files that date back only a decade yet are completely unintelligible today.


Nowhere does Amazon, Apple or any other distributor pledge to support its digital formats in perpetuity. Quite the contrary: They typically warn that they can cancel their service at any time, without warning, in a way that could end your access to a lifetime of e-book purchases in the flash of an electron. They could also go out of business, leaving millions of dependent customers in the lurch.


Amazon keeps your purchased content for free on its own servers — the term is "in the cloud" — for downloading to your Kindles as needed. You pay once for an e-book and can use it on all the Kindles you own. I can't find any written promise by Amazon that this storage will always be free. If it announces a few years from now that henceforth there will be a monthly fee to store books purchased, say, more than 10 years ago, what rights will you have to resist? None.


There are ways to protect your e-books from grasping e-booksellers or the future. Programs available on the Web can strip the DRM code from your purchased items — for books, one possible method involves an e-library management program called Calibre. The program easily can be augmented with a DRM-stripping application so you can convert e-books sold in any proprietary format into a different format or even as plain text.


But is it legal? No one is quite sure, and that's a problem. The DMCA makes it unlawful to circumvent certain DRM protection, but doing so on an item you've bought and want to keep in a different format for your own use — not to make multiple copies for sale — may not break the law. On the other hand, distributing software that enables that is illegal under the DMCA even if the goal is legitimate, which is absurd.


Even if reformatting a file you own is legal, what if you don't own it? The hard-to-find terms of service of e-book sellers specify that you're only licensing a book, not buying it (although the Amazon order page does say you're "buying" it). "In the digital context, it's not clear that the 'first sale' has ever occurred," says Bridy.


It should be a top priority for Congress to clear out the murk. Buyers of e-books must have the explicit right to reformat their purchases and save backup copies for their own use, permanently. The sale of an e-book must be irrevocable. On the other side, it must remain strictly illegal to make multiple unauthorized copies of any copyrighted work for distribution. Lending by libraries, one digital copy at a time, should be facilitated — it tends to widen the audience for books.


The guiding principle must be that an e-book owner's rights and responsibilities parallel those of a book owner, and the same must go for authors, publishers and booksellers. "Someone once observed to me that if libraries were being invented today, publishers would try to make them illegal," Gillmor says.


Clarify these rules of e-book commerce, and the book market will reap the benefit. The power of electronic booksellers over publishers might be reduced, and consumers would know what they were buying — and would own what they bought. Leave the rules as vague as they are, and the victims will be authors, consumers and publishers.


Michael Hiltzik's column appears Sundays and Wednesdays. Reach him at mhiltzik@latimes.com, read past columns at latimes.com/hiltzik, check out facebook.com/hiltzik and follow @latimeshiltzik on Twitter.






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Hedge fund manager alleges Herbalife is 'pyramid scheme'









Herbalife Ltd. is girding for a fight against a Wall Street money man who's betting $1 billion that the company is nothing more than what he called a "pyramid scheme."


The Los Angeles maker of nutritional products rushed to defend itself Thursday against a hedge fund manager's accusation.


Hedge fund titan Bill Ackman accused Herbalife of paying its sales staff far more money to recruit new distributors than to actually sell its products.





That results in the roughly 2.6 million distributors at the bottom of the sales pyramid making little or no income, while a handful at the top hauls in millions, he said.


"This is the best-managed pyramid scheme in the history of the world," Ackman said.


The company denied the allegation and accused Ackman of trying to manipulate the stock. Herbalife shares slumped 10% on Thursday and are off 21% in the two days since Ackman announced that the company is in his sights.


"Today's presentation was a malicious attack on our business model based largely on outdated, distorted and inaccurate information," Herbalife said in a statement. "We are not an illegal pyramid scheme."


Herbalife, which bills itself as a so-called multilevel marketer, has beaten back similar accusations in the past. But the company has rarely faced a nemesis such as Ackman.


The 46-year-old billionaire has fashioned a career on high-stakes gambits in controversial companies. His fund firm, Pershing Square Capital Management, manages $12 billion.


Showdowns between companies and skeptical investors historically play out behind closed doors, especially in the normally sleepy pre-holiday period.


But in a measure of the aggressive tactics favored by an emerging breed of activist investors, Ackman launched a public blitzkrieg Thursday. He gave a flashy multimedia presentation to a packed conference room in New York that was streamed live on the Internet.


"I've never seen anything quite like it," said Timothy Ramey, an analyst at D.A. Davidson & Co. "I've never seen an investor spend 31/2 hours of time at a major venue being webcast and then make TV appearances to make his point. It's the largest orchestrated bull or bear case that I've ever seen."


The brawl has potential repercussions for both sides.


Ackman claimed to have spent one year doing intensive research on Herbalife's operations, an unusually extended period given Wall Street's thirst for immediate results.


Earlier this year, Ackman began betting that Herbalife's stock would fall sharply.


His fund is "shorting" more than 20 million shares of the company. In a short sale, an investor borrows stock and sells it immediately, hoping to later buy the shares at a reduced price and return them to their actual owner.


Ackman promised to donate all profit from his Herbalife bet to charity, and portrayed his public diatribe as intended for the public good.


"I'm very fortunate to have the means to pursue this," he said. "I am independently wealthy. When I believe in something, I can say what I want and do what is right."


For Herbalife, the fight threatens to damage its credibility among investors who have always been sensitive to claims that its business is illegitimate.


Herbalife, which was founded in 1980, sells a line of diet powders, bars, drinks and vitamins through a network of independent distributors in more than 80 countries. The company reported sales of $3.5 billion in 2011.


Its chief executive, Michael O. Johnson, was the highest paid executive in the United States last year, hauling in more than $89 million in salary, exercised stock options and other compensation, according to GMI Ratings, a corporate governance firm.


The company has fought criticism of its business model throughout its existence.


In 2008, for example, self-proclaimed fraud buster Barry Minkow shorted Herbalife's stock and then accused the company of a host of misdeeds. The company survived those accusations and Minkow ultimately went to prison on unrelated charges.


This was the second time this year that investors punished Herbalife because of questions about its business practices. Herbalife shares fell 20% in May after hedge fund operator David Einhorn asked pointed questions during an earnings call.


"We operate at the highest ethical and quality standards, and our management and our board are constantly reviewing our business practices and products," Herbalife said. "We also hire independent, outside experts to ensure our operations are in full compliance with laws and regulations."


Ackman and Herbalife engaged in a bitter and bizarre war of words, with Johnson saying the United States will "be better when Bill Ackman is gone."


Ackman interpreted the statement as a threat and said he has hired a security firm to protect him.


stuart.pfeifer@latimes.com


walter.hamilton@latimes.com





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Marilyn Monroe subway grate photo on view in NYC


NEW YORK (AP) — A famous image of Marilyn Monroe with her skirt billowing atop a New York City subway grate is on display in a picture-perfect spot: outside the Times Square subway station.


The supersized version of Sam Shaw's well-known picture is part of an exhibit. The exhibit also features eight of Shaw's other Monroe pictures, on view inside the 42nd Street-Bryant Park station on the B, D, F, M and 7 lines.


The show opened Thursday. It'll be up for a year.


Shaw shot the subway grate photo for the 1955 film "The Seven Year Itch." He took the other pictures in 1957.


The exhibit is part of the Metropolitan Transportation Authority's Arts for Transit program. Manager Lester Burg says matching a mass transit setting with a popular figure from mass culture seemed a good fit.


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About New York: One Boy’s Death Moves State to Action to Prevent Others





Prompted by the death of a 12-year-old Queens boy in April, New York health officials are poised to make their state the first in the nation to require that hospitals aggressively look for sepsis in patients so treatment can begin sooner. Under the regulations, which are now being drafted, the hospitals will also have to publicly report the results of their efforts.




The action by New York has elated sepsis researchers and experts, including members of a national panel who this month formally recommended that the federal government adopt standards similar to what the state is planning.


Though little known, sepsis, an abnormal and self-destructive immune response to infection or illness, is a leading cause of death in hospitals. It often progresses to severely low blood pressure, shock and organ failure.


Over the last decade, a global consortium of doctors, researchers, hospitals and advocates has developed guidelines on early identification and treatment of sepsis that it says have led to significant drops in mortality rates. But first hints of the problem, like a high pulse rate and fever, often are hard for clinicians to tell apart from routine miseries that go along with the flu or cold.


“First and foremost, they need to suspect sepsis,” Dr. Mitchell M. Levy, a professor at Brown University School of Medicine and a lead author of a paper on the latest sepsis treatment guidelines to be published simultaneously next month in the United States in a journal, Critical Care Medicine, and in Europe in Intensive Care Medicine.


“It’s the most common killer in intensive care units,” Dr. Levy said. “It kills more people than breast cancer, lung cancer and stroke combined.”


If started early enough, the treatment, which includes antibiotics and fluids, can help people escape from the drastic vortex of sepsis, according to findings by researchers working with the Surviving Sepsis Campaign, the global consortium. The tactics led to a reduction of “relative risk mortality by 40 percent,” Dr. Levy said.


Although studies of 30,000 patients show that the guidelines save lives, “the problem is that many hospitals are not adhering to them,” said Dr. Clifford S. Deutschman, director of the sepsis research program at the Perelman School of Medicine at the University of Pennsylvania and the president of the Society of Critical Care Medicine.


About 300 hospitals participate in the study, and the consortium has a goal of having 10,000. “The case is irrefutable: if you take these sepsis measures, and you build a program to help clinicians and hospitals suspect sepsis and identify it early, that will mean more people will survive,” Dr. Levy said.


At a symposium in October, the New York health commissioner, Dr. Nirav R. Shah, said that he would require state hospitals to adopt best practices for early identification and treatment of sepsis. Gov. Andrew M. Cuomo intends to make it a major initiative in 2013, said Josh Vlasto, a spokesman for the governor. “The state is taking unprecedented measures to prevent and effectively treat sepsis in health care facilities across the state and is looking at a wide range of additional measures to better protect patients,” Mr. Vlasto said.


In April, Rory Staunton, a sixth grader from Queens, died of severe septic shock after he became infected, apparently through a cut he suffered while playing basketball. The severity of his illness was not recognized when he was treated in the emergency room at NYU Langone Medical Center. He was sent home with a diagnosis of an ordinary bellyache. Hours later, alarming laboratory results became available that suggested he was critically ill, but neither he nor his family was contacted. For an About New York column in The New York Times, Rory’s parents, Ciaran and Orlaith Staunton, publicly discussed their son’s final days. Their revelations prompted doctors and hospitals across the country to seek new approaches to heading off medical errors.


In addition, Commissioner Shah in New York convened a symposium on sepsis, which included presentations from medical experts and Rory’s parents.


At the end of the meeting, Dr. Shah said that he had listened to all the statistics on the prevalence of the illness, and that one had stuck in his memory: “Twenty-five percent,” he said — the portion of the Staunton family lost to sepsis.


He said he would issue new regulations requiring hospitals to use best practices in identifying and treating sepsis, actions that, he said, he was taking “in honor of Rory Staunton.”


The governor’s spokesman, Mr. Vlasto, said that “the Staunton family’s advocacy has been essential to creating a strong public will for action.”


Dr. Levy said New York’s actions were “bold, pioneering and grounded in good scientific evidence,” adding, “The commissioner has taken the first step even before the federal government.”


Dr. Deutschman said that initiatives like those in New York were needed to overcome resistance among doctors. “You’re talking about a profession that has always prided itself on its autonomy,” he said. “They don’t like to be told that they’re wrong about something.”


The availability of proven therapies should move treatment of sepsis into a new era, experts say, comparing it to how heart attacks were handled not long ago. People arriving in emergency rooms with chest pains were basically put to bed because not much could be done for them, said Dr. Kevin J. Tracey, the president of the Feinstein Institute for Medical Research at North Shore-Long Island Jewish Health System. Dr. Tracey, a neurosurgeon, has made major discoveries about the relationship between the nervous system and the runaway immune responses of sepsis.


If physicians and nurses were trained to watch for sepsis, as they now routinely do for heart attacks, many of its most dire problems could be headed off before they got out of control, he said. The Stauntons have awakened doctors and nurses to the possibility of danger camouflaged as a stomach bug.


“We are with sepsis where we were with heart attack in the early 1980s,” Dr. Tracey said.


“If you don’t think of it as a possibility, this story can happen again and again. This case could change the world.”


E-mail: dwyer@nytimes.com


Twitter: @jimdwyernyt



Read More..

Hedge fund manager alleges Herbalife is 'pyramid scheme'









Herbalife Ltd. is girding for a fight against a Wall Street money man who's betting $1 billion that the company is nothing more than what he called a "pyramid scheme."


The Los Angeles maker of nutritional products rushed to defend itself Thursday against a hedge fund manager's accusation.


Hedge fund titan Bill Ackman accused Herbalife of paying its sales staff far more money to recruit new distributors than to actually sell its products.





That results in the roughly 2.6 million distributors at the bottom of the sales pyramid making little or no income, while a handful at the top hauls in millions, he said.


"This is the best-managed pyramid scheme in the history of the world," Ackman said.


The company denied the allegation and accused Ackman of trying to manipulate the stock. Herbalife shares slumped 10% on Thursday and are off 21% in the two days since Ackman announced that the company is in his sights.


"Today's presentation was a malicious attack on our business model based largely on outdated, distorted and inaccurate information," Herbalife said in a statement. "We are not an illegal pyramid scheme."


Herbalife, which bills itself as a so-called multilevel marketer, has beaten back similar accusations in the past. But the company has rarely faced a nemesis such as Ackman.


The 46-year-old billionaire has fashioned a career on high-stakes gambits in controversial companies. His fund firm, Pershing Square Capital Management, manages $12 billion.


Showdowns between companies and skeptical investors historically play out behind closed doors, especially in the normally sleepy pre-holiday period.


But in a measure of the aggressive tactics favored by an emerging breed of activist investors, Ackman launched a public blitzkrieg Thursday. He gave a flashy multimedia presentation to a packed conference room in New York that was streamed live on the Internet.


"I've never seen anything quite like it," said Timothy Ramey, an analyst at D.A. Davidson & Co. "I've never seen an investor spend 31/2 hours of time at a major venue being webcast and then make TV appearances to make his point. It's the largest orchestrated bull or bear case that I've ever seen."


The brawl has potential repercussions for both sides.


Ackman claimed to have spent one year doing intensive research on Herbalife's operations, an unusually extended period given Wall Street's thirst for immediate results.


Earlier this year, Ackman began betting that Herbalife's stock would fall sharply.


His fund is "shorting" more than 20 million shares of the company. In a short sale, an investor borrows stock and sells it immediately, hoping to later buy the shares at a reduced price and return them to their actual owner.


Ackman promised to donate all profit from his Herbalife bet to charity, and portrayed his public diatribe as intended for the public good.


"I'm very fortunate to have the means to pursue this," he said. "I am independently wealthy. When I believe in something, I can say what I want and do what is right."


For Herbalife, the fight threatens to damage its credibility among investors who have always been sensitive to claims that its business is illegitimate.


Herbalife, which was founded in 1980, sells a line of diet powders, bars, drinks and vitamins through a network of independent distributors in more than 80 countries. The company reported sales of $3.5 billion in 2011.


Its chief executive, Michael O. Johnson, was the highest paid executive in the United States last year, hauling in more than $89 million in salary, exercised stock options and other compensation, according to GMI Ratings, a corporate governance firm.


The company has fought criticism of its business model throughout its existence.


In 2008, for example, self-proclaimed fraud buster Barry Minkow shorted Herbalife's stock and then accused the company of a host of misdeeds. The company survived those accusations and Minkow ultimately went to prison on unrelated charges.


This was the second time this year that investors punished Herbalife because of questions about its business practices. Herbalife shares fell 20% in May after hedge fund operator David Einhorn asked pointed questions during an earnings call.


"We operate at the highest ethical and quality standards, and our management and our board are constantly reviewing our business practices and products," Herbalife said. "We also hire independent, outside experts to ensure our operations are in full compliance with laws and regulations."


Ackman and Herbalife engaged in a bitter and bizarre war of words, with Johnson saying the United States will "be better when Bill Ackman is gone."


Ackman interpreted the statement as a threat and said he has hired a security firm to protect him.


stuart.pfeifer@latimes.com


walter.hamilton@latimes.com





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Family, fans say goodbye to Jenni Rivera









Jenni Rivera was remembered in death the same way she was celebrated in life: on an illuminated stage, with thousands of fans chanting her name.


The singer, who was killed in a plane crash earlier this month, was honored Wednesday with what her family called a "celestial graduation," a musical memorial that packed the Gibson Amphitheatre with 6,100 people and drew hundreds more outside.


The more than two-hour farewell could have been mistaken for a concert, if not for the crowd's tears and the ruby-red casket on stage. In front of it was a cluster of white roses, the type of flower Rivera's family asked fans to bring. Behind it was a single microphone, left unused.





Family members — clad head-to-toe in white — praised Rivera as a "perfectly imperfect" mother and a guerrera, Spanish for "female warrior." Her father, Pedro Rivera, a noted singer of the Mexican ballads known as corridos, said goodbye by performing a song he wrote about her, "La Diva de la Banda."


Rivera's 11-year-old son, Johnny Lopez, addressed the sea of mourners in a white suit and red bow tie. His father died a few years ago.


"Mama, I've been crying so much these last few days. I miss you so much," he said, his voice breaking. "I hope you're taking care of my dad and I hope he's taking care of you, too."


He added: "I want to thank everyone for loving my mom."


Rivera, a Long Beach native, first gained fame via her banda music, a Mexican regional style heavy on machismo and brass instruments. A rare woman in the genre, Rivera often sang — in Spanish and English — about her chaotic personal life: three husbands, five children and struggles with her weight and domestic violence.


Rivera sold more than 20 million albums and, in recent years, had started to expand her business empire. She had a weekly radio program, clothing and cosmetics lines and a hand in several reality shows, including "I Love Jenni."


She and six others were killed Dec. 9 when a private jet that had departed Monterrey, Mexico, nose-dived 28,000 feet in 30 seconds and smashed into mountainous terrain. Rivera was 43.


"My sister, Jenni, died in a plane accident, but it was not an accident," Pedro Rivera Jr., a pastor and Rivera's brother, told the crowd in Spanish. "God has a purpose for all of us and God let us borrow her for 43 years and enjoy her."


It was clear how deeply Rivera had touched her legion of fans.


At the memorial, several well-known Latino singers performed, including Ana Gabriel, Olga Tanon and Joan Sebastian.


Outside, her fan base arrived early, blasting her music from cars decorated with tributes: "Jenni, we love you" and "We are going to miss you." They wore Jenni Rivera T-shirts and Jenni Rivera pins and waved handmade posters. One woman said Rivera was now performing "in a concert with God."


Lidia Farrias and her husband, Jose, drove three hours from Santa Maria. They didn't have tickets — the event sold out within minutes — so they shivered outside, eyes fixed on two jumbo screens streaming the memorial. Farrias said Rivera's frank lyrics had encouraged her to be a stronger woman.


"Whenever I listened to her songs, I felt like I could tackle anything," she said.


Denise Montalvo, 15, had left San Diego at 1 a.m. with her mother, aunt and two family friends. She admired Rivera for striving to obtain a better life, just like Denise's family. The teenager said Rivera wanted her funeral to be a celebration, reflecting her song "Cuando Muere una Dama" — "When a Lady Dies."


"We're trying not to be sad," she said.


That was hard for fans, particularly as the memorial wound down. One by one, each of Rivera's family members placed a white rose on her casket. Some whispered to it. Some kissed it. Then they walked away.


ruben.vives@latimes.com


adolfo.flores@latimes.com


Times staff writer Ashley Powers contributed to this report.





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Kodak in $525 million patent deal, eyes bankruptcy end






(Reuters) – Eastman Kodak Co agreed to sell its digital imaging patents for about $ 525 million, a key step to bringing the photography pioneer out of bankruptcy in the first half of 2013.


The deal for the 1,100 patents allows Kodak to fulfill a condition for securing $ 830 million in financing.






The patent deal was reached with a consortium led by Intellectual Ventures and RPX Corp, and which includes some of the world’s biggest technology companies, which will license or acquire the patents.


Those companies are Adobe Systems Inc, Amazon.com Inc, Apple Inc, Facebook Inc, Fujifilm, Google Inc, Huawei Technologies Co Ltd, HTC Corp, Microsoft Corp, Research In Motion Ltd, Samsung Electronics Co Ltd and Shutterfly Inc, according to court documents.


Kodak still must sell its personalized and document-imaging businesses as part of the financing package, and also has to resolve its UK pension obligation.


Kodak said the patent deal puts it on a path to emerge from Chapter 11 in the first half of 2013.


“Our progress has accelerated over the past several weeks as we prepare to emerge as a strong, sustainable company,” said Antonio Perez, chairman and chief executive of the Rochester, New York-based company.


The patent portfolio was expected to be a major asset for Kodak when it filed for bankruptcy in January. An outside firm had estimated the patents could be worth as much as $ 2.6 billion.


Kodak’s patents hit the market as intellectual property values have soared and technology companies have plowed money into patent-related litigation.


For example, last year Nortel Networks sold 6,000 wireless patents in a bankruptcy auction for $ 4.5 billion and earlier this year Google spent $ 12.5 billion for patent-rich Motorola Mobility.


But Kodak’s patent auction dragged on beyond the initial expectation that it would be wrapped up in August. One patent specialist blamed those early, overly optimistic valuations, which he said encouraged Kodak’s team to set their sights too high.


“Unfortunately (Kodak management) was misled into thinking it was worth billions of dollars and it wasn’t,” said Alex Poltorak, chairman of General Patent Corp, a patent licensing firm. “I think they sold them at a very good price.”


He said after Google acquired Motorola, the search engine company no longer needed patents at any price, deflating the intellectual property market.


Kodak traces its roots to the 19th century and invented the handheld camera. But it has been unable to successfully shift to digital imaging.


It will likely be a different company when it exits bankruptcy, out of the consumer business and focused instead on providing products and services to the commercial imaging market.


The patent sale is subject to approval by the U.S. Bankruptcy Court in Manhattan.


The Kodak bankruptcy case is in Re: Eastman Kodak Co. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202.


(Reporting by Tom Hals in Wilmington, Delaware and Sruthi Ramakrishnan in Bangalore; Editing by Nick Zieminski,; John Wallace and Peter Galloway)


Tech News Headlines – Yahoo! News





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Miss USA Olivia Culpo is crowned Miss Universe


LAS VEGAS (AP) — A 20-year-old Boston University sophomore and a self-described "cellist-nerd" brought the Miss Universe crown back to the United States for the first time in more than a decade when she won the televised contest Wednesday.


Olivia Culpo beat out 88 other beauty queens to take the title from Leila Lopes of Angola during the two-hour competition at the Planet Hollywood casino on the Las Vegas Strip.


Culpo wore a tight navy blue mini-dress with a sequined bodice as she walked on stage for the competition's opening number. Later in the night, she strutted in a purple and blue bikini, and donned a wintery red velvet gown with a plunging neckline.


Culpo's coronation ends a long losing spell for the U.S. in the competition co-owned by Donald Trump and NBC. An American had not won the right to be called Miss Universe since Brook Lee won the title in 1997.


Culpo was good enough during preliminary competitions to be chosen as one of 16 semifinalists who moved on to compete in the pageant's finale. Her bid lasted through swimsuit, evening wear, and interview competitions that saw cuts after each round.


She won over the judges, even after tripping slightly during the evening gown competition. Telecasters pointed it out but also noted her poised recovery.


Minutes before the middle child of five was crowned, she was asked whether she had she had ever done something she regretted.


"I'd like to start off by saying that every experience no matter what it is, good or bad, you'll learn from it. That's just life," she said. "But something I've done I've regretted is probably picking on my siblings growing up, because you appreciate them so much more as you grow older."


Miss Philippines, Janine Tugonon, came in second, while Miss Venezuela, Irene Sofia Esser Quintero, placed third.


All the contestants spent the past two weeks in Sin City, where they posed in hardhats at a hotel groundbreaking, took a painting lesson, and pranked hotel guests by hiding in their rooms.


Culpo was the first Miss USA winner from Rhode Island when she took the national crown in Las Vegas in June.


She grew up in Cranston with two professional musicians for parents and has played the cello alongside world-renowned classical musician Yo-Yo Ma. On her Miss Universe page, she said she hopes to pursue a career in film or television, and cites Audrey Hepburn as a role model because of her "generosity, intelligence and grace."


With Culpo's promotion, Miss Maryland Nana Meriwether becomes the new Miss USA.


The Miss Universe pageant was back in Las Vegas this year after being held in Sao Paulo in 2011. It aired live on NBC and was streamed to more than 100 countries.


Organizers had considered holding the 61st annual Miss Universe in the popular Dominican Republic tourist city of Punta Cana, but Miss Universe Organization President Paula Shugart said that country's financial crisis proved to be too much of an obstacle.


The panel of 10 judges included singer Cee Lo Green, "Iron Chef" star Masaharu Morimoto and Pablo Sandoval of the San Francisco Giants.


Asked on the red carpet whether he found playing in the World Series or judging the beauty pageant to be more difficult, Sandoval said both were hard.


Sharply dressed women and men, including a large contingent from South America, held banners and cheered on their favorite contestants.


The pageant started as a local revue in Long Beach, Calif., organized by Catalina Swimwear. It is not affiliated with the Miss America pageant and unlike that contest, does not include a talent section.


Contestants in the pageant cannot have been married or have children. They must be younger than 27 and older than 18 by Feb. 1 of the competition year.


As Miss Universe, Culpo will receive an undisclosed salary, a wardrobe fit for a queen, a limitless supply of beauty products, and a luxury apartment in New York City.


Read More..

Officials Confront Skepticism Over Health Law





On its face, the low-key discussion around a conference table in Miami last month did not appear to have national implications. Eight men and women, including a diner owner, a chef and a real estate agent, answered questions about why they had no health insurance and what might persuade them to buy it.




But this focus group, along with nine others held around the country in November, was an important tool for advocates coming up with a campaign to educate Americans about the new health care law. The participants were among millions of uninsured people who stand to benefit from the law. With incomes below 400 percent of the poverty level, or $92,200 for a family of four this year, the focus group members will qualify for federal subsidies to help cover the cost of private insurance starting in 2014.


The sessions confirmed a daunting reality: Many of those the law is supposed to help have no idea what it could do for them. In the Miami focus group, a few participants knew only that they could face a fine if they did not buy coverage.


“It’s another forced bill,” said Christopher Pena, 24, who works in customer service.


There lies the challenge for Enroll America, a nonprofit group formed last year to get the word out to the uninsured and encourage them get coverage, providing help along the way. With the election over and the law almost certain to survive, the group is honing its fund-raising and testing strategies for persuading people to sign up for health insurance — a process that will begin in less than a year.


Starting next October, people will be able to shop for coverage, or find out if they are eligible for Medicaid, through online markets known as insurance exchanges.


“Our job is to convey to them that there is help coming that they didn’t know about,” said Rachel Klein, Enroll America’s executive director.


The group has raised only about $6 million so far — but financial backers include some major players in the medical industry: insurers like Aetna and Blue Cross Blue Shield, associations representing both brand name and generic drug manufacturers, hospitals and the Catholic Health Association. Insurance companies generally opposed the law before its passage in 2010 but now have a stake in its success.


Over the next two years, the group hopes to raise as much as $100 million for advertising, social media and other outreach efforts. “There are so many different groups that can play some role in this: hospitals, community health centers, pharmacies, tax preparers,” said Ron Pollack, chairman of Enroll America’s board. “Our job has got to be to try to galvanize each of those sectors, so there is a wide variety of ways people potentially can hear about this.”


Although the campaign will be national, the group will devote more resources to some states than to others. About half of the nation’s uninsured population lives in six states: California, Florida, Georgia, Illinois, New York and Texas. Of those, states whose leaders remain opposed to the health care law, like Texas, will probably get the most attention, Mr. Pollack said.


At the same time, Enroll America will coordinate with states, many of which are planning their own outreach and enrollment efforts, and with the Obama administration.


The Department of Health and Human Services has already awarded a $3.1 million contract to Weber Shandwick, a public relations firm, to plan a national education campaign for next year. It plans to seek proposals soon for a larger contract with a public relations firm that would help with the actual campaign, officials there said. Although the campaign has yet to take shape, an administration official confirmed that President Obama will play a role as it moves forward.


Republicans in Congress have already criticized the administration for spending taxpayer money to promote the law. Last month, Representative Dave Camp of Michigan, who leads the Ways and Means Committee, subpoenaed Kathleen Sebelius, the secretary of health and human services, seeking information on “public relations campaigns, advertisements, polling, message testing, and similar services.”


In addition to holding focus groups in Miami, Philadelphia, San Antonio and Columbus, Ohio, Enroll America commissioned a nationwide survey to help hone its message. The survey, conducted in September and October by Lake Research Partners, a Democratic polling group, found that the vast majority of uninsured people are unaware of the new coverage options provided by the law.


They are also skeptical. Many who participated in the focus groups or survey reported bad experiences trying to get health insurance, and doubted that the law would provide coverage that was both affordable and comprehensive.


“It’s two major mountains that need to be climbed,” Mr. Pollack said. “People are unaware of the benefits that could be provided to them, and they have to overcome skepticism, based on their past experiences with trying to obtain insurance.”


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UBS to pay $1.5 billion to settle Libor charges









UBS has agreed to pay a fine of $1.5 billion to authorities and plead guilty to a felony count of wire fraud, the most recent developments in a far-reaching probe into how banks manipulated interest rates leading up to the financial crisis.


Two former traders were also charged with conspiracy in a complaint unsealed Wednesday, the first people charged criminally in the Libor scandal.


"We cannot and we will not tolerate misconduct on Wall Street of the kind admitted to by UBS today and by Barclays last June," said Assistant Atty. Gen. Lanny Breuer, head of the criminal division. In June, Barclays was the first bank to settle with authorities, paying $450 million.





The fine was one of the biggest leveled against a financial institution by American and British authorities, just short of the $1.9-billion fine HSBC agreed to pay last week over money laundering allegations.


The charges relate to the ways traders leaned on banks to manipulate the London interbank offered rate, or Libor, to benefit their own trading positions.


Officials said that from 2006 through 2009 UBS traders placed bets on the movement of Libor and manipulated the rate, which is used as a benchmark to set interest rates for many mortgages, credit cards and other consumer lending instruments. The traders profited by knowing which way the Libor would move.


In coming months, the probe probably will expand to include other banks that help determine the Libor, analysts say. But it's the criminal charges that turned some heads on Wall Street on Wednesday.


The plea agreement on wire fraud charges by a UBS subsidiary in Japan, which included a $100-million fine, marks the first time since 2005 that a major financial institution has pleaded guilty to criminal charges, the Justice Department said.


"For a bank to admit to criminality is kind of mind-blowing," said Peter Shapiro, managing director of Swap Financial Group in South Orange, N.J. "Obviously, they didn't do that easily — that was something that must have been a big priority of enforcement agencies."


Enforcement agencies have been feeling some pressure to level blame on financial institutions in the wake of the financial crisis, Shapiro said. No senior financial executives have served jail time for their roles in the financial crisis.


"Both the regulators and enforcement agencies feel somewhat beleaguered by the repeated assertions that they failed to deliver enough heads on a plate as a response to the financial crisis," he said.


U.S. officials also announced criminal charges against two former senior traders for UBS in connection with the scandal. Tom Alexander William Hayes, 33, of Britain, was charged with conspiracy and wire fraud, and Roger Darin, 41, of Switzerland, was charged with conspiracy. Both remain abroad, but the Justice Department will try to extradite them.


"The motivation here was nothing short of sheer greed, and the scheme was nothing short of a shell game, a Wall Street version of three-card monte," said Kevin Perkins, associate director of the FBI, which helped investigate the case.


More criminal charges at other banks could follow, said Anthony Sabino, professor of law at the Tobin College of Business at St. John's University.


"Once you start to round up some accused bad guys, that leads to more people being rounded up," he said. "This is a vast conspiracy among a multitude of banks, which therefore implicates a multitude of individuals."


Much of the activity took place at UBS Japan Securities Co., where Hayes was a senior trader. The Justice Department released internal UBS messages in which Hayes and others talked about their alleged manipulation.


In one from November 2006, Hayes told a UBS employee who submitted rate information for the Libor that he and Darin "skew the Libors a bit" and then said he needed the six-month rate to stay high for three days.


UBS traders were often colorful and emphatic in their pleadings, according to documents released by Britain's Financial Services Authority. One wrote, "I need you to keep it as low as possible.... If you do that, I'll pay you, you know, $50,000, $100,000, whatever you want."


The UBS fine was larger than that leveled on Barclays earlier in the year because UBS' misconduct was "considerably more serious than Barclays' because it was more widespread within the firm," the Financial Services Authority said. At least 45 individuals at UBS were involved in or aware of the rate-fixing practice.


UBS said that it had fully cooperated with authorities and that the interest-rate manipulations were the isolated actions of certain employees.


"Their misconduct does not reflect the values of UBS nor the high ethical standards to which we hold every employee," UBS CEO Sergio Ermotti said in a statement.


Analysts say that there's still potential for significant civil suits against UBS and other banks, which could be more damaging than the fines levied against them. Keefe, Bruyette & Woods, an equity research firm, estimated in July that potential industry damages could reach $35 billion.


Those estimates were validated Wednesday when the Inspector General for the Federal Housing Finance Agency estimated that government-owned Fannie Mae and Freddie Mac may have lost a combined $3 billion because of reduced interest payments on securities and other holdings. Officials at FHFA, which regulates Fannie and Freddie, have not confirmed the estimate but are evaluating potential issues involved with the Libor manipulation.


There are barriers to further lawsuits — the burden of proof will be high, analysts at Keefe, Bruyette & Woods said. To move forward with civil suits, plaintiffs would have to prove that traders were conspiring, said John C. Coffee, a Columbia Law School expert in corporate fraud.


"But that said, the size of the potential liability is mushrooming," he said.


Times reporter E. Scott Reckard contributed to this report. Semuels reported from Los Angeles and Puzzanghera from Washington.





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Fix for flawed light rail junction in downtown L.A. is outlined









Local transit officials Tuesday outlined plans to permanently repair the flawed intersection of two light rail lines in downtown Los Angeles that had raised safety and maintenance concerns.


The Los Angeles County Metropolitan Transportation Authority asserts that the repair should prevent further problems at Washington Boulevard and Flower Street, the busiest junction in Metro's 87-mile rail network.


Officials plan to slightly narrow the width between the rails along 15 feet of track where the popular Blue Line curves to merge into the recently opened Expo Line before the route heads into the Metro Center station. About 32 trains an hour now pass through the intersection.





The fix is expected to eliminate excess play in the track that was causing train wheels to slam into a small section of the junction, resulting in excessive wear to wheel assemblies and a critical piece of the layout known as a "frog" that guides rail cars through a switch. According to an earlier Metro report, the flaw presented a risk of derailment on the Blue Line.


"It is safe now and we will keep it safe," said Frank Alejandro, Metro's chief operating officer. "That is our commitment to our customers and to our employees."


Officials for Metro and the Exposition Construction Authority, which built the Expo Line to the Westside, said the repair can be made during a weekend in the months ahead, minimizing service disruptions. When the work will begin and what it will cost have not been determined.


The repair is one of three options presented this month by ZetaTech, a New Jersey-based rail consulting firm hired by rail officials to analyze the junction.


According to the company's report, the problem was caused by a design that did not comply with standards put forth by the American Railway Engineering and Maintenance of Way Assn. Among other things, the width between rails was 4 feet, 9 inches, in parts of the junction where it should have been 4 feet, 8 1/2 inches.


The company also concluded that the junction has been safe since Metro made temporary modifications, began a stringent inspection program imposed by the California Public Utilities Commission and limited train speeds through the intersection to 5 mph. The Blue Line normally travels through the intersection at 10 mph, and Expo trains go through at 35 mph.


Michael Harris-Gifford, Metro's chief executive of wayside systems, said that two other solutions proposed by ZetaTech were not practical because they would reduce the number of trains and remove some traffic lanes.


The track alignment problem was first noticed in April 2010, when Metro officials discovered excessive wear and damage to wheel flanges and the pins that hold wheel assemblies to Blue Line cars. Internal agency reports state that the defect presented a potential risk of derailment in the junction or elsewhere on the Blue Line.


Trying to avoid the cost and service disruptions that would be required to replace flawed tracks, transit officials attempted to solve the problem by welding a bulb of metal to the frog and lengthening rail guides for train wheels. The weld, however, has had to be redone twice because of cracking.


In July, the utilities commission noted the failed welds and recommended that the damaged frog be replaced. Since then, Metro and Expo hired ZetaTech to help come up with a permanent solution. Once the repair is made, Harris-Gifford said, Metro and Expo officials plan to meet with the commission.


dan.weikel@latimes.com





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