Chinese Man Pleads Guilty in Copyright Violation Case

Label:


Nearly five years ago, a Chinese man named Xiang Li registered several domain names, including www.crack99.com, and embarked on an ambitious, and ultimately illegal, venture.


Mr. Li, who was based in Chengdu, paid a network of computer experts to scour the Internet to find commercial software they could “crack,” meaning they bypassed security protocols designed to prevent unauthorized access or reproduction.


Ultimately, Mr. Li offered more than 2,000 pirated software products that could be used as applications in the military, engineering, space exploration, mathematics and explosive simulation, and sold them at a fraction of their retail price, which federal prosecutors said was over $100 million.


Among his biggest customers were an electronics engineer at NASA and the chief scientist at a government military contractor, but his clients also included students, inventors and small-business owners. Mr. Li sold the products for $20 to $1,200, accepting payments by Western Union and MoneyGram, according to government documents.


But Mr. Li’s criminal enterprise officially ended last year when he was arrested by undercover agents. On Monday, he pleaded guilty in Federal District Court in Delaware to one count of conspiring to steal copyrighted software. He faces a maximum of five years in prison.


Mr. Li, who is 36, could not be reached for comment, nor could his lawyer, Mingli Chen. Mr. Li’s wife, Chun Yan Li, was also indicted on charges of participating in the illegal scheme; she remains at large, presumably in China, officials said.


Mr. Li was arrested in June 2011 in Saipan in the Northern Mariana Islands during a meeting that had been arranged by undercover agents posing as American businessmen. The agents arranged the meeting under the guise of picking up their purchase of pirated software, design packaging and 20 gigabytes of proprietary data, and to discuss a plan to transmit cracked software over the Internet so they could resell it to small businesses in the United States.


After the arrest, agents recovered six disks from Mr. Li containing an assortment of data pirated from an unidentified American software company, including military and civilian aircraft image models and a software module containing data about the International Space Station.


Edward J. McAndrew, one of the prosecutors on the case, said Mr. Li’s arrest was among the largest criminal copyright cases to be successfully prosecuted by the government.


Mr. McAndrew and his colleague, David L. Hall, explained in court documents that once Mr. Li obtained cracked software, he would advertise it on his Web sites, which also included www.cad100.net and www.dongle-crack-download.com. Mr. Li’s customers would then wire him money, some of which he deposited in an account at the Bank of China. From February 2008 to June 2011, Mr. Li and his customers exchanged more than 25,000 e-mails about pirated products, according to the government, which obtained a search warrant for his Gmail account.


Mr. Li used his Gmail account to orchestrate more than 500 illegal transactions with customers in at least 28 states and more than 60 foreign countries, according to court documents. Software was pirated from more than 200 manufacturers.


Mr. McAndrew said none of the pirated software obtained by the undercover agents from Mr. Li contained classified material. But Mr. McAndrew said the government could not determine whether any classified material was distributed to other buyers since it did not have access to all the pirated products that Mr. Li sold.


One of Mr. Li’s biggest customers was Cosburn Wedderburn, a NASA electronics engineer, who bought 12 cracked software programs with a retail value exceeding $1.2 million. Another was Dr. Wronald Best, chief scientist at an unidentified government contractor that provides services to the United States military and law enforcement, like radio transmissions, microwave technology and vacuum tubes used in military helicopters. Dr. Best exchanged more than 260 e-mails with Mr. Li to obtain 10 cracked software programs, with a retail value of more than $600,000, prosecutors said.


Both Mr. Wedderburn and Dr. Best pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Both are awaiting sentencing.


Starting in January 2010, undercover agents began buying pirated software from Mr. Li’s Web sites, receiving electronic files with the pirated software or hyperlinks that allowed the agents to download the software from servers in the United States.


In all, the agents paid the Lis $8,615 for the software.


For instance, in January 2010, the agents bought a pirated copy of Satellite Tool Kit 8.0, a software product from Analytical Graphics that has a retail value of more than $150,000. The software includes several functions used by the military and intelligence communities, including three-dimensional warfare simulations.


Mr. Li’s e-mails suggest he was aware of the illegality of his venture, prosecutors say. “I am not a crack production engineers (my job is to collect)(.) This is an international organization created to crack declassified document (s),” he said in a 2009 e-mail. In another he wrote, “I need to use your money to seek the help of experts to cracker master I earn 10 percent of the profits.”


One customer asked who did the cracking. “Experts crack,” Mr. Li wrote. “Chinese people. Sorry can not reveal more.”


Read More..

The Lede Blog: Armstrong Set to Appear on Oprah Next Week, as New Allegation Surfaces

Label:

Last Updated, Wednesday, 10:48 a.m. The year before his seventh and final Tour de France victory, Lance Armstrong offered to donate “in excess of $150,000″ to the antidoping agency in charge of keeping American athletes from using performance-enhancing drugs, according to the organization’s chief executive.

The latest accusation against Armstrong, the disgraced former cyclist, was made by the current head of the United States Anti-Doping Agency, Travis Tygart, in an interview with CBS News posted online on Tuesday. In October, Usada stripped Armstrong of all of his titles and barred him from competition for life following the release of a 202-page report into what the agency called “the most sophisticated, professionalized and successful doping program that sport has ever seen.”

As my colleague Juliet Macur reported, Armstrong, who has so far denied all allegations of cheating, “has told associates and antidoping officials that he is considering publicly admitting that he used banned performance-enhancing drugs and blood transfusions during his cycling career.” Late Tuesday, Oprah Winfrey announced that she “will speak exclusively with Lance Armstrong in his first no-holds-barred interview,” to be broadcast next week on her network.

As the cycling journalist Lionel Birnie notes, the Oprah Winfrey Network is a joint venture with Discovery Communications, the broadcaster that sponsored Armstrong’s team in 2005.

Samantha Lane, a reporter for The Age in Australia, pointed out on Twitter that Winfrey and Armstrong looked comfortable together in a photograph published in the May 2004 issue of O, The Oprah Magazine with an interview of the cyclist before that year’s Tour de France.

The network’s logo was emblazoned across the victor’s yellow jersey Armstrong wore on the top step of the podium in Paris that year, as he lectured “the people that don’t believe in cycling, the cynics and the skeptics.”

Directly addressing those who accused him of doping that day, Armstrong said, “I’m sorry for you, I’m sorry you can’t dream big and I’m sorry you don’t believe in miracles, but this is one hell of a race, this is a great sporting event and you should stand around and believe. You should believe in these athletes and you should believe in these people. I’m a fan of the Tour de France for as long as I live and there’s no secrets — this is a hard sporting event and hard work wins it.”

The notion of Armstrong confessing on Oprah was pre-mocked nearly two years ago by the bike racers and cartoonists Andy Shen and Dan Schmalz in their cult comic strip about the soap-operatic world of professional cycling, “As the Toto Turns,” for nyvelocity.com.

Another journalist who writes about cycling, Shane Stokes, suggested that Armstrong might expect Winfrey to go easy on him, since she let another disgraced athlete, Marion Jones, claim during a 2008 interview that she had used performance-enhancing drugs unintentionally.

Marion Jones claimed during a 2008 interview with Oprah Winfrey that she had used performance-enhancing drugs unintentionally.

Just after news of the interview broke, Kathy LeMond, whose husband, Greg, is now the only American to win the Tour de France, offered to put Winfrey in touch with people who could give her a crash course on the culture of professional cycling.

Joe Lindsey of Bicycling Magazine asked his Twitter followers to help Winfrey by suggesting some tough questions.

The complete CBS interview with the antidoping official is scheduled to be broadcast on Wednesday, during the premier of a new program, “60 Minutes Sports.” In one portion released on Tuesday, Tygart said it was “totally inappropriate” that Armstrong had donated about $100,000 to the International Cycling Union, a regulatory body involved in drug testing, during his career. He then revealed that someone representing Armstrong had offered to give the American antidoping agency more than $150,000 at some point in 2004. “It was a clear conflict of interest for Usada,” Tygart said. “We had no hesitation in rejecting that offer.” Pressed further about the amount of the proposed donation, Tygart said that it was about $250,000.

In another portion of the interview, broadcast on the CBS Evening News on Tuesday, Tygart said that Armstrong had tried to intimidate former teammates who had testified to a federal grand jury about his doping. The official also revealed that he personally had received death threats as a result of his investigation into the cancer survivor who was once a hero to millions.

Read More..

Frequent Flier: When Even 4 Hours of Layover Time Isn’t Enough

Label:





William Boutelle cycling on Lismore Isle in Scotland. He is  a psychiatrist at ServiceNet, which provides clinical services in Northampton, Mass.





Q. How often do you fly for business?


A. About twice a month, mostly domestic.


Q. What’s your least favorite airport?


A. Philadelphia International. Something always gets messed up there, without fail.


Q. Of all the places you’ve been, what’s the best?


A. The Greek islands. I love the people, their sense of independence, the ambience and, let’s face it, the islands are great for a beer on the beach.


Q. What’s your secret airport vice?


A. I don’t know if it’s a vice, but I try to always book a layover in Denver. There’s a great restaurant in the airport where I can get the best filet mignon. It’s my red meat quota until I get another chance to fly through there.






I WORKED for more than 30 years for the government as a psychiatrist with the Department of Veterans Affairs system. I flew all the time for meetings and other bureaucratic events. I now work in the private sector as a psychiatrist, and still fly for business about  twice a month.


I don’t like flying much. If I could take a train, that’s what I would do.  I don’t mind talking to seatmates, but I don’t advertise what I do. I might say I’m a doctor, and if they ask me what kind, I’ll usually answer “a pretty good one.”  I don’t want to get into a discussion about psychiatry when I’m trapped in a plane.


I’ve had my share of flying misadventures, but nothing like one recent experience where everything that could go wrong, did.


My wife and I were coming home  from Scotland. We booked plenty of time between our flight from Edinburgh to London and then on to Boston. We booked through a  British carrier, but the  London-to-Boston leg was subcontracted to an American carrier. We were feeling very hopeful that everything was going to go smoothly. That is, until we  got to the airport and saw the plane we were supposed to board was empty. Other travelers were gathering, so we figured that we were in the right place. After about  90 minutes, we found out the delay was caused by fog at Heathrow.


We finally boarded, but then we sat on the runway for another hour because we couldn’t take off because of the backup at Heathrow. We started with a four-hour cushion of time between leaving Scotland, landing in London and then going to Boston. So much for that, and even more time was eaten up as we  circled Heathrow because of continued congestion.


We finally landed, but then had to wait for an open gate, and then found out we had to be bused to a terminal. By the time we got to Heathrow Terminal 5, our Boston flight was gone.


We went to the flight connections desk, where about 2,000 people were in line ahead of us. I called the American carrier whose flight we missed and was told that since it wasn’t a simple round-trip booking, I would have to buy another ticket to get home. I refused, and was told to call  the British carrier with whom I booked the ticket originally.


They told me that we could get on a flight offered by the same American carrier I had just spoken with. Fine by me. It was leaving in 90 minutes. I asked what gate the flight was departing from. It was Terminal 3. It took 45 minutes to get there, only to find out bookings for the flight had closed.


I’m pretty sure tears of frustration were streaming down my face as I explained we had just been sent there from Terminal 5. They found our names, which was great, but we still had to clear security, and then make it to the gate. I was beat up at this point, but we finally boarded our flight home only to discover that we left a backpack at security. The attendant gave me 10 minutes to run back to security and then run back to the plane.


I’m 72 years old. I thought I was going to die, but somehow ran the mini-marathon. When I finally sat down on the plane, we were delayed another 30 minutes. I drank wine. We landed in Boston. My luggage was lost. It did arrive one week later, dirty laundry still intact. After that ordeal, I figured someone might have at least washed it.


 


 


By William Boutelle, as told to Joan Raymond. E-mail: joanraymond@nytimes.com



Read More..

Oil Sand Industry in Canada Tied to Higher Carcinogen Level

Label:

Todd Korol/Reuters


An oil sands mine Fort McMurray, Alberta.







OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.




For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure.


“One of the biggest challenges is that we lacked long-term data,” said John P. Smol, the paper’s lead author and a professor of biology at Queen’s University in Kingston, Ontario. “So some in industry have been saying that the pollution in the tar sands is natural, it’s always been there.”


The researchers found that to the contrary, the levels of those deposits have been steadily rising since large-scale oil sands production began in 1978.


Samples from one test site, the paper said, now show 2.5 to 23 times more PAHs in current sediment than in layers dating back to around 1960.


“We’re not saying these are poisonous ponds,” Professor Smol said. “But it’s going to get worse. It’s not too late but the trend is not looking good.” He said that the wilderness lakes studied by the group were now contaminated as much as lakes in urban centers.


The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.


Battles are also under way over the proposed construction of the Keystone XL pipeline, which would move the oil down through the western United States and down to refineries along the Gulf Coast, or an alternative pipeline that would transport the oil from landlocked Alberta to British Columbia for export to Asia.


The researchers, who included scientists at Environment Canada’s aquatic contaminants research division, chose to test for PAHs because they had been the subject of earlier studies, including one published in 2009 that analyzed the distribution of the chemicals in snowfall north of Fort McMurray. That research drew criticism from the government of Alberta and others for failing to provide a historical baseline.


“Now we have the smoking gun,” Professor Smol said.


He said he was not surprised that the analysis found a rise in PAH deposits after the industrial development of the oil sands, “but we needed the data.” He said he had not entirely expected, however, to observe the effect at the most remote test site, a lake that is about 50 miles to the north.


Asked about the study, Adam Sweet, a spokesman for Peter Kent, Canada’s environment minister, emphasized in an e-mail that with the exception of one lake very close to the oil sands, the levels of contaminants measured by the researchers “did not exceed Canadian guidelines and were low compared to urban areas.”


He added that an environmental monitoring program for the region announced last February 2012 was put into effect “to address the very concerns raised by such studies” and to “provide an improved understanding of the long-term cumulative effects of oil sands development.”


Earlier research has suggested several different ways that the chemicals could spread. Most oil sand production involve large-scale open-pit mining. The chemicals may become wind-borne when giant excavators dig them up and then deposit them into 400-ton dump trucks.


Upgraders at some oil sands projects that separate the oil bitumen from its surrounding sand are believed to emit PAHs. And some scientists believe that vast ponds holding wastewater from that upgrading and from other oil sand processes may be leaking PAHs and other chemicals into downstream bodies of water.


Read More..

Oil Sand Industry in Canada Tied to Higher Carcinogen Level

Label:

Todd Korol/Reuters


An oil sands mine Fort McMurray, Alberta.







OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.




For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure.


“One of the biggest challenges is that we lacked long-term data,” said John P. Smol, the paper’s lead author and a professor of biology at Queen’s University in Kingston, Ontario. “So some in industry have been saying that the pollution in the tar sands is natural, it’s always been there.”


The researchers found that to the contrary, the levels of those deposits have been steadily rising since large-scale oil sands production began in 1978.


Samples from one test site, the paper said, now show 2.5 to 23 times more PAHs in current sediment than in layers dating back to around 1960.


“We’re not saying these are poisonous ponds,” Professor Smol said. “But it’s going to get worse. It’s not too late but the trend is not looking good.” He said that the wilderness lakes studied by the group were now contaminated as much as lakes in urban centers.


The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.


Battles are also under way over the proposed construction of the Keystone XL pipeline, which would move the oil down through the western United States and down to refineries along the Gulf Coast, or an alternative pipeline that would transport the oil from landlocked Alberta to British Columbia for export to Asia.


The researchers, who included scientists at Environment Canada’s aquatic contaminants research division, chose to test for PAHs because they had been the subject of earlier studies, including one published in 2009 that analyzed the distribution of the chemicals in snowfall north of Fort McMurray. That research drew criticism from the government of Alberta and others for failing to provide a historical baseline.


“Now we have the smoking gun,” Professor Smol said.


He said he was not surprised that the analysis found a rise in PAH deposits after the industrial development of the oil sands, “but we needed the data.” He said he had not entirely expected, however, to observe the effect at the most remote test site, a lake that is about 50 miles to the north.


Asked about the study, Adam Sweet, a spokesman for Peter Kent, Canada’s environment minister, emphasized in an e-mail that with the exception of one lake very close to the oil sands, the levels of contaminants measured by the researchers “did not exceed Canadian guidelines and were low compared to urban areas.”


He added that an environmental monitoring program for the region announced last February 2012 was put into effect “to address the very concerns raised by such studies” and to “provide an improved understanding of the long-term cumulative effects of oil sands development.”


Earlier research has suggested several different ways that the chemicals could spread. Most oil sand production involve large-scale open-pit mining. The chemicals may become wind-borne when giant excavators dig them up and then deposit them into 400-ton dump trucks.


Upgraders at some oil sands projects that separate the oil bitumen from its surrounding sand are believed to emit PAHs. And some scientists believe that vast ponds holding wastewater from that upgrading and from other oil sand processes may be leaking PAHs and other chemicals into downstream bodies of water.


Read More..

Virtual U.: Massive Open Online Courses Prove Popular, if Not Lucrative Yet

Label:



Online Learning, en Masse:
More top colleges are offering free massive open online courses, but companies and universities still need to figure out a way to monetize them.







MOUNTAIN VIEW, Calif. — In August, four months after Daphne Koller and Andrew Ng started the online education company Coursera, its free college courses had drawn in a million users, a faster launching than either Facebook or Twitter.




The co-founders, computer science professors at Stanford University, watched with amazement as enrollment passed two million last month, with 70,000 new students a week signing up for over 200 courses, including Human-Computer Interaction, Songwriting and Gamification, taught by faculty members at the company’s partners, 33 elite universities.


In less than a year, Coursera has attracted $22 million in venture capital and has created so much buzz that some universities sound a bit defensive about not leaping onto the bandwagon.


Other approaches to online courses are emerging as well. Universities nationwide are increasing their online offerings, hoping to attract students around the world. New ventures like Udemy help individual professors put their courses online. Harvard and the Massachusetts Institute of Technology have each provided $30 million to create edX. Another Stanford spinoff, Udacity, has attracted more than a million students to its menu of massive open online courses, or MOOCs, along with $15 million in financing.


All of this could well add up to the future of higher education — if anyone can figure out how to make money.


Coursera has grown at warp speed to emerge as the current leader of the pack, striving to support its business by creating revenue streams through licensing, certification fees and recruitment data provided to employers, among other efforts. But there is no guarantee that it will keep its position in the exploding education technology marketplace.


“No one’s got the model that’s going to work yet,” said James Grimmelmann, a New York Law School professor who specializes in computer and Internet law. “I expect all the current ventures to fail, because the expectations are too high. People think something will catch on like wildfire. But more likely, it’s maybe a decade later that somebody figures out how to do it and make money.”


For their part, Ms. Koller and Mr. Ng proclaim a desire to keep courses freely available to poor students worldwide. Education, they have said repeatedly, should be a right, not a privilege. And even their venture backers say profits can wait.


“Monetization is not the most important objective for this business at this point,” said Scott Sandell, a Coursera financier who is a general partner at New Enterprise Associates. “What is important is that Coursera is rapidly accumulating a body of high-quality content that could be very attractive to universities that want to license it for their own use. We invest with a very long mind-set, and the gestation period of the very best companies is at least 10 years.”


But with the first trickles of revenue now coming in, Coursera’s university partners expect to see some revenue sooner.


“We’ll make money when Coursera makes money,” said Peter Lange, the provost of Duke University, one of Coursera’s partners. “I don’t think it will be too long down the road. We don’t want to make the mistake the newspaper industry did, of giving our product away free online for too long.”


Right now, the most promising source of revenue for Coursera is the payment of licensing fees from other educational institutions that want to use the Coursera classes, either as a ready-made “course in a box” or as video lectures students can watch before going to class to work with a faculty member.


Ms. Koller has plenty of other ideas, as well. She is planning to charge $20, or maybe $50, for certificates of completion. And her company, like Udacity, has begun to charge corporate employers, including Facebook and Twitter, for access to high-performing students, starting with those studying software engineering.


This fall, Ms. Koller was excited about news she was about to announce: Antioch University’s Los Angeles campus had agreed to offer its students credit for successfully completing two Coursera courses, Modern and Contemporary American Poetry and Greek and Roman Mythology, both taught by professors from the University of Pennsylvania. Antioch would be the first college to pay a licensing fee — Ms. Koller would not say how much — to offer the courses to its students at a tuition lower than any four-year public campus in the state.


“We think this model will spread, helping academic institutions offer their students a better education at a lower price,” she said.


Read More..

Euro Watch: Unemployment Continues to Climb in Euro Zone

Label:






PARIS — Unemployment in the euro zone rose to a new record in November, according to data released Tuesday that also showed that the troubles in the 17-nation currency zone are straining its strongest member, Germany.




The euro zone jobless rate rose to a new high of 11.8 percent in November from 11.7 percent in October, Eurostat, the statistical agency of the European Union, reported from Luxembourg. Eurostat estimates that about 18.8 million in the euro zone were unemployed in November – 2 million more than a year earlier.


Germany has provided necessary momentum to Europe’s overall economy throughout the past three years, proving resilient to the crisis plaguing the common currency, largely due to the strength of its exports.


But on Tuesday, the Federal Statistics Office in Berlin said that German imports slid 3.7 percent in November, while exports dropped 3.4 percent, resulting in a narrowing of Germany’s trade surplus to €14.6 billion, or $19 billion.


German factory orders also fell in November amid weak demand from outside the euro area, the Economy Ministry in Berlin said Tuesday. Orders, adjusted for seasonal swings and inflation, dropped 1.8 percent from October, when they jumped a revised 3.8 percent.


“The November numbers are not a one-off but an extension of the current trend of weakening exports,” Carsten Brzeski, an economist at ING, wrote in a research note on Tuesday in which he pointed out an overall decline in German exports of about 4 percent since last May.


“Today’s data confirmed our view that exports should have turned from driver of growth into drag on growth,” he wrote.


A separate report from Eurostat showed retail sales fell 2.6 percent in November from a year earlier, though they managed a 0.1 percent gain from October.


The latest dire reports come as the governing council of the European Central Bank prepares to hold a policy meeting Thursday, followed by an interest-rate announcement. Despite a sharp dip in bank lending reported last week that has some analysts suggesting the central bank might try new steps to stimulate the economy, economists surveyed by Reuters expect the E.C.B. to leave policy unchanged this month, as it waits for a clearer picture of this year’s economic situation to emerge.


Like their counterparts in the United States, Japan and Britain, the euro zone monetary authorities have already opened the spigots, allowing banks to borrow essentially as much as they want at the benchmark rate. Mario Draghi, the E.C.B. governor, has pledged to do whatever is necessary to ensure the stability of the euro, including, if necessary, buying the sovereign bonds of Spain and Italy to hold their borrowing costs to sustainable levels.


The central bank's action has succeeded in calming markets and driving down government bond yields for embattled countries. The European Commission reported Tuesday that an index of economic sentiment in the euro zone had improved in December by 1.3 points, to 87.0 “Economic sentiment in the euro area improved among consumers and across all sectors, except retail trade,” the commission reported.


Europe also got a vote of confidence from Tokyo on Tuesday, as Finance Minister Taro Aso said Japan would buy bonds of the European Stability Mechanism, the euro zone bailout fund, as well as euro sovereign debt.


“The financial stability of Europe will help the stability of foreign exchange rates, including the yen,” Mr. Aso was quoted by the Nikkei newspaper as saying.


Attacking joblessness may require governments to ease back on austerity measures that many economists, including some at the International Monetary Fund, say might have gone too far. In France, President François Hollande has vowed to turn around the flagging labor market in France, where, according to Eurostat, unemployment as 10.5 percent in November.


Eurostat said Spain, suffering from the collapse of a property bubble and struggling to cope with tough austerity measures, had the highest unemployment rate, at 26.6 percent. Greece, the beleaguered country where the sovereign debt crisis began, was next at 26.0 percent, according to September data. Austria, at 4.5 percent, tiny Luxembourg, at 5.1 percent, and Germany, at 5.4 percent, were the lowest.


Worryingly, youth unemployment continues to grow, with 5.8 million people under 25 classified as jobless in November, up 420,000 from a year earlier.


In Berlin for talks with Chancellor Angela Merkel on Tuesday, the Greek prime minister, Antonis Samaras, singled out youth unemployment as one of the largest challenges Greece faces in trying to revive its economy. But he told reporters before meeting the chancellor that his overall message was one of optimism.


“I see the glass half-full,” Mr. Samaras said before taking part in an economic conference held behind closed doors in the German capital. “We’re delivering and Europe’s helping.”


It was the Greek prime minister’s second trip to Berlin since taking office and although the mood appeared lighter than during his inaugural visit in August, which came on the heels of calls from within Ms. Merkel’s government for Greece to leave the common currency, his country still faces enormous challenges.


Greece is focusing its efforts on winning back the trust of Europeans, as well as the markets, Mr. Samaras said. But he stressed that the high unemployment, especially among young people, was weighing heavily on Greeks.


“I would like to make it clear up front that our country is making enormous efforts and many are paying a high price, in order to get things back on track,” Mr. Samaras said.


Ms. Merkel stressed that Greece’s European partners must not leave it alone with its troubles, perhaps wary of the fragility of Mr. Samaras’ three-party coalition government which has been forced to push through deeply unpopular, painful reforms.


“We also must do everything to guarantee economic growth, security and jobs,” Ms. Merkel said.


David Jolly reported from Paris. James Kanter in Brussels and Niki Kitsantonis in Athens contributed reporting.


Read More..

DealBook: After Madoff, Financial Fraud Defies Policing

Label:

LOS ANGELES — To Philip Horn, the Braemar Country Club was not just a golf course, it was an extension of his office. Most weeks, Mr. Horn, a financial adviser at Wells Fargo, chatted up potential clients between holes at the upscale club set against the backdrop of the Santa Monica Mountains.

“I always thought, ‘This is a great guy and a straight shooter,’ ” said Barry Zelner, one of several country club members who invested with Mr. Horn.

Now, those same clients are wondering what went wrong.

After Wells Fargo alerted him to account discrepancies, Mr. Zelner, a corporate lawyer, said he stormed onto the club’s rolling greens in April, accusing the broker of theft. “Tell them what you did, Phil,” the lawyer bellowed among a crowd of members.

A few months later, Mr. Horn pleaded guilty to defrauding more than a dozen clients and Wells Fargo.

While Mr. Horn is a relatively minor player in the pantheon of financial fraud, his actions highlight the persistent problems with policing the industry, even after the wave of rules enacted since the collapse of Bernard L. Madoff’s giant Ponzi scheme in 2008.

And the challenge of oversight is not becoming any easier, with the ranks of financial advisers swelling. As new regulations crimp profits, big banks like Wells Fargo are ramping up their brokerage businesses in an effort to make up for lost revenue.

Amid the renewed focus, banks have spent millions of dollars to beef up their compliance systems and improve their oversight. Regulators, too, have bolstered their efforts, increasing enforcement and adopting new measures.

Every month, the Financial Industry Regulatory Authority, a Wall Street watchdog, penalizes more than 100 brokers for various actions, including unauthorized trading and fraudulent activities, as well as smaller violations.

“Theft, Ponzi schemes and other financial scams continue to happen at an alarming rate,” said Thomas Ajamie, a plaintiff’s lawyer who represents two of Mr. Horn’s clients.

For more than two years, Mr. Horn systematically executed and canceled trades in clients’ portfolios, pocketing the profits. To avoid detection, he limited his paper trail and made it appear that the trades originated in his own account, according to court documents.

“It’s simply unbelievable to me that this kind of fraud could happen for so long without Wells Fargo doing anything about it,” Mr. Zelner said. After meeting Mr. Horn on the golf course, Derek Brown invested more than $10 million with him in 2006, assured by the Wells Fargo name on his business card. “This wasn’t just Schlepper & Schlepper,” Mr. Brown, a retired pharmaceutical executive, said.

A Wells Fargo spokeswoman, Raschelle Burton, said the bank discovered the problems with Mr. Horn in October 2011 and immediately alerted law enforcement agencies. Wells Fargo also fired Mr. Horn. Mr. Horn is set to be sentenced on Monday. Prosecutors have recommended an 18-month sentence. A lawyer for Mr. Horn declined to comment.

Some of Mr. Horn’s clients are struggling to understand the extent of their losses. Mr. Brown and Mr. Zelner say that Wells Fargo has not let them review the trading records. Instead, they have had to rely on the bank’s analysis. “The firm believes it has provided appropriate information,” Ms. Burton said.

Prosecutors estimate the scheme’s damages at $732,000. But there are indications the losses could be higher. Last year, Wells Fargo, without explanation, transferred roughly $500,000 to an account that Mr. Brown has at Merrill Lynch. Mr. Brown said he planned to file a lawsuit seeking additional compensation.

While some clients still have concerns, Wells Fargo said the matter had been resolved and declined to provide further details. “In cases where his actions harmed the clients, the firm has either credited those accounts or reached another resolution with those clients,” Ms. Burton said.

On paper, Mr. Horn seemed like a model broker. After a short stint at Lehman Brothers in New York, he spent a decade at Citigroup in Los Angeles, moving to Wells Fargo in 2006. For much of his career, his regulatory record was clean, with few customer complaints.

At Wells Fargo, Mr. Horn, who worked in a team of brokers, seemed to land clients without an aggressive approach. He wooed clients slowly, often over many years. Between golf holes, he would casually mention winning trades, almost as an aside.

He nurtured friendships with clients. Norman Strang, an 80-year-old retired aerospace executive, said his wife regularly cooked dinner for Mr. Horn at the couple’s home in Pacific Palisades, Calif. “Here he was being this friendly guy, and yet he stole several thousands of dollars from our account.” Mr. Horn went to the weddings of both Mr. Brown’s children and planned to join him on a charitable trip to Israel and Morocco in the fall of 2011.

In 2011, Mr. Horn invited clients to his 50th birthday party inspired by the movie “Saturday Night Fever.” The tall and lanky Mr. Horn wore a white disco suit and handed out CDs with a cover that superimposed his head onto John Travolta’s body.

Given Mr. Horn’s gregarious nature, clients say they dismissed what should have been red flags. According to Mr. Zelner, Mr. Horn avoided meeting at his office, preferring the golf course. Between games, they would meet in the country club’s parking lot, where the broker would pull trading documents from his trunk.

“Phil would present his investments as if he was giving you something that would protect you,” said Mr. Zelner, adding that “he was also just a guy you wanted to drink with.”

Many clients trusted him. Each month, they received thick booklets detailing trading activity, but few pored over the trades. “If I had time to do that, I wouldn’t need a broker,” Mr. Brown said.

Amid hundreds of legitimate transactions, a dubious trade was also hard to spot. In one instance, Mr. Horn bought 1,000 shares of an exchange-traded fund for $77.93 apiece on Feb. 15, 2011, according to Mr. Brown’s bank statements. A month later, Mr. Horn canceled the trade. By then, the price had surged to $86. But the transaction was buried within more than 50 double-sided pages. It appeared as a canceled trade, which by itself was not alarming.

Mr. Brown and his wife did not know anything was amiss until they received a startling call from an executive at Wells Fargo. While the couple were celebrating the Jewish holidays in Toronto in October 2011, the bank executive told them about the problems with their account. Mr. Brown added, “He said we had a ‘six-figure problem.’ ”

A version of this article appeared in print on 01/07/2013, on page A1 of the NewYork edition with the headline: Madoff Aside, Financial Fraud Defies Policing.
Read More..

Tehran Is Choked by Annual Buildup of Air Pollution

Label:




TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.




For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.


On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.


Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.


“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.


The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.


Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.


But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.


Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.


A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.


Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.


The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.


The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.


On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.


In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.


Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.


Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.


For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.


“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”


Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.


“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”


Read More..

Tehran Is Choked by Annual Buildup of Air Pollution

Label:




TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.




For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.


On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.


Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.


“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.


The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.


Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.


But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.


Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.


A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.


Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.


The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.


The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.


On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.


In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.


Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.


Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.


For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.


“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”


Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.


“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”


Read More..

Subscribe to: Posts (Atom)