Saturday, December 3, 2011

Student with HIV sues private residential school

(CNN) -- A 13-year-old Pennsylvania boy is suing a private residential school for discrimination after it refused to admit him because he has HIV, his attorneys said.

The eighth grader, whose name wasn't disclosed in a federal lawsuit filed in Philadelphia, alleges that the Milton Hershey School in Hershey, Pennsylvania, "violated multiple anti-discrimination laws that protect the rights of people with HIV to remain free from unwarranted discrimination."

Chocolate maker Milton S. Hershey and his wife, Catherine, founded the school in 1909. The school provides a cost-free education and coeducational home for pre-kindergarten through 12th grade students who come from a low-income family, the lawsuit said.

The youngster sought enrollment last February for this school year, the lawsuit said. The boy is an honor roll student and a student athlete, and his medication of five pills per day and one vitamin wouldn't impact his school schedule, the suit says.

Executive director Ronda B. Goldfein of the AIDS Law Project of Pennsylvania, which is representing the boy and his mother, likened the case to Ryan White, who died at age 18 in 1990 and had been expelled from middle school when his HIV diagnosis became widely known.

"Like Ryan White, this young man is a motivated, intelligent kid who poses no health risk to other students, but is being denied an educational opportunity because of ignorance and fear about HIV and AIDS," said Goldfein, an attorney for the boy and mother.

The suit, filed Wednesday, was timed to coincide with Thursday's World AIDS Day, the law project said.

Goldfein told CNN that she was "stunned that in the third decade of AIDS (Milton Hershey School) still thinks it is too dangerous to admit a student who is HIV positive. It really shows how far we haven't come."

In response, the school said it had been intending to seek a federal court review of its decision denying enrollment to the boy, but the law project "took the adversarial action of filing a lawsuit against the school," said spokeswoman Connie McNamara.

"We believe we made the right, legal decision under the law," McNamara told CNN.

"The decision to deny enrollment was a challenging one for us to make. Like all our enrollment decisions, we need to balance our desire to serve the needs of an individual child seeking admission with our obligation to protect the health and safety of all 1,850 children already in our care," McNamara added in a statement.

McNamara said the case is nothing like Ryan White's.

"Milton Hershey School is not a day school, where students go home to their family at the end of the day. Instead, this is a unique home-like environment, a pre-K -12 residential school where children live in homes with 10-12 other students on our campus 24 hours a day, seven days a week," McNamara said.

"In order to protect our children in this unique environment, we cannot accommodate the needs of students with chronic communicable diseases that pose a direct threat to the health and safety of others. The reason is simple. We are serving children, and no child can be assumed to always make responsible decisions which protect the well being of others," McNamara said.


Source

Friday, December 2, 2011

Penn State finalizes dismissals of Paterno and Spanier

(CNN) -- Penn State University officially dismissed longtime football coach Joe Paterno and President Graham Spanier on Friday, reaffirming a decision made after a child sex abuse scandal surfaced involving a former assistant football coach.

"The executive committee of the board met via conference call to reaffirm the deliberate leadership decisions that were made," according to a school statement.

University officials removed Paterno and Spanier on November 9, amid allegations that former defensive coordinator Jerry Sandusky was involved in the scandal.

Sandusky, 67, is charged with 40 counts relating to the alleged sexual abuse of eight boys he met through The Second Mile, a nonprofit organization he founded for underprivileged children.

The former coach is free on $100,000 bail and has maintained his innocence.

On Thursday, Sandusky's attorney denied what he called rumors that his client was considering a plea deal.

"The rumors ... are completely unfounded," Joe Amendola told CNN in an e-mail.

Penn State Athletic Director Tim Curley, 57, and the school's vice president for finance and business, Gary Schultz, 62, have also been charged in the scandal. Each faces one count of felony perjury and one count of failure to report abuse allegations.

Attorneys for an alleged sexual abuse victim, meanwhile, say they have reached a settlement with Second Mile that allows it to stay in operation but requires it to obtain court approval before transferring assets or closing. Second Mile also is required to notify the plaintiff about any proposed distribution of assets.

"Our goal in filing this lawsuit was to protect the interests of our clients and other victims," attorney Ben Andreozzi of Harrisburg, Pennsylvania, said in a statement. "This settlement will preserve the assets of the Second Mile, and allow these victims to have a voice before any assets are transferred."

On Wednesday, a 29-year-old man filed the first civil lawsuit against Sandusky, saying Sandusky sexually abused him more than 100 times over several years during the 1990s, when he was a boy.

The accuser, identified in court documents as "John Doe A," was not cited in the report from a grand jury that prompted the charges against Sandusky, said his attorney, Jeff Anderson.

The lawsuit targets The Second Mile, Sandusky and Penn State University.


Source

Winds up to 140 mph hit California

(CNN) -- Powerful winds continued to batter Los Angeles, Las Vegas and other southwestern U.S. locales Thursday -- downing trees, delaying flights and leaving hundreds of thousands without power.

Los Angeles County Fire Inspector Quvondo Johnson told CNN that, as of 4:30 p.m. PT (7:30 p.m ET), firefighters had responded to reports of approximately 460 downed power lines over the previous 24 hours. He estimated that the fire service had received "thousands" of calls total.

Wind gusts stronger than 140 mph -- which would be equivalent to a Category 4 hurricane -- have been measured on the Sierra Crest mountain ridge, according to the National Weather Service.

Lower-lying areas also have been hit hard by Santa Ana winds, with 80 mph gusts expected in Southern California. Santa Ana wind is a condition in which strong winds descend to the Pacific Coast around Los Angeles from inland desert regions, according to the weather service.

It's all part of a system the federal weather agency called "the strongest easterly wind event in the past several years."

The National Weather Service has issued high-wind warnings -- which go into effect when there are sustained winds forecast of 40 mph or stronger or gusts of 58 mph or stronger -- for part of southwestern California as well as along the Sierra Nevada range in the eastern part of the state.

Similar warnings were in effect for much of Nevada, as well, with wind advisories also having been issued for other parts of those two states.

Southwestern California has been especially hard-hit, leading Los Angeles County Supervisor Michael Antonovich to issue a state of emergency "to ensure that state and federal financial resources are available to serve county residents impacted by the windstorms."

In a statement, the county noted that Pasadena, Sierra Madre and Monrovia particularly have seen extensive damage, including to private property. The perilous conditions, specifically the strong winds, would likely continue through Friday, the county noted.

As of 5 p.m. PT, Southern California Edison was reporting more than 205,000 households without power, a slight drop from seven hours earlier. Hard-hit communities in the utility's 50,000-square-mile service area include Alhambra, Altadena, Arcadia, El Monte, La Canada Flintridge and San Bernardino, San Gabriel.

"Severe winds and debris have been hampering power restoration efforts by SCE crews, and some customers without power should prepare for the possibility of being without service overnight and possibly longer," the utility said in a news release. "High winds have knocked down thousands of trees and strewn debris across wide areas, limiting and, in some cases, preventing access to equipment. "

The Los Angeles Department of Water and Power reported that, as of 9 p.m. Thursday, about 109,000 of its 1.4 million customers did not have electricity. The department added, in a press release, that it has more than 100 crews responding to more than 1,000 incidents thought to be responsible for the outages, touting the fact that about 100,000 customers had already gotten their electricity restored.

The utility estimated that customers without power -- most of them in the Los Angeles metropolitan area, except for a smattering in San Fernando Valley -- would most likely get service restored in between 24 and 48 hours.

Los Angeles International Airport experienced a partial power outage and significant delays Wednesday night, as well as 20 domestic and three international inbound flights diverted.

iReport: Woman injured from felled tree due to winds

As of late Thursday morning, that airport appeared to be operating normally with minimal delays, said Marshall Lowe, a spokesman for the Los Angeles World Airport Response Coordination Center. The same couldn't necessarily be said for some others, with Lowe noting that there was at one point a roughly one-hour delay for flights destined for Las Vegas' McCarran International Airport.

Several hours later, around 4:30 p.m., the Federal Aviation Administration's website was still reporting a 49-minute average delay for flights to McCarran due to a "traffic management program." But by 7 p.m., no notable delays were being reported.

Wintry weather was a chief concern in that Nevada city, where the weather service issued a freeze watch and forecast light accumulations of snow into Friday morning in addition to strong winds.

Gale warnings were in effect for some Southern California coastal locales, while heavy snow fell over the central and southern Rockies as part of the same system, according to the weather service.

Fire hazards were another potential problem, with the combination of strong winds and moderate-to-low humidity spurring red flag warnings through 6 p.m. PT Friday for Los Angeles and Ventura counties.

Downed power lines adjacent to Occidental College in Los Angeles started a 2-acre grass fire and prompted a precautionary evacuation of those nearby, the Los Angeles County fire department said. No one was injured.


Source

Thursday, December 1, 2011

Al-Zawahiri: We captured American

Islamabad, Pakistan (CNN) -- Al Qaeda leader Ayman al-Zawahiri has claimed responsibility for the capture in August of a 70-year-old U.S. citizen in Pakistan, according to a number of radical websites known for carrying militants' messages.

In the eighth episode of a series called "A Message of hope and glad tidings to our people in Egypt," the speaker sent a "message of support and encouragement" to members of al Qaeda and the Taliban as well as to "our female oppressed prisoners."

"We did not forget you and we will not forget you, God willing, and therefore in order to release you, we have been successful, thanks to God almighty, to capture an American Jew called Warren Weinstein," he said.

He described the captive as "a former employee and a current contractor working with the U.S. government in its aid program to Pakistan, which aims to fight the jihad in Pakistan and Afghanistan, and just like the Americans arrest any suspect linked to al Qaeda and the Taliban, even if they were far related."

The speaker then listed eight demands that he said, if met, would result in Weinstein's release. They included the lifting of the blockade on movement of people and trade between Egypt and Gaza; an end to bombing by the United States and its allies in Pakistan, Afghanistan, Yemen, Somalia and Gaza; the release of anyone arrested on charges of belonging to al Qaeda and the Taliban; the release of all prisoners in Guantanamo and American secret prisons and the closure of Guantanamo and the other prisons; the release of terrorists convicted in the 1993 bombing of the World Trade Center; and the release of relatives of Osama bin Laden, the founder of al Qaeda who was killed in May in Pakistan.

"Your government is torturing our prisoners, and we have never tortured your prisoner," he added. "Your government signed the Geneva Conventions, and then threw it in the rubbish bin, and even though we did not sign the Geneva Conventions, we are honoring your prisoner."

The speaker said Weinstein's fate lies with U.S. President Barack Obama. "I warn you of Obama's lies and deceit because he hopes that this man gets killed so he doesn't have to worry about his problem. Obama is a liar. He lies, lies and will lie. He may say to you, 'I sought the release of your relative but al Qaeda got stubborn,' so do not believe him. And he may say to you, 'I tried to contact them, but they did not answer,' so do not believe him. He may tell you, 'I do everything in my power to release your relative,' but again do not believe him."

He urged Weinstein's relatives to pressure Obama to accede to his demands "if you want to bring back your relative."

A U.S. official said the circumstances surrounding Weinstein's disappearance have been murky, but added, "It's entirely possible that al Qaeda or one of its militant allies may be holding Mr. Weinstein and the statement by Zawahiri supports this conclusion."

The official said that, based on the materials found in the raid on Osama bin Laden's compound, al Qaeda's involvement with a kidnapping would not be surprising. "The documents from bin Laden's hideout show his frustrated deputies were considering kidnapping and other criminal enterprises as a means of striking from their weakened state," said the official, pointing to the terrorist groups' failure to conduct big attacks against Western targets.

Reached Thursday at her home in Rockville, Maryland, Weinstein's wife, Elaine, said, "I just found out myself two minutes ago when somebody told me. I have nothing to add and no information for you."

Weinstein was abducted from his home in Lahore on August 13. As his three security guards prepared for the meal before the Ramadan fast, three men knocked at the front gate and offered food for the meal -- a traditional practice among Muslims during the holy month of Ramadan, Lahore police said.

Once the gate was opened, the three men forced their way in, while five others entered the house from the back, tied up the guards and duct-taped their mouths, according to police. They pistol-whipped the driver and forced him to take them to Weinstein's room, where they hit Weinstein on the head with a pistol and forced him out of the house and into a waiting car, police said.

A police official said August 23 that three suspects had been arrested in Weinstein's kidnapping.

Weinstein works for J.E. Austin Associates Inc., a consulting firm based in Arlington, Virginia. He is a development expert, according to the company's website. The company did not immediately respond to a call and an e-mail seeking reaction.


Source

Sandusky attorney denies plea deal being considered

(CNN) -- The attorney for former Penn State University assistant football coach Jerry Sandusky denied what he called "rumors" Thursday that his client was considering a plea deal.

"The rumors ... are completely unfounded," Joe Amendola told CNN in an e-mail.

Sandusky, 67, is charged with 40 counts relating to the alleged sexual abuse of eight boys he met through The Second Mile, a nonprofit organization he founded for underprivileged children. He is free on $100,000 bail and has maintained his innocence.

Amendola said he was asked in a recent interview whether his strategy would change if the attorney general filed new charges involving 15 or 20 new alleged victims.

"I responded, if that happened, in addition to the planned course of defending against all the charges, I would have to discuss other possible alternatives with Jerry," he said. "I wouldn't be fulfilling my legal obligation to him if I didn't discuss those other alternatives with him, including the possibility of a plea.

"Jerry has never considered and is not currently considering a plea in his case," Amendola said. "He has always maintained his innocence and continues to do so as we prepare for his preliminary hearing."

Separately, two organizations aimed at preventing sexual violence said Thursday they have partnered with Penn State to focus on that mission. As part of the three-year partnership, Penn State has pledged $1.5 million to facilitate the effort, said a joint statement from the Pennsylvania Coalition Against Rape and the National Sexual Violence Resource Center.

The organizations said they "are combining their expertise and resources to work with Penn State University to focus on preventing sexual violence."

The Penn State scandal, which has raised questions of whether university and community leaders took appropriate action about allegations involving Sandusky, "is not unique," Delilah Rumberg, chief executive officer for the two organizations, said in the statement.

"We know that adults see or hear things that make them uncomfortable, or may even have a child disclose sexual abuse, but they don't get involved. We want to prevent abuse by equipping people with information, skills and resources."

Penn State Athletic Director Tim Curley, 57, and the school's vice president for finance and business, Gary Schultz, 62, were charged with one count of felony perjury and one count of failure to report abuse allegations.

In addition, Penn State President Graham Spanier and legendary head football coach Joe Paterno lost their jobs soon after Sandusky's arrest amid criticism they did not adequately handle the matter when allegations involving Sandusky arose years earlier.

Attorneys for an alleged sexual abuse victim said Thursday they reached a settlement with Second Mile that allows it to stay in operation but requires it to obtain court approval prior to transferring assets or closing. Second Mile also is required to notify the plaintiff about any proposed distribution of assets.

"Our goal in filing this lawsuit was to protect the interests of our clients and other victims," attorney Ben Andreozzi of Harrisburg, Pennsylvania, said in a statement. "This settlement will preserve the assets of the Second Mile, and allow these victims to have a voice before any assets are transferred."

"We intend to initiate a civil lawsuit seeking damages from the organizations and individuals responsible for the sexual assaults upon our clients," said Andreozzi, who said he represents other alleged victims of Sandusky.

On Wednesday, a 29-year-old man filed the first civil lawsuit against Sandusky, claiming Sandusky sexually abused him more than 100 times over several years during the 1990s, when he was a boy. The accuser, identified in court documents as "John Doe A," was not cited in the report from a grand jury that prompted the charges against Sandusky, his attorney, Jeff Anderson, said.

The lawsuit targets The Second Mile, Sandusky and Penn State University. The school said in a statement Wednesday it had not received the documents and could not comment on pending litigation.

The Second Mile said, "We will review the lawsuit and respond appropriately when we have done so. The Second Mile will adhere to its legal responsibilities throughout this process. As always, our thoughts and prayers are with the victims and their families."

Sandusky told NBC's Bob Costas in an interview that he has been falsely accused and that he only "horsed around" with kids in showers after workouts.


Source

Wednesday, November 30, 2011

Cops: 1 serial killer in 10 N.Y. deaths

NEW YORK (CNN) -- After a nearly year-long investigation, police say they now believe 10 sets of human remains uncovered along a desolate stretch of Long Island, New York, beach are linked to a single killer.

"The theory is now that we're dealing with one serial killer," Suffolk County Police Commissioner Richard Dormer told CNN affiliate WABC on Tuesday.

He noted the killer did not "necessarily do the same thing all the time."

"What's common here is the dumping ground," he added.

Dormer previously said that only the bodies of four females uncovered in December were thought to be the work of a serial killer or killers.

It is not clear what prompted the change.

Authorities have sifted through more than 1,000 tips related to the case. But it's unclear whether they have shed any light on an investigation that has drawn state and federal agents and garnered national attention.

In June, police upped the ante in their search for a culprit.

The reward for information leading to an arrest -- once topping out at $5,000 -- was raised five-fold, making it the largest offered in Suffolk County history. It was an apparent bid to fill out a case that some fear has gone cold.

"We're hoping the increased reward money will encourage somebody to come forward by calling the police in respect to the families and to (the) victims," Lt. Robert Donohue said at the time.

At least 10 sets of human remains have been found in Nassau and Suffolk counties since December. But the woman whose disappearance triggered the searches, 23-year-old Shannan Gilbert, remains missing. The New Jersey woman was last seen in May 2010 at a private party at a home in Long Island's Oak Beach community.

The first four bodies have since been identified. They, like Gilbert, had advertised for prostitution services on websites such as Craigslist.

Their remains were found among bushes along a quarter-mile strip of beachfront property, according to police. More human remains were found on March 29 and April 4.

Suffolk County District Attorney Thomas Spota said in May that the newly found remains were not believed to be connected to the first four victims. In September, authorities released composite sketches of what two unidentified victims might have looked like.

Authorities at the time said the evidence suggested two other killers dumped bodies along Ocean Parkway in Gilgo Beach, about 40 miles east of New York City.

"This investigation is not an episode of 'CSI' or 'Criminal Minds' that is going to be solved in a one-hour period," Spota said of the serial killer probe. "Most likely, it ... is going to take a very long period of time to complete."

Spota was not immediately available for comment Wednesday regarding police statements that the killings are now thought to be the work of a single killer.


Source

Frank discusses coming out as gay, going out as congressman

Washington (CNN) -- Barney Frank wasn't the first member of Congress to publicly reveal he was gay, but he was the first to do so voluntarily, he told reporters Tuesday in talking about his decision to retire.

Still, Frank said, he didn't come out about his sexuality until he was 47.

"So I was not the daring young man on the flying trapeze, but it worked out better than I thought," he said.

A prominent 16-term liberal Democrat from Massachusetts and archenemy of political conservatives nationwide, Frank announced Monday that he does not intend to seek re-election in 2012.

Now 71, Frank said Tuesday his decision was prompted in part by changes made to the boundaries of his U.S. House district.

As part of Massachusetts' recently concluded redistricting process, Frank's 4th Congressional District will lose the heavily Democratic blue-collar port city of New Bedford while gaining several smaller, more conservative towns to bring in more than 300,000 new constituents.

"I decided many years ago I will not be here when I'm 75," Frank said, saying that meant the 2012 election would have been his last.

"Everybody has a last term, and if you're talking about people that you've substantially represented, then that's not an obstacle," he said. "But then I would then be required to go to 325,000 people, some of whom I've never represented, and areas I've never been involved in, and say to them, look, here's the deal -- why don't you elect me and for the next two years I will be there to receive your problems and, by the way, by the end of 2014, I'm going to dump them."

President Barack Obama issued a statement praising Frank's public service, calling the congressman a "fierce advocate for the people of Massachusetts and Americans everywhere who needed a voice."

While Massachusetts' entire House delegation is Democratic, local Republicans insist Frank's retirement will put the reconfigured district in play.

"It is clear that Congressman Frank was not looking forward to another hard-fought campaign after losing his gerrymandered district and spending nearly every penny he had in 2010," Massachusetts Republican Party Executive Director Nate Little said in a written statement.

"Republicans were already gearing up for a strong race and Frank's sudden retirement injects added optimism and excitement into the election."

Frank, first elected to the U.S. House of Representatives in 1980, is the top Democrat on the powerful House Financial Services Committee. The controversial 2010 Dodd-Frank measure, designed to rein in Wall Street excesses after the 2008 financial collapse, passed the House without any GOP support.

Frank made headlines earlier in his career by becoming one of the first openly gay members of Congress. He was formally reprimanded by the House in 1990 for allegations of political impropriety relating to his association with a male prostitute.

Frank's current district -- which extends from the affluent, liberal Boston suburbs of Newton and Brookline to the cities of New Bedford and Fall River -- is considered safe Democratic political terrain. Frank did, however, receive an unusually strong challenge from Republican Sean Bielat in 2010.

Frank ultimately defeated Bielat, 54% to 43%.


Source

Tuesday, November 29, 2011

Reagan attacker seeks freedom

Washington (CNN) -- On the day he shot President Ronald Reagan, 25-year-old John Hinckley Jr. left in his hotel room a letter addressed to young actress Jodie Foster, with whom he was infatuated. The letter began:

"Dear Jodie. There is a definite possibility I will be killed in my attempt to get Reagan."

See letters Hinckley sent to Foster

But on March 30, 1981, Hinckley survived. His gun empty after he fired six shots at the president in less than two seconds, Hinckley was tackled by police and Secret Service agents. He was rushed away and all but disappeared into custody for the past three decades.

On Wednesday, a federal judge will begin a week and half of hearings on whether Hinckley eventually should be released from the mental hospital where he has been a patient since his 1982 trial ended in a jury verdict of not guilty by reason of insanity.

Doctors at St. Elizabeth Hospital, a federal mental facility in Washington, have petitioned the court for approval to grant Hinckley convalescent leave if all goes well in series of extended visits to his mother's home.

Hinckley is now 56, his hair turning gray. In the last court hearing two years ago, U.S. District Judge Paul Friedman acknowledged hospital doctors' testimony that his mental problems were in remission.

The court has steadily granted Hinckley greater freedoms over the years.

The government's response for the hearing describes Hinckley as "a man capable of great violence" and argues that there are still concerns "that this violence may be repeated."

His mother, JoAnn Hinckley, a widow who is now 85 but in good health, lives in a gated resort development near the James River in historic Williamsburg, Virginia. Hinckley has been allowed several visits in recent years.

A next-door neighbor, signing as T. Richardson, wrote a month ago in a letter to the editor of the local newspaper, The Virginia Gazette, that upon moving in during the 1980s, Mrs. Hinckley phoned to say that "They would never bring John to Williamsburg."

Yet, the letter writer said, Hinckley had been allowed to roam the streets alone on long walks during those recent visits. Hinckley's proposed release, the writer concluded, "is not terribly reassuring to me living next door."

Much of the eight-day hearing will involve contrasting testimony from psychiatrists on either side, as did Hinckley's trial. Hinckley did not testify then, and whether he will do so this time remains in dispute.

The U.S. attorney's office has told the judge that if Hinckley does take the stand at the hearing, it wants the right to question him. Hinckley's lawyer, Barry S. Levine, replied that Hinckley will testify only if the judge does not allow any cross-examination.

The hospital motion for Hinckley's eventual release was filed under seal, unavailable to the public. However, in answering that, the government said the motion proposes a series of eight new visits of 17 to 24 days each to Hinckley's mother's home.

After that, the government said, the hospital wants "the sole discretion to place Hinckley on convalescent leave" and to do so "without any further review by this court."

No immediate decision is expected during the court hearing. In the past, the judge has taken some time before issuing a written ruling.

Hinckley came within an inch of killing Reagan: That's how close the last bullet came to penetrating the president's heart. The president lost half his blood supply as his left lung was flooded. Had the Secret Service not gotten Reagan to a hospital within minutes, doctors said, he might well have died.

Watch agent show where bullets struck the presidential limo

Hinckley wounded a police officer, a Secret Service agent and Press Secretary James Brady before his sixth and final shot ricocheted off the presidential limousine and struck Reagan beneath his left armpit as agents shoved him into the back seat of the vehicle.

Brady, shot in the head, survived against the odds but was so severely injured he was never able to return to his White House duties.

Hinckley had left numerous letters and notes for Foster, a freshman at Yale University, after seeing her in a breakthrough role as a child prostitute in the movie "Taxi Driver."

One of his last notes, shoved under her dorm door a few weeks before he shot Reagan, echoed a line from that movie: "Just wait. I'll rescue you soon."

The day after the shooting, Foster said she did not even know who Hinckley was.


Source

Tobey Maguire settles poker lawsuit

Los Angeles (CNN) -- Tobey Maguire has settled a lawsuit that sought repayment of hundreds of thousands of dollars the "Spider-Man" actor allegedly won in secret high-stakes poker games at Beverly Hills luxury hotels, according to court documents filed last week.

A series of federal suits, including the one against Maguire, said the poker winnings were paid with funds stolen from investors who had been lured into an illegal Ponzi scheme.

Maguire agreed to pay $80,000 to the estate of Bradley Ruderman, 48, who is serving a 10-year federal prison sentence for tax, wire and investor advice fraud convictions. The judge will hold a hearing on December 21 to decide if he will approve the Maguire settlement.

The lawsuit against Maguire, filed in March, alleged that the actor won $311,000 from Ruderman in 2007 and 2008.

Actors Nick Cassavetes and Gabe Kaplan, along with professional poker player Dan Bilzerian, two nightclub owners and a Los Angeles lawyer, are among at least 10 other people sued by a bankruptcy trustee.

Most of the celebrity defendants have not publicly commented on the case, but Kaplan, the star of the 1970s TV sitcom "Welcome Back, Kotter," reached his own settlement in August.

Kaplan, whose poker skills are well known because of his frequent television appearances at professional gambling events, agreed to repay $27,000 of the $62,000 the trustee contended he was paid in gambling proceeds from the Ponzi scheme funds.

Lawsuits: Celebrities play high-stakes poker in hotels

None of the defendants in the civil lawsuits faced criminal charges, but the bankruptcy trustee for Ruderman's estate said they had to return at least $1.5 million of their alleged gambling winnings.

What each defendant allegedly has in common is that they beat Bradley Ruderman in "regularly held, high stakes and clandestine 'Texas Hold 'em' poker games" at hotels and homes in the Beverly Hills area.

Ruderman induced at least 22 victim-investors to give him approximately $44.3 million that was never invested, one lawsuit said. Ruderman, a Beverly Hills resident, used the money, in part, to cover his gambling losses, it said.

The suits say that the poker games were "exclusive events, by invitation only, and that there was a regular roster of players consisting of wealthy celebrities, entrepreneurs, attorneys and businessmen."

The games were also unlicensed and illegal, so "the player had no legally enforceable contractual right to receive payment," the suits said.

Bilzerian, a top professional poker player known as the "Blitz," beat Ruderman for $100,000, which the bankruptcy trustee wants back, court documents said.

There is no criminal investigation of the alleged gambling, a spokeswoman for the Los Angeles County district attorney said in June when the lawsuits were made public. "Gambling is illegal, but it's a misdemeanor," Sandi Gibbons said.

The court documents pull back the curtain a bit on what is mostly done behind closed doors by the wealthy and well-known in Beverly Hills.

The poker games were "held at luxury locations such as The Four Seasons Hotel in Los Angeles, California, the Beverly Hills Hotel in Beverly Hills, California, the Peninsula Hotel in Beverly Hills, California, and occasionally at private residences of the poker players," the lawsuits said.

None of the hotels would comment on the allegations when contacted by CNN.

The games were "arranged by Molly Bloom, initially (as) an assistant to one of the poker players and then as a stand-alone business," court documents said. Bloom arranged "food, alcohol and massages" for the players and "arranged for the settlement of gambling winnings and losses between and among the players."

Bloom, who is being sued by the trustee for $473,200, denied in a response to the court that she was involved in organized illegal gambling. She acknowledged, however, that she "performed services and received value from Ruderman in good faith in exchange for her services."

Bloom passed "a large percentage" of the money sent to her by Ruderman to "third parties," her response said.

Ruderman's Ponzi scheme spanned seven years, starting in 2002 and ending with an FBI investigation in 2009, according to court papers.

"To obtain investments in the fund, Ruderman misrepresented to potential investors that Lowell Milken (chairman of the Milken Family Foundation and younger brother of Michael Milken) and Larry Ellison (the CEO of Oracle Corporation) were investors in the funds," federal court documents said.

Ruderman provided false accounting statements claiming his hedge fund investments earned between 15% and 61% each year and were valued at more than $800 million, the documents said. "In reality, the funds lost millions of dollars over the years and had a net liquidation value of less than $650,000 at the end of 2008," documents said.

It was a year after the funds collapse in April 2009, and months after Ruderman pleaded guilty in January 2010, that the bankruptcy trustee discovered the large transfers of cash from the fund to pay his gambling debts, the lawsuits said.


Source

Monday, November 28, 2011

Passenger stands throughout 7-hour flight

(CNN) -- Air travelers usually are prepared for the occasional hectic and overcrowded flight. But all are hoping they'll at least be able to sit down.

Arthur Berkowitz, 57, stood for the length of his US Airways flight in July after a fellow passenger occupied half of his seat. The non-stop flight from Anchorage to Philadelphia lasted seven hours.

"I didn't fly from Alaska to Philadelphia," Berkowitz said on consumer advocate Christopher Elliott's blog, Elliott.org. "I stood."

CNN recently reported on the extensive flight delays that travelers experienced during last month's snowstorm. JetBlue has begun reimbursing those customers for their eight-hour tarmac waits, and Berkowitz feels US Airways should do more to address the issue of his extended standing.

He initially had an empty seat next to him on Flight 901, but a late passenger sat there and took more space than he paid for.

"His size required both armrests to be raised up and allowed for his body to cover half of my seat," Berkowitz said.

The man was very polite and expressed regret over the situation, said Berkowitz, who notified the flight crew that he was unable to fasten his seat belt and asked if he could move to business class.

As the flight was filled to capacity, and as passengers are not permitted to sit in the flight attendants' jump seats, Berkowitz found himself strolling through the cabin for hours. Flight attendants apparently asked him to remain seated and fasten his seat belt, but he said the co-passenger was seated on his seat belt fastener, making this impossible.

That meant that, though he did manage to wedge himself into his seat for the takeoff and landing, he was unable to comply with the requirement that his seat belt be fastened at those times.

Federal Aviation Administration spokeswoman Kathleen Bergen told CNN that it also is against regulations to stand for an entire flight and that passengers are always encouraged to remain in their seats.

US Airways issued a statement saying it recognizes the inconvenience of the situation. "We all understand how sensitive a subject passengers of size can present, but we should never compromise safety and we need every passenger to help us ensure that every flight operates safely by complying with those crew members' instructions."

When the plane landed, Berkowitz said, he immediately contacted a US Airways agent who referred him to the company headquarters in Phoenix. Though the airline offered him a $200 voucher for his trouble, Berkowitz said, he did not accept it.

After months of unsuccessful communication, he said, he went to the FAA, which notified him that US Airways considered the matter closed. CNN could not independently confirm the details.

Although he is disappointed at the amount he was offered, Berkowitz said, his motivation for speaking out now is not financial.

"My reason for bringing this up is strictly and solely for the airline to look at their safety procedures," he told CNN.

Although US Airways expresses regret over the situation, the airline does feel the matter has been resolved and that Berkowitz's concerns have been noted.

"We have attempted to address this customer's service concerns, but offering increasing amounts of compensation based on a threat of a safety violation isn't really fair -- especially when the passenger himself said he didn't follow the crew members' instructions and fasten his seat belt," US Airways said in a written statement. "If there was a safety issue -- we will address that professionally and with the proper attention toward preventing it from happening again. We have already provided feedback on the service issues with the team involved, and thank Mr. Berkowitz for making his concerns known."

Some airlines have policies in place to handle issues with "passengers or customers of size." According to its website, Southwest Airlines requires customers who do not fit in their seats (which are 17 inches wide) to purchase an extra seat before boarding, but will refund them for the seat if the flight is not full. AirTran, which is being purchased by Southwest, has the same policy. Continental and United require passengers to be able to lower their armrests and fasten their seat belt with no more than one seat belt extender. Delta requires that passengers lower their armrests and fasten their seat belt with no extenders. Passengers may be required to purchase an additional seat if they fall outside of this protocol.

US Airways has a policy that allows for extenders, or booking the passenger on a later flight. If neither is possible, the passenger may be charged for an additional seat. Berkowitz's grievances extend to the gate crew members who didn't do more to follow this policy.


Source

Passenger stands throughout 7-hour flight

(CNN) -- Air travelers usually are prepared for the occasional hectic and overcrowded flight. But all are hoping they'll at least be able to sit down.

Arthur Berkowitz, 57, stood for the length of his US Airways flight in July after a fellow passenger occupied half of his seat. The non-stop flight from Anchorage to Philadelphia lasted seven hours.

"I didn't fly from Alaska to Philadelphia," Berkowitz said on consumer advocate Christopher Elliott's blog, Elliott.org. "I stood."

CNN recently reported on the extensive flight delays that travelers experienced during last month's snowstorm. JetBlue has begun reimbursing those customers for their eight-hour tarmac waits, and Berkowitz feels US Airways should do more to address the issue of his extended standing.

He initially had an empty seat next to him on Flight 901, but a late passenger sat there and took more space than he paid for.

"His size required both armrests to be raised up and allowed for his body to cover half of my seat," Berkowitz said.

The man was very polite and expressed regret over the situation, said Berkowitz, who notified the flight crew that he was unable to fasten his seat belt and asked if he could move to business class.

As the flight was filled to capacity, and as passengers are not permitted to sit in the flight attendants' jump seats, Berkowitz found himself strolling through the cabin for hours. Flight attendants apparently asked him to remain seated and fasten his seat belt, but he said the co-passenger was seated on his seat belt fastener, making this impossible.

That meant that, though he did manage to wedge himself into his seat for the takeoff and landing, he was unable to comply with the requirement that his seat belt be fastened at those times.

Federal Aviation Administration spokeswoman Kathleen Bergen told CNN that it also is against regulations to stand for an entire flight and that passengers are always encouraged to remain in their seats.

US Airways issued a statement saying it recognizes the inconvenience of the situation. "We all understand how sensitive a subject passengers of size can present, but we should never compromise safety and we need every passenger to help us ensure that every flight operates safely by complying with those crew members' instructions."

When the plane landed, Berkowitz said, he immediately contacted a US Airways agent who referred him to the company headquarters in Phoenix. Though the airline offered him a $200 voucher for his trouble, Berkowitz said, he did not accept it.

After months of unsuccessful communication, he said, he went to the FAA, which notified him that US Airways considered the matter closed. CNN could not independently confirm the details.

Although he is disappointed at the amount he was offered, Berkowitz said, his motivation for speaking out now is not financial.

"My reason for bringing this up is strictly and solely for the airline to look at their safety procedures," he told CNN.

Although US Airways expresses regret over the situation, the airline does feel the matter has been resolved and that Berkowitz's concerns have been noted.

"We have attempted to address this customer's service concerns, but offering increasing amounts of compensation based on a threat of a safety violation isn't really fair -- especially when the passenger himself said he didn't follow the crew members' instructions and fasten his seat belt," US Airways said in a written statement. "If there was a safety issue -- we will address that professionally and with the proper attention toward preventing it from happening again. We have already provided feedback on the service issues with the team involved, and thank Mr. Berkowitz for making his concerns known."

Some airlines have policies in place to handle issues with "passengers or customers of size." According to its website, Southwest Airlines requires customers who do not fit in their seats (which are 17 inches wide) to purchase an extra seat before boarding, but will refund them for the seat if the flight is not full. AirTran, which is being purchased by Southwest, has the same policy. Continental and United require passengers to be able to lower their armrests and fasten their seat belt with no more than one seat belt extender. Delta requires that passengers lower their armrests and fasten their seat belt with no extenders. Passengers may be required to purchase an additional seat if they fall outside of this protocol.

US Airways has a policy that allows for extenders, or booking the passenger on a later flight. If neither is possible, the passenger may be charged for an additional seat. Berkowitz's grievances extend to the gate crew members who didn't do more to follow this policy.


Source

Euro stocks rally as eurozone worries ease

Germany's Angela Merkel, France's Nicolas Sarkozy and Italy's Mario Monti are reportedly working on a new fiscal plan for the eurozone.

NEW YORK (CNNMoney) -- European markets soared Monday, as investors shrugged off fears of economic uncertainty in favor of a dubious report that Italy could be receiving a massive bailout from the International Monetary Fund.

The IMF denied the report but that didn't stop investors from going on a buying spree anyway.

"There's enough bad news out there but it seems that at this time the IMF story beats everything else," said Christian Schulz, senior economist at Berenberg in London.

Early Monday, Italian newspaper La Stampa reported that Italy could be receiving a €600 billion cash injection from the IMF. An IMF spokesperson denied the report, telling CNN, "There are no discussions with the Italian authorities on a program for IMF financing."

The news was the initial spark behind a broad stock rally that drove up London's FTSE (UKX) by more than 2%, the DAX (DAX) in Frankfurt by more than 3% and the CAC 40 (CAC40) in Paris by nearly 4%.

Adding further fuel to that rally were reports that eurozone leaders are working on a new fiscal plan for the 17 member states. While that's not exactly breaking news, it injected some renewed optimism that officials in Europe were moving in the right direction.

More details about the plan are expected to be revealed at a Dec. 9 European Commission summit, which is also the last scheduled meeting of EU leaders for 2011.

Financial shares around the globe surged. Shares of Credit Agricole jumped more than 5%, Societe Generale rose more than 3% and BNP Paribas gained about 2%. Deutsche Bank (DB) shares surged nearly 10% in U.S. trading, and were up more than 7% on the DAX.

The rising tide spread across the Atlantic to lift Wall Street banks. JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) shares rose about 4.5%, while Goldman Sachs (GS, Fortune 500) was up 3% and Citibank (C, Fortune 500) was up nearly 7%.

Schulz said the Italy-IMF report was also responsible for the spread between Italian and German 10-year bond yields narrowing -- a sign that crisis fears have eased.

Italian bond yields remained just above 7%, while the yield on the 10-year German bund rose to 2.3%. Last week borrowing costs across Europe skyrocketed following a string of weak auctions.

German and Italian bonds are closely watched since those two countries are among the largest in Europe.

German debt is considered to be the most stable in the eurozone, despite a weak auction last week. Italian bonds have repeatedly climbed above 7%, a level that makes investors nervous, since that flashed the first warning signs for Ireland, Greece and Portugal, which all eventually required bailouts.

Italy, France and Belgium all held auctions Monday, and what a difference a week makes.

Italy's auctions for 6-month, 24-month and 15-year bonds garnered decent demand, though, as expected, the yields were much higher than last month's auctions.

The Belgian government auctioned off €2 billion worth of 7-, 10-, 24- and 30-year bonds. The auctions were well received, helping ease the yield on the Belgian 10-year bond to 5.6% from 5.86% on Friday.

Friday's spike came as credit rating agency Standard & Poor's downgraded Belgium, citing renewed risks to the country's financial sector.

But over the weekend, Belgian leaders reached agreement on a new fiscal budget, quelling some of those fears and paving the way for the formation of a new government.

French auctions of 3-month, 6-month and one-year bills were equally well subscribed Monday, helping ease yields on French 10-year bonds to 3.59%.

There's still a long, tough road ahead.

Early Monday, the Organization for Economic Cooperation and Development called for "urgent action" to boost the global economic slump.

"Concerns about sovereign debt sustainability are becoming increasingly widespread," said the OECD in its latest economic outlook. "If not addressed, recent contagion to countries thought to have relatively solid public finances could massively escalate economic disruption."

And Moody's rang its own warning bell. "The continued rapid escalation of the euro area sovereign and banking credit crisis is threatening the credit standing of all European sovereigns."

To round out the trifecta of worry, Deutsche Bank analysts slashed their 2012 GDP expectations for the eurozone to -0.5% from +0.4%.

"The failure of the EU authorities to find a solution to the sovereign debt crisis means the downside risks are materializing," said Deutsche Bank fixed income researchers Mark Wall and Gilles Moec. To top of page

Today's featured rates:


Source

Sunday, November 27, 2011

George Michael cancels shows because of illness

London (CNN) -- Singer George Michael has pneumonia and has been forced to cancel at least four shows, his website says.

"He is currently receiving treatment," the brief statement says.

His representative Connie Filippello told CNN the singer was "on the mend" and "receiving medication."

She would not disclose information about where or when Michael had contracted the illness.

Michael has postponed shows scheduled for this weekend in Cardiff, Wales, after putting off shows earlier this week in Vienna, Austria, and Strasbourg, France.

He was also a no-show for a London concert scheduled for October 26. That concert is now scheduled for May 2, 2012, his website says.

He said at the time he had thrown his back out.


Source

'Bama dominates Auburn in Iron Bowl

AUBURN, Ala. (AP) -- Those Iron Bowl participants surely know all about coping with the national championship pressure piled onto the equally intense matter of in-state bragging rights.

It's Alabama's turn.

The Crimson Tide rolls into Saturday's visit to Auburn for a game that figures in the BCS title equation for the fourth straight year. It's almost as though Bear Bryant was calling the shots from above to set the stage for `Bama: Boise State, Stanford, Oklahoma State, Oklahoma and Oregon have all fallen the past two weeks to upgrade Bryant's former team from wishin' and hopin' to likely win-and-in status.

Of course, such talk leads to what Tide coach Nick Saban calls scoreboard watching. He preaches to keep the eyes forward not looking up or around, and said that philosophy applies off the field, as well - lest his team get distracted.

"We really don't want that," Saban told reporters after Saturday's 45-21 win over Georgia Southern. "I know that that's hard for you all to understand, because that's all you think about and that's all I get asked about. All I care about is how our team plays, because I have no control over any of that stuff. I've got one vote (in the coaches poll)."

This Iron Bowl in particular offers a cocktail of intrigue, even for a rivalry that has produced the past two national champions. For the third straight year, a Heisman Trophy hopeful is trying to state his case.

This time it's Alabama running back Trent Richardson.

In 2008, Alabama won the Iron Bowl and was ranked No. 1 before losing to No. 2 Florida in the national semifinals otherwise known as the SEC championship game.

The next year, the Tide went on to win it all, and Auburn coach Gene Chizik said this group compares favorably.

"This team, it may be the best out of all three," Chizik said. "When you sit there and watch them and you look at how physical they are, how sound they are ...

"This is not a good football team, this is a great football team we're playing. It's hard to compare any of the three, but I would say this is very, very similar in comparison to the first team we played back in 2009, if not a little better, in my opinion."

There's also fuel for `Bama after blowing a 24-0 lead and falling 28-27 to Cam Newton & Co.

And for Auburn. Alabama fan Harvey Updyke Jr. is awaiting felony trial after allegedly poisoning two oak trees at Auburn's Toomer's Corner.

The game's big enough without all that fodder.

"It's the biggest day of the year, if you live in Alabama," Auburn quarterback Clint Moseley said. "I mean, you have Christmas and everything, but this is the day that everybody - people who don't even like football watch this game. Auburn's going to be packed, probably, Wednesday. It's a huge game."

Richardson wants to prove Alabama's the best team in the state. The national pecking order will sort itself out.

"Just being an Alabama football player and playing against another (state of) Alabama football team, it's just going to be another time to go out there and show who's No. 1 and who's going to be the better Alabama team," Richardson said. "It just means a lot to us as a team."

Neither team dazzled in what amounted to Iron Bowl warmups against FCS teams. Auburn led Samford by just five points early in the fourth quarter before winning 35-16.

Alabama gave up a season high in points in a 45-21 win over Georgia Southern.

That came on the heels of Oklahoma State's loss to Iowa State the night before the game. Top-ranked LSU and No. 3 Arkansas meet on Iron Bowl eve, meaning once again the Tide can let things shake out a bit before taking the field.

Not that Saban will admit to caring.

"We're not worried about the national championship," he said. "We're worried about the next game. None of that matters if you don't take care of business and win the next game.

"If you don't do that, what happens? You don't have the opportunity."

AUBURN, Ala. (AP) -- Trent Richardson and No. 2 Alabama have convinced Nick Saban that they're worthy of competing for college football's top prize.

They'll have to wait a while before for the final decision is rendered.

Richardson rushed for a career-high 203 yards and AJ McCarron threw three first-half touchdown passes to lift Alabama to a 42-14 victory over rival Auburn on Saturday in what amounted to a statement game.

Let the lobbying begin. Saban said he thinks the Tide is one of the nation's best two teams, Richardson's the top player and `Bama deserves a second shot at LSU.

"This team lost one game in overtime to a very, very good team who's No. 1 right now," the Tide coach said. "And we lost in overtime. Everybody's got to make their choices and decisions about that.

"But I think we've got a great football team and a great bunch of young men who have done a wonderful job and played some really dominant football on both sides of the ball. I think they deserve an opportunity, the best opportunity that's out there for them."

The Tide (11-1, 7-1 Southeastern Conference) has a week before finding out if its resume is good enough to secure a shot at a second national title in three years. No. 5 Oklahoma State, fourth in the BCS standings, and No. 1 LSU have big games remaining against No. 12 Oklahoma and No. 13 Georgia, respectively.

"That's out of our hands but I think we've proven we should be there without a doubt," said Alabama tight end Brad Smelley, who had six catches for 86 yards and a touchdown.

Richardson ran 27 times and caught a 5-yard touchdown pass in his final chance to impress Heisman voters. He had runs of 35 and 57 yards to set up second-half scores.

"To me, Trent's the best football player in the country," Saban said.

The thousands of `Bama faithful in the stands seemed to agree.

Fans began chanting first "Heisman" and then "LSU" in the fourth, with a sizable contingent wearing crimson and white remaining in the stands afterward clamoring for a rematch. By then, there wasn't all that much orange and blue left.

The Tide fell to LSU 9-6 in an overtime game that `Bama fans at least feel didn't settle the matter of which one is better.

Richardson said he'd already gotten a call from LSU star Russell Shepard saying "See you in New Orleans" for the title game.

Even if the national picture remains fuzzy, it's pretty clear which is the best team in the state.

In the end, the win might have given the Tide enough style points to hold onto No. 2 in the BCS rankings whatever happens next week.

"We knew coming in that, hey, if you want to be in the national championship again - we deserve to be in it - we had to take care of business," McCarron said. "And that's what we did."

The Tide dominated statistically but didn't put Auburn (7-5, 4-4) away until Dee Milliner's 35-yard interception return early in the fourth quarter. Alabama entered the quarter with a 309-44 advantage in total yards but also gave up touchdowns on a fumble recovery and a kick return.

McCarron completed 18 of 23 passes for 184 yards but only attempted five second-half passes. Richardson handled the rest. He gained 142 yards on 13 carries in the second half against a defense ranked 98th nationally against the run.

"Any time you've got No. 3 in your backfield, a team's going to challenge you," McCarron said.

The result was more than enough to end Auburn's streak of 14 straight wins at Jordan-Hare Stadium.

"I've got a locker room full of guys right now and coaches that are hurting and a lot of fans that are hurting as well," Tigers coach Gene Chizik said. "So this is a tough day.

"We wanted to keep the game close in the fourth quarter and have a chance to win the game. We got to the fourth quarter and felt like we were somewhere in that ballpark, and the fourth quarter got away from us. We kind of self-destructed."

The Tigers' biggest offensive weapons were mostly nonfactors. Tailback Mike Dyer, the SEC's No. 2 rusher, had three carries at the half and finished with 13 for 48 yards.

Clint Moseley completed 11 of 18 passes for a paltry 62 yards and the pick-6. Freshman backup Kiehl Frazier played much of the game but didn't complete either of his two pass attempts.

"It was the best defense we've played against this year," Moseley said. "I feel pretty confident saying that."

The Tigers did threaten an offensive touchdown in the fourth but stalled on downs after getting it to the 5. Then Richardson scampered down the left sideline and sprinted to the other side of the field for the 57-yarder.

Auburn managed to hang around for three quarters. Then Milliner intercepted a badly overthrown pass by Moseley, who has now had three passes returned for TDs in Auburn's three biggest games against LSU, Georgia and Bama.

All those were blowouts but Chizik said his team wasn't having flashbacks.

"It wasn't here we go again," he said. "It was just let's keep fighting and let's keep playing and let's get this thing in the fourth quarter and keep it close enough where we could win it."

The two-point play made it 35-14, and Auburn couldn't come close to a second straight huge Iron Bowl comeback.

Like last season, Alabama led 24-7 at the half. This time the Tigers didn't have Cam Newton pulling the trigger on a comeback en route to a Heisman and a national title.

Auburn struck instantly in the second half. Onterio McCalebb returned the opening kick 83 yards for a touchdown, the Tigers' first score on a kick return in Iron Bowl history.

The Tigers then held Alabama to a field goal and converted a fourth-and-1 near midfield but couldn't sustain the momentum change.

Auburn followed it up with a fumbled pitch for a 10-yard loss, a penalty and a lateral to Frazier, who badly overthrew a receiver deep.

Alabama outgained the Tigers 397-140 and held Auburn to 3 of 15 on third downs.

"Our goal today was to play our best football game," Saban said. "We went out and played the best we could play. I'm satisfied with what our players did from that standpoint."


Source