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Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Wednesday, June 30, 2010

An explosion at the University of Missouri-Columbia (Mizzou) on Monday afternoon left four people injured, authorities say.

The explosion occurred in a science laboratory in Schweitzer Hall around 2:20 p.m. CDT (1920 UTC) Monday. The source of the explosion was first thought to have been a 2,000-pound (907.2-kilogramme) hydrogen tank, but fire officials later said that this was not the case. The cause of the incident is currently under investigation by the Columbia Fire Department.

The Columbia Fire Department arrived at Schweitzer Hall after a report of a structure fire, but found that most of the fire had already been extinguished by the building’s fire sprinkler system. The remaining flames were put out by firefighters, one of whom said it looked as if “a bomb went off in the lab”.

Of the four hurt in the blast, one was a research scientist, one a graduate student, and the other two postdoctoral fellows. Three were treated for mild injuries and released from University Hospital, while the fourth was in good condition after being taken to the hospital’s burn unit for life-threatening injuries. A school spokesperson said that the university was not allowed to release the names of the victims.

Authorities initially believed that a large container of hydrogen gas had exploded, but investigators later said that the tank was intact. Fire officials also retracted an earlier statement that said the incident had been a result of human error. In a Monday night news release, the fire department said that lab workers had turned on the hydrogen but did not recognize warning signs indicating a dangerously high level of hydrogen gas in the lab, so they left the gas supply running. The report said the explosion occurred after the gas reached a source of ignition. However, the department said Tuesday that the investigation into the explosion is still ongoing and that they were not certain human error was the cause.

The investigation should determine the cost of repairs for the building, as well as whether the school should implement new procedures to avoid similar incidents in the future. The lab where the explosion took place will be totally rebuilt.

Schweitzer Hall houses Mizzou’s biochemistry department, which is part of the medical and agricultural programs. The building’s single classroom is located in the basement and was not in use at the time. The explosion happened on a third-story lab assigned to Judy Wall, a university professor, who was in her office across from the lab during the incident and referred inquiries to the news bureau. Other labs in the building were not disturbed, and Schweitzer Hall was established to be structurally sound, although nearly twenty windows had been shattered from the blast. The building reopened Tuesday for researchers to continue working.

Thursday, May 26, 2011

On Friday evening, an explosion in Chengdu, China caused partial shutdown of a facility operated by Foxconn, one of the world’s biggest electronics manufacturers and a major supplier to companies like Hewlett-Packard, Dell, Sony, Apple, Motorola and Nokia. Initial investigations now suggest the explosion was caused by poor ventilation, which lead to high concentrations of combustible dust.

The blast happened at 7:18PM, around the time workers change shifts. A fire followed. Emergency services had control by 7:30PM. At least three people were killed, at least fifteen injured. Foxconn halted production to investigate, saying “All operations at the affected workshop remain suspended and production at all other workshops that carry out similar processing functions have also been halted pending the results of the investigation. All other production operations in our facilities in China continue operating normally.”

On Monday, city officials gave the cause as combustible dust in the air at a polishing workshop. Hong Kong-based labor rights group Students & Scholars Against Corporate Misbehavior said they reported aluminium dust problems in March when they reviewed working conditions at Foxconn. After the explosion, they commented that workers were complaining “the ventilation of the department is poor. Workers polish the iPad cases to make them shiny. In the process, there is lots of aluminum (aluminium) dust floating in the air. Workers always breathe in aluminum dust even though they put on masks. When workers take off their cotton gloves, their hands are covered with aluminum dust.”

Foxconn responded by saying the group was trying to “capitalize on the tragic accident” and misrepresented “Foxconn’s commitment to the health and safety of our employees.”

Foxconn is responsible for making iPads and iPhones for Apple. Research group IHS iSuppli said the explosion may cause loss of production of 500,000 iPads during this quarter of the year. They said there is a larger facility in Shenzhen, but it cannot cope with re-compensating the possible loss.

Sunday, February 19, 2006

The United States Secretary of Defense Donald Rumsfeld said that U.S. public diplomacy efforts need to do more in the media to communicate a message friendly to democracy.

“We’ll need to do all we can to attract supporters to our efforts and to correct the lies that are being told, which so damage our country, and which are repeated and repeated and repeated,” Rumsfeld said in an address to the Council on Foreign Relations in New York city on Friday. He said that insurgent groups have learned to use media and its new satellite and Internet technologies, and are working 24/7, to manipulate public opinion.

Rumsfeld called for the need to implement a “strategic communications framework” to present news information in Afghanistan and Iran. He warned, ” …the [news] vacuum will be filled by the enemy and by news informers that most assuredly will not paint an accurate picture of what is actually taking place.” He said there was a need for communications training of military public affairs officials. The Department of Defense would begin with an emphasis on using out-sourced media expertise found in the private-sector, as was done with the controversial use of Lincoln Group who placed pro-democracy stories in Iraqi media in a business arrangement with the U.S. military.

Rumsfeld was critical of the U.S. media for its sharp response to that program at his address in New York, which he said had the effect of stopping that military effort. In an appearance on the The Charlie Rose Show, a televised program taped earlier and then aired by PBS last Friday, the same day as his New York address, Rumsfeld said “When we heard about it, we said, ‘Gee, that’s not what we ought to be doing.’ … They stopped doing that.” But in a Los Angeles Times report, a Lincoln Group insider and a U.S. commander in Iraq, General George W. Casey, said the program was still in existence.

The White House has signaled a shift towards the use of media in the “War against Terror”. The U.S. Secretary of State Condoleezza Rice said in Senate testimony on Wednesday last week that $10 million is already appropriated to support political dissidents, labor union leaders and human rights activists in Iran. The Bush administration will be asking for an additional $75 million in funding for the 2006 fiscal year to expand the program.

Wednesday, April 22, 2015

In New South Wales (NSW), Australia, two men and a woman died yesterday after search-and-rescue operations failed to rescue them from floods in Dungog, roughly 200 km (125 miles) north of the state’s capital, Sydney.

Storms hit communites along the east coast of Australia including Newcastle, the Hunter Region, the Central Coast, the Illawarra region, and Sydney. The Bureau of Meteorology reported a deep low-pressure system has caused heavy rainfall and strong winds which reached 130kph (80mph). Winds were predicted to ease today.

There have been blackouts throughout the region and severe flooding which has caused roads, bridges and houses to be washed away. More than 500 volunteers were working with the State Emergency Service to assist with operations and protect individuals, with firefighters from the Rural Fire Service and Fire Rescue according to State Emergency Service deputy commissioner Steven Pearce. They issued a warning that residents in Newcastle and surrounding areas might experience flash flooding.

The Insurance Council of Australia reported already during the day yesterday more than 5500 policyholder claims due to the storms. New South Wales premier Mike Baird said people should leave work early and arrive home before dark, as storms were predicted to intensify.

NSW transport authorities said 300 sets of traffic lights in Syndey were out and motorists should be cautious or preferably not drive. Authorities advised residents to stay away from flood-waters and from areas exposed to surf, where heavy surf can lead to coastal damage and erosion.

The New South Wales Emergency Services Minister David Elliot said it was a “once-in-a-decade storm”.

Tuesday, April 3, 2018

Effective Tuesday, Siberian Governor Aman Tuleyev resigned his office of 20 years after Kemerovo’s Winter Cherry Mall caught fire killing 64 individuals on March 25, 2018. The newly reelected Russian President Vladimir Putin accepted Tuleyev’s resignation Sunday in Moscow approximately 1,600 miles from Kemerovo.

The investigation is lead by the Investigative Committee of the Russian Federation which arrested seven individuals in connection with the fire including the woman responsible for the building inspections. Of the 64 dead were 41 children trapped in a movie theater with the exit doors locked. An additional 79 individuals were injured escaping the fast moving blaze. In compensation for their loss, families of the deceased received one-million rubles ($17,500 USD) issued by Tuleyev before his resignation.

According to Russian state run television (TASS), the security firm ‘Protection Center’ exceeded their legal abilities by undertaking fire control. The cause is still unknown with investigators looking at faulty wiring, children playing with lighters, and arson. Winter Cherry Mall is 248,000 sq ft (23,000 sq m) with a theater, trampoline area, bowling alley, and a 200 animal petting zoo all of which died in the fire.

Since the fire, demonstrations have occurred throughout Kemerovo with a population of approximately a half million citing widespread corruption on the local and national levels. Kemerovo is a coal city and acts as the administrative center for the Kemerovo Oblast. TASS has been suppressing political corruption and the demonstrations replacing them with stories about the heroics. Stories include the firefighters battling the blaze, cadet Dmitry Polukhin saving three children, and a local high school teacher Tatyana Darsaliya saving her daughters before re-entering to save more losing her life in the process.

The corruption allegations centered around the seven individuals arrested and the Russian Ministry of Emergency Situations. TASS nor international media reported Tuleyev was a focus of corruption demonstrations.

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Tuesday, March 29, 2005

Shortages of beef in Japan prompted consumers to submit a petition with about 1.19 million signatures to Japan’s Agriculture Minister Yoshinobu Shimamura on Tuesday. The petition was presented by a group led by Takashi Sakamoto, president of a chain of used book outlets.

Japan has banned imports of U.S. beef for 15 months, citing concerns about mad cow disease after authorities discovered a cow with the disease in the United States.

Japanese health and agriculture ministers said they would ask their country’s food safety commission to approve lifting the ban.

“We will ask the commission to decide if resuming U.S. beef imports is safe based on safety measures taken in the U.S.,” said health minister Makoto Kanie.

Analyst Kazuhiko Saito says this may cause a delay “until later this year”, telling Bloomberg, “The Commission has been very slow on reviewing domestic mad cow tests and will also be slow to review the U.S. beef import plans.”

U.S. lawmakers and diplomats have pressed Japan to re-open their market, and some Washington lawmakers have even threatened Japan with sanctions should beef imports not resume soon. US Secretary of State Condoleezza Rice brought up the matter earlier this month during her visit to Japan.

So far, the Japan Food Safety Commission has only taken the step of loosening inspection rules, such that mad cow testing is not required for all imported live cattle.

Japan has dealt with 14 cases of mad cow disease of their own.

Thursday, September 7, 2006

British Prime Minister Tony Blair bowed to pressure from within his own Labour Party today by publicly confirming he will resign within a year. “I would have preferred to do this in my own way,” said Blair who added “the next party conference in the next couple of weeks will be my last party conference as party leader.” However, he refused to name the specific date of his resignation, “The precise timetable has to be left to me and has to be done in the proper way,” Blair insisted. “I’m not going to set a precise date now. I don’t think that’s right. I will do that at a future date, and I will do that in the interests of the country.”

He apologised for the party’s conduct this week saying it “has not been our finest hour, to be frank”.

Demands that Blair announce his resignation plans have mounted over the past few months particularly over concerns about the Prime Minister’s strong support for Israel during the Israel-Hezbollah war, the perception that he is a loyal follower of United States President George W. Bush and a precipitous slide in Labor’s support in public opinion polls where the party is now at a 16 year low.

Yesterday, eight Labour MPs resigned from their junior government positions over Blair’s refusal to announce his retirement. They had previously been considered staunch Blairites. The British press reports of a shouting match yesterday between Blair and his likeliest successor, Chancellor of the Exchequer Gordon Brown over the handover date.

“I want to make it absolutely clear today that when I met the prime minister yesterday, I said to him, as I have said on many occasions to him and I repeat today, that it is for him to make the decision,” Brown said.

“I said also to him, and I make clear again today, that I will support him in the decisions he makes, that this cannot and should not be about private arrangements but what is in the best interests of our party and, most of all, the best interests of our country.”

Despite Blair’s announcement, several MPs expressed their dissatisfaction at his refusal to name a precise date and demanded that he leave sooner rather than later.

Manchester Blakeley MP Graham Stringer told the BBC if Blair “thought it was going to take the politics out of the next nine months that simply is not going to happen”.

MP Doug Henderson said “It doesn’t seem to me that the public knows any more about the PM’s retirement plans. People keep saying to me that the Labour party must have a clear direction forward with clear priorities and a new leader before the May 2007 (regional) elections.”

The eight MPs who resigned as junior ministers or parliamentary secretaries, Wednesday, expressed a concern in their resignation letter that Blair needed to go soon in order not to harm the party’s prospects in next May’s elections to the Scottish parliament, Welsh assembly and English local authorities.

Blair became Prime Minister in 1997 when Labour defeated the Conservative government of John Major. He has led the party to three majority victories and promised before the last election that his third term would be his last.