The Neediest Cases: The Daughter of a Sick Woman Falls Prey to a Craigslist Scam





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







Librado Romero/The New York Times

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






2012-13 Campaign


Previously recorded:

$3,375,394



Recorded Wednesday:

182,251



*Total:

$3,557,645



Last year to date:

$3,320,812




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

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


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







The Youngest Donors


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





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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


They lost almost $2,000.


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


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


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


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


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


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


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Instagram Reversal Doesn’t Appease Everyone


Peter DaSilva for The New York Times


Kevin Systrom, right, co-founder of Instagram, with employees in the company office in San Francisco last year.







SAN FRANCISCO — Facebook may have quelled a full-scale rebellion by quickly dumping the contentious new terms of use for Instagram, its photo-sharing service. But even as the social network furiously backpedaled, some users said Friday they were carrying through on plans to leave.








Eric Piermont/Agence France-Presse — Getty Images

Kevin Systrom, Instagram’s co-founder, said the company would complete its plans, then explain its ad policy.






Ryan Cox, a 29-year-old management consultant at ExactTarget, an Indianapolis-based interactive marketing software company, said he had already moved his photos to Flickr, Yahoo’s photo-sharing app, where he could have better control.


Mr. Cox said the uproar this week over whether Instagram owned its users’ photos was “a wake-up call.”


“It’s my fault,” he continued. “I’m smart enough to know what Instagram had and what they could do — especially the minute Facebook acquired them — but I was a victim of naïve optimism.”


“Naïve optimism” is as good a term as any for the emotion that people feel as they put their private lives onto social networks.


Companies like Google, Twitter, Yelp and Facebook offer themselves as free services for users to store and share their most intimate pictures, secrets, messages and memories. But to flourish over the long term, they need to seek new ways to market the personal data they accumulate. They must constantly push the envelope, hoping users either do not notice or do not care.


So they sell ads against the content of an e-mail, as Google does, or transform a user’s likes into commercial endorsements, as Facebook does, or sell photographs of your adorable 3-year-old, which is what Instagram was accused of planning this week.


“The reality is that companies have always had to make money,” said Miriam H. Wugmeister, chair of Morrison Foerster’s privacy and data security group.


Even as Instagram was pulling back on its changed terms of service on Thursday night, it made clear it was only regrouping. After all, Facebook, as a publicly held corporation, must answer to Wall Street’s quarterly expectations.


“We are going to take the time to complete our plans, and then come back to our users and explain how we would like for our advertising business to work,” Kevin Systrom, Instagram’s youthful co-founder, wrote on the company’s blog.


Instagram’s actions angered many users who were already incensed over the company’s decision earlier this month to cut off its integration with Twitter, a Facebook rival, making it harder for its users to share their Instagram photos on Twitter.


Users were apprehensive that the new terms of service meant that data on their favorite things would be shared with Facebook and its advertisers. Users also worried that their photos would become advertising.


Instagram is barely two years old but has 100 million users. Last spring, Facebook announced plans to buy it in a deal that was initially valued at $1 billion. The deal was closed in September for a somewhat smaller amount.


For some users, Mr. Systrom’s apology and declaration that “Instagram has no intention of selling your photos, and we never did” was sufficient.


National Geographic, which suspended its account in the middle of the uproar, held a conference call with members of Facebook’s legal and policy teams. Afterward, the magazine, which has 658,000 Instagram followers, said it would resurrect its account.


Also mollified was Noah Kalina, who took wedding photographs earlier this year for Mark Zuckerberg, the founder of Facebook. In a widely circulated post on Twitter, Mr. Kalina said the new terms of service were “a contract no professional or nonprofessional should ever sign.” His advice: “Walk away.”


On Friday, the photographer said he had walked back. “It’s nice to know they listened.”


Kim Kardashian, the most followed person on Instagram, said on Tuesday that she “really loved” the service — note the past tense — and that the new rules were not “fair.” She had yet to update her 17 million Twitter followers on Friday, but since she is pushing her True Reflection fragrance it is a safe bet that she has forgiven and forgotten.


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Boehner's 'fiscal cliff' plan fails









WASHINGTON — House Speaker John A. Boehner abruptly canceled a vote on his Plan B tax proposal late Thursday after failing to find enough GOP support, a stunning political defeat that effectively turned resolution of the year-end budget crisis over to President Obama and the Democrats.


The speaker had spent the last few weeks negotiating one-on-one with the president, establishing himself as the second-most powerful figure in Washington. But with his strategy imploding, Boehner conceded that he would play a lesser role.


"Now it is up to the president," he said, to work with a fellow Democrat, Senate Majority Leader Harry Reid of Nevada, "to avert the fiscal cliff."





The proposal the speaker had hoped to bring to a vote would have prevented a year-end tax increase for all but those earning more than $1 million a year.


But the Ohio Republican said in a statement, "It did not have sufficient support from our members to pass."


The unexpected turn of events caused an immediate reaction on Wall Street, where after-hours investors began to yank money out of U.S. stocks. Futures that track the Standard & Poor's 500 fell 1.5%, and the Dow Jones industrial average dropped 1.6%.


Now, Obama faces a crucial test of his leadership, with little time left to craft a deal.


Obama's most recent offer is likely to be the starting point. He made a substantial concession: raising taxes only on household income above $400,000, rather than the $250,000 threshold he campaigned on for reelection.


As he pursues votes in Congress, the president will need to face down Democrats, particularly the liberal wing that may feel emboldened to demand that a deal be tilted toward their views — perhaps with additional spending on infrastructure or unemployment benefits.


Any compromise will need substantial Democratic support. Although the president needs the speaker to allow legislation to come to a vote in the GOP-controlled House, Boehner emerges in a weakened position and has little leverage to demand further concessions. His Senate counterpart, Mitch McConnell (R-Ky.), will need to decide whether to become a final line of defense against Obama or step aside for a Democratic-led plan.


"The president's main priority is to ensure that taxes don't go up on 98% of Americans and 97% of small businesses in just a few short days," White House Press Secretary Jay Carney said after Boehner canceled the vote. "The president will work with Congress to get this done, and we are hopeful that we will be able to find a bipartisan solution quickly."


Without a compromise, most Americans will see their taxes automatically rise and spending cuts ripple across the economy in the new year. The White House and the speaker had been closing in on a broad deficit-reduction deal to steer around the coming "fiscal cliff," but Boehner suddenly changed course this week to gauge the sentiment of House Republicans.


The support expressed by top Republicans for new taxes has cracked the party's anti-tax orthodoxy and opened the door to a compromise that would have been unthinkable before the November election.


Mindful that his own job as speaker comes up for a vote in two weeks, Boehner must make a difficult choice: whether to allow a plan to come to the House floor without support from his majority, or play a key role in sending the nation over the fiscal cliff and raising taxes on most Americans.


As the speaker and his lieutenants trolled for votes earlier Thursday, buttonholing lawmakers in scenes like those in the movie "Lincoln," Carney dismissed Boehner's Plan B as a "multi-day exercise in futility."


"Instead of taking the opportunity that was presented to them to continue to negotiate what could be a very helpful large deal for the American people, the Republicans in the House have decided to run down an alley that has no exit," he said.


Late in the evening, as the time for voting neared, the House took an unscheduled recess — a sign that the tally had come up short. With Democrats almost unanimously against the bill, Boehner could afford to lose only two dozen Republican defectors.


The speaker and his top lieutenants then convened a late-night meeting of rank-and-file lawmakers and announced they were pulling the bill.


"We don't have the votes," the speaker said, according to a lawmaker in the room.


Conservatives split over Plan B, complicating Boehner's quest. He received a major assist when anti-tax stalwart Grover Norquist's Americans for Tax Reform declared that the bill was a vote for lower taxes and did not violate the pledge most Republicans had signed not to raise taxes. But other leading conservative groups opposed it, including FreedomWorks, which is extremely influential with tea party supporters.





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The Surprising Truth: Technology Is Aging in Reverse



We’re living in a Black Swan world, but what does this mean for the future of technology? The new book Antifragile argues that technologies, ideas, and theories – anything informational or cultural, as opposed to physical – age in reverse.


We may be trained to think that the new is about to overcome the old, but that’s just an optical illusion. Because the failure rate of the new is much, much higher than the failure rate of the old. When you see a young child and an old adult, you can be confident that the younger will likely survive the elder.


Yet with something nonperishable like a technology, that’s not the case.


There are two possibilities: Either both are expected to have the same additional life expectancy, or the old is expected to have a longer expectancy than the young. In this situation, if the old is 80 and the young is 10, the elder is expected to live eight times as long as the younger one.



Building on this so-called Lindy effect (in the version later developed by the great Benoît Mandelbrot), I propose the following:


For the perishable, every additional day in its life translates into a shorter additional life expectancy. For the nonperishable like technology, every additional day may imply a longer life expectancy.


So the longer a technology lives, the longer it can be expected to live.



For example: Let’s assume the sole information I have about a gentleman is that he is 40 years old, and I want to predict how long he will live. I can look at actuarial tables and find his age-adjusted life expectancy as used by insurance companies. The table will predict he has an extra 44 years to go; next year, when he turns 41, he will have a little more than 43 years to go.


For a perishable human, every year that elapses reduces his life expectancy by a little less than a year.


The opposite applies to non-perishables like technology and information. If a book has been in print for 40 years, I can expect it to be in print for at least another 40 years. But – and this is the main difference – if it survives another decade, then it will be expected to be in print another 50 years.


As a rule, this simply tells you why things that have been around for a long time are not “aging” like persons, but “aging” in reverse. Every year that passes without extinction doubles the additional life expectancy.


This is an indicator of some robustness: The robustness of an item is proportional to its life!


And the Lindy effect doesn’t change with the way you define technology – it can be as narrow or as general as you like. A car can be defined as something broad such as a “box on wheels” (including both carriages and modern cars), or, it can be defined as something specific such as “the red convertible.” Each would have a life expectancy that is proportional to its age, as defined. A reading document can be a Mesopotamian tablet, a scroll, or a book – and the book can be physical or electronic.


But what about a technology that we currently see as inefficient and dying, like print newspapers, land lines, or physical storage for tax receipts? People often counter my argument by presenting such examples.


To which I respond: The Lindy effect is not about every technology, but about life expectancy — which is simply a probabilistically derived average.


It’s because the world is getting more technological, that the old has a huge advantage over the new.


If I know that a 40-year-old has terminal pancreatic cancer, I will no longer estimate his life expectancy using unconditional insurance tables; it would be a mistake to think he has 44 more years to live like the others in his age group who are cancer-free. Someone at a conference similarly interpreted my argument as suggesting that the World Wide Web, currently less than about 20 years old, will only have another 20 to go – this is a noisy estimator that should work on average, not in every case.


In general, the older the technology, not only is it expected to last longer – but the more certainty I can attach to such a statement. Here’s the key principle: I am not saying that all technologies don’t age, only that those technologies that were prone to aging are already dead.


It is precisely because the world is getting more technological, that the old has a huge advantage over the new.


Now let’s take the idea beyond technology for a moment. If there’s something in the culture – say, a practice or a religion that you don’t understand – yet has been done for a long time – don’t call it “irrational.” And: Don’t expect the practice to discontinue.


Some things are opaque to us humans. Those things can only be revealed by time, which understands things we humans are unable to explain. But this method allows us to figure out how time and things work without quite getting inside the complexity of time’s mind. Time is scientifically equivalent to disorder, and things that gain from disorder are what this author calls “antifragile.”


Editor’s note: This author adapted this piece from his book Antifragile: Things That Gain From Disorder. 


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‘Zero Dark Thirty’ One of Biggest Mid-Week Limited Debuts Ever






LOS ANGELES (TheWrap.com) – “Zero Dark Thirty” has been slammed by several senators for its depiction of torture, but the issue only appears to have helped it at the box office.


Director Kathryn Bigelow‘s dramatization of the hunt for Osama Bin Laden racked up an estimated $ 124,848 in five theaters in New York City and Los Angeles on Wednesday. That’s an average of $ 24,969, making it one of the biggest limited mid-week openings in history.






Other Oscar-bait films in limited release scored far less in their debuts. “American Beauty” grossed $ 73,000 in 6 theaters and “Little Miss Sunshine” grossed $ 66,000 in 7 showings on their opening days.


The film arrives in theaters boasting four Golden Globe nods, including a nomination for Best Motion Picture – Drama, and a boatload of strong reviews.


In Slate, Dana Stevens praised the film for its unflinching depiction of the global manhunt.


“Zero Dark Thirty, as single-minded and emotionally remote as its heroine, plays its cards so close to its vest that it’s impossible to tell,” Stevens wrote. “But this is a vital, disturbing, and necessary film precisely because it wades straight into the swamp of our national trauma about the war on terror and our prosecution of it, and no one – either on the screen or seated in front of it – comes out clean.”


Not everyone has loved “Zero Dark Thirty”s’ moral ambiguity, however. Senators John McCain, Dianne Feinstein and Carl Levin have criticized the film for seeming to argue that torture helped the CIA locate bin Laden.


In a letter to Sony Pictures chairman and CEO Michael Lynton, the senators said that the studio should state that the film is a work of fiction and its depiction of torture’s role in the operation to find bin Laden is fictitious.


In a statement provided to TheWrap, Bigelow and screenwriter Mark Boal said critics were taking the torture scene out context.


“This was a 10-year intelligence operation brought to the screen in a two-and-a-half-hour film. We depicted a variety of controversial practices and intelligence methods that were used in the name of finding bin Laden,” the statement reads. “The film shows that no single method was necessarily responsible for solving the manhunt, nor can any single scene taken in isolation fairly capture the totality of efforts the film dramatizes.”


“Zero Dark Thirty” stars Jessica Chastain, Joel Edgerton and Chris Pine. It opens in wide release on January 11.


Movies News Headlines – Yahoo! News





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





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




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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


E-mail: dwyer@nytimes.com


Twitter: @jimdwyernyt



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DealBook: Peter Madoff Is Sentenced to 10 Years for His Role in Fraud

8:48 p.m. | Updated

Peter B. Madoff was sentenced on Thursday to 10 years in prison for crimes that helped his brother, Bernard L. Madoff, swindle investors out of billions of dollars in a Ponzi scheme that collapsed four years ago this month.

A lawyer by training, Peter Madoff is the second figure in the scandal to be sentenced. His older brother, Bernard, pleaded guilty in March 2009 and is serving a prison term of 150 years.

Mr. Madoff, in a slate blue suit and striped blue tie, entered the crowded courtroom accompanied only by his lawyers, although many members of his family and friends had written letters of support for him. The 63 character references stood in stark contrast to his brother’s sentencing, when the judge in that case noted that he had not received a single supportive letter.

Still, a handful of victims attended the hearing, including two who spoke emotionally about the financial and psychological hardships they are enduring and urged the judge to impose a life sentence.

In his own brief statement to the judge, Peter Madoff said he was “deeply ashamed” of his conduct and had “tried to atone by pleading guilty.” He added: “I am profoundly sorry that my failures have let so many people down, including my own loved ones and family.”

In June, Peter Madoff, 67, admitted to a range of crimes, including falsifying documents, lying to securities regulators and filing sham tax returns. Prosecutors said that if Peter Madoff had properly done his job as chief compliance officer at Bernard L. Madoff Investment Securities, regulators would likely have detected the fraud years earlier.

Peter Madoff was not charged with knowing about the Ponzi scheme, and insists that he first learned about it only 36 hours before his brother’s arrest.

During the sentencing in Federal District Court in Manhattan, Judge Laura Taylor Swain expressed skepticism about that assertion.

“Peter Madoff’s contention that he did not know that anything was wrong with the investment advisory business is beneath the dignity” of a sophisticated Wall Street executive, Judge Swain said.

“It is also, frankly, not believable,” she added.

Peter Madoff’s lawyer, John R. Wing, has portrayed his client as a loving, charitable family man who was bullied, betrayed and destroyed by the imperious older brother he had idolized all his life. Bernard Madoff was widely viewed as an honorable and successful trader, Mr. Wing wrote in a letter to the court, “and no one believed it more than Peter did. Peter revered him and trusted him implicitly.”

In the geography of the Madoff offices, the money management business run by Bernard Madoff operated from a separate suite two floors below Peter Madoff’s office and the firm’s trading operations. With separate key cards, Bernard Madoff kept the suite off limits, shutting his brother and sons out of the investment advisory business.

In pleading guilty, Peter Madoff has agreed to a 10-year sentence and a forfeiture order of $143 billion. Though a staggering sum that does not bear any relation to what Mr. Madoff could pay, it is tied to the amount of the crime’s proceeds. The government set the amount that high to send a clear signal that it would seize all of his and his family’s assets and distribute them to victims.

On the day of Bernard Madoff’s arrest, his customers thought their accounts contained a total of $64.8 billion, but most of that wealth was fictitious. Madoff’s customers had actual cash losses of about $17.3 billion in the fraud, according to Irving H. Picard, the Madoff bankruptcy trustee.

Mr. Picard has recovered about $9.3 billion and distributed about $3.7 billion of that to eligible victims. An additional $2.35 billion has been seized by federal prosecutors under forfeiture laws and will be distributed separately by the Justice Department.

Peter Madoff worked alongside his brother for 39 years. Though Bernard was the firm’s sole owner, he paid Peter handsomely. The government said that Peter received about $40 million in compensation from 1998 to 2008. That money was put toward his and his wife, Marion’s, lifestyle that included homes in Old Westbury, N.Y., on Long Island, and Palm Beach, Fla., as well as a $4 million apartment on Park Avenue.

In his letter to the judge, Mr. Wing cited the early patterns of the Madoff family as a reason Peter Madoff dutifully obeyed his brother. “Their mother viewed Bernie as the prince, and Peter longed for the love and approval of his brother and family,” Mr. Wing wrote. “Peter had a large build, and Bernie ridiculed him mercilessly, calling him ‘Rollo,’ which hurt Peter deeply.”

But despite that demeaning abuse, “Peter seemed to be blind to his brother’s flaws,” Mr. Wing wrote.

Judge Swain saw it differently. In her view, Peter knew for decades that the Madoff business operation was “a little bit crooked and he was content to go along with that.” She then added, “We all know that a crooked operation is only rarely, if ever, just a little bit crooked.”

Before Thursday’s hearing, both sides filed letters to the judge highlighting factors they hoped she would consider.

The prosecutors stressed the harm done by Peter Madoff’s willful failure to carry out his duties. They cited a letter submitted by Marion Wiesel, the wife of the Nobel Peace Prize-winner Elie Wiesel, whose foundation lost $15.2 million in the fraud. Mrs. Wiesel said the crime that flourished under Peter Madoff’s neglect caused “the immediate and dramatic loss of a lifetime’s worth of work and savings.”

Judge Swain directed Peter Madoff to report to prison on Feb. 6, implicitly granting a request that he not be incarcerated until after his granddaughter’s bat mitzvah in late January.

In her own appeal to the court, the granddaughter wrote, “I would give anything just to have him see me reading from the Torah even if it was only for a second.”

The judge also complied with a request by Mr. Wing that she ask that Peter be assigned to a nearby prison in Otisville, N.Y., permitting regular visits from his family, though that decision ultimately rests with the Bureau of Prisons.

Besides the two brothers, criminal charges have been filed against a dozen other defendants. Bernard Madoff, 74, is serving his sentence at a federal prison near Raleigh, N.C. Peter’s daughter, Shana Madoff Swanson, was a lawyer at the Madoff firm but has not been charged with any crime.

Frank DiPascali, a longtime Madoff employee, pleaded guilty in August 2009 and is awaiting sentencing. Of the remaining defendants, six have pleaded guilty to violations of tax and securities laws that sustained the scheme. The remaining five defendants have denied the government’s charges and their trial is scheduled for October.

Among the 41 victim letters submitted by prosecutors was an unexpected one from Robert Roman, the brother-in-law of Bernard’s wife, Ruth Madoff. Mr. Roman said that although he and his wife lost their life savings in the fraud, he did not want to see Peter imprisoned.

“Our family is supposed to hate him. But — we do not,” Mr. Roman wrote. “Peter in prison is an answer only to those who seek revenge. It is not a solution.”

Toward the end of the hourlong sentencing, as Peter Madoff fought back tears, Judge Swain counseled the defendant that true atonement required that he fully disclose what happened at his brother’s firm.

“Be honest about all that you have done and all that you have seen,” the judge said. “In other words, all that you know.”

A version of this article appeared in print on 12/21/2012, on page B1 of the NewYork edition with the headline: Peter Madoff Sentenced to 10 Years in Fraud Case.
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Fearful 'end of world' calls, emails flood NASA as Dec. 21 nears









If there's one government agency really looking forward to Dec. 22, it's NASA.


The space agency said it has been flooded with calls and emails from people asking about the purported end of the world — which, as the doomsday myth goes, is apparently set to take place Friday, Dec. 21.


The myth might have originated with the Maya calendar, but in the age of the Internet and social media, it proliferated online, raising questions and concerns among hundreds of people around the world who have turned to NASA for answers.





Dwayne Brown, an agency spokesman, said NASA typically receives about 90 calls or emails per week containing questions from people. In recent weeks, he said, that number has skyrocketed — from 200 to 300 people are contacting NASA per day to ask about the end of the world.


"Who's the first agency you would call?" he said. "You're going to call NASA."


The questions range from myth (Will a rogue planet crash into Earth? Is the sun going to explode? Will there be three days of darkness?) to the macabre (Brown said some people have "embraced it so much" they want to hurt themselves). So, he said, NASA decided to do "everything in our power" to set the facts straight.


That effort included interviews with scientists posted online and a Web page that Brown said has drawn more than 4.6 million views.


It also involved a video titled "Why the World Didn't End Yesterday." Though the title of the video implies a Dec. 22 release date, Brown said NASA posted the four-minute clip last week to help spread its message.


The website addresses several scenarios — the possibility of planetary alignments, total blackouts, polar shifts and "a planet or brown dwarf called Nibiru or Planet X or Eris that is approaching the Earth and threatening our planet with widespread destruction" — but comes to the same conclusion.


In short, NASA says, "the world will not end in 2012."


"Our planet has been getting along just fine for more than 4 billion years, and credible scientists worldwide know of no threat associated with 2012," the website says.


The Griffith Observatory will also be trying to debunk doomsday predictions. It announced plans to stay open late Friday evening — until one minute past midnight — to "demonstrate that claims regarding the Maya calendar, planetary alignments, rogue planets, galactic beams, and other related phenomena have no basis in fact."


A few years ago, NASA suspected that it might have to create such a campaign when the idea of the world ending began "festering," Brown said. The apocalyptic action movie "2012," released in 2009, didn't help, he said.


"We kind of look ahead — we're a look-ahead agency — and we said, 'You know what? People are going to probably want to come to us' " for answers, Brown explained. "We're doing all that we can do to let the world know that as far as NASA and science goes, Dec. 21 will be another day."


As for Saturday, when the questions — not the world — end: "I wish it was tomorrow."


kate.mather@latimes.com





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Spoiler Alert: First 3-D Printed Records Sound Awful





The needle drops and a series of high, repetitive whines come from the album. Then a crackling sound, and a muffled guitar riff. Finally, Kurt Cobain’s voice — audible, but distant and hollow, like he is singing in a tunnel with a scarf over his mouth.


It’s about the worst version of “Smells Like Teen Spirit” you could find. But it is awesome all the same for its totally unique medium. This particular LP is part of the batch of the first records ever to be created on a 3-D printer.


“It’s surprising how much you can deform and down-sample an audio file and still recognize it,” says Amanda Ghassaei, assistant tech editor at Instructables, who printed the record, and several others, including music from the Pixies, Daft Punk, and Radiohead.


Ghassaei used a state-of-the-art Objet Connex 500 printer to generate the disc. The whole process is possible because printing resolution has finally become high enough to create the audio-laden grooves for the needle to track and amplify. For her printed records, Ghassaei sets the machine to its finest setting, 600 dpi, with 16 micron steps, about the highest quality available on the market. But it’s still far lower resolution than on a vinyl LP, by a factor of 10 or so; hence the muddled sound that results in part from the needle responding to the layering of the printed plastic. Ghassaei used an 11 Khz sampling rate — the highest the resolution would allow, around 1/4 what you get from an MP3. Even at that low of a rate, the printer’s deficiencies cut off the song’s high-range tones.


“It’s really stripped down, it’s down to the bare essentials,” she says. “It’s never going to be as good as vinyl. It’s not really set up for that. But it’s cool because you can really be creative with it.”


To create the 3-D model for the record, Ghassaei starts with the song’s waveform, using Python to take it directly from an MP3, and digitally renders the shape of it into an STL wireframe using Processing, an open source tool that automates the file generation. She then uses the software to wrap it in a spiral on a 3-D 12-inch disc, varying the depth of the groove to match the waveform. Compared to a normal record, hers have increased amplitude and groove depth to account for the coarse resolution.



While it’s a first for a printed proper LP, others have toyed with simpler forms of 3-D printable music. Earlier this year, Fred Murphy generated “Stairway to Heaven” and three other songs on discs for the classic Fisher Price record player. That toy turntable is different than the common vinyl record player, though; it uses a music-box system with tines that sound as they rotate over the record’s raised bumps. Murphy posted the how-to for his project on Instructables, and offers pre-made versions of his discs through Shapeways.


Ghassaei, like Murphy, has put her project up on Instructables, though it’s not particularly useful unless you have access to a high-end printer in the range of hundreds of thousands of dollars. She is also limited to the first 60 seconds or so, because of the data- and memory-intense 3-D file. A full song would take up a whole side of the album, and the file size would exceed a gigabyte. But that’s not really the point.


“It’s really cool to kind of push the technology and see what you can get out of it,” says Ghassaei. “I’ve got a bunch more that I want to do.”


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China’s airing of ‘V for Vendetta’ stuns viewers






BEIJING (AP) — Television audiences across China watched an anarchist antihero rebel against a totalitarian government and persuade the people to rule themselves. Soon the Internet was crackling with quotes of “V for Vendetta‘s” famous line: “People should not be afraid of their governments. Governments should be afraid of their people.”


The airing of the movie Friday night on China Central Television stunned viewers and raised hopes that China is loosening censorship.






“V for Vendetta” never appeared in Chinese theaters, but it is unclear whether it was ever banned. An article on the Communist Party’s People’s Daily website says it was previously prohibited from broadcast, but the spokesman for the agency that approves movies said he was not aware of any ban.


Some commentators and bloggers think the broadcast could be CCTV producers pushing the envelope of censorship, or another sign that the ruling Communist Party‘s newly installed leader, Xi Jinping, is serious about reform.


“Oh God, CCTV unexpectedly put out ‘V for Vendetta.’ I had always believed that film was banned in China!” media commentator Shen Chen wrote on the popular Twitter-like Sina Weibo service, where he has over 350,000 followers.


Zhang Ming, a supervisor at a real estate company, asked on Weibo: “For the first time CCTV-6 aired ‘V for Vendetta,’ what to think, is the reform being deepened?”


The 2005 movie, based on a comic book, is set in an imagined future Britain with a fascist government. The protagonist wears a mask of Guy Fawkes, the 17th-century English rebel who tried to blow up Parliament. The mask has become a revolutionary symbol for young protesters in mostly Western countries, and it also has a cult-like status in China as pirated DVDs are widely available. Some people have used the image of the mask as their profile pictures on Chinese social media sites.


Beijing-based rights activist Hu Jia wrote on Twitter, which is not accessible to most Chinese because of government Internet controls: “This great film couldn’t be any more appropriate for our current situation. Dictators, prisons, secret police, media control, riots, getting rid of ‘heretics’ … fear, evasion, challenging lies, overcoming fear, resistance, overthrowing tyranny … China’s dictators and its citizens also have this relationship.”


China’s authoritarian government strictly controls print media, television and radio. Censors also monitor social media sites including Weibo. Programs have to be approved by the State Administration of Radio, Film and Television, but people with knowledge of the industry say CCTV, the only company with a nationwide broadcast license, is entitled to make its own censorship decisions when showing a foreign movie.


“It is already broadcast. It is no big deal,” said a woman who answered the phone at movie channel CCTV-6. “We also didn’t anticipate such a big reaction.”


The woman, who only gave her surname, Yang, said she would pass on questions to her supervisor, which weren’t answered.


The spokesman for the State Administration of Radio, Film and Television said he had noticed the online reaction to the broadcast. “I’ve not heard of any ban on this movie,” Wu Baoan said Thursday.


The film is available on video-on-demand platforms in China, where movie content also needs to be approved by authorities.


A political scientist at the Chinese Academy of Social Sciences who used to work for CCTV said the film might have approval, or it could have been CCTV’s own decision to broadcast it.


“Every media outlet knows there is a ceiling above their head,” said Liu Shanying. “Sometimes we will work under the ceiling and avoid touching it. But sometimes we have a few brave ones who want to reach that ceiling and even express their discontent over the censor system.


“It is very possible that CCTV decided by itself” to broadcast the film, Liu said. If so, he added, it would have been “due to a gut feeling that China’s film censorship will be loosened or reformed.”


“V for Vendetta” was released in the United States in 2005 and around the world in 2006. China has a yearly quota on the numbers of foreign movies that can be imported on a revenue share basis, making it tough to get distribution approval. Other movies that failed to reach Chinese screens in 2006 include “Brokeback Mountain” and “Pirates of the Caribbean: Dead Man’s Chest.” Chinese moviegoers that year were able to see “Mission: Impossible III” with Tom Cruise and “The Painted Veil,” which was filmed in China and set in a Chinese village.


Warner Brothers, which produced and distributed “V for Vendetta,” declined to comment.


China doesn’t have a classification system, so all movies shown at its cinemas are open to adults and children of any age. A filmmaker and Beijing Film Academy professor, Xie Fei, published an open letter on Sina Weibo on Saturday calling for authorities to replace the movie censorship system that dates from the 1950s with a ratings system.


The airing of “V for Vendetta” raised some hopes about possible changes under Xi, who was publicly named China’s new leader last month. He has already announced a trimmed-down style of leadership, calling on officials to reduce waste and unnecessary meetings and pomp. His reforms are aimed at pleasing a public long frustrated by local corruption.


State media say they have reduced reports on officials’ trips as part of this drive. The official Xinhua News Agency warned this week that media outlets should “learn to play professionally in today’s information age as an increasingly picky audience is constantly” putting them under scrutiny.


An American business consultant and author with high-level Chinese contacts said there is no less commitment to one-party rule in China, so any media reforms will only go so far.


“You can’t have a totally free media as we would have in the West and still maintain the integrity of a one-party system,” said Robert Lawrence Kuhn, who wrote the book “How China’s Leaders Think.” He said he thinks restrictions are being eased, “but it has to be limited.”


The new leadership has to tread carefully, Kuhn said, because in the age of the Internet, talk about reforms won’t be forgotten.


“High expectations, if they are not fulfilled, will create a worse situation,” he said.


___


AP researchers Flora Ji and Henry Hou contributed to this report.


Entertainment News Headlines – Yahoo! News





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