Slim majority supports L.A. sales tax increase









A Los Angeles sales tax hike being promoted as vital to preserving public safety and helping end years of budget deficits is drawing support from a narrow majority of likely voters, according to a new USC Price/L.A. Times poll.


Fifty-three percent of surveyed voters said they definitely or probably would vote for Proposition A, which is on Tuesday's ballot and would raise $200 million a year by boosting the city's sales tax rate by half a cent to 9.5%, one of the highest in the state.


About 41% of respondents said they expected to vote against the measure, while 6% were undecided. The results offer hope to Mayor Antonio Villaraigosa and other backers of Proposition A, which needs 50% plus one of the vote to pass.





GRAPHIC: Contributions to Yes on Prop. A


Because of the poll's 4.4-percentage-point margin of error, support could dip below 50% and passage can't be taken for granted, said Dan Schnur, director of the Jesse M. Unruh Institute of Politics at USC. "On one hand, [Proposition A] enjoys a fairly sizable lead in the polls," he said. "On the other hand, margins this close to 50% should always be cause for concern for an initiative's proponents."


The bipartisan USC Sol Price School of Public Policy/L.A. Times Los Angeles City Primary Poll canvassed 500 likely voters between Feb. 24 and 27. The poll was conducted jointly by the Benenson Strategy Group, a Democratic firm, and M4 Strategies, a Republican company.


Backers of Proposition A — using contributions from labor unions, billboard companies and real estate interests needing City Hall approvals — have been airing TV ads featuring images of accident victims being rushed to hospitals and a grim-faced Police Chief Charlie Beck warning that "public safety is now in danger."


Beck also has been warning at news conferences and in interviews that the Los Angeles Police Department will lose 500 officers if voters reject the tax increase.


Opponents, who lack the money to mount an advertising campaign, say voters are being asked to pay for bad City Hall spending decisions, including a deal that gives civilian city employees a 25% pay hike over seven years.


Some warn that city leaders will only give away the added sales tax collections by pursuing a proposed phase-out of the business receipts tax. The top five candidates for mayor have come out against Proposition A, and the poll results suggest that was politically wise. Close to half of respondents said they would be less likely to vote for a mayoral candidate who supports the sales tax increase.


The poll indicates that the Proposition A language that city officials put on voters' ballots could end up pushing it to victory, said Chris St. Hilaire, chief executive of M4 Strategies, which helped conduct the poll.


The ballot title calls it the "neighborhood public safety and vital city services funding and accountability measure" and says it would help maintain 911 emergency and other services.


Retired nurse Annette Koppel, 80, voted by mail for the sales tax increase, but only reluctantly. Although she is living on a fixed income, Koppel — a victim of a carjacking in the late 1980s — said she worries about a decrease in the number of police, firefighters and paramedics.


"Without them, what are we going to do?" she asked.


Some, including a former top budget advisor to Villaraigosa who is now running for City Council, have questioned whether the budget crisis is as severe as city officials say.


James Cotton, 84, of Winnetka told The Times that he voted against the sales tax increase even though his daughter is an employee in the Fire Department. Cotton said lawmakers should look for other ways of balancing the budget and making better choices about how to spend taxpayer funds.


"I'm of the opinion that a lot of the money could be better spent," said Cotton, adding that the measure would hurt businesses and residents on fixed incomes.


The push for a sales tax increase is being led by City Council President Herb Wesson, who has helped raise more than $1.2 million for the pro-Proposition A campaign. More than one out of every four dollars has come from labor unions, most of them representing city employees. Service Employees International Union, which represents civilian city employees, has given $100,000. Its members at City Hall received a 3.75% pay increase last summer and are in line for another 1.75% raise in July and a 5.5% pay hike on Jan. 1, 2014.


As of Friday afternoon, real estate interests and billboard companies had provided one-third of the money collected in support of Proposition A, according to Ethics Commission records. Several donors are waiting for the City Council to approve their projects or have already received permission to use tax revenue to finance their projects.


The single biggest donor has been NFL stadium developer Anschutz Entertainment Group, which has received a series of lucrative deals with City Hall over the last decade. The company was given the right to keep up to $270 million in tax revenue generated by its hotels at the LA Live entertainment complex over 25 years.


AEG is also seeking to run the city's Convention Center.


The company, its top executive and its lawyers have given a combined $126,000 to get the measure passed, according to campaign reports.


david.zahniser@latimes.com


kate.linthicum@latimes.com


Times researcher Maloy Moore contributed to this report.





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Evernote Hack Exposes User Data, Forces Extensive Password Resets



Evernote joins Twitter, Apple, and Facebook on the list of tech companies hacked in recent weeks.


Evernote “has discovered and blocked suspicious activity on the Evernote network that appears to have been a coordinated attempt to access secure areas of the Evernote Service,” according to a statement posted on the company’s website earlier today. “As a precaution to protect your data, we have decided to implement a password reset.”


About 50 million passwords have been changed following the breach.


The hackers accessed usernames, email addresses and encrypted passwords. The company is now requiring its users to update their passwords. To facilitate this, Evernote is releasing app updates.


The company claims they’ve found “no evidence” that user content was changed or lost nor that payment information was accessed.


Some users, however, said they had to resync their off-line content as a result of the hack in the Evernote forum.


In a statement sent to CNET, a company representative claims the company caught the hackers early and that they “believe this activity follows a similar pattern of the many high profile attacks on other Internet-based companies that have taken place over the last several weeks.”


The rep went on to say Evernote is “actively communicating to our users about this attack through our blog, direct e-mails, social media, and support.” The Evernote homepage implies email notifications have been sent to users. This author has not yet received one at time of publishing.


The company thinks “creating strong, new passwords will help ensure that user accounts remain secure.” But that’s questionable. Wired’s Mat Honan has suggested abandoning passwords altogether in favor of alternative methods for keeping data secure after he was hacked earlier this summer.


Reactions to the news have quickly spread through Twitter. One user noted, “I’ve had that disturbing feeling this was inevitable.” Patrick LaForge, an editor at the New York Times quipped, “The least the Evernote hackers could do is organize my folders of random clipping and wine label photos.”


This hack comes a day after Evernote made changes to its privacy policies, user guidelines and terms of service.



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Cellar victim Kampusch raped, starved in film of ordeal






VIENNA (Reuters) – A new film based on the story of Austrian kidnap victim Natascha Kampusch shows her being repeatedly raped by the captor who beat and starved her during the eight-and-a-half years that he kept her in a cellar beneath his house.


Kampusch was snatched on her way to school at the age of 10 by Wolfgang Priklopil and held in a windowless cell under his garage near Vienna until she escaped in 2006, causing a sensation in Austria and abroad. Priklopil committed suicide.






Kampusch had always refused to respond to claims that she had had sex with Priklopil, but in a German television interview on her 25th birthday last week said she had decided to reveal the truth because it had leaked out from police files.


The film, “3,096 Days” – based on Kampusch’s autobiography of the same name – soberly portrays her captivity in a windowless cellar less than 6 square metres (65 square feet) in area, often deprived of food for days at a time.


The emaciated Kampusch – who weighed just 38 kg (84 pounds) at one point in 2004 – keeps a diary written on toilet paper concealed in a box.


One entry reads: “At least 60 blows in the face. Ten to 15 nausea-inducing fist blows to the head. One strike with the fist with full weight to my right ear.”


The movie shows occasional moments that approach tenderness, such as when Priklopil presents her with a cake for her 18th birthday or buys her a dress as a gift – but then immediately goes on to chide her for not knowing how to waltz with him.


GREY AREAS


Antonia Campbell-Hughes, who plays the teenaged Kampusch, said she had tried to portray “the strength of someone’s soul, the ability of people to survive… but also the grey areas within a relationship that people don’t necessarily understand.”


The British actress said she had not met Kampusch during the making of the film or since. “It was a very isolated time, it was a bubble of time, and I wanted to keep that very focused,” she told journalists as she arrived for the Vienna premiere.


Kampusch herself attended the premiere, looking composed as she posed for pictures but declining to give interviews.


In an interview with Germany’s Bild Zeitung last week, she said: “Yes, I did recognize myself, although the reality was even worse. But one can’t really show that in the cinema, since it wasn’t supposed to be a horror film.”


The movie, made at the Constantin Film studios in Bavaria, Germany, also stars Amy Pidgeon as the 10-year-old Kampusch and Danish actor Thure Lindhardt as Priklopil.


“I focused mainly on playing the human being because… we have to remember it was a human being. Monsters do not exist, they’re only in cartoons,” Lindhart said.


“It became clear to me that it’s a story about survival, and it’s a story about surviving eight years of hell. If that story can be told then I can also play the bad guy.”


The director was German-American Sherry Hormann, who made her English-language debut with the 2009 move “Desert Flower”, an adaptation of the autobiography of Somali-born model and anti-female circumcision activist Waris Dirie.


“I’m a mother and I wonder at the strength of this child, and it was important for me to tell this story from a different perspective, to tell how this child using her own strength could survive this atrocious martyrdom,” Hormann said.


The Kampusch case was followed two years later by that of Josef Fritzl, an Austrian who held his daughter captive in a cellar for 24 years and fathered seven children with her.


The crimes prompted soul-searching about the Austrian psyche, and questions as to how the authorities and neighbors could have let such crimes go undetected for so long.


The film goes on general release on Thursday.


(Reporting by Georgina Prodhan, Editing by Paul Casciato)


Movies News Headlines – Yahoo! News





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Texas Monthly: Sign Language Interpreters Bring Live Music to the Deaf





On the last night of the 2012 Lollapalooza music festival in Chicago, the sun set over a crowd of thousands who had stood for hours waiting to see Jack White, the headliner. A figure strode onto the stage, setting off a cascade of cheers.




But it was not Jack White, the singer-guitarist, it was Barbie Parker, the festival’s lead sign language interpreter.


Ms. Parker, a Texas native, and members of her Austin-based company, LotuSIGN, had interpreted more than 20 bands’ sets for deaf and hard of hearing festival attendees that weekend. As evidenced by the positive reception she received, her interpretations had won over a good part of the hearing audience as well.


At live music shows, Ms. Parker, 45, does not just sign lyrics — she communicates the entire musical experience. She mouths the words. She plays air guitar and air drums. She jams along with the bands.


“Music is such a large part of who I am,” she said. “I want to be able to open up that experience.”


Ms. Parker was bored in her accounting job and had two young children when she enrolled in her first formal American Sign Language class at San Antonio College about 20 years ago. She became fascinated with interpretation after reading a book about it at her local library and, in a chance encounter just hours after reading it, met the sister of a friend who happened to be an American Sign Language interpreter.


Ms. Parker is now an integral part of Austin’s deaf community. Her two adult sons are proficient in A.S.L., and her company has provided sign language interpretation at music festivals across the country for several years. Next week, she and other LotuSIGN interpreters will take the stage with artists at the South by Southwest music festival in Austin for the sixth year in a row.


The number of deaf and hard of hearing music fans taking advantage of interpretation at free shows held at Auditorium Shores as part of SXSW has risen noticeably in the past few years, Frank Schaefer, the officer manager for the festival, said in an e-mail. The increase can be attributed, at least in part, to a growing number of interpreters who specialize in that kind of work.


A good interpreter is adept at signing, but Ms. Parker also wants her team to impart the emotions and feelings music conveys. Lauren Kinast, 44, who lost her hearing gradually, attended a Rolling Stones concert signed by LotuSIGN interpreters. Ms. Kinast had listened to the Stones growing up, but when she saw Ms. Parker and a colleague interpret their music, she came away with a greater appreciation of the band.


“Everything made it different, better,” Ms. Kinast typed in an interview. “Having the songs interpreted in my language, understanding the emotions behind it, the meaning behind it, and being a part of the concert experience just took my love for them several notches up.”


Ms. Parker first gained recognition in the mid-2000s for interpreting music at the funeral of the parent of a well-known member of the deaf community in Austin. At one point during the service, she needed to sign an emotional musical performance.


“The singer got inspired, so the interpreting had to get inspired,” Ms. Parker said. The signing seemed to further stir the singer, which further moved Ms. Parker. “There was a kind of reverb,” she said. “The deaf audience was just — I just saw these jaws drop open like, ‘Oh, that’s what it’s like.’ ”


After that, she began receiving requests to interpret at weddings, children’s recitals and, of course, live shows. In 2007, she started her own company, Alive Performance Interpreting, which in 2009 became LotuSIGN.


“They’re five-star interpreters,” said Stacy Landry, the program manager for the local government’s deaf and hard of hearing services in Travis County. (Ms. Parker has obvious clout in the field — her traditional interpreting services were used in January when she intepreted President Obama’s Inaugural Address in Washington.)


LotuSIGN interpreters specialize in analyzing lyrics for the artist’s intent in a song. But sign language interpretation, no matter where it takes place, is about more than translating words into gestures and signs. The interpreter must communicate an overall experience by expressing the speaker’s tone, the meaning behind phrases and idioms, and even if someone’s cellphone interrupts an otherwise-silent lecture hall.


One year, Ms. Parker interpreted at a Sheryl Crow concert held to celebrate of one of Lance Armstrong’s Tour de France titles. He was asked to take over on the drums for one of Ms. Crow’s songs.


“Well,” Ms. Parker said, “he wasn’t any good.”


Ms. Parker let the discomfort show on her face as she imitated Mr. Armstrong’s uneven drumming. She nodded subtly to assure perplexed members of the deaf audience that she was indeed doing this on purpose.


As the audience reacted, Ms. Parker saw a deaf man elbow the hearing man next to him and cringe. The hearing man nodded and made a similar pained face.


“They had this shared experience,” Ms. Parker said. The deaf man was truly part of the crowd.


LotuSIGN is working to mentor others in the hope of expanding access to live events. “You can’t do it without a lot of experience,” Ms. Parker said. “It is the hardest work I have ever done.”


Kathryn Jepsen is the deputy editor of Symmetry magazine.



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In Filing, Casino Operator Admits Likely Violation of an Antibribery Law



 In its annual regulatory report published by the commission on Friday, the Sands reported that its audit committee and independent accountants had determined that “there were likely violations of the books and records and internal controls provisions” of the Foreign Corrupt Practices Act.


 The disclosure comes amid an investigation by the Securities and Exchange Commission as well as the Department of Justice and the Federal Bureau of Investigation into the company’s business activities in China.


 It is the company’s first public acknowledgment of possible wrongdoing. Ron Reese, a spokesman for the Sands, declined to comment further.


The company’s activities in mainland China, including an attempt to set up a trade center in Beijing and create a sponsored basketball team, as well as tens of millions of dollars in payments the Sands made through a Chinese intermediary, had become a focus of the federal investigation, according to reporting by The New York Times and The Wall Street Journal in August.


 In its filing, the Sands said that it did not believe the findings would have material impact on its financial statements, or that they warranted revisions in its past statements. The company said that it was too early to determine whether the investigation would result in any losses. “The company is cooperating with all investigations,” the statement said.


 The Sands’ activities in China came under the scrutiny of federal investigators after 2010, when Steven C. Jacobs, the former president of the company’s operations in Macau, filed a wrongful-termination lawsuit in which he charged that he had been pressured to exercise improper leverage against government officials. He also accused the company of turning a blind eye toward Chinese organized crime figures operating in its casinos.


 Mr. Adelson began his push into China over a decade ago, after the authorities began offering a limited number of gambling licenses in Macau, a semiautonomous archipelago in the Pearl River Delta that is the only place in the country where casino gambling is legal.


 But as with many lucrative business spheres in China, the gambling industry on Macau is laced with corruption. Companies must rely on the good will of Chinese officials to secure licenses and contracts. Officials control even the flow of visitors, many of whom come on government-run junkets from the mainland.


 As he maneuvered to enter Macau’s gambling market, Mr. Adelson, who is well known in the United States for his financial and political clout, became enmeshed in often intertwining political and business dealings. At one point he reportedly intervened on behalf of the Chinese government to help stall a House resolution condemning the country’s bid for the 2008 Summer Olympics on the basis of its human rights record.


 In 2004, he opened his first casino there, the Sands Macau, the enclave’s first foreign owned gambling establishment. This was followed by his $2.4 billion Venetian in 2007.


 Some Sands subsidiaries have also come under investigation by Chinese authorities for violations that included using money for business purposes not reported to the authorities, resulting in fines of over a million dollars.


 Success in Macau has made Mr. Adelson, 78, one of the richest people in the world. He and his wife, Miriam, own 53.2 percent of Las Vegas Sands, the world’s biggest casino company by market value. Last year, Forbes estimated his fortune at $24.9 billion.


 Mr. Adelson became the biggest single donor in political history during the 2012 presidential election, giving more than $60 million to eight Republican candidates, including Newt Gingrich and Mitt Romney, through “super PACs.” He presides over a global empire of casinos, hotels and convention centers.


Michael Luo and Thomas Gaffney contributed reporting.



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Bell jurors ordered to begin anew after panelist is dismissed









After nearly five days of deliberations, jurors in the Bell corruption trial were ordered Thursday to begin anew after a member of the panel was dismissed for misconduct and replaced by an alternate.


The original juror, a white-haired woman identified only as Juror No. 3, told Los Angeles County Superior Court Judge Kathleen Kennedy she had gone onto a legal website to look up jury instructions and then asked her daughter to help find a definition for the word "coercion."


Although all but one defense attorney requested that the woman stay, Kennedy said the juror needed to be removed. "She has spoken about the deliberations with her daughter, she has conducted research on the Internet, and I've repeatedly, repeatedly throughout this trial — probably hundreds of times — cautioned the jury not to do that," the judge said.





The removal came after jurors notified the judge that they were deadlocked and that continued deliberations seemed fruitless.


It was unclear how to interpret the day's events, whether the dismissed juror had been a lone holdout or an indication of a fractured jury.


The juror started to tell the judge which way she was leaning in the case, saying she had gone online "looking to see at what point can I get the harassment to stop.... How long do I have to stay in there and deliberate with them when I have made my decision that I didn't think there was —"


Kennedy cut her off before she could finish.


The woman clasped her hands over her mouth and said, "I'm sorry."


Two defense attorneys thought she was leaning toward acquittal and wanted her to stay. "I would have preferred the deadlock to a guilty verdict," said Alex Kessel, the attorney for George Mirabal, one of six former council members charged with misappropriation of public funds.


The council members are charged with inflating their salaries in what prosecutors contend was a far-reaching web of corruption in which fat paychecks were placed ahead of the needs of the city's largely immigrant, working-poor constituents.


When attorneys and defendants were summoned to the courtroom Thursday morning, they were initially told that the jury appeared to be deadlocked.


"Your honor, we have reached a point where as a jury we have fundamental disagreements and cannot reach a unanimous verdict in this case," read a note signed by two jurors, including the foreman, that was given to Kennedy.


A note from another juror alerted the judge that Juror No. 3 had consulted an outside attorney. That did not appear to be the case, but her other actions were revealed under questioning from the judge.


The same juror made a tearful request Monday to be removed from the panel because she felt others were picking on her. Kennedy told the woman that although discussions can get heated, it was important to continue deliberating.


On Thursday, however, the juror again broke into tears and said she had spoken with her daughter about "the abuse I have suffered." She said her daughter told her, "Mom, they're trying to find the weak link."


The woman said she had turned to the Internet to better understand the rules about jury deliberations and came across the word "coercion." After her daughter helped her look up the word's definition, she wrote it down on a piece of paper and brought it with her to court. When the judge asked to see the paper she went into the jury room to retrieve it.


The woman later left the courtroom in tears.


With an alternate in place, Kennedy told the panel to act as if the earlier deliberations had not taken place. The alternate had sat in the jury box during the four-week trial but did not take part in deliberations.


Former council members Luis Artiga, Victor Bello, George Cole, Oscar Hernandez, Teresa Jacobo and Mirabal are accused of drawing annual salaries of as much as $100,000 a year by serving on boards that did little work and seldom met, part of a scandal that drew national attention to the small city in 2010.


Prosecutors said that Bell's charter follows state law regarding council members' compensation. In a city the size of Bell, council members should be paid no more than $8,076 a year.


The trial began in late January, and the case went to the jury last Friday.


As the jury resumed deliberations in downtown Los Angeles, the verdict was clearly in on the streets of Bell.


One resident unfurled old protest banners and signs from the days when the pay scandal was first exposed and then called former members of an activist group that had led the charge for reform in the city.


"We're holding our breaths and waiting," Denise Rodarte, a member of the grassroots group Bell Assn. to Stop the Abuse, said in regard to a verdict.


"It's cut and dry: Local elected officials were supposed to make a certain amount of money, and they made a lot more."


corina.knoll@latimes.com


jeff.gottlieb@latimes.com


Times staff writer Ruben Vives contributed to this report.





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U.S. Judges Offer Addicts a Way to Avoid Prison


Todd Heisler/The New York Times


Emily Leitch of Brooklyn, with her son, Nazir, 4, was arrested for importing cocaine but went to “drug court” to avoid prison.







Federal judges around the country are teaming up with prosecutors to create special treatment programs for drug-addicted defendants who would otherwise face significant prison time, an effort intended to sidestep drug laws widely seen as inflexible and overly punitive.




The Justice Department has tentatively embraced the new approach, allowing United States attorneys to reduce or even dismiss charges in some drug cases.


The effort follows decades of success for “drug courts” at the state level, which legal experts have long cited as a less expensive and more effective alternative to prison for dealing with many low-level repeat offenders.


But it is striking that the model is spreading at the federal level, where judges have increasingly pushed back against rules that restrict their ability to make their own determination of appropriate sentences.


So far, federal judges have instituted programs in California, Connecticut, Illinois, New Hampshire, New York, South Carolina, Virginia and Washington. About 400 defendants have been involved nationwide.


In Federal District Court in Brooklyn on Thursday, Judge John Gleeson issued an opinion praising the new approach as a way to address swelling prison costs and disproportionate sentences for drug trafficking.


“Presentence programs like ours and those in other districts mean that a growing number of courts are no longer reflexively sentencing federal defendants who do not belong in prison to the costly prison terms recommended by the sentencing guidelines,” Judge Gleeson wrote.


The opinion came a year after Judge Gleeson, with the federal agency known as Pretrial Services, started a program that made achieving sobriety an incentive for drug-addicted defendants to avoid prison. The program had its first graduate this year: Emily Leitch, a Brooklyn woman with a long history of substance abuse who was arrested entering the country at Kennedy International Airport with over 13 kilograms of cocaine, about 30 pounds, in her luggage.


“I want to thank the federal government for giving me a chance,” Ms. Leitch said. “I always wanted to stand up as a sober person.”


The new approach is being prompted in part by the Obama administration, which previously supported legislation that scaled back sentences for crimes involving crack cocaine. The Justice Department has supported additional changes to the federal sentencing guidelines to permit the use of drug or mental health treatment as an alternative to incarceration for certain low-level offenders and changed its own policies to make those options more available.


“We recognize that imprisonment alone is not a complete strategy for reducing crime,” James M. Cole, the deputy attorney general, said in a statement. “Drug courts, re-entry courts and other related programs along with enforcement are all part of the solution.”


For nearly 30 years, the United States Sentencing Commission has established guidelines for sentencing, a role it was given in 1984 after studies found that federal judges were giving defendants widely varying sentences for similar crimes. The commission’s recommendations are approved by Congress, causing judges to bristle at what they consider interference with their judicial independence.


“When you impose a sentence that you believe is unjust, it is a very difficult thing to do,” Stefan R. Underhill, a federal judge in Connecticut, said in an interview. “It feels wrong.”


The development of drug courts may meet resistance from some Republicans in Congress.


“It is important that courts give deference to Congressional authority over sentencing,” Representative F. James Sensenbrenner Jr., Republican of Wisconsin, a member and former chairman of the Judiciary Committee, said in a statement. He said sentencing should not depend “on what judge happens to decide the case or what judicial circuit the defendant happens to be in.”


At the state level, pretrial drug courts have benefited from bipartisan support, with liberals supporting the programs as more focused on rehabilitation, and conservatives supporting them as a way to cut spending.


Under the model being used in state and federal courts, defendants must accept responsibility for their crimes and agree to receive drug treatment and other social services and attend regular meetings with judges who monitor their progress. In return for successful participation, they receive a reduced sentence or no jail time at all. If they fail, they are sent to prison.


The drug court option is not available to those facing more serious charges, like people accused of being high-level dealers or traffickers, or accused of a violent crime. (These programs differ from re-entry drug courts, which federal judges have long used to help offenders integrate into society after prison.)


In interviews, the federal judges who run the other programs pointed to a mix of reasons for their involvement.


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Economix Blog: Bernanke Defends Stimulus as Necessary and Effective

The Federal Reserve’s chairman, Ben S. Bernanke, picked an unusual time to offer his most recent defense of the Fed’s campaign to stimulate the economy: 7 p.m. on a Friday night in San Francisco, 10 p.m. back home on the East Coast.

The basic message was the same as Mr. Bernanke delivered to Congress earlier this week: The Fed regards its current efforts as necessary and effective, and the risks, while real, are under control.

“Commentators have raised two broad concerns surrounding the outlook for long-term rates,” Mr. Bernanke told a conference at the Federal Reserve Bank of San Francisco. “To oversimplify, the first risk is that rates will remain low, and the second is that they will not.”

If rates remain low, it may drive investors to take excessive risks. If rates jump, investors could lose money – not least the Fed.

Regarding the first possibility, Mr. Bernanke said that the Fed was keeping a careful eye on financial markets. But he noted that rates were low in large part because the economy was weak, and that keeping rates low was the best way to encourage stronger growth. “Premature rate increases would carry a high risk of short-circuiting the recovery, possibly leading — ironically enough — to an even longer period of low long- term rates,” he said.

At the other extreme, Mr. Bernanke said the Fed could “mitigate” any jump in rates by prolonging its efforts to hold rates down, for example by keeping some of its investments in Treasury and mortgage-backed securities.

Three more highlights from the question-and-answer session after the speech.

1. Mr. Bernanke, asked about the outlook for the Washington Nationals, responded by accurately quoting the “Las Vegas odds” of a World Series appearance: 8/1.

2. Although the decision may be made under a future chairman, Mr. Bernanke said the Fed should continue to offer “forward guidance” — predicting its policies — even after it concludes its long effort to revive the economy.

“Providing information about the future path of policy could be useful, probably would be useful, under even normal circumstances,” he said in response to a question. “I think we need to keep providing information.”

3. Not surprisingly, Mr. Bernanke often is asked to reflect on the financial crisis. He offered something a little different than his normal response on Friday night.

“In many ways, in retrospect, the crisis was a normal crisis,” he said. “It’s just that the intuitional framework in which it occurred was much more complex.”

In other words, there was a panic, and a run, and a collapse – but rather than a run on bank deposits, the run was in the money markets. Improving the stability of those markets is something regulators have yet to accomplish.

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Jury in Bell corruption trial may be deadlocked









A court spokeswoman said Thursday the jury in the Bell corruption case appears to be deadlocked.

“The jurors may be at an impasse,” said Patricia Kelly, a spokeswoman for L.A. County Superior Court.


Jurors sent a note to the judge Thursday morning, and all the attorneys in the case were called in.








Six former Bell City Council members are accused of stealing public money by paying themselves extraordinary salaries in one of Los Angeles County’s poorest cities.


Luis Artiga, Victor Bello, George Cole, Oscar Hernandez, Teresa Jacobo and George Mirabal are accused of misappropriation of public funds, felony counts that could bring prison terms.


They were arrested in September 2010 and have been free on bail.


The nearly $100,000 salaries drawn by most of the former elected officials are part of a much larger municipal corruption case in the southeast Los Angeles County city in which prosecutors allege that money from the city’s modest general fund flowed freely to top officials.


The three defendants who testified painted a picture of a city as a place led by a controlling, manipulative administrator who handed out enormous salaries, loaned city money and padded future pensions. Robert Rizzo, the former adminstrator, and ex-assistant city manager Angela Spaccia are also awaiting trial.


The four-week trial of the former council members turned on extremes.


Deputy Dist. Atty. Edward Miller said the council members were little more than common thieves who were consumed with fattening their paychecks at the expense of the city’s largely immigrant, working-poor residents.


Miller said the accused represented the “one-percenters" of Bell who had “apparently forgotten who they are and where they live."


Defense attorneys said the former city leaders -- one a pastor, another a mom-and-pop grocery store owner, another a funeral director -- were dedicated public servants who put in long hours and tirelessly responded to the needs of their constituents.


Jacobo testified that Rizzo informed her she could quit her job as a real estate agent and receive a full-time salary as a council member. She said she asked City Attorney Edward Lee if that was possible and he nodded his head.


"I thought I was doing a very good job to be able to earn that, yes," Jacobo said.


Cole said Rizzo was so intimidating that the former councilman voted for a 12% annual pay raise out of fear the city programs he established would be gutted by Rizzo in retaliation if he opposed the pay hikes.


The defense argued that the prosecution failed to prove criminal negligence -- that their clients knew what they were doing was wrong or that a reasonable person would know it was wrong.


The attorney for Hernandez, the city’s mayor at the time of the arrests, said his client had only a grade-school education, was known more for his heart than his intellect and was, perhaps, not overly “scholarly.”


Prosecutors argued that the council members pushed up their salaries by serving on city boards that rarely met and, in one case, existed only as a means for paying them even more money.


Jurors were also left to deal with the question of whether council members were protected by a City Charter that was approved in a special election that drew fewer than 400 voters.


Defense attorneys say the charter allowed council members to be paid for serving on the authorities.


But the prosecutor argued that the charter -- a quasi-constitution for a city -- set salaries at what councils in similar-sized cities were receiving under state law: $8,076 a year. Because council members automatically serve on boards and commissions, the district attorney said the total compensation for all of each council member's work was included in that figure.





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