Showing posts with label 5th aug 10. Show all posts
Showing posts with label 5th aug 10. Show all posts

Thursday, August 5, 2010

Investment scams arise amid recession

Investment scams always sprout during a recession, and con artists are reaping a big harvest in this economic downturn.
"It's pretty bad out there," says Texas Securities Commissioner Denise Voigt Crawford.
Investors desperate to make up losses from their 401(k) plans or stock portfolios are the primary victims, she says.
What are the biggest pitfalls? The North American Securities Administrators Association released its annual Top 10 Investor Traps on Wednesday. Among them:
Green schemes. Alternative energy frauds play on the allure of energy-efficient technologies. Some scammers pushed oil-spill cleanup technology in the wake of the Gulf oil spill.
Affinity fraud. Con artists love a crowd, and particularly a crowd of like-minded people: church members, ethnic groups, professional groups. Check any adviser's credentials before you do business with him.
"Off-the-books" deals. If your investment adviser or broker offers you a special "side deal" — available only to the best customers — walk away. Odds are the deal is especially risky, illegal or non-existent.
Unsolicited online pitches. Scam artists have found a new home in social media. You're not going to get a hot penny-stock tip from an anonymous e-mail. You won't get one on Facebook, Twitter or Craigslist, either.
Exchange traded mutual funds. Although many ETFs are simple, low-cost investments, some use derivatives to amplify gains and losses — something many novice investors may not know, Voigt says.
The NASAA took special aim at investment advisers who have undisclosed conflicts of interest. The SEC is studying whether to hold all brokers to a fiduciary standard, meaning they have to act in the client's best interest.
The NASAA has long been in support of the fiduciary standard.
"It's not that you can't sell something to a client when you have a conflict of interest," Crawford says. "You just have to disclose it."
A growing scam that's not on NASAA's list: viatical schemes, where you invest in securities backed by the life insurance of a dying person. The dying person gets an immediate cash payout, while the backer of the plan pays the insurance premiums and collects the death benefit.
Life settlements are legitimate investments when properly structured, Crawford says, but they're typically not liquid. And you have to be sure that the sponsors are indeed paying premiums.
Texas-based National Life Settlements sold about $30 million of life settlements to investors and was shut down in December. Investors got back $19.8 million, or about 69% of what they invested.
Always check out an adviser before you invest.
One good source is the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov.

Band of billionaires pledge to give to charity

In an unprecedented show of generosity, a band of 40 American billionaires have pledged to give at least half their fortunes to charity.
The wealthy families and individuals — including cable TV mogul Ted Turner, Oracle co-founder Larry Ellison and filmmaker George Lucas — are the first to join an organization founded by Microsoft co-founder Bill Gates and billionaire investor Warren Buffett in June.
In a conference call Wednesday, Buffett said he, Bill and Melinda Gates and others made 70 to 80 calls to some of the nation's wealthiest individuals. Those who agreed to the pledge are from 13 states and the District of Columbia. Buffett and Gates also plan to meet with groups of wealthy people in India and China to discuss giving.
"We hope this movement will lead to more, and smarter, philanthropy," Buffett said.
Many on the list will be asked to call others, and a handful of small dinners will be held nationwide this year to spread the word, said Buffett, who decided in 2006 to give almost all of his estimated $47 billion fortune to charity. The predominantly male list includes Microsoft co-founder Paul Allen, eBay founder Pierre Omidyar and Silicon Valley venture-capital titan John Doerr.
Among those who didn't sign the pledge, some preferred anonymity, some were unavailable, and others were not interested, Buffett said.
Gates and Buffett estimate their efforts could generate $600 billion in charitable giving. Last year, American philanthropies received a total of about $300 billion in donations, according to Giving USA's annual report on charitable donations in the U.S.
"Nothing like this has happened before," says Caroline Preston, a staff writer at The Chronicle of Philanthropy, a newspaper that covers charities and fundraising.
Many of the names on the list are well-known for their giving, such as Turner and New York Mayor Michael Bloomberg. But only 17 on the Forbes400 list of the richest Americans made The Chronicle's list of the most generous American donors last year.
"Maybe this news can bridge what has been a big disconnect," Preston says.
None of the philanthropists will be told how or when to give their money.
Bloomberg, whose fortune is pegged at $18 billion by Forbes magazine, said in a conference call that he is trying to play a leadership role in giving after being private. "Everybody on this list has a really different list of interests," said Bloomberg, who has shown an interest in education.

Jury halts deliberations in Sypher, Pitino extortion case

After Karen Sypher's defense rested without calling a single witness, a federal jury of six men and six women deliberated for about 90 minutes Wednesday before deciding to stop for the afternoon and resume Thursday morning.
The sensational case involving allegations of extortion and extramarital sex was given to the jury shortly after 3 p.m. following closing arguments in which a federal prosecutor called Sypher's threats against University of Louisville coach Rick Pitino "a pure shakedown," and Sypher's lawyer claimed it was her ex-husband who was behind the scheme.
The jury will return to U.S. District Court in Louisville at 9:30 a.m. to resume deliberations on the six counts against Sypher, 50, who is accused of threatening Pitino with the intent of extorting money and gifts, lying to the FBI and retaliating against Pitino for reporting the alleged extortion attempts.
Speaking for one hour on the eighth day of Sypher's trial, Assistant U.S. Attorney Marisa Ford told the jury that "this is a case about a defendant who was looking for a golden parachute" and "looking for something for nothing."
"She had information that was embarrassing to him, and she was shaking him down," Ford said.
But Sypher's lawyer, James Earhart, suggested for the first time during the trial that Tim Sypher, Pitino's former equipment manager and the current director of the YUM! Center, was broke and masterminded the scheme to get cars, cash and a house from Pitino.
"Tim Sypher was the one person who stood to gain," Earhart said.
Earhart, who again argued that Pitino raped Sypher twice in 2003, called the Louisville Metro Police Department's review last year of her allegations "the most ridiculous rape investigation I've ever heard of," saying it was designed to protect Pitino and the "multimillion dollar basketball program."
"The rules don't apply to the privileged," Earhart said. "You've seen that in this case."
In a brief rebuttal argument, First Assistant U.S. Attorney John E. Kuhn Jr. dismissed Earhart's argument that Tim Sypher was behind the extortion plot as a "bizarre theory" that is "illogical, doesn't fit any of the evidence and is based entirely on speculation."
The government's argument
Ford told the jury there was no dispute that Pitino and Sypher had consensual sex in 2003 and that she later had an abortion.
"You may not condone what Mr. Pitino did," Ford said. "I don't condone it. The man was married.
"But it was not criminal. People make mistakes. They are human beings."
Ford cited Sypher's numerous "inconsistencies, lies and things that are completely implausible," noting for example, that in a conversation with Pitino that Sypher recorded in February 2009 she said she was "four-months pregnant" when she aborted the child she claimed he fathered.
But medical records show she was five weeks pregnant, at most.
"That was a bald-faced lie," Ford said.
Ford also reminded the jury that Sypher told her divorce lawyer, Dana Kolter, that it was "snowy" on the night of the first rape – the last day of July in 2003 — and that she told police she was professionally dressed in a skirt that reached her knees, when several witnesses agreed she was wearing a mini-skirt.
"When you are not telling the truth about something, you can't keep your facts straight," Ford said.
She told the jury that Sypher thought up the extortion scheme because she insisted on living in a "$1 million house in Lake Forest" and her husband at the time, Tim Sypher, couldn't afford it.
Addressing the six counts against Sypher one by one, Ford recalled how Sypher's longtime friend and occasional sex partner, Lester Goetzinger, testified that she "begged and pleaded" with him to leave three threatening messages on Pitino's cellphone and performed oral sex on him the day before the first call.
She recalled how Sypher wrote a list of seven demands for Pitino — promising to protect him for life if he complied with them — and had her husband deliver it across state lines to the coach in West Virginia.
And she recited how Sypher falsely told FBI agents that she didn't know who made the phone calls and that her relationship with Kolter was "strictly business."
"It is a crime to lie to federal agents," Ford said. "The defendant lied."
She also said the lies were "material" to the FBI's investigation — a requirement to obtain a conviction — because the FBI didn't know at the time that Goetzinger made the calls, and it didn't know whether Kolter was representing her strictly in his capacity as a lawyer or because she was "exercising undue influence over him" through sex.
Ford described the final charge — that Sypher retaliated against Pitino by accusing him of rape only after she was charged with extortion — as "payback, pure and simple."
"This is not conduct we can condone as a society," Ford said.
She challenged the claim that Sypher had Goetzinger — who also was her sex partner — make the three threatening messages left for Pitino in February 2009, and asserted that the last of the three calls was made by someone else.
Playing the three calls for the jury, Earhart told the jury that "you don't need the FBI's voice-recognition laboratory" to know the third caller was a different person.
He cited no evidence to support the claim, but said Tim Sypher was behind the calls and had "somehow gotten to Goetzinger."
Earhart said Tim Sypher "hunted" Karen down on March 6 and forced her to write a demand note to Pitino listing items that Pitino already had agreed to provide.
"Tim tells her he needs to take the list to West Virginia," Earhart said. "She had no intention of writing that list whatsoever."
And Earhart said Tim Sypher decided on his own to give the note that night to Pitino, on the eve of the final basketball game of the season.
"Tim Sypher is broke," Earhart said. "He thinks there is a way to cash in if Karen gets something and he can preserve their marriage."
The defense lawyer said Tim Sypher's scheme broke down when Karen, "finally fed up," went to Kolter and had him write a letter making "legitimate demands" to Pitino for the alleged rape six years earlier.
The last word
In a brief rebuttal argument, Kuhn reminded the jury that Goetzinger, who received a pretrial diversion after he was charged with aiding and abetting Sypher, exchanged 15 calls with her on the day before the first threatening message was left on Pitino's cellphone.
Kuhn said there was no record of any calls between Tim Sypher and Goetzinger.
Kuhn also noted that Sypher eventually admitted that Goetzinger made the calls, and that she had given him Pitino's private cellphone number.
Kuhn said it was "totally implausible" that Karen would have married Tim Sypher and taken him into her home if her allegations were true — that he ignored her cries for help when she was allegedly raped by Pitino in his condo and threatened to put her and her four sons in "concrete" if she didn't get an abortion.
Finally, Kuhn cited the testimony of another of Sypher's former boyfriends, Tyree Fields, who testified that three days after she was initially charged in April 2009 with extortion and lying to the FBI, Sypher admitted that she had done it and that it was "stupid."
No defense witnesses
The morning began when Earhart surprisingly announced that the defense would rest without calling Sypher or any other witnesses.
In a brief interview later, Earhart said he made that decision because the jury had already heard from Sypher in three hours of video interviews with a television station and police — without having to be examined by the prosecution.
"How could I do better than that?" he asked.
Under the law, the defense is not required to present any evidence because the defendant is presumed innocent and the burden of proof is on the government.
Lawyers who aren't involved in the case say that Earhart might not have wanted to expose Sypher to cross-examination that would delve into inconsistencies in her statements.
Also, federal sentencing guidelines allows a judge who believes a defendant lied on the witness stand to increase the sentence, according to Scott C. Cox, a former federal prosecutor. That could mean an extra year in prison for Sypher, if she's convicted.
"It's better to put on no witnesses than a bad witness," said Marc Murphy, a defense lawyer who is a former commonwealth's attorney.
However, several of the lawyers said they expected Sypher to testify because she had said she was looking forward to telling her side of the story at trial, and because Earhart had emphatically stated that she was raped.
"I would think that jurors would expect to hear her get up and say that," Cox said.

Void filled: 15-time All-Star Shaquille O'Neal to Celtics

The Big Shamrock it is.
Veteran center Shaquille O'Neal, 38, signed a two-year deal with the Boston Celtics Wednesday, giving the Celtics another piece to their version of a super-team, albeit older than the one the Miami Heat assembled with guard Dwyane Wade and forwards LeBron James and Chris Bosh.
Guards Ray Allen and Rajon Rondo, forwards Paul Pierce and Kevin Garnett and centers Jermaine O'Neal and O'Neal are not ready to hand anything to the Heat. The Celtics also signed free-agent center Jermaine O'Neal.
This adds even more interest to the NBA's season opener between the Heat and Celtics in Boston on Oct. 26. O'Neal won one of his four championships rings with the Heat in 2006.
"It is not every day that you can add a player of Shaquille's caliber to your team," said Danny Ainge, Boston's president of basketball operations. "His past experience speaks for itself and we believe that he is a great fit for our roster."
The Celtics were this decade's original super team, when they brought in Garnett and Ray Allen and joined them with Pierce in 2007-08. The Celtics won the championship that season.
O'Neal's addition will also help soften the loss of forward Rasheed Wallace, who is expected to retire, and the absence of center Kendrick Perkins, who will miss at least two months after tearing his ACL in Game 6 of the Finals against the Los Angeles Lakers.
O'Neal, a 15-time All-Star and No. 7 scorer in NBA history, was looking for work after his contract with the Cleveland Cavaliers expired. He was one of the last big names on the free-agent market.
"I am honored to be joining the Celtics," O'Neal said. "I have played against Paul, Ray, Kevin, Rajon, and Jermaine for many years and it will be great to be able to call them my teammates. I cannot wait to get to Boston to get started in pursuit of another championship."
With the Cavaliers last season, O'Neal averaged 12 points, 6.7 rebounds and 1.2 blocks. He missed Cleveland's final 23 regular-season games with a thumb injury that required surgery.
In the second round of the playoffs against the Celtics, O'Neal was Cleveland's second-best player, averaging 13.5 points and five rebounds. He shot 51.8% from the field in the six-game series.
"I am very excited," Celtics coach Doc Rivers said. "Adding a player, like Shaq, is a major plus and it fills a void for our team. He's a real nice piece of the puzzle and he will complement us in where we want to go this coming season."
The three-time Finals MVP will become the 26th player to play for the Lakers and Celtics — the NBA's two most storied franchises — according to Elias Sports Bureau and the 11th to join the Celtics after the playing for the Lakers.
O'Neal wasn't always interested in playing for the Celtics. In his 1993 book Shaq Attaq written with Sports Illustrated's Jack McCallum, O'Neal wrote, "Did I want to play for the Los Angeles Lakers? Man, what do you think? Of course I did. The Lakers were the Lakers. They had tradition, but they weren't old and musty like the Boston Celtics."

Phelps, Lochte finish 1-2 in 200 freestyle at U.S. nationals


IRVINE, California (AP) — Michael Phelps won the 200-meter freestyle at the U.S. national championships, then came back less than an hour later to win the 200 butterfly on Wednesday night.
Phelps led all the way in the 200 free and touched in 1 minute, 45.61 seconds — fastest in the world this year — to earn a spot on the U.S. team for the Pan Pacific championships later this month.
"Still slower than I want to be," the Olympic champion said. "I wanted to step on it in the first 100, then hopefully hold them off coming home."
Ryan Lochte finished second in 1:47.78, the second-quickest time in the world. It was a two-man race to the finish between the Olympic teammates.
Peter Vanderkaay, the Olympic bronze medalist, was third in 1:46.84.
Phelps was last off the blocks in the 200 fly, but he led all the way again and easily won despite what he called "probably the worst 200 fly I've swum in my life in terms of strokes and turns."
He touched in 1:56.00 — 4.49 seconds slower than his world-record time at last year's world championships in Rome.
"I didn't feel good at all," he said. "I chopped two of my walls. It's a lot of small things. It's going to come back to being in shape."
Second-place Mark Dylla finished well back in 1:57.08, and Tyler Clary was third.
Phelps hasn't lost the 200 fly since 2002, and it's special to him.
"This is the first race I made the international scene in," he said. "I wanted to make sure I secured a win. That's my race."
World recordholder Aaron Peirsol was upset in the 100 backstroke, narrowly losing to David Plummer, a 24-year-old swimmer from Minnetonka, Minn., who won the first national title of his career.
"It makes me think I can be the best in the world one day, and that's every swimmer's dream," he said. "You can do it from anywhere. You don't have to train next to the best in the world to be the best in the world."
Peirsol still earned a spot on the Pan Pacs team. He had won the event at every nationals he had competed in since 2000. He lost the same event to Nick Thoman at the Charlotte UltraSwim in May.
"I was happy for Dave. He's been swimming a long time," Peirsol said. "Races like that can go either way."
Thoman led at the turn, Peirsol was second and Plummer third. Plummer rallied down the stretch and touched first in 53.60 seconds. Peirsol was timed in 53.63, with Thoman clocking 53.78.
"I'm not sure that fazes me considering how close it was. David was due," Peirsol said. "I swam a fine race."
Natalie Coughlin won the 100 backstroke in her first major competition since the 2008 Beijing Olympics. She finished in 1:00.14, fending off a trio of teenagers. Melissa Franklin, 15, was second in 1:00.39. Rachel Bootsma and Olympian Elizabeth Pelton, both 16, were third and fourth.
Coughlin has won the event in every nationals she's competed in since 2001.
"A lot of big things and great things happen when you're yourself, you're relaxed, you're having fun and your mind is really not thinking anything," he said.
Olympian Allison Schmitt edged Dana Vollmer by less than a tenth of a second in the 200 freestyle. Schmitt reached the wall in 1:56.84, with Vollmer right behind in 1:56.93. Katie Hoff was third in 1:57.50.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

With 600 behind him, can Alex Rodriguez catch Bonds' 762?

Now that Alex Rodriguez has 600 home runs in his rearview mirror, how many might the Yankees third baseman expect to hit?
"Six hundred home runs — that's ridiculous. That's a lot of home runs, man," says teammate Nick Swisher.
"But 700, eight, nine, 1,000 — I don't know. He's such a talented player, and with the way he takes care of himself, anything's possible."
Rodriguez turned 35 on July 27. No other player has reached 600 before his 36th birthday, although Yankees icon Babe Ruth did it in fewer games — 2,044 to 2,227.
But the numbers indicate that Rodriguez's body might already be in decline and that catching all-time leader Barry Bonds (762), let alone becoming the first player to reach 800, might not be as easy as it once appeared.
For one thing, Rodriguez is dealing with a surgically repaired hip that limited him to 124 games in 2009 when he hit 30 home runs, his lowest total in the past 12 seasons.
This year, homers are down across baseball and Rodriguez has hit 17, putting him on pace for 26 at season's end.
In early July, Hall of Famer Reggie Jackson, a special adviser for the Yankees, predicted Rodriguez "is going to hit 800 home runs."
A few weeks later, Jackson backed off just a bit.
"He's got to stay healthy," Jackson said. "You don't know how long his hip is going to stay healthy. Right now, I don't know if he's going to make 800.
"With the pace he had before the hip surgery, I would say yes. But I have my doubts now. It would really (depend) on how he physically holds up because he'd have to hit 35 a year (to do it in six seasons) — and he was putting up 40 a year, 50 a year."
Rodriguez, who hit 57 homers for the Texas Rangers in 2002 — the middle year of a three-year period in which he admitted using banned performance-enhancing drugs — and 54 for the Yankees when he won his third American League MVP in 2007, has seven years remaining on a $275 million, 10-year contract. From 2001 to '07 he averaged 47 homers. He's totaled 82 homers in the three seasons since.
"(No. 600) is definitely a special number," Rodriguez said Wednesday. "I'm certainly proud of it and will treasure it. Many, many years from today, I will be able to reflect a lot better."
Besides, Rodriguez struggled through a 12-game drought to hit the milestone home run. Going forward, he says he would rather focus on passing individuals than round numbers.
"The real milestone is when you start passing the all-time greats," Rodriguez said. "As long as it doesn't have a zero at the end, I think I'm going to be OK."
Teammates seem to think Rodriguez has plenty of spring left.
"For Alex to (reach 600) at a young age and for a milestone like this not to be enough for him just shows his competitiveness and his drive to be the best," says first baseman Mark Teixeira, who leads the Yankees with 23 home runs. "I hope to be standing here in five or six years and have Alex get to 800 — and I think everyone expects that for him."
***
March to 600 has been relentless
Milestone Alex Rodriguez homers (by date, opponent and age):
HR Date Pitcher, team Age
1 June 12, 1995 Tom Gordon, Royals 19 years, 10 months, 16 days
100 Aug. 12, 1998 Nerio Rodriguez, Blue Jays 23 years, 16 days
200 May 12, 2001 Jon Garland, White Sox 25 years, 9 months, 15 days
300 April 2, 2003 Ramon Ortiz, Angels 27 years, 8 months, 6 days
400 June 8, 2005 Jorge de la Rosa, Brewers 29 years, 10 months, 12 days
500 Aug. 4, 2007 Kyle Davis, Royals 32 years, 8 days
600 Aug. 4, 2010 Shaun Marcum, Blue Jays 35 years, 8 days

In China, a head start means high tuition, high pressure

BEIJING — Six-year-old Yang Xuening attends classes at a private school from 7:30 a.m. to 4:30 p.m. weekdays, plus three-hour sessions Saturday and Sunday. But her father denies it's a heavy schedule. "There are parents who organize far more for their kids," Yang Jinyao says. "All my friends send their kids to extra classes."
In a nation of 1.3 billion people, getting a head start for one's offspring, often an only child, can prove a major, costly headache. And it's getting worse, some educators say, as China's exam-focused system ramps up the pressure, even on preschoolers.
American parents have long hustled to secure the best early-childhood education to smooth the path to success, but it's a new and now widespread phenomenon for Chinese families. Where China once espoused an egalitarian, socialist society, students today face a highly competitive system racked by underfunding and imbalances between city and countryside, China experts say.
"Traditionally, most Chinese parents believe it is better to let their children play until they are 6, then start learning at primary school," says Du Juan, an editor at the China National Society of Early Childhood Education, a non-profit. In larger cities, many kindergartens now focus on prepping for school entrance exams, "which has a negative influence on children's mental development," she says.
"Most of the learning is based on memory, not creative thinking," Du says. "The solution is to mix play and learning, with less focus on exams, but the reality is cruel: Now, most parents can't just let their kids play."
The culprit is clear, says Zhao Yong, an education specialist at Michigan State University. Despite recent moves to widen enrollment methods, China's college entrance exam, taken by almost 10 million students this year, "actually decides the whole education system," Zhao says.
"Every level is a selection process," he says, whereby the right kindergarten can feed into schools offering better access to top colleges. "In the USA, you go to college to learn something. In China, it's about having a credential. That's more important than what you learned there," Zhao says.
Just getting into kindergarten can be a challenge in rapidly supersizing cities such as the capital, Beijing, where state-run kindergartens have dwindled in recent years. This month, more than 100 parents waited in line for three days outside a kindergarten in Beijing's suburbs, reported the state-run China Daily newspaper — for just five available spots.
Premier Wen Jiabao in July ordered officials nationwide to solve the crisis. Beijing promised to spend $737 million over five years building 118 new kindergartens and enlarging 300 more.
Competition for places in kindergartens and primary schools has grown severe over the past two years, says Lian Huangcen, founder of the Oriental Pyramid Children's Potential Training School in Beijing.
"All good schools require an interview and exam, and kindergartens, too, now require an interview," she says. "As soon as women get pregnant, many go to register at kindergartens, or their children won't get in."
That's good news for Oriental Pyramid, which specializes in preparing preschoolers for primary school, and has grown to 300 branches in the past nine years. Yang Xuening is among 5,000 children attending its Beijing classes. In March, her father removed her from an ordinary kindergarten and enrolled her full time, at a cost of $1,918 for six months.
Chinese society "places too much pressure on children, and the pressure on those about to enter primary school is unimaginable to parents," complains Huang Heqing, a psychology professor at Beijing University who researches child education.
"It's connected to the pressure of the college exam moving lower (to tests at a younger age), and the uneven distribution of educational resources," Heqing says. "Parents have no option but to send their children to additional training classes."
China wants to boost the number of children taking three years of preschool to 75% in 2020 from 51% in 2009. Preschoolers will jump from 26 million to 40 million, mostly in the state-run kindergartens that appeal to the many parents who cannot afford the booming but more expensive private sector.
"Many parents, and all officials right up to Wen Jiabao, are very concerned that the Chinese educational system produces students with high test scores but low ability," Zhao Yong says. "That won't help China move from a cheap labor economy to an innovation-based economy," an oft-stressed government goal.
For now, Yang Xuening has passed the first hurdle, scoring 92% in her primary school entrance exam.
"I enjoy the singing, and I never feel tired in class," she says of her busy schedule at Oriental Pyramid.
Her dream? To be a kindergarten teacher, her father says.

Suit alleges exploitation of Filipino teachers in La.

BATON ROUGE — Hundreds of Filipino teachers recruited to teach in Louisiana schools were thrust into massive debt, unsavory living conditions and, in effect, indentured servitude, an attorney charges in a class action lawsuit to be filed today.
About 350 teachers were recruited through a placement service for Filipinos, which the lawsuit says charged them exorbitant application fees and transportation and housing costs and demanded up to 30% of their salaries their first two years.
"It was close to slavery," said Mary Bauer, lead attorney in the lawsuit set to be filed in federal court in Los Angeles by the Southern Poverty Law Center, the American Federation of Teachers and the law firm Covington & Burling. "There was fraud on a number of levels here."
Filipino teachers began arriving in Louisiana in 2007. They were granted visas through the H-1B "guest worker" program, administered by the Department of Labor, which permits foreign nationals with special skills to work in the United States. Each of the Filipino teachers has specific skills sought by school systems.
The lawsuit charges racketeering, human trafficking, extortion and mail and wire fraud by two employment agencies — Universal Placement International (UPI), based in Los Angeles, and a related company, PARS International Placement Agency of Manila. Lourdes "LuLu" Navarro, owner of UPI, and her husband, Hothello "Jack" Navarro, are named defendants, along with LuLu Navarro's brother, Emilio Villarba, a principal operator of PARS.
It also names three former or current East Baton Rouge Parish school system employees who helped recruit Filipino teachers.
The Navarros' attorney, California lawyer Robert Silverman, denied all allegations, saying they had been dismissed previously by federal immigration agencies.
"I am not aware of anyone who has forced any teacher to do anything against their free will," Silverman said in a statement.
Attempts to contact the former and current superintendents of East Baton Rouge Parish on Wednesday were unsuccessful. Chris Trahan, communications director for the school system, said staff attorneys were "still looking over" the lawsuit.
The lawsuit contends the teachers came to Louisiana with huge debts, were limited to working only for the employer designated by UPI, were required to live in crowded housing arranged by the company and were prevented from bringing any family members with them.
"It was a recipe for abuse," Bauer said, and anytime a Filipino teacher complained, Navarro threatened lawsuits and deportation.
"There's a lot more to it than the money," said Mai Ri, a Baton Rouge teacher. "It's being free from bondage and harassment."
Contributing: Mike Hasten reports for Gannett's Baton Rouge (La.) bureau

Decision time in nation's priciest House primary

A Republican primary in a rural Tennessee district has become the most expensive House race in the country, demonstrating the recession-proof nature of politics in this high-stakes election year.
Voters in the Volunteer State will head to the polls today to pick nominees for fall races ranging from governor to state Legislature. Adding to the interest: Three of Tennessee's nine congressional seats are being vacated by retiring lawmakers this year.
Candidates in the 8th Congressional District, in the state's northwestern corner, have spent about $5.2 million, making the race the nation's costliest. It is "absolutely obliterating" 2008 campaign-spending records, says Dave Levinthal of the Center for Responsive Politics.
The non-partisan campaign watchdog group calculates that two years ago, the average U.S. House race, including both the primary and general election campaigns, cost just under $2 million.
Primary contests will be decided this month in four races atop the center's spending charts: the Tennessee House race and Senate races in Connecticut, Arizona and Florida.
The huge sums being spent to attract the attention of voters in August, when many Americans are on vacation, illustrates "the arms race mentality" of a political culture awash in "an ever-larger pool of influence-seeking money," says Fred Wertheimer of the campaign watchdog group Democracy 21. "There is no such thing as a downturn in campaign spending."
This year's top-dollar races feature either nationally known candidates, such as 2008 Republican presidential nominee John McCain, running for re-election in Arizona's Senate primary, or those who are independently wealthy, such as businessman Jeff Greene, a Florida Democratic Senate hopeful, and former World Wrestling Entertainment executive Linda McMahon, seeking Connecticut's GOP Senate nomination.
The Tennessee contest is a case in which personal wealth is upping the ante. Incumbent Democratic Rep. John Tanner is retiring, raising GOP hopes of taking a district that voted Republican in the past two presidential contests.
George Flinn, a radiologist and radio station owner, has invested $2.9 million of his own money in his campaign. Another doctor hoping to turn politician, Ron Kirkland, and Stephen Fincher, a farmer and gospel singer who is backed by the National Republican Congressional Committee, each have spent $250,000 of their own money.
The mostly rural district — whose largest town, Jackson, has 63,000 people — has been blanketed with television ads, many of them negative. The big winner, says Vanderbilt University political science professor Bruce Oppenheimer, is Democratic candidate Roy Herron, a state lawmaker who is sitting on a $1.1 million war chest.
"Roy Herron has been sitting back and enjoying this," Oppenheimer says.
More funds are on the way for the eventual GOP nominee: The 60 Plus Association, a conservative group whose spokesman is singer Pat Boone, said it will launch a $222,000 ad campaign against Herron beginning Friday.

Thanks to heat, some places can just chill this winter

As sweltering heat continued across much of the USA this week, forecasters say relief in the form of a mild winter is on the way.
The 2010-11 winter season will start strong in the East Coast, and then ease back to normal winter temperatures, says Ken Reeves, director of forecast operations at AccuWeather.com. Warmer-than-normal temperatures in the Southeast will make Florida "a perfect winter destination," but the country's Northwest, northern Plains and Great Lakes states will have above-normal snowfall. Southern California will be "bone dry."
The National Weather Service says immediate relief from the country's current hotter-than-normal temperatures will come in the form of a cold front today. The front is likely to quell record heat that hit the Mississippi Valley on Wednesday, where temperatures rose to 102 in Evansville, Ind., beating an 80-year record, National Weather Service meteorologist Chris Hedge said.
The winter forecast will be good news for some, but bring problems for others:
In Omaha, another year of abnormal snow may be a problem for seniors, said Jeff Reinhardt, director of public affairs for the Eastern Nebraska Office on Aging, which runs the Meals on Wheels program there.
"With ice and snow, shoveling's a huge problem; the cold makes their heating bills go up," Reinhardt says.
Omaha was snow-covered for three months in a row last year, Reinhardt says. "I'm not looking forward to that again," he says.
In Southern California, drier-than-normal conditions could exacerbate water shortages, said Dana Friehauf with the San Diego County Water Authority.
The authority is trying to fill reservoirs in preparation and has extended water restrictions.
In Pensacola, Fla., where the oil spill deterred some tourists this summer, Tamara Baldanza of the Margaritaville Hotel said she is "thrilled" to hear the winter may be mild. "I hope people who canceled will decide to rebook for this winter."
In Cleveland, where more snow than usual is forecast, Commissioner of Streets Randell Scott says, "Let it snow; we can handle it."
The city gets an average 63.3 inches of snow in a season, has 74 plows, 12 road graders and three industrial-size snow blowers, he said.

Fatal crash latest flashpoint in immigration debate

Fatal crash latest flashpoint in immigration debate

An illegal immigrant charged with drunken driving in a crash that killed a nun and critically injured two others could face a felony murder charge in the case, a Virginia prosecutor said Wednesday.
Paul Ebert, the commonwealth's attorney for Prince William County, said he will seek the charge when he presents the case to a grand jury in September against Carlos Martinelly Montano, 23. Montano already is facing a third charge of driving while intoxicated and a charge of involuntary manslaughter after Sunday's crash. A felony murder conviction carries a maximum of 40 years in prison.
ILLEGAL IMMIGRANTS: Leaving U.S. also risky
FULL COVERAGE: Immigration policy
The crash quickly became the latest flashpoint in the national immigration debate. Groups that want stricter controls on immigration cited Montano, who was free while awaiting a federal deportation hearing, as an example of a failed policy that allows illegal immigrants to stay in the United States.
"This guy would have been identified as being an illegal alien several violations and incarcerations ago, and he would be back in his home country," said Bob Dane, a spokesman for the Federation for American Immigration Reform, which wants lower levels of legal and illegal immigration. "He wouldn't be driving without a license and killing people."
Killed in the crash was Sister Denise Mosier 66, who was traveling to a five-day religious retreat at the Benedictine Sisters monastery in Prince William County with two other nuns, Charlotte Lange, 75, and Connie Ruth Lupton, 70. First Sgt. Kim Chinn of the Prince William County Police Department said the other two women are hospitalized in "pretty serious" condition.
The Benedictine Sisters of Virginia said in a statement that they were "dismayed and saddened that this tragedy has been politicized and become an apparent forum for the illegal-immigration agenda."
David Leopold, president of American Immigration Lawyers Association, agreed. He said the case was isolated and did not suggest that a large percentage of illegal immigrants drive drunk or commit crimes.
"The issue in this case is not that an undocumented driver was driving drunk. The issue is drunk driving, period," Leopold said. "There is not a problem in this country with any particular ethnic group. It is a national problem from state to state."
Montano, of Bolivia, was ordered held without bond during a Wednesday hearing, Ebert said.
Matt Chandler, a spokesman for the Department of Homeland Security, said Secretary Janet Napolitano has ordered an immediate review to determine why Montano was released after his second DWI conviction in 2008, when he served 20 days in jail.

The Gulf oil spill's cost comes into focus

NEW ORLEANS — Long after the cleanup crews and BP paychecks are gone, Gulf Coast fishermen will be dealing with dead oysters and a perception problem.
Salt marshes will struggle to regrow grasses raked by oil and digest stray pools of crude. Business owners will work to revive shuttered businesses and bruised economies in the wake of the Gulf of Mexico spill.
But the recovery is underway.
BP on Wednesday took a major step toward permanently capping the blown-out well and ending the 107-day disaster. Drilling mud forced down the well was pushing oil back into a reservoir 2.5 miles underwater for the first time since the Deepwater Horizon rig exploded April 20, killing 11 workers and unleashing the largest oil spill in U.S. history.
For many, Wednesday's news marked the beginning of the end of an ecological nightmare that saw more than 50 million gallons of crude escape into the Gulf — nearly five times the 11 million gallons that spilled from the Exxon Valdez tanker in Alaska in 1989, previously the nation's worst oil disaster.
In the Gulf, the footprint the spill leaves on the regional economy, the environment, political futures and the mental health of those closest to the disaster is likely to be felt for years to come.
A survey of 1,200 coastal residents by the National Center for Disaster Preparedness at Columbia University's Mailman School of Public Health found that more than one-third of children showed physical or mental effects of the spill, such as respiratory problems and depression, and nearly one-fourth of residents felt a need to relocate.
"There are a great deal of issues that are just beginning to get uncovered," says Irwin Redlener, the center's director and co-author of the survey.
BP is still working to clog the well for good. It may not be cemented and killed for a few more weeks. Increasingly, though, the broken wellhead appears to be lassoed under control.
Stopping oil from gushing into the Gulf had been the singular goal of BP engineers, Coast Guard officials and the thousands of fishers who were abruptly kept from their harvests this year. Now, there are lingering questions: How much longer will the fishers working on the cleanup be paid by BP? What effect will the nearly 2 million gallons of chemical dispersants sprayed on the spill have on fisheries? How will local tourism rebound?
"What we don't know and what we don't see are probably going to be the most determining factors for how soon we recover," says Rep. Charlie Melancon, a Louisiana Democrat who represents many of the affected areas.

Search This Blog

join here