5 Top Ways Stars Lose All Their Cash

Last week Gary Busey passed a mandatory online financial management course in an attempt to convince a U.S. Bankruptcy court he'll start sensibly managing his money.  The veteran actor recently filed for Chapter 7 bankruptcy. But in Hollywood, going broke is just about as as common as a leaked nude photos; just ask Toni Braxton, Larry Wilcox, Vince Neil, Mike Tyson, and Stephen Baldwin, all of whom have recently filed for bankruptcy. Not to mention Zsa Zsa Gabor’s husband, who was forced to put their Bel Air mansion on the market last year to pay the ailing star’s medical bills; Wesley Snipes, who was imprisoned for three tax-related misdemeanor convictions; and Nicolas Cage, who lost one of his homes to foreclosure and has been plagued by IRS issues. So how is it that some of the most well-paid people on the planet can end up with next to nothing? We talked to financial management experts and they ticked off the top five ways rich celebs lose it all (or close to it). 5. They have no idea how money management works.  “Most celebrities have extremely creative minds. But in my experience, the most creative folks tend not to want to spend time dealing with business issues,” tax and business expert Joseph M. Doloboff, Partner at Blank Rome LLP in Los Angeles told FOX411’s Pop Tarts column. But don’t famous folks hire financial planners and business managers to take good care of their millions? “Most of them do, but at the end of the day, these accounts are still in a celebrities’ name, which gives them ultimate control over their wealth,” said Certified Financial Counselor for Financial Advice for the Artist, Erin Elizabeth Burns. Which can mean big spending, big mistakes and… 4. Bad advice.  Pete Krainik, Founder and CEO of The CMO Club, a networking resource for top marketing executives, noted that some celebrities do not have the skill sets to identify and determine the right business/financial managers for their needs. “Because they don’t think of themselves as brands, they don’t put the efforts or plans in place to maximize their value for endorsement deals,” he explained. “They should have themselves significant additional revenue streams – it is not just about getting the next role, but getting the next deal.” But some such "additional revenue streams" can also run in the red.. Last year, the Las Vegas rendition of Beso – the restaurant/nightclub co-owned by Eva Longoria – filed for bankruptcy to restructure nearly $5.7 million in debt and other liabilities. Prior to that, the Jay-Z owned 40/40 sports bar in Sin City shut its doors a mere eight months after opening. Britney Spears’s southern-inspired Nyla Restaurant reportedly hit monetary blows before she also severed ties, and both Jennifer Lopez’s “Sweetface” clothing line and restaurant Madres went dark. 3. Theft and fraud.  Hollywood's highest profile people are actually human, which means they too are susceptible to being screwed by business managers, badly worded deals and corrupt advisors. Just ask Kevin Bacon and wife Kyra Sedgwick, who were taken to the cleaners by Ponzi schemer Bernie Maddoff. Doloboff also said prominent factors in a celeb’s financial crumbling is their tendency to bring "friends" -- or family -- into the fray as business partners or employees. “Many professional athletes and entertainers want to help their friends while simultaneously helping themselves,” he said. “The best advice is to refrain from doing business with friends. True friends don’t condition their friendship upon doing business together.” Comedian Dan Cook will probably adhere to that – in 2010, his half-brother Darryl McCauley was ordered to pay the comic $12 million in restitution after pleading guilty to embezzling funds from him. McCauley allegedly stole $12,500 a month as Cook’s business manager. Friends and fraud – double whammy! 2. Drugs, booze, and bad habits. Stars are known to fall when the temptations of drugs/alcohol/hard partying turns into a dangerous addiction. It can also be more than an expensive habit, as addiction often impacts other areas. “You are far more likely to make poor decisions when under the influence of drugs or alcohol. When you’re dealing with celebrities, the problem is that their support groups, (friends, family, entourages, et al), often consist of enablers,” explained Richard Taite, the Founder and CEO of rehab center Cliffside Malibu. “It comes as no surprise that a successful celebrity can face financial destitution if they are abusing drugs or alcohol and are left to their own devices.” 1. Ridiculous overspending. Last but not least, some beautiful yet broke folks just lead foolishly fabulous lives (we're talking to you, MC Hammer) and refuse to accept that fame (and its fortune) can be fleeting. “Most celebrities have luxuries such as a cook, a driver, a personal stylist, a personal assistant etc.,” said Burns. “They become accustomed to this lifestyle, but when their contract isn’t renewed, or when the films offers stop coming in, they are still living this life of luxury with the expectation that they will always be in demand.” Yes, sadly, not every Hollywood tale has a happy ending. But with some good financial advise, the ending doesn't have to be tragic.

At least four people, including three children, were killed, when a man on a scooter opened fire outside a Jewish school in Toulouse in southwestern France

At least four people, including three children, were killed, when a man on a scooter opened fire outside a Jewish school in Toulouse in southwestern France on Monday, officials said. The attack also left several injured, two of them seriously, and followed the killing of three soldiers in two separate shootings in the same region last week by a man who escaped on a scooter. BFM TV news channel said that the gun used in the attack at the Ozar Hatorah school was of the same calibre as that used in the soldiers’ shootings, but a spokesman for the interior ministry could not immediately confirm this. President Nicolas Sarkozy cancelled other appointments and was on his way to Toulouse on Monday morning, accompanied by Education Minister Luc Chatel and the president of the CRIF French Jewish association, Richard Prasquier. “I saw two people dead in front of the school, an adult and a child … Inside, it was a vision of horror, the bodies of two small children,” a distraught father whose child attends the school told RTL radio. “I did not find my son, apparently he fled when he saw what happened. How can they attack something as sacred as a school, attack children only sixty centimetres tall?” Several other people were injured, two of them seriously. A rabbi at the school, identified as Rahamim Sabag, told Israel’s channel two television that the dead were a 30-year old rabbi who taught at the school, the rabbi’s five-year-old son and two eight-year old children, one of them the daughter of the school’s principal. A spokesman for Israel’s foreign ministry, Yigal Palmor, expressed outrage at the killings: “We are following with great shock reports coming from Toulouse and we trust the French authorities will solve this crime and bring those responsible to justice.” A spokesman for the interior ministry said that security was being tightened at all Jewish schools in the country. About 50 investigators are already looking into the killings of two soldiers on Thursday in the town of Montauban, close to Toulouse, as they tried to withdraw money from a cash machine close to the barracks of the 17th parachute regiment. A third soldier was killed the previous weekend in Toulouse. Investigators had already confirmed on Friday that the same weapon had been used in both incidents.

Spain's Unicaja, Caja Espana savings banks merge

Spanish regional savings banks Unicaja and Caja Espana have merged following the government's recent requirement that banks raise substantially their provisions set aside to cover toxic real estate exposure. The merger, in which Banco Caja Espana-Duero (Banco Ceiss) is effectively absorbed into Unicaja Banco, creates a group with approximately (EURO)80 billion ($104.9 billion) in total assets and a turnover of (EURO)120 billion ($157.4 billion), according to a joint statement released late Friday. The deal must first receive Finance Ministry and central bank approval and would require (EURO)850 million ($1114.86 million) of state aid, which is added to (EURO)525 million ($688.59 million) already injected into Caja Espana in 2010 by the Bank of Spain's restructuring fund (FROB).

German taxpayer would be obliged to subsidise the wages of Lionel Messi and Cristiano Ronaldo.

 

When faced with the prospect of the Spanish government waiving the collective €752m debt the nation's football clubs owe to the country's tax authorities, the reaction in Europe last week was one of outrage. The German tabloid Bild even asked how long the German taxpayer would be obliged to subsidise the wages of Lionel Messi and Cristiano Ronaldo. What they meant was that while the European Union members bailed out the Spanish economy, successful Spanish clubs were failing to meet their own tax obligations. Strictly speaking, Real Madrid have no tax debt among the €170m debt that the club carry, but Barcelona owe €48m of their overall €364m debt to the Spanish taxman. Uli Hoeness, the outspoken president of Bayern Munich, got to the point rather more quickly when asked about the proposal to excuse Spanish clubs their tax debt. "This is unthinkable," he said. "We pay them hundreds of millions to get them out the shit and then the clubs don't pay their debts." It is a uniquely modern European dilemma, encompassing EU bail-out funds and the competitiveness of the continent's respective leading clubs, all of which ultimately adds another fiendishly complex element to the concept of Financial Fair Play, as proposed by Uefa president Michel Platini. It is further proof that while Spanish football is undoubtedly top dog in Europe, with five teams in the quarter-finals of the two Uefa competitions, it is not without problems. As The Independent's Pete Jenson reported in these pages on Saturday, a government report in Spain last week disclosed that the equivalent of £625m is owed by Spanish clubs to the country's public purse, with £353m of that due from 14 of the 20 clubs in the top division. This is not money owed to banks, investors or owners. It is owed to the Spanish people. On a sporting level it is "financial doping" at its very worse. On a social level it is nothing short of a disgrace in a country where youth unemployment currently runs at 50 per cent. Not all top Spanish clubs are culpable and it was reassuring to read in the breakdown of club debt by AS newspaper that Athletic Bilbao, the team of largely home-grown Basque stars who left English football spellbound with their schooling of Manchester United last week, do not owe the taxman a cent. So too Real Sociedad, Getafe, Villarreal and Sporting Gijon. On the other hand, Atletico Madrid, currently eighth in La Liga and drawn against Hannover 96 in the quarter-finals of the Europa League, owe the Spanish public purse €155m (£128m), more than any other club. The money from the €50m sale of Sergio Aguero to Manchester City last summer went straight to the tax authorities. Valencia, who play AZ Alkmaar in the same stage of the competition, owe €6m in unpaid tax. When Hoeness expressed German football's bitterness that their government is, indirectly, subsidising the success of Spanish clubs it is the likes of Hannover he was talking about. Atletico's big signing was Falcao from Porto last summer, a £33m signing financed by third-party ownership deals. Hannover bought Mame Biram Diouf from Manchester United. Enough said. No one would pretend that British football is the perfect financial model, especially given Rangers' and Portsmouth's debts to HMRC. Even the Germans have had their problems with Borussia Dortmund and Schalke. But unpaid taxes at a time when public services are being cut and jobs lost are particularly repugnant. Real Betis, Real Zaragoza, Racing Santander, Levante and Mallorca (denied a place in last season's Europa League because of their finances) owe a total of €118m to the Spanish tax authorities between them. There are also suggestions that unpaid social security contributions by some Spanish clubs rival those eye-watering figures for unpaid tax. In the past, Spanish football has been protected by the assumption that punishing badly-run clubs would cause such a backlash against government by voters that it would not be politically expedient. There is no points penalty in Spain for going into the equivalent of financial administration as there is in England. But attitudes are changing. The governing political group Partido Popular has described the situation as "intolerable". The government was forced to disclose the figures of unpaid tax because of an official request by Caridad Garcia of the Izquierda Unida (IU) party. A spokesman for IU, José Luis Centella, made the connection last week between the financial hardship felt by the Spanish people and the clubs' failure to pay. "This is bad news for all the people who have lost homes and suffered from the cutbacks while there is this tremendous generosity towards football." Wisely, the Spanish sports minister Miguel Cardenal announced last week that the government had dropped any consideration of giving football clubs a clean slate on their tax debts. There has even been a call from the centre-left party PSOE to ban clubs with tax debts from competing in the league, a rule that, already in place in Italian football, would change the face of La Liga overnight. Were the Spanish tax authorities to call in their debts tomorrow, Barcelona would surely be able to find, or borrow, the €48m they owe. Atletico, on the other hand, would find themselves in the kind of dire situation currently enveloping Rangers. There is a lesson for English football that in the risky game of investment and borrowing that most clubs enter as they attempt to fulfil the ambitions of supporters and owners, there are certain obligations that are non-negotiable. Football clubs command such loyalty and affection that they are too often cut slack, but, as the situation in Spain is starting to show, there is always a limit. Ridicule of Richards the last straw Down the years, Sir Dave Richards has given every appearance of being invulnerable to criticism or error of judgement. He has survived adversaries in the Football Association such as Lord Triesman and Ian Watmore in recent years. The financial problems of Sheffield Wednesday, where he was chairman, do not seem to have had an impact on his reputation. He walked out on the 2018 World Cup bid in a huff and it all blew over. Which makes it all the more incredible that an ornamental fountain, and a slightly unhinged but largely irrelevant speech on football, should prove his undoing. It just goes to shows that a divisive figure in football administration can survive a great deal but once their mistakes start to make people laugh – it's over. Will City seize their chance to get Mourinho? When Manchester City meet Chelsea on Wednesday, the shadow of one man falls over both clubs. Jose Mourinho is the last card that the most ambitious football club owners can play. If all else fails, then give Mourinho the job and if that does not bring success then you really are out of options. In Spain, the mood is that Mourinho may stay at Real Madrid in the penultimate year of his contract next season or he may go back to England if the right job presents itself. Is that Chelsea or could it be City? If Roberto Mancini fails to win the title this season and Mourinho is willing to come then it places an idea in the heads of City's owners. It is not as if he is available every summer.

S SPAIN THE NEXT GREECE? NATION SINKS FURTHER INTO MIRE

Savage cuts to the Greek health service have seen the country's HIV and Tuberculosis rates soar - sparking fears it is becoming a third world nation.

Aid agencies said the cutting of hospital budgets by an astonishing 40 per cent had also led to a sharp rise in the number of citizens being diagnosed with Malaria.

In the south, they said, it is reaching near endemic levels not seen since 1970s.

The scrapping of needle exchange services has seen the number of HIV and Aids sufferers in central Athens rise by 1,250 per cent in 2011 alone.

There are more prostitutes on the streets selling their bodies to make ends meet, while heroin addicts are finding it harder to come by anti-retroviral treatments.

There is also the first instances ever of the two illnesses being transmitted between mother and child - something usually equated with sub-Saharan Africa and not Europe.

Médecins sans Frontières Greece's Reveka Papadopoulos said the health service cuts, which saw widespread job losses, were putting social services 'under very severe strain'.

She added: 'If not in a state of breakdown. What we are seeing are very clear indicators of a system that cannot cope'. She said the 40 per cent cuts were on top of a 24 per cent increase in 2011 in demand for medical services.

This, she said, was 'largely because people could simply no longer afford private healthcare. The entire system is deteriorating'.

On the rise: The number of HIV and Aids sufferers in Greece is soaring

 

She added: 'There has also been a sharp increase in cases of tuberculosis in the immigrant population.

'Cases of Nile fever - leading to 35 deaths in 2010 - and the reappearance of endemic malaria in several parts of Greece.

 

 

 

'The simple fact of the reappearance of malaria, with 100-odd cases in southern Greece last year and 20 to 30 more elsewhere, shows barriers to healthcare access have risen.

'Malaria is treatable, it shouldn't spread if the system is working.'

Good news: Greece is set to receive the next tranche of eurozone bailout cash next week

The news comes as it was revealed Greece will get €5.9billion in new bailout money on Monday. It is the first slice of a new rescue package meant to keep the country afloat while it overhauls its economy.

Greece stands to receive a total of €172.7 billion from its partners in the 17-nation eurozone and the International Monetary Fund until 2016.

IS SPAIN THE NEXT GREECE? NATION SINKS FURTHER INTO MIRE

Spain now owes more money than it has done in the last 20 years, the Bank of Spain said.

For 2011 the country's public debt was 68.5 percent of gross domestic product, up from 61.2 per cent in 2010.

While it is a relatively low ratio, compared with its 16 eurozone peers who have an average 87.7 per cent, it has almost doubled from 36.3 per cent in 2007.

This is because there is a lack of economic impetus since the credit-and-construction bubble burst in 2008.

Spain has been ordered by the European Commission to cut its budget shortfall from 8.5 per cent of GDP in 2011 to 5.3 per cent this year and 3 per cent in 2013.

It has forced Prime Minister Mariano Rajoy to hunt for savings worth around €60billion.

This year's target is a compromise after Rajoy defied Brussels by ditching a much tighter goal of 4.4 per cent of GDP agreed by the previous government.     

But the task will be made tougher as the economy is thought to already be in its second recession in three years, with the government expecting output to shrink 1.7 per cent in 2012.

The cuts has led to the closure of 27 publicly run companies, some of which were duplicates - such as a water company.

Others included a loss-making entity tasked with stimulating Spain's small housing rental market and one created to back the Barcelona Olympics in 1992.    

The central bank also said Spain's 17 autonomous regions, blamed for the lion's share of the fiscal slippage last year, ran debt up by 17.3 per cent in 2011 to €140billion.

The data showed the country's wealthiest region of Catalonia, was the most indebted, closely followed by Valencia.  Both had debt-to-GDP ratios of around 20 per cent compared to an average of 13.1 per cent.    

Tighter controls over regional budgets imposed by the central government aim to bring their spending back under control this year, even if analysts retain doubts over their future compliance and banks' balance sheets.    

The sum includes money left over from the country's first rescue package and a new €130billion programme.

The disbursement was approved earlier this week, said Matthias Mors, the European Commission representative to the troika - the debt inspectors from the European Union, the European Central Bank and the IMF who are managing the Greek bailout.

The bailout, on its own, will not be enough to ease the country's financial woes.

An EU report released today said Greece must make a sustained effort to attract future investment and support export-led growth as it seeks to recover from a recession that is now in its fifth year.

But the report, prepared by the European Commission and the ECB, also said a bond swap deal with private creditors has made the country's debt load far more sustainable in the long-term.

The news has had a positive effect on European financial markets.

The FTSE 100 is today 0.45 per cent up at 5,967.43; France's CAC 40 is 0.54 per cent up at 3,599.37; and Germany's DAX is 0.33 per cent up at 7,168.37.

The report projects that, assuming interim targets are met, Greece's debt-to-GDP ratio will decline to below 117 per cent in 2020 and to below 90 per cent in 2030.

It was as high as 160 per cent of GDP before the debt relief deal was agreed with private creditors.

While progress has been made in reforming the economy, significant concerns remain, including inflation, a lack of credit available to households and business, and the need to regain competitiveness by reducing labor costs, Mors said.

'One of the priorities of this second program is the recapitalization of banks,' Mors said.

For one thing, bank deposits have fallen, he said. For another, the agreement to write down private debt 'will leave holes in the balance sheets of banks, because they held government bonds,' he added.

He said the new program includes €50 billion for bank recapitalisation. 'This is an enormous amount,' he said. Mors also warned that significant more belt-tightening lies ahead.

'The target for this year is a primary deficit of 1 per cent,' he said, referring to the budget balance before interest payments. 

'And the programme target for 2014 is a surplus of 4.5 per cent. And therefore people have to be aware that, in terms of fiscal adjustment, there's still a long way to go.' He said the Greek government will have to identify before this summer how it plans to close that gap.

Premier League footballer Fabrice Muamba is in intensive care after collapsing during an FA Cup tie.

 

 The 23-year-old was said to be critically ill in the London Chest Hospital after falling to the ground at White Hart Lane in front of millions of television viewers watching the sixth round tie between Tottenham Hotspur and his club, Bolton Wanderers. Outside the hospital, the club's manager Owen Coyle said the following 24 hours were "absolutely crucial" and urged people to pray for the player's recovery. A Bolton spokesman said: "Bolton Wanderers can confirm that Fabrice Muamba has been admitted to the heart attack centre at London Chest Hospital where he is currently in a critically ill condition in intensive care. No further information will be issued at this stage. The club has requested the media to respect his family's privacy at this time." A packed White Hart Lane looked on with a worldwide audience watching live coverage on ESPN as the Trotters midfielder suddenly fell to the floor. Confusion turned to horror as medics sprinted on to the pitch to begin resuscitating the young man. Players looked shocked and watched in disbelief as the former England Under 21 star was treated with a defibrillator for several minutes before being stretchered off wearing an oxygen mask and taken to hospital. World Cup referee Howard Webb abandoned the game. As the message was relayed around the stadium with the score at 1-1, the fans applauded and chanted Muamba's name. Premier League chief executive Richard Scudamore said: "The thoughts of the Premier League, its clubs and players are with Fabrice Muamba, his family and Bolton Wanderers. We would like to praise the players, match officials, coaching staff and medical teams of both clubs at White Hart Lane for their swift actions in attending Fabrice. "The league would also like to commend the compassion shown by the fans of Bolton Wanderers and Tottenham Hotspur. We hope to hear positive news about Fabrice who is and has been a wonderful ambassador for the English game and the league at Arsenal, Birmingham City and Bolton Wanderers." Manchester United star Rio Ferdinand wrote on Twitter: "Come on Fabrice Muamba, praying for you." England striker Wayne Rooney wrote: "Hope fabrice muamba is ok. Praying for him and his family. Still in shock." Muamba's team-mate Stuart Holden, added: "Still praying for Fab, the guy is a fighter on and off the field. We love you bro."

The former chief reporter of the News of the World was arrested yesterday by police investigating the phone hacking scandal, on suspicion of intimidating a witness.

Neville Thurlbeck, 50, who was also news editor on the defunct Sunday tabloid, was detained by appointment at a central London police station by officers from Operation Weeting a day after his former editor, Rebekah Brooks, was arrested with five others on suspicion of conspiring to pervert the course of justice. He was later released on bail. Yesterday's arrest came as James Murdoch used a letter to the House of Commons media select committee to distance himself once more from any wrongdoing inside News International (NI). He blamed two former trusted lieutenants, Colin Myler and Tom Crone, claiming there were "inconsistencies" in their evidence to MPs. Mr Thurlbeck has been a central figure in the unfolding phone-hacking saga since being named in the so-called "for Neville" email. This showed voicemail interception went beyond a single "rogue" reporter at the NOTW. He was arrested last year on suspicion of conspiring to hack phones and eavesdropping voicemail messages. During recent months, he has adopted a higher media profile, with broadcast appearances and the launch of a blog commenting on developments in the crisis enveloping NI. In a blog entry last week, Mr Thurlbeck revealed how Will Lewis, a key member of News Corp's Management and Standards Committee, which has been marshalling millions of internal NI emails to Scotland Yard, had hired a private security company to provide security at his home. Mr Thurlbeck published the name of the security company, noting that it had spent several hours at Mr Lewis's home, and gave the name of the street where the NI executive lives. In a subsequent blog, Mr Thurlbeck, who is suing his former employer for unfair dismissal, said his story had prompted approaches from lawyers and a public relations company representing Mr Lewis, asking for the removal of his posting. He claimed it was suggested to him that the details he had provided about the security company "somehow implied I had put [Mr Lewis's] home under surveillance. Bonkers!". He added: "I accepted their point that printing the name of his street was distressing to his family and took this down immediately as I have absolutely no wish to do this. Although I have not been asked to do so, I would like to apologise to Mrs Lewis for any distress." A spokesman for the Management and Standards Committee declined to comment last night on Mr Thurlbeck's arrest. Meanwhile Mr Murdoch has sought to influence the parliamentary report into phone hacking, which is expected to be published before the Easter recess, by telling the committee that he did not mislead them, that he never tried to hide wrongdoing at the NOTW, and that when he did ask questions about what was going on, he was given "false assurances" by senior executives at Wapping. In a personal letter to John Whittingdale, chair of the media select committee, the former executive chairman of NI initially takes responsibility "for not uncovering wrongdoing earlier". However, the limited apologetic tone of his seven page letter, in which he accepts that it "would have been better if I had asked more questions", also contains evidence of anger directed at former trusted lieutenants inside NI. He says he relied too much on people who assured him that investigations had been carried out and who claimed that further inquiries were unnecessary. The former NOTW editor, Colin Myler, and News Group Newspaper's former legal manager, Tom Crone, are named repeatedly and described as offering "inconsistencies" to Parliament, while Mr Murdoch says his own evidence "has always been consistent". The letter states: "The truth is that incomplete answers and what now appears to be false assurances were given to the questions that I asked." In summaries of earlier evidence to the committee, he says he was "never intimately involved with the workings of the NOTW"; and on key meetings that discussed how senior executives were dealing with the emerging hacking culture, he says: "I was given a narrower set of facts than I should have been given..." He also says that if "Messrs Crone and Myler" had given him the highly critical private opinion offered in 2008 by NI's leading counsel, Michael Silverleaf QC, which described "widespread wrongdoing", then he would have "acted differently". He ends his letter by repeating that he neither knew about, nor attempted to hide, wrongdoing, and tells MPs: "The evidence does not support any other conclusion." James Murdoch: What he wrote "I take my share of responsibility for not uncovering wrongdoing earlier. However, I have not misled Parliament. I did not know about, nor did I try to hide, wrongdoing. I do not believe the evidence before you supports any other conclusion..." "It has been said I did not ask enough questions. However, the truth is that incomplete answers and what now appears to be false assurances were given to the questions that I asked."

James Murdoch pleads innocence ahead of committee report

James Murdoch has written to an influential parliamentary committee, investigating a phone hacking scandal at his company, to apologise and restate his innocence ahead of a potentially damaging report that could determine his future in Britain. The 39-year-old son of Rupert wrote to the committee to accept responsibility for failing to uncover the criminal behaviour, which has damaged the reputation of the News Corp media empire, British politicians and police. At stake is his role as chairman of British pay-TV group BSkyB and potentially his future at News Corp, where he had for years been marked out as the heir apparent to his father Rupert as chief executive.   "I did not know about, nor did I try to hide, wrongdoing," he said in the letter published by the committee on Wednesday. "Whilst I accept my share of responsibility for not uncovering wrongdoing sooner, I did not mislead parliament and the evidence does not support any other conclusion." Analysts and some shareholders believe Murdoch would struggle to remain at BSkyB if he is singled out for particular criticism as it could impact his ability to negotiate with the government and regulators on behalf of one of Britain's most powerful media firms. The all-party committee summoned James and his father Rupert to a hearing at the height of the scandal last July, for a three-hour often testy grilling that was watched live by millions on television in both Britain and the United States. Just four months later, the younger Murdoch had to return to answer further detailed questions over what he knew and when after two former colleagues publicly contradicted his evidence. News Corp's British newspaper arm News International had long argued that the hacking of voicemails to generate stories was the work of a single rogue reporter and private investigator who had already gone to jail for the crime. But as more people came forward to accuse the company of hacking their phones, that defence crumbled and attention turned to those at the top of the company and it was asked why they had not pushed further to discover the truth. "Clearly, with the benefit of hindsight, I acknowledge that wrongdoing should have been uncovered earlier," Murdoch said in his letter. The parliamentary committee had originally planned to publish its report before Christmas but due to the sensitivity of the material it is having to write the document by committee and is now aiming for the Easter holiday in April.

Goldman Sachs director quits 'morally bankrupt' Wall Street bank

 

A Goldman Sachs director in London has resigned after publishing a devastating open letter accusing senior staff of being "morally bankrupt" and bent on extracting maximum fees from clients by offloading unsuitable investment products. Greg Smith, who has left his post as executive director of the firm's equity derivatives business in Europe, claimed that chief executive Lloyd Blankfein and president Gary Cohn have "lost hold of the firm's culture on their watch". He added that "this decline in the firm's moral fibre represents the single most serious threat to its long-run survival".. Smith's charges, which were swiftly denied by the bank, were published in Wednesday's New York Times and raised questions about the firm's relationship with existing clients, whom Smith claimed were referred to as "muppets". Lord Oakeshott, the Liberal Democrat peer and his party's former Treasury spokesman in the Lords, said the matter raised questions about any relationship between the UK government and Goldman. Smith, who joined Goldman as a summer intern and worked at the firm for 12 years, first in New York and then in London, claimed managing directors made their remarks about "muppets" in internal email. "I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It's purely about how we can make the most possible money off them." Selected as one of 10 people, out of a firm of 30,000, to appear in a Goldman recruiting video which is played on college campuses around the world, Smith has hired and mentored new recruits and managed a summer intern programme for the bank. "I knew it was time to leave when I realised I could no longer look students in the eye and tell them what a great place this was to work," he wrote. He said junior analysts are absorbing a culture in which the most important question is "how much money did we make off the client?", and that hearing talk of "muppets," "ripping eyeballs out" and "getting paid" will not turn them into "model citizens". "Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and are not currently an axe murderer) you will be promoted to a position of influence." In response, Goldman Sachs denied that Smith was giving an accurate view of life at the company. "We disagree with the views expressed, which we don't think reflect the way we run our business. In our view, we will only be successful if our clients are successful. This fundamental truth lies at the heart of how we conduct ourselves," the bank said. Fast-track to promotion Smith claims to have advised the five largest US asset managers, Middle East and Asian sovereign wealth funds, and the world's two largest hedge funds. His letter did not name them, but Bloomberg ranks Man Group and Bridgewater Associates as the biggest hedge funds. The LibDem peer Oakeshott said: "We know in the City that Goldmans help themselves before their clients. Now here's the proof. Greg Smith says you get promoted there if you make enough money for the firm and you are not an axe murderer - and the people of Greece and the rest of the eurozone are paying the price after Goldmans cooked their books and Greece joined the euro at an unsustainably high exchange rate. Until this culture is stamped out, Goldmans are not fit and proper to receive a penny of British taxpayers' money or advise our government in any way." Goldman is among the gilt-edged market makers which help to facilitate trading in UK government bonds. Smith claims the fast-track to a Goldman promotion involves persuading clients to invest in stocks or other products "that we are trying to get rid of because they are not seen as having a lot of potential profit"; getting clients to trade "whatever will bring the biggest profit to Goldman" – referred to internally as "hunting elephants" and securing a job trading "any illiquid, opaque product with a three-letter acronym". Goldman has lost the "secret sauce" that allowed it to endure for 143 years and is at risk of losing its clients' trust, wrote Smith: "Goldman Sachs is one of the world's largest and most important investment banks and it is too integral to global finance to continue to act in this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for."

Escaped prisoner Anthony Downes arrested and held in Amsterdam

 

Anthony Downes, who was arrested in Amsterdam, escaped from a prison van while being transported from HMP Manchester to Liverpool Crown Court in July last year. He had been facing trial for conspiracy to possess firearms with intent to endanger life and conspiracy to cause damage with intent to endanger life. He was convicted in his absence at Woolwich Crown Court and is due to be sentenced at the end of this week. Downes, 26, featured as part of Crimestoppers’ latest Operation Captura Campaign in October 2011, which seeks to locate wanted fugitives believed to have fled to Spain, who are wanted by UK law enforcement agencies. Lord Ashcroft, KCMG, Founder and Chair of Crimestoppers, said: “This is yet another example of how criminals on the run will eventually be caught and I am delighted to hear that this individual has been arrested. “Crimestoppers is seeing huge success with its fugitive campaigns and the fact that we now have 48 arrests out of 65 appeals from our Captura campaign proves that wanted criminals will eventually be brought to justice.” Deputy Chief Executive, Dave Cording, added: “This arrest comes less than six months after the fifth anniversary of Operation Captura. “Through close collaboration with the Spanish police, SOCA and the public, these individuals have nowhere to hide and those still on the run should think about handing themselves in before they are caught next.” This latest arrest brings the total number of those located to 48 out of 65 appeals since the campaign launched in October 2006. Operation Captura is the successful multi-agency campaign which identifies serious criminals believed to be on the run in Spain.

Expats in Spain warned of faulty hip replacements

Therapist Carol Duquemin, 59, decided to act after being forced to have her hip replacement removed after just four months. Duquemin – whose ordeal came after the manufacturer recalled the faulty product in 2010 – has teamed up with free health care service Medilink to provide advice and support to expats. “Up to 9,000 people in Spain could have been affected by the implants,” Duquemin said. “People are still not aware of the problem and the danger it poses to their health. “The law says you have to have it removed in the country where you had the operation but some hospitals here are not giving the help and information that they should, and it is a big operation that causes a huge trauma to the body.

Rebekah Brooks and husband arrested in phone hacking inquiry

REBEKAH Brooks and her racehorse trainer husband are among six suspects arrested today by detectives investigating allegations of phone hacking at News International. The former News International chief executive and Charlie Brooks were arrested at their Oxfordshire home on suspicion of conspiracy to pervert the course of justice, sources said. Police are searching several addresses after dawn raids also took place in London, Hampshire and Hertfordshire, Scotland Yard said. Ms Brooks, a former editor of The Sun, had been on bail after being questioned by detectives last summer on suspicion of phone hacking and corruption. Today’s arrest comes after her lawyer, Stephen Parkinson, said evidence given by Sue Akers at the Leveson Inquiry had brought “much prejudicial material” into the public domain.

Stalking to become a crime for 1st time with offenders facing up to 5 years in jail

Stalking is to become a crime for the first time, with offenders facing jail for up to five years and unlimited fines. After decades of debate, David Cameron will announce today that the Government is to change the law to protect tens of thousands of victims let down by the system. Currently, police must wait until  suspects commit another crime – such as harassment or breaching a restraining order – before they act. Scroll down for video Beauty consultant Clare Bernal, 22, was shot dead in Harvey Nichols by her former boyfriend Slovakian Michael Pech, 30, who she had dated for just two weeks. Pech on bail was awaiting sentence for breaching a restraining order and harassment of Clare when he shot her four times before turning the gun on himself As a result, only 2 per cent of stalkers are jailed, with the maximum sentence being six months if pursued under the Protection from Harassment Act. Mr Cameron will unveil plans to reform the law at Downing Street alongside Tricia Bernal, whose daughter Clare was shot dead by her former boyfriend in a Harvey Nichols store in Knightsbridge.     Also at No 10 today will be Claire Waxman, who was subjected to an eight-year campaign of harassment by Elliot Fogel. The former Sky Sports news producer stalked his ex-classmate for nearly a decade, Googling her name 40,000 times in a year and posing as a prospective parent at her child’s nursery. He was finally jailed for two years after breaching a restraining order. Tricia Bernal, pictured with her daughter Clare who was shot dead by Pech on September 13, 2005, will appear alongside David Cameron when he announces changes to the law today Mr Cameron will say today: ‘Stalking is an abhorrent crime. It makes life a living hell for the victims – breaking up relationships, forcing the victims to move house, making them feel they are being watched 24 hours of the day. ‘That is why we are criminalising stalking, to make sure justice is done, protect the victims and show that stalking is a crime.’ A Downing Street source added: ‘Stalking will carry a sentence of six months and stalking with violence a maximum of five years.’ Cross-party MPs who examined the existing law concluded it was not fit for purpose. Even stalkers  who had broken into victims’ homes or threatened to kill them escaped with community punishments and suspended sentences. The British Crime Survey suggests 120,000 people are stalked a year, with many claiming their concerns are not taken seriously by the authorities.   Some stalkers who continually flout restraining orders go on to murder their victims, according  to probation officers’ union Napo. CLARE BERNAL WAS SHOT FOUR TIMES BY HER  STALKER Beauty consultant Clare Bernal, 22, was shot dead by a stalker she briefly dated while working at the Knightsbridge Harvey Nichols store. Clare dated 30-year-old Slovakian Michael Pech, a former security guard at the department store, for just three weeks. But after they broke up Pech started following her, pestering her with phone calls, standing outside her house and bombarding her with text messages. Her mother Tricia Bernal has told how Clare felt she had no where to turn, couldn't sleep at night and became physical exhausted from the constant harassment.    He was arrested for breaking a restraining order and found guilty of harassment but while awaiting sentence he went to Slovakia and bought a gun. On September 13, 2005, just as Harvey Nichols was due to close, he walked up behind Clare and shot her four times in the head before turning the gun on himself. Mrs Bernal, from Tunbridge Wells, last night welcomed moves to strengthen laws against stalkers to prevent anyone suffering the way her daughter did.

Police divers search for head and limbs of Gemma McCluskie

Frogmen from Scotland Yard's Marine Support Unit are in Regent's Canal in Hackney, east London, where the torso was found this week. Ms McCluskie's brother Tony is thought to have been arrested yesterday at his home in Bethnal Green, east London, where he lives with his mother and where his sister disappeared from last week. His mobile phone number was among those that appeared on a missing person's poster he himself helped circulate around the local area when Ms McCluskie disappeared. The limbless corpse was dragged from Regent's Canal by the Metropolitan police, with sources indicating it had been identified as 29-year-old Ms McCluskie. Relatives and former co-stars were said to be 'fearing the worst' while awaiting official results of forensic tests. Police sources said the unclothed body's arms, legs and head had been hacked off before it was found floating in the waterway. 'At this early stage officers believe they know the identity of the victim but must await further forensic tests before formal identification can take place,' a Met spokeswoman said. 'Police were initially contacted by a member of the public who had noticed something suspicious floating in the water. The torso was recovered by divers from the Met's Marine Support Unit (MSU) and additional searches are due to be carried out in the water.' The actress, who played Kerry Skinner for 30 episodes in 2001, had been missing since March 1, sparking a frantic search. Past and present cast members on the flagship BBC1 soap including Martine McCutcheon, Brooke Kinsella and Natalie Cassidy had appealed for information about the actress via Twitter and other social networking websites. Brooke Ms Kinsella tweeted: 'Please get in touch if you have seen her.' Ms McCluskie's brother Danny said her family was 'going out of our mind with worry' after she disappeared from her home in Bethnal Green last week. 'Her phone has been switched off since Thursday afternoon,' he said. 'We've not heard from her.' More than 100 people helped carry out a search for Ms McCluskie, with posters being put in shops and pubs while leaflets were handed out. A statement from Scotland Yard issued after the body was found said: 'A body was found in Regents Canal near Broadway Market in East London at 2.40pm. 'Enquiries are underway to establish the identity of the deceased. A post-mortem will be scheduled to ascertain the cause of death. 'Pending that post-mortem we will be treating the death as unexplained.'

Man Held After Headless Torso, Feared To Be EastEnders Actress Gemma McCluskie Is Found In Canal

The brother of former EastEnders actress Gemma McCluskie has been arrested after a headless torso believed to be missing 29-year-old was dragged from a canal in east London, Sky News understands. Tony McCluskie remains in custody at an east London police station, sources say. Police have not yet confirmed the identity of the suspect The limbless body was discovered near to the Broadway Market stretch of Regent's Canal in Hackney at 2.40pm yesterday. "Police were initially contacted by a member of the public who had noticed something suspicious floating in the water," the Met Police said in a statement. "The torso was recovered by divers from the Met's Marine Support Unit and additional searches are due to be carried out in the water." Relatives and co-stars of 29-year-old Miss McCluskie were said by sources to be "fearing the worst", as Scotland Yard carried out forensic tests on the remains. Miss McCluskie starred in the soap as Kerry Skinner on more than 30 occasions in 2001. Her character arrived in Walford as a friend of Zoe Slater and the great niece of the late Ethel Skinner. She briefly dated Robbie Jackson and got him to propose to her. Brooke Kinsella turned to Twitter to appeal for help in finding Miss McCluskie Miss McCluskie disappeared from Bethnal Green, east London, last week. Friends had been carrying out searches in the area and handing out leaflets. Co-stars Brooke Kinsella and Natalie Cassidy both appealed for help finding her on Twitter. Kinsella, who has become a prominent anti-knife crime campaigner since her brother Ben was murdered in 2008, had tweeted: "Gemma McCluskie has been MISSING from Bethnal Green since Thursday please get in touch if you have seen her." Cassidy, who played Sonia in the soap, also posted on the website: "Gemma McCluskie, missing since Thurs, if u have sn her/have any info PLS contact @CarlyKarma ... #FindGemma." Officers believe they know the identity of the victim but are awaiting further forensic tests before formal identification can take place. The man being questioned by police is understood to be known to Miss McCluskie. He remains in custody at an east London police station. Detective Inspector John Nicholson, who is leading the murder inquiry, has appealed for witnesses.

Danniella Westbrook, as we all know, had such a huge cocaine problem that she lost the septum of her nose

Danniella Westbrook, as we all know, had such a huge cocaine problem that she lost the septum of her nose (she spent £400 a day on it for ten years, which is totally ridiculous and who knew EastEnders paid so well?).

“I was always in clubs and everyone was doing coke and it was glamorous, except, obviously, it wasn’t at all,” she said about her addiction.

Although she stopped powdering her nose 11 years ago after her third stay in rehab, Danniella still gets a lot of stick about her appearance and a couple of weeks ago when she went to the Pia Michi fashion party, she was the subject of some online abuse commenting on how much she’d aged.

 

Splash News 

 

Danniella has now admitted that her drug abuse has led to her premature ageing, but she says she’s just happy to still be here.

“I’m 38 and I couldn’t have gone through all those years of drug addiction and come out of it unscathed,” she told Closer magazine. “It’s aged me and it’s done things to my face, but I’m lucky to be alive.

“If judging me and saying I look old makes people feel good about themselves, then let them go ahead – I don’t care anymore.”

Part of the reason Danniella doesn’t care anymore, is thanks to becoming a Christian two years ago and the support of her fellow church goers.

But she admits to struggling with her weight recently and says since returning to the UK after spending two years in California with her family, she’s been eating more due to the colder weather (we feel your pain).

 

Was Danniella trying to detract from her lack of septum by other means here? ProbablyPA 

 

Danniella’s determined to lose the pounds naturally though, despite being a fan of plastic surgery (she’s had SIX boob jobs!). But she is planning on having some help in the face department, thanks to a recent meeting with a certain Amy Childs.

“I met Amy recently and she is lovely. She invited me to her salon in Brentwood and I think I’m going to go for a bit of Botox – just a little tightening here and there.”

We have a overwhelming desire to say, “babe”.

Sheen's ex-wife charged with cocaine distribution

Charlie Sheen's ex-wife has been charged in Colorado with possession and distribution of cocaine stemming from her arrest in Aspen. Brooke Mueller was arrested by police on Dec. 3 after a woman reported being assaulted at a nightclub. Pitkin County chief deputy district attorney Arnold Mordkin said Friday that Mueller has also been charged with third-degree assault. Both drug charges are felonies. Possession with intent to distribute is the most serious and carries a penalty between four to 12 years. Conviction on the possession charge could result in up to 18 months behind bars. Mueller has vowed to fight the charges. Sheen and Mueller divorced last year after Sheen was arrested on suspicion of assaulting her in 2009. He pleaded guilty to misdemeanor assault and completed his probation in 2010.

Ex-drug prosecutor who handled Las Vegas celebrity cases gets 9 months in jail in crack case

 

A former top Las Vegas drug prosecutor who handled the high-profile Paris Hilton and Bruno Mars cocaine possession plea deals was sentenced Monday to nine months in county jail in a felony crack possession case. Former Deputy District Attorney David Schubert apologized to the court for what he called “a tragedy,” and then stood silently as a state court judge berated him as “a disgrace to his oath as a prosecutor and a lawyer.” 0 Comments Weigh InCorrections? Personal Post (Las Vegas Metropolitan Police Department/Associated Press) - This undated police booking photo released by the Las Vegas Metropolitan Police Department showes former Deputy District Attorney David Schubert. Schubert a former top drug prosecutor who handled the Paris Hilton and Bruno Mars cocaine possession plea deals in Las Vegas has been sentenced to nine months in jail in his own felony cocaine possession case. Clark County District Judge Carolyn Ellsworth also said that the terms of a plea deal that could have gotten Schubert probation and a chance to clear his record were “offensive.” “I’m not going to give you the special treatment,” the judge said. Police arrested Schubert in March 2011 after they watched another man get out of Schubert’s car, go into an apartment complex and return. Officers found Schubert with a $40 rock of crack cocaine and confiscated an unregistered 9 mm handgun from his car. Schubert once handled Clark County’s highest-profile drug prosecutions as the district attorney office’s liaison to a federal drug task force. Hilton, 30, was arrested after police said 0.8 grams of cocaine fell out of her handbag following a Las Vegas Strip traffic stop in August 2010. The celebrity socialite received a year of probation on misdemeanor cocaine possession and obstruction charges. She successfully completed probation last fall. Mars, 26, was cleared in January of a felony cocaine possession charge after staying out of trouble for a year and meeting other conditions of a plea deal. The Grammy-winning pop star, whose real name is Peter Hernandez, acknowledged in court in February 2011 that he had 2.6 grams of cocaine after a performance at a Hard Rock Hotel & Casino nightclub. Schubert resigned from the prosecutor’s office after his arrest and underwent two months of inpatient substance abuse counseling. The 48-year-old has been undergoing outpatient alcohol and drug counseling since May, and has been practicing criminal defense law in some of the same courtrooms where he was a prosecutor for 10 years. Schubert pleaded guilty to a felony charge of unlawful possession of a controlled substance not for sale. The conviction could threaten his law career, depending on a review by the State Bar of Nevada and action by the state Supreme Court, bar official Phil Pattee said. The judge ordered Schubert to surrender March 12 to begin his jail sentence. Defense attorney William Terry said he may appeal the sentence or ask the judge to take the rare step of setting it aside.

Kathryn Fuller, who barely survived taking contaminated cocaine that killed her 'Amazing Race' producer boss, is likely to be arrested and prosecuted by police

Kathryn Fuller, who barely survived taking contaminated cocaine that killed her 'Amazing Race' producer boss, is likely to be arrested and prosecuted by police in Uganda when she is released from the hospital. 

Police spokesman Asuman Mugyenyi said Monday that Miss Fuller is being treated as a witness and suspect after she was found unconscious on the floor of her hotel February 18 alongside Jeff Rice, who died.

The announcement casts doubt on her ability to fully recover from paralysis that has left the right side of her body limp. Her father said she must return home to South African for medical treatment.

'Suspect and witness': Kathryn Fuller is subject to arrest in Uganda when she is released from the hospital, where she is recovering from taking contaminated cocaine

Bad drugs: Jeff Rice (left) has produced episodes of 'The Amazing Race' and other shows for American TV. He was working on a film in Uganda when he and Miss Fuller (right) took cocaine laced with fatal additives

'Ask people to pray that we come home,' Stuart Fuller, her father, told The Mercury newspaper.

Mr Fuller has been staying in the Ugandan capital of Kampala since Miss Fuller was discovered ill. 

Mr Rice, American TV and film producer, was found dead bleeding from his mouth and nose after taking the cocaine in hotel room he and Miss Fuller were sharing.

The pair were in Uganda working on a film Mr Rice was producing. 

 

 

 

Miss Fuller is currently recovering at a clinic in Kampala, but her father said she needs medical facilities and expertise only available in South Africa. 

'She can regain the use of her right side, but needs to come to South Africa for treatment and to recuperate,' Mr Fuller said.

However, Miss Fuller must likely face charges of consuming cocaine in Uganda.  

The case has alerted officials there to the possibility that Uganda is becoming a 'consumption destination,' a spot for adventurers and addicts to take illegal drugs with little risk of police detection.

Family man: Mr Rice is the father of two small daughter, aged 7 and 1. He and his wife worked out of Durban, South Africa

Mr Fuller said he was disappointed in his daughter for taking the drugs, but says she has already paid the price for her mistake. 

'I am cross, extremely cross. She’s an extremely bright woman who made a mistake,' he said.

'After this, she’ll have to prove herself. We’ve been through hell, but which father wouldn’t rush to support his daughter?'

Police arrested Moses Kalanzi, a 23-year-old 'special hire driver,' for supplying contaminated cocaine and heroin to Mr Rice. 

The driver is co-operating with police and could face charges for his role in the transaction, according to Ugandan newspaper the Daily Monitor.

Work: Rice helped producers on The Amazing Race, which follows teams as they travel around the world for a prize of $1 million. He worked on its latest season

 

'There was constant communication between the special hire driver and Rice on phone about the purchase of the drugs,' said a police spokesman. 'So we want to know the source of the drugs and how it is trafficked into the country.'

Father-of-two Mr Rice, 39, who worked on the series The Amazing Race, was discovered slumped over a table bleeding from his nose and mouth at the Serena hotel in the capital, Kampala. 

 

Family: Miss Fuller's father Stewart Fuller traveled Kampala in the hopes of taking his daughter back to south Africa for treatment

An official toxicology report confirmed the narcotic with a 'lethal additive' was in Mr Rice’s blood, dispelling initial suspicions he had been poisoned by attackers or that he had swallowed it to conceal the drugs from police.

Mugenyi, the Ugandan police spokesman, said: 'Rice… used cocaine which had lethal additives and that’s what killed him.'

Brad Nathanson, a private investigator and friend of Mr Rice, said he had been shown the toxicology report by police and there was no evidence of 'foul play' in Rice’s death.

He said: 'In fact it was as a result of buying bad drugs, cocaine to be specific … it was a bad concoction.' 

'I have read the toxicology report … it shows that there were small traces of cocaine in their blood and urine.' 

Mr Nathanson said he had traveled to Uganda as a favor to the Rice family following rumors he had been poisoned.

Miss Fuller was found unconscious at the same time Mr Rice’s body was discovered 

Mr Rice and Ms Fuller were believed to have voluntarily consumed the drugs, meaning she could be prosecuted under Uganda’s drug laws. Drug use can carry a jail term in Uganda.

As well as the Amazing Race, Mr Rice also worked on Animal Planet's Whale Wars and the South African version of The Biggest Loser.

He is survived by daughters, ages 2 and 7.

How Wall Street Bankers Use Seamless To Feast On Free Lobster, Steak, And Beer

A former Morgan Stanley banker recently described his weekend food-ordering ritual at the height of the recession. While pulling Saturday hours, for example, he'd log onto the bank's account on Seamless, the online food-ordering service, and redeem his meal allowance--plus a few allowances from phantom coworkers who weren't actually in the office, allowing him to eat well above his pay grade. Sure, someone could have cross-checked actual office attendence with the online orders, but is such effort worth the investment bank's time? "If people weren't around, it was totally acceptable to take their allowance, and pool it together when you ordered," the banker recalls. "Almost every weekend I was at the office, I'd have a $90 dinner of steak, lobster, mac & cheese, and calamari." Until several years ago, corporate giants like Morgan Stanley made up roughly 85% of Seamless's customer base. That figure has now tipped in favor of individual consumers, but enterprise clients still represent a significant (and growing) part of the New York-based company's revenue--companies offer Seamless as a benefit to those who typically work long or late hours. But for employees of these roughly 3,500 corporate Seamless customers, the benefit represents a huge opportunity to game the system. And no one has worked the system for financial gain better than Wall Street hustlers. "Abuse of the system was rampant," recalls another former Morgan Stanley staffer. "I added up how much I ordered in my first year: It was more than $3,000 of food." Here's how it works. Typically, junior professionals are allotted about $25 per meal at the office. But there are tricks to leverage this cash on Seamless. If employees want to order dinner, for example, they have to stay until 8 p.m. "But you could still order for a 7 p.m. delivery at 6 p.m., then call the restaurant directly and tell them to bring it right away," one employee says. "So I'd finish work around 6:30 p.m., hit the company gym, and then grab my sushi--spicy tuna rolls--on the way out." A Seamless Scam How Gordon Gekko Orders On Seamless 1// Top Seamless Fiend According to Seamless' statistics, the highest ordering corporate user placed more than 2,600 orders in 2011, or more than 7 meals per day. 2// Top Cuisine By Industry Employees Investment Bankers: Sushi; Educators: Pizza 3// Top Ordering Patterns Corporate dinner-orders in New York's Financial District peak at 8 p.m. In Midtown, corporate orders peak at 7 p.m. Corporate dinner-orders are higher, on average, from 4-5 p.m. and lower between 8 p.m. and 9 p.m. Ordering groceries on Seamless was--and likely still is--another practice. (Representatives at Goldman Sachs and Morgan Stanley have not responded to requests for comment.) One employee, who lived by Morgan Stanley's Midtown offices, would even remote into her office computer from her apartment, place an order on Seamless, and then call the restaurant and change the delivery address to her apartment. The lobster-loving Morgan Stanley banker's take on that old switcheroo? "Classic." Another trick: Since employees aren't allowed to order beer or alcohol on the system, it's not uncommon to pool money together, place a large order for random items, then call the store and request that they bring beer instead. "We definitely get a lot of random orders," says Seamless CEO Jonathan Zabusky. "Once in a while, I'll sit on the customer-care desk, just to get a feel on the pulse of what's going on. You see these orders come through, and you're like, 'Why are 20 rolls of toilet paper going to 200 Vesey Street [the World Financial Center]? What the hell?'" One former employee at Morgan Stanley said he wasn't sure how pervasive the "switch-for-beer order" was at the investment bank, but said he personally pulled the move several times. "Wow, I feel so lame now because when I'd order from Seamless, I'd just get dinner," says one former Goldman Sachs employee. "I never heard of anyone else pulling a fast one [like that], but that doesn't mean it never happened." The daily Seamless stipend is considered sacred for employees, and any abuse of the system appears generally overlooked by higher-ups. When Lehman Brothers went under, for instance, Morgan Stanley lowered the Seamless limit from $30 to $25, much to the anger of workers. "People went nuts," recalls a former employee. "Every so often there were these fireside chats with [Morgan Stanley CEO] John Mack 'Da Knife' and a collection of analysts. One of the women on the call asked Mack to raise the limit to $30 again. Mack, not really having paid much attention to expenses, was surprised to hear it had been reduced. Concerned, he asked her why she needed $30 instead of just $25. She said that with the new reduction, 'I can't order my Perrier anymore.'" The next day, as legend has it, there was an entire case of Perrier on her desk--courtesy of John Mack. "What a baller," an employee says. Zabusky is sure abuse exists on Seamless, but says it's not likely that widespread. "I think it's pretty funny," the Seamless chief chuckles. "I mean, I know it probably frustrates a CFO at Goldman, who is giving these guys $25 to order while they work on deals, and they're ordering toilet paper and jars of mayonnaise and all this other stuff. But in the overall scope, it's probably pretty small." Small as the abuses might be in terms of Seamless's bottom line, there's no doubt it has a big impact on the morale of employees, who seem to take pride in manipulating money one way or another. According to Seamless's statistics, for example, the highest ordering corporate user placed more than 2,600 orders in 2011. "There's nothing grosser or more magnificent than eating $25 of delivered Taco Bell under the fluorescent, sober lights of an office building," says one employee. "Do you have any idea how much baja sauce you can get for that money?"

San Diego tax preparer for the wealthy accused of ordering hit on 2 witnesses in fraud trail

 former Internal Revenue Service agent whose tax preparation business catered to a wealthy clientele is accused of ordering at least two former customers killed as they prepared to testify against him on fraud charges. Federal prosecutors say the targets were key witnesses against Steven Martinez, 50, who was charged last year with stealing $11 million by preparing bogus tax returns for his customers. 0 Comments Weigh InCorrections? Personal Post Martinez’s limousine driver — Norman Russell Thellmann, 64 — was charged Monday with conspiracy to tamper with witnesses. Prosecutors allege he was ordered to deliver money to a hit man who was promised $100,000 for the two killings. Martinez did not enter a plea during his initial court appearance Monday on a charge of witness tampering. A federal magistrate judge ordered him held without bail. “I find it almost impossible to believe,” said David Demergian, his attorney. Martinez, an IRS agent from 1988 to 1992, faces a pretrial hearing March 19 on federal fraud charges and was free on bail until his arrest last week. An FBI agent’s affidavit says Martinez gave a former employee documents on four people about two weeks ago, including photos of one target from the wealthy suburb of Rancho Santa Fe and another target’s condominium in the upscale La Jolla area of San Diego. Martinez recommended the former employee use two different pistols for the killings and get a silencer, according to the affidavit. The former employee contacted the FBI, which recorded a meeting Thursday in which Martinez allegedly gave additional instructions like how to break into the La Jolla condominium. The targets were identified as 86-year-old Monique Siegel of La Jolla and Marianne Harmon of Rancho Santa Fe. The fraud complaint alleges that Martinez told customers to deposit their taxes into one of his bank accounts, promising to forward the money to state and federal authorities. He stated lower income on their tax returns without telling them, allowing him to pocket $11 million. The complaint identifies victims only by their initials. One “M.H.” had an income of $20.7 million in 2006 but Martinez filed a tax return for $2.1 million. One “M.S.” earned $200,046 in 2006 but Martinez’s return reported $32,900. Another customer who earned $12.2 million in 2005 reported income at $1.6 million, according to the complaint. The same customer earned $11 million in 2006, also reported as $1.6 million. Demergian, his attorney, said the fraud case was “certainly very defensible.” “He had a very dedicated loyal clientele,” Demergian said. “He was very successful.” Thellmann, who was arrested Friday night, told the FBI that Martinez sold him a limousine about three years ago and hired him as a chauffeur. He said Martinez told him to give $40,000 to a person who would call him with code. Thellmann denied he knew the money was to pay a hitman. FBI agents found $42,400 cash in a cereal box at his home.

Ponzi fraud: two men found guilty of involvement in £115m UK scam

Two men have been convicted of involvement in the UK's largest Ponzi fraud, which saw hundreds of people – among them the former cricketer Darren Gough and the actor Frances de la Tour – lose £115m. John Anderson, 46, and Kenneth Peacock, 43 were found guilty of unauthorised regulated activity at Southwark crown court in London on Monday, but were cleared of one count each of fraud. The jury is still deliberating over allegations that they deceived investors. The scheme's mastermind, Kautilya Pruthi, 41, of Wandsworth, London, has pleaded guilty to the fraud and is due to be sentenced later this week. Ponzi frauds – which take their name from the Italian conman Charles Ponzi, who was particularly fond of employing the scheme – use cash from new investors to pay returns to existing investors and depend on a constant stream of new investors to fund the payouts. The court heard that Gough and the actor and singer Jerome Flynn are each thought to have lost up to £1m in the fraud, which also duped De la Tour. Victims handed over their cash to Pruthi, who promised them safe investments with returns of up to 13%. Instead, he spent their money on entertaining women, paying his daughter's private school fees and chartering helicopters. He also bought a private jet and built a car collection that included three Bentleys, a Lamborghini, two Ferraris, two Mercedes, a Rolls Royce, a Jaguar and a Maserati. "Mr Pruthi is believed to be the UKs most successful Ponzi fraudster," said David Aaronberg QC, prosecuting. "He obtained some £38m from investors and caused contractual losses of over £115m." Aaronberg added: "He enjoyed the company of women and was generous in the payments he made to a number of female friends, for whom he bought cars as presents, in total giving them £373,149." Indian-born Pruthi came to the UK in 2004 having been deported to his homeland after serving a sentence for faking documents in the US. Jurors heard that on coming to the country, Pruthi was quickly able to pose as "a wealthy individual". After setting up his company, Business Consulting International, said Aaronberg, Pruthi accepted deposits and "orchestrated a large-scale and sophisticated collective investment scheme". He would send personally tailored emails claiming he could offer up to 13% returns on 12-month investments because the scheme was available to a limited clientele. But in reality, said the prosecutor, he was "robbing Peter to pay Paul". Pruthi, who was not registered with or authorised by the FSA, admitted four counts of obtaining money transfers by deception, one of participating in a fraudulent business, one of unauthorised regulated activity and one count of converting and removing criminal property. Peacock, of West Hampstead, north London, and Anderson, of Surrey, are alleged to have acted as "aggregators" who pooled funds from third parties and then passed them on to Pruthi, who had duped them into the fraud at the outset. Eventually the scheme collapsed as there were not enough new investors to bring in the money needed to keep the old investors happy. "The scale of this scheme was vast and the losses were immense; several investors lost their homes, others have been declared bankrupt," said Aaronberg. "The monies which Pruthi received were generally not invested anywhere, neither in the UK nor abroad." According to the prosecution, of the £38,631,792 Pruthi obtained, £28m was used to pay back other investors, while £10m was siphoned off for Pruthi's "lavish lifestyle".

Deadlocked Stanford Fraud Trial Jury Told to Keep Deliberating

 

The judge in R. Allen Stanford’s fraud trial ordered the jury to return to deliberations after the panel sent a note saying it couldn’t reach a unanimous verdict in its fourth day of reviewing the evidence. The eight men and four women on the jury told U.S. District Judge David Hittner in Houston yesterday they were “unable to reach a verdict on each of the 14 counts,” the judge said, reading their note to attorneys for both sides. Enlarge image R. Allen Stanford, accused of leading a $7 billion investment fraud scheme, gestures as he exits the Bob Casey Federal Courthouse in Houston, Texas. Photographer: F. Carter Smith/Bloomberg Hittner instructed jurors to “continue your deliberations in this case,” telling them the trial has been costly in terms of both time and money, that the lawyers were unlikely going to be able to put on a better trial and that another jury was unlikely to be more conscientious. “It is your duty to agree upon a verdict if you can do so, without surrendering your conscientious opinion,’” Hittner told them. Stanford, 61, is accused of leading a $7 billion international fraud scheme involving the sale of certificates of deposit issued by his Antigua-based bank. He faces as long as 20 years in prison if found guilty of the most severe charges, mail fraud and wire fraud. The financier maintains he is not guilty. After the jury returned to deliberations, lead prosecutor Gregg Costa told the judge the jury’s note could be construed as meaning it couldn’t agree on any one of the 14 counts against Stanford or upon all of the counts. ‘We’ll See’ While acknowledging the possibility of having to accept a partial verdict, Hitter said, “We’ll see what comes out next.” When Hittner instructed the jurors to “take all the time you may feel necessary” to reach a verdict, one of the jurors grimaced. The jury left for the day yesterday after being told to resume deliberations. Jury selection in the case began Jan. 23 and the panel heard five weeks of evidence. The government presented testimony at from investors who bought the allegedly fraudulent CDs as well as from the executives who helped sell them. The witnesses included government officials and former Stanford Group Co. Chief Financial Officer James M. Davis, who pleaded guilty to fraud-related charges in 2009 and testified for five days against Stanford. Davis, whose relationship with Stanford traces back to when they were Baylor University roommates, told the jury he knew the boss was committing fraud and didn’t stop it. The defense presented former Stanford employees who said they saw no evidence of fraud at the company. Some offered testimony in support of the defense’s contention that Stanford was an absentee visionary who left the details of running his operation to Davis. Stanford didn’t testify during the trial.

Mandela faces fraud charges

The liquidators of Aurora Empowerment Systems, which is accused of asset-stripping bankrupt Pamodzi Gold, will lay charges of fraud this week against Nelson Mandela’s grandson Zondwa, and Ahmed Amod, an attorney for the company. The liquidators are also said to be planning to lay charges this week against Aurora chairman Khulubuse Zuma and possibly other directors under section 424 of the Companies Act, under which directors can be held personally liable for company debts. The charges follow a threat by the liquidators to lay charges of perjury against Thulani Ngubane, a director of Aurora, after he gave evidence at an inquiry.

Rapper Young Buck -- Shot at 11 Times in Attempted Drive-by

 

A woman riding in the passenger seat of an SUV driven by Young Buck was shot in the shoulder early this morning when another car drove alongside and opened fire, but the rapper was unharmed ... this according to a local report.  The woman was treated and released according to WSMV in Nashville, TN. There was a third passenger in the vehicle who was also not injured.  The shooting occurred at approximately 3:30 AM, police told the television station. Young Buck is from the area and was reportedly back in town for a music project.

Free at last: Longest-serving farang at 'Bangkok Hilton' is checking out

 

Like most prisons, Bang Kwang Central reeks of decay. But the fetidness of the "Bangkok Hilton", as it is known by inmates, is more indicative of the soul of the place than the damp edifices that contain the men. Built in the 1930s to hold 3500, the maximum security prison in Thailand's biggest city now houses about 8000 inmates, who have been sentenced to more than 25 years each, as well as hundreds awaiting the outcome of their pending appeals, or execution. Leg irons provide a means of status identification: new inmates wear theirs for the first three months, whereas those on death row have their shackles permanently welded on. Fates are determined by will or whim -- a royal birthday here, a public holiday there. The stroke of a monarch's pen determines who shall live, die or be released. And in the interim both the panacea for and consequence of not knowing is insanity: the inmate's survival guide. At the time of his arrest for heroin trafficking, South African Alexander (Shani) Krebs was 34 years old. Initially condemned to death, his sentence was commuted to 100 then 40 years. He has not spent a nano-second in a democratic South Africa, having been arrested a day before the elections in 1994. Over the years he earned the tragic reputation of being the longest-serving farang, or foreigner, in Bang Kwang. But on December 5 Thailand's monarch, King Bhumibol Adulyadej, benevolently issued an amnesty of sorts, courtesy of his birthday, to all farangs convicted of drug offences. In Thailand the seventh cycle, or 84th birthday, is a significant milestone for the monarchy and special celebrations are organised for the entire year. For the foreign inmates it means that one-sixth of their sentences has been reduced. For prisoners incarcerated since 1994, like Krebs, it signals an early release. Although most of the 11 convicted South African drug mules in Thailand have been incarcerated for more than 15 years, it is unclear who else will be released with Krebs. And South Africa's department of international relations and co-operation is not providing answers. What is certain, according to his family, is that Krebs will be released on April 22 -- eerily, almost 18 years to the day of his arrest. On Facebook, where a 751-strong support group was established in 2008, Krebs's friends have been relentlessly posting messages of support and daily marking the countdown. "Shani, only 56 days to go ... every day gets brighter. x," writes Sue. "Support our friend in the last steps to victory," says Erwin. There are psychedelic artworks and photo-shopped collages of Krebs on an aeroplane, Krebs giving the thumbs-up, Krebs reunited with his family in Johannesburg. "We wanted Shani to see how much he has been missed and how his loved ones are literally counting the days till he returns," said his sister, Joan Sacks. Since 1994 she has campaigned tirelessly for his release and kept him updated through letters and the occasional five-minute phone calls permitted by the Bang Kwang authorities. Sacks has also set up a website through which prints of his paintings -- Krebs became an accomplished artist during his incarceration -- can be bought. Arrested in Thailand Meeting him in 2009, through a double layer of bars, wire and glass, was akin to staring at the portrait of Dorian Gray. His curly hair had remained youthfully long, his body ripped and his face -- from a distance, at least -- seemed protected from the ravages of age that cleave creases, folds and furrows into the rest of us. He was 49 years old. Krebs wore a crisp white T-shirt and immaculately pressed blue trousers. He had been up most of the night, he said, copiously preparing notes for our first interview. He was charming and cheerful. He refused to divulge details of his incarceration -- the agonising months in solitary confinement, the daily drudge of prison life, the creeping despair that all he might ever do in his life was time. He made no mention of the sweat-soaked bodies crammed into cells measuring six metres by four metres, forced to sleep spoon-like, or the pungency of the open sewerage system, or the cesspool of disease that is Bang Kwang.

Ronnie Wood: Show keeps me sober

 

Ronnie Wood has revealed doing his radio and television show has helped him stay sober. The Rolling Stones guitarist, who has previously opened up about his alcoholism, presents a show on Absolute Radio, which has been turned into a television series for Sky Arts. And he said having a focus has helped him stay off the booze. He said: "While I've been keeping sober, it's been a way to express myself in a new focused way. It has helped me stay sober because of all the archives I'm having to plough down with my producer. I've had to concentrate but I also get the freedom, it's what I do, I deal with music, I get energy from it." The musician entered rehab after an intervention by artist Damien Hirst, and Ronnie told the Radio Times he knew he had to get clean as he was becoming immune to the effects of drugs and alcohol. He said: "The drink wasn't working, the dope wasn't working. I wasn't getting high. I was getting p'ed off and I was getting annoyed at myself. I thought, 'I'm not this person'."