Saturday, January 7, 2012

Drug lord who inspired 'Traffic' pleads guilty

Mexican drug kingpin Benjamin Arellano Felix pleaded guilty Wednesday to racketeering and conspiracy to launder money, avoiding the spectacle of a trial for the leader of a cartel that once smuggled hundreds of tons of cocaine and marijuana into the United States and dissolved bodies of its rivals in vats of lye.

Under an agreement with federal prosecutors, Arellano Felix, 58, can be sentenced to no more than 25 years in prison ? a lighter punishment than ordered for lower-ranking members of his once-mighty, Tijuana-based cartel. He also agreed to forfeit $100 million in profits.

Prosecutors agreed to dismiss other charges that could have brought 140 years in prison if he was convicted.

The half-hour hearing was an anticlimactic finish to the U.S. government's pursuit of one of the world's most powerful drug bosses during the 1990s.

His cartel, with its iron-tight grip on the drug trade along California's border with Mexico, was portrayed in the Steven Soderbergh film "Traffic" but has struggled in recent years as other cartels have become more ruthless than ever.

'A clear message'
Laura Duffy, the U.S. attorney in San Diego who built much of her career on the case, said Arellano Felix will likely spend the rest of his life in U.S. prison but did not elaborate on the reasoning for the plea deal.

"Today's guilty plea marks the end of his reign of murder, mayhem and corruption, and his historic admission of guilt sends a clear message to the Mexican cartel leaders operating today: The United States will spare no effort to investigate, extradite and prosecute you for your criminal activities," Duffy said.

Arellano Felix stood attentively in court, acknowledging his guilt as U.S. District Judge Larry Burns recited parts of a 17-page plea agreement. He told the judge that he has been suffering migraine headaches almost daily but that the problem didn't impair his judgment to accept the plea agreement.

Anthony Colombo Jr., Arellano Felix's attorney, said his client could be released from U.S. prison in 20 years if credited for time served in this country and good behavior, assuming he gets the maximum 25-year sentence. As a Mexican citizen, he would then be deported to Mexico, where he still has nine years left on a sentence for related crimes.

Story: Drug violence creeps into Mexico City

Colombo said the government may have agreed to the deal to avoid having to bargain with 21 potential government witnesses for reduced sentences in exchange for their testimony. They also may have wanted to avoid a lengthy trial.

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"They have to consider years and years of litigation, plus the expense, is avoided by this resolution," Colombo told reporters. "It was a favorable deal to my client who faced a minimum of 40 years and a maximum of 140 years under the extradition agreement."

Video: Drug violence comes to Mexican resort (on this page)

John Kirby, a former federal prosecutor who co-wrote the 2003 indictment against Arellano Felix, said the case rested entirely on cooperating witnesses, instead of wiretaps or physical evidence. He said those cases weaken over time as witnesses die, get into more trouble or change their minds about testifying.

"This kind of case is based solely on witness testimony, and it slowly disintegrates," Kirby said. "Maybe from the time when we put it together and now, it's not such a great case anymore."

The cost of a trial was unlikely to have influenced prosecutors, Kirby said.

"The government doesn't care about the expense, the government cares about winning," he said.

Story: Inside Ciudad Juarez, the border city that's deadlier than Afghanistan

Francisco Javier Arellano Felix, a younger brother who led the cartel after Benjamin was arrested in Mexico in 2002, was sentenced in San Diego to life in prison in 2007, a year after he was captured by U.S. authorities in international waters off Mexico's Baja California coast.

Jesus Labra Aviles, a lieutenant under Benjamin Arellano Felix, was sentenced in San Diego to 40 years in prison in 2010.

Benjamin Arellano Felix was extradited from Mexico in April 2011 to face drug, money-laundering and racketeering charges, one of the highest-profile kingpins to face prosecution in the United States.

'The CEO of the operation'
The U.S. indictment said Arellano Felix was the top leader of a cartel he led with his brothers, going back to 1986. It says the cartel tortured and killed rivals in the United States and Mexico as it smuggled Mexican marijuana and Colombian cocaine. The group focused on a 100-mile wide corridor stretching from Tijuana, south of San Diego, to Mexicali, south of Calexico.

"He was the top of the chain," Kirby said. "The brothers were at the top, and he was at the very top. He had the final say ... He was like the CEO of the operation."

Story: US mom, 2 daughters killed in Mexico attacks

The cartel began to lose influence along California's border with Mexico after Arellano Felix was arrested in 2002. A month earlier, his brother, Ramon, called the cartel's top enforcer, died in a shootout with Mexican authorities.

Benjamin Arellano Felix was incarcerated in Mexico after his 2002 arrest and was later sentenced to 22 years in prison on drug trafficking and organized crime charges.

Video: Inside the drug tunnels (on this page)

With the downfall of the Arellano Felix brothers, the rival Sinaloa cartel run by Mexico's most-wanted man, Joaquin "Shorty" Guzman, has largely taken over the cartel's valuable turf in Tijuana.

It will likely be difficult for the government to collect the $100 million that Arellano Felix agreed to forfeit.

"Whether there is anything out there that (the government) can seize, I don't know," Colombo said.

Sentencing was set for April 2.

The Associated Press and Reuters contributed to this report.

Source: http://www.msnbc.msn.com/id/45881887/ns/world_news-americas/

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Friday, January 6, 2012

Yahoo names PayPal's Thompson as CEO (Reuters)

SAN FRANCISCO (Reuters) ? Yahoo Inc named PayPal President Scott Thompson as its chief executive on Wednesday, hoping the well-regarded Internet technology and e-commerce expert will replicate his success at eBay Inc and turn around the struggling company.

Thompson, credited with driving growth at eBay's online payments division PayPal, joins Yahoo during a period of turmoil, as the company plows ahead with a strategic review in which discussions have included the possibility of being sold, taken private or broken up.

Yahoo shares finished Wednesday's regular trading session down 3 percent at $15.78, as Wall Street assessed how Thompson's hiring would affect the hopes of some investors that Yahoo would be sold or spin off its Asian assets, as well as how Thompson's background fits in with Yahoo's core online media business.

"It's a positive outcome, but not as positive as a sale of the company," said Lawrence Haverty, a fund manager with GAMCO investors, which owns Yahoo shares.

"The risk element is that his background was in payments. And this is not a payment company; it's a marketing, technology company," he said.

Thompson, a former Visa payments software platform designer, joins the company four months after the firing of previous CEO Carol Bartz as the one-time Web powerhouse Yahoo struggles to compete with newer heavyweights Google Inc and Facebook.

"I'm from Boston, we're the underdogs since the beginning of time. Hopefully that spirit has held through. I like doing complicated, very difficult, very challenging things," Thompson said in an interview.

Thompson, who takes over on January 9, will also join Yahoo's board. He ran eBay's PayPal since early 2008, and was previously its chief technology officer. Under his leadership, Yahoo said PayPal increased its user base from 50 million to more than 104 million active users. PayPal processed $29 billion in payments in the third quarter of 2011.

EBay's shares fell 3.8 percent as analysts said the online retailer would miss the respected Internet executive.

EBay Chief Executive John Donahoe told staff in an internal memo that Thompson's move was a "shock."

"Scott informed me Tuesday afternoon, saying that despite his passion for PayPal, this was an opportunity he felt he had to take," Donahoe said.

At PayPal, Thompson was known as a leader who was not afraid to make bold strategic bets. He came up with the idea of taking PayPal beyond its online stronghold and into the physical world by allowing PayPal payments in retail stores -- an opportunity analysts believe could prove much bigger than its existing business.

That kind of strategic risk-taking could be particularly useful at Yahoo. The Sunnyvale, California-based company, whose services include mail, search, news and photo-sharing, was a Web pioneer that grew rapidly in the 1990s. But in recent years, Yahoo has struggled to maintain its relevance and advertising revenue in the face of competition from rivals Google and Facebook.

"They really need that push to the next level," said Ryan Jacob, chairman and chief investment officer of Jacob Funds, which includes the Jacob Internet Fund and counts Yahoo as one of its largest positions.

"Ideally what they would do is rather than just follow where today's Internet leaders are moving, try to really be on that front edge," he said, citing Yahoo's need be better positioned in mobile, social networking and other fast-growing technology trends.

During a conference call on Wednesday, Thompson cited mobile as a key area that he expected to focus on at Yahoo, and he said he viewed the company's treasure trove data about its users as one of Yahoo's key assets. But he said it was too early to comment on his overall vision for the company.

NOT GOING PRIVATE

Yahoo Chairman Roy Bostock told analysts on the joint conference call with Thompson that Yahoo has no intention of being taken private.

"If you want to look at it in a practical way, if you and I were to sit down tomorrow and say let's take this Company private, I think we have one hell of a challenge on our hands to do that," said Bostock.

The decision to appoint a new CEO is not expected to impact the strategic review, which includes Yahoo's ongoing dialogue with both China's Alibaba Group and its Japanese affiliate to slash its stakes in the two companies, sources close to the matter said.

Under the "cash rich split" plan being discussed, Yahoo would effectively transfer most of its 40 percent slice of Alibaba back to the Chinese company and all of its stake in Yahoo Japan to Softbank Corp in return for cash and assets.

A preliminary term sheet has been drawn up that broadly outlines the deal concept, said one of the sources.

"Everyone seems to be in agreement over it," the source said.

The question is whether a definitive agreement can be signed between the parties ahead of March 25 deadline when activist shareholders can submit director nominees to Yahoo's board and waging a proxy battle.

Alibaba has also hired a Washington lobbying firm in a sign that the Chinese e-commerce company would be willing to make a bid for all of Yahoo in the event that talks to unwind their Asian partnership fail.

"If they can successfully complete the Asian asset transactions, in a way that is beneficial to Yahoo shareholders, I think it will buy them some time and they'll have a chance to build for growth," said Jacob, of the Jacob Funds.

In 2008, Yahoo rejected an unsolicited takeover bid from Microsoft Corp worth about $44 billion. Its share price was subsequently pummeled during the global financial crisis and its current market value is about $20 billion.

Co-founder Jerry Yang stepped down in late 2008 after being severely criticized by investors for his handling of the bid. The company cut thousands of jobs and later agreed to an advertising and search partnership with Microsoft.

RALLYING THE TROOPS

One of Thompson's first orders of business at Yahoo may be to try to rebuild morale inside the nearly 14,000-person company, which has been beset by layoffs, management reorganizations and a revolving door of executive departures.

The company cannot compete with hot Web companies such as Facebook and Twitter when it comes to luring the most sought-after engineers and many of the staffers within the company have tired of the seemingly endless reorganizations and lost their competitive drive, said one Yahoo employee, speaking anonymously.

"There are fundamental cultural issues, there are people who are not motivated to do big things," the Yahoo employee said.

Thompson, 54, who speaks in a thick Boston accent, is described as calm under pressure and adept at energizing his team.

One of his signature management styles involves creating different groups, each tasked with achieving the same goal and pitting them against each other, said one PayPal manager who asked to remain anonymous.

"He's not afraid to experiment," the person said.

"He'll build teams that are both going after the same thing," the person said. The idea is "you guys go after the same thing, whoever does it better wins," the PayPal manager explained.

Thompson said in an interview that Yahoo was in a strong position with its large user base of more than 700 million people.

"The traffic itself that these sites generate is a very big number, the collection of assets that sit below this core business I think are not well understood and clearly have tremendous opportunity to be leveraged as we look forward to the future." (Additional reporting by Alistair Barr and Nadia Damouni; editing by Maureen Bavdek, Gunna Dickson, Bernard Orr and Andre Grenon)

Source: http://us.rd.yahoo.com/dailynews/rss/business/*http%3A//news.yahoo.com/s/nm/20120105/bs_nm/us_yahoo

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Barnes & Noble falls on guidance cut, Nook review

FILE - In this Nov. 7, 2011 file photo provided by Barnes & Noble a demonstrator holds the new Barnes & Noble Nook Tablet following a news conference in New York. Barnes & Noble said Thursday, Jan. 5, 2011, it is reviewing its options for its growing Nook e-book reader business and might spin it off from its core bookstore business. (AP Photo/Barnes & Noble, Jim Sulley, File)

FILE - In this Nov. 7, 2011 file photo provided by Barnes & Noble a demonstrator holds the new Barnes & Noble Nook Tablet following a news conference in New York. Barnes & Noble said Thursday, Jan. 5, 2011, it is reviewing its options for its growing Nook e-book reader business and might spin it off from its core bookstore business. (AP Photo/Barnes & Noble, Jim Sulley, File)

(AP) ? Barnes & Noble is considering options for its quickly growing but expensive Nook e-book reading business, its latest attempt to regain profitability as the publishing industry adapts to the rising popularity of digital books and magazines.

Investors fled as the company also forecast a much bigger loss for the year than originally expected. The stock lost nearly a fifth of its value.

Barnes & Noble has been investing heavily in electronic books and its Nook e-book readers as it faces tough competition from online retailers and discount stores. That business is growing as consumers increasingly shift to reading e-books. But it has led to losses for the New York-based bookseller.

Barnes & Noble is facing tough competition from Amazon.com, which offered its Kindle Fire for $199 and its Kindle e-reader for $79 over the holidays. Barnes & Noble sold its Nook Tablet for $249 and its black-and-white Simple Touch e-reader for $99. Demand for the Simple Touch reader lagged expectations during the holidays, Barnes & Noble said.

Still, combined sales of Nook products were brisk, up 70 percent compared with a year ago during the nine-week period ended Dec. 31. Digital content sales more than doubled. The company expects those sales to total $450 million in fiscal 2012.

In an interview with the Associated Press, CEO William Lynch said the Nook review is an attempt to provide more visibility into Nook operations, which Barnes & Noble doesn't believe are valued as highly as they should be by investors and analysts.

"We want to unlock value and shine a bright light on that business," he said.

He said the company is looking at a "range of options" for the Nook business, which the company expects to generate $1.5 billion in revenue in fiscal 2012. He declined to comment on whether the company was considering selling the business outright. The review is expected to be complete by the end of the year.

Lynch added that the company could expand the Nook business overseas and should make an announcement related to that within the next two months.

Analysts expressed skepticism.

"Separating Nook from the Barnes & Noble brand would be a huge mistake," said Simba Information senior trade analyst Michael Norris. "A lot of people who buy e-books buy physical books as well. Do they really want to tamper with that kind of marriage?"

The shift is the latest move by Barnes & Noble to contend with the sea change occurring in the book business as more consumers shift to e-books and e-book readers. Its chief rival Borders was driven into bankruptcy last year due to the changing landscape. Barnes & Noble put itself up for sale for a period last year but called that off after receiving a $204 million investment from former suitor Liberty Media in August.

Overall during the nine-week holiday period Barnes & Noble's sales in stores open at least a year rose 3.4 percent. Total sales rose 2.5 percent to $1.2 billion.

Barnes & Noble cut its yearly guidance for earnings before interest, taxes, depreciation and amortization, a financial measure known as Ebitda, to between $150 million to $180 million. In December it said that figure would be at the low end of the range of $210 million to $250 million.

The bookseller expects a yearly loss of $1.40 to $1.10 per share on total sales between $7 billion and $7.2 billion. The loss is far greater than the loss of10 cents to 50 cents Barnes & Noble forecast in August. And it's bigger than the 63 cents per share expected by analysts, according to Fact Set. Analysts expect revenue of $7.34 billion.

Shares fell $2.3, or 17.1 percent, to close at $11.24 Thursday.

Associated Press

Source: http://hosted2.ap.org/apdefault/f70471f764144b2fab526d39972d37b3/Article_2012-01-05-Barnes%20and%20Noble-Nook/id-bfd544dc8c0049de847d5b0aa4bedba9

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Monday, January 2, 2012

New Year's shooting at condo leaves 4 dead

CORONADO, California (AP) ? An early morning New Year's shooting left four people dead at a condominium near San Diego, authorities said.

Police responded Sunday to an emergency call from a cellphone of shots fired in Coronado, a wealthy seaside suburb of about 24,000 people on San Diego Bay. Officers found a man in the doorway of the condo. The bodies of two men and a woman were discovered inside the condo.

Sheriff's Lt. Larry Nesbit said homicide investigators have not determined how any of the four died, though police officers who were the first to arrive believe the man found in the doorway was shot.

"They checked and he had no obvious signs of life. They tried to make contact with anyone else that might be inside the building and they got no response," Nesbit said.

A SWAT team sent in a robot to the first floor and later searched the second and third floors, Nesbit said. The three dead bodies were found in "different parts" of the three-story building.

The Naval Criminal Investigative Service was on scene, "in case any of the victims were members of the military," Nesbit said. NCIS spokesman Ed Buice said its investigators were participating in the probe, which was being led by the Sheriff's Department.

The victims' identities hadn't been confirmed.

Asked if the deaths are believed to be a murder-suicide, Nesbit said, "I'll let it infer what it does. We're not going to say that. Although it's very early in the investigation, we don't believe there are any outstanding suspects."

Nesbit said the emergency call was placed by a male passer-by who heard gunshots. Authorities received a search warrant Sunday afternoon to enter the three-story condo, which remained cordoned off.

The condo sits a few blocks from the famed Hotel del Coronado and a block from the main street, which is lined with boutiques and restaurants.

Coronado is home to Naval Air Station North Island and is a haven for Navy retirees. Homicides are extremely rare in Coronado, which recorded one in 2010.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2012-01-02-Condo%20Shooting/id-86227243b99b4065aef2f66b80bc1479

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Syria: Protesters clash with troops during Arab League's stay

Thousands of Syrian protesters took to the streets to prove to Arab League monitors the extent of their opposition to President Bashar al-Assad, the Los Angeles Times reported.

An estimated 500,000 people took to the streets in Syria Friday, in the largest demonstrations since the summer, the Guardian reported. The presence of Arab League monitors only energized the crowds. However, the monitors were unable to prevent or stop the violence.

Read more from GlobalPost: Syria closer to signing Arab peace plan

Syrian troops opened fired on the protesters, killing at least 12 people. Five members of the security forces were also killed in Homs, Reuters reported. The Guardian reported that at least 31 people were killed nationwide, in areas the Arab League has yet to visit.

Despite the killings, some activists said the presence of the Arab League brought on such intense international scrutiny that troops backed off from protesters in some areas, the Financial Times reported.

?We were able to move a bit more freely,? said Maria Haddad, an activist in the besieged city told the FT via Skype. ? Assad has [had] to withdraw some of the armed forces and tanks which enabled people to gather for the sit-in. But we are living a minute by minute [in] fear that they might go in and conduct another massacre.?

Read more from GlobalPost: Syria to allow in Arab League observers: reports

Fridays continue to be a major day of protest in Syria, after midday prayers. An announcement by the Free Syrian Army said it had suspended attacks against security forces for the duration of the league?s mission, the LA Times reported.

?The order to stop any military operations was issued since the arrival of the observers,? said the group?s spokesman, Maj. Maher Nuaimi, the LA Times reported. ?We want to show the world that these are peaceful demonstrations, that [President Bashar] Assad is a criminal, and that his army is using live ammunition against unarmed civilians.?

Read more from GlobalPost: Syria bans iPhones due to protest footage online: Reports (VIDEO)
?

http://www.globalpost.com/dispatch/news/regions/middle-east/111230/syria-protesters-clash-troops-during-arab-leagues-stay

Source: http://www.globalpost.com/dispatch/news/regions/middle-east/111230/syria-protesters-clash-troops-during-arab-leagues-stay

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Sunday, January 1, 2012

PFT: Broncos QBs fined Tebow over billboard incident

Dallas Cowboys v Washington RedskinsGetty Images

With Aaron Rodgers moving toward the league MVP award and Drew Brees penciled in for offensive player of the year, things get a little more dicey when trying to discern the defensive player of the year.

The outcome of the 50-person Associated Press vote typically hinges on a vague blend of statistical performance, team performance, name recognition, and reputation.? This year, 16 weeks of football have produced no clear-cut favorite.? And so the outcome will hinge on the performance of the top contenders in Week 17.

With no big-name players near the top of the league-leading interception list (seven is the high-water mark), the sackmasters will get primary consideration.? Currently, Vikings defensive end Jared Allen has 18.5, Eagles defensive end Jason Babin and Cowboys linebacker DeMarcus Ware have 18, Giants defensive end Jason Pierre-Paul has 15.5, and 49ers rookie linebacker Aldon Smith has 14.

If Allen or Babin can match or beat Michael Strahan?s all-time record of 22.5*, that guy (not to be confused with Jon Gruden?s ?this guy?) will be the most likely winner of the award.? But if they fall short of the record, the recognition could fall to Ware or Pierre-Paul, based on whether the Cowboys or Giants win on Sunday night and secure the NFC East crown.

With Babin and Allen playing for non-playoff teams, a berth in the postseason could provide the final nudge for Ware or Pierre-Paul ? especially since they?ll be playing in the highest-profile nationally-televised game on the eve of the casting of the ballots by the AP voters.

Pierre-Paul, drafted in 2010 as a project for a team that didn?t technically need another defensive end, has exploded down the stretch, winning the NFC defensive player of the week award twice in the last three weeks and making it to the Pro Bowl without being on the ballot.

With two sacks, Ware would become the first player with 20 or more sacks in two separate seasons.

Other candidates could come from the Ravens? defense, which has gotten 13 sacks and a great Thanksgiving night performance from linebacker Terrell Suggs.? His votes could be diluted by nose tackle Haloti Ngata.

49ers defensive lineman Justin Smith could get serious consideration, despite not having high-end stats, given his key role in the dominance of the San Francisco defense.

Broncos linebacker Von Miller also could get votes, even though he?s more likely to contend for the defensive rookie of the year award, if Aldon Smith (14 sacks) doesn?t break Jevon Kearse?s rookie record of 15.

Regardless, this award is coming down to the final week ? and possibly the final game ? of regular-season action.

Source: http://profootballtalk.nbcsports.com/2011/12/31/broncos-quarterbacks-fined-tebow-over-billboard-incident/related/

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College Football Preview - BCS Odds and Predictions - Part 2

The college football season hasn't gone at all according to plan for our predictions, but there is still hope of a big finish with some of the biggest bowls still on the table. We'll go over the 2nd part of the college football games coming up in the next week or two and see if we can't peg down some wagering winners. Best of luck to everyone that comes back week after week, and we'll do our best to go out with a bang. There are still 8 huge bowl games left after these predictions are finished so make sure to check back for more *winners.

*My track record indicates that there may not be many winners.

Utah vs. Georgia Tech -2.5

Georgia Tech's run-based style is tough for anyone to match up with, but Utah is familiar with it since they face off against a similar offense in Air Force every year. That will be the key to this game, and I'm calling for an upset as the Yellow Jackets don't fool anyone in the bowl.

UCLA vs. Illinois -3

The Bruins are a hit-and-miss team and I just can't trust them. Illinois is tough to peg down as well but I think they have small edges on both sides of the ball and will be able to figure out a way to win by 7-10.

Cincinnati vs. Vanderbilt -2

The SEC is getting overrated here and I don't think that Vanderbilt will be able to stop the Cincinnati offense from passing for 300 yards in an upset win. The Commodores are solid and will present some problems, but the wrong team is favored.

Virginia vs. Auburn -3

Auburn's offense should be able to put up big points, and I'm not sure that the Cavaliers will be able to keep pace. They looked horrible last time out against Virginia Tech and I have questions about how good they are on both sides of the ball. Go with the Tigers to win comfortably.

Penn State vs. Houston -7

Houston has been one of the most overrated teams all season long and their lack of defense finally caught up with them. Penn State is far from an offensive juggernaut but they should be able to run for 200 or more yards in an upset over a team that has no business being favored.

Michigan State vs. Georgia -3.5

The Spartans have used their defense and special teams to make up for an offense that is inconsistent, but I don't feel they'll have that luxury against Georgia. The Bulldogs should be able to move the ball successfully and are experienced to limit the type of mistakes that Michigan State has grown accustomed to receiving.

Nebraska vs. South Carolina -2.5

I'm usually looking to fade the SEC in bowl games because the odds makers generally overrate them, but this is not one of those instances. The Gamecocks are better on both sides of the ball and they have the defensive speed to stop Nebraska's offense. South Carolina wins easily.

Florida -2 vs. Ohio State

The Gators are far too inconsistent on both sides of the ball to be favored here. Ohio State has problems of their own, but they also have the superior playmakers in my opinion. This bowl game could go either way but I like the Buckeyes to pull off the upset.

Source: http://fantasyfootballjungle.com/article/1575/College_Football_Preview_-_BCS_Odds_and_Predictions_-_Part_2/

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