Monday, May 5, 2008

Researchers have found that, in terms of survival, assessing the status of a HIV/AIDS patient by clinical examination is almost as reliable as laboratory blood testing during their course of treatment.

Poor access to laboratory tests should therefore not be a barrier to rolling out antiretroviral (ARV) drug programmes for HIV in developing countries, they say.

The findings were published in The Lancet recently.

Patients on first-line ARVs in the developed world are monitored regularly for the amount of HIV circulating in their blood. When this falls below a certain level, treatment switches to second-line ARVs.

But because of limited access to laboratory tests, the WHO recommends that people in the developing world are monitored for clinical signs of HIV progression, such as bacterial infection in the mouth and certain types of cancer.

Monitoring of CD4 cell levels — an indicator of the health of a patient’s immune system — is also used when laboratory testing is available. Until now, little was known about the effectiveness of this strategy.

The researchers used a computer model to simulate the course of HIV infection and estimate the impact on survival of monitoring by viral load, CD4 count or clinical observation.

The model was initially developed for wealthy countries, but was adapted for lower-income countries by taking into account factors such as interruptions in drug supply.

It predicts that after five years, 83 per cent of patients monitored by viral load, 82 per cent of patients monitored by CD4 cell count, and 82 per cent of patients monitored by clinical examination alone, would have survived. This decreases to 67, 64 and 64 per cent, respectively, after 20 years.

Andrew Phillips, professor of epidemiology at the UK-based Royal Free & University College Medical School and lead author of the study, says the findings shouldn’t dissuade people from relying on viral-load monitoring.

“I certainly wouldn’t want to inhibit the roll-out of viral-load monitoring and the development of cheap and robust tests that don’t rely heavily on infrastructure or highly skilled laboratory staff,” he told SciDev.Net.

But, he says, that shouldn’t be done at the cost of getting ARVs to everyone who needs them.

“The issue of whether to use viral-load monitoring or not pales into insignificance when dealing with whether you’ve actually got everyone who needs ARVs on therapy. Having drugs without viral-load monitoring is a lot better than not having drugs.”

Tuesday, December 4, 2007

In an investigation reported on first by Wikinews, Wikileaks today revealed another chapter in the story of the Standard Operations Procedure (SOP) manual for the Camp Delta facility at Guantanamo Bay. The latest documents they have received are the details of the 2004 copy of the manual signed off by Major General Geoffrey D. Miller of the U.S. Southern Command. This is following on from the earlier leaking of the 2003 version. Wikileaks passed this document to people they consider experts in the field to carry out an analysis trying to validate it. Following this, they set out to assess what had changed between 2003 and 2004; including attempts to link publicly known incidents with changes to the manual.

Wikinews obtained the document and did an in-depth analysis. The American Civil Liberties Union had previously made a request to view and obtain copies of the same document, but was denied access to them.

One of the first notable changes to the document relates to the detainees themselves. Previously they read the camp rules during admission processing. Rules are now posted around the camp in detainees’ languages. The English version of the rules is as follows:

Of concern to groups such as Amnesty International who campaign for the camp’s closure, or Human Rights Watch concerned about prisoner handling under the prisoner of war aspects of the Geneva Convention, is the fact that policy for newly admitted detainees still allows for up to 4 weeks where access to the detainee by the International Committee of the Red Cross (ICRC) may be denied. In addition, guards are not to allow ICRC staff to pass mail to detainees.

A new process has been formed which allows guards to determine whether or not a detainee receives awards, or is punished. The form is called a GTMO Form 508-1 (pictured to the right). According to the manual, the form “is used to determine which rewards the detainee will lose or gain,” but “special rewards” can also be earned, outside of the process. One special reward is time allowed outside. Another special reward is a roll of toilet paper, but the detainee cannot share it with others. Doing so will result in “punishment” and confiscation of the roll. If the detainee already has a roll of toilet paper, he is not allowed to have another.

“Guards need to ensure that the detainee doesn’t receive additional toilet paper when the detainee already has it. The amount given to the detainee will be the same amount as normally distributed to the detainee,” states the manual.

No matter how bad a detainee may act, “haircuts will never be used as punitive action” against them, but they can have hair removed for health reasons. They can, however, be segregated from other detainees.

“If a detainee has committed an offense that requires segregation time, even if a segregation cell is not available, the detainee will receive a shave and a haircut for hygiene and medical reasons. If the detainee is IRFed, the haircut and shave will follow the decontamination process,” adds the manual. Barbers are also part of cell searches.

Despite these changes, a great deal of effort has gone into ensuring the furore over detainee abuse does not recur. Rules governing the use of pepper spray (Oleoresin Capsicum, or OC) appear at an earlier point in the manual with considerable expansion. Infractions such as spitting, throwing water at, or attempting to urinate on guards appear as explicitly listed cases where pepper spray may not be used. Extensive decontamination procedures are included in the document, including immediately calling for a medical check on any detainee exposed to pepper spray. This was not previously present.

As a counter to the clearer instructions on use of pepper spray, Wikileaks asserts that many of the stricter rules for guards (referred to as Military Police or MPs in the 2003 manual) aim to reduce fraternisation that may improve detainee morale and adversely influence any interrogation process. Guards are informed in the manual not to take personal mail and parcels within the detention blocks or at any other duty stations. All electronic devices except issued materiel are prohibited, and guards may face disciplinary action should they keep detainees apprised of current affairs or discuss issues in their personal lives.

Additional restrictions on the detainees’ chaplain are included in the revised document. Wikileaks speculated that many of these changes might have stemmed from the widely publicised case of James Yee. Captain Yee, a West Point graduate, served at the Guantanamo Bay base as a Muslim chaplain to the detainees and received two Distinguished Service medals for his work. Following discovery of a list of detainees and interrogators by U.S. Customs in Florida Yee was charged with sedition, aiding the enemy, spying, espionage, and failure to obey a general order. Eventually all charges were dropped with national security concerns being raised should evidence be released.

The most notable changes surrounding the role of the chaplain include its removal as a permanent position on the facility’s Library Working group and its exclusion from the decision process on appropriate detainee reading material. Wikileaks contacted lawyers representing detainees in the camp to perform their own analysis. Their opinion of the changes were that the library operation had been considerably tightened up. Duplicate books are required for the individual four camps to prevent covert use of books to communicate between camps. Periodicals, dictionaries, language instruction books, technology or medical update information, and geography were additions to the prohibited material. Instructions indicate such books must be returned to the source or donor.

The revised SOP manual makes considerable progress on documenting procedures, even those that are remote possibilities. A lengthy addition details rules to follow in the event of an escape or escape attempt. Laced throughout this procedure is an emphasis on having any such incident fully documented and – wherever possible – filmed. The procedure is explicit in how to recapture an escaped detainee with minimal use of force. One additional procedure covers the admission of ambulances to the main base area. A detailed security protocol to ensure only expected and authorised traffic gains access is included, as is a procedure streamlined to ensure the ambulance arrives on the scene as quickly as possible.

Unchanged from the 2003 manual is the set menu of four ready-to-eat meals (Meal, Ready-to-Eat or MRE) issued to detainees. However, additional steps are to be taken for “MRE Sanitization”; supply personnel must remove anything that can damage waste disposal systems— presumably a military term for toilets. Under normal camp conditions, detainees should be fed hot meals as opposed to MREs, but no details on the variety of menu are included.

Wikinews attempted to get feedback on this. US Southern Command passed a query on to Rick Haupt (Commander, U.S. Navy Director of Public Affairs, Joint Task Force at Guantanamo) who responded that “questions were forwarded along with a request to authenticate the leaked document; a response is pending.” At this time no response to emails has been received from the ICRC or Human Rights Watch.

The Pentagon has requested that the document be removed from Wikileaks because “information with the FOUO (For Official Use Only) label is not approved for release to the public.” They then state that the document can be “made available through a Freedom Of Information Act request through official channels.”

Friday, February 6, 2009

Denny’s 1,600 chain restaurants across North America, Puerto Rico and Canada, were slammed for eight hours Tuesday with hungry patrons standing on sidewalks for nearly two hours to take advantage of the $5.99 “Grand Slam Breakfast” giveaway.

Denny’s, a dining chain with annual revenue of about $900 million, has advertised in a TV commercial Sunday during the Super Bowl XLIII that it would give away its signature breakfast from 6 a.m. until 2 p.m. local time Tuesday, at all its restaurants in the U.S., Canada and Puerto Rico, while supplies lasted.

Denny’s Diner has promoted the iconic dish giveaway heavily, with a bold 30-second appeal ad that aired during the third quarter of the Super Bowl 43 on Sunday, plus another 15-second ad during the post-game show, offering a free breakfast to some 90 million viewers. In addition, it has placed a full-page ad in USA Today‘s Monday edition. The promotion was further announced on The Today Show and notices were also sent out to the chain’s “Denny’s Breakfast Club” members.

The NBC ad, which was bought to unveil a new promotion for customers squeezed by the recession, may have cost as much as $3 million, said Nelson Marchioli, CEO of Denny’s Corp. Super Bowl XLIII’s 30-second commercial time slot costs $2.4 million–$3 million for the airtime alone, excluding production and talent costs.

The game was televised live by the US NBC Sunday Night Football and Canada’s CTV Television Network. BayTSP has reported that, “as of 10 a.m. Wednesday, commercials that initially aired during NBC’s Super Bowl XLIII broadcast subsequently had been watched online more than 28 million times.”

“The promotion has a total cost of $5 million U.S., which includes $3 million for the commercial on NBC,” said a Denny’s spokesman, noting also that the company received about $50 million in news coverage, most of which was positive. According to a Denny’s representative, two million people walked through the restaurant chains’ doors Tuesday, and each Denny’s restaurant served an average of 130 Grand Slams per hour.

With the “Denny’s Feeds America” promotion, the company has reported 14 million hits on its Web site between Sunday night and Monday morning. Denny’s shares rose 6 cents, or 3.1 percent, to $1.98 in afternoon trading. The stock has traded in a range of $1.18 to $4.10 over the past 52 weeks.

“Denny’s free Grand Slam” has ranked in the top 10 Google searches early Tuesday and fell to No. 18 by the end of the promotion, while “denny s locations” was #9 on Google Trends, which tracks fast-rising searches. It has also held spots No. 1 (Denny’s) and 7 (Grand Slam) on Twitter‘s trending topics. It has generated much chat on Twitter, garnering 1,700 tweets on Tuesday, compared with its average of 59. Doritos, winner of the USA TODAY survey for best Super Bowl spot ad, had 933 mentions after reaching a peak of almost 3,300.

The idea of the TV ad was to get people to come in and re-evaluate Denny’s Diner. “A lot of people have forgotten what Denny’s is, or they think they know, while we’ve come out with a whole lot of new products. We felt like we needed to jump start the brand,” Denny’s Chief Marketing and Innovation Officer Mark Chmiel said.

“We’re celebrating the Grand Slam this year,” Chmiel said. According to the company’s financial data, on January 15 Denny’s reported systemwide comparable-store sales for the fourth quarter were down 6.1 percent, compared to a 0.2 percent decline from the same period in 2007.

According to Robert Gonzalez, public relations company Hill & Knowlton spokesman, Denny’s has expected at least 2 million people to eat a free Grand Slam by the end of the promotion. “Every restaurant is packed with people and lines,” Gonzalez said. “Everything today is about fast. People are on the go, and they’re eating fast food. It’s cutting into sit-down dining,” he added.

“Each of the more than 1,500 Denny’s were planning to make about 100 Grand Slams an hour,” Denny’s spokeswoman Cori Rice said. It had predicted it will have served about 1,400 people per location, more than five times the normal volume. “Grand Slam Breakfast” is a four-item option on its menu, consisting of two pancakes, two eggs, two strips of bacon and two sausage links. It weighs in at 44 grams of fat, 56 carbohydrates and 770 calories.

Nationwide, Denny’s expected to sell about 2 million Grand Slams — about 15 percent of the annual tally. According to Mark Chmiel, chief marketing operator and executive vice president, the diner chain has reported approximately 2 million meals worth more than $12 million were given away nationwide and each Denny’s restaurant served an average of 130 Grand Slams per hour. It estimated it has earned about $50 million worth of public relations following the free Grand Slam campaign, Chmiel said.

The company is also experimenting with a Grand Slam Burrito and also has introduced for this year, a Grand Slamwich, which includes eggs, bacon, sausage and cheese between two slices of bread, with a teaspoon serving. “It already has shown strong consumer appeal,” said Chmiel. The company has received flood of e-mails and letters proving the positive impact of the Grand Slam campaign and commercials on its customers.

Chmiel also announced he’s planning a third major promotion in this year’s third quarter, which happens to include another major sporting event, the World Series. “That’s one we’re definitely looking at,” he said.

Jobless Paris Winslow of downtown San Francisco, California has joined the long line which stretched from the front door on Mission Street, between Fourth and Fifth streets, to the corner of Fourth and up the block. “The economy is getting kind of scary. This line looks like those pictures of soup kitchen lines during the 1929 Great Depression,” Winslow said.

“I came all the way from San Francisco for a free $6 meal, Isn’t that pathetic? A year ago, I never would have done this. These days I’m willing to put my ego on the back burner,” said Stephen Weller, a jobless contractor who waited with his dog, Emmett. California Denny’s restaurant managers have issued rain checks (for free chilled meals, as security backed by actual bacon) to anyone who failed to get in by the 2 p.m. deadline.

A big eater could also “Slam It Up” by adding any two additional items for 99 cents each to their meal. Customers on Tuesday were also handed “bounceback” coupon books that include offers for additional free menu items with purchases. Chicago Tribune reporter Kevin Pang has eaten five free Grand Slams on Tuesday at five different Denny’s Diners in four hours. He claims to have consumed 4,100 calories at Harwood Heights, 5:36 a.m, at Schiller Park, 6:22 a.m., at Franklin Park, 7:08 a.m., at Melrose Park, 7:41 a.m. and at Grand Slam No. 5 Oak Park, 8:57 a.m.

“The Grand Slam has always been a Denny’s favorite. This free offer is our way of reacquainting America with Denny’s real breakfast and with the Denny’s brand,” Denny’s CEO Nelson Marchioli said in a statement. In 1977s, the Grand Slam started as a baseball-related promotion in Atlanta, Georgia. Its normal price averages around $5.99. Marchioli said the event was also a way to kick-off its “Year of the Grand Slam” promotion. Denny’s claimed it has sold 12.5 million Grand Slams a year.

“The economy’s tough and people are jumping all the way to fast food to try to figure it out. We all use fast food, whether it’s for time or convenience or for money. But you can go to Denny’s and you don’t have to give up a real breakfast and that was the whole focus of our commercial,” Marchioli explained. McDonald’s (MCD, Fortune 500) has done well during this economic meltdown since the global recession pushes people toward less expensive dining options.

McDonald’s has announced plans Wednesday to open 175 new restaurants in China this year despite the global economic crisis, thereby increasing the number of outlets in China by 17 percent, from 1,050 currently. Last month, McDonald’s 2008 net profit has risen 80 percent from 2007 to 4.3 billion dollars.

Marchioli has also introduced Denny’s $4 Weekday Express Slam, which is a streamlined version of the Grand Slam. “I want to take back share. For too long, we have allowed others to take share, whether it was Starbucks or McDonald’s. They’re fine competitors and I don’t expect to take all their business from them, but I’d like a little bit back,” Marchioli noted.

According to Rafi Mohammed, author of “The Art of Pricing,” people love free. “It triggers a Pavlovian response in people,” said Mohammed. If Pavlov’s dogs salivate when a bell rings, Denny’s free Grand Slam breakfast has attracted 2 million hungry customers. “I believe free maximizes trial and doesn’t devalue a product as long as it is a rare event. Aside from the cost, the major downside is that it attracts customers who truly have no intention of coming back,” he added.

According to University of Portland consumer psychology professor Deana Julka, people flock to free promotions amid just a few dollars saving because there’s nothing in life for free. “So when there’s something out there that costs nothing, it creates a psychological rush. Especially in these times when people feel overtaxed or overburden, there’s an internal reward people feel by getting something for free,” she said. “It’s being thrifty and feeling like you beat the system. Free really hits the spot for a lot of people,” Julka added.

“Free is an emotional hot button. When free is concerned, there is no downside – or, at least, we don’t see the downside immediately. So we overvalue everything that is free. People love free stuff, particularly when money’s tight,” said Dan Ariely, a business professor at Duke University, author of “Predictably Irrational: The Hidden Forces That Shape Our Decisions.”

Experts, however, explained these moves need to be done sparingly, since giveaways can teeter in the balance between desperation and a well designed marketing ploy. “Giving your product away for free is not worth it because it undermines your brand value,” said branding expert Rob Frankel, saying people are attached to the idea of it being free, than the actual product itself.

Free giveaways are not anything new in the food industry. “It just feels good when you can get something for free and not have to worry about it coming out of your wallet,” Frankel noted. Dunkin’ Donuts and Panera Bread all have had free coffee and food promos last year. “In November, Starbucks gave away free cup of coffee to anyone who came in on Election Day. Have you taken a look at how Starbucks is doing now?” Last week it has announced it would shut down 300 stores, in addition to the 600 it already planned to close.

On February 24, IHOP will be offering a free shortstack to every customer to encourage donations (in place of the cost) for Childrens Miracle Network. The International House of Pancakes (IHOP) is a United States-based restaurant chain that specializes in breakfast foods and is owned by DineEquity. The chain had more than 1950 restaurants in all 50 states, the U.S. Virgin Islands, Canada and Mexico. Since 2006, IHOP’s National Pancake Day celebration has raised over $1.85 million. In 2008, over 1.5 million pancakes (12 miles high if they were stacked) were given to customers for donations.

Denny’s (“Denny’s Diner”) is a full-service diner/family restaurant chain in the United States. It operates over 2,500 restaurants in the United States (including Puerto Rico), Canada, Curaçao, Costa Rica, El Salvador, Jamaica, Japan, Mexico, and New Zealand). The resto chain is known for always being open, serving breakfast, lunch, dinner, and dessert around the clock.

Today, Denny’s operates about 1,600 restaurants in all 50 U.S. states, Canada and Mexico. There are also about 578 Denny’s restaurants in Japan operated under a license by a subsidiary of Seven & I Holdings, seven Denny’s locations in New Zealand, and approximately 38 Denny’s diners in the United States. Denny’s headquarters is now located in Spartanburg, South Carolina, headquarters of the parent company Trans World Corporation that acquired Denny’s in 1987.

Denny’s was historically notable for offering a free meal to anyone on their birthday. The offer included a limited number of meal options from a special birthday menu. The promotional ritual ceased in 1993, though occasionally individual franchises will continue the tradition.

In 2008, Denny’s has ceased to be in the ranks among the top diner chains in the $83 billion breakfast market, whose top five firms — McDonald’s, Starbucks, Dunkin’ Donuts, Burger King and IHOP — accounted for 22 percent of the volume. “A lot of consumers have written Denny’s off their let’s-go-there list,” said Ron Paul, president of Technomic, a consulting firm.

Super Bowl XLIII was an American football game between the American Football Conference champion Pittsburgh Steelers (15–4) and the National Football Conference champion Arizona Cardinals (12–8) to decide the National Football League (NFL) champion for the 2008 NFL season. It was played on February 1, 2009, at Raymond James Stadiumin Tampa, Florida. It has an attendance of 70,774 and 98.7 million viewers. Pittsburgh earned its sixth Super Bowl win, thus securing sole possession of the record for most Super Bowl wins.

Saturday, March 21, 2009

New Jersey has reversed its plans for a state-wide ban on bikini waxing after salon owners from across the state spoke out against the proposal.

The New Jersey Board of Cosmetology and Hairstyling planned to consider a ban on so-called “Brazilian waxes” in response to two women who reported being injured during a wax.

But state Consumer Affairs Director David Szuchman, who oversees the board, asked them to abandon the ban in favor of reviewing and establishing safeguards for those who provide the service.

“Many commentators have noted that the procedure could be safely performed,” Szuchman wrote in a letter to state board President Ronald Jerome Brown, according to the Asbury Park Press. “I, therefore, believe that there are alternative means to address any public health issues identified by the board.

Salon owners from across the state expressed relief with Szuchman’s decision.

“It was an unnecessary issue,” spa owner Linda Orsuto told the Associated Press. “In New Jersey especially, where the government has been picking our pockets for so long, it was like, ‘Just stay out of our pants, will you?'”

Although millions of Americans get bikini waxes, which generally cost between $50 and $60 per session, the practice comes with risks. Skin care experts say the hot wax can irritate delicate skin in the bikini area, and result in infections, ingrown hairs and rashes.

Waxing on the face, neck, abdomen, legs and arms are permitted in New Jersey. Although state statutes have always banned bikini waxing, the laws are seldom enforced because the wording is unclear.

If the measure had passed, New Jersey might have become the only US state to ban the practice outright.

Although Szuchman’s letter was crafted more as a recommendation than an order, media reports said the ban would likely never be approved without his support because his office oversees the board.

Thursday, October 19, 2017

On Monday, digital security researchers Mathy Vanhoef and Frank Piessens of Belgium’s KU Leuven university publicly disclosed a security vulnerability in the WPA2 Wi-Fi (wireless local-area networking) protocol, which they called KRACK (for Key Reinstallation Attack). Their study claimed KRACK affects every modern device using Wi-Fi; it can be fixed by a software update, researchers said.

Vanhoef wrote, “Attackers can use this novel attack technique to read information that was previously assumed to be safely encrypted. This can be abused to steal sensitive information such as credit card numbers, passwords, chat messages, emails, photos and so on.” Vanhoef notified vendors about the flaw in July, including UNIX-like operating system OpenBSD. “If your device supports Wi-Fi, it is most likely affected. […] In general, any data or information that the victim transmits can be decrypted”, he wrote.

The study papers, which were submitted for review on May 19, were kept in confidence allowing companies to fix the security flaw. The United States-based Computer Emergency Response Team (CERT) informed vendors on August 28. The Wi-Fi Alliance said it “could be resolved through a straightforward software update.” OpenBSD released their software patch on August 30.

Exploring the flaw which affected every device the researchers had tested, National Cyber Security Centre of the UK said “the attacker would have to be physically close to the target”. But due to this flaw, an attacker can send malware or ransomware on the websites, Vanhoef claimed.

Linux-based operating systems including Android v6.0 and higher are especially affected by this flaw, while Windows and iOS are not as vulnerable as Android by this flaw as they do not fully implement WPA2.

Microsoft reportedly has released security patches for Windows 7, 8, 8.1 and 10. Google said Android operating systems would receive the updates in the software update scheduled to be made available on November 6. Apple has implemented the patch in the beta versions of their operating system iOS, macOS, tvOS and watchOS, however it is yet to roll out patches for stable operating systems.

WPA2 protocol has been used for more than a decade, and has been compulsory for Wi-Fi since 2006. KRACK would also affect various home appliances which can be controlled over Wi-Fi, within the so-called “Internet of things”. Andrew Martin from Oxford University said, “We can be sure a lot of these devices won’t be patched[…] Whether that matters for this attack or only for some future attack is yet to be seen.”

The study and its findings are scheduled for presentation at the ACM (Association for Computing Machinery) Computer and Communications Security conference on November 1.

Thursday, June 23, 2011

Celebrating their 70th anniversary, news agency RIA Novosti, along with the Russian chapter of the Wikimedia Foundation, have started the ‘Eternal Values’ project. This project includes the release of images from RIA‘s archive to the public under free licenses.

During the first phase, one hundred World War II-time photos were uploaded to Wikimedia Commons under the Creative Commons share alike license. The license allows the images to be freely used, including within the commercial industry without a fee and allows for creations of derivative works provided any resulting work is redistributed under the same license and properly attributed to its author. The project is supported by Russian President Dmitry Medvedev, who uploaded one of the images to Wikimedia Commons himself.

Medvedev participated in the anniversary ceremony and personally congratulated the agency. He uploaded the 100th image to Commons. Earlier Medvedev supported Wikimedia Russia’s position on the need for changes in Russian legislation in order to make free licenses perfectly legal and to allow freedom of panorama in the country.

This event is part of Wikimedia Russia’s goal to “share knowledge, eliminate the digital divide and increase the availability of historical and cultural value for society.” Due to similar projects in other countries, German Bundesarchiv released 100,000 historic images under a free license and Queensland State Library released 50,000 images.

Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Friday, August 25, 2006

Venezuelan President Hugo Chavez arrived in the Chinese capital of Beijing, Wednesday, beginning a visit that will see new agreements to increase China’s investment in Venezuela’s petroleum, telecoms, agriculture and transport. Chavez says that his country intends to boost its oil exports to China to 500,000 barrels a day within five years, quadrupling its current exports, and up to one million barrels a day by 2012.

“Within five years we’ll arrive at half a million barrels (a day) to China. We are currently exporting close to 150,000 barrels (a day), and next year we will double that,” Chavez said.

“The oil issue is of utmost importance because we are diversifying the petroleum business. We are moving toward a new petroleum model,” said Chavez, speaking on Venezuelan state television from China. “It’s one step more in a strategic alliance.”

Chavez met Chinese President Hu Jintao on Thursday, senior leader Wu Bangguo and Premier Wen Jiabao on Friday. Following Thursday’s meeting, Chavez said that Jintao agreed to support Venezuela’s bid to join the United Nations Security Council as a non-permanent member. He is also discussing Chinese involvement in developing his countries gold and coal mining industries, according to reports.

The countries are also signing agreements for Chinese assistance in building a petrochemical plant within the Amuay oil refinery in western Venezuela.

Agreements are expected to be signed with two of China’s state owned oil companies to develop and export crude from Venezuela’s Orinoco river basin as well as to approve the sale of Chinese oil tankers to Venezuela.

While the United States remains the leading importer of Venezuela’s oil, Chavez’ left wing government has sought to diversify its trading partners in an attempt to reduce its reliance on the United States and promote a “multi-polar” world order.

China is the world’s second largest consumer of petroleum and is in need of increased oil supplies in order to maintain its rapid pace of economic growth.

Chavez told Venezuelan state television that increased trade with China and Russia will help boost Venezuela to medium-power status. He claimed that investment agreements with China will transfer technology to his country and help Venezuela escape dependency.