Rolling Stones hit NY for 50th anniversary gig


NEW YORK (AP) — "Time Waits for No One," the Rolling Stones sang in 1974, but lately it's seemed like that grizzled quartet does indeed have some sort of exemption from the ravages of time.


At an average age of 68-plus years, the British rockers are clearly in fighting form, sounding tight, focused and truly ready for the spotlight at a rapturously received pair of London concerts last month.


On Saturday, Mick Jagger, Keith Richards, Ronnie Wood and Charlie Watts hit New York for the first of three U.S. shows on their "50 and Counting" mini-tour, marking a mind-boggling half-century since the band first began playing its unique brand of blues-tinged rock.


And the three shows — Saturday's at the new Barclays Center in Brooklyn, then two in Newark, N.J., on Dec. 13 and 15 — aren't the only big dates on the agenda. Next week the Stones join a veritable who's who of British rock royalty and U.S. superstars at the blockbuster 12-12-12 Sandy benefit concert at Madison Square Garden. Also scheduled to perform: Paul McCartney, the Who, Eric Clapton, Bruce Springsteen & The E Street Band, Alicia Keys, Kanye West, Eddie Vedder, Billy Joel, Roger Waters and Chris Martin.


The Stones' three U.S. shows promise to have their own special guests, too. Mary J. Blige will be at the Brooklyn gig, as well as guitarist Gary Clark Jr., the band has announced. (Blige performed a searing "Gimme Shelter" with frontman Jagger in London.) Rumors are swirling of huge names at the Dec. 15 show, which also will be on pay-per-view.


In a flurry of anniversary activity, the band also released a hits compilation last month with two new songs, "Doom and Gloom" and "One More Shot," and HBO premiered a new documentary on their formative years, "Crossfire Hurricane."


The Stones formed in London in 1962 to play Chicago blues, led at the time by the late Brian Jones and pianist Ian Stewart, along with Jagger and Richards, who'd met on a train platform a year earlier. Bassist Bill Wyman and drummer Charlie Watts were quick additions.


Wyman, who left the band in 1992, was a guest at the London shows last month, as was Mick Taylor, the celebrated former Stones guitarist who left in 1974 — to be replaced by Wood, the newest Stone and the youngster at 65.


The inevitable questions have been swirling about the next step for the Stones: another huge global tour, on the scale of their last one, "A Bigger Bang," which earned more than $550 million between 2005 and 2007? Something a bit smaller? Or is this mini-tour, in the words of their new song, really "One Last Shot"?


The Stones won't say. But in an interview last month, they made clear they felt the 50th anniversary was something to be marked.


"I thought it would be kind of churlish not to do something," Jagger told The Associated Press. "Otherwise, the BBC would have done a rather dull film about the Rolling Stones."


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Associated Press writer David Bauder contributed to this report.


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New Taxes to Take Effect to Fund Health Care Law





WASHINGTON — For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.




The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.


Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.


To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly.


The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law.


Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold.


Since the creation of Social Security in the 1930s, payroll taxes have been levied on the wages of each worker as an individual. The new Medicare payroll is different. It will be imposed on the combined earnings of a married couple.


Employers are required to withhold Social Security and Medicare payroll taxes from wages paid to employees. But employers do not necessarily know how much a worker’s spouse earns and may not withhold enough to cover a couple’s Medicare tax liability. Indeed, the new rules say employers may disregard a spouse’s earnings in calculating how much to withhold.


Workers may thus owe more than the amounts withheld by their employers and may have to make up the difference when they file tax returns in April 2014. If they expect to owe additional tax, the government says, they should make estimated tax payments, starting in April 2013, or ask their employers to increase the amount withheld from each paycheck.


In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.” However, the law does not provide for the money to be deposited in a specific trust fund. It is added to the government’s general tax revenues and can be used for education, law enforcement, farm subsidies or other purposes.


Donald B. Marron Jr., the director of the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, said the burden of this tax would be borne by the most affluent taxpayers, with about 85 percent of the revenue coming from 1 percent of taxpayers. By contrast, the biggest potential beneficiaries of the law include people with modest incomes who will receive Medicaid coverage or federal subsidies to buy private insurance.


Wealthy people and their tax advisers are already looking for ways to minimize the impact of the investment tax — for example, by selling stocks and bonds this year to avoid the higher tax rates in 2013.


The new 3.8 percent tax applies to the net investment income of certain high-income taxpayers, those with modified adjusted gross incomes above $200,000 for single taxpayers and $250,000 for couples filing jointly.


David J. Kautter, the director of the Kogod Tax Center at American University, offered this example. In 2013, John earns $160,000, and his wife, Jane, earns $200,000. They have some investments, earn $5,000 in dividends and sell some long-held stock for a gain of $40,000, so their investment income is $45,000. They owe 3.8 percent of that amount, or $1,710, in the new investment tax. And they owe $990 in additional payroll tax.


The new tax on unearned income would come on top of other tax increases that might occur automatically next year if President Obama and Congress cannot reach an agreement in talks on the federal deficit and debt. If Congress does nothing, the tax rate on long-term capital gains, now 15 percent, will rise to 20 percent in January. Dividends will be treated as ordinary income and taxed at a maximum rate of 39.6 percent, up from the current 15 percent rate for most dividends.


Under another provision of the health care law, consumers may find it more difficult to obtain a tax break for medical expenses.


Taxpayers now can take an itemized deduction for unreimbursed medical expenses, to the extent that they exceed 7.5 percent of adjusted gross income. The health care law will increase the threshold for most taxpayers to 10 percent next year. The increase is delayed to 2017 for people 65 and older.


In addition, workers face a new $2,500 limit on the amount they can contribute to flexible spending accounts used to pay medical expenses. Such accounts can benefit workers by allowing them to pay out-of-pocket expenses with pretax money.


Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.


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More young American adults are leaving the nest









WASHINGTON — After riding out the tough economy in their parents' basements, more young American adults are starting to break out on their own, pushing up the nation's mobility rate and giving an important boost to the housing market and the broader recovery.


Thanks to improving job prospects and super-low mortgage rates, adults in their 20s and early 30s are moving into their own apartments and buying homes in increasingly greater numbers, according to real estate experts and government statistics.


Census Bureau data show that the nation added more than 2 million households in the 12 months that ended March 31, about triple the annual average for the previous four years. Most of the gain came from baby boomers, but young adults are hitting the road as well.





The recession had knocked overall U.S. interstate migration to a post-World War II low, but last year the number of people ages 25 to 29 who moved across state lines reached its highest level in 13 years, said William Frey, a demographer at the Brookings Institution.


Frey called the shift significant: "They're leading indicators of migration coming for the broader population."


Laurie Brown, 26, said she was "completely broke" when she moved back into her parents' house near Tahoe City, Calif., in early March 2011. She came home with college loans to pay and other debt from bouncing from one place to the next.


"At first, I thought I'd be there only two months," she said.


But Brown soon realized just how tough the job market was. She had a bachelor's degree, magna cum laude, in business communications from George Fox University in Newburg, Ore., but the best she could find after returning home was busing and waiting tables at a restaurant in Tahoe City.


"I was really humbled," she said. "It made me feel like I wasn't an adult, like you're back in high school." Once a week, she got together for happy hour with three high-school buddies who were all in the same boat: college graduates living at home again. "We were kind of a support group," she said.


Then in late April, after finding full-time work at a nonprofit youth development and literacy program in the Tahoe area, Brown moved into an apartment about 15 minutes from her parents' home.


"In some ways it was a blessing in disguise," she said of her 14 months living with her mother and father. Although it was hard at times to adjust, she said, "it was really nice to spend time with my parents. I was able to reconnect with them."


During the recession and slow recovery, young people better educated than their parents' generation have struggled to compete with older workers in a job market with several unemployed people for every opening. That compares with about two people unemployed for every job opening before the 2007-09 recession.


Without sufficient incomes, they delayed getting married and having children, and simply stayed where they could pay little or no rent.


The result was that 2 million more adults ages 18 to 34 were living under their parents' roofs last year than four years earlier, according to an analysis of census data by Timothy Dunne, an economist at the Federal Reserve Bank of Cleveland.


Over the last year, the jobless rate of those ages 25 to 34 has dropped a little more sharply than it has for the overall population. It fell to 7.9% in November from 9% at the start of the year, compared with a decline to 7.7% from 8.3% for all workers.


"With stronger economic fundamentals, the process will pick up speed," Dunne said. "I think there's pressure. Households can delay formation for only so long."


People tend to move long distances for new jobs.


A week ago, Kevin Ratz, 27, hitched a U-haul to his Ford pickup, loaded the trailer with furniture, stereo equipment and skis, and drove to Chicago.


Ratz left behind his parents' suburban Detroit home, where he had stayed in his childhood room for the last two years. The room was pretty much unchanged, with its sports-car posters on the wall and youth-hockey trophies lining the bookshelf.


One big reason he moved back in with his parents was the weak job market for young pilots. Although he had a degree in aviation from Western Michigan University and some experience as a flight instructor, he found few well-paying openings in the field.





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Lebanese men 'lost' to Syria deepen the divide in Tripoli









TRIPOLI, Lebanon — Late that evening, Abdel Hakim Ibrahim finally confirmed his father's worst fear: He had left for Syria.


"I've crossed the border: Please forgive me," he said in a text message as midnight approached. "God be with you."


That was the last his family heard from Ibrahim, 19, a student described as introverted and pious.





Ibrahim is among Lebanon's lost young men — 21 who reportedly disappeared into neighboring Syria one evening late last month and walked straight into a Syrian army ambush. He and the others are believed to have been killed, though there has been no official confirmation of their fate.


The incident has sparked a new spasm of sectarian bloodletting in this deeply divided northern Lebanese city, where the war in Syria has revived smoldering animosities. Some in the Sunni Muslim majority view the slayings as cold-blooded murder — many suspect the men were betrayed — and blame the city's Alawite minority, members of the same sect as Syrian President Bashar Assad.


All of the victims were Sunni. Alawite leaders have disavowed any responsibility.


On Dec. 2, Syrian state television aired video of blood-streaked bodies described as those of some of the 21 Lebanese "terrorists" who, the report said, had infiltrated Syria and been cut down. They intended to join the multitudes of foreign militants seeking to overthrow Assad, according to the official Syrian account.


But some families of the missing here insist that their sons were on a humanitarian mission, not a militant one. The men were unarmed when they were killed, say the distraught relatives. Some have recognized their sons in the official Syrian video and other images that have emerged of the dead.


"Abdel Hakim didn't know anything about fighting," Henad Hassan Ali, the mother of Ibrahim, said in an interview Friday at her home in Tripoli's hillside Mankoubin district, where five of the missing men resided. "He had no training. He didn't know about weapons. He hated even to get a bloody nose."


Tripoli, Lebanon's second city, has taken on the appearance of a war zone, a kind of mirror image of strife-torn Syria. Lebanese army tanks rumble down streets, and checkpoints block intersections. Sniper rounds and grenade explosions sound in the distance. A trip to Mankoubin involves multiple detours to avoid sniper fire.


At least 13 people have been reported killed and scores wounded this week in the latest outbreak of violence between rival neighborhoods in Tripoli that are on different sides of the Syrian conflict. Sunni gunmen have been exchanging fire with their counterparts in Jabal Mohsen, an Alawite bastion.


Lebanese and Syrian authorities are negotiating the return of the young men's bodies to Lebanon. The first remains may be repatriated Saturday, beginning what is likely to be a series of incendiary funerals.


"Tripoli is boiling," said one veteran of this city's seemingly endless sectarian conflicts.


It is no secret that Lebanese and other fighters have, for more than a year, been slipping into Syria from northern Lebanon, joining Sunni-dominated rebel units. Sympathy for the rebel cause is prevalent in Sunni communities here; the red, green, and black rebel tricolor is hoisted from homes and scrawled on walls. Weapons have headed north, and a steady flow of wounded and exhausted rebel fighters has come south for medical treatment and rest.


In April, one of Lebanon's most wanted men — Abdel Ghani Jawhar, a master bomb maker who headed the Al Qaeda-inspired Fatah Islam group — was reported killed in Syria in clashes with Syrian troops.


The smuggling routes between the two nations are well-established and heavily used. How, then, did the young men wander into an ambush? Family members suspect that the whole operation was a setup, or that the men were betrayed.


"The Syrians should have surrounded them and arrested them, interrogated them," said Ibrahim's mother, who added that she still holds out faint hope her son may be alive. "There was no need to kill them."


Her son's image has not been seen among the photos of the dead.


Some families have called for revenge. Ibrahim's father said he had no doubt what he would do were his son's killers to be brought to him. "I would kill them," he said.


His wife disagreed. "Only God has the right to take a life," said the mother of 10, speaking as her other children watched and listened in the family's simple home, where there has been no running water or electricity for 10 days — part of a general pattern of government abandonment, according to residents. "God did not tell us to kill Christians or Alawites or Muslims."





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Exclusive: Google to replace M&A chief












SAN FRANCISCO (Reuters) – Google Inc is replacing the head of its in-house mergers and acquisitions group, David Lawee, with one of its top lawyers, according to a person familiar with the matter.


Don Harrison, a high-ranking lawyer at Google, will replace Lawee as head of the Internet search company‘s corporate development group, which oversees mergers and acquisitions, said the source, who spoke anonymously because he was not authorized to speak publicly.












Google is also planning to create a new late-stage investment group that Lawee will oversee, the source said.


Google declined to comment. Lawee and Harrison could not immediately be reached for comment.


One of the Internet industry’s most prolific acquirers, Google has struck more than 160 deals to acquire companies and assets since 2010, according to regulatory filings. Many of Google’s most popular products, including its online maps and Android mobile software, were created by companies or are based on technology that Google acquired.


Harrison, Google’s deputy general counsel, will head up the M&A group at a time when the company is still in the process of integrating its largest acquisition, the $ 12.5 billion purchase of smartphone maker Motorola Mobility, which closed in May.


And he takes over at a time when the Internet search giant faces heightened regulatory scrutiny, with the U.S. Federal Trade Commission and the European Commission conducting antitrust investigations into Google’s business practices. Several recent Google acquisitions have undergone months of regulatory review before receiving approval.


As deputy general counsel, Harrison has been deeply involved in the company’s regulatory issues and many of its acquisitions. He joined Google more than five years ago and has completed more than 70 deals at the company, according to biographical information on the Google Ventures website.


Harrison is an adviser to Google Ventures, the company’s nearly four-year old venture division which provides funding for start-up companies.


While most of Google’s acquisitions are small and mid-sized deals that do not meet the threshold for disclosure of financial terms, Google has a massive war chest of $ 45.7 billion in cash and marketable securities to fund acquisitions.


Lawee, who took over the M&A group in 2008, has had hits and misses during his tenure. Google shut down social media company Slide one year after acquiring it for $ 179 million, for example.


The planned late-stage investment group has not been finalized, the source said. The fund might operate separately from Google Ventures, according to the source.


“Think of it as a private equity fund inside of Google,” the source said.


The company recently said it would increase the cash it allocates to Google Ventures to $ 300 million a year, up from $ 200 million, potentially helping it invest in later-stage financing rounds.


Google finished Friday’s regular trading session down 1 percent, or $ 6.92, at $ 684.21.


(Reporting By Alexei Oreskovic; editing by Carol Bishopric and Jim Loney)


Wireless News Headlines – Yahoo! News


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Viral rapper PSY apologizes for anti-US protests


South Korean rapper and Internet sensation PSY is apologizing to Americans for participating in anti-U.S. protests several years ago.


Park Jae-sang, who performs as PSY, issued a statement Friday after reports surfaced that he had participated in concerts protesting the U.S. military presence in South Korea during the early stages of the Iraq war.


At a 2004 concert, the "Gangnam Style" rapper performs a song with lyrics about killing "Yankees" who have been torturing Iraqi captives and their families "slowly and painfully." During a 2002 concert, he smashed a model of a U.S. tank on stage.


"While I'm grateful for the freedom to express one's self, I've learned there are limits to what language is appropriate and I'm deeply sorry for how these lyrics could be interpreted," he wrote in the statement. "I will forever be sorry for any pain I have caused by those words."


The 34-year-old rapper says the protests were part of a "deeply emotional" reaction to the war and the death of two Korean school girls, who were killed when a U.S. military vehicle hit them as they walked alongside the road. He noted anti-war sentiment was high around the world at the time.


PSY attended college in the U.S. and says he understands the sacrifices U.S. military members have made to protect South Korea and other nations. He has recently performed in front of servicemen and women.


"And I hope they and all Americans can accept my apology," he wrote. "While it's important that we express our opinions, I deeply regret the inflammatory and inappropriate language I used to do so. In my music, I try to give people a release, a reason to smile. I have learned that thru music, our universal language we can all come together as a culture of humanity and I hope that you will accept my apology."


His participation in the protests was no secret in South Korea, where the U.S. has had a large military presence since the Korean War, but was not generally known in America until recent news reports.


PSY did not write "Dear American," a song by the Korean band N.EX.T, but he does perform it. The song exhorts the listener to kill the Yankees who are torturing Iraqi captives, their superiors who ordered the torture and their families. At one point he raps: "Kill their daughters, mothers, daughters-in-law, and fathers/Kill them all slowly and painfully."


PSY launched to international acclaim based on the viral nature of his "Gangnam Style" video. It became YouTube's most watched video, making him a millionaire who freely crossed cultural boundaries around the world. Much of that success has happened in the U.S., where the rapper has managed to weave himself into pop culture.


He recently appeared on the American Music Awards, dancing alongside MC Hammer in a melding of memorable dance moves that book-end the last two decades. And the Internet is awash with copycat versions of the song. Even former Republican Sen. Alan Simpson, the 81-year-old co-chairman of President Barack Obama's deficit commission, got in on the fun, recently using the song in a video to urge young Americans to avoid credit card debt.


It remains to be seen how PSY's American fans will react. Obama, the father of two pop music fans, wasn't letting the news change his plans, though.


Earlier Friday, the White House confirmed Obama and his family will attend a Dec. 21 charity concert where PSY is among the performers. A spokesman says it's customary for the president to attend the "Christmas in Washington" concert, which will be broadcast on TNT. The White House has no role in choosing performers for the event, which benefits the National Children's Medical Center.


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The New Old Age Blog: A Son Lost, a Mother Found

My friend Yvonne was already at the front door when I woke, so at first I didn’t realize that my mother was missing.

It was less than a week after my son Spencer died. Since that day, a constant stream of friends had been coming and going, bringing casseroles and soup, love, support and chatter. Mom hated it.

My 94-year-old mother, who has vascular dementia, has been living in my home in upstate New York for the past few years. Like many with dementia, mom is courteous but, underneath, irascible. Pride defines her, especially pride in her Phi Beta Kappa intellect. She hates to be confronted with how she has become, as she calls it, “stupid.”

The parade of strangers confused her. She had to be polite, field solicitous questions, endure mundane comments. She could not remember what was going on or why people were there. It must have been stressful and annoying.

That night, like every night since the state troopers brought the news, I woke hourly, tumbling in panic. As if it were not too late to save my son. Mom knew something was wrong, but she could not remember what. As I overslept that morning, she must have decided enough was enough. She was going home.

In a cold sky, the sun blazed over tall pines. As I opened the door, the dogs raced out to greet Yvonne and her two housecleaners. Yvonne often brags about her cleaning duo. They were her gift to me. They were going to clean my house before the funeral reception, which was scheduled for later that week. This was a very big gift because, like my mother before me, I am a very bad housekeeper.

Mom’s door was shut. I cautioned the housecleaners to avoid her room as I showed them around. Yvonne went to the kitchen to listen to the 37 unheard messages on my answering machine; the housecleaners went out to their van to get their instruments of dirt removal.

I ducked into Mom’s room to warn her about the upcoming noise. The bed was unmade; the floor was littered with crumpled tissues; the room was empty.

Normally, I would have freaked out right then. I knew Mom was not in the house, because I had just shown the whole house to the cleaners. Although Mom doesn’t wander like some dementia patients, she does on occasion run away. But I could not muster a shred of anxiety.

“Yvonne,” I called, “did you see my mother outside?”

Yvonne popped her head into the living room, eyebrows raised.“Outside? No!” She was alarmed. “Is she missing?”

“Yeah,” I said wearily, “I’ll look.” I stepped out onto the front porch, tightening the belt of my bathrobe and turning up the collar. Maybe she had walked off into the woods. The dogs danced around my legs, wanting breakfast.

I had no space left in my body to care. Either we would find her, or we would not. Either she was alive, or she was not. My child was gone. How could I care about anything ever again?

Then I saw my car was missing. My mouth fell open and my eyeballs rolled up to the right, gazing blindly at the abandoned bird’s nest on top of the porch light: What had I done with the keys?

Mom likes to run away in the car when she is angry. She used to do it a lot when my father was still alive — every time they fought. Since Mom took off in my car almost a year ago, after we had had a fight, I’d kept the keys hidden. Except for this week; this week, I had forgotten.

I was reverting to old habits. I had left the doors unlocked and the keys in the cupholder next to the driver’s seat. Exactly like Mom used to do.

“Uh-oh,” I said aloud. Mom was still capable of driving, even though she did not know where she was going. I just really, really hoped that she didn’t hurt anybody on the road. I pulled out my cellphone, about to call the police.

“Celia!” Yvonne shouted from the kitchen. She hurried up behind me, excited. “They found your mother. There are two messages on your machine.”

At that very moment, Mom was holed up at the College Diner in New Paltz, a 20-minute drive over the mountain, through the fields, left over the Wallkill River and away down Main Street.

Yvonne called the diner. They promised to keep the car keys until someone arrived. By that time, Yvonne had to go to work. She drove my friend Elizabeth to the diner, and Elizabeth drove Mom home in my car.

Half an hour later, they walked in the front door. Mom’s cheeks were rouged by the chill air and her eyes sparkled, her white hair riffing with static electricity. “Hello, hello,” she sang out. “Here we are.” She was wearing the flannel nightgown and robe I had dressed her in the night before. It was covered by her oversized purple parka, and her bare feet were shoved into sneakers.

I started laughing as soon as I saw her. I couldn’t help it. Elizabeth and Mom started laughing too. “You had a big adventure,” I said, hugging them both. “How are you?”

“I’m just marvelous,” said my mother. Mom always feels great after doing something rakish. We settled her on the sofa with her feet on the ottoman. By the time I got her blanket tucked in around her shoulders, she had fallen asleep.

Elizabeth couldn’t stop laughing as she described the scene. “Your mother was holding court in this big booth. She was sitting there in her nightgown and her parka, talking to everybody, with this plate of toast and coffee and, like, three of the staff hovering around her.”

The waitress said Mom seemed “a little disoriented” when she got there. Mom said she was meeting a friend for breakfast, but since she was wearing a nightgown and didn’t know whom she was meeting or where she lived, the staff thought there might be a problem. They convinced Mom to let them look in the glove compartment of the car, where they found my name and number.

It was then that I realized I was laughing – something I’d thought I would never be able to do again. “Elizabeth, Elizabeth, I’m laughing,” I said.

“Ha, ha, ha,” laughed Elizabeth, holding her belly.

“Ha, ha, ha,” I laughed, rolling on the floor.

And she who gave me life, who had suffered the death of my child and the extinction of her own intellect, snoozed on: oblivious, jubilant, still herself, still mine.

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Former IndyMac execs told to pay FDIC $169 million









Three former IndyMac Bank executives must pay the government $169 million for their role in the Pasadena lender's collapse, delivering a victory to the Federal Deposit Insurance Corp. in its efforts to recover losses from the financial crisis.

In verdicts delivered Friday, jurors in federal court in Los Angeles agreed with the government's claim that the executives, who ran a construction-lending division at IndyMac, had been negligent in approving 23 loans to developers and homebuilders who never repaid them.

Lawyers for the FDIC had argued that the executives — Scott Van Dellen, Richard Koon and Kenneth Shellem — violated bank safety standards in their eagerness to reap bonuses for generating higher volumes of the development and construction loans.





"The jurors gave us everything we asked for," said Thomas D. Long, an attorney from the outside law firm, Nossaman LLP, that represented the FDIC. "We are proud of and grateful to the jury for holding the bankers accountable and issuing the right judgment in a very important case related to the nation's financial crisis."

The FDIC and defense attorney Damian Martinez did not immediately respond to requests for comment. Martinez had argued that the defendants could not have foreseen the huge downturn in the housing market that punished IndyMac and other mortgage and construction lenders.

While not the largest bank to fail in recent years, IndyMac was the costliest to the nation's deposit insurance fund, with a loss of $13 billion. Socked by enormous losses, especially on home loans made with little verification of borrowers' incomes, it failed after a run on its deposits in 2008.

The FDIC victory contrasts with mixed results obtained by the Securities and Exchange Commission in its pursuit of damages against financial executives accused of contributing to the financial crisis.

In one setback involving wide-ranging civil fraud claims against former IndyMac Chairman Michael Perry, a federal judge in Los Angeles tossed out nearly the entire SEC lawsuit. Perry settled the single remaining negligence claim in October for $80,000.

"The contrast is striking," said John C. Coffee, a Columbia law school expert in fraud claims, contending that the SEC's own legal staff is weak. "If you want a large recovery, you need a private law firm that can staff the case with the bodies that it takes."

The FDIC lawsuit, filed in July 2010, went to trial in mid-November. It was the first of 39 suits the FDIC has filed against 308 insiders at banks that have failed in the five years since the subprime mortgage meltdown triggered the Great Recession.

The agency has settled before trial with some bank officers and directors.

Those include a settlement of up to $64 million with directors and officers of Washington Mutual Bank, the giant Seattle savings and loan whose collapse in 2008 was by far the biggest bank failure in U.S. history, and another $125 million settlement with the parent company, Washington Mutual Inc.

An FDIC lawsuit blaming Perry for the thrift's collapse is pending. A spokesman for the agency said the FDIC made a previously undisclosed settlement of $1.4 million with Richard Wohl, IndyMac's former president, most of it paid by officers and directors insurance.

It was unclear how much of the award Friday would be paid. The FDIC had hoped to recover funds from $80 million in insurance policies covering civil wrongdoing by IndyMac officers and directors, but another federal judge has ruled that insurance can't be tapped in this case. The FDIC has appealed that ruling.

scott.reckard@latimes.com





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Suspect in Northridge killings had violated probation









The man accused of killing four people at a Northridge home over the weekend violated his probation two months before the mass killing but managed to avoid being sent back to prison, interviews and records show.


Los Angeles County probation officials recommended at a September sentencing hearing that the man serve prison time after he was arrested on a drug possession charge.


Instead, Van Nuys Superior Court Judge Jessica Silvers ordered Ka Pasasouk to attend a drug treatment program and be released to the oversight of the Probation Department, according to court records and law enforcement officials.





But the Probation Department argued that Pasasouk's extensive criminal record — including convictions for assault and robbery — warranted prison time.


"The defendant is an ineligible and unsuitable candidate for continued community supervision," the probation report stated. "It is recommended that probation be denied and the defendant be sentenced to state prison."


In an interview Thursday, Reaver Bingham, Los Angeles County deputy chief of adult field services, said his department's recommendation was also based on the fact that Pasasouk did not report to his probation officer in one instance before the September hearing. He missed a second appointment in November, Bingham said.


At the time of the slayings, probation officials were preparing a warrant for his arrest.


Court spokesman Mary Hearn said Thursday that all judges are forbidden by law to comment on pending cases and that Silvers would not discuss the case.


Pasasouk is accused of fatally shooting four people early Sunday outside a home in the 17400 block of Devonshire Street in Northridge. Three of the victims were wearing hooded sweat shirts and were about two feet apart with at least one bullet wound each to the head.


The fourth victim was farther away and appeared as if he was trying to run to the backyard when he was shot. He had at least one gunshot wound, according to the source.


Los Angeles County coroner's officials identified the dead as Amanda Ghossein, 24, of Monterey Park; Jennifer Kim, 26, of Montebello; Robert Calabia, 34, of Los Angeles; and Teofilo Navales, 49, of Castaic.


Coroner's spokesman Ed Winter said Los Angeles police had placed a security hold on any additional information about the deaths, and police have not commented on a motive.


But law enforcement sources told The Times that the killings appeared to stem from a dispute over personal property, including a computer. The sources, who spoke on the condition of anonymity because the case was ongoing, said detectives were surprised that the dispute would have led to multiple deaths.


The suspects — Pasasouk, 31, of Los Angeles; Howard Alcantara, 30, of Glendale; Donna Rabulan, 30, of Los Angeles; and Christina Neal, 33, of Los Angeles — appeared before Judge Joe M. Bonaventure in Las Vegas on Thursday and waived their extradition rights.


It was not clear when the suspects would be moved. Los Angeles prosecutors have yet to file charges in the case.


Court records show that Pasasouk has an extensive criminal record. Last year, he pleaded no contest to unlawful taking of a vehicle and was sentenced to state prison (he was on probation for that offense at the time of the killings). In 2006, he pleaded guilty to second-degree robbery and assault likely to produce great bodily injury and sentenced to state prison. In 2004, he pleaded guilty and no contest in separate cases again involving unlawful taking of a vehicle.


At the September court hearing, Pasasouk pleaded no contest to the drug possession charge. At a follow-up hearing in November, Pasasouk admitted that he had failed to complete required drug treatment program. Another progress report was scheduled for January. Details of the hearings were first reported by the Los Angeles Daily News.


In late November, Pasasouk failed to appear for a meeting with his probation officer. Bingham said at that point, his department began looking for him and processing an arrest warrant.


He added that the department was now "looking at every aspect of this case relative to our supervision with a view toward determining if there is anything that needs to be done differently."


andrew.blankstein@latimes.com


frank.shyong@latimes.com





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George Zimmerman sues NBC and reporters


ORLANDO, Fla. (AP) — George Zimmerman sued NBC on Thursday, claiming he was defamed when the network edited his 911 call to police after the shooting of Trayvon Martin to make it sound like he was racist.


The former neighborhood watch volunteer filed the lawsuit seeking an undisclosed amount of money in Seminole County, outside Orlando. Also named in the complaint were three reporters covering the story for NBC or an NBC-owned television station.


The complaint said the airing of the edited call has inflicted emotional distress on Zimmerman, making him fear for his life and causing him to suffer nausea, insomnia and anxiety.


The lawsuit claims NBC edited his phone call to a dispatcher in February. In the call, Zimmerman describes following Martin in the gated community where he lived, just moments before he fatally shot the 17-year-old teen during a confrontation.


"NBC saw the death of Trayvon Martin not as a tragedy but as an opportunity to increase ratings, and so set about to create a myth that George Zimmerman was a racist and predatory villain," the lawsuit claims.


NBC spokeswoman Kathy Kelly-Brown said the network strongly disagreed with the accusations made in the complaint.


"There was no intent to portray Mr. Zimmerman unfairly," she said. "We intend to vigorously defend our position in court."


Three employees of the network or its Miami affiliate lost their jobs because of the changes.


Zimmerman is charged with second-degree murder but has pleaded not guilty, claiming self-defense under Florida's "stand your ground law."


The call viewers heard was trimmed to suggest that Zimmerman volunteered to police, with no prompting, that Martin was black: "This guy looks like he's up to no good. He looks black."


But the portion of the tape that was deleted had the 911 dispatcher asking Zimmerman if the person who had raised his suspicion was "black, white or Hispanic," to which Zimmerman responded, "He looks black."


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