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.”

Thursday, June 5, 2008

On June 3rd, 2008, two United States Internet service providers (ISPs) announced they would begin tests to slow web access for their most active customers and charge them for extra speed. Comcast and Time Warner Cable, two of the largest ISPs in North America, both made separate announcements of their plans. The actions come in the wake of an investigation by the Federal Communications Commission (FCC), over whether Comcast had restricted some customers from sharing videos, music, and similar files. The FCC investigation led to a US Congress debate over whether and how much control ISPs should have over the flow of customer data.

Public interest groups complained in November 2007 to the FCC that Comcast had specifically targeted customers using applications that made use of the BitTorrent system, a popular form of file sharing. Free Press, an advocacy group that pushes for better oversight of cable operators such as Comcast, stated that Comcast practices were discriminatory towards users of the legal technology. “The cable companies see a hammer hovering above their heads and are scrambling to find ways to reduce the appearance of wrongdoing,” said Ben Scott, head of the group.

According to Roger Entner, a senior vice president from Nielsen IAG, as little as 5 percent of all Internet users may consume as much as 50 percent of all the bandwidth on the Internet. “This is the politically correct version of doing what Comcast had been doing before, though it takes the occasional [peer-to-peer] user off the hook,” Entner said. Sena Fitzmaurice, a Comcast spokesperson, said, “This says we won’t be looking at what type of traffic that there is, even though we still need to manage the network.”

Comcast’s tests are expected to begin in Chambersburg, Pennsylvania and Warrenton, Virginia.

While Comcast will attempt to throttle the speed of all its high-volume users, Time Warner Cable intends to use a different method. They will meter and bill clients, charging more money for faster speeds and larger amounts of transmitted data, functioning more like a traditional public utility, such as an electric company or cell phone service. Their metered billing test will begin on June 5 in Beaumont, Texas for newly enrolled customers. “Instead of raising prices across the board, consumers who are excessive users would pay,” said Alex Dudley, a Time Warner Cable spokesman. “It is clearly the fairest way to fund the investment that is going to be required to support that use.”

An Associated Press report that Time Warner Cable will bill customers between $29.95 to $54.90USD per month has been confirmed by the cable operator, with clients charged an extra $1 for each gigabyte (GB) by which they exceed their purchased plan. Art Brodsky, communications director of Public Knowledge, a consumer advocacy group in Washington D.C., has expressed concerns about the Time Warner Cable plan. Time Warner Cable’s most expensive offering, $54.90, comes with 15 megabits-per-second of data transfer speed and a 40 gigabyte limit on total data transfer.

“An HD (high-definition) movie is 8GB or so, three movies is more than half your allowance for a month, and heaven knows what else you might want to watch,” Brodsky says. “This is not a relieving congestion scheme as much as it is a rationing scheme. All it does is protect an inadequate infrastructure from the cable company.”

Wednesday, October 3, 2007

Wayne Simmons is running for the Freedom Party in the Ontario provincial election, in the Don Valley East riding. Wikinews’ Nick Moreau interviewed him regarding his values, his experience, and his campaign.

Wayne did not answer “Of the decisions made by Ontario’s 38th Legislative Assembly, which was the most beneficial to your this electoral district? To the province as a whole? Which was least beneficial, or even harmful, to your this riding? To the province as a whole?”

Stay tuned for further interviews; every candidate from every party is eligible, and will be contacted. Expect interviews from Liberals, Progressive Conservatives, New Democratic Party members, Ontario Greens, as well as members from the Family Coalition, Freedom, Communist, Libertarian, and Confederation of Regions parties, as well as independents.

Sunday, November 6, 2016

The following is the sixth and final edition of a monthly series chronicling the U.S. 2016 presidential election. It features original material compiled throughout the previous month after an overview of the month’s biggest stories.

In this month’s edition on the campaign trail: the Free & Equal Foundation holds a presidential debate with three little-known candidates; three additional candidates give their final pleas to voters; and past Wikinews interviewees provide their electoral predictions ahead of the November 8 election.

Thursday, July 3, 2008

Buffalo, New York — Developer and CEO of Savarino Companies, Sam Savarino, has confirmed to Wikinews that he has bought, and is planning to restore a severely damaged stable and livery on Buffalo’s West Side. The building partially collapsed on June 11, which originally caused 15 homes to be evacuated.

Savarino bought the building from owner Bob Freudenheim for US$1.00 and states that he hopes to save as much of the building as possible, including the facade, at least 20 feet of the side walls, all of the back walls including the elevator tower and if possible all three floors. There is one major downside to the purchase; he inherits the over $400,000 tax lien against the property.

“It was a “NYS Lotto” purchase (‘a dollar and a dream’). I do inherit the City’s lien of $400,000 though,” stated Savarino to Wikinews. The fee is what the city has been billed for the limited demolition it paid for before Savarino bought the building. Currently the city is suing Freudenheim to force him to pay for those fees.

The building is currently undergoing minor demolition in preparations to make the rest of it stable. Once complete, Savarino plans to evaluate the extent of the damage and begin his plans to make the building into residential living spaces.

“Only unstable parts are being demolished. We will see what we have to deal with as the demolition proceeds but tentative plans are for living units on two floors with parking on the ground floor,” stated Savarino. Construction is expected to begin as early as this year, but “more than likely next year,” he added.

Originally the city ordered an emergency demolition on the building after Freudenheim gave them permission to demolish it on June 12 during an emergency Preservation Board meeting. His reason was because he would not be “rehabilitating the building anytime soon.”

Freudenheim, along with his wife Nina, were part-owners of the Hotel Lenox at 140 North Street in Buffalo and were advocates to stop the Elmwood Village Hotel from being built on the Southeast corner of Forest and Elmwood Avenues. They also financially supported a lawsuit in an attempt to stop the hotel from being built. Though it is not known exactly how long Freudenheim has owned the stable, Wikinews has learned that he was the owner while fighting to stop the hotel from being built. Residents say that he has been the owner for at least 22 years. Residents successfully halted demolition after winning a restraining order in New York State Supreme Court, which will continue to monitor developments in the case. The next hearing is scheduled for September 2.

Savarino states his project could cost at least $3,500,000 and before construction can begin, all plans must be approved by the city’s planning board.

Monday, May 14, 2007

Buffalo, New York — A massive warehouse complex of at least 5 buildings caught on fire in Buffalo, New York on 111 Tonawanda Street, sending a plume of thick, jet black colored smoke into the air that could be seen as far away as 40 miles.

As of 6:40 a.m., the fire was under control, and firefighters were attempting to stop it from spreading, but could not get to the center of the fire because of severe amounts of debris. Later in the morning, the fire was extinguished.

“The fire is mostly under debris at this point. It’s under control, but it’s under some debris. We really can’t get to it. We’re just going to have to keep on pouring water on it so it doesn’t spread,” said Thomas Ashe, the fire chief for the North Buffalo based fire division who also added that at one point, at least 125 firefighters were on the scene battling the blaze. One suffered minor injures and was able to take himself to the hospital to seek medical attention.

Shortly after 8:00 p.m. as many as 3 explosions rocked the warehouse sending large mushroom clouds of thick black smoke into the air. After the third explosion, heat could be felt more than 100 feet away. The fire started in the front, one story building then quickly spread to three others, but fire fighters managed to stop the flames from spreading onto the 3 story building all the way at the back.

According to a Buffalo Police officer, who wished not to be named, the fire began at about 7:00 p.m. [Eastern time], starting as a one alarm fire. By 8:00 p.m., three fire companies were on the scene battling the blaze. Police also say that a smaller fire was reported in the same building on Saturday night, which caused little damage.

At the start of the fire, traffic was backed up nearly 4 miles on the 198 expressway going west toward the 190 Interstate and police had to shut down the Tonawanda street exit because the road is too close to the fire.

At one point, traffic on the 198 was moving so slow, at least a dozen people were seen getting out of their cars and walking down the expressway to watch the fire. That prompted as many as 10 police cars to be dispatched to the scene to force individuals back into their cars and close off one of the 2 lanes on the westbound side.

One woman, who wished not to be named as she is close to the owner of the warehouse, said the building is filled with “classic cars, forklifts, and money” and that owner “does not have insurance” coverage on the property. The building is not considered abandoned, but firefighters said that it is vacant.

Officials in Fort Erie, Ontario were also swamped with calls to fire departments when the wind blew the smoke over the Niagra River and into Canada.

It is not known what caused the fire, but a car is suspected to have caught on fire and there are reports from police and hazmat crews, that there were also large barrels of diesel fuel being stored in one building. Firefighters say the cause of the blaze is being treated as “suspicious.” The ATF is investigating the fire and will bring dogs in to search the debris.

Friday, July 17, 2009 Following similar threats by workers at New Fabris and Nortel, workers at JLG in Tonneins, France, threatened to blow up several platform cranes. The JLG factory announced in April 2009 that it will fire 53 of its 163 workers by the end of 2009, while the remaining 110 jobs will not be secure over the next 2 years.

JLG Tonneins was acquired in 2006 with its parent JLG Industries, a maker of aerial work platforms, by the U.S.-based Oshkosh Corporation. Despite being hugely profitable in the past, production has been much reduced since 2008 with the contraction of the construction industry and lower demand for its products. Despite excellent past results the new American management demanded sweeping cuts at the company.

In the view of locals, “the company’s actions are a disgrace given the expensive perks, such as official cars, for its corporate fat cats, compared to the sacrifice, silence, and dignity demanded by the company of those it has made redundant.”

The management offered severance pay of € 3,000 (US $4,200), however the workers demanded a severance package commensurate with “the wealth that their labor has generated.” Worker’s delegates requested a “supra-legal” payment of € 30,000, on Thursday 16 of July the management responded with a counter offer of € 16,000. On Thursday night the worker’s actions secured the € 30,000 settlement initially demanded.

Saturday, April 22, 2006

This week, the Public Broadcasting Service aired a NOVA program titled “Dimming the Earth”, which presented research by leading scientists on the complex systems of our global climate and human activity’s effect on it. One of the largest interactions (or “inputs”) humans have with the atmosphere is the ever-increasing use of fossil fuels. Consumption has risen 2% per year for this decade.

Fossil fuels burnt in factories and automobiles send their waste into our atmosphere in two forms. The first is CO₂ and other greenhouse gases, which have received substantial attention in the last few years because of the way they trap heat in the atmosphere. The second is the tiny particles of sulfur dioxide, soot and ash, which scientists call aerosols (basically smog). Research into understanding the negative health effects of air pollution has resulted in the development of catalytic converters for cars as well as devices to remove particulate solids from industrial waste before it reaches the air.

More recently, atmospheric scientists have come upon the phenomenon of the reduction of direct sunlight reaching Earth’s surface— observing a nearly a 5% decline between 1960 and 1990, with evidence of a recovery since then. This has been dubbed the “global dimming” effect, and is probably due to the way these aerosols act upon clouds. It is important to realise that this does not represent a net loss of this much sunshine to the climate system – if so, large temperature declines would have been observed. Instead, the sunshine is absorbed elsewhere in the system, with a much smaller net loss.

Clouds form when moisture gathers around airborne particles, such as pollen or dust. Clouds formed by the aerosol particles emitted by fossil fuel consumption are made of many more tiny droplets than “natural” clouds. These smog-created clouds have two notable effects: they shield sunlight from reaching Earth’s surface and, due to water’s reflective nature, the millions of tiny droplets suspended in them reflect light back into space, allowing even less light to reach Earth.

Many scientists now believe that global dimming caused by these pollutants has mitigated the temperature rises brought about by global warming. Over the last thirty years, Earth’s temperature has increased by about 0.5 oC.

In the absence of global dimming, however, the Earth might be 0.3 oC warmer than it currently is, suggesting that a “tug-of-war” exists between greenhouse gases and particulates released by burning fossil fuels. Efforts to mitigate the human health dangers of smog have allowed more heat into our atmosphere and brought about a sharper increase in global warming.

Dr. James E. Hansen, professor at Columbia University and the head of the Goddard Institute for Space Studies [1], believes that if we continue on our current pattern, this warming could be as much as five degrees in the next thirty years and ten to fourteen degrees over the course of the century. Such a temperature rise would devastate life on Earth, likely bringing on a cascade of self-reinforcing warming effects. Earth’s forests drying and burning, a steady thawing of the Greenland and arctic ice sheets, and, most dangerous of all, a release of the methane hydrates that are now frozen at the bottom of the oceans, could remake the planet into something inhospitable to human life. Dr. Hansen warns that, according to his research, man has just 10 years to reduce greenhouse gases before global warming and other responses to human activity by Earth’s climate reach a “tipping point”, becoming unstoppable.