Monopoly fans vote to add cat, toss iron tokens


PAWTUCKET, R.I. (AP) — The Scottie dog has a new nemesis in Monopoly after fans voted in an online contest to add a cat token to the property trading game, replacing the iron, toy maker Hasbro Inc. announced Wednesday.


The results were announced after the shoe, wheelbarrow and iron were neck and neck for elimination in the final hours of voting that sparked passionate efforts by fans to save their favorite tokens, and by businesses eager to capitalize on publicity surrounding pieces that represent their products.


The vote on Facebook closed just before midnight on Tuesday, marking the first time that fans have had a say on which of the eight tokens to add and which one to toss. The pieces identify the players and have changed quite a lot since Parker Brothers bought the game from its original designer in 1935.


Rhode Island-based Hasbro announced the new piece Wednesday morning.


Other pieces that contested for a spot on Monopoly included a robot, diamond ring, helicopter and guitar.


"I think there were a lot of cat lovers in the world that reached out and voted," said Jonathan Berkowitz, vice president for Hasbro gaming marketing.


The Scottie Dog was the most popular of the classic tokens, and received 29 percent of the vote, the company said. The iron got the fewest votes and was kicked to the curb.


The cat received 31 percent of votes for new tokens.


The results were not entirely surprising to animal lovers.


The Humane Society of the United States says on its website that there were more than 86 million cats living in U.S. homes, with 33 percent of households owning at least one feline in August 2011. Worldwide, there were an estimated 272 million cats in 194 countries in June 2008, according to London-based World Society for the Protection of Animals.


The online contest to change the tokens was sparked by chatter on Facebook, where Monopoly has more than 10 million fans. The initiative was intended to ensure that a game created nearly eight decades ago remains relevant and engaging to fans today.


"Tokens are always a key part of the Monopoly game ... and our fans are very passionate about their tokens," Berkowitz said.


Monopoly's iconic tokens originated when the niece of game creator Charles Darrow suggested using charms from her charm bracelet for tokens. The game is based on the streets of Atlantic City, N.J., and has sold more than 275 million units worldwide.


The other tokens currently in use are a racecar, a shoe, thimble, top hat, wheelbarrow and battleship. Most of the pieces were introduced with the first Parker Brothers iteration of the game in 1935, and the Scottie dog and wheelbarrow were added in the early 1950s.


The original version also included a lantern, purse, cannon and a rocking horse. A horse and rider token was used in the 1950s. During World War II, metal tokens were replaced by wooden ones, because metal was needed for the war effort.


"I'm sad to see the iron go," Berkowitz said. "Personally, I'm a big fan of the racecar so I'm very relieved it was saved but it is sad to see the iron go."


The social-media buzz created by the Save Your Token Campaign attracted numerous companies that pushed to protect specific tokens that reflect their products.


That includes garden tool maker Ames True Temper Inc. of Camp Hill, Penn., that spoke out in favor of the wheelbarrow and created a series of online videos that support the tool and online shoe retailer Zappos which pushed to save the shoe, Berkowitz said.


Versions of Monopoly with the new token will come out later this year.


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Monopoly: https://www.hasbro.com/monopoly


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Rodrique Ngowi can be reached at www.twitter.com/ngowi


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Well: Gluten-Free for the Gluten Sensitive

Eat no wheat.

That is the core, draconian commandment of a gluten-free diet, a prohibition that excises wide swaths of American cuisine — cupcakes, pizza, bread and macaroni and cheese, to name a few things.

For the approximately one-in-a-hundred Americans who have a serious condition called celiac disease, that is an indisputably wise medical directive.


One woman’s story of going gluten-free.



Now medical experts largely agree that there is a condition related to gluten other than celiac. In 2011 a panel of celiac experts convened in Oslo and settled on a medical term for this malady: non-celiac gluten sensitivity.

What they still do not know: how many people have gluten sensitivity, what its long-term effects are, or even how to reliably identify it. Indeed, they do not really know what the illness is.

The definition is less a diagnosis than a description — someone who does not have celiac, but whose health improves on a gluten-free diet and worsens again if gluten is eaten. It could even be more than one illness.

“We have absolutely no clue at this point,” said Dr. Stefano Guandalini, medical director of the University of Chicago’s Celiac Disease Center.

Kristen Golden Testa could be one of the gluten-sensitive. Although she does not have celiac, she adopted a gluten-free diet last year. She says she has lost weight and her allergies have gone away. “It’s just so marked,” said Ms. Golden Testa, who is health program director in California for the Children’s Partnership, a national nonprofit advocacy group.

She did not consult a doctor before making the change, and she also does not know whether avoiding gluten has helped at all. “This is my speculation,” she said. She also gave up sugar at the same time and made an effort to eat more vegetables and nuts.

Many advocates of gluten-free diets warn that non-celiac gluten sensitivity is a wide, unseen epidemic undermining the health of millions of people. They believe that avoiding gluten — a composite of starch and proteins found in certain grassy grains like wheat, barley and rye — gives them added energy and alleviates chronic ills. Oats, while gluten-free, are also avoided, because they are often contaminated with gluten-containing grains.

Others see the popularity of gluten-free foods as just the latest fad, destined to fade like the Atkins diet and avoidance of carbohydrates a decade ago.

Indeed, Americans are buying billions of dollars of food labeled gluten-free each year. And celebrities like Miley Cyrus, the actress and singer, have urged fans to give up gluten. “The change in your skin, physical and mental health is amazing!” she posted on Twitter in April.

For celiac experts, the anti-gluten zeal is a dramatic turnaround; not many years ago, they were struggling to raise awareness among doctors that bread and pasta can make some people very sick. Now they are voicing caution, tamping down the wilder claims about gluten-free diets.

“It is not a healthier diet for those who don’t need it,” Dr. Guandalini said. These people “are following a fad, essentially.” He added, “And that’s my biased opinion.”

Nonetheless, Dr. Guandalini agrees that some people who do not have celiac receive a genuine health boost from a gluten-free diet. He just cannot say how many.

As with most nutrition controversies, most everyone agrees on the underlying facts. Wheat entered the human diet only about 10,000 years ago, with the advent of agriculture.

“For the previous 250,000 years, man had evolved without having this very strange protein in his gut,” Dr. Guandalini said. “And as a result, this is a really strange, different protein which the human intestine cannot fully digest. Many people did not adapt to these great environmental changes, so some adverse effects related to gluten ingestion developed around that time.”

The primary proteins in wheat gluten are glutenin and gliadin, and gliadin contains repeating patterns of amino acids that the human digestive system cannot break down. (Gluten is the only substance that contains these proteins.) People with celiac have one or two genetic mutations that somehow, when pieces of gliadin course through the gut, cause the immune system to attack the walls of the intestine in a case of mistaken identity. That, in turn, causes fingerlike structures called villi that absorb nutrients on the inside of the intestines to atrophy, and the intestines can become leaky, wreaking havoc. Symptoms, which vary widely among people with the disease, can include vomiting, chronic diarrhea or constipation and diminished growth rates in children.

The vast majority of people who have celiac do not know it. And not everyone who has the genetic mutations develops celiac.

What worries doctors is that the problem seems to be growing. After testing blood samples from a century ago, researchers discovered that the rate of celiac appears to be increasing. Why is another mystery. Some blame the wheat, as some varieties now grown contain higher levels of gluten, because gluten helps provide the springy inside and crusty outside desirable in bread. (Blame the artisanal bakers.)

There are also people who are allergic to wheat (not necessarily gluten), but until recently, most experts had thought that celiac and wheat allergy were the only problems caused by eating the grain.

For 99 out of 100 people who don’t have celiac — and those who don’t have a wheat allergy — the undigested gliadin fragments usually pass harmlessly through the gut, and the possible benefits of a gluten-free diet are nebulous, perhaps nonexistent for most. But not all.

Anecdotally, people like Ms. Golden Testa say that gluten-free diets have improved their health. Some people with diseases like irritable bowel syndrome and arthritis also report alleviation of their symptoms, and others are grasping at gluten as a source of a host of other conditions, though there is no scientific evidence to back most of the claims. Experts have been skeptical. It does not make obvious sense, for example, that someone would lose weight on a gluten-free diet. In fact, the opposite often happens for celiac patients as their malfunctioning intestines recover.

They also worried that people could end up eating less healthfully. A gluten-free muffin generally contains less fiber than a wheat-based one and still offers the same nutritional dangers — fat and sugar. Gluten-free foods are also less likely to be fortified with vitamins.

But those views have changed. Crucial in the evolving understanding of gluten were the findings, published in 2011, in The American Journal of Gastroenterology, of an experiment in Australia. In the double-blind study, people who suffered from irritable bowel syndrome, did not have celiac and were on a gluten-free diet were given bread and muffins to eat for up to six weeks. Some of them were given gluten-free baked goods; the others got muffins and bread with gluten. Thirty-four patients completed the study. Those who ate gluten reported they felt significantly worse.

That influenced many experts to acknowledge that the disease was not just in the heads of patients. “It’s not just a placebo effect,” said Dr. Marios Hadjivassiliou, a neurologist and celiac expert at the University of Sheffield in England.

Even though there was now convincing evidence that gluten sensitivity exists, that has not helped to establish what causes gluten sensitivity. The researchers of the Australian experiment noted, “No clues to the mechanism were elucidated.”

What is known is that gluten sensitivity does not correlate with the genetic mutations of celiac, so it appears to be something distinct from celiac.

How widespread gluten sensitivity may be is another point of controversy.

Dr. Thomas O’Bryan, a chiropractor turned anti-gluten crusader, said that when he tested his patients, 30 percent of them had antibodies targeting gliadin fragments in their blood. “If a person has a choice between eating wheat or not eating wheat,” he said, “then for most people, avoiding wheat would be ideal.”

Dr. O’Bryan has given himself a diagnosis of gluten sensitivity. “I had these blood sugar abnormalities and didn’t have a handle where they were coming from,” he said. He said a blood test showed gliadin antibodies, and he started avoiding gluten. “It took me a number of years to get completely gluten-free,” he said. “I’d still have a piece of pie once in a while. And I’d notice afterwards that I didn’t feel as good the next day or for two days. Subtle, nothing major, but I’d notice that.”

But Suzy Badaracco, president of Culinary Tides, Inc., a consulting firm, said fewer people these days were citing the benefits of gluten-free diets. She said a recent survey of people who bought gluten-free foods found that 35 percent said they thought gluten-free products were generally healthier, down from 46 percent in 2010. She predicted that the use of gluten-free products would decline.

Dr. Guandalini said finding out whether you are gluten sensitive is not as simple as Dr. O’Bryan’s antibody tests, because the tests only indicate the presence of the fragments in the blood, which can occur for a variety of reasons and do not necessarily indicate a chronic illness. For diagnosing gluten sensitivity, “There is no testing of the blood that can be helpful,” he said.

He also doubts that the occurrence of gluten sensitivity is nearly as high as Dr. O’Bryan asserts. “No more than 1 percent,” Dr. Guandalini said, although he agreed that at present all numbers were speculative.

He said his research group was working to identify biological tests that could determine gluten sensitivity. Some of the results are promising, he said, but they are too preliminary to discuss. Celiac experts urge people to not do what Ms. Golden Testa did — self-diagnose. Should they actually have celiac, tests to diagnose it become unreliable if one is not eating gluten. They also recommend visiting a doctor before starting on a gluten-free diet.


This post has been revised to reflect the following correction:

Correction: February 4, 2013

An earlier version of this article misspelled the surname of Thomas O'Bryan. It is O'Bryan, not O'Brien.

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Time Warner to increase original programming on TNT and TBS









Time Warner plans to dramatically boost the amount of original programming on its TBS and TNT cable channels.


In a call with analysts Wednesday morning to discuss the media giant's fourth quarter and year-end results, Time Warner Chief Executive Jeff Bewkes said TBS and TNT would increase the number of episodes for its original shows by more than 40%.


The move comes as Time Warner prepares to ask pay-TV distributors for hefty increases in license fees to continue carrying the two channels. Bewkes has said he expects double-digit growth in subscription fees from the Turner channels, which also include CNN.





TNT has struggled lately. On Monday, its new medical drama "Monday Mornings" premiered to very disappointing ratings.


"We have more work to do," Bewkes said of TNT.


Perhaps in anticipation of News Corp.'s plans to launch as many as two national sports channels in the coming years, Bewkes also noted TBS and TNT have deals with Major League Baseball and  NCAA and NBA basketball. The Turner channels, he said, have the "strongest lineup of national sports rights than any other network other than ESPN."


Bewkes ducked a question about whether there will be more executive changes at Time Warner Inc.'s Warner Bros. unit in the wake of home entertainment head Kevin Tsujihara being tapped as the successor for Barry Meyer as chief executive of the Burbank movie and television studio.


Also in the running for the job at Warner Bros. was TV executive Bruce Rosenblum and movie chief Jeff Robinov. There has been speculation that one or both may bolt because they were passed over in favor of Tsujihara. 


"Kevin will be a great leader," Bewkes said. He added praise for Rosenblum and Robinov, but also noted there is a solid bench of executives under both of them. "We've got a really strong next generation." Bewkes has been criticized in some circles for his handling of the Meyer transition, which played out over two years and created a lot of tension at Warner Bros.


Bewkes also downplayed speculation the studio is at risk of losing its relationship with production and financing outfit Legendary Entertainment, which has become a source of hit movies, including "The Dark Knight" and "The 300." Legendary's deal with Warner Bros. is up at the end of the year.


"There is not contentiousness, there is problem-solving going on," he said, before adding "we're confident in our ability to generate a robust slate of films regardless of Legendary." 


For the fourth quarter of 2012, profits rose at Time Warner by 51% to $1.17 billion compared to $773 million for the same period in 2011. Revenue for the quarter was flat at $8.2 billion. Struggles at Time Inc., which is cutting its staff by 6%, led to a $60-million charge at that unit.


Time Warner's cable programming unit saw a 5% increase in revenue to $3.7 billion for the quarter. Subscription fees were up 7% and ad revenue improved by 3%. At Warner Bros., revenue fell 4% to $3.7 billion. The fourth quarter of 2012 included the home entertainment release of "Harry Potter and the Deathly Hallows: Part 2."


Time Warner also said it would buy back $4 billion in stock in 2013. Last year, it bought back $3.3 billion of its stock.


ALSO:


Kevin Tsujihara named new CEO of Warner Bros.


CBS executive says there is little backlash from Flacco swearing


Follow Joe Flint on Twitter @JBFlint.





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Friends, investigators seek answers in killing of O.C. couple









They met in college, two highly regarded basketball players who seemed to have the same winning touch on the court and off.


After blazing through high school and college with her outside shot, Monica Quan became the assistant women's basketball coach at Cal State Fullerton. Keith Lawrence, whose highlight shots are still there on his college website, became a campus officer at USC.


Now police in Irvine are scrambling for an explanation — and friends are looking for a way to express their shock — after Quan and Lawrence were found shot to death in their parked car on the top floor of a parking structure in an upscale, high-security condominium complex near UC Irvine.





The two had just announced their engagement and had recently moved into a condominium complex near Concordia University, where they played basketball and had gone on to earn their degrees.


Late Sunday, after a passerby noticed two people in the parked car, police said they found Lawrence slumped in the driver's side of his white Kia. Quan was next to him, also dead. The couple were shot multiple times, and authorities said they have tentatively ruled out the possibility of it being a murder-suicide or motivated by robbery. Nothing in the car, police said, seemed to be disturbed.


The couple's friends and family said they were shaken by the violent deaths of two people who seemed to have so much to offer.


Quan was a 2002 graduate of Walnut High School in the San Gabriel Valley, where she set school records for the most three-pointers in a season and a game. She played at Long Beach State and at Concordia, where she graduated in 2007. She went on to earn a master's degree before becoming the assistant coach at Fullerton.


Quan's father was the first Chinese American captain in the LAPD, and went on to become police chief at Cal Poly Pomona.


Quan was known for pulling students aside to offer encouragement, said Megan Richardson, a former player. Marcia Foster, the head basketball coach at Cal State Fullerton, described her assistant as a special person — "bright, passionate and empowering," she said.


Quan shared a love of basketball with her fiancee, Lawrence, whom she met at Concordia.


He too had been a standout basketball player, starting at Moorpark High, where he played point guard and shooting guard, said Tim Bednar, who coached Lawrence.


Bednar said that Lawrence, who came from a family of athletes, was talented, yet quiet and humble. After Lawrence graduated in 2003, he continued to participate in summer youth camps


When he returned for the camps, Bednar said, he was known as the "best basketball player that ever came through" the school.


"He was awesome with the kids," Bednar said. "They all wanted to be around Keith Lawrence."


Bednar heard from Lawrence when he needed a recommendation to become a police officer after graduating from the Ventura County Sheriff's Academy. In August, he was hired by USC's public safety department.


John Thomas, the executive director and chief of the department, said that Lawrence was an "honorable, compassionate and professional" member of the community.


"We are a better department and the USC campus community is a safer place as a result of his service," Thomas said in a statement.


On Monday night, Quan's friends gathered outside Walnut High School. One clutched a heart-shaped balloon, another carried a collage of her basketball playing days. Still another held a basketball.


Lawrence's friends and family put up a Facebook page. "RIP Keith Lawrence, you will be missed," it said simply. Within hours, 840 had left comments or indicated they "liked" it. Concordia put up a link to Lawrence's game-winning shot that carried the school into a post-season tournament.


Michelle Thibeault, 27, said in a Facebook message that she had known Quan for more than a decade. The two were on the same athletic teams and went to junior high and high school together. "Monica was loved by everyone," she said.


During a somber gathering at the Cal State Fullerton gymnasium Monday, Foster read a brief statement from Quan's brother Ryan.


"We just shared a moment of incredible joy on her recent engagement," he wrote, and then added: "A bright light was just put out."


nicole.santacruz@latimes.com


kate.mather@latimes.com


lauren.williams@latimes.com


Times staff writer John Canalis contributed to this report.





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Queen Latifah production co. strikes Netflix deal


NEW YORK (AP) — Queen Latifah's production company, Flavor Unit Entertainment, has signed a deal with Netflix.


The entertainer announced Tuesday that the multiyear deal gives the streaming service first look at titles from her production company. It starts this spring.


Latifah launched Flavor Unit in New Jersey with Shakim Compere. It's now based in Miami. The company has produced films such as "Bringing Down the House" and "Just Wright," both starring Latifah. It also produced the HBO film "Life Support," which earned a Golden Globe Award for Latifah.


Latifah said in a statement that Netflix is a "strong brand and the perfect place to showcase our projects."


Flavor Unit is also producing the upcoming Terrence Howard thriller "House of Bodies" and "Percentage," starring Ving Rhames and Macy Gray.


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Personal Health: Effective Addiction Treatment

Countless people addicted to drugs, alcohol or both have managed to get clean and stay clean with the help of organizations like Alcoholics Anonymous or the thousands of residential and outpatient clinics devoted to treating addiction.

But if you have failed one or more times to achieve lasting sobriety after rehab, perhaps after spending tens of thousands of dollars, you’re not alone. And chances are, it’s not your fault.

Of the 23.5 million teenagers and adults addicted to alcohol or drugs, only about 1 in 10 gets treatment, which too often fails to keep them drug-free. Many of these programs fail to use proven methods to deal with the factors that underlie addiction and set off relapse.

According to recent examinations of treatment programs, most are rooted in outdated methods rather than newer approaches shown in scientific studies to be more effective in helping people achieve and maintain addiction-free lives. People typically do more research when shopping for a new car than when seeking treatment for addiction.

A groundbreaking report published last year by the National Center on Addiction and Substance Abuse at Columbia University concluded that “the vast majority of people in need of addiction treatment do not receive anything that approximates evidence-based care.” The report added, “Only a small fraction of individuals receive interventions or treatment consistent with scientific knowledge about what works.”

The Columbia report found that most addiction treatment providers are not medical professionals and are not equipped with the knowledge, skills or credentials needed to provide the full range of evidence-based services, including medication and psychosocial therapy. The authors suggested that such insufficient care could be considered “a form of medical malpractice.”

The failings of many treatment programs — and the comprehensive therapies that have been scientifically validated but remain vastly underused — are described in an eye-opening new book, “Inside Rehab,” by Anne M. Fletcher, a science writer whose previous books include the highly acclaimed “Sober for Good.”

“There are exceptions, but of the many thousands of treatment programs out there, most use exactly the same kind of treatment you would have received in 1950, not modern scientific approaches,” A. Thomas McLellan, co-founder of the Treatment Research Institute in Philadelphia, told Ms. Fletcher.

Ms. Fletcher’s book, replete with the experiences of treated addicts, offers myriad suggestions to help patients find addiction treatments with the highest probability of success.

Often, Ms. Fletcher found, low-cost, publicly funded clinics have better-qualified therapists and better outcomes than the high-end residential centers typically used by celebrities like Britney Spears and Lindsay Lohan. Indeed, their revolving-door experiences with treatment helped prompt Ms. Fletcher’s exhaustive exploration in the first place.

In an interview, Ms. Fletcher said she wanted to inform consumers “about science-based practices that should form the basis of addiction treatment” and explode some of the myths surrounding it.

One such myth is the belief that most addicts need to go to a rehab center.

“The truth is that most people recover (1) completely on their own, (2) by attending self-help groups, and/or (3) by seeing a counselor or therapist individually,” she wrote.

Contrary to the 30-day stint typical of inpatient rehab, “people with serious substance abuse disorders commonly require care for months or even years,” she wrote. “The short-term fix mentality partially explains why so many people go back to their old habits.”

Dr. Mark Willenbring, a former director of treatment and recovery research at the National Institute for Alcohol Abuse and Alcoholism, said in an interview, “You don’t treat a chronic illness for four weeks and then send the patient to a support group. People with a chronic form of addiction need multimodal treatment that is individualized and offered continuously or intermittently for as long as they need it.”

Dr. Willenbring now practices in St. Paul, where he is creating a clinic called Alltyr “to serve as a model to demonstrate what comprehensive 21st century treatment should look like.”

“While some people are helped by one intensive round of treatment, the majority of addicts continue to need services,” Dr. Willenbring said. He cited the case of a 43-year-old woman “who has been in and out of rehab 42 times” because she never got the full range of medical and support services she needed.

Dr. Willenbring is especially distressed about patients who are treated for opioid addiction, then relapse in part because they are not given maintenance therapy with the drug Suboxone.

“We have some pretty good drugs to help people with addiction problems, but doctors don’t know how to use them,” he said. “The 12-step community doesn’t want to use relapse-prevention medication because they view it as a crutch.”

Before committing to a treatment program, Ms. Fletcher urges prospective clients or their families to do their homework. The first step, she said, is to get an independent assessment of the need for treatment, as well as the kind of treatment needed, by an expert who is not affiliated with the program you are considering.

Check on the credentials of the program’s personnel, who should have “at least a master’s degree,” Ms. Fletcher said. If the therapist is a physician, he or she should be certified by the American Board of Addiction Medicine.

Does the facility’s approach to treatment fit with your beliefs and values? If a 12-step program like A.A. is not right for you, don’t choose it just because it’s the best known approach.

Meet with the therapist who will treat you and ask what your treatment plan will be. “It should be more than movies, lectures or three-hour classes three times a week,” Ms. Fletcher said. “You should be treated by a licensed addiction counselor who will see you one-on-one. Treatment should be individualized. One size does not fit all.”

Find out if you will receive therapy for any underlying condition, like depression, or a social problem that could sabotage recovery. The National Institute on Drug Abuse states in its Principles of Drug Addiction Treatment, “To be effective, treatment must address the individual’s drug abuse and any associated medical, psychological, social, vocational, and legal problems.”

Look for programs using research-validated techniques, like cognitive behavioral therapy, which helps addicts recognize what prompts them to use drugs or alcohol, and learn to redirect their thoughts and reactions away from the abused substance.

Other validated treatment methods include Community Reinforcement and Family Training, or Craft, an approach developed by Robert J. Meyers and described in his book, “Get Your Loved One Sober,” with co-author Brenda L. Wolfe. It helps addicts adopt a lifestyle more rewarding than one filled with drugs and alcohol.

This is the first of two articles on addiction treatment.

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In S&P case, government says bond-rating firm put profits first








The government's lawsuit against Standard & Poor's tells a familiar story – of a big Wall Street firm allegedly putting profit above everything else.

In the civil fraud case against the bond-rating firm filed late Monday in Los Angeles, the government claims a “desire for increased revenue and market share” led S&P to “downplay and disregard the true extent of the credit risks” to “favor the interests of the large investment banks” and other issuers of mortgage bonds.

Like many cases stemming from the financial crisis, government investigators relied on records of emails and instant messages to help tell the story.

In April 2007, two analysts exchanged instant messages about S&P's willingness to rate mortgage bonds despite the possibility that the firm's rating model was underestimating growing risk in the home-loan market.


“We rate every deal,” one analyst said to another. “It could be structured by cows and we would rate it.”

By 2007, some inside S&P had been sounding the alarm over the subprime mortgage market. But the government says the company ignored its own analysis and “lulled the public into believing that its CDO ratings fully accounted for the existing and anticipated deterioration” of subprime mortgage bonds and securities known as collateralized debt obligations.

In a July 2007 email to an investment banking colleague, an S&P analyst wrote:

“The fact is, there was a lot of internal pressure in S&P to downgrade lots of deals earlier on before this thing started blowing up. But the leadership was concerned of p*ssing off too many clients and jumping the gun ahead of Fitch and Moody's.”

The investment banker replied: “This might shake out a completely different way of doing biz in the industry. I mean, come on, we pay you to rate our deals, and the better the rating the more money we make?!?! Whats up with that? How are you possibly supposed to be impartial????”

The 119-page lawsuit accuses S&P of issuing positive reviews on troubled mortgage securities whose subsequent failure helped cause the worst financial crisis since the Great Depression.

The better that S&P rated these securities, the less credit protection the firms issuing the securities would need, making them more profitable and translating into more business for S&P.

The suit cites Western Federal Corporate Credit Union, a San Dimas-based institution seized by regulators in March 2009 after incurring nearly $7 billion in losses from mortgage-backed securities. S&P stands accused of defrauding investors such as WesCorp., as the credit union was known.

S&P said Monday it would vigorously defend itself against the suit. The firm's attorney, superstar First Amendment lawyer Floyd Abrams, told CNBC Tuesday morning: “There was no fraud.”

The government claims that despite S&P's repeated claims that it provided independent analysis free of conflicts the credit rater nonetheless issued favorable ratings to its biggest customers – regardless of the bonds' underlying problems.

At one meeting in 2004, S&P executives met to discuss changing its process for assigning ratings. The proposed changes called for including “market insights,” “rating implications,” and polling a few investors but also investment banks and other firms packaging the securities.

One S&P official objected, but his colleagues ignored his concerns and changed the process anyway, according to the suit.

The suit alleges that S&P delayed updates to its ratings criteria and to its analytical models so that they would not be as accurate as S&P analysts believed they should have been.

S&P received negative feedback from Bear Stearns, the ill-fated investment bank eventually rescued by the federal government, and JPMorgan Chase & Co, according to the suit.

As the mortgage bubble was inflating, S&P saw increased competition from other rating firms, according to the suit.

At one point in 2004, an S&P analyst complained via email that the firm's more conservative rating criteria were hurting the bottom line.

“Losing one or even seven deals due to criteria issues, but this is so significant that it could have an impact on future deals,” the analyst wrote, according to the suit.

The government is pursuing its claims under the Financial Institutions Reform, Recovery and Enforcement Act, enacted after the savings and loan scandal of the late 1980s and early 1990s. The suits seeks civil damages for alleged mail and wire fraud and financial institution fraud. The law allows for a $1.1-million fine for each violation.

Abrams, in the CNBC interview, said S&P would not be making a First Amendment defense, which is how debt-rating firms have deflected such claims in the past.

The Justice Department was expected to formally announce the S&P case Tuesday at a news conference in Washington.


ALSO:


Justice Department sues S&P over mortgage bond ratings

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California sues BP and Arco, alleges violations at gas stations







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Suspected child molester left L.A. archdiocese for L.A. schools









A former priest and suspected child molester left employment with the Los Angeles archdiocese to work for the L.A. Unified School District, officials confirmed Sunday.


The former clergyman, Joseph Pina, did not work with children in his school district job, L.A. schools Supt. John Deasy said. He added that, as a result of the disclosures, Pina would no longer be employed by the nation's second-largest school system.


Over the weekend, Deasy was unable to pull together Pina's full employment history, but said the district already was looking into the matter of Pina's hiring.





"I find it troubling," he said of the disclosures about Pina. "And I also want to understand what knowledge that we had of any background problems when hiring him, and I don't yet know that."


L.A. Unified itself has come under fire in the last year for its handling of employees accused of sexual misconduct.


Pina, 66, was laid off from his full-time district job last year, but returned to work episodically to organize events. One event he may have helped organize was a ribbon-cutting Saturday for a new education facility. School district officials over the weekend, however, could not confirm that. Pina did not attend the event, and the district could not confirm payment for any help he may have provided.


Pina's name emerged in documents released by the archdiocese to comply with a court order. His case was one of many in which church officials failed to take action to protect child victims and in which first consideration was given to helping the offending priests rather than their victims, according to the documentation.


A just-released, internal 1993 psychological evaluation states that Pina "remains a serious risk for acting out." The evaluation recounts how Pina was attracted to a victim, an eighth-grade girl, when he saw her in a costume.


"She dressed as Snow White ... I had a crush on Snow White, so I started to open myself up to her," he told the psychologist. "I felt like I fell in love with her. I got sexually involved with her, but never intercourse. She was about 17 when we got involved sexually, and it continued until she was about 19."


In a report sent to a top Mahony aide, the psychologist expressed concern the abuse was never reported to authorities.


Pina's evaluation also includes a recommendation "to take appropriate measures and precautions to insure that he is not in a setting where he can victimize others." Pina continued to work as a pastor as late as March 1998.


School district officials could not verify Pina's hiring date over the weekend, but he took a job with L.A. Unified as the school system was carrying out the nation's largest school construction program. His job involved community outreach, building support for school projects, while also finding out communities' concerns and trying to address them, officials said. Such work was crucial to the program, because even though communities wanted new schools, their locations and other elements could prove controversial. Such projects frequently involved tearing down homes or businesses, environmental cleanups, and the blocking of streets and other disruptions.


"His duties were to rally community support and elicit community comments regarding schools in a neighborhood," district spokesman Tom Waldman said.


Pina's work did bring him into contact with families, frequently at public meetings organized to hear and address their concerns.


Projects that Pina worked on included a new elementary school in Porter Ranch and a high school serving the west San Fernando Valley, Waldman said. The high school, in particular, generated substantial public debate as a district team and a local charter school competed aggressively for control of the site.


The $19.5-billion building program is winding down, and, as a result, many jobs attached to it have come to an end. Pina's was among them.


The dedication he may have helped organize Saturday was for the Richard N. Slawson Southeast Occupational Center in Bell. Participants told KCET-TV, which first reported Pina's school employment, that he had assisted with community outreach on that project. The adult education and career technical education facility has 29 classrooms as well as health-career labs and child care for students. The school opened in August 2012.


Pina "was slated for some additional temporary work when the issue came to our attention last week and that work was canceled," Deasy said.


It may have been Pina who first alerted district officials that his name appeared in disclosed documents, Deasy said. Pina called a senior administrator in the facilities division. So far, no untoward issues have emerged regarding Pina's work for L.A. Unified.


howard.blume@latimes.com





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BlackBerry shares jump after Bernstein upgrades stock






TORONTO (Reuters) – Shares of BlackBerry rose more than 8 percent in on Monday after Bernstein Research said it was upgrading the stock to “outperform” after last week’s launch of the company’s new line of BlackBerry 10 smartphones.


The brokerage firm, which has not had an “outperform” rating on the stock for more than three years, also lifted its price target to $ 22 from $ 12, saying it has grown much more confident about the success of the smartphones, powered by the new BlackBerry 10 operating system.






Shares of BlackBerry, which is in the process of changing its legal name from Research In Motion, rose 8.9 percent to $ 14.18 in early Nasdaq trading. BlackBerry’s Toronto-listed shares were up 9.1 percent at C$ 14.21 at 10:30 EST.


The stock began trading under the “BBRY” symbol on Nasdaq on Monday and under the “BB” symbol on the Toronto Stock Exchange. The stock used to trade as “RIMM” on the Nasdaq and “RIM” on the TSX.


“We upgrade BlackBerry to outperform today as we believe BB 10 is set for a strong launch,” Bernstein analyst Pierre Ferragu said in a note to clients. “Even if the long-term prospects for the platform are very uncertain, we believe all is in place for BlackBerry 10 to enjoy a great debut.”


BlackBerry, a one-time pioneer in the smartphone industry, has ceded market share in recent years to the likes of Apple’s iPhone, Samsung’s Galaxy line and a slew of devices powered by Google Inc’s market-leading Android operating system.


In a make-or-break move to regain market share and return to profit, BlackBerry introduced its new line of smartphones to much fanfare on Wednesday. However, its stock fell more than 10 percent following the launch as investors were disappointed that the new smartphones will only go on sale in mid-March in the crucial U.S. market.


“The strength of this launch is overlooked by investors, creating strong opportunity to buy BlackBerry,” said Ferragu, adding that he expects strong initial corporate demand for the new devices.


“We believe BlackBerry should trade in the $ 20-$ 25 range once a decent launch for Blackberry 10 and a stabilized trajectory for fiscal year 2014 are priced in,” he said.


BlackBerry unveiled both a touch-screen device and a physical-keyboard device last week. While the traditional keyboard model only goes on sale in April, the touch-screen device is already on sale in the United Kingdom and hits store shelves in Canada this week.


Waterloo, Ontario-based BlackBerry said the U.S. launch was delayed until mid-March because U.S. wireless carriers have a longer testing phase than carriers in other countries. The devices, which are set to retail for C$ 599 ($ 600) in Canada, are currently attracting bids of more than $ 1,000 each on auction site ebay.com.


(Reporting by Euan Rocha; Editing by Lisa Von Ahn; and Peter Galloway)


Wireless News Headlines – Yahoo! News





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Shakira shows 1st baby photo, with father Pique


MADRID (AP) — Shakira is sharing the first public photograph of her recently born baby, with father Gerard Pique planting a kiss on his infant son's cheek.


The 36-year-old Colombian singer announced Monday on Twitter that the photo of "my two angels" could be seen on the website of UNICEF. She has urged people to donate to a baby shower on behalf of needy children helped by the U.N. children's agency.


The photo shows Milan, who was born Jan. 22 in Barcelona, apparently sleeping in the arms of his father. The 25-year-old Pique is an FC Barcelona soccer star.


Milan is the couple's first child.


Shakira has previously asked fans to make donations to UNICEF, helping to provide polio vaccinations and other aid. She works as a goodwill ambassador for the organization.


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