Susan Powell's Father-in-Law Secretly Took 4,500 Pictures of Her

12/07/2012 at 07:30 PM EST

Wrapping up a year that has brought unimaginable frustration and heartbreak, Susan Powell's family marked the three-year anniversary of her disappearance at a ceremony this week near where her two sons are buried.

"It's a hard time of year," Susan's father, Chuck Cox, tells PEOPLE. "Our daughter's still missing. Someday, we will find out what happened to her."

He added that he is not sure what to make of a West Valley City, Utah, police announcement Thursday that their investigation into Susan's Dec. 6, 2009 disappearance remains active but "has been scaled down," with a reduction in the number of full-time investigators working the case.

The announcement came at the same time that more evidence emerged of the alleged obsession Susan's father-in-law, Steven Powell, had toward her. Authorities released nearly 4,500 pictures that they say he secretly took of her at home and elsewhere.

Cox says he's hopeful that the police are still doing everything possible to solve Susan's case, but he hasn't ruled out suing the department for failing to arrest Susan's husband, Josh Powell, for her murder.

More than two years after Susan's disappearance, Josh on Feb. 5 murdered the couple's two sons and committed suicide by blowing up his house.

Cox's lawyer, Anne Bremner, says Cox "goes back and forth" over whether to sue West Valley City. "He wants them to find her. A lawsuit can have a chilling affect on things."

Cox and Bremner say they do plan to file a lawsuit against the state of Washington for continuing to give Josh visitation with his children despite what they claim were mounting concerns regarding his mental stability.

Although Cox and the police believe that Josh Powell knew more than anyone what happened to Susan, they also strongly suspect that his father, Steven Powell, should still be looked at more closely.

Steven Powell

Ted S. Warren / AP

The Coxes hoped Steve Powell's voyeurism trial in May would unearth some answers but it did not. Powell invoked his Fifth Amendment right against self-incrimination when asked in jail about Susan.

In numerous interviews with PEOPLE, Steve and Josh Powell denied any involvement in Susan's disappearance and have suggested that she ran off with another man.

Steve Powell was prosecuted for surreptitiously photographing his neighbor's young daughters (and is serving a 30-month sentence), but the investigation also unearthed journals in which Powell described his interest in his daughter-in-law, as well as the thousands of photos, which were released Thursday to the Associated Press.

In a journal entry, Steven Powell recalls a sexually charged dream in which Susan asks him, “Do you think I would make a good wife for you?” None of the pictures show Susan naked, although there are images of her crotch and backside.

"We think he knows exactly where our daughter is," Cox says.

Once Susan disappeared, Josh sold the family's home in Utah and moved with the boys into Steven Powell's house in Puyallup, Wash., only about two miles from the Cox family.

On Thursday, families streamed to Puyallup’s Woodbine Cemetery to remember the Powell boys and other children who died tragically and to dedicate a memorial: a bronze angel inspired by the novella The Christmas Box, in which strangers learn the value of love following a child’s death.

The novella's author, Richard Paul Evans, also attended the dedication. The memorial is on a hill overlooking the boys' gravesites 75 yards away.

"We get a lot of support from a lot of people and we're going to make it through," Cox says.

Read More..

Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

Read More..

Priest abuse files may be released without church officials' names

In its landmark $660-million settlement with victims of sexual abuse five years ago, the Archdiocese of Los Angeles agreed to make public the confidential personnel records of all priests accused of molesting children.

Victims said the release of the files would provide accountability for church leaders who let pedophiles remain in ministry, and law enforcement officials suggested that the documents could lead to criminal cases against those in charge.

After years of delays and legal wrangling, the files are set to become public in coming weeks.

But the documents have been scrubbed of what many regard as the most important information: the identities of the members of the church hierarchy who reshuffled abusers.

The names of the former cardinal, Roger M. Mahony, and the bishops and vicars who handled molestation complaints for him have been redacted by church lawyers at the direction of a retired federal judge managing the files' release.

In handing down that decision last year, the judge, Dickran Tevrizian, said that the archdiocese had endured enough criticism and that he wanted to prevent the files from being used to "embarrass or to ridicule the Church." The documents in question include internal memos, Vatican correspondence and psychiatric reports.

"You know that the Church recycles priests. Now you want to know who in the clergy recycled. For what useful purpose? The case is settled," Tevrizian told lawyers for 562 people who settled sex-abuse claims against the archdiocese.

The terms of the agreement prohibit the archdiocese and the victims from appealing the redactions, but Los Angeles County Superior Court Judge Emilie H. Elias, who is overseeing the settlement, has the final say. She has ruled that "any other interested person or entity" can ask her to review Tevrizian's decisions on the files' release.

Some abuse victims are hoping the judge decides to release the full, unredacted files, saying that would be in keeping with the settlement. Manuel Vega, a retired police officer who settled with the archdiocese over his abuse as an altar boy in Oxnard, said the officials' names were essential in documenting the history of how the church handled allegations of child molestation.

"One of the first things I'm going to be looking for is, 'Who knew?' And who knew is what's going to be redacted," he said.

On Friday, The Times filed a motion urging Elias to overrule the redactions of church officials' names.

"Without this information, the public will never know what the church knew, and when, because the names that might demonstrate that particular church officials knew about more than one instance of misconduct — whether by a single priest or by multiple priests — will be forever hidden," lawyers for the newspaper wrote.

The accused clergy have filed their own objections to Tevrizian's order, contending that the files should remain sealed to protect the priests' privacy and other rights.

Lawyers for the archdiocese recently completed redacting the documents, a process that took over a year, and are awaiting Elias' final ruling. Archdiocese attorney J. Michael Hennigan said he opposed modifying Tevrizian's order because church leaders were eager to wrap up the "very expensive and painstaking" process.

"What we don't want to have to do is go back and redo it," Hennigan said.

After the scandal broke a decade ago, Mahony repeatedly pledged openness and transparency. He ordered the names of more than 200 accused abusers published in a 2004 report and apologized numerous times to victims. A spokesman for the archdiocese declined to say whether Mahony and other high-ranking church officials agreed that their names should be blacked out.

"This was the judge's order and if you have questions about it, you really should direct those questions to the judge," said spokesman Tod Tamberg.

Tevrizian declined to comment.

The archdiocese's lawyer said readers of the documents will not "have any trouble at all figuring out which black mark is Cardinal Mahony." The identities of others in the hierarchy, such as auxiliary bishops or the vicars who dealt with problem priests, may not be as apparent, he acknowledged. He said the archdiocese "potentially" would be willing to reveal redacted names in specific documents.

Lawyers for both sides said Tevrizian independently came up with the idea of redacting the hierarchy names. Raymond Boucher, the lead attorney for the victims, said the decision appeared to be an attempt to find some middle ground between his clients, who wanted all the files released without redactions, and the church, which argued that psychological records and other sensitive documents should be kept private.

Read More..

Morsi Defends Wide Authority in Egypt as Turmoil Rises

CAIRO — Egypt descended deeper into political turmoil on Thursday as the embattled president, Mohamed Morsi, blamed an outbreak of violence on a “fifth column” and vowed to proceed with a referendum on an Islamist-backed constitution that has prompted deadly street battles between his supporters and their secular opponents.

As the tanks and armored vehicles of an elite military unit ringed the presidential palace, Mr. Morsi gave a nationally televised address offering only a hint of compromise, while preserving his assertion of sweeping authority. His opponents quickly rejected, even mocked, his speech and vowed continued protests ahead of a planned Dec. 15 vote on the draft constitution.

Many said the speech had echoes of his predecessor, Hosni Mubarak, who saw conspiracy in the unrest that brought him down. Mr. Morsi said that corrupt beneficiaries of Mr. Mubarak’s autocracy had been “hiring thugs and giving out firearms, and the time has come for them to be punished and penalized by the law.” He added, “It is my duty to defend the homeland.”

Mr. Morsi, a former leader of the Muslim Brotherhood, spoke a day after the growing antagonism between his supporters and the secular opposition had spilled out into the worst outbreak of violence between political factions here since Gamal Abdel Nasser’s coup six decades ago. By the time the fighting ended, six people were dead and hundreds wounded.

The violence also led to resignations that rocked the government, as advisers, party members and the head of the commission overseeing a planned vote on a new constitution stepped down, citing the bloodshed and the president’s management of the political crisis.

Mr. Morsi also received a phone call from President Obama, who expressed his “deep concern” about the deaths and injuries overnight, the White House said in a statement.

“The president emphasized that all political leaders in Egypt should make clear to their supporters that violence is unacceptable,” the statement said, chastising both Mr. Morsi and the opposition leaders for failing to urge their supporters to pull back during the fight.

Prospects of a political solution also seemed a casualty, as both sides effectively refused to back down on core demands.

The opposition leadership refused to negotiate until Mr. Morsi withdrew a decree that put his judgments beyond judicial review — which he refused to do. And it demanded that a referendum on a new constitution be canceled, which he also refused.

The hostilities have threatened to undermine the legitimacy of the constitutional referendum with doubts about political coercion. The feasibility of holding the vote also appears uncertain amid attacks on party offices around the country and open street fighting in the shadow of the presidential palace.

Though Mr. Morsi spoke of opening a door for dialogue and compromise, leaders of the political opposition and the thousands of protesters surrounding his palace dismissed his conspiratorial saber rattling as an echo of Mr. Mubarak. And his tone, after a night many here view as a national tragedy, seemed only to widen the gulf between his Islamist backers and their secular opponents over his efforts to push through the referendum on an Islamist-backed charter approved over the objections of most liberal factions and the Coptic Christian church.

Outside the palace, demonstrators huddled around car radios to listen to Mr. Morsi’s words and mocked his attempts to blame outside infiltrators for the violence, which began when thousands of his Islamist supporters rousted an opposition sit-in.

“So we are the ones who attacked him, the ones who attacked the sit-in?” one protesters asked sarcastically. “So we are the ones with the swords and weapons and money?” asked another.

Some left for the headquarters of the Muslim Brotherhood, where a mob had broken in, looted offices, and made a bonfire out of the belongings of the group’s spiritual leader — until riot police officers chased them away with tear gas.

“I never thought I would say this, but even Mubarak was more savvy when he spoke in a time of crisis,” said Hossam Bahgat, executive director of the Egyptian Initiative for Personal Rights.

Two employees of The New York Times contributed reporting.

Read More..

No Grammy love for Justin Bieber, One Direction

LOS ANGELES (Reuters) – Irate fans of Justin Bieber and boy band One Direction took to social media on Thursday to voice their outrage after being snubbed by the Grammys for a chance to win the biggest honors in the music industry.

Indie-pop band fun and rapper Frank Ocean led the 2013 nominations, tying with The Black Keys, Mumford & Sons, Jay-Z and Kanye West for six nods. But The Recording Academy overlooked some of the year’s biggest and most commercially successful artists in Wednesday’s nominations.

While Bieber, 18, who won three American Music Awards in November, stayed quiet on his omission, his manager Scooter Braun took to Twitter.

“Grammy board u blew it on this one. the hardest thing to do is transition, keep the train moving. The kid delivered. Huge successful album, sold out tour, and won people over. … This time he deserved to be recognized,” Braun posted in a series of tweets.

Many of Bieber’s 31 million Twitter fans quickly followed suit, with hashtags such as #BieberForGrammys trending on the micro-blogging service.

The Canadian singer, who has never won a Grammy, in June released album “Believe,” showcasing a more grown-up image. The album, which produced top 10 hits “Boyfriend” and “As Long As You Love Me,” has sold more than 1.1 million copies.

British boy band One Direction was also left empty-handed despite their debut album “Up All Night” having topped the Billboard 200 album chart.

The quintet has performed sold-out shows across the world and won three MTV video music awards earlier this year.

The Grammy Awards are voted on by members of The Recording Academy and recognize achievement in 81 categories.

Lady Gaga, rapper Nicki Minaj and Korea’s Psy also failed to snag any nominations.

While Gaga hasn’t released new music this year, focusing on her global tour, Minaj released “Pink Friday: Roman Reloaded,” which topped the Billboard 200 chart and spawned singles such as “Starships.”

Psy may have YouTube’s most watched video ever with “Gangnam Style,” – over 897 million views – but he missed out on becoming the first Korean artist to receive a Grammy nod.

The Grammy Awards will be handed out at a live performance show and ceremony on February 10 in Los Angeles.

(Reporting By Piya Sinha-Roy; editing by Jill Serjeant and Todd Eastham)

Internet News Headlines – Yahoo! News

Read More..

Snake on a Plane - For Real - Forces Emergency Landing

People Pets

By Alison Schwartz

12/06/2012 at 07:55 PM EST

An Egyptian cobra, similar to the reptile pictured, made its way on-board a Kuwait-bound flight

Annie Katz/Getty

In a scene that played out like the plotline of a Samuel L. Jackson movie, some not-so-precious cargo made its way onto an Egypt Air flight. Yes, there was a snake on a plane.

But unlike the 2006 thriller Snakes on a Plane – in which Jackson takes charge on a reptile-rife voyage – the smuggled snake didn't cause any fatalities.

A 48-year old Jordanian man snuck the Egyptian cobra onto the 90-passenger flight from Cairo to Kuwait on Monday. After the snake bit him and began slithering through the aircraft, the plane made an emergency landing on the Red Sea in the resort town of Al Ghardaqah, reports The Jordan Times.

The man, identified as Akram Abdul Latif, ignored doctors' suggestions to wait 24 hours in a hospital for observation. (According to wildlife experts, reports CNN, cobra venom is lethal enough to kill a full-grown elephant in three hours or a human in 15 minutes.)

The original flight finished its trip later on Monday morning after authorities confiscated the cobra, and Latif made his way to Kuwait that night.

Perhaps snakes are frequent flyers: Earlier this year, a golden tree snake slithered its way onto a cargo plane in Australia.

Read More..

Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

___(equals)

Johnson can be reached at https://twitter.com/GeneAPseattle

Read More..

An actor despairs in Tinseltown

Seth Burnham sat in a dim corner of Kaldi Coffee & Tea, clutching a mug as he tried to conjure some confidence.

Being here in L.A., I'm giving it everything, he thought.

But after three years of living in Los Angeles, he hadn't had a single role he could be proud of. In a cable TV comedy, he played Percy the Carjacker, a dimwit blown to shreds by an air hose. For an independent film, he had been the best friend of a beautiful woman — a role the script called Small Gay Man.

Hollywood is one big lottery. You have to play it if you want a career in movies or TV....You have to be here. You have to believe.

Sometimes that was tough. Take STARmeter, the entertainment insider's website that measures the popularity of Hollywood actors.

"I was No. 80,000," Burnham said, "for a while."

Frustrated and fatigued, he would retire to this worn, cave-like cafe in Atwater Village.

He had found his surrogate Los Angeles family here, a group of a dozen or so who eased his loneliness and shared his Hollywood ambition: Amy, the animator who had worked on "South Park," Nicholas, whose latest film was well received at the Sundance Film Festival, and Amad, a rising African American actor who worried about being typecast in criminal roles.

They stayed for hours, talking, typing, hunched hard over laptops, nursing lattes. They were actors, writers and directors; stragglers, success stories and hard-luck cases like Burnham.

Many days, he sat in a torn leather chair reading through newspapers and memorizing scripts. He seemed swallowed in the furniture — brown-haired, bearded, not much more than 5 feet tall, with worry lines marching from the corners of his eyes.

Time was against him. Asked his age back in February, Burnham paused. "Mid 30s-ish, early 40s-ish," he said.

Outside of the cafe, he had few Los Angeles friends. His wife, a medical student, moved to St. Louis last year for a residency, but he stayed here. They decided that if she was going to devote herself fully to her dream, then he would too.

But how much more rejection could he handle? And was the unrelenting struggle worth more to him than his marriage?

::

Since his college days in the early 1990s, the acting quest had taken Burnham to several cities. He lived in San Francisco and London, where he trained at a drama school in the classical English style and started a theater company. He lived in Portland, Ore., and Seattle, where he got good reviews for his role in a modern adaptation of Chekhov's "The Seagull."

Everywhere he put down roots he found a place like Kaldi. "The anti-Starbucks," he said. "Just my style."

In Los Angeles, he developed a cafe routine. Each morning, he awoke in his cramped apartment, fed kibbles to his cats, threw on his sneakers and walked across Glendale Boulevard.

He drank two iced coffees a day, no more. He couldn't afford more, not when he didn't have a job — he had to be free for auditions. He relied on credit cards and his wife's salary to pay his bills.

Burnham didn't want fame; he wanted to simply be a journeyman, a working actor, appreciated for his skill, making roughly the same yearly salary as a union electrician.

He sat in the cafe for entire mornings and sometimes entire days. "Wrestling demons," he said.

Read More..

For Greece, Oligarchs Are an Obstacle to Recovery

ATHENS — A dynamic entrepreneur, Lavrentis Lavrentiadis seemed to represent a promising new era for Greece. He dazzled the country’s traditionally insular business world by spinning together a multibillion-dollar empire just a few years after inheriting a small family firm at 18. Seeking acceptance in elite circles, he gave lavishly to charities and cultivated ties to the leading political parties.

Icon/Reuters

Lavrentis Lavrentiadis embezzled money from a bank he controlled, prosecutors say.

But as Greece’s economy soured in recent years, his fortunes sagged and he began embezzling money from a bank he controlled, prosecutors say. With charges looming, it looked like his rapid rise would be followed by an equally precipitous fall. Thanks to a law passed quietly by the Greek Parliament, however, he avoided prosecution, at least for a time, simply by paying the money back.

Now 40, Mr. Lavrentiadis is back in the spotlight as one of the names on the so-called Lagarde list of more than 2,000 Greeks said to have accounts in a Geneva branch of the bank HSBC and who are suspected of tax evasion. Given to Greek officials two years ago by Christine Lagarde, then the French finance minister and now head of the International Monetary Fund, the list was expected to cast a damning light on the shady practices of the rich.

Instead, it was swept under the rug, and now two former finance ministers and Greece’s top tax officials are under investigation for having failed to act.

Greece’s economic troubles are often blamed on a public sector packed full of redundant workers, a lavish pension system and uncompetitive industries hampered by overpaid workers with lifetime employment guarantees. Often overlooked, however, is the role played by a handful of wealthy families, politicians and the news media — often owned by the magnates — that make up the Greek power structure.

In a country crushed by years of austerity and 25 percent unemployment, average Greeks are growing increasingly resentful of an oligarchy that, critics say, presides over an opaque, closed economy that is at the root of many of the country’s problems and operates with virtual impunity. Several dozen powerful families control critical sectors, including banking, shipping and construction, and can usually count on the political class to look out for their interests, sometimes by passing legislation tailored to their specific needs.

The result, analysts say, is a lack of competition that undermines the economy by allowing the magnates to run cartels and enrich themselves through crony capitalism. “That makes it rational for them to form a close, incestuous relationship with politicians and the media, which is then highly vulnerable to corruption,” said Kevin Featherstone, a professor of European Politics at the London School of Economics.

This week the anticorruption watchdog Transparency International ranked Greece as the most corrupt nation in Europe, behind former Soviet states like Bulgaria, Romania and Slovakia. Under the pressure of the financial crisis, Greece is being pressed by Germany and its international lenders to make fundamental changes to its economic system in exchange for the money it needs to avoid bankruptcy.

But it remains an open question whether Greece’s leaders will be able to engineer such a transformation. In the past year, despite numerous promises to increase transparency, the country actually dropped 14 places from the previous corruption survey.

Mr. Lavrentiadis is still facing a host of accusations stemming from hundreds of millions of dollars in loans made by his Proton bank to dormant companies — sometimes, investigators say, ordering an employee to withdraw the money in bags of cash. But with Greece scrambling to complete a critical bank recapitalization and restructuring, his case is emblematic of a larger battle between Greece’s famously weak institutions and fledgling regulatory structures against these entrenched interests.

Many say that the system has to change in order for Greece to emerge from the crisis. “Keeping the status quo will simply prolong the disaster in Greece,” Mr. Featherstone said. While the case of Mr. Lavrentiadis suggests that the status quo is at least under scrutiny, he added, “It’s not under sufficient attack.”

In a nearly two-hour interview, Mr. Lavrentiadis denied accusations of wrongdoing and said that he held “a few accounts” at HSBC in Geneva that totaled only about $65,000, all of it legitimate, taxed income. He also sidestepped questions about his political ties and declined to comment on any details of the continuing investigation into Proton Bank.

Read More..

U.S. agency backs Apple in essential patent battle

WASHINGTON (Reuters) – Google unit Motorola Mobility is not entitled to ask a court to stop the sale of Apple iPhones and iPads that it says infringe on a patent that is essential to wireless technology, the U.S. Federal Trade Commission said on Wednesday.

In June, Judge Richard Posner in Chicago threw out cases that Motorola, now owned by Google, and Apple had filed against each other claiming patent infringement. Both companies appealed.

In rejecting the Google case, Posner barred the company from seeking to stop iPhone sales because the patent in question was a standard essential patent.

This means that Motorola Mobility had pledged to license it on fair and reasonable terms to other companies in exchange for having the technology adopted as a wireless industry standard.

Standard essential patents, or SEPs, are treated differently because they are critical to ensuring that devices made by different companies work together.

Google appealed to the U.S. Court of Appeals for the Federal Circuit. The FTC said in its court filing that Posner had ruled correctly.

The commission, which has previously argued against courts banning products because they infringe essential patents, reiterated that position on Wednesday.

“Patent hold-up risks harming competition, innovation, and consumers because it allows a patentee to be rewarded not based on the competitive value of its technology, but based on the infringer’s costs to switch to a non-infringing alternative when an injunction is issued,” the commission wrote in its brief.

The case is Apple Inc. and NeXT Software Inc. V. Motorola Inc. and Motorola Mobility Inc., in the U.S. Court of Appeals for the Federal Circuit, no. 2012-1548, 2012-1549.

(Reporting By Diane Bartz)

Tech News Headlines – Yahoo! News

Read More..