South Korean firm aims for the sky in L.A.

Ambitious South Korean enterprises continue to make noise on the global economic stage.

Electronics giant Samsung is giving Apple fits in markets across the globe with its hot-selling smartphones and tablets. Seoul-based Hyundai and Kia have been among the world's fastest-growing automakers in recent years. Portly singer Psy put South Korea on the pop culture map with his monster hit “Gangnam Style,” which has become the most popular video of all time on YouTube with nearly 1.3 billion views.

So it was only natural that South Korea's top airline, Korean Air, on Thursday took the wraps off its design for a dramatic, skyline-changing tower for downtown Los Angeles. The $1-billion skyscraper is to become the tallest building west of the Mississippi River — and a symbol of South Korea's status as an up-and-coming economic powerhouse.

The 73-story hotel and office building will include 900 guest rooms, double-decker elevators and an observation deck that will afford views of the Pacific Ocean. Slated to replace the old Wilshire Grand Hotel at Wilshire Boulevard at Figueroa Street, the new building will be slightly taller than the nearby U.S. Bank Tower, which has held the title of tallest building west of Chicago since 1989.

Originally planned as two smaller towers when it was announced four years ago, the Korean Air plan has morphed into a single tower that will give the Seoul company bragging rights to the highest skyscraper on the West Coast.

Experts said that's in keeping with South Korea's hard-charging business ethos. The skyscraper, currently dubbed the Wilshire Grand, is an outgrowth of a competitive corporate culture that has come to dominate the South Korean economy over the last 30 years, according to UC Riverside Ethnic Studies professor Edward Taehan Chang.

After the nation endured poverty, dictatorship and political unrest during much of the 20th century, attaining superlatives has become part of the country's fabric, Chang said. Corporations strive to dominate their industries, while younger generations take pride in the near universality of South Korea's popular culture.

“They always want to reach for No. 1 status,” Chang said. “The rapid economic growth has been about striving for the top spot.”

Korean Air is already at work dismantling the closed 1950s-era Wilshire Grand Hotel to make way for the glass-clad tower, which is expected to be completed in 2017. Korean Air has provided airline service to Los Angeles for more than 40 years and has owned the Wilshire Grand since 1989.

Korean Air is the flagship company of Hanjin Group, one of South Korea's largest conglomerates. Hanjin has interests in land, sea and air transportation as well as construction, heavy industry, finance and information services. A high-end hotel fits well with Korean Air's operations in Los Angeles: The company makes parts for airplanes, flies the planes here as the busiest Asian carrier at Los Angeles International Airport, runs travel agencies that book the tickets and operates a catering business that serves the food on the planes.

“The new Wilshire Grand is an investment that makes sense, and we are excited to continue our relationship with this great city,” Korean Air Chairman Y.H. Cho said Thursday at the offices of AC Martin Partners, the project's architect.

The sail-shaped skyscraper will light up at night and dwarf many of its neighbors. Most of the building will be devoted to a hotel, though an operator has yet to be named. Arriving guests would be whisked by high-speed elevators to the “sky lobby” on the 70th floor for check-in.

According to the plan, the 71st floor will be a restaurant. The floor above that will house window-washing gear and engineering equipment, clearing the top floor for an infinity swimming pool and observation deck.

Near street level will be about three floors of restaurants and shops, topped by 30 floors of offices for rent. Elevators will be double-decked, carrying two stacked cabs of passengers for additional capacity during peak hours.

Perched at the very top of the building will be a decorative “crown” and a mast-like spire that will have embedded LED lighting that can change colors. The display will be eye-catching and visible for miles, but it will not be used for advertising, said Christopher Martin, chief executive of AC Martin.

“It's not Coke bottles, it's art,” he said.

With the spire reaching to 1,100 feet, the Wilshire Grand would become one of the tallest structures in the country, surpassing the 1,046-foot Chrysler Building in New York, which has 77 stories.

The contemporary design of the Wilshire Grand, with its floor-to-ceiling windows, is intended to set it apart from surrounding granite-clad office towers, said architect David Martin, who is Christopher Martin's cousin.

He hopes the building, which is to include 400,000 square feet of office space, will reflect the city better than the last generation of skyscrapers does. The Wilshire Grand, for instance, will have operable windows in its guest rooms and offices.

“This is about the culture and climate of L.A.,” Martin said. “We are creating a sense of place, only it's 1,000 feet up in the air.”

AC Martin also designed the Figueroa-at-Wilshire high-rise across the street from the Wilshire Grand in 1990. The family firm was the primary architect of Los Angles City Hall in the 1920s.

Work on the new skyscraper will create 11,000 union construction jobs, Korean Air's Cho said, and employ 1,700 workers when it opens in four years. The project has obtained most development approvals from L.A. city officials.

Cho, who lives in Seoul and has a home in Newport Beach, is on the board of trustees at USC, where his children attended college and where he obtained his MBA.

“L.A. is like a second home,” Cho said.

The 936-room Wilshire Grand, built in 1952, was originally a Hotel Statler and later a Hilton. Once one of the city's best hotels, it was most recently a mid-market inn catering to conventioneers and tour groups from overseas before it closed at the end of 2011.

The property is a few blocks north of Staples Center.

roger.vincent@latimes.com

Times staff writer Frank Shyong contributed to this story.

Read More..

L.A. County Sheriff's Department intends to fire seven deputies

Seven Los Angeles County sheriff's deputies have been notified that the department intends to fire them for belonging to a secret law enforcement clique that allegedly celebrated shootings and branded its members with matching tattoos, officials said.

The Times reported last year about the existence of the clique, dubbed the Jump Out Boys, and the discovery of a pamphlet that described the group's creed, which required aggressive policing and awarded tattoo modifications for police shootings.

The seven worked on an elite gang-enforcement team that patrols neighborhoods where violence is high. The team makes a priority of taking guns off the street, officials said.

The Sheriff's Department has a long history of secret cliques with members of the groups having reached high-ranking positions within the agency. Sheriff officials have sought to crack down on the groups, fearing that they tarnished the department's reputation and encouraged unethical conduct.

In the case of the Jump Out Boys, sheriff's investigators did not uncover any criminal behavior. But, sources said, the group clashed with department policies and image.

Their tattoos, for instance, depicted an oversize skull with a wide, toothy grimace and glowing red eyes. A bandanna with the unit's acronym is wrapped around the skull. A bony hand clasps a revolver. Smoke would be tattooed over the gun's barrel for members who were involved in at least one shooting, officials said.

One member, who spoke to The Times and requested anonymity, said the group promoted only hard work and bravery. He dismissed concerns about the group's tattoo, noting that deputies throughout the department get matching tattoos. He said there was nothing sinister about their creed or conduct. The deputy, who was notified of the department's intent to terminate him, read The Times several passages from the pamphlet, which he said supported proactive policing.

"We are alpha dogs who think and act like the wolf, but never become the wolf," one passage stated, comparing criminals to wolves. Another passage stated, "We are not afraid to get our hands dirty without any disgrace, dishonor or hesitation... sometimes (members) need to do the things they don't want to in order to get where they want to be."

Department spokesman Steve Whitmore said starting the termination process shows that Sheriff Lee Baca "does not take any of this lightly and will move forward with the appropriate action."

Investigators were less concerned about the tattoos, and more focused on the suspected admiration they showed for officer-involved shootings, which are expected to be events of last resort. The deputy told The Times, however, that investigators reviewed their shootings and arrests and found nothing unlawful.

"We get called a gang within the badge? It's unfair," he said. "People want to say you have a tattoo. So do fraternities. Go to Yale. Are they a gang?.... Boy Scouts have patches and they have mission statements, and so do we."

"We do not glorify shootings," he continued. "What we do is commend and honor the shootings. I have to remember them because it can happen any time, any day. I don't want to forget them because I'm glad I'm alive."

If the firings are upheld, it would be one of the largest terminations over one incident in the department's history. In 2011, the department fired about half a dozen deputies who were also said to have formed a clique. Those deputies worked on the third floor of Men's Central Jail and allegedly threw gang-like three-finger hand signs. They were fired after they fought two fellow deputies at an employee Christmas party and allegedly punched a female deputy in the face.

As part of the widening federal investigation of the Sheriff's Department, a criminal grand jury recently subpoenaed the agency for materials relating to deputy cliques, specifically citing several of the groups including the "3000 boys" and the Jump Out Boys.

When the pamphlet revealing the existence of the Jump Out Boys was initially found, officials didn't know if the group was real. But eventually, one member came forward and named the others, according to an official who asked for anonymity because he was not authorized to speak to the media.

The seven deputies can fight the department's decision to fire them.

robert.faturechi@latimes.com

Read More..

Selena Gomez works the front row at Neo show

NEW YORK (AP) — Selena Gomez sat front and center at the fashion show to preview the first collection in her collaboration with Adidas' streetwear Neo label.

But the runway at Wednesday evening's show was a next-gen catwalk: Teenager bloggers were charged with styling the outfits instead of industry professionals.

Gomez thanked them as she stood on stage at the end of the show. She was flanked by models in denim shorts, Bermudas, slouchy sweats and T-shirts that read "Pirate Love." There were a few graffiti prints sprinkled in, and some varsity jackets.

The clothes, mostly in sunny yellow, bright pink and navy, were more surf than sport, which is Adidas' normal niche.

The show was very briefly interrupted by a protester trying to hand out leaflets about sweatshops.

Read More..

Daniel Doctoroff Enlists Bloomberg in A.L.S. Research

Nicole Bengiveno/The New York Times

Daniel L. Doctoroff, second from right, chief executive of Bloomberg L.P., at Columbia University’s Motor Neuron Center.

Daniel L. Doctoroff watched in pain as his father developed a limp one day, was found to have Lou Gehrig’s disease, and died within two years. Then an uncle also developed symptoms of the same disease, and died soon after.

Now Mr. Doctoroff, like many other relatives of Lou Gehrig’s disease victims, worries that he or his children may someday develop the illness.

But unlike many, he is in a position to try to do something about it. At a time when scientists are making rapid gains in the genetic roots of many diseases, Mr. Doctoroff, a former deputy mayor and private equity investor, is working with Mayor Michael R. Bloomberg and a private equity director, David M. Rubenstein, to put together a $25 million package of donations to support research to try to cure this rare and usually fatal degenerative neurological illness.

“This is a devastating disease,” Mr. Doctoroff said in an interview this week in the glass high-rise on the Upper East Side that houses Bloomberg L.P., the mayor’s media and financial information company, where Mr. Doctoroff is now chief executive. “Up to now, there’s been basically no hope. I have the resources, and I think it’s my obligation to do that.”

The gift is part of a wave of investment based on the booming field of genomic analysis. The money will go to a project called Target A.L.S., a consortium of at least 18 laboratories, including ones at Columbia and at Johns Hopkins, the mayor’s alma mater, working to find biological “targets,” like gene mutations, and the biochemical changes they cause in the spinal cord, that could be used to test potential drug therapies for the disease, formally known as amyotrophic lateral sclerosis.

It comes on top of a previous $15 million gift by Mr. Doctoroff, Bloomberg Philanthropies and other donors. By comparison, the National Institutes of Health, the single largest source of research financing for the disease, expects to give $44 million in 2013.

This is not Mr. Bloomberg’s first time supporting charitable causes that are dear to his close associates. The mayor quietly gave at least $1 million to put the name of his top deputy mayor, Patricia E. Harris, on a new academic center at her alma mater, Franklin & Marshall College in Lancaster, Pa.

Mr. Doctoroff said the conversation about A.L.S. in which he got Mr. Bloomberg involved “lasted about five seconds.” He declined to say what share of the money each of the three donors was giving.

Mr. Rubenstein, a founder of the Carlyle Group, said Wednesday that he had long been fascinated with A.L.S. because of its association with Gehrig, the baseball player who died of it. He wondered why more than 70 years later so little progress had been made in treating it.

He said he jumped at the chance to join in because he thought that A.L.S. research was underfinanced owing to the rarity of the disease, and that even a small amount of money could make a big difference.

In the Bloomberg administration, where he was deputy mayor for economic development and rebuilding from 2002 to 2008, Mr. Doctoroff was best known for his dogged — and ultimately dashed — attempt to bring the 2012 Olympics to New York City. (London got the Games.) Now that he has left City Hall, he no longer rides his bike to work — he says the 2.6-mile route from the Upper West Side to his office is too short — but he sometimes runs.

At Bloomberg, he sits in front of a conference room with walls of hot-pink glass, while carp swim in a giant fish tank nearby. He keeps no family photos or other personal mementos on his desk, and talking about his family’s disease history does not seem easy for him.

A.L.S. is rare, with about 2 new cases diagnosed a year per 100,000 people, according to the A.L.S. Association. A vast majority of cases are “sporadic,” in people who have no family history, while only 5 to 10 percent of cases are inherited. There appear to be no racial, ethnic or socioeconomic predispositions.

There is some speculation about environmental factors, like exposure to toxic chemicals and high physical activity that athletes might endure, “but nothing firm,” said Christopher E. Henderson, a researcher at Columbia and the Target A.L.S. project’s scientific director. Some researchers suspect a link between A.L.S. and head trauma suffered by professional football players.

Mr. Doctoroff’s father, Martin, an appeals court judge in Michigan, received the diagnosis in 2000 and died in 2002. One of Martin Doctoroff’s brothers, Michael, was found to have the disease in 2009 and died in 2010.

“When my father contracted the disease and passed away, it was very easy to chalk it up to bad luck,” Mr. Doctoroff said. “When my uncle got it, it obviously had broader implications.”

Given his family history, Mr. Doctoroff estimates that there is a 50-50 chance that he has the gene, C9orf72, that could lead to A.L.S. But he has chosen not to be tested, which would have implications not just for him but for his three children. “It’s very personal, but I’m not sure that I want to know,” he said.

Even when family members develop the disease, it can occur at vastly different ages, so he could still be in suspense even after testing. “Assuming you have the gene, you don’t know when you would actually get the disease,” he said. His uncle was 71. His father was 66. He is now 54.

Sheelagh McNeill contributed reporting.

This article has been revised to reflect the following correction:

Correction: February 6, 2013

An earlier version of a picture caption with this article misstated Daniel L. Doctoroff’s title at Bloomberg L.P. He is the chief executive, not the executive director.

Read More..

Pitfalls seen in growth of part-time work

Although the state's unemployment rate is at its lowest level in almost four years and the number of employed Californians is growing, labor experts see a different reality: Full-time work has faded in many industries.

Nubia Calderón Barillas, 32, left a job in retail in May for a housekeeping job at the Holiday Inn LAX that promised better pay and steady work.

But nearly nine months later, the mother of three said, she rarely works more than two days a week. She has asked for more hours, she said, but to no avail, even in an industry that set a new peak employment level last year.

"It's been difficult lately," she said. "I practically didn't work all of December except for the holidays."

California employers picked up the rate of hiring during 2012 — at times at nearly twice the rate of the country as a whole. But a significant portion of those jobs are less than full time, according to federal data released last week.

The number of people involuntarily working part time nationwide has grown to 7.9 million, an 80% increase from 2006, data from the Bureau of Labor Statistics show.

That trend is particularly pronounced in the Golden State, which saw the number of involuntary part-time workers swell to 1.3 million, up 126% from 585,100 in 2006. Only four other states, Nevada and Florida among them, had higher rates of involuntary part-time workers.

Various industries are increasingly relying on part-time workers and other contingent employees, such as temporary workers, to save money, said Michael Bernick, a Milken Institute fellow who studies labor markets.

"As you have more and more costs associated with full-time workers in terms of healthcare or other costs, employers look for alternative ways to reduce costs," Bernick said. "One way is on-demand and part-time work."

The increase isn't limited to industries that typically employ part-time workers, such as leisure and hospitality. Other sectors with strong job growth, such as professional and business services, have also seen a rise in part-time workers as employers aim to keep payroll costs down, Bernick said.

Nationwide, the number of involuntary part-time workers in professional and business services, which includes white-collar occupations such as accountants and lawyers, nearly doubled to 711,000 last year from 367,000 in 2007. A sector-by-sector breakdown is unavailable for California because the sample size of the household survey that the federal data rely on is too small.

Part-time work is common in California's leisure and hospitality sector, which added almost 61,000 jobs since December 2011, accounting for more than a quarter of the state's net jobs created in that time period.

Growth of low-wage industries such as hospitality provides work opportunities for people with limited education, even if the work is only part time, said Jerry Nickelsburg, senior economist at the UCLA Anderson Forecast.

"We shouldn't look with dismay" on the rapid growth of a sector that is so dependent on part-time work, he said. "If that were the only sector we were growing, then that would be worrisome."

Tom Walsh, president of Unite Here Local 11, a union representing hospitality workers in Los Angeles and Orange counties, said in negotiations with employers, his group has pushed for workers' hours to be maximized.

Although full-time work sometimes isn't ensured, Walsh said, employers are urged to give part-time workers as many hours as possible.

"I think it's an example of certain employers being penny wise but pound foolish," he said. "They figure they can save money by having more part-time workers and having low pay. If they don't change that, folks are going to take jobs somewhere else the first chance they get."

The long-term implication of part-time work, economists said, is growing wage disparities and the risk of dampening consumer spending, a major driver of the economy. Part-time workers also are more likely to rely on state aid, such as food stamps, to make ends meet.

Kellie Flowers moved to Los Angeles late last year hoping to find work as an event coordinator or wardrobe stylist.

But full-time work has been elusive, even with a college degree.

The 30-year-old Virginia native managed to land two part-time jobs when she first relocated, one at a Manhattan Beach boutique and the other at a running store.

She earned $10 per hour at both jobs but didn't have benefits or health insurance.

"It was very hard working two jobs," she said. "You definitely don't have any spending money."

Flowers recently started a new job, selling spa packages, on commission. She sells between six to 10 a day, earning $15 for each.

"I'm going to look for other jobs that make me happier. Until then I just need to make money," she said.

Meanwhile, Barillas, the Holiday Inn housekeeper, said she hopes she'll eventually work more hours.

She and her husband are falling behind on utility bills at the one-bedroom Koreatown apartment they share with their three children. She recently applied for food stamps, a decision she said was embarrassing.

"I've always had work," she said. "I used to think people on food stamps just didn't want to work, but now I find myself with the need to ask for help."

ricardo.lopez2@latimes.com

Read More..

Child porn suspect indicted by federal grand jury

A North Hills woman whom authorities allege plied a young girl with crack cocaine and photographed her being sexually abused by an older man was indicted Tuesday on federal charges of producing child pornography and sex trafficking.

Letha Montemayor Tucker was named Tuesday in a four-count indictment returned by a federal grand jury. If convicted of all the charges, Tucker would face a mandatory minimum federal sentence of 10 years and could get up to life in prison, authorities said.

The charges come a month after authorities sought the public's help in the investigation by releasing photographs of a man and woman depicted in a set of widely circulated child pornography photos.

Tips started pouring in immediately after the photos were released, investigators said.

Tucker, who goes by the name Butterfly, was located about 10 hours after the release of the photos and taken into custody, said Claude Arnold, special agent in charge for Homeland Security Investigations in Los Angeles, a division of U.S. Immigration and Customs Enforcement.

The alleged victim, who was about 12 when the photos were taken, was found within a week of the case going public, Arnold said. She is an adult now and is cooperating with authorities, he said.

In addition to photographing the girl being sexually abused by the man, authorities said, Tucker also committed sex acts with the alleged victim.

The photos were part of a child pornography collection known as the "Jen Series."

The 40-plus photos were first discovered by investigators in the Chicago area in 2007. Investigators said images in the series have been reported about 300 times and have been found on computers across the country.

The victim "didn't even know these images were out there," Arnold said.

"The horror of child pornography is it's for life, the victimization," Arnold said. "Once the photos are there in cyberspace, they're there forever."

The girl, identified in court records only by the initials J.M.M., lived in the same Los Angeles County residential hotel as Tucker, who worked as a prostitute, authorities said.

Around 2000 or 2001, the girl stopped attending school regularly and spent more and more time in Tucker's room, smoking crack cocaine Tucker provided, according to the indictment.

The girl was present when Tucker engaged in prostitution with clients and was usually high when this happened, authorities allege. Tucker instructed the child to take off her clothes in front of the clients, prosecutors alleged in court papers.

The faces of Tucker and the girl are "clearly visible" in the photos, according to the indictment. Tucker had an eyebrow piercing and a tattoo of a sleeping cat behind her shoulder, which made her easier to identify, authorities said.

The face of the man, however, is blacked out in the photographs. Authorities are still trying to identify the man, Arnold said.

"Obviously, we want him also to answer for his crimes," Arnold said.

Arnold said the alleged victim is "going to be dealing with this for a long time."

Now that she has been identified, she will receive a victim notification every time one of the images turns up in an investigation, he said.

Tucker is being held without bond and is scheduled to be arraigned in federal court on Feb. 13. Her attorney could not be reached for comment.

hailey.branson@latimes.com

Read More..

Fox cuts ties to commentator Dick Morris

NEW YORK (AP) — Political commentator Dick Morris' prediction of a huge landslide for Mitt Romney didn't pan out. And now he's lost his job at Fox News Channel.

Network spokeswoman Dana Klinghoffer said Tuesday that Fox wasn't renewing its contract with Morris, who was steadfast throughout the campaign in his prediction of a big Romney win over President Barack Obama. He has made few appearances on Fox since the election.

Morris had also been criticized for accepting paid advertisements on his website from candidates that he discussed on the air at Fox.

On his website, Morris said he'll be appearing on CNN's Piers Morgan show Wednesday to talk politics.

Read More..

Vote This Week May Close Long Island College Hospital

State university trustees will vote this week on whether to close Long Island College Hospital, officials of the Brooklyn hospital said on Tuesday, despite protests from doctors and nurses that northern Brooklyn would lose an essential source of emergency care.

Dr. John Williams, president of SUNY Downstate Medical Center, which runs Long Island College Hospital, said on Tuesday that he would formally recommend closing the hospital at a SUNY meeting in Manhattan on Thursday, followed by a public hearing that same day.

An executive committee of the SUNY board will vote on the recommendation on Friday and is expected to approve it, which would clear the way for the state Health Department to make the final decision, based on whether comparable care is available to people now served by the hospital. About 2,000 doctors, nurses and other employees would be in danger of losing their jobs.

Dr. Williams said that after five months on the job, he had concluded that the financial losses at LICH, as the hospital is called, threatened to sink SUNY Downstate, which includes a medical school that he said had trained one out of three doctors practicing in Brooklyn and one out of nine doctors practicing in New York City.

He said it was necessary to sacrifice LICH to save the rest of the enterprise. “I have to put on the big hat when I look at the campus and say what works and what doesn’t work,” Dr. Williams said in an interview on Tuesday. “The last thing I want to do is have people lose their jobs, but LICH could bring down SUNY Downstate and that’s something I’m trying to prevent.”

But doctors — many of whom heard of the plan at a meeting held Monday by Dr. Williams — said that the closing of LICH would leave more than 50,000 emergency room patients a year without a nearby hospital to go to. They accused Dr. Williams of opting to close LICH, which lies in the gentrifying Cobble Hill neighborhood, rather than more antiquated facilities in East Flatbush or Bay Ridge, because it has the most valuable real estate, and the sale could prop up SUNY Downstate’s faltering operations.

Dr. Williams said that he had chosen to close LICH, rather than facilities in lower-income areas, because Downstate’s mission was to take care of poor and underserved patients. He said that it would cost $75 million to $200 million to upgrade LICH’s aging plant. Besides, he said, in recent years, LICH had been largely abandoned by residents of the surrounding neighborhoods of Cobble Hill, Carroll Gardens, Brooklyn Heights, Red Hook and Boerum Hill, who often worked in Manhattan and preferred to go to hospitals there, forcing the hospital to reduce its beds.

But Julie Semente, a registered nurse in LICH’s intensive care unit, said Tuesday that when it came to emergencies, those patients still went to LICH; Brooklyn ambulances, she said, generally do not go to Manhattan. If LICH closed, she said, they would have to go to hospitals deeper in Brooklyn and farther from their homes and families.

“My patient who was hemorrhaging had to call an ambulance,” Ms. Semente said of one recent patient. “He lives in Brooklyn Heights. The ambulance doesn’t go over the bridge. It came to Long Island College Hospital and his life was saved because he went to the hospital in the neighborhood.”

She said that SUNY Downstate was already “in a mess” financially before acquiring LICH in 2011 from Continuum Health Partners, which also runs St. Luke’s, Roosevelt and Beth Israel hospitals in Manhattan. “LICH is being closed because it is more attractive and it will bring them more money in a sale” than other facilities, she said.

The state comptroller, Thomas P. DiNapoli, said in an audit last month that SUNY Downstate had $117 million in operating losses in 2011, of which $44 million was attributable to the acquisition of LICH. The audit said that LICH had annual operating losses for 17 years going back to 1994. A report in November 2011 by Gov. Andrew M. Cuomo’s panel on Brooklyn hospitals identified LICH as one of six hospitals that “do not have a business model and sufficient margins to remain viable and provide high-quality care to their communities as currently structured.”

Read More..

18 people charged in $200-million credit card fraud

NEWARK, N.J. — Eighteen people were charged in what may be one of the nation's largest credit card fraud rings, a sprawling scam that duped credit-rating agencies and used thousands of fake identities to steal at least $200 million, federal authorities said.

The scammers used fraudulent tactics to improve fake cardholders' credit scores, which they then used to borrow money that was never repaid, investigators said Tuesday.

"In many respects the accused availed themselves of a virtual cafeteria of sophisticated frauds and schemes, whose main menu items were greed and deceit," said David Velazquez, assistant special agent in charge of the FBI's Newark field office.

Paul Fishman, the U.S. attorney in Newark, described an intricate Jersey City-based con that began in 2007 and operated in at least 28 states, Money gotten from the scheme was wired to Pakistan, India, the United Arab Emirates, Canada, Romania, China and Japan.

The group used at least 7,000 fake identities to obtain more than 25,000 credit cards, Fishman said. He said $200 million in documented losses could rise.

Participants set up more than 1,800 mailing addresses, creating fake utility bills and other documents to provide credit card companies with what appeared to be legitimate addresses. Once participants obtained the cards, they started making small charges and paying off the cards to raise their credit limits.

They then sent fake reports to credit-rating agencies, making it appear that cardholders had paid off debts. The result — sterling credit ratings and high credit limits.

Fishman said once the credit limits were raised, members would take out a loan or max out the credit card and not repay the debts.

The group also created at least 80 sham businesses that accepted credit card payments, Fishman said. The group would run the fraudulently obtained credit cards through the machines, keeping the money.

The scheme funded a lavish lifestyle for the accused, including spa treatments, electronics and millions of dollars of gold, Fishman said. In one raid, authorities found $78,000 stashed in an oven.

Three jewelry stores in Jersey City were closed Tuesday and their inventory seized, Fishman said. Thirteen defendants also were arrested Tuesday. The investigation is ongoing, Fishman said.

Read More..

Brown weighs parole for Manson family member

SACRAMENTO — Gov. Jerry Brown has about a month to decide whether to release a former follower of notorious killer Charles Manson from prison.

Bruce Davis, 70, has been behind bars since 1970, convicted with Manson of the murder of a musician and a stuntman. He was not involved in the Manson family's infamous 1969 slayings of Sharon Tate and four others in a Benedict Canyon home.

For the second time, a state parole panel has determined that Davis should be freed. The parole board forwarded the decision to Brown on Friday, starting a 30-day period for the governor to agree, request a full board hearing or reverse the decision.

PHOTOS: The Manson family murders

Davis is incarcerated at the California Men's Colony in San Luis Obispo, where he has a clean record and is active in prison ministries, his lawyer told the parole officials. A prisons panel first granted him parole in 2010, citing his record and his completion of rehabilitation programs.

Then-Gov. Arnold Schwarzenegger reversed the decision. Davis won a legal challenge to the reversal but lost last year on appeal.

Los Angeles County Dist. Atty. Jackie Lacey has urged Brown not to release Davis. In a three-page letter to the governor Jan. 24, she described Davis as Manson's "right-hand man" and said he poses an "unreasonable risk of danger to society."

"Davis has been diagnosed with narcissistic and antisocial personality traits," Lacey wrote. "He consistently blames everyone but himself for his criminal and antisocial behavior."

Davis was convicted of two counts of first-degree murder, conspiracy to commit murder and robbery for the deaths of Gary Hinman and Donald "Shorty" Shea.

Though Davis said he had a peripheral role in the murders, prosecutor Steven Kay and former Manson family member Barbara Hoyt described Davis as a prominent member of the Manson family who "wanted to be second in command."

Hinman, an aspiring musician whom Manson believed had a substantial inheritance, was held captive in his home for several days, tortured and ultimately stabbed to death. In her letter, Lacey contended that Davis held a gun on Hinman while Manson attempted to slice off the captive's ear.

A Black Panther symbol and the words "political piggy" were written on the walls of the home with what was later identified as Hinman's blood.

Shea, a ranch hand who lived with the Manson family, was killed in August 1969 because Manson believed him to be a police informant. Lacey cited witnesses who testified that Davis bragged of his part in Shea's stabbing death.

Shea's widow, Phyllis Murphy, sent her own plea to the governor.

"The details of this [heinous] murder are like a story with description of something only a very evil person would take part in," she wrote. "If Bruce Davis is set free, how safe will the neighbors be, will he be allowed to take yet another life?"

paige.stjohn@latimes.com

Read More..