Archive for the ‘Business’ Category
A Ponzi scheme goes to trial, resolution over religion and the law

Sugarcreek, Ohio – This village is as sweet as its name. Main Street climbs gently from a tidy railroad crossing, past a few gift shops to the simple brick First Mennonite Church…
This postcard from a gentler and simpler America is about as unlikely a place imaginable for the news that broke in September: one of Sugarcreek’s own, a prominent member of what some people here call the Plain Community, was under arrest, accused by federal prosecutors of running a Ponzi scheme that betrayed his neighbors’ trust and wiped out more than $16 million of their savings.
The news media made the obvious comparisons…
But the most intriguing aspect of Monroe Beachy’s story is how different it seems from Bernie Madoff’s — and from almost every other story with a “Ponzi scheme” headline over the years.
While victims of Mr. Madoff’s fraud, like most Ponzi victims, condemned their accused betrayer in court as a monster, many of Monroe Beachy’s investors have said in court that it is more important to forgive him than to recover their money.
While the Madoff case and others like it have inevitably created conflict between longtime investors fighting to keep their fictional profits and more recent investors trying to recover lost principal, some Beachy investors urged that their own share of his estate should be given to those in greater need.
And while Mr. Madoff’s wife and sons instantly became social pariahs in Manhattan, Mr. Beachy’s wife and children remain at his farmstead here, living peacefully with their neighbors…
It became the forum for a rare bankruptcy court battle over religious freedom, with Mr. Beachy’s Amish and Mennonite creditors insisting that the court’s way of dealing with his downfall could not be squared with their faith or with his…They formed their own committee to resolve the crime. There were two confounding contradictions: [1] all the creditors were not members of their faith and bound by the same methods or conclusions; [2] we still live in a constitutional republic where civil law takes precedence over religious rote.
Last March, Federal Bankruptcy Judge Russ Kendig in Canton, in the federal courthouse closest to Sugarcreek, ruled that “delegating insolvency proceedings to a religious body” would be unconstitutional…
No part of this story contrasts as sharply with the real Bernie Madoff case as what happened next…
“We are agreed among ourselves to accept your ruling as the will of Almighty God in this matter,” they wrote, after thanking him for considering their point of view so carefully. “If there is anything which we can do as members of the Amish-Mennonite community to facilitate the bankruptcy process and help bring it to a speedy conclusion please do not hesitate to contact any member” of the committee.
Unlike most American flavors of fundamentalist religion, these folks recognize and respect the law of the land over their religious beliefs. They call it God’s Will. An interesting way around the contradictions of their belief system; but, it leaves our constitution intact and doesn’t waste months and years trying to wear down the court system.
RTFA. It is a long and convoluted tale. One not without illustrations of every human frailty – even for folks who assay that frailty results from the supernatural.
Judge awards $850 to iPhone user in AT&T throttling case

When AT&T started slowing down the data service for his iPhone, Matt Spaccarelli, an unemployed truck driver and student, took the country’s largest telecommunications company to small claims court. And won.
His award: $850.
Pro-tem Judge Russell Nadel found in favor of Spaccarelli in Ventura Superior Court in Simi Valley on Friday, saying it wasn’t fair for the company to purposely slow down his iPhone, when it had sold him an “unlimited data” plan.
Spaccarelli could have many imitators. AT&T has some 17 million customers with “unlimited data” plans who can be subject to throttling. That’s nearly half of its smartphone users. AT&T forbids them from consolidating their claims into a class action or taking them to a jury trial. That leaves small claims actions and arbitration.
Late last year, AT&T started slowing down data service for the top 5 percent of its smartphone subscribers with “unlimited” plans. It had warned that it would start doing so, but many subscribers have been surprised by how little data use it takes for throttling to kick in —often less than AT&T provides to those on limited or “tiered” plans.
Spaccarelli said his phone is being throttled after he’s used 1.5 gigabytes to 2 gigabytes of data within a new billing cycle. Meanwhile, AT&T provides 3 gigabytes of data to subscribers on a tiered plan that costs the same — $30 per month.
When slowed down, the phone can still be used for calls and text messaging, but Web browsing is painfully slow, and video streaming doesn’t work at all…
Companies with as many potentially aggrieved customers as AT&T usually brace themselves for a class-action lawsuit. But last year, the Supreme Court upheld a clause in the Dallas-based company’s subscriber contract that prohibits customers from taking their complaints to class actions or jury trials.
Just in case you thought the sleazy array of Republicans added to the Supremes in the last couple of decades would never come up with decisions that affect your daily life. Add a moneygrubber corporation decision like this – to the Citizens United crap decision which says a corporation is just another person when it comes to bankrolling politicians.
Greedy bastards like AT&T can stand on one foot for a couple centuries while individuals try to take their cases through small claims court one at a time. A couple hundred bucks means a lot more to ordinary working folks than beancounters shuffling lawyers on retainer through local courts on a platoon system designed to screw us all.
Feel like eating trout – downstream from mining operations?

Photographs of variously mutated brown trout were relegated to an appendix of a scientific study commissioned by the J. R. Simplot Company, whose mining operations have polluted nearby creeks in southern Idaho. The trout were the offspring of local fish caught in the wild that had been spawned in the laboratory. Some had two heads; others had facial, fin and egg deformities.
Yet the company’s report concluded that it would be safe to allow selenium — a metal byproduct of mining that is toxic to fish and birds — to remain in area creeks at higher levels than are now permitted under regulatory guidelines. The company is seeking a judgment to that effect from the Environmental Protection Agency. After receiving a draft report that ran hundreds of pages, an E.P.A. review described the research as “comprehensive” and seemed open to its findings, which supported the selenium variance for Simplot’s Smoky Canyon mine.
But when other federal scientists and some environmentalists learned of the two-headed brown trout, they raised a ruckus, which resulted in further scientific review that found the company’s research wanting.
Now, several federal agencies, an array of environmental groups and one of the nation’s largest private companies are at odds over selenium contamination from the Idaho phosphate mine, the integrity of the company’s research, and what its effect will be on future regulatory policy.
S-O-M wins master plan competition for Beijing redevelopment

Architectural practice SOM’s 17.6-sq km master plan for Beijing Bohai Innovation City has won an international design competition for the redevelopment of the region. The design is focused on a redevelopment corridor along the high-speed rail connection between Beijing, and the port of Tianjin. Though incorporating existing infrastructure, the scheme constitutes an ambitious planned city, and one which, if fully realized, may set a new standard for environmentally-conscious urban planning.
Half of the allocated site will be green in the literal sense – devoted to natural and other open areas. But perhaps the plan’s greatest claim to environmental soundness is its commitment to greener modes of transport – high speed rail for getting in and out of the city, but with a focus on foot traffic within the urban center itself…
But the plan by no means relies on pedestrians. A rapid transit bus system and electric car fleet are envisaged. Streets are designed to be cycling-friendly, and SOM hopes that combined, the bus system, walking and cycling will account for 80% of private inner city journeys.
SOM (short for Skidmore, Owings & Merrill LLP) additionally claims that its scheme sets “aggressive goals for water, energy, waste, renewable energy and building design efficiency”, incorporates a wetland park habitat, and incorporates a storm water filtration and cleaning system to return uncontaminated water to the region’s rivers…
The competition was entitled “Beijing Bohai Rim Advanced Business Park“, held by Beijing Tongzhou District Taihu High End Headquarters Construction Management Committee and Beijing Xinghu Investment and Development Co. Ltd. In winning it, SOM have further cemented their reputation as leaders in the field of Chinese development, having carried out numerous projects in Tianjin, and submitting an award-winning master plan for the the expansion of Beijing’s central business district.
Bravo!
Failure in Communication
This truck was shipped to Kuwait. The local sign writer was asked to paint on the side of the truck:
“ 36,000 Lts. Diesel Fuel in Arabic No Smoking in Arabic..”
Thanks, Ursarodinia
Another green data center for Oregon — this one for Apple

Facebook’s data center in Prineville, OR
Last December, people familiar with the matter indicated that Apple was “nearing a decision” to build a server farm in Oregon. After a filing with the Crook County clerk’s office emerged last week with Apple’s name on it, the Cupertino, Calif., company has publicly confirmed the development, which is known as “Project Maverick…”
“We purchased the land and it’s for a data center,” said Apple spokeswoman Kristin Huguet, adding that the facility will be “green.” Earlier this week, the company revealed in a Facilities Environmental Report that its massive server farm in North Carolina will utilize the largest end-user-owned onsite solar array and the largest non utility fuel cell installation in the U.S., making it the only facility in its class to earn LEED Platinum certification.
According to the report, county commissioners signed the deed for the purchase on Feb. 15, the same day that the state senate voted in legislation that removed an earlier threat of property taxes for data centers in the area.
Officials said they were bound by non-disclosure agreements and offered few details on the project, though one judge did say that he’s confident it will be “good for Prineville and Crook County.”
“These folks have been wonderful to work with,” said Judge Mike McCabe. “We will look forward to a long-term relationship with them.”
Apple’s facility will be just minutes from a Facebook server farm that opened last year. McCabe revealed that the social networking site “kind of helped recruit” Apple to come to Prineville. Facebook reportedly allowed Apple representatives to tour its facility last summer.
Keep on rocking in the Geek World. Oregon is one of those places where anyone who is hip should consider living – unless you prefer being as dry as I am in New Mexico.
China’s Great Wall Motors opens first European plant

Carlos Sousa driving a Great Wall Haval to 7th overall in Dakar 2012
Great Wall Motor has become the first Chinese carmaker to open an assembly plant in Europe as it aims to lift sales in the region.
The factory, in the northern village of Bahovitsa in Bulgaria, will eventually produce 50,000 vehicles a year.
The facility was built together with Great Wall’s Bulgarian partner Litex Motors. It will manufacture Great Wall’s Hover SUV, Steed pick-up and Voleex city car models.

The plant will initially employ 150 workers capable of making 4,000 vehicles per year, rising to 2,000 employees when at full capacity in 2013.
“Great Wall’s plans to build a plant in Bulgaria and produce automobiles here are aimed at boosting our production capacity and exporting these automobiles for the European market,” company president and chief executive Feng Ying Wang said. “We estimate that in three to five years we will have a wide range of models made here and that these cars will be sold in all European countries.”
The sort of enterprise following on economic growth and market penetration by the Asian countries preceding China into Western markets. I expect this will continue with sensible entry and growth models – in Europe. It’s all part of sensible, interconnected globalising of economies. That doesn’t require ideology, prayer or xenophobia.
I think Cold War conservatism will continue to get in the way of similar job creation in the United States. A ship of fools.
Care home charges grieving daughter £3,000 for access to dead father’s room following his death — WTF?

A care home has apologised and altered its policy after charging a grieving daughter more than £3,000 for “access” to her father’s room following his death.
Sue Cann branded the fee “daylight robbery” after finding her father Kenneth’s nursing home contract required four weeks notice in the event of a resident “passing away”. The 54-year-old described her treatment by Highcliffe Nursing Home in Christchurch, Dorset, where Mr Cann lived for 17 months, as “callous” and “ridiculous”.
She said she understood an additional tariff was justified to allow the care home time to arrange a new tenant, but that a month’s fee was too much. It was only after she paid the substantial figure that officials at the home agreed to reduce their notice period to seven days, in line with most other UK care homes.
Miss Cann said: “When the letter came I was so shocked about it. My father had to give 28 days notice for moving or passing away…But how on earth can you do that? Nobody knows when they are going to die. It’s ridiculous. To pay for a month which covers his food, laundry and nursing care is daylight robbery.”
Mr Cann, who spent 42 years working as a service manager for British Gas, lived with wife, Winnie, until March last year when she died aged 74 from ovarian cancer. Soon after he was admitted to Highcliffe Nursing Home, run by Suffolk-based Kingsley Healthcare, but he passed away following a long battle with dementia on January 30.
Mr Cann, who had worked hard to save for his retirement, ended up spending £63,000 for the duration of his time at the home…
“I wouldn’t mind paying for a week but I really object to a whole month. His belongings were removed from the home on the evening of his death as far as I’m aware.
Yesterday, a spokesman for Kingsley Healthcare said following a review the company’s notice period for death had been changed from 28 to seven days.
Following a review – and the stink in the press and online about their greedy, moneygrubbing policies.
China VP impressed by Ireland’s hi-tech industries, education

Xi Jinping kicking a Gaelic football at Croke Park in Dublin
Daylife/Getty Images used by permission
Ireland’s reputation as a technology hub is a big draw for China, the Chinese leader-in-waiting Xi Jinping said at the end of a three-day visit, his only European Union stop on a world tour. Speaking at an investment forum Monday with some 350 companies, Xi said Ireland’s history, scenery and culture had impressed the Chinese people.
But he made clear the country’s clout in hi-tech and emerging industries, largely due to a low corporation tax rate that has lured Silicon Valley heavyweights, was a key factor.
“Ireland is strong in software development, ICT and biotech medicines and other hi-tech industries…We give top priority to the new generation of IT and bio-tech,” Xi told delegates via a translator Monday, adding it would be the priority for future trade between the two countries.
“Ireland is a country that is strong in trade and services and this bodes well for our co-operation,” he added…
“They are hungry for technologies, things are changing so fast. Ireland is such a small country but we have lot of small and medium businesses with great technologies,” said Jo Cheng, head of analytics at Dublin-based Idiro Technologies, which she noted, had been approached by two Chinese companies in recent months for the first time.
“Ireland is the (European) headquarters of so many massive technology companies like Google, Facebook, eBay. There is a reason why they’re here,” said Cheng, a Chinese national living in Ireland…
His fascination with Ireland dates back to his first trip to Dublin in 2003 when he was a provincial party secretary…”I recall my first visit to this country in 2003. At that time one Irish person I met said to me an Irish saying that is good things often come in small packages and that person said that is us, that is Ireland. We believe Ireland has so many good things to offer,” said Xi Sunday evening.
Ireland’s Prime Minister Enda Kenny, who will visit China next month with a trade delegation, added that the countries had a lot to offer each other, despite the differences in size…
Xi, who visited the United States last week and moves on to Turkey Tuesday, began his Irish stay at a high tech zone near Shannon airport that inspired the building of a similar zone in Shenzhen, the pilot project of former leader Deng Xiaoping’s economic reforms…
Beijing has followed with interest Ireland’s transformation from a developing farming economy to one that attracted international technology and drug companies, and is now showing first signs of rebounding from an economic crash…
Eire closed the loophole style of taxation years ago and has committed to a good education through college level free for its citizens. Two things that don’t stand a chance of getting through our ideologue-governed Congress.
Though specifics didn’t come up, I imagine the likelihood of real investment of Chinese companies in Irish firms won’t have to pass through the sort of Cold war vetting that is inevtiable in the US or the UK.
Despite year-old court order, kids in tainted daycare still not being regularly tested for mercury poisoning
Catherine Cuffy and son Garrett at the Franklin Township site after demolition
Despite a judge’s order more than a year ago, the children who inhaled toxic mercury vapors in the infamous former Kiddie Kollege day care still have not been monitored for potential medical problems.
The story attracted national attention in July 2006, after New Jersey inspectors discovered babies and children playing inside a heavily contaminated Gloucester County building that had once been a thermometer factory.
Kiddie Kollege has become a frequently cited cautionary tale as laws have been adopted to keep other children from being subjected to toxins. But the 100 who were exposed over two years at the Franklin Township day care and nursery school have been nearly forgotten in a bitter court fight that is again gathering steam…
“I keep wondering how our kids got lost in the system,” said Catherine Cuffy, whose son, Garrett, attended Kiddie Kollege from age 18 months to 3.
“Other than demolish the building, they haven’t done anything for the children,” Cuffy said. “There was no follow-up to find out ‘did the mercury affect them, and how?”
When the state Department of Health tested the children’s urine in the weeks after the day care was closed, Garrett’s had an elevated level of the toxin. Subsequent tests showed the levels had dropped…
Years of litigation led to a stormy three-month trial and a Jan. 11, 2011, verdict by New Jersey Superior Court Judge James Rafferty. All of the defendants were negligent, he said, because they knew of the contamination before the day care obtained approvals to open.
Rafferty, who delayed his retirement to finish the case, ordered the defendants to contribute to a $1.5 million fund for neuropsychological tests until the children reached age 24. Relying upon expert medical testimony, the judge said there was a need for early detection and treatment if health problems emerged.
But the testing was never launched.
Some of the necessary funds are already in escrow. RTFA and you need a scorecard to figure out which combination of lawyers, politicians, property-owners sucks the most. No one seems to give a damn about kids.
It’s been a year since the testing was ordered to start and none of that seems to be as important as shuffling the stacks of money required to guarantee the tests – with lawyers taking a cut at every hearing.





