Music, comedy strike defiant tone at Sandy concert






NEW YORK (AP) — Music and comedy royalty struck a defiant tone in a benefit concert for Superstorm Sandy victims on Wednesday, asking for help to rebuild a New York metropolitan area most of them know well.


The sold-out Madison Square Garden show was televised, streamed online and aired on radio all over the world. Producers said up to 2 billion people could experience the concert live.






“When are you going to learn,” comic and New Jersey native Jon Stewart said. “You can throw anything at us — terrorists, hurricanes. You can take away our giant sodas. It doesn’t matter. We’re coming back stronger every time.”


Jersey shore hero Bruce Springsteen set a roaring tone, opening the concert with “Land of Hope and Dreams” and “Wrecking Ball.” He addressed the rebuilding process in introducing his song “My City of Ruins,” noting it was written about the decline of Asbury Park, N.J. before that city’s renaissance over the past decade. What made the Jersey shore special was its inclusiveness, a place where people of all incomes and backgrounds could find a place, he said.


“I pray that that characteristic remains along the Jersey shore because that’s what makes it special,” Springsteen said.


He mixed a verse of Tom Waits’ “Jersey Girl” into the song before calling New Jersey neighbor Jon Bon Jovi to join him in a rousing “Born to Run.” Springsteen later returned the favor by joining Bon Jovi on “Who Says You Can’t Go Home.”


Adam Sandler hearkened back to his “Saturday Night Live” days with a ribald rewrite of the oft-sung “Hallelujah” that composer Leonard Cohen never would have dreamed. The rewritten chorus says, “Sandy, screw ya, we’ll get through ya, because we’re New Yawkers.


Sandler wore a New York Jets T-shirt and mined Donald Trump, Michael Bloomberg, the New York Knicks, Times Square porn and Jets quarterback Mark Sanchez for laugh lines.


The music lineup was heavily weighted toward classic rock, which has the type of fans able to afford a show for which ticket prices ranged from $ 150 to $ 2,500. Even with those prices, people with tickets have been offering them for more on broker sites such as StubHub, an attempt at profiteering that producers fumed was “despicable.”


“This has got to be the largest collection of old English musicians ever assembled in Madison Square Garden,” Rolling Stones rocker Mick Jagger said. “If it rains in London, you’ve got to come and help us.”


In fighting trim for a series of 50th anniversary concerts in the New York area, the Stones ripped through “You’ve Got Me Rockin’” and “Jumping Jack Flash.


Jagger wasn’t in New York City for Sandy, but he said in an interview before the concert that his apartment was flooded with 2 feet of water.


Eric Clapton switched from acoustic to electric guitar and sang “Nobody Knows You When You’re Down and Out” and “Crossroads.” New York was a backdrop for Clapton’s personal tragedy, when his young son died after falling out of a window.


Roger Waters played a set of Pink Floyd’s spacey rock, joined by Eddie Vedder for “Comfortably Numb.” Waters stuck to the music and left the fundraising to others.


“Can’t chat,” he said, “because we only have 30 minutes.”


The sold-out “12-12-12″ concert was being shown on 37 television stations in the United States and more than 200 others worldwide. It was to be streamed on 30 websites, including YouTube and Yahoo, and played on radio stations. Theaters, including 27 in the New York region and dozens more elsewhere, were showing it live.


Proceeds from the show will be distributed through the Robin Hood Foundation. More than $ 30 million was raised through ticket sales alone.


The powerful storm left parts of New York City underwater and left millions of people in several states without heat or electricity for weeks. It’s blamed for at least 125 deaths, including 104 in New York and New Jersey, and it destroyed or damaged 305,000 housing units in New York alone.


Other concert performers were to include Long Islander Billy Joel (“New York State of Mind”) and New Yorker Alicia Keys (“Empire State of Mind”). Even Liverpool’s Paul McCartney has a New York office, Hamptons home and a wife, Nancy Shevell, who spent a decade on the board of the agency that runs New York‘s public transit system.


E Street Band guitarist Steve Van Zandt said backstage that musicians are often quick to help when they can.


“Yes, it’s more personal because literally the Jersey shore is where we grew up,” he said. “But we’d be here anyway.”


The concert came a day after the death of sitar master Ravi Shankar, a performer at the 1971 “Concert for Bangladesh” considered the grandfather of music benefits. That concert also was in Madison Square Garden.


___


AP Music Writer Mesfin Fekadu in New York contributed to this report.


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Venezuela’s Chavez in delicate state after surgery






CARACAS (Reuters) – Venezuelan President Hugo Chavez is in stable but delicate condition after his latest cancer surgery, the government said on Wednesday in a somber assessment that could indicate an end to his 14-year rule.


“Having been through a complex and delicate surgery, he is now in an equally complex post-operation process,” Information Minister Ernesto Villegas said on national television. “We trust in his strength.”






In an earlier broadcast, Vice President Nicolas Maduro spoke of “difficult” times ahead, urging Venezuelans to pray for Chavez and to keep faith that he would come home soon from Cuba, where he underwent the surgery on Tuesday.


Chavez’s downturn has opened gaping uncertainty about the future of his self-styled socialist revolution in a nation of 29 million people with the world’s largest oil reserves.


A frequent critic of the United States, Chavez has spearheaded a resurgence of the left in Latin America, galvanized a global “anti-imperialist” alliance from Iran to Belarus and led a decade-long push by developing nations for greater control over natural resources.


A close ally, Ecuador’s President Rafael Correa, sought to put a more positive spin on the cancer operation, telling reporters in Quito that Chavez was doing all right.


“He is fine, even though the surgery was complex,” Correa said, but he added that the future was not certain.


“If the gravity of his illness meant he could not continue to lead Venezuela, the revolutions must continue, in Venezuela, in Ecuador, in Argentina, in Bolivia.”


At home, Chavez has won cult-like status among the poor with his charisma and oil-financed largesse from health clinics to free homes. But he has alienated business with frequent nationalizations and angered many Venezuelans by putting ideological crusades over basic services.


Maduro, whom Chavez has named as a preferred successor should he be incapacitated, offered no medical details on Wednesday but urged Venezuelans to stay hopeful.


PRAYER VIGILS


Supporters have been holding prayer vigils, while opponents also sent Chavez best wishes for a successful recovery. Senior government ministers and military commanders attended a Mass to pray for Chavez’s health, which was broadcast live on state TV.


“He is fighting for life,” the head of the National Assembly, Diosdado Cabello, told the congregation.


In a plaza near the center of Caracas, neighbors came to write well wishes for Chavez on a white cloth. But government officials appeared to be cautiously preparing the president’s supporters for the worst.


Villegas said in a statement that Venezuelans should view Chavez’s situation like that of an ill relative and have faith that he will return.


“If he doesn’t, our people should be ready to understand. It would be irresponsible to hide the delicate nature of the moment we are currently living,” he wrote.


One government source said Chavez was in critical condition early on Wednesday, but since then his vital signs had improved.


State media ran hours of tributes to the president, and of rank-and-file supporters around the country gushing with admiration. “He is a second Jesus Christ,” one woman beamed.


The stakes also are enormous for allies around Latin America and the Caribbean who rely on generous oil subsidies and other aid from Chavez. President Raul Castro’s communist government in Cuba is particularly vulnerable because of its dependence on more than 100,000 barrels of oil per day from Venezuela.


Wall Street investors are also watching closely in the hope that Chavez’s intransigent socialism will give way to a more market-friendly administration.


Venezuela’s global bonds, which usually rise on bad news about Chavez’s health, saw a muted reaction on Wednesday.


The operation was Chavez’s fourth in Havana since mid-2011 for a recurring cancer in the pelvic region.


Opposition leaders have criticized the government for lack of transparency, pointing out that other Latin American leaders provided detailed reports of both diagnoses and treatments.


Chavez is due to start a new, six-year term on January 10 after his October re-election.


REGIONAL ELECTIONS LOOM


The Chavez health saga has eclipsed the buildup to regional elections on Sunday that will be an important test of political forces in Venezuela at such a pivotal moment.


Of most interest in the 23 state elections is opposition leader Henrique Capriles’ bid to retain the Miranda governorship against a challenge from former Vice President Elias Jaua.


Polls have been mixed with one showing Capriles way ahead and another giving Jaua a 5 percentage point lead.


Capriles must win if he is to retain credibility and be the opposition’s presidential candidate-in-waiting should Chavez’s cancer force a new election. Even though it may be premature, many Venezuelans already are asking themselves what a Capriles versus Maduro presidential election would be like.


Capriles, who favors a Brazilian-style government promoting open markets with firm welfare safeguards, won 44 percent in the election, a record 6.5 million votes for the opposition.


Although past polls have shown Capriles more popular than all of Chavez’s allies, that would not necessarily be the case against a Maduro candidacy imbued with Chavez’s personal blessing and with the power of the Socialist Party behind him.


(Additional reporting by Marianna Parraga, Eyanir Chinea, Mario Naranjo, Efrain Otero and Daniel Wallis in Caracas, and Eduardo Garcia in Quito.; Editing by Kieran Murray and Christopher Wilson)


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Fed ties rates to jobs recovery, adds to stimulus






WASHINGTON (Reuters) – The U.S. Federal Reserve, announcing a new round of monetary stimulus, took the unprecedented step on Wednesday of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.


It was the latest in a series of unorthodox measures taken by central banks around the world to battle erratic, sub-par recoveries from the financial crisis and recession of 2007-2009.






The Fed expects to hold rates steady until its new threshold on unemployment was reached as long as inflation does not threaten to break above 2.5 percent and inflation expectations are contained. It also replaced an expiring stimulus program with a fresh round of Treasury debt purchases.


The central bank previously said it expected to hold rates near zero through at least mid-2015, but policymakers were uncomfortable making a pledge based on the calendar rather than the economic goals they hope to achieve.


“By tying future monetary policy more explicitly to economic conditions, this formulation of our policy guidance should … make monetary policy more transparent and predictable to the public,” Fed Chairman Ben Bernanke told a news conference.


Importantly, in the eyes of Fed officials, the new framework should help financial markets assess incoming data in a way that helps them better guess were monetary policy is heading.


Right now, the Fed is engaged in an open-ended program of asset purchases, which it bolstered on Wednesday.


Officials committed to buy $ 45 billion in longer-term Treasuries each month on top of the $ 40 billion per month in mortgage-backed bonds they started purchasing in September. They repeated a pledge to keep pumping money into the economy until the outlook for the labor market improves “substantially.”


“The committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions,” the Fed’s policy-setting panel said after a two-day meeting.


BALANCE SHEET ACTION


The Fed will fund the new Treasury purchases with an expansion of its $ 2.8 trillion balance sheet. Under the expiring “Operation Twist” program, the Fed bought an identical amount, but paid for them with proceeds from sales and redemptions of short-term debt.


Some policymakers view actions that expand the Fed’s balance sheet as economically more potent than actions that do not. However, Bernanke said the dose of stimulus would remain about the same, given that the central bank is still purchasing a combined $ 85 billion per month in longer-term securities.


“They see an anemic economy, and they’re doing all they can to get any economic progress,” said Alan Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio.


The Fed’s decision initially gave a small lift to U.S. stock prices, but the major indexes closed mostly unchanged, while government bond prices fell. Oil prices rose and the dollar weakened against the euro.


Fed policymakers voted 11-1 to back the new plan. Jeffrey Lacker, president of the Richmond Federal Reserve Bank, dissented, as he has at every meeting this year, expressing opposition both to the bond buying and the new economic thresholds.


SWEATING A WEAK RECOVERY


The newly unveiled numerical policy guidelines offered the most specific suggestion yet that the Fed is willing to tolerate slightly higher inflation as it tries to juice up a moribund economy and spur stronger job growth.


A drop in the unemployment rate to 7.7 percent in November from 7.9 percent in October was driven by workers exiting the labor force, and therefore did not come close to satisfying the condition the Fed has set for trimming its stimulus.


In response to the financial crisis and recession, the Fed slashed overnight rates to zero almost exactly four years ago and bought some $ 2.4 trillion in mortgage and Treasury securities to keep long-term rates down.


Despite its unconventional and aggressive efforts, U.S. economic growth remains tepid. Gross domestic product grew at a 2.7 percent annual rate in the third quarter, but a Reuters poll published on Wednesday showed economists expect it to expand at just a 1.2 percent pace in the current quarter.


Businesses have hunkered down, fearful of a tightening of fiscal policy as politicians in Washington wrangle over ways to avoid a $ 600 billion mix of spending reductions and expiring tax cuts set to take hold at the start of 2013.


Bernanke has warned that running over this “fiscal cliff” would lead to a new recession. He told reporters the Fed could ramp up its bond buying “a bit,” but emphasized that monetary policy has limits and could not fully offset the impact.


NEW TACK ON RATES


He said the central bank would look at a range of indicators, not just the rates of unemployment and inflation, in determining when to finally push overnight borrowing costs higher, adding that the Fed was not on “auto pilot.”


“Reaching the thresholds will not immediately trigger a reduction in policy accommodation,” Bernanke said. “No single indicator provides a complete assessment of the state of the labor market.”


Bernanke said the new framework was consistent with the earlier calendar guidance, because officials do not expect the jobless rate to reach 6.5 percent until sometime in 2015.


Indeed, a fresh set of economic projections from the Fed put the rate in a 6 percent to 6.6 percent range in the fourth quarter of 2015. At the same time, the projections showed that at no point over that forecast horizon does the central bank see inflation topping its 2 percent target.


Officials held to their assessment that they could eventually push the unemployment rate down to a 5.2 percent to 6 percent range without sparking inflation, although Bernanke cautioned that policy would have to start tightening before it fell so low. In its statement, the Fed said its long-term asset purchase program would end well before any rate increase.


Fed policymakers see GDP expanding between 2.3 percent and 3.0 percent next year. That is down from the 2.5 percent to 3.0 percent they forecast in September, but is still a bit more optimistic than most private forecasters. The Reuters poll of economists found a median U.S. growth estimate of 2.1 percent for next year.


(Writing by Pedro Nicolaci da Costa; Editing by Andrea Ricci, Tim Ahmann, Leslie Adler and Andre Grenon)


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The Hobbit: Richard Armitage Talks Preparations For Playing Thorin Oakenshield






British actor Richard Armitage admitted it wasn’t a walk in the park to play a J.R.R. Tolkien character in Peter Jackson’s reimagining of “The Hobbit,” the first installment of which is on its way into theaters.


Upon touching down in New Zealand, where the trilogy was shot, the cast had a lot of character preparation to do.






PLAY IT NOW: Martin Freeman Discusses The Hobbit’s ‘Good Chemistry’ & Playing Bilbo Baggins


“We arrived in February 2011 and we went straight into a training program, which was called ‘Dwarf Bootcamp,’ which was literally boots — these huge boots. We learned how to walk, we wrestled with each other, we did archery together, we did sword fighting, hammer fighting, horse riding — everything you could possibly think of,” Richard, who plays Thorin Oakenshield in the film told Access Hollywood at the film’s junket.


In addition, the cast, which includes his former “Cold Feet” co-star James Nesbitt as Bofur, found ways to get to know each other better off set.


VIEW THE PHOTOS: The Hobbit: An Unexpected Journey — New York City Premiere


“We went round to each other’s houses and we cooked food together, we went to the pub and got drunk together, so there was an incredibly great bonding time between the dwarves,” he said.


Richard had plenty of experience sword fighting and horse riding in the BBC America series “Robin Hood,” but it was something else that came in handy during the long days on set.


“I’d done a number of shows where I’d had to use sword fighting and I’d also done horse riding. I’d also pulled guns out of my pocket. That was less useful,” he laughed, likely referring to his recent role in the PBS-import series “MI-5,” where he played a British spy. “But, yeah, you draw on everything. I’d worked at the Royal Shakespeare Company, so the vocal work was really useful to kind of pull that from there. I’d worked in a circus, there were… all sorts of things that were really useful, but the one thing that I do have — for lack of talent — is stamina and that’s the one thing I think everybody needed on this job.”


VIEW THE PHOTOS: Meet ‘The Hobbit’ Cast!


An imagination was useful also, but Richard said what turned out on the big screen was still wilder – and more beautiful – than he dreamed of.


“So many moments… Actually, apart from the eagles — which every single time I’ve seen this film absolutely blows my mind and I can barely keep the tears back and [it has] nothing to do with the pathos of the scene, just that feeling of flight moves me — is the throne of Aragorn, in the beginning of the prologue,” he told Access of the moment that moved him most. “When it got to [filming] that scene, I walked on and… it was just a green cross on the floor with a tiny green chair… [But in the film], they just made this incredible, almost space aged, sort of suspended seat in the middle of this stalagmite. It just blows my mind when I see that.”


VIEW THE PHOTOS: The Brit Pack: Hot Shots Of Stars From The UK!


“The Hobbit: An Unexpected Journey” hits theaters on December 14, 2012, followed by “The Hobbit: The Desolation of Smaug,” on December 13, 2013 and “The Hobbit: There and Back Again,” on July 18, 2014.


– Jolie Lash


Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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New Flickr iPhone app to compete with Instagram and Twitter with 16 filters






Hot on the heels of its email redesign, Yahoo (YHOO) announced on Wednesday that it has completely redesigned the Flickr iPhone app. The new app borrows heavily from Instagram and focuses on what makes Flickr special: photos and communities. Yahoo’s new Flickr app also includes 16 filters with their own fancy names to go head-on with Instagram and Twitter’s recently updated app that added eight filters. Users can now access the Flickr app with numerous accounts including Facebook (FB) and Google (GOOG) and photos can be shared to Facebook, Twitter, Tumblr or via email. The new Flickr app is available for free on iPhone but to our disappointment, there isn’t an iPad-optimized version.


Ellis Hamburger from The Verge penned an interesting editorial on how Twitter misses the mark by simply adding filters to its app without having the close community that makes Instagram so addictive. Led by CEO Marissa Mayer, Yahoo seems aware that mobile apps thrive on the communities that sprout up. The new Flickr app’s emphasis on how the images are displayed and shared in visually appealing and digestible thumbnails suggests Yahoo finally understands mobile.






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Spice Girls take stage at musical premiere






LONDON (Reuters) – The Spice Girls took to the stage on Tuesday after the world premiere of a new musical loosely based on their meteoric rise to fame in the 1990s, earning huge cheers from an audience that only really got going at the encore.


“Viva Forever!” was the brainchild of producer Judy Craymer, whose “Mamma Mia!” musical based on the hits of ABBA has earned nearly $ 2 billion worldwide and spawned a hit movie starring Meryl Streep.






She teamed up with British comedian Jennifer Saunders to create a story about the central character Viva, a sprightly teenager who, along with her friends, gets into the final stages of a TV singing contest closely resembling “The X Factor”.


To boost flagging audience figures – a nod to “The X Factor”s real-life ratings woes in Britain this season – their “mentor” springs a surprise and throws out three members of the band to leave Viva on her own.


What follows is part morality tale examining what is more important – friends, family or fame – and part satire on reality television, including a callous, Simon Cowell-like producer.


“We love you Judy!” said Geri Halliwell at the end of the show, which closed with a romp through some of the Spice Girls‘ biggest hits including “Spice Up Your Life”.


“Thank you for making the Spice Girls‘ dream come true,” Halliwell added.


Halliwell was joined on stage by Victoria Beckham, Melanie Brown, Emma Bunton and Melanie Chisholm, who together stormed the charts in the 1990s and put “girl power” on the map.


Beckham, who arrived at the London premiere after her ex-bandmates, sat with her soccer star husband David and three sons, who clapped along to the music during the final medley.


NATIONAL TREASURES


Now all young mothers in their late 30s and early 40s, The Spice Girls are still affectionately known by the nicknames they adopted in the band – Posh (Beckham), Scary (Brown), Baby (Bunton), Sporty (Chisholm) and Ginger (Halliwell).


They were hailed as modern-day feminists by some and dismissed as vacuous pop princesses by others, but their success is beyond doubt. They sold 55 million records, had nine British No. 1 singles and three back-to-back Christmas No. 1s.


The band broke up around 12 years ago, and internal bickering among the members was long the delight of Britain’s celebrity-obsessed tabloids.


Perhaps surprisingly, given the bust-ups and hissy fits, the group has been united in its backing of the new musical, and underlining the Spice Girls‘ lasting popularity they played a major part in the closing ceremony at the London Olympics.


Paul Taylor, writing in the Independent newspaper, gave the musical two stars out of five in his review.


The Spice Girls‘ songs, with their clever hooks and catchy rhythms, are better at projecting an attitude than fleshing out a dramatic situation,” he wrote, describing Saunders’ story as “charmless”, “messy” and “lackluster”.


“Not only does her script rarely give you that necessary gleeful sense of expectancy about where the songs are going to be shoe-horned in, but it’s embarrassingly derivative of ‘Mamma Mia!’ and looks way past its sell-by date in its utterly surprise-free satiric swipe at ‘X Factor’.”


Saunders said before the show that she considered herself the “sixth” Spice Girl.


“We used to travel around everywhere to see them and they were so great with my kids,” said the 54-year-old, best known for playing a self-absorbed, eccentric mother in the popular British comedy series “Absolutely Fabulous”.


“The thought of a Spice Girls musical written by somebody else was not acceptable,” she told the Daily Mirror newspaper. “Because I was so close to them, I couldn’t let it slip through my fingers.”


(Reporting by Mike Collett-White, editing by Jill Serjeant)


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Asia stocks gain, unfazed by NKorea rocket launch






BANGKOK (AP) — Asian stock markets rose Wednesday as a German business confidence survey alleviated concerns that Europe’s largest economy might fall into recession. Investors brushed off North Korea‘s latest test launch of a long-range rocket.


The ZEW indicator of economic sentiment defied expectations by rising to plus 6.9 points, from minus 15.7 in November. Markets had expected the index to remain mired in negative numbers. Germany’s economy grew a modest 0.2 percent in the third quarter and expectations are for another weak quarter in the last three months of the year.






Wolfgang Franz, head of the ZEW, or Centre for European Economic Research, said Tuesday the survey showed that Germany isn’t facing recession unless the debt crisis afflicting euro countries reignites.


Japan protested North Korea’s launch of a rocket and was convening its security council to analyze the situation. Rocket tests are seen as crucial to advancing North Korea’s nuclear weapons ambitions. Officials in Washington, Seoul, Tokyo and elsewhere have been urging North Korea to cancel the liftoff.


Despite the launch, Japan’s Nikkei 225 index rose 0.5 percent to 9,570.08. Hong Kong’s Hang Seng added 0.6 percent to 22,446.36. South Korea’s Kospi gained 0.2 percent to 1,969.26. Australia’s S&P/ASX 200 added 0.3 percent to 4,592.40.


Among individual stocks, shares of Australian mining giant BHP Billiton rose 1.2 percent after the company announced it has agreed to sell its stake in a proposed Australian gas project to Chinese state-owned energy producer PetroChina for $ 1.6 billion.


Traders also are watching the U.S. Federal Reserve, which began a two-day policy meeting Tuesday. Some economists expect the Fed to Wednesday announce a new bond-buying program, or quantitative easing, to boost the economy.


Wall Street Tuesday as investors hoped U.S. leaders would eventually thrash out a budget deal needed to keep a slew of tax increases and spending cuts from hitting the world’s largest economy. The longer a U.S. deal fails to emerge to avoid the so-called “fiscal cliff” of automatic tax increases and spending cuts at the start of next year, the more fidgety investors are likely to become.


The Dow Jones industrial average rose 0.6 percent to 13,248.44. The S&P 500 gained 0.7 percent to 1,427.84. The Nasdaq composite index rose 1.2 percent to 3,022.30


Benchmark crude for January delivery was up 19 cents to $ 85.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 23 cents to close at $ 85.79 per barrel on the Nymex on Tuesday.


In currencies, the euro rose to $ 1.3009 from $ 1.3003 late Tuesday in New York. The dollar rose to 82.55 yen from 82.50 yen.


___


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Corruption probe shrouds Quebec in new darkness






MONTREAL (Reuters) – Half a century ago, a new crop of Quebec leaders sparked the so-called Quiet Revolution to eradicate the “Great Darkness” – decades of corruption that kept Canada‘s French-speaking province under the dominance of one party and the Catholic church.


The revolution’s reforms, including cleaning up the way lawmakers were elected and secularizing the education system, seemed to work, paving the way for decades of growth, progress and prominence as Canada emerged as a model of democracy.






Fifty years later, a public inquiry into corruption and government bid-rigging suggests the province’s politics are not as clean as Quebecers had hoped or believed.


Since May, when the inquiry opened in Montreal, Canadians have been getting daily doses of revelations of fraud through live broadcasts on French-language television stations. Corruption involving the Mafia, construction bosses and politicians, the inquiry has shown, drove up the average building cost of municipal contracts by more than 30 percent in Montreal, Canada’s second-largest city.


Last month, Montreal Mayor Gerald Tremblay resigned as did the mayor of nearby Laval, Gilles Vaillancourt. Both denied doing anything wrong, but said they could not govern amid the accusations of corruption involving rigging of municipal contracts, kickbacks from the contracts and illegal financing of elections.


Tremblay has not been charged by police. Vaillancourt’s homes and offices have been raided several times by Quebec’s anti-corruption squad, which operates independently of the inquiry, but no charges have been filed against him either. Police said the raids were part of an investigation but they would not release further details.


“Quebecers lived for several years under the impression that they had found the right formula, that their parties were clean,” said Pierre Martin, political science professor at the University of Montreal. Now, he said, “people at all levels are fed up.”


The inquiry must submit its final report to the Quebec government by next October. It has exposed practices worthy of a Hollywood noir thriller – a mob boss stuffing his socks with money, rigged construction contracts, call girls offered as gifts, and a party fundraiser with so much cash he could not close the door of his safe.


“Even though we are in the early days, what is emerging is a pretty troubling portrait of the way public contracts were awarded,” said Antonia Maioni, director of the McGill Institute for the Study of Canada in Montreal.


Quebec’s Liberals, the force behind the Quiet Revolution, launched the inquiry as rumors of corruption swirled. The government then called an election for September, a year ahead of schedule, in what was seen as an attempt to stop damaging testimony hurting its popularity.


The tactic did not help. Jean Charest’s Liberals lost to the Parti Quebecois, whose ultimate aim is to take the French-speaking province, the size of Western Europe, out of Canada.


‘IT WASN’T COMPLICATED’


According to allegations at the inquiry, the corruption helped three main entities: the construction bosses who colluded to bid on contracts, the Montreal Mafia dons who swooped in for their share, and the municipal politicians who received kickbacks to finance campaigns.


In Quebec, the Mafia has been dominated by the Rizzuto family, with tentacles to the rest of Canada and crime families in New York and abroad. But recently the syndicate has been facing challenges from other crime groups in Montreal, according to the Toronto-based Mafia analyst and author Antonio Nicaso.


The reputed godfather of the syndicate, Vito Rizzuto, has been subpoenaed to appear before the commission, but the date for his testimony has not been set.


The hearings have zeroed in on four construction bosses and how their companies worked with the Mafia, bribed municipal engineers and provided funds for mayoralty campaigns in Montreal, the business capital for Quebec’s 8 million people.


“It’s not good for the economy,” said Martin. “It’s not good for any kind of legitimate business that tries to enter into any kind of long-term relationship with the public sector.”


Quebec’s anti-corruption squad has arrested 35 people so far this year, staging well-publicized raids on mayoral offices and on construction and engineering companies. The squad has arrested civil servants and owners of construction companies, among others.


“I now must suffer an unbearable injustice,” Tremblay said in a somber resignation speech earlier this month after a decade as mayor of Montreal, saying he could not continue in office because the allegations of corruption were causing a paralysis at City Hall.


Some of the most explosive allegations at the inquiry, headed by Quebec Superior Court Justice France Charbonneau, came from Lino Zambito, owner of a now bankrupt construction company, and from a top worker for Tremblay’s political party, Union Montreal.


Zambito, who is seen as one of the smaller players and who also faces fraud charges, described a system of collusion between organized crime, business cartels and corrupt civil servants, with payments made according to a predetermined formula.


“The entrepreneurs made money, and there was an amount that was due to the Mafia,” Zambito told the inquiry. “It wasn’t complicated.”


Zambito said the Mafia got 2.5 percent of the value of a contract, 3 percent went to Union Montreal and 1 percent to the engineer tasked with inflating contract prices.


Tremblay did not respond to emails requesting comment on the allegations of corruption at city hall.


A former party organizer, Martin Dumont, alleged the mayor was aware of double bookkeeping used to hide illegal funding during a 2004 election.


Dumont said the mayor walked out of the room during a meeting that explained the double bookkeeping system, saying he did not want to know anything about it.


Dumont also described how he was called into the office of a fundraiser for Union Montreal to help close the door of a safe because it was too full of money.


“I think it was the largest amount I’d ever seen in my life,” Dumont said at the inquiry.


GOLF, HOCKEY, ESCORTS


The inquiry also saw videos linking construction company players with Mafia bosses. In one police surveillance video, a Mafia boss was seen stuffing cash into his socks.


A retired city of Montreal engineer, Gilles Surprenant, described how he first accepted a bribe in the late 1980s after being “intimidated” by a construction company owner. Over the years he said he accepted over $ 700,000 from the owners in return for inflating the price of the contracts.


Another retired engineer, Luc Leclerc, admitted to bagging half a million dollars for the same service. He said the system was well-known to many at city hall and simply part of the “business culture” in Montreal. He also got gifts and paid golf trips to the Caribbean with other businessmen and Mafia bosses.


Gilles Vezina, who is currently suspended from his job as a city engineer, concurred.


“It was part of our business relationships to get advantages like golf, hockey, Christmas gifts” from construction bosses, he told the inquiry in mid-November.


The gifts didn’t stop there. Vezina said he was twice offered the services of prostitutes from different construction bosses in the 1980s or early 1990s, which he said he refused.


The accusations are jarring for a country that prides itself on being one of the least corrupt places in the world, according to corruption watchdog Transparency International. But experts say corruption in Montreal was something of an open secret.


“The alarm signals have been going off here for 20 years and no one has done anything,” said Andre Cedilot, a former journalist who co-wrote a book on the Canadian Mafia.


Quebec’s new government has introduced legislation tasking the province’s securities regulator with vetting businesses vying for public contracts and allowing it to block companies that do not measure up.


Anti-corruption activist Jonathan Brun was not optimistic.


“You’ve got to use modern technology,” said Brun, a co-founder of Quebec Ouvert, a group that wants to make all information about contracts freely available rather than asking regulators to oversee individual companies. “You’ve got to change the entire system if you really want to fight corruption.”


(Writing by Russ Blinch; Editing by Janet Guttsman, Mary Milliken and Prudence Crowther)


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Facebook helps FBI bust cybercriminals blamed for $850 million losses






SAN FRANCISCO (Reuters) – Investigators led by the Federal Bureau of Investigation and aided by Facebook Inc, have busted an international criminal ring that infected 11 million computers around the world and caused more than $ 850 million in total losses in one of the largest cybercrime hauls in history.


The FBI, working in concert with the world’s largest social network and several international law enforcement agencies, arrested 10 people it says infected computers with “Yahos” malicious software, then stole credit card, bank and other personal information.






Facebook’s security team assisted the FBI after “Yahos” targeted its users from 2010 to October 2012, the U.S. federal agency said in a statement on its website. The social network helped identify the criminals and spot affected accounts, it said.


Its “security systems were able to detect affected accounts and provide tools to remove these threats,” the FBI said.


According to the agency, which worked also with the U.S. Department of Justice, the accused hackers employed the “Butterfly Botnet”. Botnets are networks of compromised computers that can be used in a variety of cyberattacks on personal computers.


The FBI said it nabbed 10 people from Bosnia and Herzegovina, Croatia, Macedonia, New Zealand, Peru, the United Kingdom, and the United States, executed numerous search warrants and conducted a raft of interviews.


It estimated the total losses from their activities at more than $ 850 million, without elaborating.


Hard data is tough to come by, but experts say cybercrime is on the rise around the world as PC and mobile computing become more prevalent and as more and more financial transactions shift online, leaving law enforcement, cybersecurity professionals and targeted corporations increasingly hard-pressed to spot and ward off attacks.


(Reporting By Edwin Chan; Editing by Matt Driskill)


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“X Factor” castoff Cheryl Cole files $2.3 million lawsuit against producers






LOS ANGELES (TheWrap.com) – Cheryl Cole, who was originally hired as a judge for the American version of “The X Factor” but was replaced by Pussycat Doll Nicole Scherzinger before the show premiered, is now suing the producers of the show for $ 2.3 million dollars, according to court papers obtained by TheWrap.


In the complaint against Blue Orbit Productions, filed in Los Angeles Superior Court, Girls Aloud singer Cole claims that she entered a pay-or-play agreement with Blue Orbit Productions in April 22, 2011, that guaranteed her $ 1.8 million for the first season of the show, and $ 2 million for the second.






The suit also says that Cole was also due to receive other expenses for housing, wardrobe, styling and general living expenses.


Cole claims that she received the $ 1.8 million for the first season, but the producers didn’t pony up for the wardrobe/styling allowance, housing allowance (which, according to the suit, was $ 15,000 per month) or living allowance.


She also didn’t receive her guaranteed $ 2 million for the second season, the suit claims.


Now Cole wants damages “in excess of $ 2.3 million,” plus interest at the legal rate, and court costs.


TheWrap was unable to reach Blue Orbit Productions for comment.


(Pamela Chelin contributed to this report)


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