HSBC to pay record $1.9B fine

British-owned bank HSBC is paying $1.9B to settle a US money-laundering probe. The bank was investigated for involvement in the transfer of funds from Mexican drug cartels and sanctioned nations like Iran. (Dec. 11)









HSBC has agreed to pay a record $1.92 billion fine to settle a multi-year probe by U.S. prosecutors, who accused Europe's biggest bank of failing to enforce rules designed to prevent the laundering of criminal cash.

The U.S. Justice Department on Tuesday charged the bank with failing to maintain an effective program against money laundering and conduct due diligence on certain accounts.






In documents filed in federal court in Brooklyn, it also charged the bank with violating sanctions laws by doing business with Iran, Libya, Sudan, Burma and Cuba.

HSBC Holdings Plc admitted to a breakdown of controls and apologised for its conduct.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes," said Chief Executive Stuart Gulliver.

"Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

The bank agreed to forfeit $1.256 billion and retain a compliance monitor to resolve the charges through a deferred-prosecution agreement.

The settlement offers new information about failures at HSBC to police transactions linked to Mexico, details of which were reported this summer in a sweeping U.S. Senate probe.

The Senate panel alleged that HSBC failed to maintain controls designed to prevent money laundering by drug cartels, terrorists and tax cheats, when acting as a financier to clients routing funds from places including Mexico, Iran and Syria.

The bank was unable to properly monitor $15 billion in bulk cash transactions between mid-2006 and mid-2009, and had inadequate staffing and high turnover in its compliance units, the Senate panel's July report said.

HSBC on Tuesday said it expected to also reach a settlement with British watchdog the Financial Services Authority. The FSA declined to comment.

U.S. and European banks have now agreed to settlements with U.S. regulators totalling some $5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.

No bank or bank executives, however, have been indicted, as prosecutors have instead used deferred prosecutions - under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing behaviour.

HSBC's settlement also includes agreements or consent orders with the Manhattan district attorney, the Federal Reserve and three U.S. Treasury Department units: the Office of Foreign Assets Control, the Comptroller of the Currency and the Financial Crimes Enforcement Network.

HSBC said it would pay $1.921 billion, continue to cooperate fully with regulatory and law enforcement authorities, and take further action to strengthen its compliance policies and procedures. U.S. prosecutors have agreed to defer or forego prosecution.

The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to better monitor suspicious transactions. Directives by regulators to improve oversight came in 2003 and again in 2010.

Last month, HSBC told investors it had set aside $1.5 billion to cover fines or penalties stemming from the inquiry and warned that costs could be significantly higher.

Analyst Jim Antos of Mizuho Securities said the settlement costs were "trivial" in terms of the company's book value.

"But in terms of real cash terms, that's a huge fine to pay," said Antos, who rates HSBC a "buy".

Read More..

CPS head, lawmaker vow to work on truancy after Tribune series









A top state lawmaker and the head of the Chicago Public schools on Monday vowed to support a high-level task force aimed at combating the crisis in K-8 grade absenteeism and truancy exposed by a recent Tribune series.

Speaking at a drop-out prevention forum, House Majority Leader Barbara Flynn Currie and district CEO Barbara Byrd-Bennett pledged to tackle a daunting problem that they acknowledged has not been addressed in the past, essentially foreclosing the futures of tens of thousands of Chicago students.

“While the district has not fully owned this problem in the past, we will own it now,” Byrd-Bennett told the gathering of educators, politicians and community leaders at the Union League Club of Chicago. “We must work to shut down the drop-out pipeline.”

Byrd-Bennett said she would expand a small “Check & Connect” pilot program that pairs trained mentors with roughly 450 truant elementary students and has shown signs of promise in its second year.

But these “incremental and tiny steps ... are not enough for the magnitude of our problem,” Byrd-Bennett added. “We need to find new ways to work together and engage other government agencies.”

The Tribune series, published last month, found that nearly 32,000 K-8 students -- or roughly one in 8 -- missed four weeks or more of class during the 2010-11 school year as the cash-strapped district did little to stem the devastating problem.

The elementary grade absences were especially severe for African-American children and those with learning and emotional disabilities. For children born into poverty, the flood of missed days threatens to swallow any hope for a better life, while the empty seats undermine efforts to boost achievement and cost the district millions in attendance-based funding, the Tribune found.

“I was shocked when I read the series in the Chicago Tribune ... showing the extent of the truancy problem,” said Currie, D-Chicago.

In response to the Tribune series, state Rep. Linda Chapa LaVia, D-Aurora, has introduced a House resolution to create a task force on K-8 grade school absenteeism that will include representatives from the governor's office, the Chicago's mayor office, city police and other agencies and community groups.

The resolution is currently awaiting action in the house rules committee and likely will be voted on in January. Currie said Monday: “That resolution I confidently predict will pass.”

dyjackson@tribune.com



Read More..

Google's GMail service suffers disruption


SAN FRANCISCO (Reuters) - Several Google Inc Web products, including the popular GMail service, appeared to go dark for users on several continents on Monday.


Google confirmed that "service disruptions" had affected GMail and Google Drive, its online storage service. The two products are part of Google's Apps suite, a Microsoft Office rival that caters to both consumers and businesses.


By 10:10 a.m. Pacific Time (18:10 GMT), Google's Apps Dashboard monitoring service reported that GMail and Drive service had resumed. The company did not specify how many users were affected, or where, but the outage prompted widespread complaints on social media on both coasts in the U.S. and other major markets, from the United Kingdom to Brazil.


Some users additionally reported that the outage had affected Google Docs, the company's word-processing and spreadsheet programs, while Chrome, Google's Internet browser, also crashed unexpectedly.


"We are currently experiencing an issue with some Google services," Google spokeswoman Andrea Freund said in a statement. "For everyone who is affected, we apologize for any inconvenience you may be experiencing."


Firmly entrenched in the consumer market, GMail is one of Google's most popular and important product offerings. The search giant, which has been pushing a corporate version of the email service and its Apps suite to businesses to compete with Microsoft, said this month that the package will no longer be free to business customers.


(Reporting By Gerry Shih; Editing by Andrew Hay and Nick Zieminski)



Read More..

Mild sprain has Redskins' RG3 uncertain for Sunday


ASHBURN, Va. (AP) — All the medical terms associated with Robert Griffin III's knee injury can be boiled down to one simple message: It's not too bad.


Beyond that, there are still some very important unknowns.


The NFL's top-rated quarterback might or might not play Sunday when the Washington Redskins visit the Cleveland Browns. Coach Mike Shanahan, knowing full well that it makes the other team work extra to prepare for two quarterbacks, will no doubt wait as long as possible to publicly commit one way or the other to Griffin or fellow rookie Kirk Cousins.


"Both of them will have a game plan," Shanahan said Monday.


The interior of Griffin's right knee was the subject of intense scrutiny during Shanahan's weekly news conference, when it was shown that an injury to a franchise player like RG3 can flummox even a seasoned coach. Shanahan initially said Griffin had a "strain of the ACL" before later correcting the diagnosis to a sprained LCL, with the coach stepping away from the podium to demonstrate the location of the ligament involved.


The upshot: Griffin has a mild, or Grade 1, sprain of the lateral collateral ligament located on the outside of the knee, caused when he was hit by defensive tackle Haloti Ngata at the end of a 13-yard scramble late in regulation of the 31-28 overtime win over the Baltimore Ravens.


"When I looked at it on film," Shanahan said, "I thought it would be worse than it was."


The LCL is one of four ligaments in the knee. A Grade 1 sprain typically means the ligament is stretched or has some minor tears and usually doesn't require surgery. Griffin will get multiple treatments daily and will probably have to wear a brace for several weeks.


The next major benchmark is whether Griffin will able to take part when practice resumes on Wednesday.


"You're hoping with rehab it gets better very quickly," Shanahan said. "But we don't know for sure. ... He's definitely not ruled out for the Cleveland game."


Griffin's father, Robert Griffin Jr., said in a text message that his son was "feeling good" and that "we will know by Thursday" whether Griffin III will be able to suit up against the Browns.


The most severe knee injury usually associated with sports is a season-ending torn ACL, the anterior cruciate ligament. Griffin tore the ACL in his right knee while playing for Baylor in 2009, but Shanahan said Griffin's reconstructed ACL "looks great" and that there's "no problem there."


"He's doing good. He's in high spirits," left tackle Trent Williams said after speaking with Griffin on Monday. "It was a pretty nasty, awkward hit, and for him not to be seriously injured is a blessing."


No. 2 overall pick Griffin has become a phenomenon in his debut NFL season, leading the Redskins — a team that went 5-11 last year — to four straight victories to put the record at 7-6, one game behind the first-place New York Giants in the NFC East. His performance Sunday put him atop the league with a 104.2 passer rating, better than Peyton Manning, Aaron Rodgers, Tom Brady and everyone else.


Fourth-rounder Cousins might not be much of a drop-off, especially after his super-sub performance against the Ravens. When Griffin left for one play, Cousins converted a third-and-6 with a pass to Pierre Garcon that drew a pass interference penalty on Chris Johnson.


When Griffin left for good later in the drive, Cousins completed two passes in two plays, and his nice pump fake allowed Garcon to get open for an 11-yard touchdown with 29 seconds left in regulation.


Cousins then did his best RG3 impersonation, running the quarterback draw on the 2-point conversion to tie the game.


"You're running the scout team the majority of the time, and you're expected to go in there and perform," Shanahan said. "So there's a lot of pressure on people. Some people can handle it; other people can't. But when you prepare yourself like he has, it didn't surprise me that he was flawless in what he did."


Shanahan defended the decision to have Griffin return to the game for four plays after the injury, saying he left the decision in the hands of Dr. James Andrews, the renowned sports physician who is on the sidelines for most Redskins games.


"He's the one that gives me that information," Shanahan said. "It's way over my head."


___


Follow Joseph White on Twitter: http://twitter.com/JGWhiteAP


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


Read More..

Surprise: New insurance fee in health overhaul law


WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.


The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.


Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.


"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.


Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.


The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.


Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.


The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.


Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.


The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.


But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.


"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.


Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.


America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.


But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.


"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.


The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.


The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.


It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.


Read More..

'Skyfall' launches back to top spot with $10.8M


LOS ANGELES (AP) — The James Bond blockbuster "Skyfall" has risen back to the No. 1 spot at the weekend box office, taking in $10.8 million.


That brought its domestic total to $261.4 million and its worldwide haul to a franchise record of $918 million.


The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:


1. "Skyfall," Sony, $10,780,201, 3,401 locations, $3,170 average, $261,400,281, five weeks.


2. "Rise of the Guardians," Paramount, $10,400,618, 3,639 locations, $2,858 average, $61,774,192, three weeks.


3. "The Twilight Saga: Breaking Dawn — Part 2," Summit, $9,156,265, 3,646 locations, $2,511 average, $268,691,029, four weeks.


4. "Lincoln," $8,916,813, 2,014 locations, $4,427 average, $97,137,447, five weeks.


5. "Life of Pi," Fox, $8,330,764, 2,946 locations, $2,828 average, $60,948,293, three weeks.


6. "Playing For Keeps," FilmDistrict, $5,750,288, 2,837 locations, $2,027 average, $5,750,288, one week.


7. "Wreck-It Ralph," Disney, $4,859,368, 2,746 locations, $1,770 average, $164,402,934, six weeks.


8. "Red Dawn," FilmDistrict, $4,236,105, 2,754 locations, $1,538 average, $37,240,920, three weeks.


9. "Flight," Paramount, $3,130,305, 2,431 locations, $1,288 average, $86,202,541, six weeks.


10. "Killing Them Softly," Weinstein Co., $2,806,901, 2,424 locations, $1,158 average, $11,830,638, two weeks.


11. "Silver Linings Playbook," Weinstein Co., $2,171,665, 371 locations, $5,854 average, $13,964,405, four weeks.


12. "Anna Karenina," Focus, $1,544,859, 422 locations, $3,661 average, $6,603,042, four weeks.


13. "The Collection," LD Entertainment, $1,487,655, 1,403 locations, $1,060 average, $5,455,328, two weeks.


14. "Argo," Warner Bros., $1,482,346, 944 locations, $1,570 average, $103,160,015, nine weeks.


15. "End of Watch," Open Road Films, $751,623, 1,259 locations, $597 average, $39,989,766, 12 weeks.


16. "Hitchcock," Fox Searchlight, $712,544, 181 locations, $3,937 average, $1,661,670, three weeks.


17. "Talaash," Reliance Big Pictures, $449,195, 161 locations, $2,790 average, $2,397,909, two weeks.


18. "Taken 2," Fox, $387,227, 430 locations, $901 average, $137,700,304, 10 weeks.


19. "Pitch Perfect," Universal, $305,765, 387 locations, $790 average, $63,517,408, 11 weeks.


20. "The Sessions," Fox, $218,973, 197 locations, $1,112 average, $4,948,342, eight weeks.


___


Online:


http://www.hollywood.com


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


Read More..

McDonald's sales rebound in November









McDonald’s took Wall Street by surprise Monday morning, with a November same store sales report that beat expectations and showed particular strength in the U.S. business.

The news follows a weak performance in October that had some investors speculating about the future of the world’s largest restaurant company.

The Oak Brook-based burger giant reported U.S. same store sales up 2.5 percent on the strength of its breakfast business, value offerings, beverages and limited-time offers like the cheddar bacon onion sandwich. In Europe, same store sales grew 1.4 percent, and 0.6 percent in the chain’s Asia/Pacific, Middle East and Africa division.

Overall, same store sales increased 2.4 percent, beating expectations of a roughly flat performance. Company stock rose nearly 1 percent in early morning trading, to $89.35.

"We are strengthening our focus on the global priorities that are most impactful to our customers -- optimizing our menu, modernizing the customer experience and broadening accessibility to our brand to move our business forward," McDonald's CEO Don Thompson said in a statement.

While the sales report is likely to be a boon for the burger giant, investors don’t expect company performance to return to normal levels until early 2013. Winter is typically the slow period for fast food chains, with summer typically being the busiest season.

Baird analyst David Tarantino raised his fourth quarter earnings estimate by a penny Monday morning following the sales announcement. He wrote that while company performance "could remain soft" through the first quarter of 2013, "the November sales report supports our thesis that McDonald's can achieve better performance in 2013 as a whole, with results aided by planned initiatives (including increased emphasis on value plus premium offerings across markets), fewer cost pressures, and less negative currency translation."

The chain has taken a tough stance on slipping U.S. sales. The company’s October sales, which slipped 2.2 percent, marked the first decline in more than nine years. Days later, McDonald’s said U.S. president Jan Fields had resigned and would be replaced by Jeff Stratton.

eyork@tribune.com | Twitter: @emilyyork

MCD Chart

MCD data by YCharts

MCD Chart

MCD data by YCharts



Read More..

Plane believed to carry singer Jenni River found in Mexico









The wreckage of a small plane believed to be carrying Mexican-American singing superstar Jenni Rivera was found in northern Mexico on Sunday and there are no apparent survivors, authorities said.

Transportation and Communications Minister Gerardo Ruiz Esparza said that "everything points toward" it being the U.S.-registered Learjet 25 carrying Rivera and six other people from Monterrey en route to Toluca, Mexico. The plane had gone missing after takeoff early Sunday.

"There is nothing recognizable, neither material nor human" in the wreckage," Ruiz Esparza told the Televisa network.

Authorities had not confirmed that Rivera was among the dead.

Jorge Domene, spokesman for Nuevo Leon's government, said the plane left Monterrey about 3:30 a.m. after Rivera gave a concert there and aviation authorities lost contact with the craft about 10 minutes later. It had been scheduled to arrive in Toluca, outside Mexico City, about an hour later.

Also aboard the plane were her publicist, lawyer, makeup artist and the flight crew.

The Long Beach, Calif., native's career has been soaring. The 43-year-old singer is best known for her interpretations of regional Mexican music, norteno and banda. She also is one of NBCUniversal's brightest bilingual television stars.

Her reality show on the Telemundo cable channel, mun2, "I Love Jenni," has been one of the channel's highest rated shows. The program is in its second year.

ABC television network was reportedly considering casting Rivera as a star of a prime-time sitcom in development about a strong-willed single Latina mother.

The so-called "Diva de la Banda" was beloved by fans on both sides of the border for such songs as "De Contrabando" and "La Gran Senora."

She recently won two Billboard Mexican Music Awards: Female Artist of the Year and Banda Album of the Year for "Joyas prestadas: Banda."

The singer, businesswoman and actress appeared in the indie film Filly Brown, as the incarcerated mother of Filly Brown, and has her own reality shows including "I Love Jenni" and "Jenni Rivera Presents: Chiquis and Raq-C" and her daughter's "Chiquis 'n Control."

Rivera had given a concert before thousands of fans in Monterrey on Saturday night. After the concert she gave a press conference during which she spoke of her emotional state following her recent divorce from former Major League Baseball pitcher Esteban Loaiza, who played for teams including the Chicago White Sox, New York Yankees and Los Angeles Dodgers.

"I can't get caught up in the negative because that destroys you. Perhaps trying to move away from my problems and focus on the positive is the best I can do. I am a woman like any other and ugly things happen to me like any other woman," she said Saturday night. "The number of times I have fallen down is the number of times I have gotten up."

The mother of five children and grandmother of two had announced in October that she was divorcing Loaiza after two years of marriage. It was her third marriage.

Rivera is the sister of Mexican singer Lupillo Rivera. Patricia Chavez of Lupillo Rivera's office in the United States told The Associated Press that "for now we don't have any information that would be useful."

The Los Angeles Times contributed to this report.



Read More..

Software guru McAfee wants to return to United States


GUATEMALA CITY (Reuters) - Software guru John McAfee, fighting deportation from Guatemala to Belize to face questions about the slaying of a neighbor, said on Saturday he wants to return to the United States.


"My goal is to get back to America as soon as possible," McAfee, 67, said in a phone call to Reuters from the immigration facility where he is being held for illegally crossing the border to Guatemala with his 20-year-old girlfriend.


"I wish I could just pack my bags and go to Miami," McAfee said. "I don't think I fully understood the political situation. I'm an embarrassment to the Guatemalan government and I'm jeopardizing their relationship with Belize."


The two neighboring countries in Central America are locked in a decades-long territorial dispute and voters in 2013 will decide in a referendum how to proceed.


Responding to McAfee's remarks, a U.S. State Department spokeswoman said U.S. citizens in foreign countries are subject to local laws. Officials can only ensure they are "treated properly within this framework," she said.


On Wednesday, Guatemalan authorities arrested McAfee in a hotel in Guatemala City where he was holed up with his Belizean girlfriend.


The former Silicon Valley millionaire is wanted for questioning by Belizean authorities, who say he is a "person of interest" in the killing of fellow American Gregory Faull, McAfee's neighbor on the Caribbean island of Ambergris Caye.


The two had quarreled at times, including over McAfee's unruly dogs. Authorities in Belize say he is not a prime suspect in the investigation.


Guatemala rejected McAfee's request for asylum on Thursday. His lawyers then filed several appeals to block his deportation. They say it could take months to resolve the matter.


The software developer has been evading Belize authorities for nearly four weeks and has chronicled his life on the run in his blog, www.whoismcafee.com.


McAfee claims authorities will kill him if he turns himself in for questioning. He has denied any role in Faull's killing and said he is being persecuted by Belize's ruling party for refusing to pay some $2 million in bribes.


Belize's prime minister has rejected this, calling McAfee paranoid and "bonkers.


BEATING HEAD AGAINST WALL


After making millions with the anti-virus software bearing his name, McAfee later lost much of his fortune. For the past four years he has lived in semi-reclusion in Belize.


He started McAfee Associates in the late 1980s but left soon after taking it public. McAfee now has no relationship with the company, which was later sold to Intel Corp.


Hours after his arrest, McAfee was rushed to a hospital for what his lawyer said were two mild heart attacks. Later he said the problem was stress. McAfee said he fainted after days of heavy smoking, poor eating and knocking his head against a wall.


He told Reuters he no longer has access to the Internet and has turned over the management of his blog to friends in Seattle, Washington. On Saturday, they began posting a series of files claiming to detail Belize's corruption.


Residents and neighbors in Belize have said the eccentric tech entrepreneur, who is covered in tribal tattoos and kept an entourage of bodyguards and young women on the island, had appeared unstable in recent months.


Police in April raided his property in Belize on suspicion he was running a lab to make illegal narcotics. There already was a case against him for possession of illegal firearms.


McAfee says the charges are an attempt to frame him.


"People are saying I'm paranoid and crazy but it's difficult for people to comprehend what has been happening to me," he said. "It's so unusual, so out of the mainstream."


(Editing by Dave Graham and Bill Trott)



Read More..

New tragedy rocks NFL's regularly scheduled world


The games go on.


For the second straight weekend, tragedy rocked the regularly scheduled world of the NFL. It left families, friends, teammates and coaching staffs grieving over yet another senseless loss of life. It also left the league facing questions not only about efforts to safeguard players on the field but whether it's doing enough to help them stay out of harm's way once they step outside the white lines.


In the early-morning hours Saturday in Irving, Texas, 24-year-old Dallas Cowboys nose tackle Josh Brent got behind the wheel of his Mercedes alongside teammate Jerry Brown and sped off, the prelude to a one-car accident that would leave Brown dead at 25 and Brent sitting in jail facing a felony charge of intoxicated manslaughter.


All this happened little more than three years after Brent was sentenced to probation and 60 days in jail in a plea agreement following his drunken driving arrest while playing football at the University of Illinois, where he and Brown were teammates as well.


That it happened just a week after Kansas City linebacker Jovan Belcher shot his girlfriend to death, then drove to the Chiefs' training facility and took his own life with the same gun, raised questions about the league's responsibility to the young men it empowers and enriches — in some cases, almost overnight.


"I don't know that anybody has the answer, to be honest. They're human beings, kids in most of the cases like this, and they're going to make mistakes," said Dan Reeves, who played seven years for the Cowboys before launching an NFL coaching career that included four stops over four decades.


"As a coach, you've got more than 50 players, if you count practice squad guys, that you're trying to keep an eye on. And both the league and the team invest an awful lot of time and money trying to educate them about the opportunities and pitfalls that are set out in front of them. ...


"But no matter what you do, some are going to believe the bad stuff will never happen to them. And teams spend so much time together, they become like families. It's easy to get lulled into thinking you know which ones need a pat on the back and which ones a kick in the behind. Yet this shows we don't always learn the real strengths and weaknesses of some until it's too late. Everybody deals with that knowledge in their own way.


"But if you're going to play," Reeves said finally. "I don't know any other way to honor that person than to play as hard as you can."


The emotional scene that roiled Kansas City in the wake of Belcher's murder-suicide a week earlier shifted to Cincinnati, where the Cowboys arrived Saturday night to complete preparations before Sunday's kickoff against the Bengals.


The team cut short its regular two-hour meeting and made sure counselors were on hand to speak to players afterward. But when owner Jerry Jones spoke with a Fox interviewer outside the locker room shortly before the game, his eyes were rimmed red and he spoke haltingly about Brown.


"Our team loved him. They certainly are conscious of him and want his family to know and have as much of them as they can give. At the same time," he added, "they know that one of the best things they can do for him and his memory is to come to the game today, is go out and play well."


How the NFL responds to this latest tragedy remains to be seen. Earlier this summer, cognizant of both the rising number of domestic violence and DUI incidents involving players, Commissioner Roger Goodell pledged to address both problems.


"We are going to do some things to combat this problem because some of the numbers on DUIs and domestic violence are going up and that disturbs me," he told CBS Sports. "When there's a pattern of mistakes, something has got to change."


In several important ways, player conduct has already improved significantly since Goodell took over from Paul Tagliabue.


In 2006, Goodell's first season, 68 players were arrested for crimes more severe than a traffic violation. Since then, arrests for crimes including domestic violence, drunken driving and gun possession are down 40 percent.


Yet, as Goodell noted, the number of incidents in the last year have climbed at an alarming rate — according to one study, 21 of the league's 32 teams had at least one player charged with domestic violence or sexual assault — and the tragedies involving players on successive weekends has already prompted accusations that the league isn't doing nearly enough.


On Saturday in Kansas City, a dozen members of the Chiefs' organization attended a memorial service for Kasandra Perkins. Among them was general manager Scott Pioli, whom Belcher spoke with in the parking lot of the Chiefs facility to thank before turning the gun on himself. A day later, just as the Chiefs did against the Panthers last Sunday, the Cowboys rallied to win their game against the Bengals.


The team has already canceled its annual Christmas party, scheduled for Monday at Cowboys Stadium, and instead began planning a memorial service for Brown.


"From here on, they're in uncharted waters," Reeves said. "No one can point the best way forward. I was lucky in that sense: We never had to deal with the nightmare of losing a friend and teammate. One thing I'm certain of, though — it's going to haunt some of them for a long time to come."


Read More..