Prosecutors: Peregrine Financial fraud loss exceeds $215M









Peregrine Financial Group's former chief executive stole more than $215 million from customers of his now-defunct futures brokerage and should be sentenced to the maximum 50 years in jail, U.S. prosecutors said Tuesday.

Russell Wasendorf Sr., 64, who founded the firm, has pleaded guilty to embezzlement but wants a lighter sentence, saying that the loss was less than $200 million and that he used "very basic, simple means" to carry out his fraud, according to documents filed by U.S. prosecutors.

Wasendorf, whose attempted suicide sent his firm into bankruptcy last July, is in jail in Iowa and will be sentenced Jan. 31.

U.S. prosecutors say the large loss, the sophisticated nature of the crime and the sheer number of victims -- more than 10,000 -- justify his spending the rest of his life behind bars.

"While some of defendant's individual acts might be characterized as simple in isolation, they were part of an exceedingly complex scheme whereby defendant's entire business was used as a mechanism to gather and purloin investor funds," prosecutors said in their sentencing memorandum, promising to fight any attempt by Wasendorf to receive a sentence of less than 50 years.

Prosecutors put the exact loss at $215,530,547, based on Peregrine's bank records, and will call Brenda Cuypers, the firm's chief financial officer, as a witness at the sentencing hearing next week.

They had previously pegged the embezzlement only at "more than $100 million," to which Wasendorf pleaded guilty.

Wasendorf's public defender has a policy of declining to comment on cases, and did not reply to an email from Reuters seeking comment.

The collapse last July of Peregrine Financial, known as PFGBest, dealt a blow to confidence in the U.S futures industry, already reeling from $1.6 billion hole in customer pockets left when giant brokerage MF Global failed nine months earlier.

Futures traders had never before suffered such large losses as a result of a brokerage failure.

"To see (Wasendorf) go to jail could give some people some hope," said James Koutoulas, co-head of the Commodity Customer Coalition, which fought to get customer money back in both bankruptcies. "In MF Global, justice hasn't been done."

No one has been charged with wrongdoing in MF Global's collapse.

Regulators have scrambled to patch perceived gaps in customer protections at brokerages and exchanges that handle contracts valued at some $2.5 trillion a day.

That figure is set to rise as new rules push over-the-counter swaps onto regulated trading venues.

The sentencing memorandum offers new details in the government's account of the fraud, which Wasendorf said in a July statement began in the early 1990s after he was hounded by an overzealous regulator.

The fraud began even earlier, prosecutors said in Tuesday's filing, when he stole at least $250,000 from customers' accounts to pay back the original financier of his brokerage, a person referred to in the document only by the initials "J.C."

"Using a copy machine, defendant fabricated a bank statement to conceal the theft of funds," the document said. For the next nearly 20 years, prosecutors said, he faked bank balances, fabricated deposits, and used a rented post office box in Cedar Falls, Iowa, to intercept letters from his auditors meant to check up on his balances at U.S. Bank.

He even went so far as to fly from Chicago, where his firm did most of its business, to Iowa to prevent the near-discovery of his fraud, ultimately convincing Peregrine and U.S. Bank employees that nothing was wrong, the document said.

All the while he worked to make Peregrine Financial seem much bigger and more successful than it was, they said.

Wasendorf believed that "if he could make himself appear rich, the auditors and regulators wouldn't be concerned with the state of his personal finances and not discover it was all a fraud," prosecutors quoted Wasendorf as saying in a sealed presentencing report.

But Peregrine was never actually profitable, even though by its demise investors had entrusted more than $376 million to him and his firm, they said.

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Chicago-area home sales up 19 percent in December









More than 7,000 consumers in the Chicago-area bought themselves a home last month, the best finish for the year since December 2006, just before the local housing market's bubble burst.

December sales of existing homes in the nine-county area rose 19.2 percent from a year ago, to 7,372 single-family homes and condominiums sold, the Illinois Association of Realtors reported Tuesday. The median price of $151,500 recorded for the month rose 4.5 percent, from $145,000 in December 2011.

In terms of volume, it was the best monthly performance for the market since December 2006, when 7,530 homes were sold. Twelve months later, in December 2007, the number of homes sold locally had plunged to 5,033.

While it showed improvement, last month's $151,500 median price was far below the December 2007 market high of $247,800.

Pricing recovery was even more evident within the city of Chicago, which recorded a 14.6 percent year-over-year increase in sales, to 1,806 properties sold at a median price of $185,000, up 19.4 percent from December 2011's $155,000.

The pricing improvement is largely a result of the continued shrinking inventory of quality homes on the market, which for months has meant homes are going under contract faster than they have in the past. Sellers of choice properties, whether they are in the traditional market or foreclosures, are fielding multiple offers from potential buyers.

"The 18.9 percent decrease in market time from the same time in 2011 shows a continued clearing of inventory, of both single-family homes and condominiums, which should prompt action among buyers and sellers and continue to promote home price stabilization," said Zeke Morris, president of the Chicago Association of Realtors.

Sales of Chicago condos swelled to 1,037 units sold, up 17.7 percent from a year ago, and the median sales price of $235,000 for a unit was up 28.8 percent from last year.

The median price is the point at which half the homes are sold for more and half for less.

"I believe we're going to have the most promising spring market we've had in years," said Zeke Morris, president of the Chicago Association of Realtors. "We can give (sellers) a slightly more confident expectation."

The pricing improvement is largely a result of the slim pickings of properties listed for sale, which for months has meant homes are going under contract faster than they have in the past.

Compared to a year ago, inventory has plunged. For instance, in Chicago, there were 14,183 homes for sale in December 2011. Last month, there were 8,036 listed properties, or 43.3 percent less. As a result, the average number of days it took to sell a Chicago home fell almost 19 percent year-over-year, to 77 days last month.

Sellers of choice properties, whether they are in the traditional market or foreclosures, are fielding multiple offers from potential buyers, both owner-occupants and investors.

"We have a lot of pending deals out there," said Mabel Guzman, an @properties real estate agent. "Sellers are holding onto their price, knowing they're the only thing in the market. People are going to get frustrated if there isn't enough product to buy."

For the year, 90,365 homes were sold in the Chicago area, a 26.7 percent increase from 2011, while the median price slipped 1.5 percent, to $160,000. In the city, the annualized median price rose 5.7 percent, to $185,000, for the 22,333 homes sold, a gain of 22.4 percent in sales volume.

According to the Federal Home Loan Mortgage Corp., the average commitment rate for a 30-year, fixed-rate mortgage in the Chicago area was 3.32 percent in December, compared with 3.33 percent in November and 3.94 percent in December 2011.

mepodmolik@tribune.com | Twitter @mepodmolik

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Canada wants RIM organic growth, may have to review handset sale






OTTAWA (Reuters) – The Canadian government wants BlackBerry maker Research in Motion to continue to be a global leader and grow organically, and Ottawa may have to review a future sale of its handset business, Industry Minister Christian Paradis said on Tuesday.


“We hope to see RIM remain a global leader and player, and make sure it grows organically,” Paradis told Reuters by phone from Germany, where he is meeting with industrial leaders.






He also said the government did not intend at present to open up Canada’s telecommunications sector further to foreign investment.


(Reporting by Randall Palmer Editing by W Simon)


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Sundance 2013: Relativity Acquires Joseph Gordon-Levitt-Directed ‘Don Jon’s Addiction’






LOS ANGELES/NEW YORK (TheWrap.com) – Relativity Media has acquired Joseph Gordon-Levitt’s directorial debut “Don Jon’s Addiction” for $ 4 million, an individual with knowledge of the deal told TheWrap.


The film premiered at Sundance on Friday to great fanfare, and several distributors have been bidding for it.






Relativity won out with a substantial financial commitment and plans for a wide theatrical release this year. It will support the movie with prints and advertising, with the commitment at $ 25 million, an individual told TheWrap.


That would make it the biggest deal from the festival so far.


The film follows Gordon-Levitt – who also wrote and stars in the film – as a lady’s man with a porn addiction. Dissatisfied with his life, he sets out on a Don Juan-esque quest to find love and a more satisfying sex life.


Scarlett Johansson, Julianne Moore, Rob Brown, Tony Danza and Glenne Headly also star in the film.


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Well Pets: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor housecat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richters’ house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany in which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can be shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

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Area home sales up 19% in December









More than 7,000 consumers in the Chicago-area bought themselves a home last month, the best finish for the year since December 2006, just before the local housing market's bubble burst.

December sales of existing homes in the nine-county area rose 19.2 percent from a year ago, to 7,372 single-family homes and condominiums sold, the Illinois Association of Realtors reported Tuesday. The median price of $151,500 recorded for the month rose 4.5 percent, from $145,000 in December 2011.

In terms of volume, it was the best monthly performance for the market since December 2006, when 7,530 homes were sold. Twelve months later, in December 2007, the number of homes sold locally had plunged to 5,033.

While it showed improvement, last month's $151,500 median price was far below the December 2007 market high of $247,800.

Pricing recovery was even more evident within the city of Chicago, which recorded a 14.6 percent year-over-year increase in sales, to 1,806 properties sold at a median price of $185,000, up 19.4 percent from December 2011's $155,000.

The pricing improvement is largely a result of the continued shrinking inventory of quality homes on the market, which for months has meant homes are going under contract faster than they have in the past. Sellers of choice properties, whether they are in the traditional market or foreclosures, are fielding multiple offers from potential buyers.

"The 18.9 percent decrease in market time from the same time in 2011 shows a continued clearing of inventory, of both single-family homes and condominiums, which should prompt action among buyers and sellers and continue to promote home price stabilization," said Zeke Morris, president of the Chicago Association of Realtors.

Sales of Chicago condos swelled to 1,037 units sold, up 17.7 percent from a year ago, and the median sales price of $235,000 for a unit was up 28.8 percent from last year.

The median price is the point at which half the homes are sold for more and half for less.

"I believe we're going to have the most promising spring market we've had in years," said Zeke Morris, president of the Chicago Association of Realtors. "We can give (sellers) a slightly more confident expectation."

The pricing improvement is largely a result of the slim pickings of properties listed for sale, which for months has meant homes are going under contract faster than they have in the past.

Compared to a year ago, inventory has plunged. For instance, in Chicago, there were 14,183 homes for sale in December 2011. Last month, there were 8,036 listed properties, or 43.3 percent less. As a result, the average number of days it took to sell a Chicago home fell almost 19 percent year-over-year, to 77 days last month.

Sellers of choice properties, whether they are in the traditional market or foreclosures, are fielding multiple offers from potential buyers, both owner-occupants and investors.

"We have a lot of pending deals out there," said Mabel Guzman, an @properties real estate agent. "Sellers are holding onto their price, knowing they're the only thing in the market. People are going to get frustrated if there isn't enough product to buy."

For the year, 90,365 homes were sold in the Chicago area, a 26.7 percent increase from 2011, while the median price slipped 1.5 percent, to $160,000. In the city, the annualized median price rose 5.7 percent, to $185,000, for the 22,333 homes sold, a gain of 22.4 percent in sales volume.

According to the Federal Home Loan Mortgage Corp., the average commitment rate for a 30-year, fixed-rate mortgage in the Chicago area was 3.32 percent in December, compared with 3.33 percent in November and 3.94 percent in December 2011.

mepodmolik@tribune.com | Twitter @mepodmolik

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Wrigley proposal: New seats, more restaurants, more bathrooms

Cubs Chairman Tom Ricketts discusses Sammy Sosa and the renovation of Wrigley Field.









Cubs Chairman Tom Ricketts said Saturday the team will fund an ambitious $300 million renovation plan at Wrigley Field if the city eases some of its restrictions around Wrigley Field.

“The fact is that when you look at all of the limitations that we have, whether that’s signage in the outfield, which we are not allowed to do, or what kind of stuff we do in the park or around the park, I think we’d just like a little more flexibility to have some options on that stuff,” Ricketts said after a question-and-answer session with fans at the Cubs Convention.






“We have an opportunity cost there that’s tremendous. Just give us some relief on some of these restrictions, and we’ll take care of (renovating) Wrigley Field.”

Among the proposed improvements the Cubs revealed are larger concourses, additional restaurants, more bathroom and concession areas, expanded suites and amenities for the players, including a larger home clubhouse, batting cages and additional training facilities. A new roof would replace the wooden roof, new seats would be installed and the façade would return to its 1930s-era luster.

The project would be done during offseasons over a five-year period in what team business President Crane Kenney termed “the greatest (stadium) restoration project ever.”

In order to pay for it, the Cubs are asking for the ability to enhance their revenue streams in the same fashion as other teams, without having to ask permission from the city.

“We’d like to be treated like a private institution,” Ricketts told fans. ““We have a lot of restrictions. We compete against our rooftop partners across the street. They compete on price and we compete against them on a regular basis.

“We’re told what we can do to the park. We’re told what we can do in the park. We’re told what we can do around the park. We think, from our position, if you just let us run our business, we can get started on some substantial renovations, make the fan experience better, make the player experience better, and really preserve the park for the next 50 years. We’re not a museum. We’re a business.”

Some of the restrictions Ricketts alluded to include:

Signage: The bleacher vista may be significantly altered if the Cubs get their way. In 2010, the Cubs agreed to a four-year moratorium on additional advertising signs that would rise above the Wrigley Field bleachers in order to gain city approval of a Toyota outfield sign. That moratorium expires after this season, and the Cubs would like to increase their outfield signage, along with other areas in the ballpark. They’re the only team with signage restrictions.

Co-owner Laura Ricketts said the restriction on signage puts the team at a disadvantage, “but also forces us to be extra creative in the advertising that we do have, and that makes Wrigley Field, in my opinion, the most special place to watch a ballgame in all of baseball… With our renovations, that’s definitely something we want to preserve going forward.”

Night games: A city ordinance granted the Cubs permission to play 18 night games a year starting in 1988. In 2004, the city council approved an increase of four night games per year through 2006, giving them their current allotment of 30. The Cubs haven’t said how many more night games they need, but one source said “half,” or 41, would suffice, including an occasional Saturday night game. The Cubs also would like the return of 3:05 p.m. starts on Friday, believing the weekend restrictions are an anachronism in a commercialized area.

Concerts: An agreement in 2005 between the Cubs and the city gave the Cubs permission to hold two Jimmy Buffet concerts that summer, with the team donating $150,000 of the proceeds to neighborhood schools and reserving 3,000 concert tickets for purchase by people who lived within one mile of the ballpark. The Cubs agreed to hold 29 night games in 2006 instead of the permitted 30. In 2009, the city allowed the Cubs to hold three concerts, including two by Elton John and Billy Joel. The Cubs haven’t said how many concerts they’d like, but they’d like to increase it without having to ask for city permission.

Sheffield Avenue: The Cubs have for years been looking to turn Sheffield Avenue into a street-fest on selected weekends, after the successful “Wildcat Way” during the Northwestern-Illinois football game at Wrigley. But opposition by local businesses have been an obstacle. Ricketts pointed to Yawkey Way, the street outside Fenway Park with stands, food kiosks and other activities. “We think it’s a good idea,” he said. “We think it can really add to the fan experience. We’ve been to Yawkey Way and we think we can do something comparable. (Sheffield) is already closed. Why can’t we put something on it that’s nice for families or for fans coming to games?”

The Cubs shelved plans for the much-hyped triangle building, instead opting for an open area west of the park that can be used for things like movies, an ice rink and a farmer’s market. The plan to add parking was also removed, since polls told them Cubs fans didn’t want more congestion next to the ballpark.

Kenney said the Cubs wouldn’t need to remove the landmark status for the proposed changes.

“The marquee, the ivy, the scoreboard, we’d be the last ones who would want to touch those,” he said. “The landmark ordinance really isn’t our problem. It’s just the ability to add some of the marketing elements we need and to host games when we feel like it.”

While a Jumbotron is not in the works yet, the Cubs are open to the possibility, while maintaining the hand-operated scoreboard. Kenney said polls show Cubs fans will support a Jumbotron, a shift in attitude from what they used to say. He added the team is removing the LED board under the center-field scoreboard to improve the aesthetics, as fans suggested.

psullivan@tribune.com


Twitter @pwsullivan





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Google says Wall Street estimates need adjusting






SAN FRANCISCO (Reuters) – Google Inc issued a rare advisory to Wall Street on Friday that analyst estimates for its fourth quarter financial results are flawed.


The world’s No.1 search engine, which reports its quarterly results on Tuesday, said most analysts have not adjusted their estimates to reflect the pending $ 2.35 billion sale of the Motorola Home business.






The business must be presented separately from the results of Google’s continuing operations under U.S. accounting rules, Google Treasurer Brent Callinicos wrote in a post on Google’s investor relations Web page on Friday.


“As of this writing, a majority of Wall Street analysts who cover Google have not reflected the Home business as discontinued operations in their estimates,” Callinicos wrote.


The discrepancy means the fourth-quarter net revenue that Google reports on Tuesday could appear to be less than the $ 12.34 billion average that analysts polled by Thomson Reuters I/B/E/S are expecting.


Raymond James analyst Aaron Kessler says his fourth-quarter net revenue estimate includes nearly $ 900 million from the Motorola Home business.


“They’re saying that the headline number is going to be less than what most analysts have for Q4,” said Kessler.


The advisory is a rare move for Google, which does not provide financial forecasts and typically has limited interactions with analysts. The company has in the past provided accounting advisories to analysts about the Motorola Mobility business, which Google acquired for $ 12.5 billion in May.


Google bought Motorola Mobility primarily for its large portfolio of communications patents and its mobile phone business.


In December, Google agreed to sell the Motorola Home television set-top box business to Arris Group Inc for $ 2.35 billion in cash and stock.


Analysts expect Google to report adjusted earnings of $ 10.56 per share for the fourth quarter.


“It’s a little surprising that they’re doing this the Friday before the report,” said Kessler. “They should have put it out a week ago if they wanted analysts to change their numbers.”


(Reporting By Alexei Oreskovic. Editing by Andre Grenon)


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Dan Lin, Roy Lee Counter Sue Legendary over ‘Godzilla’






LOS ANGELES (TheWrap.com) – Producers Dan Lin, Roy Lee and Doug Davison have hit back at Legendary Pictures over “Godzilla,” filing a cross complaint Thursday in L.A. Superior Court seeking millions in damages and credit for their contributions to the upcoming movie.


Lin, Lee and Davison allege breach of contract and mistreatment, rehashing the history of how they came to work with Legendary. They began work in 2009 and helped Legendary secure the rights because they were assured they’d be treated well.






“Apparently, Legendary’s idea of treating the producers who brought them ‘Godzilla’ well included concocting a scheme to try to force them off the project, and depriving them of their screen credit and substantial fixed and backend compensation in order to keep more of the money and to aggrandize themselves,” the suit claims.


Legendary preemptively sued the producers last week to kick them off of the movie, anticipating a restraining order that could impede the looming production. Legendary unveiled its plans for the movie at Comic-Con last July, and has slated it for a 2014 release. It would begin production in Spring with Gareth Edward directing.


Legendary alleged that it had entered an agreement in March 2011 that gave the producers $ 25,000 in development money but no right to the intellectual property. In order to receive credit as a producer or backend money from the movie’s profits, their early work would need to be the basis for the movie.


Lin, Lee and Davison say they were responsible for bringing the rights to Legendary and never signed a written agreement because Legendary changed the terms of the deal. However, they say, Legendary had orally agreed to pay $ 1.3 million and three percent of first dollar cross receipts in addition to the development money.


Legendary has since hired a new writer, Frank Darabont, and sought other producers.


The producers are all based at Warner Bros., Legendary’s main partner – Lin at Lin Pictures and Lee and Davison for Vertigo Entertainment. Their suit against Legendary places most of the blame with president and chief creative officer Jon Jashni rather than CEO Thomas Tull.


However, they are still pointed in their claims, explaining that they “seek substantial punitive damages to make an example of Legendary so that it and no other studio will in the future treat their producers in this outrageous manner.”


Legendary had no comment on the suit.


(Pamela Chelin contributed to this report)


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Well: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor housecat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richter’s house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can by shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

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