NJ jury convicts NY man in iPad data breach case
















NEWARK, N.J. (AP) — A federal jury on Tuesday convicted a man of illegally gaining access to AT&T‘s servers and stealing more than 120,000 email addresses of iPad users including New York Mayor Michael Bloomberg and film mogul Harvey Weinstein.


Andrew Auernheimer, of New York, was convicted of identity theft and conspiracy to gain unauthorized access to computers. Each count carries a maximum prison sentence of five years.













Prosecutors said the former Fayetteville, Ark., resident was part of an online group that tricked AT&T’s website into divulging email addresses including those of Bloomberg, Weinstein, then-White House chief of staff Rahm Emanuel, who’s now Chicago’s mayor, and other celebrities.


The group then shared the addresses with the website Gawker, which published them in redacted form accompanying a news article about the breach, prosecutors said.


A second man arrested with Auernheimer early last year, Daniel Spitler, of San Francisco, pleaded guilty that June.


At the time of the arrests, U.S. Attorney Paul Fishman said there was no evidence the men used the swiped information for criminal purposes. But authorities cautioned that it could have wound up in the hands of spammers and scam artists.


According to court papers, the men used a computer script they called the iPad3G Account Slurper to fool AT&T’s servers into thinking they were communicating with an iPad. The theft of the email addresses occurred in June 2010.


Prosecutors said at the time of Auernheimer’s arrest that he had bragged about the operation in a blog posting and in an interview with CNET published online after the Gawker article. Court papers also quoted him declaring in a New York Times article: “I hack, I ruin, I make piles of money. I make people afraid for their lives.”


Auernheimer, after he was charged and released on bail, had declined to comment.


iPad maker Apple Inc., based in Cupertino, Calif., referred questions to AT&T, which acknowledged a security weak spot on a website that exposed the email addresses. AT&T said the vulnerability affected only iPad users who signed up for its 3G wireless Internet service and said it had fixed the problem.


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Singer Fiona Apple cancels tour dates to be with ailing dog
















LOS ANGELES (Reuters) – Grammy award-winning singer Fiona Apple said in a handwritten letter posted on her website on Tuesday that she has canceled upcoming tour dates in North and South America to be with her ailing dog.


Apple, who vowed to make up the concerts, called off three shows in Brazil between November 27 and 30, a Buenos Aires festival appearance on December 1-2 and a December 9 performance in Mexico City, according to her record label, Epic.













The “Criminal” singer and pianist said her 13-year-old pit bull Janet has been suffering from a tumor in her chest among other ailments and appears to be dying.


“She’s my best friend and my mother and my daughter, my benefactor and she’s the one who taught me what love is,” Apple wrote in the four-page letter she penned last week but did not release until Tuesday. “I can’t come to South America. Not now.”


Apple, 35, said that she wants to appreciate the final days with her dog. “I will not be the woman who puts her career ahead of love and friendship,” Apple wrote.


The singer-songwriter, who is touring in support of “The Idler Wheel … ” album, was arrested in September in Texas and charged with felony drug possession for having four grams of hashish, a form of cannabis.


(Reporting By Eric Kelsey; editing by Patricia Reaney and Todd Eastham)


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AP Exclusive: Syrian rebels seize base, arms trove
















BASE OF THE 46TH REGIMENT, Syria (AP) — After a nearly two-month siege, Syrian rebels overwhelmed a large military base in the north of the country and made off with tanks, armored vehicles and truckloads of munitions that rebel leaders say will give them a boost in the fight against President Bashar Assad‘s army.


The rebel capture of the base of the Syrian army’s 46th Regiment is a sharp blow to the government’s efforts to roll back rebels gains and shows a rising level of organization among opposition forces.













More important than the base’s fall, however, are the weapons the rebels found inside.


At a rebel base where the much of the haul was taken after the weekend victory, rebel fighters unloaded half a dozen large trucks piled high with green boxes full of mortars, artillery shells, rockets and rifles taken from the base. Parked nearby were five tanks, two armored vehicles, two rocket launchers and two heavy-caliber artillery cannons.


Around 20 Syrian soldiers captured in the battle were put to work carrying munitions boxes, barefoot and stripped to the waist. Rebels refused to let reporters talk to them or see where they were being held.


“There has never been a battle before with this much booty,” said Gen. Ahmad al-Faj of the rebels Joint Command, a grouping of rebel brigades that was involved in the siege. Speaking on Monday at the rebel base, set up in a former customs office at Syria’s Bab al-Hawa border crossing with Turkey, he said the haul would be distributed among the brigades.


For months, Syria’s rebels have gradually been destroying government checkpoints and taking over towns in the northern provinces of Idlib and Aleppo along the Turkish border.


Rebel fighters say that weapons seized in such battles have been essential to their transformation from ragtag brigades into forces capable of challenging Assad’s professional army. Cross-border arms smuggling from Turkey and Iraq has also played a role, although the most common complaint among rebel fighters is that they lack ammunition and heavy weapons, munitions and anti-aircraft weapons to fight Assad’s air force.


It is unclear how many government bases the rebels have overrun during the 20-month conflict, mostly because they rarely try to hold captured facilities. Staying in the captured bases would make them sitting ducks for regime airstrikes.


“Their strategy is to hit and run,” said Elias Hanna, a retired Lebanese army general and Beirut-based strategic analyst. “They’re trying to hurt the regime where it hurts by bisecting and compartmentalizing Syria in order to dilute the regime’s power.”


The 46th Regiment was a major pillar of the government’s force near the northern city of Aleppo, Syria’s economic hub, and its fall cuts a major supply line to the regime’s army, Hanna said. Government forces have been battling rebels for months over control of Aleppo.


“It’s a tactical turning point that may lead to a strategic shift,” he said.


At the 46th Regiment’s base, about 25 kilometers (15 miles) west of Aleppo, the main three-story command building showed signs of the battle — its walls punctured apparently from rebel rocket attacks. The smaller barracks buildings scattered around the compound, about 2.6 square kilometers (1 square mile) in size, had been looted, with mattresses overturned. A number of buildings had been torched.


Reporters from The Associated Press who visited the base late Monday saw no trace of the government troops who had been defending it — other than the dead bodies of seven soldiers.


Two of them, in camouflage uniforms, lay outside the command building. One of them was missing his head, apparently blown off in an explosion.


The rest were in a nearby clinic. Four dead soldiers were on stretchers set on the floor, one with a large gash in his arm, another with what appeared to be a large shrapnel hole in the back of his head. The last lay on a gurney in another room, his arms and legs bandaged, a bullet hole in his cheek and a splatter of blood on the wall and ceiling behind him as if he had been shot where he lay.


It could not be determined how or when the soldiers had been killed.


The final assault that took the base came after more than 50 days of siege that left the soldiers inside demoralized, according to fighters who took part.


Working together and communicating by radio, a number of different rebels groups divided up the area surrounding the base and each cut the regime’s supply lines, said Abdullah Qadi, a rebel field commander. Over the course of the siege, dozens of soldiers defected, some telling the rebels that those inside were short of food, Qadi said.


The rebels decided to attack Saturday afternoon when they felt the soldiers inside were weak and the rebels had enough ammunition to finish the battle, Qadi said. The battle was over by nightfall on Sunday. Seven rebel fighters were killed in the battle, said al-Faj of the rebels’ Joint Command. Other rebel leaders gave similar numbers.


It remains unclear how many soldiers remained in the base when the rebels launched their attack and what happened to them.


Al-Faj said all soldiers inside were either killed or captured. He said he didn’t know how many were killed, but that the rebels had taken about 50 prisoners, all of whom would be tried in a rebel court. Aside from the 20 prisoners seen at the rebel’s Bab al-Hawa base, the AP was unable to see any other captured soldiers.


The Syrian government does not respond to requests for comment on military affairs and said nothing about the base’s capture. It says the rebels are terrorists backed by foreign powers that seek to destroy the country.


Disorganization has plagued the Syrian opposition since the start of the anti-Assad uprising in March 2011, with exile groups pleading for international help even when they have no control over those fighting inside of Syria.


A newly formed Syrian opposition coalition received a boost Tuesday, when Britain officially recognized it as the sole representative of the Syrian people.


The National Coalition of the Syrian Revolutionary and Opposition Forces was formed in the Gulf nation of Qatar on Oct. 11 under pressure from the United States for a stronger, more united opposition body to serve as a counterweight to more extremist forces.


British Foreign Secretary William Hague said Tuesday the body’s members gave assurances to be a “moderate political force committed to democracy” and that the West must “support them and deny space to extremist groups.”


The United States and the European Union have both spoken well of the body but stopped short of offering it full recognition.


Key to the body’s success will be its ability to build ties with the disparate rebel groups fighting inside Syria. Many rebel leaders say they don’t recognize the new body, and a group of extremist Islamist factions on Monday rejected it, announcing that they had formed an “Islamic state” in Aleppo.


Anti-regime activists say nearly 40,000 people have been killed since Syria’s crisis started 20 months ago.


___


Associated Press write Elizabeth Kennedy contributed reporting from Beirut, Lebanon.


Middle East News Headlines – Yahoo! News



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Scott Derrickson to direct feature adaptation of hit video game “Deus Ex: Human Revolution”
















LOS ANGELES (TheWrap.com) – Scott Derrickson (“Sinister,” “The Exorcism of Emily Rose“) has signed on to direct the big screen adaptation of the hit Square Enix video game, “Deus Ex: Human Revolution,” for CBS Films, the company announced on Thursday.


Derrickson will also write the screenplay for the film with C. Robert Cargill (“Sinister.”)













Roy Lee and Adrian Askarieh are attached to produce the film, with John P. Middleton serving as the executive producer.


Set in the near future, when dramatic advances in science, specifically human augmentation, have triggered a technological renaissance, “Deus Ex: Human Revolution” follows Adam Jensen, an ex-SWAT security specialist who must embrace mechanical augments in order to unravel a global conspiracy.


“‘Deus Ex’ is a phenomenal cyberpunk game with soul and intelligence,” said Derrickson. “By combining amazing action and tension with big, philosophical ideas, ‘Deus Ex‘ is smart, ballsy, and will make one hell of a movie. Cargill and I can’t wait to bring it to the big screen.”


The “Deus Ex” franchise was originally introduced in June 2000. Its latest entry, “Deus Ex: Human Revolution,” launched in 2011, ranked number one across global sales charts and earned over 100 industry awards.


Developed by Eidos-MontrĂ©al and published by Square Enix, “Deus Ex: Human Revolution” will serve as the primary template for the film.


Derrickson and Cargill, pictured above, are represented by WME and managed by Brillstein Entertainment Partners.


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“Hitchcock” trains lens on the love story of Alfred and Alma
















NEW YORK (Reuters) – She won Oscar gold for her uncanny performance as Britain’s Queen Elizabeth, but Helen Mirren‘s latest portrayal finds her as the power behind the throne — or, more precisely, the director’s chair.


In “Hitchcock,” Mirren stars opposite Anthony Hopkins as legendary director Alfred Hitchcock’s devoted wife Alma Reville, and early buzz has her a contender for another Oscar nomination.













The film, which opens in limited release on Friday, explores the domestic life of one of Hollywood‘s most iconic and revered directors, set during the days of his struggle to put the ground-breaking 1960 classic, “Psycho” on the silver screen.


Toggling back and forth between his on-set battles with censors and his cast including Janet Leigh (Scarlett Johansson), Vera Miles (Jessica Biel) and Tony Perkins (James D’Arcy), and his strained relationship with Alma as she copes with his well-documented obsession with his ravishing leading ladies, “Hitchcock” treats film fans to a glimpse of bygone Hollywood.


But it paints a more nuanced and sympathetic portrait of the director Hopkins called “a damaged man” than the recent television film “The Girl,” which dramatized the hell Hitchcock put Tippi Hedren through during filming of “The Birds.”


“It’s a great role,” Mirren said of Alma, a film editor and assistant director in her own right who ceded the spotlight to her husband, but as the film makes clear was involved in virtually every aspect of his films and even re-cut “Psycho” into the masterpiece it is known as today.


“So, you don’t turn that down,” she told Reuters.


Having won her Oscar as one of the world’s most famous women, Mirren said she finds herself drawn to “the ones I don’t know anything about, like Alma. Those are the most fun.”


With little to go on, Mirren said she turned to the 2003 book “Alma Hitchcock: The Woman Behind the Man,” by the couple’s daughter Patricia, who also acted in several Hitchcock films.


“I’m not that much of a film buff that I knew about Alma, and I had no idea about Hitchcock‘s private life,” she said, adding the book aimed “to bring her mother out of the shadows.”


HITCH THE BRAND


By all accounts making the movie about the movies was a joy, with Mirren and Hopkins co-starring in their first film together under first-time director Sacha Gervasi (“Anvil: The Story of Anvil”), who fixed a script that had made the rounds.


Hopkins described it as the “most fun” since his Oscar-winning role in the thriller “Silence of the Lambs.”


Mirren recalled rushing off to work each day: “I couldn’t wait.” And it helped that the actors have the same approach.


“There’s no mystery to it … They talk about chemistry, and Helen agrees with me, there’s no such thing. You know your part, she knows hers, and off you go, hope it works,” Hopkins said.


But Mirren and Hopkins, who is also being touted for an Oscar nomination, parted ways when speculating on how the auteur director, who never won an Oscar during five decades of work, would have fared in the Hollywood of today.


“He would have despaired,” Hopkins said. “It would have been anathema to him. That kind of artistry is gone.”


Corporate control means “you have eight or nine producers on the set, everyone’s got a say in the scripts, and even craft services!”


But Mirren differed, imagining “he’d do brilliantly well.”


“He was a great salesman, and the Hollywood of today is so much about being a salesman and being able to sell yourself as a brand,” she explained. “He did that brilliantly. I think the two of them sold Hitch. Hitch was the faceman, he was the brand.”


“Also,” she added, “his filmmaking techniques would be incredibly successful,” given the technological advances since Hitchcock’s death in 1980.


Hitchcock was on a roll in his early 60s, with his “Psycho” follow-up, the shocking thriller “The Birds” becoming a hit and a much-loved classic. But none of the handful of films he made afterward attained their iconic status.


Mirren, 67, by contrast, truly hit her stride during her 40s, despite a steady two-decade career by that point.


Starting with the TV show “Prime Suspect” to the films “Gosford Park,” “The Queen” and “The Last Station,” she racked up four Oscar nominations and a mantel full of Emmys, which raises a question about the validity of complaints that Hollywood has no use for actresses over 40.


“I think what has changed is, the world around has changed,” Mirren said when reflecting on her success and acclaim.


“I was lucky that I hit my 40s just as the world around me was changing. Twenty years before I never would have been cast in ‘Prime Suspect’ because there were no women inspectors.”


And so, she looks forward.


“As I’ve carried on, my God, 20 years ago it was inconceivable that you’d have a female president of the United States,” she said.


“Now, the next president of America may well be a woman, and if there is a female president, that means that if a movie comes along, and there’s the president of America …” She laughs.


“You know what I mean?”


(Editing by Christine Kearney)


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U.S. soldier accused of Iraq shooting “psychotic”: doctor
















TACOMA (Reuters) – A U.S. soldier accused of killing five fellow servicemen at a military combat stress center in Baghdad in 2009 was psychotic and suffered from post-traumatic stress disorder during the shooting frenzy, a top U.S. forensic psychiatrist testified on Tuesday.


Sergeant John Russell, 48, is accused of going on a shooting spree at Camp Liberty, near the Baghdad airport, in an assault the military said at the time could have been triggered by combat stress.













Russell, of the 54th Engineer Battalion based in Bamberg, Germany, faces five charges of premeditated murder, one charge of aggravated assault and one charge of attempted murder in connection with the May 2009 shootings.


Six months ago, he was ordered to stand trial in a military court that has the power to sentence him to death, if he is convicted.


Russell’s civilian attorney, James Culp, entered no plea at an arraignment on Monday at a military base in Washington state. Russell’s court martial is tentatively set for mid-March and could last four to five weeks, attorneys told Reuters on Tuesday.


In a second day of hearings to discuss Russell’s state of mind at the time of the shooting and establish what evidence or testimony to admit at the court martial, Robert Sadoff, a University of Pennsylvania forensic psychiatry expert, gave the opinion that Russell was suffering from post-traumatic stress disorder.


Russell has “dissociative disorder,” or a lack of memory about the shootings, said Sadoff, who examined Russell for a total of 20 hours after the shootings. “He cannot remember. It’s a legitimate disorder. He also has post-traumatic stress disorder.”


Sadoff, a veteran of 10,000 criminal cases added: “It’s a matter of what’s going on in this man’s mind. He was psychotic. He was not dealing with reality. That’s what psychosis is.”


If the defense can persuade a jury that Russell was not in control of his actions, it may be able to argue that he is not legally responsible and could spare him from the death penalty, if convicted.


During Tuesday’s hearing, Culp sought authority from Judge Colonel David Conn to hire a forensic hypnotist to unlock Russell’s buried memories and conduct a specialized magnetic resonance imaging (MRI) test to measure Russell’s “mild diffused brain atrophy”, which Culp argues played a part in his behavior.


This would help diagnose “the extent of brain damage as it relates to criminal responsibility,” Culp said.


Army prosecutors urged the judge to decline. Major Dan Mazzone, one of four Army attorneys prosecuting the case, told the judge that an Army medical review already indicated that Russell’s brain atrophy was typical of a man his age and further testing is an unnecessary expense to the Army.


“The bottom line, this is just not necessary. It’s something the government should not be entitled to fund,” Mazzone said.


The judge is set to rule on the matter over the next few days.


The proceedings, held at Joint Base Lewis-McChord near Tacoma, Washington, come at a sensitive time for the Army, which is in the process of deciding how to prosecute Staff Sergeant Robert Bales, a soldier accused of killing Afghan villagers in cold blood earlier this year.


A two-week hearing at Lewis-McChord to establish if there is sufficient evidence to send Bales to a court martial wrapped up last week after harrowing testimony from Afghan adults and children wounded in the attack.


Bales’ civilian defense lawyers have also suggested he was suffering from post-traumatic stress disorder.


On Monday, Russell’s attorney outlined a defense based on his declining mental state.


Russell suffered from depression, thoughts of suicide, anxiety and stress from multiple deployments, and suffered “at least one traumatic experience involving civilian casualties” and “mass grave sites” while serving in Bosnia and Kosovo during 1998 and 1999, Culp said in presenting arguments to the judge after the arraignment.


(Reporting by Bill Rigby; Editing by Lisa Shumaker)


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Asia stocks fall after Greece aid delayed
















BANGKOK (AP) — Asian stock markets were mostly lower Wednesday, shedding morning gains after European Union officials failed to release a loan payment to debt-mired Greece and postposed further action until next week.


European finance ministers adjourned a meeting in Brussels without granting Greece the next installment of an emergency bailout loan that has been on hold for months. The €31.5 billion ($ 40 billion) loan is needed so that Athens can pay its bills and avoid running out of cash.













The aid is being delayed until officials can resolve a dispute over whether to give Greece an extra two years to get to a point where it can independently raise funds on bond markets. Greece has been locked out of the international long-term debt market since 2010 and thus relies on rescue loans.


The reform program attached to the bailout was to steadily reduce Greece’s debt to 120 percent of its annual gross domestic product by a 2020 deadline. But some officials say the deadline may have been too ambitious and that Greece needs two more years.


South Korea’s Kospi fell 0.4 percent to 1,882.62 after a higher open. Meanwhile, Australia’s S&P/ASX 200 fell further into negative territory, down 0.3 percent at 4,371.10. Benchmarks in Thailand, New Zealand and Taiwan also were lower.


But Japan’s Nikkei 225 index rose 0.4 percent to 9,178.05, with export shares enjoying the benefits of a weakened yen. Hong Kong‘s Hang Seng added 0.2 percent to 21,272.48. Benchmarks in India and the Philippines also rose.


Mainland China‘s Shanghai Composite Index briefly dipped below 2,000, an important psychological mark. The benchmark hasn’t gone above 2,100 since July 6.


The benchmark “has been hovering around 2,000 for such a long time that investors have lost interest,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong. “The weakness in China‘s market is dragging down the Hong Kong market.”


The losses reflected disappointment among investors hoping to see changes in how the stock market is run now that China has new leaders. But reforms have so far not materialized.


“There has been too much resistance to cleaning up the malpractice” in mainland Chinese markets, Lun said. “Investors have lost confidence.”


Among individual stocks, Japanese snack food maker Calbee dropped 3.7 percent after announcing the recall of millions of bags of potato chips due to possible contamination with glass fragments.


Wall Street stocks finished roughly flat Tuesday after a warning from the Federal Reserve chairman about the “fiscal cliff” of tax increases and government spending cuts set to take effect Jan. 1.


The Dow Jones industrial average fell 0.1 percent to 12,788.51. The Standard & Poor’s 500 index rose 0.1 percent to 1,387.81. The Nasdaq composite index inched up to 2,916.68.


In a speech in New York on Tuesday, Bernanke urged Congress and the Obama administration to strike a budget deal to avert the combination of tax increases and spending cuts that will automatically take effect in January if nothing is done.


“This overshadowed some positive economic data which came in the form of better-than-expected housing starts,” said Stan Shamu of IG Markets in Melbourne in a market commentary.


Benchmark oil for January delivery was down 1 cent at $ 86.74 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $ 2.53 to close at $ 86.75 a barrel on Tuesday, falling sharply after signs that Israel and Hamas are close to putting a halt to fighting that has lasted nearly a week.


In currencies, the dollar rose to 81.79 yen from 81.71 yen late Tuesday in New York. The euro fell to $ 1.2747 from $ 1.2807.


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U.S. soldier accused of Iraq shooting “psychotic”: doctor
















TACOMA (Reuters) – A U.S. soldier accused of killing five fellow servicemen at a military combat stress center in Baghdad in 2009 was psychotic and suffered from post-traumatic stress disorder during the shooting frenzy, a top U.S. forensic psychiatrist testified on Tuesday.


Sergeant John Russell, 48, is accused of going on a shooting spree at Camp Liberty, near the Baghdad airport, in an assault the military said at the time could have been triggered by combat stress.













Russell, of the 54th Engineer Battalion based in Bamberg, Germany, faces five charges of premeditated murder, one charge of aggravated assault and one charge of attempted murder in connection with the May 2009 shootings.


Six months ago, he was ordered to stand trial in a military court that has the power to sentence him to death, if he is convicted.


Russell’s civilian attorney, James Culp, entered no plea at an arraignment on Monday at a military base in Washington state. Russell’s court martial is tentatively set for mid-March and could last four to five weeks, attorneys told Reuters on Tuesday.


In a second day of hearings to discuss Russell’s state of mind at the time of the shooting and establish what evidence or testimony to admit at the court martial, Robert Sadoff, a University of Pennsylvania forensic psychiatry expert, gave the opinion that Russell was suffering from post-traumatic stress disorder.


Russell has “dissociative disorder,” or a lack of memory about the shootings, said Sadoff, who examined Russell for a total of 20 hours after the shootings. “He cannot remember. It’s a legitimate disorder. He also has post-traumatic stress disorder.”


Sadoff, a veteran of 10,000 criminal cases added: “It’s a matter of what’s going on in this man’s mind. He was psychotic. He was not dealing with reality. That’s what psychosis is.”


If the defense can persuade a jury that Russell was not in control of his actions, it may be able to argue that he is not legally responsible and could spare him from the death penalty, if convicted.


During Tuesday’s hearing, Culp sought authority from Judge Colonel David Conn to hire a forensic hypnotist to unlock Russell’s buried memories and conduct a specialized magnetic resonance imaging (MRI) test to measure Russell’s “mild diffused brain atrophy”, which Culp argues played a part in his behavior.


This would help diagnose “the extent of brain damage as it relates to criminal responsibility,” Culp said.


Army prosecutors urged the judge to decline. Major Dan Mazzone, one of four Army attorneys prosecuting the case, told the judge that an Army medical review already indicated that Russell’s brain atrophy was typical of a man his age and further testing is an unnecessary expense to the Army.


“The bottom line, this is just not necessary. It’s something the government should not be entitled to fund,” Mazzone said.


The judge is set to rule on the matter over the next few days.


The proceedings, held at Joint Base Lewis-McChord near Tacoma, Washington, come at a sensitive time for the Army, which is in the process of deciding how to prosecute Staff Sergeant Robert Bales, a soldier accused of killing Afghan villagers in cold blood earlier this year.


A two-week hearing at Lewis-McChord to establish if there is sufficient evidence to send Bales to a court martial wrapped up last week after harrowing testimony from Afghan adults and children wounded in the attack.


Bales’ civilian defense lawyers have also suggested he was suffering from post-traumatic stress disorder.


On Monday, Russell’s attorney outlined a defense based on his declining mental state.


Russell suffered from depression, thoughts of suicide, anxiety and stress from multiple deployments, and suffered “at least one traumatic experience involving civilian casualties” and “mass grave sites” while serving in Bosnia and Kosovo during 1998 and 1999, Culp said in presenting arguments to the judge after the arraignment.


(Reporting by Bill Rigby; Editing by Lisa Shumaker)


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Autonomy ‘misled HP on finances’



















HP chief executive Meg Whitman: “We uncovered a whole host of very concerning accounting improprieties”



Computer maker Hewlett Packard has asked US and UK authorities to investigate alleged misrepresentations of Autonomy’s finances before HP took over the UK software group last year.


HP said Autonomy appeared to have “inflated” the value of the company prior to the takeover as part of a “wilful effort to mislead”.


This led to a $ 5bn (£3.1bn) charge in its latest quarterly accounts.


The former management team of Autonomy “flatly rejected” the allegations.


Three former senior members of staff, including former chief executive Mike Lynch, said they were “shocked” to see the statement.


“HP’s due diligence review was intensive,” Autonomy’s former chief executive, chief financial officer and chief operating officer said, referring to the process of investigating a firm prior to purchase.


“It took 10 years to build Autonomy’s industry-leading technology and it is sad to see how it has been mismanaged since its acquisition by HP,” the statement from the former management team said.


During a conference call following the announcement, HP chief executive Meg Whitman said: “We did a whole host of due diligence but when you’re lied to, it’s hard to find.


“[Autonomy] was smaller and less profitable that we had thought,” she said, adding that HP’s investigations suggested that the UK firm had misstated its revenues and growth rate.


Taking into account recent falls in HP’s share value and lower-than-anticipated returns from the merger, the total one-off charge recorded in HP’s accounts for the three months to the end of October was $ 8.8bn, pushing the company to a $ 6.85bn net loss.


‘Questionable accounting’


Continue reading the main story

HP’s allegations… are shocking if true – not least because for years Autonomy was regarded as that rarest and most precious of British companies, a global hi-tech success”



End Quote



HP said during the conference call that “a very senior person” from Autonomy had come forward “with specific details [of accounting misrepresentations]“. That person was still at the company, it said.


Ms Whitman said HP had discovered a number of irregularities, including hardware sales that had been reported as software revenues, which inflated both overall revenues and profit margins.


She said margins of between 40% and 45% had been reported, whereas HP now believed them to be between 20% and 28%.


As well as referring the matter to the regulatory authorities, the company would be “aggressively pursuing individuals responsible for this wrongdoing”, she added.


This would involve trying to recover money for HP shareholders.


HP shares fell 13% in early trading in New York following the announcement.


Deloitte, the accountancy firm which audited Autonomy’s accounts, said it could not comment on the allegations due to client confidentiality, but would cooperate with any investigations.


Criticism


HP completed the takeover of Autonomy for $ 12bn in October last year.


Autonomy was founded by Mike Lynch in 1996 and grew to become one of the largest software companies in the UK.


Mr Lynch is a non-executive director of the BBC, which said in a statement: “We expect to discuss these reports with Dr Lynch imminently.”


Autonomy gained a listing on the US Nasdaq exchange in May 2000, at the height of the technology boom, and was listed in London six months later.


The firm has often been cited as an example of how academic research can be turned into a profitable business, although it has attracted criticism from the City, particularly when, in October 2010, it warned there had been unexpected volatility in its customers’ “purchasing behaviour” and lowered its full-year forecasts.


HP’s decision to buy the company was part of the US firm’s long-term plan to move away from making computers into the more profitable software business.


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Turbulence on Cuba-Italy flight leaves 30 bruised
















ROME (AP) — An airliner flying from Havana to Milan abruptly plunged some 1,000 meters (3,300 feet) when it hit unusually strong turbulence over the Atlantic on Monday, terrifying passengers and leaving some 30 people aboard with bruises and scrapes, airline officials said.


The flight continued to Milan’s Malpensa airport after the plane’s captain determined that it suffered no structural damage and two passengers who are physicians found no serious injuries, Giulio Buzzi, head of the pilots division at Neos Air, told Sky TG24 TV.













The ANSA news agency quoted bruised passenger Edoardo De Lucchi as saying meals were being served when suddenly there was “10 seconds of terror.” He recounted how plates went flying and some passengers not wearing seatbelts bounced about.


Buzzi had said that the drop measured some 3,000 meters (10,000 feet) in a cloudless sky. But Milan daily’s Corriere della Sera’s web site, quoting Neos official Davide Martini, later reported that the plane first bounced up some 500 meters (1,650 feet), then dropped some 1,000 meters (3,300 feet) to some 500 meters (1,650 feet) below the original altitude.


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