Mahony stripped of public church duties

Los Angeles Archbishop Jose Gomez  on Thursday announced dramatic actions in response to the priest abuse scandal, saying that Cardinal Roger Mahony would no longer perform public duties in the church and that Santa Barbara Bishop Thomas J. Curry has stepped down.

Gomez said in a statement that Mahony -- who led the L.A. archdiocese from 1985 to 2011 -- "will no longer have any administrative or public duties."

Gomez also announced the church has released a trove of confidential church files detailing how the Los Angeles archdiocese dealt with priests accused of molestation.

Gomez wrote in a letter to parishioners that the files would be disturbing to read.

"I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed," he wrote. "We need to acknowledge that terrible failure today."

Gomez's statement came a week after the release of internal Catholic church records. The records showed 15 years before the clergy sex abuse scandal came to light, Mahony and Curry discussed ways to conceal the molestation of children from law enforcement. Those records represent just a fraction of the files the church released Thursday. The Times is now reviewing those files.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The records released last week offer the strongest evidence yet of a concerted effort by officials in the nation's largest Catholic diocese to shield abusers from police. The newly released records, which the archdiocese fought for years to keep secret, reveal in church leaders' own words a desire to keep authorities from discovering that children were being molested.

The records contain memos written in 1986 and 1987 by Mahony and Curry, then the archdiocese's chief advisor on sex abuse cases. In the confidential letters, Curry proposed strategies to prevent police from investigating three priests who had admitted to church officials that they had abused young boys.

Curry suggested to Mahony that they prevent the priests from seeing therapists who might alert authorities and that they give the priests out-of-state assignments to avoid criminal investigators. Mahony, who retired in 2011, has apologized repeatedly for errors in handling abuse allegations.

Gomez's letter detailed changes in the status of Curry and Mahony in the church.

"Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara,” Gomez wrote in a letter.

[Updated
at 9:44 p.m.: An archdiocese spokesman, Tod Tamberg, said that beyond cancelling his confirmation schedule, Mahony's day-to-day life as a retired priest would be largely unchanged. He resides at a North Hollywood parish, and Tamberg said he would remain a “priest in good standing” and continue to celebrate Mass there.]

The records were released hours after a judge signed an order requiring the church to do so.

In a written order, Los Angeles County Superior Court Judge Emilie H. Elias gave the church a Feb. 22 deadline to turn over about 30,000 pages of internal memos, psychiatric reports, Vatican correspondence and other documents.

“Let’s just get it done,” Elias said in court Thursday.

Her order brought to a close five and a half years of legal wrangling and delays and set the stage for a raft of new and almost certainly embarrassing revelations about the church’s handling of pedophile priests.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The files Elias ordered released are the final piece of a landmark 2007 settlement between the archdiocese and about 500 people who said clergy abused them. As part of that $660-million settlement, the archdiocese agreed to hand over the personnel files of accused abusers. Victims said the files would provide accountability for church leaders who let pedophiles remain in the ministry; law enforcement officials said the records would be important investigative tools.

But the release was delayed for years by appeals and the painstaking process of reading and redacting 89 files, some hundreds of pages long. A private mediator in 2011 ordered the church to black out the names of victims and archdiocese employees not accused of abuse, saying he wanted to avoid “guilt by association.”

Earlier this month, at the urging of the Los Angeles Times and the Associated Press, Elias ordered the names restored, saying the public had a right to know what Mahony and others in charge did about abuse. The church complained about the cost of restoring the redactions and suggested to the judge earlier this week that generic cover sheets for the files listing top officials and their dates of service should suffice.

After criticism from attorneys for the victims and the media, the church abandoned that plan and its lawyers said in court Thursday “anybody in a supervisory role” would be named in the documents. Elias’ order specified that the names of the archbishop, the vicar who handled clergy abuse, bishops and the heads of Catholic treatment centers for pedophiles be included.

Here is Gomez's full letter:

My brothers and sisters in Christ,

This week we are releasing the files of priests who sexually abused children while they were serving in the Archdiocese of Los Angeles.

These files document abuses that happened decades ago. But that does not make them less serious.

I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed.

We need to acknowledge that terrible failure today. We need to pray for everyone who has ever been hurt by members of the Church. And we need to continue to support the long and painful process of healing their wounds and restoring the trust that was broken.

I cannot undo the failings of the past that we find in these pages. Reading these files, reflecting on the wounds that were caused, has been the saddest experience I’ve had since becoming your Archbishop in 2011.

My predecessor, retired Cardinal Roger Mahony, has expressed his sorrow for his failure to fully protect young people entrusted to his care. Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara.

To every victim of child sexual abuse by a member of our Church: I want to help you in your healing. I am profoundly sorry for these sins against you.

To every Catholic in the Archdiocese of Los Angeles, I want you to know: We will continue, as we have for many years now, to immediately report every credible allegation of abuse to law enforcement authorities and to remove those credibly accused from ministry. We will continue to work, every day, to make sure that our children are safe and loved and cared for in our parishes, schools and in every ministry in the Archdiocese.

In the weeks ahead, I will address all of these matters in greater detail. Today is a time for prayer and reflection and deep compassion for the victims of child sexual abuse.

I entrust all of us and our children and families to the tender care and protection of our Blessed Mother Mary, Our Lady of Guadalupe and Our Lady of the Angels.

Sincerely yours in Christ,

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Photo: Cardinal Roger Mahony in the entrance processional for the Mass for the Reception of Coadjutor Archbishop of Los Angeles Jose Gomez. Credit: Don Bartletti / Los Angeles Times

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How a Boat-Plane Hybrid Shattered the Sound Barrier of Sailing

Seen from across Walvis Bay, the windswept patch of Atlantic Ocean known as Speed Spot is barely more than a sparkle of whitecaps against a long, low sandbar. As we get closer to what is one of the world’s most perfect speed-sailing areas, I scan the shore. It’s featureless save for two small shelters. We motor our zodiac toward the remote beach until we have to kill the outboard and tilt it up to spare the prop. The five of us jump overboard into the waist-deep water, following our guide, Paul Larsen, who is wading toward the shore. The wind howls in our faces, blowing so much sand that it runs down the beach in rivulets, like rain across a windshield. We climb up on the beach, jellyfish at our feet as thick as paving stones. “This is it. This is the Bonneville Salt Flats of speed sailing!” Larsen shouts, gesturing to the water just off the sandbar. The flying sand sticks to our teeth, turning the insides of our mouths to 600-grit with every word. “We’ll have to shovel out the timing hut,” Larsen says, peering into the primitive shelter he built years ago and pointing out animal tracks inside. “Jackal,” he concludes.

There is a shipping port on the far side of the bay, but over here the landscape is so desolate, so extreme, that we could be on an alien planet—Frank Herbert’s Arrakis, George Lucas’ Tatooine. In fact, we are in Namibia, a roughly Texas-sized country at the southwest corner of the African continent. Walvis Bay is one of the Atlantic’s great natural harbors, but it’s surrounded by emptiness: 31,000 square miles of desert. The dunes march right into the sea, setting up an elemental cycle that repeats itself nearly every day of the antipodal summer. Mornings break as clear and sunny as a Baywatch shoot, but in the afternoon, near-gale-force winds descend on the bay. The desert heat meeting the cool Benguela Current coming up from the Cape of Good Hope creates a powerful natural wind machine. It arrives like clockwork, steady and relentless. “No ruffles,” Larsen says, feeling the wind with his hand. The featureless landscape—no vegetation, no terrain, no fences, no buildings apart from the shelters—makes for perfectly organized air. “Attached flow,” he calls it, using the jargon of an aerodynamicist evaluating a successful wind-tunnel test.

Larsen is originally from Australia, but he searched the world for years to find this spot, a perfect natural runway to test a sailboat so radical that it is more at home in an airplane hangar than in any harbor—a futuristic craft that, if he can make it work, will not only capture the outright world speed-sailing record but also open up a new, no-limit era in sailing. “A hundred knots, maybe?” Larsen speculates from inside one of the huts, looking through a sandblasted window at the watery speed-sailing course just beyond the beach. The current record is just over 50.

Floating behind the zodiac is the boat that has brought Larsen to Speed Spot for the tenth time in as many years in pursuit of sailing’s speed record: the Vestas SailRocket Mark 2. Its aeronautical DNA is obvious at a glance. There’s a rigid carbon-fiber “wing” that functions as a sail, an ultra-streamlined 40-foot-long “fuselage,” and even something like landing gear—three pod-shaped floats that keep the wing and fuselage above the chop. Yet what looks at first glance like a water-striding sailplane is, on closer inspection, pure crazytown. For one thing, its wing is inclined at a 30-degree angle to the water and is nowhere near the fuselage. Instead, it’s mounted on the end of a 30-foot-long beam. The pole is, in a sense, an odd sort of mast—except that it runs horizontally. On the opposite side of the boat is a bladelike carbon-fiber fin. Technically this is the keel, or as Larsen calls it, the foil. SailRocket’s foil sprouts from the side of its fuselage, then turns to cut 3 feet down into the water. Critical to any sailboat, a keel keeps a boat from blowing over—or, in this case, from flying away.

“She’s 50 percent plane, 50 percent boat,” Larsen explains. Indeed, if SailRocket were dropped from a great height, it would glide down rather than fall. Larsen designed in aerodynamic stability as a safety measure. “If for some reason she lost the keel at speed,” Larsen explains, “than she really would be a plane, wouldn’t she?” The prototype version of SailRocket, Mark 1, actually did take off into the air, and Larsen survived what may be the most spectacular crash in sailing history.

It was 2008 and he was at Speed Spot putting the Mark 1 through its paces when a gust got under the boat and launched it clear into the sky. The half-plane/half-boat hit an altitude of between 40 and 50 feet while cartwheeling through a flip—before crash-landing upside down and backward. “It just kept going up and up,” Larsen said at the time, “then it hit bloody hard on my head.”

Larsen is confident enough about the stability of his revised design, the Mark 2, that he included a passenger cockpit behind the driver’s seat. It’s never held a passenger, however. “I haven’t installed the seat yet,” Larsen says, “but I’m going to have to test it out sooner or later …” He cocks an eyebrow in my direction. “Would that be good for your story?”

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Whitney Houston anniversary to be marked with TV Grammy special

LOS ANGELES (Reuters) – Grammy organizers plan to mark the first anniversary of the sudden death of Whitney Houston with a behind-the-scenes TV show on how they scrambled to honor the singer just 24 hours after she died.

The Recording Academy said on Thursday that the hour-long special entitled “The Grammys Will Go On: A Death in the Family” will air on February 9, the day before the 2013 Grammy Awards ceremony in Los Angeles.

Houston, who sold hundreds of millions of records and scored the mega hits “I Will Always Love You” and “I Wanna Dance with Somebody,” drowned in a bathtub at a Beverly Hills hotel room on February 11 2012 – the eve of last year’s Grammy Awards show.

Houston’s unexpected death at age 48 cast a shadow over the event, which quickly changed its program to pay homage to the soaring voice that had dominated the Grammys in decades past.

Singer and actress Jennifer Hudson performed a medley of Houston’s hits at last year’s Grammys, and rapper and host LL Cool J opened the show with a prayer.

The TV special on broadcaster CBS features rehearsals and interviews with artists – including Hudson, Bruce Springsteen and Taylor Swift – and the show’s producers in the hours before and after Houston’s death.

The Recording Academy produces the annual Grammy awards.

(Reporting by Eric Kelsey, editing by Jill Serjeant and David Brunnstrom)

Music News Headlines – Yahoo! News

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Insurance Industry Report Faults High Fees for Out-of-Network Care

Michael Nagle for The New York Times

Angel Gonzalez, 36, faced huge bills after emergency gallbladder surgery, despite having good insurance coverage. “I was on the hook for more than I made in a year.”

Just over a year ago, Angel Gonzalez, 36, awoke with searing chest pain at 2 a.m. A friend drove him to the closest emergency room.

Though he was living on $18,000 a year as a graduate student, Mr. Gonzalez had good insurance and the hospital, St. Charles in Port Jefferson, N.Y., was in his network. But the surgeon who came in to remove Mr. Gonzalez’s gallbladder that Sunday night was not.

He billed Mr. Gonzalez $30,000, and an assistant billed an additional $30,000. Mr. Gonzalez’s policy covered out-of-network providers, but at a rate it considered appropriate: $2,000. “I was on the hook for more than I made in a year,” Mr. Gonzalez said.

A health insurance industry report to be released on Friday highlights the exorbitant fees charged by some doctors to out-of-network patients like Mr. Gonzalez. The report, by America’s Health Insurance Plans, or AHIP, contrasts some of the highest bills charged by non-network providers in 30 states with Medicare rates for the same services. Some of the charges, the insurers assert, are 30, 40 or nearly 100 times greater than Medicare rates.

Insurers hope to spotlight a vexing problem that they say the Affordable Care Act does little to address. “When you’re out of network, it’s a blank check,” said Karen Ignagni, president and chief executive of AHIP. “The consumer is vulnerable to ‘anything goes.’ ”

“Unless we deal with cost, we won’t have affordability,” she added. “And unless we have affordability, we won’t have people participating” under the Affordable Care Act.

Among the fees on the report’s list are a $6,205 outpatient office visit to a doctor in Massachusetts for which Medicare would have paid $152; a $12,000 bill for examining a tissue specimen in New York for which Medicare would have paid $128; and a $48,983 surgeon’s fee for a total hip replacement in New Jersey that Medicare would have reimbursed at $1,543. Many of the highest billers were in New York, Texas, Florida and New Jersey.

Elisabeth R. Benjamin, co-founder of the Health Care for All New York coalition, who is often at odds with the insurance industry, said that “is one area we totally agree on.” She continued, “Out-of-network billing is just out of control.”

Even when out-of-network fees are compared with average commercial insurance reimbursements, which are usually greater than Medicare, she said, “It’s pretty outrageous.”

Doctors say the report is skewed because it focuses on a few dozen cases of overcharging that are not representative of their billing. In response to the insurers’ report, the American Medical Association noted on Thursday that a recent analysis found that doctors’ services account for just 16 percent of health care costs.

“There are outliers in every profession, in every business,” said Dr. Andrew Y. Kleinman, a plastic surgeon who is vice president of the Medical Society of the State of New York.

Dr. Kleinman also noted that insurers had effectively shifted the costs of out-of-network care onto patients by changing reimbursement formulas. Instead of the rates commercial insurers usually pay doctors, insurers increasingly are basing their out-of-network payments on Medicare rates, usually far lower.

A growing number of high-end, flexible health plans offer policies that cover outside providers at, for example, 140 percent of Medicare. “They’re selling you an insurance product you can’t use,” Dr. Kleinman said. “You’re buying an insurance policy where the out-of-network benefit is worthless.”

The industry’s own report suggests that using Medicare rates as a benchmark will lead to patients’ picking up much more of the cost for out-of-network care, whether they carefully select a specialist or, as in the case of Mr. Gonzalez and many others, have no choice in the matter.

Had Mr. Gonzalez been 65 or older, Medicare would have paid only $958 for the surgery. The average commercial price is $12,292, according to FAIR Health, an independent nonprofit group that tracks information on health care costs.

But Mr. Gonzalez’s health plan, United Healthcare, determined the fee should be $1,273, of which the company paid $838. Mr. Gonzalez filed appeals, which were rejected. He then contacted Community Health Advocates at the Community Service Society of New York for help, and the group’s caseworkers negotiated with the surgeon on his behalf.

After months of wrangling, the surgeon agreed to accept a significantly reduced payment: $340.

Consumer advocates and health insurance executives are calling for greater transparency in health care pricing, including upfront disclosure of prices of medical procedures and services.

“The health care industry can give you an estimate, just like any other industry,” said Carrie H. Colla, an assistant professor at the Dartmouth Institute for Health Policy and Clinical Practice, noting that the Dartmouth-Hitchcock Medical Center has a patient price estimator online.  

“It’s just not current practice right now,” Dr. Colla said. “Sometimes a doctor won’t even know. The patient really has to push for it.”

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DealBook: Doubt Is Cast on Firms Hired to Help Banks

Federal authorities are scrutinizing private consultants hired to clean up financial misdeeds like money laundering and foreclosure abuses, taking aim at an industry that is paid billions of dollars by the same banks it is expected to police.

The consultants operate with scant supervision and produce mixed results, according to government documents and interviews with prosecutors and regulators. In one case, the consulting firms enabled the wrongdoing. The deficiencies, officials say, can leave consumers vulnerable and allow tainted money to flow through the financial system.

“How can you be independent if you’re hired by the entity you’re reviewing?” Senator Jack Reed, Democrat of Rhode Island, who sits on the Senate Banking Committee, said.

The pitfalls were exposed last month when federal regulators halted a broad effort to help millions of homeowners in foreclosure. The regulators reached an $8.5 billion settlement with banks, scuttling a flawed foreclosure review run by eight consulting firms. In the end, borrowers hurt by shoddy practices are likely to receive less money than they deserve, regulators said.

On Thursday, Senator Elizabeth Warren, Democrat of Massachusetts, and Representative Elijah Cummings, Democrat of Maryland, announced that they would open an investigation into the foreclosure review, seeking “additional information about the scope of the harms found.”

Critics concede that regulators have little choice but to hire outsiders for certain responsibilities. after they find problems at the banks. The government does not have the resources to ensure that banks follow the rules. Still, consultants like Deloitte & Touche and the Promontory Financial Group can add to regulators’ headaches, the government documents and interviews indicate. Some banks that work with consultants continue to run afoul of the law. At other times, consultants underestimate the extent of the misdeeds or facilitate them, preventing regulators from holding institutions accountable.

Now, regulators and lawmakers are rethinking their relationship with the consultants. Officials at the Federal Reserve, which oversees many large banks, are questioning the prudence of relying on consultants so heavily, said two people with direct knowledge of the matter.

When the Office of the Comptroller of the Currency penalized JPMorgan Chase last month for breakdowns in money-laundering controls, it imposed stricter requirements, ordering the bank to hire a consultant with “specialized experience” in money laundering and to ensure that the firm “not be subject to any conflict of interest.” In a separate action against the bank related to a $6 billion trading loss last year, the agency opted not to mandate an outside consultant at all.

While the comptroller’s office will continue requiring consultants in certain cases, some agency officials are worried about the quality of the work, as well as the consultants’ independence, according to three government officials briefed on the matter.

Since the financial crisis, regulators have increasingly relied on consultants. The comptroller’s office ordered banks to hire consultants in more than 130 enforcement actions since 2008, or nearly 15 percent of the cases.

It can be a lucrative business. In 2011, regulators mandated that 14 banks employ consultants to determine whether homeowners were wrongfully evicted. Over 14 months, the consultants collected about $2 billion in fees, according to regulators and bank officials.

Those fees amounted to more than half of what homeowners will receive under the $8.5 billion settlement that ended the review. As part of the deal, officials will disburse $3.3 billion to 3.8 million borrowers in foreclosure.

According to consultants and regulators, the broad review was plagued with inefficiencies. For example, Promontory initially instructed employees to calculate lawyers’ fees for each loan, to assess if borrowers were overcharged. Later, it scrapped the original procedure, only to reverse the policy again two weeks later, according to two reviewers who worked for Promontory.

“From Day 1, Promontory strove to conduct its review work as thoroughly and independently as possible,” a spokesman for the firm, Christopher Winans, said in a statement. “Our overarching concern at all times was to serve the best interests of borrowers.”

Some lawmakers question whether a consultant’s regulatory connections helped it secure contracts. PricewaterhouseCoopers, which has a stable of former Securities and Exchange Commission officials, won much of the foreclosure review work, signing deals with four banks, including Citigroup. Promontory, the firm examining loans for Wells Fargo, Bank of America and PNC, was founded in 2000 by the former head of the comptroller’s office, Eugene A. Ludwig.

When the contracts were initially awarded, some housing advocates complained that consulting firms could not objectively evaluate banks with which they had pre-existing business relationships. The comptroller’s office said it vetted the firms to spot such potential conflicts, and argued that the process provided swifter relief for homeowners than if the government had hired the companies directly through a lengthy contracting process.

But concerns persisted. Deloitte, which won the contract to review JPMorgan’s loans, had previously audited Washington Mutual and Bear Stearns, two firms JPMorgan acquired during the financial crisis. In May, the comptroller’s office replaced Allonhill, the consultant for Aurora Bank, after the firm disclosed that it had already reviewed some “of the same pool of loans” as part of an earlier contract.

“It’s clear from the foreclosure settlement that oversight over consultants was inadequate and the review process was deeply flawed,” said Representative Carolyn B. Maloney, Democrat of New York, who recently pressed regulators to detail how consultants were paid. People close to the review say consultants relied on a process that the comptroller’s office designed in 2011, under previous leadership.

“This was a very complex process,” a spokesman for the comptroller said. “Throughout the process, regulators provided continuous oversight, guidance and were available to discuss issues.” The agency also performs spot checks on the consultants.

Still, the foreclosure review highlighted broader concerns about the role consultants play.

Since the financial crisis, the comptroller’s office has issued nearly 20 enforcement actions against banks that had already hired consultants to help iron out problems, according to government documents. While consultants cannot be expected to remedy every last issue at the banks, the actions raise questions about the effectiveness of their work.

When HSBC, the British bank, was sanctioned in 2003 over porous money-laundering controls, the bank turned to Deloitte to review its compliance, an official briefed on the matter said. Deloitte also worked for HSBC from 2006 to 2008, the person said, building a system to monitor money flows more effectively. But the bank ran into trouble in 2010 over similar issues, as highlighted in a recent scathing report by the Senate’s Permanent Subcommittee on Investigations.

As part of a regulatory order, HSBC again hired Deloitte, this time to assess the number of times the bank failed to report suspicious transactions. Deloitte, three officials said, generously bundled hundreds of missed transfers into a single report. That helped save the bank from some government fines.

Despite the undercounting, HSBC still paid a record $1.9 billion last year to settle accusations that it enabled drug cartels to move money through its American subsidiaries.

In a statement, a spokesman for the firm said, “Deloitte fully stands behind the quality and integrity of its work on behalf of regulatory authorities.”

Deloitte has also been suspected of helping institutions cloak illicit transfers of money to rogue nations around the globe. In August, New York’s top banking regulator, Benjamin M. Lawsky, accused Deloitte of helping the British bank Standard Chartered flout American sanctions.

The consulting firm was hired to flag suspicious transfers routed through Standard Chartered’s New York branches. Instead, it instructed bankers on how to escape regulatory scrutiny, according to state court documents.

Deloitte turned over “highly confidential information” from which the bank gleaned insight into “regulators’ concerns and strategies,” the court documents said. The firm later doctored its report to regulators, Mr. Lawsky said, deliberately removing some illegal transfers on behalf of Iranian clients. In an e-mail, a Deloitte partner admitted that a report on the transactions was a “watered-down version.”

The authorities never took legal action against Deloitte, and federal officials noted in a separate settlement agreement that Standard Chartered employees withheld critical information from the consulting firm.

Despite these concerns, regulators are turning to a familiar source to help Standard Chartered. As part of a $327 million settlement last year, the bank is required to hire “an independent consultant.”

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Bell city clerk testifies signatures on documents were forged

A key prosecution witness in the Bell corruption case testified Wednesday that signatures on city contracts, minutes for council meetings, agendas and even resolutions were forged.

Bell City Clerk Rebecca Valdez's testimony could bolster the defense's argument that record-keeping in Bell was so sloppy that it would be difficult to prove that six former council members inflated their annual salaries to nearly $100,000 by serving on boards and commissions that met for a few minutes, if ever.

On her third day on the witness stand, Valdez said she noticed the forgeries in 2010 when pulling together records requested by investigators looking into possible wrongdoing. She said she never looked into the forgeries, and didn't make a list of the questionable documents.

Los Angeles County Superior Court Judge Kathleen Kennedy ordered Valdez to look through the paperwork being used as exhibits for the trial.

After thumbing through binders filled with documents from 2005 to 2010, the city clerk said she detected about eight agendas from 2005 to 2006 that had forged signatures.

"It looks like R Valdez, but that's not the way I sign," Valdez said of the name written in cursive. She said the forgery appeared to be the work of her predecessor, Theresa Diaz.

"That appears to be her handwriting?" defense attorney Alex Kessel asked Valdez.

"Yes."

"So from your knowledge of her penmanship you believe she signed your name?"

"Yes."

As the city clerk, Valdez was responsible for keeping accurate records of public meetings but her testimony has revealed that she signed minutes for meetings she didn't attend, sometimes made mistakes in her records and for three years was the clerk in name only, performing almost none of the required duties.

"Forgery is another area that questions the legitimacy and accuracy of the minutes and agenda which is the cornerstone of the district attorney's argument that no work was being done," Kessel told The Times.

The prosecution has used many documents signed by Valdez to illustrate that Luis Artiga, Victor Bello, George Cole, Oscar Hernandez, Teresa Jacobo and George Mirabal did little work when it came to the authorities that beefed up their paychecks.

Among those is the Solid Waste and Recycling Authority, which Deputy Dist. Atty Edward Miller has labeled a "sham."

On Wednesday Miller read the ordinance for that authority, which said it could be created "for the purpose of acquiring, constructing, maintaining or operating an enterprise for the collection, treatment or disposal of waste."

Miller then asked Valdez: "Have you seen an enterprise for the collection, treatment or disposal of waste in the city of Bell?"

"No," she replied.

Defense attorneys have attempted to pin much of the city's alleged corruption on former City Administrator Robert Rizzo. Valdez said Rizzo expected people to do what he said and was a chronic micromanager.

"It was pretty well-known to the employees that important events that happened in your life, like going to school, having a baby or buying a house — he had to be the first one to find out," Valdez said. "If he found out through a second person or third person, the employee would kind of be in the doghouse.

"When I got married," she said, "he was the first one to know before any of my peers knew."

Valdez said Rizzo questioned her about a house she was thinking of buying and urged her to make a 20% down payment. When she told him she didn't have the money, Rizzo offered her a $48,000 loan, she said.

Prosecutors say her loan, along with dozens of others provided to city employees, was given without proper authorization.

Valdez, who was granted immunity for her testimony, said she processed the repayment of such loans. She also prepared salary contracts for the council members, as well as Rizzo. She said she was aware of Rizzo's salary before the news became public.

Valdez testified that during a July 2010 meeting requested by Times reporters, Artiga and Hernandez appeared shocked when they heard that Rizzo was making nearly $800,000.

She also recalled that Hernandez, "said something to the effect of 'To have a good city manager you have to pay him well.' "

corina.knoll@latimes.com

ruben.vives@latimes.com

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<em>New York Times</em> Hacked Again, This Time Allegedly by Chinese

In a dramatic announcement late Wednesday, the New York Times reported that hackers from China had been routing through the paper’s network for at least four months, stealing the passwords of reporters in an apparent attempt to identify sources and gather other intelligence about stories related to the family of China’s prime minister.

The hackers breached the network sometime around Sept. 13 and stole the corporate passwords for every Times employee, using them to gain access to the personal computers of 53 employees, according to the report.

The hacking coincided with an investigation the Times published last October that looked into a fortune that the family of China’s Prime Minister Wen Jiabao had amassed. The hackers breached the network while the paper was in the process of concluding its reporting for the investigation.

The hackers broke into the email account of the newspaper’s Shanghai bureau chief, David Barboza, who conducted the investigation, as well as the email account of Jim Yardley, the paper’s South Asia bureau chief in India, who had previously worked out of Beijing.

Executive Editor Jill Abramson said, however, that forensic experts with Mandiant, the computer security firm hired to investigate the breach, found “no evidence that sensitive e-mails or files from the reporting of our articles about the Wen family were accessed, downloaded or copied.”

It’s not the first time that the paper has been hacked. In 1998, a group known as HFG — or H4acking for Girl13z — hacked the paper’s web site to protest the arrest of hacker Kevin Mitnick and accuse Times reporter John Markoff of helping to catch him.

In 2002, former hacker Adrian Lamo, famously hacked the paper’s network after discovering multiple vulnerabilities and accessed a database containing the details of 3,000 contributors to the paper’s op-ed page, among other things.

In 2011, former executive editor of the Times, Bill Keller, hinted that WikiLeaks or someone associated with the group had hacked into the accounts of some of the paper’s staff. During a period of heightened tension between WikiLeaks founder Julian Assange and the paper, which was then a publishing partner of WikiLeaks, the e-mail accounts of at least three people associated with the project were apparently hacked. Keller suggested that Assange and WikiLeaks was behind the intrusions but never offered evidence to support this.

In the latest hack, the attackers, in an attempt to hide their tracks, routed their attacks through computers that they hacked at universities in North Carolina, Arizona, Wisconsin and New Mexico, as well as at small companies and internet service providers. They apparently used the same university computers that hackers working for the Chinese military used previously to attack Defense Department contractors.

During the three months they were in the paper’s network, the attackers installed 45 pieces of custom malware, though nearly all of it went detected. Although the newspaper uses antivirus products made by Symantec, the monitoring software identified and quarantined only one of the attacker’s tools during that time, according to the report.

The attackers increased their activity in late October after the paper published its investigation of the prime minister’s relatives, and were also particularly active the night of the Nov. 6 presidential election.

The paper noted that there were concerns the hackers would try to shut down its publishing system that night, but they turned out to be unwarranted since the attackers apparently showed interest only in the paper’s reporting about the prime minister’s family.

“They could have wreaked havoc on our systems,” said Marc Frons, the Times’s chief information officer said in the report. “But that was not what they were after.”

The Times had been on alert for suspicious activity after learning that Chinese officials had warned that the paper’s reporting would have consequences. The paper asked AT&T, which monitors its network, to be on the lookout for suspicious activity.

After AT&T reported finding such activity, the FBI was notified, and the Times called in Mandiant to investigate.

Evidence showed that the hackers installed three backdoors and routed their way through the network for two weeks before uncovering a system containing the computer usernames and hashed passwords for all of the paper’s employees. The hackers apparently cracked a number of passwords to gain entry to employee computers.

“They created custom software that allowed them to search for and grab Mr. Barboza’s and Mr. Yardley’s e-mails and documents from a Times e-mail server,” the paper revealed.

The intrusion is apparently part of a wider campaign directed by Chinese hackers against western media outlets since 2008. Hackers from China also attempted to hack into the network of Bloomberg News last year after publishing stories about the relatives of China’s vice president.

Mandiant has investigated many of the breaches and found evidence that Chinese hackers had stolen e-mails, contact lists and files from more than 30 journalists and executives working for western media outlets.

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Patty Andrews of Andrews Sisters dead at 94

LOS ANGELES (AP) — Patty Andrews, the last surviving member of the singing Andrews Sisters trio whose hits such as the rollicking “Boogie Woogie Bugle Boy of Company B” and the poignant “I Can Dream, Can’t I?” captured the home-front spirit of World War II, died Wednesday. She was 94.

Andrews died of natural causes at her home in the Los Angeles suburb of Northridge, said family spokesman Alan Eichler in a statement.

Patty was the Andrews in the middle, the lead singer and chief clown, whose raucous jitterbugging delighted American servicemen abroad and audiences at home.

She could also deliver sentimental ballads like “I’ll Be with You in Apple Blossom Time” with a sincerity that caused hardened GIs far from home to weep.

“When I was a kid, I only had two records and one of them was the Andrews Sisters. They were remarkable. Their sound, so pure,” said Bette Midler, who had a hit cover of “Bugle Boy” in 1973. “Everything they did for our nation was more than we could have asked for. This is the last of the trio, and I hope the trumpets ushering (Patty) into heaven with her sisters are playing “Boogie Woogie Bugle Boy.”

From the late 1930s through the 1940s, the Andrews Sisters produced one hit record after another, beginning with “Bei Mir Bist Du Schoen” in 1937 and continuing with “Beat Me Daddy, Eight to the Bar,” ”Rum and Coca-Cola” and more. They recorded more than 400 songs and sold over 80 million records, several of them going gold.

Other sisters, notably the Boswells, had become famous as singing acts, but mostly they huddled before a microphone in close harmony. The Andrews Sisters — LaVerne, Maxene and Patty — added a new dimension. During breaks in their singing, they cavorted about the stage in rhythm to the music.

Their voices combined with perfect synergy. As Patty remarked in 1971: “There were just three girls in the family. LaVerne had a very low voice. Maxene’s was kind of high, and I was between. It was like God had given us voices to fit our parts.”

Kathy Daris of the singing Lennon Sisters recalled on Facebook late Wednesday that the Andrews Sisters “were the first singing sister act that we tried to copy. We loved their rendition of songs, their high spirit, their fabulous harmony.”

The Andrews Sisters‘ rise coincided with the advent of swing music, and their style fit perfectly into the new craze. They aimed at reproducing the sound of three harmonizing trumpets.

“I was listening to Benny Goodman and to all the bands,” Patty once remarked. “I was into the feel, so that would go into my own musical ability. I was into swing. I loved the brass section.”

Unlike other singing acts, the sisters recorded with popular bands of the ’40s, fitting neatly into the styles of Benny Goodman, Glenn Miller, Jimmy Dorsey, Bob Crosby, Woody Herman, Guy Lombardo, Desi Arnaz and Russ Morgan. They sang dozens of songs on records with Bing Crosby, including the million-seller “Don’t Fence Me In.” They also recorded with Dick Haymes, Carmen Miranda, Danny Kaye, Al Jolson, Jimmy Durante and Red Foley.

The Andrews’ popularity led to a contract with Universal Pictures, where they made a dozen low-budget musical comedies between 1940 and 1944. In 1947, they appeared in “The Road to Rio” with Bing Crosby, Bob Hope and Dorothy Lamour.

The trio continued until LaVerne’s death in 1967. By that time the close harmony had turned to discord, and the sisters had been openly feuding.

Midler’s cover of “Bugle Boy” revived interest in the trio. The two survivors joined in 1974 for a Broadway show, “Over Here!” It ran for more than a year, but disputes with the producers led to the cancellation of the national tour of the show, and the sisters did not perform together again.

Patty continued on her own, finding success in Las Vegas and on TV variety shows. Her sister also toured solo until her death in 1995.

Her father, Peter Andrews, was a Greek immigrant who anglicized his name of Andreus when he arrived in America; his wife, Olga, was a Norwegian with a love of music. LaVerne was born in 1911, Maxine (later Maxene) in 1916, Patricia (later Patty, sometimes Patti) in 1918.

All three sisters were born and raised in the Minneapolis area, spending summers in Mound, Minn., on the western shores of Lake Minnetonka, about 20 miles west of Minneapolis.

Listening to the Boswell Sisters on radio, LaVerne played the piano and taught her sisters to sing in harmony; neither Maxene nor Patty ever learned to read music. All three studied singers at the vaudeville house near their father’s restaurant. As their skills developed, they moved from amateur shows to vaudeville and singing with bands.

After Peter Andrews moved the family to New York in 1937, his wife, Olga, sought singing dates for the girls. They were often turned down with comments such as: “They sing too loud and they move too much.” Olga persisted, and the sisters sang on radio with a hotel band at $ 15 a week. The broadcasts landed them a contract with Decca Records.

They recorded a few songs, and then came “Bei Mir Bist Du Schoen,” an old Yiddish song for which Sammy Cahn and Saul Kaplan wrote English lyrics. (The title means, “To Me You Are Beautiful.”) It was a smash hit, and the Andrews Sisters were launched into the bigtime.

Their only disappointment was the movies. Universal was a penny-pinching studio that ground out product to fit the lower half of a double bill. The sisters were seldom involved in the plots, being used for musical interludes in film with titles such as “Private Buckaroo,” ”Swingtime Johnny” and “Moonlight and Cactus.”

Their only hit was “Buck Privates,” which made stars of Abbott and Costello and included the trio’s blockbuster “Boogie Woogie Bugle Boy from Company B.”

In 1947, Patty married Martin Melcher, an agent who represented the sisters as well as Doris Day, then at the beginning of her film career. Patty divorced Melcher in 1949 and soon he became Day’s husband, manager and producer.

Patty married Walter Weschler, pianist for the sisters, in 1952. He became their manager and demanded more pay for himself and for Patty. The two other sisters rebelled, and their differences with Patty became public. Lawsuits were filed between the two camps.

“We had been together nearly all our lives,” Patty explained in 1971. “Then in one year our dream world ended. Our mother died and then our father. All three of us were upset, and we were at each other’s throats all the time.”

Patty Andrews is survived by her foster daughter, Pam DuBois, a niece and several cousins. Weschler died in 2010.

A memorial service is planned in Los Angeles, with the date to be determined.

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Well: Waiting for Alzheimer's to Begin

My gray matter might be waning. Then again, it might not be. But I swear that I can feel memories — as I’m making them — slide off a neuron and into a tangle of plaque. I steel myself for those moments to come when I won’t remember what just went into my head.

I’m not losing track of my car keys, which is pretty standard in aging minds. Nor have I ever forgotten to turn off the oven after use, common in menopausal women. I can always find my car in the parking lot, although lots of “normal” folk can’t.

Rather, I suddenly can’t remember the name of someone with whom I’ve worked for years. I cover by saying “sir” or “madam” like the Southerner I am, even though I live in Vermont and grown people here don’t use such terms. Better to think I’m quirky than losing my faculties. Sometimes I’ll send myself an e-mail to-do reminder and then, seconds later, find myself thrilled to see a new entry pop into my inbox. Oops, it’s from me. Worse yet, a massage therapist kicked me out of her practice for missing three appointments. I didn’t recall making any of them. There must another Nancy.

Am I losing track of me?

Equally worrisome are the memories increasingly coming to the fore. Magically, these random recollections manage to circumnavigate my imagined build-up of beta-amyloid en route to delivering vivid images of my father’s first steps down his path of forgetting. He was the same age I am now, which is 46.

“How old are you?” I recall him asking me back then. Some years later, he began calling me every Dec. 28 to say, “Happy birthday,” instead of on the correct date, Dec. 27. The 28th had been his grandmother’s birthday.

The chasms were small at first. Explainable. Dismissible. When he crossed the street without looking both ways, we chalked it up to his well-cultivated, absent-minded professor persona. But the chasms grew into sinkholes, and eventually quicksand. When we took him to get new pants one day, he kept trying on the same ones he wore to the store.

“I like these slacks,” he’d say, over and over again, as he repeatedly pulled his pair up and down.

My dad died of Alzheimer’s last April at age 73 — the same age at which his father succumbed to the same disease. My dad ended up choosing neurology as his profession after witnessing the very beginning of his own dad’s forgetting.

Decades later, grandfather’s atrophied brain found its way into a jar on my father’s office desk. Was it meant to be an ever-present reminder of Alzheimer’s effect? Or was it a crystal ball sent to warn of genetic fate? My father the doctor never said, nor did he ever mention, that it was his father’s gray matter floating in that pool of formaldehyde.

Using the jarred brain as a teaching tool, my dad showed my 8-year-old self the difference between frontal and temporal lobes. He also pointed out how brains with Alzheimer’s disease become smaller, and how wide grooves develop in the cerebral cortex. But only after his death — and my mother’s confession about whose brain occupied that jar — did I figure out that my father was quite literally demonstrating how this disease runs through our heads.

Has my forgetting begun?

I called my dad’s neurologist. To find out if I was in the earliest stages of Alzheimer’s, he would have to look for proteins in my blood or spinal fluid and employ expensive neuroimaging tests. If he found any indication of onset, the only option would be experimental trials.

But documented confirmation of a diseased brain would break my still hopeful heart. I’d walk around with the scarlet letter “A” etched on the inside of my forehead — obstructing how I view every situation instead of the intermittent clouding I currently experience.

“You’re still grieving your father,” the doctor said at the end of our call. “Sadness and depression affect the memory, too. Let’s wait and see.”

It certainly didn’t help matters that two people at my father’s funeral made some insensitive remarks.

“Nancy, you must be scared to death.”

“Is it hard knowing the same thing probably will happen to you?”

Maybe the real question is what to do when the forgetting begins. My dad started taking 70 supplements a day in hopes of saving his mind. He begged me to kill him if he wound up like his father. He retired from his practice and spent all day in a chair doing puzzles. He stopped making new memories in an all-out effort to preserve the ones he already had.

Maybe his approach wasn’t the answer.

Just before his death — his brain a fraction of its former self — my father managed to offer up a final lesson. I was visiting him in the memory-care center when he got a strange look on his face. I figured it was gas. But then his eyes lit up and a big grin overtook him, and he looked right at me and said, “Funny how things turn out.”

An unforgettable moment?

I can only hope.

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Nancy Stearns Bercaw is a writer in Vermont. Her book, “Brain in a Jar: A Daughter’s Journey Through Her Father’s Memory,” will be published in April 2013 by Broadstone.

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Chinese Hackers Infiltrate New York Times Computers

SAN FRANCISCO — For the last four months, Chinese hackers have persistently attacked The New York Times, infiltrating its computer systems and getting passwords for its reporters and other employees.

The New York Times published an article in October about the wealth of the family of China's prime minister, Wen Jiabao, in both English and Chinese.

After surreptitiously tracking the intruders to study their movements and help erect better defenses to block them, The Times and computer security experts have expelled the attackers and kept them from breaking back in.

The timing of the attacks coincided with the reporting for a Times investigation, published online on Oct. 25, that found that the relatives of Wen Jiabao, China’s prime minister, had accumulated a fortune worth several billion dollars through business dealings.

Security experts hired by The Times to detect and block the computer attacks gathered digital evidence that Chinese hackers, using methods that some consultants have associated with the Chinese military in the past, breached The Times’s network. They broke into the e-mail accounts of its Shanghai bureau chief, David Barboza, who wrote the reports on Mr. Wen’s relatives, and Jim Yardley, The Times’s South Asia bureau chief in India, who previously worked as bureau chief in Beijing.

“Computer security experts found no evidence that sensitive e-mails or files from the reporting of our articles about the Wen family were accessed, downloaded or copied,” said Jill Abramson, executive editor of The Times.

The hackers tried to cloak the source of the attacks on The Times by first penetrating computers at United States universities and routing the attacks through them, said computer security experts at Mandiant, the company hired by The Times. This matches the subterfuge used in many other attacks that Mandiant has tracked to China.

The attackers first installed malware — malicious software — that enabled them to gain entry to any computer on The Times’s network. The malware was identified by computer security experts as a specific strain associated with computer attacks originating in China. More evidence of the source, experts said, is that the attacks started from the same university computers used by the Chinese military to attack United States military contractors in the past.

Security experts found evidence that the hackers stole the corporate passwords for every Times employee and used those to gain access to the personal computers of 53 employees, most of them outside The Times’s newsroom. Experts found no evidence that the intruders used the passwords to seek information that was not related to the reporting on the Wen family.

No customer data was stolen from The Times, security experts said.

Asked about evidence that indicated the hacking originated in China, and possibly with the military, China’s Ministry of National Defense said, “Chinese laws prohibit any action including hacking that damages Internet security.” It added that “to accuse the Chinese military of launching cyberattacks without solid proof is unprofessional and baseless.”

The attacks appear to be part of a broader computer espionage campaign against American news media companies that have reported on Chinese leaders and corporations.

Last year, Bloomberg News was targeted by Chinese hackers, and some employees’ computers were infected, according to a person with knowledge of the company’s internal investigation, after Bloomberg published an article on June 29 about the wealth accumulated by relatives of Xi Jinping, China’s vice president at the time. Mr. Xi became general secretary of the Communist Party in November and is expected to become president in March. Ty Trippet, a spokesman for Bloomberg, confirmed that hackers had made attempts but said that “no computer systems or computers were compromised.”

Signs of a Campaign

The mounting number of attacks that have been traced back to China suggest that hackers there are behind a far-reaching spying campaign aimed at an expanding set of targets including corporations, government agencies, activist groups and media organizations inside the United States. The intelligence-gathering campaign, foreign policy experts and computer security researchers say, is as much about trying to control China’s public image, domestically and abroad, as it is about stealing trade secrets.

This article has been revised to reflect the following correction:

Correction: January 31, 2013

An earlier version of this article misstated the year that the United States and Israel were said to have started a cyber attack that caused damage at Iran’s main nuclear enrichment plant, and the article misstated the specific type of attack. The attack was a computer worm, not a virus, and it started around 2008, not 2012.

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