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FEMA unveiling new Hub flood zone maps

Written By Unknown on Sabtu, 16 November 2013 | 16.30

Suffolk County residents will get a first look today at new flood zone maps that have prompted outcry over rising federal flood insurance costs and a deluge of lawsuits across the nation.

The Federal Emergency Management Agency today is unveiling the new maps that Boston officials say are likely to affect about 10,200 residential units and as many as 3,600 businesses.

"As a city, we're committed to accurately identifying the risks from coastal storm flooding and finding ways to support those home and business owners who will be impacted by the remapping of the flood zones," Mayor Thomas M. Menino said.

The city is working on hiring a consultant with the Boston Redevelopment Authority to review the maps to ensure their accuracy and applicability, he said.

The earliest the city of Boston expects to adopt a final flood hazard map is December 2014.

Sticker shock from the new federal mandate has kicked off a rising tide of opposition nationwide.

"These new rates will devastate many families and businesses throughout Massachusetts," said state Attorney General Martha Coakley, who yesterday joined a lawsuit against the new rates in Mississippi federal court. "In setting these new flood insurance rates, FEMA not only failed to evaluate their economic impact, but also failed to gather all the data required to ensure the new rates are accurate."


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Townhouse condo has roomy charm

A townhouse condo in Cambridge's Inman Square that's priced at nearly $1 million shows just how much has changed in the once-inexpensive neighborhood known for its funky, independently owned shops and eateries, including the iconic S&S Restaurant.

A new three-bedroom attached townhouse at 15 Oak Street, one of three available units carved out of an expansive 1854 house and attached barn, was initially listed last week for a jaw-dropping $999,000, but has just been reduced to $969,000. For that money, you get three floors with 2,550 square feet of living space, oak floors throughout, custom maple cabinetry, Bosch appliances, a huge master bedroom suite and nicely done ceramic tile bathrooms.

The original house and rear barn have been gut renovated, with new clapboard siding, roof and windows and all-new systems added, including gas-fired heat and central air conditioning.

Unit 1, the front townhouse, has a covered front porch and opens into an oak-floored open living/dining area, with a picture window and a light/fan over the dining space. Off to one side is a sunny sitting room, and opposite is a half bathroom with gray ceramic tile. An adjacent formal dining room gets lots of sun but is cut off from the adjacent kitchen by a full wall.

Reachable through the living room, the well-
appointed kitchen features 25 custom maple cabinets and Absolute black granite counters. Appliances are all Bosch stainless-steel, including a side-by-side refrigerator, a dishwasher and a five-burner gas stove. Right off the kitchen is a good-sized pantry closet.

The three bedrooms on the second floor are reachable via a charming winding wood staircase with new custom-designed wrought-iron railings.

The oak-floored master bedroom is huge, with a row of four front-facing windows and recessed lighting. There's a large area suitable for a master closet and a smaller closet as well. The stylish en-suite master bathroom has striated ceramic-tile floors and walls for a glass-doored walk-in shower and an Absolute black 
granite-topped vanity.

There are two other decent-sized oak-floored bedrooms on this floor, along with a second stylish full bathroom with striated ceramic tile floors and walls surrounding a tub and shower. The vanity has a beige granite top. There's a closet in the hallway with a washer/dryer hookup, and the developer will throw in a washer and dryer on closing, says real estate agent Adam Day.

A winding staircase leads to two more finished, oak-floored rooms with windows on the third floor under the eaves. One room would make a great home office, while the other, with low headroom due to the eaves, could work as a playroom.

The townhouse has all-new electrical and plumbing systems, and new gas-fired heating and central air-conditioning systems.

The unit comes with one parking space in the three-unit complex's driveway. But there is no other open yard space.

Broker: Adam Day of Realty Executives at 617-908-5653


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Hyundai shifts gears, turns heads

While I was photographing this car a man approached and asked what kind of car I had. Told a 2014 Hyundai Equus, he let out a whoop, a friendly cuss and exclaimed "A Hyundai!" and left chuckling about how much better the car was than the 1990s rust-buckets.

The cackling has stopped about paying nearly $70,000 for the Equus since its introduction in 2011 because this is one beautifully made luxury automobile.

Mercedes-Benz, Audi and Cadillac certainly aren't laughing anymore. These high-end carmakers are being challenged by the Koreans, with their imported European designers who are now making great looking, well-engineered and elegant machines while muscling in on market share.

This full-sized Ultimate — one of two trim levels available — with rear-wheel drive and a 5-liter V8 mated to an 8-speed transmission, is quiet, powerful and full of tech goodies including sunroof, navigation, a Blue Link integrated infotainment system, wonderfully comfortable leather seats and a rocking sound system. The 429-horsepower engine purrs on the highway and effortlessly accelerates through traffic. High-test gas is recommended but the car will run well on lower octane with only the miles per gallon dropping slightly from the estimated 15 mpg in the city and 23 mpg on the highway.

This car could easily assimilate into a livery fleet as rear-seat passengers get to enjoy individually controlled DVD screens, personal climate control, reclining seats and, in one model, a refrigerator. The trunk is massive, providing ample storage.

The refreshed interior is well laid out and trimmed with wood, brushed aluminum and leather. The infotainment center is run by a mouse-like controller, similar to that found in a Lexus, but not as intuitive. It was the only part of the car that left me underwhelmed. The newly designed dash has electronic display gauges and the center stack is smartened up, in­cluding a square analog clock.

The Equus may not have true European sport sedan handling but the sedan has three driving settings: normal, sport and snow. Sport was my preferred style, adjusting the car height, suspension and shift points to make cornering and performance just a bit tighter. Maneuvering the big machine is made easier by the fore and aft bird's-eye cameras that play out on the 12-inch video screen.

The exterior lines are simple and elegant. Also reworked for 2014, the simple five-fin horizontal grill is framed by LED headlights and running lights and Hyundai-­added fog lamps.

The catch? It's all included in the luxury budget $68,900 price tag.


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Gov offers boo$t to affordable housing

Written By Unknown on Jumat, 15 November 2013 | 16.31

State officials are touting a massive influx of state and federal money for low- and moderate-income housing as a boon to economic development across Massachusetts.

At the Putnam Square Apartments in Cambridge, Gov. Deval Patrick announced more than 
$73 million in state and federal funds and tax credits for housing, and signed a bond bill totaling 
$1.4 billion for further investments over the next five years.

Patrick said "inglamorous" spending on housing and related programs can make an area more attractive for private investment.

"Affordable housing serves as a platform for other opportunities," added Aaron Gornstein, undersecretary for the Department of Housing and Community Development.

The bill is largely comprised of housing investments, but also will underwrite programs such as affordable childcare.

"All of these things combine to make a strong quality of life," Patrick said.

One of the focuses of the investments will be to improve existing affordable housing, he said. At Putnam Square, one of two dozen projects slated to receive the $73 million, the funds will be used for a new boiler, a new elevator and improved windows.


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BRA sued over no-bid deal with Sox on Yawkey Way

A sweetheart land and air rights deal between the Boston Redevelopment Authority and the Boston Red Sox is now being attacked in court.

Everett businessman and attorney Joseph Marchese is suing the BRA over the recent $7.3 million agreement that awarded the Red Sox air rights for Green Monster seats over Lansdowne Street and an easement to shut down part of Yawkey Way for concessions so long as the team plays at Fenway Park.

Marchese said he had approached the BRA in May with his own offer to operate concessions on Yawkey Way under a proposed $3 million, 10-year deal, but the BRA never put the rights out for public bid.

"What we're asking the court to determine is whether or not that contract should have been put out to bid," Marchese said. A former restaurant owner, Marchese said he wanted to partner with local businesses to offer food on Yawkey Way in a "taste of Boston" atmosphere.

"We thought we'd put together a group and have something a little different — a little nicer," he said. "The people should have the opportunity to get the best price and the best operator. Myself and others are being deprived of submitting a bid, which may have been more than what the Red Sox offered. We're just looking for fairness."

BRA spokeswoman Susan Elsbree called Marchese's lawsuit "meritless."

The BRA has pinned the Red Sox deal on a state law that gives it power to protect against or eliminate "urban blight." But the agreement has come under fire from government watchdogs.

The state Inspector General's office criticized the BRA for negotiating behind closed doors without public input, and the Boston Finance Commission has labeled the deal financially irresponsible for essentially "giving away" rights to city-owned land.

Matthew Cahill, executive director of the Boston Finance Commission, said of the lawsuit, "I expect it probably won't be the only one."


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Foes: Revere casino would nix track

Suffolk Downs says it will have a new gaming partner before the end of the month to build a resort casino on the Revere portion of its property, but casino opponents are claiming that if that happens, East Boston's "No" vote means the racetrack can't continue to operate in Eastie if it is part of a Revere casino complex — potentially threatening hundreds of track jobs.

Matt Cameron, a lawyer volunteering with the group No Eastie Casino, said under state law, a "gaming establishment" includes "any other non-gaming structure related to the gaming area."

"Our interpretation of that definition is that a casino can't so much as plant flowers on the Boston side at this point," he said, adding that the law holds "an applicant for a gaming license who holds a live racing license ... shall maintain an existing racing facility on the premises."

"(Suffolk Downs) therefore cannot apply for a gaming license without also operating a horse track as a condition of the license, and that track can't be in Boston as part of a gaming establishment following East Boston's (no) vote," Cameron said.

"We see no other logical possibility than that they are prepared to destroy the track in order to save it."

But Chip Tuttle, Suffolk Downs' chief operating officer, countered it's still "our preference and our plan" to preserve racing.

"No, we won't have to move the track," Tuttle insisted, "But there's a strong likelihood we'll have to relocate the barn area, which takes up about 25 acres in Revere that we're now looking at for gaming development. We haven't reached any conclusions about where we'll put it."

If, however, Suffolk Downs' casino plan is shot down, Tuttle said, the track's future — and its 350 jobs — are "very much in jeopardy."


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Experts: Sales of statins to soar

Written By Unknown on Kamis, 14 November 2013 | 16.30

New guidelines for keeping cholesterol in check are likely to dramatically boost sales of statins — with a doubling to an estimated 33 million statin patients — but it won't cut into sales of non-statin cholesterol-controlling drugs, at least for now, experts say.

The American Heart Association's guidelines, updated this week for the first time in a decade, recommend that doctors, when prescribing statins, look at a full range of each patient's health and lifestyle issues, rather than using preset cholesterol levels.

The Pharma Letter, an industry publication, is predicting that statin sales should double thanks to the new guidelines. But analysts say most of the growth in sales will be in cheaper generics, with little benefit to the big pharmaceutical firms.

An investment research note from Cowen and Company said the firm will be "closely monitoring" how physicians prescribe statins and non-statins going forward.

But the boost in statins potentially could be a problem for non-statin drugs that are designed specifically to lower the amount of LDL cholesterol.

"I read the new guidelines as a negative for any drugs that aren't statins," Jon LeCroy, an analyst with MKM Partners, told Reuters. Still, LeCroy said the effect will not be immediate: "It will probably take another year before the Merck drugs feel it."

Merck's cholesterol-inhibiting drug Zetia, combined with a similar drug Vytorin, has annual sales of more than $4 billion, 10 percent of the company's revenue.

"We do not foresee a significant business impact to Merck based on these guidelines," said Merck spokeswoman Pam Eisele. "We continue to see strong need for our products in the market."


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Prof reacts to bitter taste left by Lululemon remarks

Remarks about the size of women's thighs by the founder of a red-hot yoga­wear brand are rubbing some women the wrong way.

And Salem State University professor Rebecca Hains is leading the call for lululemon athletica's Chip Wilson to apologize to women and girls and start making yoga pants larger than size 12.

In an interview last week about problems with lululemon's yoga pants "pilling," Wilson said that "some women's bodies just actually don't work" for the company's pants.

"It's really about the rubbing through the thighs and how much pressure is there over a period of time," he said.

Hains fired back with a petition at change.org/­lululemon demanding that Wilson "stop shaming women's bodies."

"In media culture, what researchers call extreme thinness — a thinness level­ that's actually not possible for most women — is valor­ized and promoted and fetishized," said Hains, an adver­tising and media studies professor whose research focuses on girls, media and body image. "I've also seen how lately girls and young women online have Web pages and discussions about wishing they had a 'thigh gap.' It's part of normal adult womanhood that thighs touch."

Lululemon did not respond to a Herald request for comment.

Wilson issued a YouTube video apology on Friday, but it was addressed to lululemon employees. Hains hopes the petition spurs him to do more, and show "he actually reflected on the issue and understands the problem."

"His brand is about providing products to women who want to be healthy," she said. "He has a responsibility to understand what healthy is."

Meanwhile, Candace Corlett, president of WSL Strategic Retail, sug­gested that Wilson just "stop talking."

"He should be the smart brains behind the business and should figure out a fabric that works well for all sizes," she said. "A company like lulu­lemon that prides itself on the technology behind their clothing has an obligation to make sure that the promise is delivered to all customers."


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Boeing machinists reject contract proposal

SEATTLE — Boeing machinists in the Northwest rejected a contentious contract proposal Wednesday that would have exchanged concessions for decades of secure jobs.

The International Association of Machinists District 751 announced Wednesday night that the proposal was rejected 67 percent of the votes.

Union members who called for a no vote did so to protest the Boeing Co.'s push to end a traditional pension plan and increase their health care costs. Workers would have received a $10,000 signing bonus if they approved the deal.

"We preserved something sacred by rejecting the Boeing proposal. We've held on to our pensions and that's big. At a time when financial planners are talking about a 'retirement crisis' in America, we have preserved a tool that will help our members retire with more comfort and dignity," said Tom Wroblewski, District 751 president in a statement.

Boeing had proposed the eight-year contract extension, saying it needs the deal to assemble the new 777X in Washington state. With the threat of those jobs going to another state, lawmakers rushed to approve $8.7 billion in tax breaks last week.

"...without the terms of this contract extension, we're left with no choice but to open the process competitively and pursue all options for the 777X," Boeing said in a statement.

In a late night press conference, Gov. Jay Inslee said Washington state could have won the production of the plane without competition.

"This is a tough night for the state of Washington," Inslee said. "We could have had a big win tonight. We could have grabbed the brass ring for this airplane. But I want to say this, what we were unable to finish tonight, means that we are starting a new chapter of competition for this airplane."

Inslee said that Boeing officials assured him that Washington state was still a contender.

Inslee added that the state would still have a strong showing, citing the recent tax incentive package that was quickly passed by the Legislature, a potential transportation package the governor still hopes could be taken up in coming weeks, as well as the "best aerospace workers in the world."

"The fact is this, if you want to build reliably, with the highest quality in the world, on time, the state of Washington is the place to do it," Inslee said.

Throughout Wednesday, the mood was tense at the union hall in Seattle where the votes were tallied.

Dian Lord, a toolmaker at Boeing's facility in Renton who is nearing retirement, said Wednesday morning she believed the company was extorting its workers by pushing a swift contract vote while threatening to place 777X operations elsewhere if machinists don't oblige. Still, Lord said she felt intense pressure to vote for the contract, especially considering that it could impact a variety of other Boeing workers and vendors should the company move elsewhere.

"I'm very conflicted," Lord said.

Political leaders, including many Democrats who are closely aligned with unionized workers, declined in recent days to encourage machinists how to vote but asked them to consider the broader impact on jobs and future generations. IAM leaders issued a similar message, with Wroblewski saying the vote is about 30 years of jobs for the region.

"This is an opportunity we will never see again to secure thousands of good-paying jobs in the State of Washington," Wroblewski wrote in a message to members before the vote.

Ray Conner, CEO of Boeing Commercial Airplanes, said earlier this week that the company was not bluffing in its message that the 777X line could be placed elsewhere. He said the company prefers to stay in the Puget Sound and that a positive vote by the union makes that decision easy.

Along with extending tax breaks to 2040, lawmakers this past weekend also approved millions of dollars for training programs for aerospace workers. Lawmakers have also said that Boeing supports the development of a large transportation package, and the Legislature is still exploring a plan valued at about $10 billion.

____

Associated Press writers Rachel La Corte in Olympia, Wash., and Manuel Valdes in Seattle contributed to this report.


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Wal-Mart steps up competition for holiday shopping

Written By Unknown on Selasa, 12 November 2013 | 16.30

As more stores push for Thanksgiving shoppers, Wal-Mart Stores Inc. is stepping up its game for the official kickoff to the holiday shopping season.

The world's largest retailer said Tuesday that it will start to offer its holiday blockbuster deals at 6 p.m. on Thanksgiving at its stores, two hours earlier than last year. It will stagger holiday deals throughout the night and into "Black Friday" — the day that's traditionally the start of the holiday shopping season.

The company will increase its stock of TVs by 65 percent and double the number of tablets for sale that weekend, while promising sharper discounts. It's also bulking up the list of guaranteed popular items that it will sell in designated sections of its store to 21, from just three last year.

Wal-Mart is responding to what's expected to be a fiercely competitive holiday shopping season, the busiest time of the year for retailers. The Friday after Thanksgiving has traditionally been the official kickoff to the period, but in the last few years, that start has increasingly crept into Thanksgiving as stores realize they need to be the first ones to grab shoppers' dollars. This year, stores including Macy's Inc., J.C. Penney Co. and Kohl's Corp. are opening for the first time on Thanksgiving evening.

Best Buy Co. announced that it was opening at 6 p.m. on Thanksgiving, earlier than last year's midnight opening. Toys R Us said that it will open at 5 p.m. on the holiday, three hours earlier than last year.

Most of Wal-Mart's 4,000 U.S. namesake stores are already open 24 hours year-round. But it's now concentrating the holiday deals on Thanksgiving.

During a media call Monday, Duncan McNaughton, executive vice president and chief merchandising and marketing officer at Wal-Mart's U.S. namesake division, said the discounter carefully studied the competitive landscape when it decided to start the deals earlier at 6 p.m. Thanksgiving.

"Everyone's moved up this year so it will be a new dynamic," said McNaughton.

For online shoppers, Wal-Mart will be offering special deals starting Thanksgiving morning, some of which will be the same as those offered at the sales events at the stores later in the evening.

The stakes are high for retailers since the holiday season accounts for up to 40 percent of their annual revenue. The National Retail Federation, the nation's largest retail trade group, expects an increase of 3.9 percent to $602.1 billion in holiday sales.

There's also more pressure on retailers this year because the period between Thanksgiving and Christmas is six days shorter than in 2012.


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Asian stocks mostly up after Dow hits record high

SEOUL, South Korea — Asian stock markets mostly traded higher Tuesday after the Dow Jones industrial average hit another all-time high.

Tokyo's Nikkei jumped 1.9 percent to 14,534.91 and South Korea's Kospi added 0.7 percent to 1,991.26. China's Shanghai Composite gained 0.5 percent to 2,119.04. Stocks in Taiwan, Singapore, Thailand and India also rose.

The PSE Composite in Manila climbed 0.4 percent to 6,289.67 after sinking the day before. The Philippines is grappling with the aftermath of Typhoon Haiyan. Thousands are believed dead and shattered communications and transportation links are hampering recovery efforts.

Bucking the uptrend, Hong Kong's Hang Seng shed 0.2 percent to 23,028.63 and Australia's S&P/ASX 200 edged down 0.1 percent to 5,393.10.

Most Asian markets got a boost from upbeat U.S. economic figures Friday including a strong U.S. jobs report for October, even though it raised the prospect the Federal Reserve will reduce monetary stimulus that has buoyed stocks. The world's largest economy added 204,000 jobs last month, trumping market expectations for 125,000 jobs.

On Monday, the Dow rose 0.1 percent to a new high of 15,783.10 amid thin trading volume. The Standard & Poor's 500 gained 0.1 percent to 1,771.89. That is close to its own record high reached on Oct. 29. The Nasdaq composite rose less than 0.1 percent to 3,919.79.

With an economic planning meeting of China's communist leaders set to wrap up later in the day, investors are waiting to see if China's new leadership announces reform plans or a change in the country's growth target.

"The changes that will come out of the secret location in Beijing are expected to be some of the most liberal economic changes in post revolution China," Evan Lucas, a market strategist at IG, said in a report.

Growth in the world's No. 2 economy sank to a two-decade low of 7.5 percent in second quarter of this year, putting pressure on Beijing to revamp state dominated industry.

Investors are also awaiting the U.S. Senate Banking Committee's confirmation hearing for Janet Yellen as the new Federal Reserve chief on Thursday for new clues about when the Fed could begin to unwind its monetary stimulus.

In energy markets, benchmark crude for December delivery was down 26 cents to $94.88 in electronic trading on the New York Mercantile Exchange. The contract rose 54 cents to $95.14 on Monday.

The euro fell to $1.3396 from $1.3401 late Monday. The dollar rose to 99.51 yen from 99.16 yen.


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NY ex-Madoff worker kept mouth shut as fraud grew

NEW YORK — In the many years he spent as a trader at Bernard L. Madoff Investment Securities LLC, David Kugel learned that investments that Madoff claimed to be making for clients were fiction.

Kugel, 68, knew that because he was instrumental in concocting the phony trades. But he always kept his mouth shut.

Madoff "was my boss," he testified at the trial of five former Madoff employees in federal court in Manhattan. "If he asked me to do something, I gave it to him. I didn't question him. ... I believed him."

Prosecutors are seeking to use Kugel's testimony — the first by a cooperator in the Madoff investigation — to show how he and other insiders purposely stayed blindly loyal to Madoff while becoming wealthy off his fraud.

But the testimony also suggested some complexities in the don't-ask-don't-tell environment: By Kugel's account, there was a belief that Madoff was working his investment magic in ways he wasn't revealing.

"I always thought he invested in shopping centers, foreign currencies and other ventures," Kugel testified. "A Ponzi scheme? ... I didn't think he was doing that."

When asked where all the money was going, Kugel told jurors, "I thought it was being invested. I didn't know in exactly what."

The world now knows that what Madoff was paying out as profits was actually the cash flow from new investors — the largest Ponzi scheme in history. By the time fraud was revealed in 2008, he admitted the nearly $68 billion he claimed existed in accounts was actually only a few hundred million dollars.

The collapse of Madoff's private investment business ended up costing clients nearly $20 billion. A court-appointed trustee has recovered much of the money by forcing those customers who received big payouts from Madoff to return the funds.

The victims included some big names and influential people who were Madoff visitors: During Kugel's week-long testimony, prosecutors displayed a thank you note the firm had received from Sandy Koufax. During testimony by another former Madoff employee, Eleanor Squillari, it was revealed that author Tom Clancy visited the offices when he was writing a book about automated trading. She said she saw Sen. Chuck Schumer, D-N.Y., visit, and the late U.S. Sen. Frank Lautenberg, D-N.J., was a customer.

Prosecutors have described the defendants as "necessary players" in Madoff's fraud.

They allege that Annette Bongiorno and account manager JoAnn Crupi used old stock tables to fabricate account statements and other fake records intended to dupe clients by showing steady returns even during economic downturns; that computer programmers Jerome O'Hara and George Perez developed a software program that automated the scheme; and that Daniel Bonventre, director of operations for investments, kept three separate of books on the business designed to fool the Securities and Exchange Commission, banks or anyone else who examined them.

The defendants also rewarded themselves with tens of millions of dollars in salary and bonuses from a "slush fund" of stolen money, including $2.5 million for a beach house for Crupi as the Ponzi scheme was falling apart, prosecutors say.

While the defendants have denied the charges, Kugel and four other former employees, including his son, have pleaded guilty and agreed to cooperate in the case. The trial was scheduled to resume Tuesday.

Kugel, who worked with Madoff for 36 years, testified at a trial expected to last months that he spent over an hour a week from the mid-1970s to the mid-1990s fabricating trades that he gave to Bongiorno and later Crupi.

Madoff "asked me to do the math to calculate the returns," he said. Asked by a prosecutor whether his boss was good at math, the witness responded, "In some aspects, yes, in some aspects, no. He had trouble with long division."

Kugel described the firm as "a friendly place to work" and prosecutors showed photographs of other employees at Kugel family social functions. But at times he looked upset as he recalled assuring his family that investing with Madoff was safe. And he had trouble blaming Madoff.

"I looked up to him. I admired him. He was my mentor and I believed in him. ... I loved working there," he said. "I'm mad at myself for not realizing certain things and doing certain things."

When the scheme was exposed, he testified, the phony account statements showed that his daughter lost her $500,000 account; his son an account worth $600,000 to $700,000; his mother over $500,000; his brother and sister more than $2 million in a combined account and he lost more than $20 million.

Kugel testified that at various points Madoff had indicated, in truth, the returns were coming from secret investments overseas.

"Did you ever just ask him, 'Why don't you just say that?'" a prosecutor asked him.

"I didn't," he responded.


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More oil and gas drillers turn to water recycling

Written By Unknown on Senin, 11 November 2013 | 16.31

MIDLAND, Texas — When the rain stopped falling in Texas, the prairie grass yellowed, the soil cracked and oil drillers were confronted with a crisis. After years of easy access to cheap, plentiful water, the land they prized for its vast petroleum wealth was starting to dry up.

At first, the drought that took hold a few years ago seemed to threaten the economic boom that arose from hydraulic fracturing, a drilling method that uses huge amounts of high-pressure, chemical-laced water to free oil and natural gas trapped deep in underground rocks. But drillers have found a way to get by with much less water: They recycle it using systems that not long ago they may have eyed with suspicion.

"This was a dramatic change to the practices that the industry used for many, many years," said Paul Schlosberg, co-founder and chief financial officer of Water Rescue Services, the company that runs recycling services for Fasken Oil and Ranch in West Texas, which is now 90 percent toward its goal of not using any freshwater for fracturing, or "fracking," as it is commonly known.

Before the drought, "water was prevalent, it was cheap and it was taken for granted," he added.

Just a few years ago, many drillers suspected water recyclers were trying to sell an unproven idea designed to drain money from multimillion dollar businesses. Now the system is helping drillers use less freshwater and dispose of less wastewater. Recycling is rapidly becoming a popular and economic solution for a burgeoning industry.

The change is happening so swiftly that regulators are racing to keep up and in some cases taking steps to make it easier for drillers to recycle.

Fracking operations require millions of gallons of relatively clean water. Each time a well is drilled, about 20 percent of the water eventually remerges, but it is jam-packed with contaminants from drilling chemicals and heavy metals picked up when the water hits oil. Until recently, that water was dumped as waste, often into injection wells deep underground.

Many companies, each using slightly different technology and methods, are offering ways of reusing that water. Some, like Schlosberg's Water Rescue Services, statically charge the water to allow particles of waste to separate and fall to the bottom. Those solids are taken to a landfill, leaving more than 95 percent of the water clean enough to be reused for fracking.

Other operators, such as Walton, Ky.-based Pure Stream, offer two technologies — one that cleans water so it can be reused in the oil patch and another more expensive system that renders it clean enough to be dumped into rivers and lakes or used in agriculture.

Todd Ennenga, Pure Stream's vice president of business development, said interest in the technology has doubled in the past year alone.

Some others tout methods that leave behind no solid waste at all, eliminating the need to transport anything to a landfill. A few companies insist they can frack without any water.

"It's really taken off," Ennenga said of recycling. Two years ago, he said, most operators were still vetting the different systems. These days, they have a plan and are saying, "We need to do this right now."

In Texas, the fracking boom began around 2009, just as the state fell into years of drought. Especially hard-hit were South and West Texas, where rock formations have proven to be rich sources of oil and gas. Residents who were told to cut back on lawn watering and car washing grumbled about drillers hogging water supplies.

Similar issues have arisen in arid parts of Wyoming, North Dakota, New Mexico and Colorado.

Farther east, states such as Pennsylvania, Ohio and West Virginia, face different issues. There, water is relatively plentiful but disposal of wastewater has been bureaucratically difficult and expensive, while the sites that can collect it are scarce.

States are scrambling to draft regulations for the new recycling systems.

In Texas, requests for recycling permits rose from fewer than two a year in 2011 to 30 approved applications in fiscal year 2012. So the Texas Railroad Commission, the agency that oversees oil and gas operations, revamped the rules in March, eliminating the need for drillers to get a permit if they recycle on their own lease or on a third-party's property.

Commission spokeswoman Ramona Nye said in an email that the new rules are designed to "help operators enhance their water conservation efforts" and encourage recycling.

In Ohio, disposing of drilling wastewater has hit some obstacles. Activity at a deep injection well near Youngstown was tied to one in a series of earthquakes, and a former officer of the firm that ran the operation has been indicted in connection with a separate dumping incident that allegedly violated the Clean Water Act. That led to a temporary moratorium on disposal sites in that region, stricter rules and an EPA review.

Pennsylvania, meanwhile, has few dumping sites, and operators once paid large sums to haul wastewater to Ohio. Recycling has now become cheaper, and transports to Ohio have dwindled.

Back in Texas, Fasken Oil and Ranch believes it solved many of its early problems with the containment pools, tanks, pipelines and trailers. Within six months, the company expects to reach its goal of using no freshwater in its fracking operations — a feat made possible by combining recycled water with briny water drawn from an aquifer and treated.

Then Fasken will start applying the same methods at drilling sites in South Texas and New Mexico, Manager Jimmy Davis said.

"We face the same problems," Davis said. "There's not an abundance of freshwater."

___

Associated Press writer Julie Carr Smyth contributed to this report from Columbus, Ohio.

___

Plushnick-Masti can be reached on Twitter at https://twitter.com/RamitMastiAP


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Calif. company recalls prepackaged salad, sandwich

RICHMOND, Calif. — More than 90 tons of ready-to-eat salads and sandwiches by a California catering company are being recalled after 26 people in three states were sickened by a bacterial strain of E. coli linked to its products, federal health officials said Sunday.

Richmond-based Glass Onion Catering are recalling approximately 181,620 pounds of salads and sandwich wraps containing cooked chicken and ham, the USDA's Food Safety and Inspection Service said.

The products were produced between Sept. 23 and Nov. 6, and were shipped to distribution centers in California, Nevada, Arizona, New Mexico, Oregon, Utah, Washington and Texas. The Contra Costa Times reports (http://bit.ly/1bqp5Z1) the company supplies food to Trader Joe's, Super Fresh Goods and Delish.

The FSIS said it began monitoring a cluster of illnesses involving E. coli O157:H7 on Oct. 29 and then was notified by the U.S. Food and Drug Administration that California authorities had reported people sickened from eating pre-packaged salads with grilled chicken.

In Washington, three people who were sickened with the bacterium told investigators they ate ready-to-eat salads from Trader Joe's, said Tim Church, a spokesman with the state's Department of Health.

The FSIS says the bacteria can cause dehydration, bloody diarrhea and abdominal cramps two to eight days after being exposed to it. While most people recover within a week, some develop kidney failure.

The Food and Drug Administration has a full list of products being recalled on its website at: www.fda.gov/Food/RecallsOutbreaksEmergencies/Recalls/default.htm


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NY knish factory fire leads to nationwide shortage

COPIAGUE, N.Y. — A fire at a factory billed as the world's biggest maker of knishes has created nationwide shock and oy for those who can't seem to find the Jewish treats anywhere.

Kvetching has been going on at delis, diners, food carts and groceries since the six-week-long shortage began, but lovers of the square fried doughy pillows of pureed potatoes may not have to go without much longer. The factory promises an end to the knish crunch by Thanksgiving, which coincides with the start of Hanukkah.

"Our customers ... are calling us saying they are literally searching supermarkets and stores and they're all asking when we'll be back," Stacey Ziskin Gabay, one of the owners of the 92-year-old Gabila's Knishes, which sells about 15 million knishes a year.

A fire Sept. 24 at the Gabila's plant in Copiague, Long Island, damaged the machinery that makes the company's biggest seller — "The Original Coney Island Square Knish," which also come filled with kasha or spinach.

Gabila's, which also makes matzoh balls, blintzes and latkas, sells the knishes both online and at retail outlets around the country, with New York, Florida and California leading the sales.

"For the last month I haven't had any knishes — my heart is broken," said Carol Anfuso, a native New Yorker who has been without a knish to nosh since the BJ's Wholesale store near her Atlanta home suddenly stopped stocking them.

But Anfuso didn't learn of the shortage until she visited her sister for lunch at the Pastrami King restaurant in Merrick, Long Island, and found that it was out of stock, too.

Pastrami King owner Joe Yamali said he normally sells about 2,000 knishes a month.

"It brings you back to your childhood and they're just so delicious," Yamali said. "Gabila is square and fried. You bite into it and the potato oozes out. It's very good."

Katz's Delicatessen, the 125-year-old landmark on Manhattan's Lower East Side, ordinarily sells about 6,000 knishes a month.

"I usually get four to take home," grumbled Brooklyn native Forrest Gurl. "Their crunchiness, their hard corners, the mustard and sauerkraut you put on them. You can't beat a knish."

Like most places, the round, baked version is still available. But Gurl harumphed a familiar sentiment of knish devotees: "Who gets round knishes?"

Jesse Hochberg, a retired IT employee, didn't know there was a shortage until he got to the Katz's counter.

"I miss them," he said. "It's something I grew up with. I like the taste, sliced with mustard. ... I always look for them, and I haven't seen them recently."

Katz's chef Kenny Kohn has grown weary of explaining the shortage to customers. Along with the pastrami sandwiches, he serves up a typical New York attitude to the ongoing complaints.

"Get over it! Get a life! It's just a knish."

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Dobnik reported from New York.


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