Thursday, November 11, 2010

Strangulation Death of a Child Prompts Recall of Roman Shades, Roll-Up Blinds, and Roller Blinds by Hanover Direct/Domestications

WASHINGTON, Nov. 10, 2010 - The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the following consumer product. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of product: Roman shades, roll-up blinds and roller blinds

Units: About 495,000 Roman shades and 28,500 roller/roll-up blinds (about 90,000 Roman shades were recalled in October 2009).

Importer: Hanover Direct Inc., (also known as Domestications, The Company Store, and Company Kids) of Weehawken, N.J.

Hazards:

Roman Shades: Strangulations can occur when a child places his/her neck between the exposed inner cord and the fabric on the backside of the blind or when a child pulls the cord out and wraps it around his/her neck.

Roll-up Blinds: Strangulations can occur if the lifting loops slide off the side of the blind and a child's neck becomes entangled on the free-standing loop or if a child places his/her neck between the lifting loop and the roll-up blind material.

R oller Blinds: Strangulations can occur if the blind's continuous loop bead chain or continuous loop pull cord is not attached to the wall or the floor with the tension device provided and a child's neck becomes entangled in the free-standing loop.

Incidents/Injuries:

Roman Shades: CPSC received a new report of the death of a 22-month-old boy in Cedar Falls, Iowa who was found hanging by his neck from the outer pull cords of a Roman shade in May 2010. The outer pull cords were knotted at the bottom. He was rescued by his father but died later in the hospital. In March 2008, a 2-year-old boy from Ocean View, Delaware climbed up on a toy chest to look out of a window and became entangled in the inner cords of a Roman shade. His parents removed the cord. No permanent injuries were sustained. This incident prompted a previous recall.

Roll-Up Blinds: None reported.

Roller Blinds: None reported.

Description: This recall involves all styles of Roman shades with inner cords, all styles of

roll-up blinds, and roller blinds that do not have a tension device. A tension device is intended to be attached to the continuous loop bead chain or continuous loop pull cord and installed into the wall or floor.

Sold at: Hanover Direct/Domestications, the Company Store/Company Kids; online at www.domestications.com and www.thecompanystore.com; and through catalog sales nationwide from January 1996 through October 2009 for between $20 and $579.

Manufactured in: China, United States, and other countries

Remedy: Consumers should immediately stop using all Roman shades with inner cords, all roll-up blinds, and all roller blinds that do not have a tension device, and contact the Window Covering Safety Council at (800) 506-4636 anytime for free repair kits or visit www.windowcoverings.org. Consumers who have roller blinds with a tension device should make sure the tension device is attached to the continuous loop bead chain or continuous loop pull cord and is installed into the wall or floor.

Consumer Contact: For additional information, contact Domestications or Hanover at (800) 453-1106 between 9 a.m. and 6 p.m. ET seven days a week, or visit the firm's websites at www.domestications.com or www.hanoverdirect.com.

Wednesday, November 10, 2010

Settlement of a Suit against Wal-Mart in California

OAKLAND, Calif., Nov. 10, 2010 - The United States District Court for the Northern District of California, Judge Saundra B. Armstrong, has granted final approval to the settlement of a wage and hour class action suit against Wal-Mart in California, In re Wal-Mart Stores Wage and Hour Litigation, Case No. 02069SBA (Smith Case No. C-06-02069SBA and Ballard Case No. C-06-05411SBA). The settlement, which provides for a payment of between $43 million and $86 million (including claims, costs, and attorneys' fees), concludes more than four years of litigation concerning the payment of wages to California associates. In addition, as part of the settlement, Wal-Mart has agreed to continue to maintain electronic systems that will protect the rights of workers.

"This settlement represents an extraordinary result for the members of this class, with up to $86 million being paid by Wal-Mart to resolve the claim that class members were underpaid approximately $12 million in vacation and other wages when their employment with Wal-Mart ended. The potential additional $74 million payment represents interest and statutorily imposed expenses that Wal-Mart may have faced had the matter proceeded to trial," said Louis Marlin of Marlin & Saltzman, one of the counsel for the class. "The case has been hard fought since it was filed four years ago, with Wal-Mart's lawyers presenting a vigorous defense. Marlin & Saltzman, along with our co-counsel, including Peter Hart, have fought hard for the class members."

"Our policy is to pay our associates in an accurate and timely manner. Our communications, processes and systems will help ensure that's the case," said Greg Rossiter, Wal-Mart spokesperson.

Tuesday, November 9, 2010

Caterpillar Announces Program to Offer Product Financing Options to Customers in India

The company and its dealers in India—TIPL and GMMCO— will work with leading banks and finance companies to support the sale of Caterpillar machinery and power systems to customers in India.


DELHI, India, Nov. 9, 2010 - As part of its commitment to enhance customer support, Caterpillar Inc. (NYSE: CAT) subsidiary Caterpillar India Private Limited announced today it has entered into agreements with its dealers in India and with key banks and Non Banking Financial Company's (NBFC's). The collaboration agreements will give customers in India new finance options for the purchase of Caterpillar machinery and power systems, which are being used to fuel growth and a wide range of development in India.

Caterpillar India and Indian Cat dealers GMMCO and TIPL have entered into agreements with the following key infrastructure focused banks – ICICI, HDFC Bank, NBFC's [Non Banking Finance Company] Tata Capital Services and Magma to support the sale of the full range of Caterpillar products sold in India.

"We are very pleased to have facilitated Caterpillar India's alliances with these leading banks and NBFC's in India," said Kent Adams, Caterpillar vice president with responsibility for Caterpillar Financial Services Corporation.

Caterpillar India and its dealers have signed Memorandums of Understanding with ICICI, HDFC Bank, Tata Capital and Magma whereby the Caterpillar dealers would apprise prospective Caterpillar customers about the financial solutions and loan advantages being offered by the Preferred Financiers to customers acquiring Caterpillar machinery and engines.

"This is another step that Caterpillar is taking to deepen its support of our customers in India," said Kevin Thieneman, Managing Director – Caterpillar Asia. "This program recognizes the unique demands of the marketplace in India, and will be tailored to give our customers the level of financing support they would expect from Caterpillar, the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives."

The Preferred Financiers will collaborate with Caterpillar India and its dealers to offer enhanced quote and credit approval turnaround, allied with competitive financial solutions to Caterpillar customers. This tie up will cover all eight dealer territories and benefit from the extensive network and coverage these selected Preferred Financiers provide across India.

Tuesday, October 19, 2010

Parents Bring Federal Lawsuit After Tainted Baby Formula Injures Newborn

CHICAGO, Oct. 19 - A class action lawsuit alleging deceptive business practices has been filed against Abbott Laboratories over claims that the pharmaceutical giant sold millions of tubs of infant powder formula that was contaminated with beetles and beetle larvae.

The lawsuit, which was brought in federal court in Chicago, was filed on behalf of Maria C. Kiely, a mother of a newborn baby boy. The suit alleges that Abbott knew that its baby formula was tainted for at least six days prior to announcing it to the public. As a result, the suit claims that the named plaintiff's son, like thousands of babies throughout the country, suffered gastrointestinal health issues as a result of ingesting the tainted formula.

The lawsuit is brought by Jay Edelson and Rafey S. Balabanian of Edelson McGuire, LLC. According to managing partner, Jay Edelson, this case seems especially problematic for Abbott. "What we have found is that certain companies handle product recalls in an upfront and transparent way. We believe that we can prove that Abbott did the opposite and sat on information while babies got sick."
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Edelson McGuire has had numerous high-profile product recall lawsuits, including a $30 million settlement involving the Thomas the Tank lead paint recalls.

About Edelson McGuire: Edelson McGuire, LLC is a plaintiff's class action law firm with attorneys in Illinois, New York, California, and Florida. The firm's attorneys have been recognized as leaders in class action law by state and federal legislatures, national and international media groups, the courts and their peers. They have testified before the United States Senate on class action issues and have repeatedly been asked to work on federal and state legislation and policy issues involving banking, cellular telephony and consumer privacy. Their attorneys have appeared on hundreds of national and international television and radio programs to discuss their cases and class action and consumer protection issues more generally. Their class settlements are collectively worth over one billion dollars and have changed the consumer protection policies of numerous industries.

Wednesday, October 6, 2010

Beware the Energy-Sucking Vampires in Your Home

CHICAGO, Oct. 5 - They lurk in the dark in your kitchen, your living room and even your bedroom while you sleep. They look like little glowing red fangs, on televisions, game consoles and other household electronics and appliances. You may know them as standby lights, but ComEd wants you to be aware that these lights are pesky little energy stealers also known as power vampires.

Here's a scary thought: power vampires draw small amounts of electricity whether your electronic device is on or off. According to the U.S. Department of Energy, the average U.S. household spends $100 per year to power electronics and appliances while they are off or in standby mode.

"Many of the most common home electronics, such as computers and some kitchen appliances, are the biggest energy guzzlers," said Val Jensen, vice president, Marketing and Environmental Programs, ComEd. "These electronics waste energy when they are left plugged in and can add up to 10 percent to your monthly electric bill."

ComEd wants to ensure its customers are aware of power vampires and how they can slay them to better manage their energy usage and save money.

This fall, the utility will feature a series of advertisements warning customers of these power hungry creatures. In addition, from Oct. 15-31, ComEd customers can visit the Brookfield and Lincoln Park zoos to peek inside the company's "shadowboxes," which will reveal tips on how to banish these electric-sucking nightmares from their homes forever:

Use a power strip with an on/off switch to fully power down home electronics while in standby mode.
Use a power strip for multiple battery chargers so it can be easily switched off when not actively charging.
Unplug or switch off all nonessential devices when preparing to travel out of town.
Unplug your charger for your cordless phone, portable music play or other portable device after its recharged.
Plug home electronics, such as TVs and DVD players, into power strips and turn the power strips off when the equipment is not in use (TVs and DVDs in standby mode still use several watts of power). However, while unplugging DVRs can save money, they will not be able to record programs while turned off and program scheduling may need to be reset when turned back on.
Turn off your computer and monitor when not in use. Alternatively, set to hibernation or sleep mode rather than using screen savers, which do not save as much energy.
Look for the ENERGY STAR® label on home appliances, electronics and other products. ENERGY STAR® products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.

Realtors Report Home Prices On Staten Island Are Climbing

Survey of June, July and August reveals 'Days on Market' dropped nearly 4 percent as compared to the same period a year ago

STATEN ISLAND, N.Y., Oct. 5 - The cost of buying a home on Staten Island is inching up.

The borough's home prices rose over the summer, when compared to the same period last year, according to the latest report from the Staten Island Board of Realtors (SIBOR).

The median price of a home in the borough for the rolling average of June, July and August was $390,000, which was 5.4 percent higher than the same period in 2009.

The report additionally indicates that the number of homes sold on the Island was almost unchanged, but that the "Days on Market" went down nearly 4 percent.

"While this activity is still very much a remnant of the 2010 federal tax credit that expired in April, continued record low mortgage rates, that surely won't last forever, should signal to buyers and sellers that the time to complete a transaction for qualified buyers and motivated sellers is now," said Sandy Krueger, CEO of SIBOR.

According to SIBOR's year-to-date statistics, the Island experienced a 9.2 percent increase in home sales this year in comparison to 2009.

"There is no way to time a market. The best time to buy is when you find the property that best meets your needs," Krueger said.

Recent lender disclosures in the foreclosure environment and changing mortgage guidelines make attempts at timing ever more difficult, he added.

"What is most valuable today for buyers and sellers is someone who can interpret the volumes of changing statistics and guidelines and provide a roadmap to a successful transaction."

The statewide housing market also experienced strong median price growth compared to August 2009, according to the preliminary single-family sales data accumulated by the New York State Association of REALTORS.

The state's August 2010 median sales price of $240,000 represents an increase of 9.1 percent compared to the July 2010 median of $220,000, and an increase of 20 percent from the August 2009 median of $200,000.

Sales within the state increased in August from July by 3.7 percent, but remained 30-percent below the August 2009 total.

Thursday, September 30, 2010

Forgotten Women Targeted with Ground Breaking Campaign

LONDON, Sept. 29 - Debenhams breaks yet another fashion industry taboo, becoming the first retailer to launch a campaign featuring models in their 40s, 50s and 60s to target 'forgotten women' rather than using models under 25 who usually dominate high fashion and high street imagery.

The campaign, which the retailer is calling 'The Style List' is an industry first and sees Debenhams joining forces with fashion commentator and diversity campaigner Caryn Franklin.

The Style List will give ongoing solutions, advice and guidance on how women 40+ can achieve any desired look, whether it be evening, day or weekend wear. This will be delivered in stores, online and through photography used by Debenhams.

There are three looks highlighted in the launch campaign; Power Dress, All Woman and Casual Cool. Windows will convey each look along with tips in how to make them work for everyone, whatever their age, from expert Caryn.

"The days are long gone when hitting 50 meant you were relegated to dowdy cardigans and baggy knits. This group of women aren't communicated to by the fashion press and retailers with models of their own age. We wanted to be the first to put this right," said Michael Sharp, Debenhams deputy chief executive.

"Today's 40 + women can easily achieve fashionability and enjoy trends traditionally worn by consumers half their age. Through The Style List we will be the only retailer on the high street showing them how," added Mr. Sharp.

Caryn Franklin, fashion commentator and campaigner for diversity, said: "I wanted to work with a retailer who would acknowledge the lack of good fashion imagery aimed at middle aged and older women and was ready to change things.

"It's a business savvy move -- Debenhams have great designer product and an excellent personal shopping service, so they are perfectly placed.

"It's been really fulfilling to create shots that celebrate the wonder of getting older. It's important to challenge what we see in our media with a broader reflection of beauty. Enjoy the magic of these women, their confidence, their attitudes and their allure. These wonderful faces express the joy of getting older -- not something we see enough of."

The ground breaking imagery features fashion advice at street level, along with mannequins and product in a how-to window display to launch The Style List.

Debenhams will shortly begin a nationwide search for a fourth face to join The Style List model line-up later this autumn.

Through its use of photography both online, in windows and in advertising, Debenhams is the UK's only retailer to commit to reflecting its diverse customer base through representative imagery.

The move comes as a next step for Debenhams, who have been trailblazing inclusivity campaigns of late, carrying out activity involving national window campaigns featuring disabled model Shannon Murray, un-airbrushed swim models, size 16 mannequins and plus size and petite models -- all since the start of 2010.

The retailer hopes the launch of The Style List will alert other retailers to the needs and wants of this seemingly overlooked market of fashion savvy shoppers, and spur them to follow suit.

The images can be seen in Debenhams' Oxford Street windows and online at Debenhams.com with further activity scheduled in all stores across the UK and Ireland.

Webster University Celebrates Early Completion of $100,000 Walker Challenge

ST. LOUIS, Sept. 29 - Webster University has exceeded its goal of matching a $100,000 challenge gift from George Herbert Walker III for the George Herbert Walker III International Study Award. Through a challenge gift made by Ambassador Walker, Webster University has raised more than $230,000 to benefit business students who aspire to add an international component to their global educational experience but lack the necessary financial resources.

"We are thrilled that Ambassador Walker has made available funds to allow more students from the George Herbert Walker School of Business & Technology to have an international study experience," said Dr. Elizabeth (Beth) J. Stroble, president of Webster University. "Support of the Walker Challenge from Webster alumni and friends has been overwhelming. Exceeding our goal three months before the challenge ended underscores our community's outpouring of support for Ambassador Walker and his steadfast endorsement of Webster University's exceptional model of global education."

Dr. Benjamin Ola. Akande, dean of the George Herbert Walker School of Business & Technology commented, "Ambassador Walker is the type of leader we wish to set forth as an example for our students. Our mission is only half accomplished if we simply graduate well-educated business people. We must be equally focused on the type of business people they'll become – global citizens who do well by doing good. I can think of no finer example of that than Ambassador Walker."

Ambassador Walker joined the University's Board of Trustees in 1974 and served as board chairman twice – from 1987 to 1992, and again from 2008 to 2009. He was named a Life Trustee of the University in 2003 and also served for many years as chairman of the advisory board of Webster's school of business. In April 2010, Webster University named its business school the George Herbert Walker School of Business & Technology, to honor the former U.S. ambassador to Hungary, philanthropist, civic leader and longtime Webster supporter.

Deaths Prompt CPSC, FDA Warning on Infant Sleep Positioners

WASHINGTON, Sept. 29 - The U.S. Consumer Product Safety Commission (CPSC) and the U.S. Food and Drug Administration (FDA) today warned consumers to stop using infant sleep positioners. Over the past 13 years, CPSC and the FDA have received 12 reports of infants between the ages of 1 month and 4 months who died when they suffocated in sleep positioners or became trapped and suffocated between a sleep positioner and the side of a crib or bassinet.

Most of the infants suffocated after rolling from a side to stomach position. In addition to the reported deaths, CPSC has received dozens of reports of infants who were placed on their backs or sides in sleep positioners, only to be found later in potentially hazardous positions within or next to the sleep positioners.

"The deaths and dangerous situations resulting from the use of infant sleep positioners are a serious concern to CPSC," said CPSC Chairman Inez Tenenbaum. "We urge parents and caregivers to take our warning seriously and stop using these sleep positioners, so that children can have a safer sleep."

The two main types of infant sleep positioners are flat mats with side bolsters or inclined (wedge) mats with side bolsters.

Both types of sleep positioners typically claim to help keep infants on their backs and reduce the risk of Sudden Infant Death Syndrome (SIDS). The FDA has never cleared an infant sleep positioner to prevent or reduce the risk of SIDS. In addition, CPSC and the FDA are unaware of any scientific studies demonstrating that infant positioners prevent SIDS or are proven to prevent suffocation or other life-threatening harm.

"To date, there is no scientifically sound evidence that infant sleep positioners prevent SIDS," said Dr. Joshua Sharfstein, FDA Principal Deputy Commissioner and a pediatrician. "We want to make sure parents, health care professionals, and childcare providers understand the potential risk of suffocation and stop using infant sleep positioners."

Sleep positioners also typically claim to do one or all of the following: aid in food digestion to ease colic or the symptoms of gastroesophageal reflux disease (GERD); and prevent flat head syndrome (plagiocephaly). In light of the new safety data, FDA believes any benefit from using these devices to ease GERD or prevent plagiocephaly is outweighed by the risk of suffocation.

CPSC and the FDA are warning parents and child care providers to:

STOP using sleep positioners. Using a positioner to hold an infant on his or her back or side for sleep is dangerous and unnecessary.
NEVER put pillows, infant sleep positioners, comforters, or quilts under a baby or in a crib.
ALWAYS place an infant on his or her back at night and during nap time. To reduce the risk of SIDS, the American Academy of Pediatrics recommends placing infants to sleep on their backs and not their sides.


The American Academy of Pediatrics does not support the use of any sleep positioner to prevent SIDS.

Manufacturers of infant sleep positioners with medical claims that have not been reviewed by the FDA should stop marketing those products until they submit, and the FDA clears, appropriate premarket review submissions, including necessary safety and effectiveness data.

FDA has informed manufacturers of cleared devices of the agency's serious concern and has requested that they submit clinical data showing the benefits of their products outweigh the risk of suffocation or other serious harm.

Wednesday, September 29, 2010

Wal-Mart, Bharti JV to open 15 outlets in wholesale by 2011

Mumbai, Sept 28- Global retail giant, Wal-Mart, in its joint venture with Bharti Enterprises, plans to open 15 outlets in its wholesale format by end-2011, a top company official said.
The company currently operates 3 cash and carry stores in the country at Amritsar, Ludhiana and Jalandhar.
ÒOur plans on the cash and carry business to open 15 outlets by end-next year is on track. We are opening 4 outlets in Rajasthan, Madhya Pradesh, Vijayawada and Hyderabad by mid- next year,Ó Bharti Walmart's Head, Raj Jain, told reporters on the sidelines of the India Retail Forum here, today.
Bharti Enterprises and US-based Wal-Mart Stores
entered into a joint venture in August 2007 and started
cash-and-carry stores named 'BestPrice Modern Wholesale' in
2009.
On its sales, Jain said a good monsoon and a good growth in the economy this year is likely to boost overall sales.

Thursday, September 9, 2010

Judicial Watch Obtains Never-Before-Released FBI Records Regarding Late Senator Ted Kennedy

Documents Detail Connections to Suspected Communist Operatives

WASHINGTON, Sept. 8 - Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that it has obtained 23 new pages of documents from the Federal Bureau of Investigation (FBI) file of late Senator Edward Moore "Ted" Kennedy, who died in August 2009. Judicial Watch obtained the records pursuant to a Freedom of Information Act (FOIA) lawsuit filed on June 9, 2010.


Among the new documents is a memo dated March 28, 1963, that details the FBI's concern over an effort by Edward and Robert Kennedy to pressure the State Department to allow Katalin Karady, a Hungarian emigre living in Brazil - described as "consistently refused an immigrant visa because of the voluminous subversive and derogatory data on file concerning her" - to enter the United States:


Legat, Rio de Janeiro, has furnished data from State Department files, Sao Paulo, Brazil indicating that in August, 1961, Edward and Robert Kennedy, now U.S. Senator and Attorney General, respectively, were interested in [Katalin Karady's] obtaining an immigrant visa to U.S. Subject is former Hungarian actress of unsavory reputation who has now obtained the immigrant visa...


...Subject, Hungarian-born, aged 48, is former well-known actress in Hungary. Numerous allegations have been received in the past indicating subject to have been a communist collaborator, lesbian, and prostitute. She has reportedly admitted being the fiancee of the head of Hungarian intelligence (Nazi) during World War II.


(FBI Director J. Edgar Hoover seems to have handwritten the note "I am speechless!" at the bottom of this memo.)


Another document, dated December 28, 1961, details Senator Kennedy's attempts to meet with "Leftists" in Central and South America:


In July, 1961, Edward Kennedy made a familiarization and orientation tour of Central and South American countries. During this tour, the Mexico City Legal Attache reported that Kennedy had expressed an interest in meeting with "Leftists" to talk with them and determine why they think as they do. Kennedy met with a number of individuals known to have communist sympathies. ...Subsequently, a State Department official in Lima, Peru, confidentially advised that Kennedy had made a similar request in Peru, and this official described Kennedy as "pompous and a spoiled brat."


In August, 1961, a confidential source advised that Edward Kennedy had recently dined with Dr. Lauchlin Bernard Currie, former White House Aide to President Roosevelt. Currie's name had been mentioned in Washington investigations of Soviet spy rings.


Judicial Watch continues to fight for the release of an additional 48 pages of documents being withheld by the FBI. United States District Judge Richard Roberts will hold a scheduling conference October 6, 2010.


"These documents help complete the public record of one of the most controversial politicians in U.S. history," said Judicial Watch President Tom Fitton. "It is a shame the 'transparent' Obama administration continues to slow-walk the release of these documents."

Former Assistant Vice President of GE Capital Files $10 Million Lawsuit After Being Punished for Revealing Fraud

STAMFORD, Conn., Sept. 8 - Edward Gormbley, a former Assistant Vice President at General Electric Capital Services, filed suit in Connecticut Superior Court today seeking $10 Million from GE. Mr. Gormbley's complaint asserts that GE Capital retaliated and constructively discharged him after he complained that GE Capital fraudulently overvalued one of its largest investment assets, Momentive Performance Materials ("Momentive").


Gormbley, a "Top-Talent" employee of GE, filed the Complaint after the Company cut his compensation, reduced his responsibilities and destroyed his professional reputation after he repeatedly expressed legitimate concerns to his superiors that GE Capital's valuation methods resulted in a grossly inflated valuation of Momentive in 2008.


Gormbley is represented in the matter by Sanford Wittels & Heisler LLP, in Washington, D.C.


"Mr. Gormbley repeatedly was warned to keep what he knew about GE Capital's valuation of Momentive to himself," said David Sanford. "When Gormbley refused to play GE's games, GE swiftly and brutally retaliated against him."


In addition to GE Capital Services, the suit names General Electric Company, GE Equity, GE Company Chair and CEO Jeffrey Immelt, and a number of other high-ranking corporate executives as defendants.


Gormbley was hired by GE in 2000, joining its Financial Management Program. After working in a wide range of divisions throughout the company, he joined GE Commercial Finance, a subdivision of GE Capital in 2006. Throughout his rise through the ranks, he earned and maintained a spot on the top rung of the company's forced ranking system. His strong, positive performance also won him a coveted position on GE's corporate audit staff.


In mid-2008, Gormbley became concerned because he recognized that GE's valuation of Momentive was inflated by some $2 billion. He shared these conclusions with his superiors. They were not appreciative.


GE's first response to Gormbley's bad news was to ignore the message. When Gormbley persisted in making his concerns known to an increasing circle of individuals in the company, GE's answer was to kill the messenger.


In early October 2008, while the financial sector was in a state of turmoil, GE announced a $12 billion stock offering, touting the company's financial soundness and pledging to maintain its high quarterly dividend. Yet, at the same time, it was becoming increasingly clear that GE Capital was in trouble. In fact, in private meetings with Bush administration Treasury Department officials, including then-Treasury Secretary Henry Paulson, Immelt expressed concerns about GE and GE Capital's finances and financial stability.


In November and December 2008, Gormbley continued to warn GE about Momentive's declining performance and recommended that GE Equity take a write down of Momentive's valuation. Gormbley was explicitly and implicitly warned to stop talking about Momentive's decline and its effects on GE. Gormbley's superiors instructed him to change his valuation methodologies for Momentive calculations and to stop "making things so difficult."


In January of 2009 Gormbley's concerns about GE's over-valuation of Momentive were confirmed. At that time, GE Equity received Momentive's board book verifying that the value of Momentive had plummeted. With this written corroboration of his concerns, Mr. Gormbley sent an email to the President of GE Capital and other senior GE officials in which he again advocated a write-down of Momentive. In response, GE chastised Mr. Gormbley for making the situation public and discouraged him from speaking at meetings.


But Gormbley would not stay silent. He had witnessed and objected to GE Capital's overstatement of Momentive's value and its concealment and misrepresentation of faulty valuation data to internal controllers, external auditors, and the Securities and Exchange Commission. In its February 2009 Form 10-K filing, GE chose not to include the most updated valuation information for Momentive, thereby violating the SEC's reporting requirements.


In response, GE Equity's leadership initiated a campaign of retaliation that ended Gormbley's career at the company and caused him severe financial and emotional harm. The retaliation included removing him from a team of energy investment professionals, prohibiting him from pursuing new deals, passing him over as a board observer on an investment deal in which he has served as lead underwriter, reducing his performance rating, cutting his year-end bonus, removing him from the Momentive account, excluding him from meetings essential to his performance, delaying his 2009 performance review, refusing him the opportunity to work from home or utilize flex time, and threatening to revoke a $133,000 loan.


"GE did everything it could possibly do to discredit me, ruin my reputation within the company and generally make my life miserable," said Gormbley. "When I asked Human Resources to investigate the retaliation I was being regularly subjected to, my requests were ignored. To preserve my professional reputation and financial security, I finally had to resign."


The Complaint calculates damages at over $10 million.


Sanford Wittels & Heisler is a law firm with offices in Washington, D.C., New York, and San Francisco that specializes in employment discrimination, wage and hour, consumer and complex corporate class action litigation and has represented thousands of individuals in some of the major class action cases in the United States. The firm also represents individual clients in employment, employment discrimination, sexual harassment, whistleblower, public accommodations, commercial, medical malpractice, and personal injury matters

Michael Lynch Memorial Foundation Announces 2010 Scholarship Recipients

NEW YORK, Sept. 8 - The Michael Lynch Memorial Foundation, a program that has provided $1.6 million in college scholarships to children of firefighters and victims of the September 11 attacks as well as other U.S. disasters, today announced its 2010 grant recipients.

The awards, which this year totaled more than $250,000, go to high-school students who have demonstrated academic excellence, participated actively in school programs and athletics, and contributed selflessly to their communities, often while working part-time jobs to help support themselves. The Foundation also announced that its annual golf outing this year will be held on Friday, September 17 at Pelham Golf Course in the Bronx, New York.


This year's grant recipients are: Lisa Berrios (University of Delaware), Claire Buser (College of William and Mary), Jaclyn Calia (Villanova University), Chelsea Collins (Fashion Institute of Technology), Amy Gardner (Quinnipiac University), Taylor Ginley (Florida International University), Michael House (Cornell University), Conor Jones (Fordham University), Robert Klein (SUNY Albany), Christina Mockler (Muhlenberg College), Henry Walker (Villanova University), and Brian Wren (Providence College).


The Michael Lynch Memorial Foundation began in response to a terrible tragedy - the loss of Michael Lynch, a son, brother, fiance, uncle and New York City firefighter who sacrificed his own life on September 11 in an effort to save others. Facing the ultimate loss, the Lynch family saw an opportunity to help finance the education of young people as a living tribute to the human spirit and the family's collective resolve to respond to adversity with courage, strength, compassion and hope. The goal of the Foundation is to provide the means to help change the world, one person at a time, by helping the students of today become tomorrow's stewards of peace and freedom.


Lou Ann Eckert-Lynch, wife of Michael's brother John and director of the scholarship selection committee, said, "The Foundation is proud to support the 2010 scholarship recipients. These young people possess leadership qualities that will enable them to help build a future of peace and freedom for us all. We hope that Michael's example will teach them about hope, honor and facing adversity with courage, strength and compassion."


Jonathan S. Henes, a partner in the Restructuring Group at Kirkland & Ellis LLP who served as Honorary Chairperson of the Foundation's eighth annual dinner, said, "We are particularly pleased that we were able to increase the number of grant recipients this year, from 10 to 12, due largely to the tremendous success of the annual dinner in March, which raised more than $500,000 for the Foundation. In addition, the Foundation has been able to increase the amount of the scholarship for all 42 current participants by 20 percent - to $24,000 per year for four years. The strong support for the Foundation from the restructuring community, as well as other corporate and individual donors, directly and meaningfully benefits the lives of the scholarship recipients."


This year's grant recipients will be honored at the Foundation's 9th annual awards dinner on March 28, 2011 at Pier 60 at Chelsea Piers.


Annual Golf Outing


The scholarship program is funded by events like the Michael Lynch Memorial Foundation Annual Golf Outing, which this year will be held on Friday, September 17 at Pelham Golf Course in the Bronx, New York. Breakfast will be served starting at 7 AM and the golf will begin at 8 AM. The event is chaired by Michael Lynch's brother Thomas Lynch.


"The golf outing is a reflection of Michael's generosity to people while he lived," Thomas Lynch said. "The outpouring of support from the community and camaraderie that mark the event capture the essence of who Michael was and what the Foundation is all about. Everyone who participates shares our commitment to providing more scholarships and giving back in Michael's name."


The golf will be followed by a party at Michael's Restaurant at American Turners Club (748 Clarence Ave. in the Bronx), which will include dinner, a raffle, and prizes.

Wounded Warrior Project (WWP) Introduces Web Advocate

Online interactive tool offers information on benefits to empower warriors

JACKSONVILLE, Fla., Sept. 8 - Beginning today, wounded warriors injured in the current conflicts will have access to a new and cutting edge resource designed to educate them about the benefits and compensation they are entitled to as a result of their injuries.


In addition to offering full time benefits counselors on staff to assist with the Department of Veterans Affairs (VA) Disability Compensation claims process, Wounded Warrior Project will now offer Web Advocate, an online tool available to warriors 24 hours a day, 7 days a week. Using an easy, interactive body map, warriors will be able to pinpoint their injuries and receive immediate feedback on their VA disability ratings and compensation as well as ancillary benefits.


"Wounded Warrior Project's mission is to honor and empower wounded warriors," said John Roberts, Executive Vice President of Mental Health and Warrior Engagement. "We know how cumbersome and frustrating the claims process can be. It is our hope that by offering our warriors this information in an accessible way, we are educating them and working to ensure they receive the benefits they so rightly deserve."


Armed with the knowledge they gain from the site, warriors can address their benefits and compensation concerns with WWP counselors and be better informed when working with the VA. Wounded Warrior Project is the only veteran's service organization to create and offer a new and innovative program of this kind.


About Wounded Warrior Project


The mission of the Wounded Warrior Project is to honor and empower wounded warriors. Its purpose is to raise awareness and to enlist the public's aid for the needs of injured service members, to help injured men and women aid and assist each other, and to provide unique, direct programs and services to meet their needs. WWP is a national, nonpartisan organization headquartered in Jacksonville, FL. To get involved and learn more, visit www.woundedwarriorproject.org

Thursday, August 26, 2010

In Case You Missed It: Increases in Energy Taxes Could Cost Latinos Jobs

In yesterday's Houston Chronicle, race and ethnic politics expert Victoria DeFrancesco Soto cautions that President Obama's current proposed tax increases on the US oil and gas industry not only run counter to efforts to revitalize the economy but would disproportionately affect communities of color:

The Latino community has been especially hard hit in this recession with unemployment rates consistently above that of the national average. Even in the midst of the immigration debate, jobs still remain the top concern for Latinos, as shown in a recent AP-Univision poll...

Amid the deepest recession we have seen in 70 years, every effort should be made to balance environmental, security and economic concerns. These goals are not mutually exclusive; however, recent legislation seeks to make them so.

For example, an amendment added earlier this month to the Senate's "Small Business Jobs" bill by Sen. Max Baucus, D-Mont., repeals a tax credit currently available to all American manufacturers. If passed, this amendment would have the perverse effect of cutting U.S. jobs, increasing our energy prices, and providing foreign firms a competitive advantage. I invite Baucus to come to Harris County, Texas, and see for himself how his proposal fares with the thousands of people whose livelihood depends on American oil and gas companies...

In 2008, more than 67 percent of the Latino population voted for Barack Obama. Spending more than $20 million to target their community alone, his campaign was the most aggressive to date in courting the Latino vote. Candidate Obama and now President Obama promised he would protect the jobs of Latinos. In this high stakes energy debate, he has an opportunity to do just that.

Visit http://www.chron.com/disp/story.mpl/editorial/outlook/7170032.html to read the full text of Dr. DeFrancesco Soto's op-ed.

Victoria DeFrancesco Soto's work in political psychology and race and ethnic politics gives her a unique perspective on issues that will play into this November's elections. Her research projects examine the influence of social group identity on political behavior, in particular with regards to campaigns; black-Latino intergroup relations; comparative race studies; and attitudes toward immigration. A third major component of DeFrancesco Soto's research is the area of campaign media effects, where she and Jennifer Merolla were the first to publish a study on the role of Latino-angled campaign advertisements on electoral behavior in 2006.

Lenovo and Intel to Award $20,000 Scholarship in Nationwide College Blogging Contest

INSPIRATIONAL COLLEGE PROGRAM ENCOURAGES STUDENTS TO SET A GOAL AND BLOG ABOUT THEIR DAILY PROGRESS AS THEY STRIVE TO REACH IT.

RALEIGH, N.C., Aug. 26 - Lenovo is calling on all undergraduate and graduate students who are entering or attending an accredited college or university to blog for the chance to win a $20,000 scholarship. Other prizes will include a $1,000 gift card to their on-campus bookstore, as well as Lenovo laptops and Netbooks.

The University of Bloggers Back to School Program was spearheaded by the Lenovo Department of World Wide Education. To enter, students must pick a goal, go to LenovoBlogU.com and start a blog about it with consistent updates on their progression to success. All blogs will be monitored and judged based upon their creativity, popularity and activity (amount of updates). The 10 finalists to make the Dean's List will be chosen on September 30, 2010 and the Grand Prize winner will be announced on October 10th, 2010.

Lenovo Director of Worldwide Education, Gus Schmedlen explains, "Whether your goal is to learn how to cook or travel cross country, we want to read why you chose to accomplish this goal and the steps you took to achieve it. In a sense, we want to take the journey with you."

To enter or to find out more about the University of Bloggers Back to School Program, go to http://lenovoblogu.com/.

Allied Waste Teamsters Strike Over Unfair Labor Practices

500 Teamsters Honor Picket Line, Workers Call on Company to Negotiate in Good Faith

HALF MOON BAY, Calif., Aug. 26 - Today, hundreds of Teamsters at Allied Waste are honoring the picket line of scale house operators, sorters and drivers who went out on strike this morning to protest unfair labor practices by the solid waste giant during ongoing contract negotiations.

Twelve workers represented by Teamsters Local 350 in Daly City, Calif. have been in negotiations with Allied Waste for a new contract for more than eight months. The workers, who work at the Ox Mountain yard, are holding a 48-hour strike to protest Allied Waste's continued stall tactics and refusal to bargain in good faith.

"Our members feel that enough is enough," said Bob Morales, Teamsters Local 350 Secretary-Treasurer and Director of the Teamsters Solid Waste and Recycling Division. "We are sending a wake-up call to Allied Waste - we will not be bullied and intimidated during negotiations. We have negotiated in good faith and expect the same behavior from the company."

More than 500 Teamsters that work at Allied Waste are honoring the picket line at Ox Mountain. The 12 members on strike are not the only workers represented by Local 350 currently in negotiations with Allied Waste. Clerical workers, organized by the Teamsters earlier this year, are trying to negotiate a first contract with Allied Waste but have encountered similar tactics by the company.

The clerical workers, who are predominantly female, apparently do not rate the same health and welfare and pension benefits or wages as the male workers at the company. Allied Waste has refused to make an offer to the clerical workers with comparable benefits and wages to the male workers. The union has filed unfair labor practice charges against the company on behalf of the clerical workers.

"Gender should never be a factor when negotiating for wages and benefits," Morales said. "Female employees should be treated with equality and respect in the workplace, and we will not accept any agreement that discriminates on the basis of gender."

Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.

FDA Warns Consumers to Avoid TimeOut Capsules

Product marketed for sexual enhancement is contaminated with potentially dangerous ingredient

SILVER SPRING, Md., Aug. 26 - The U.S. Food and Drug Administration is warning consumers not to take TimeOut Capsules because it contains an active drug ingredient that can dangerously lower blood pressure. The product is marketed as a dietary supplement for sexual enhancement.
TimeOut is labeled as "100% natural" and consumers may mistakenly assume the product is harmless and poses no health risk. TimeOut is distributed on Internet sites and online marketplaces as 2,500 mg capsules.

Consumers who have TimeOut Capsules should stop using them immediately. Sexual enhancement products that claim to work as well as prescription products are likely to expose consumers to unpredictable risks and the potential for injury or death.

The FDA analyzed TimeOut and determined that it contains hydroxythiohomosildenafil, a chemical similar to sildenafil, the active ingredient in Viagra. Like sildenafil, this chemical may interact with prescription drugs such as nitrates, including nitroglycerin, and cause dangerously low blood pressure. When blood pressure drops suddenly, the brain is deprived of an adequate blood supply which can lead to dizziness or lightheadedness.

To date, the FDA is not aware of any adverse events associated with the use of this product.

The FDA advises consumers who have experienced any negative side effects from sexual enhancement products to consult a health care professional and to safely discard the product. Consumers and health care professionals should report adverse events to the FDA's MedWatch program at 800-FDA-1088 or online at www.fda.gov/medwatch/report.htm.

During the past several years, the FDA has found many products marketed as dietary supplements for sexual enhancement that can be harmful to consumers because they are adulterated with ingredients in FDA-approved drugs or variations of these ingredients.

In Two Party Race, November Elections Could Go Either Way

NEW YORK, Aug. 26 - During an election year, August recess for members of Congress is a time for them to reconnect with their constituents and get a little rest before they come back to D.C. for a flurry of activity for one month followed by one month of intense campaigning. This year, they need to do more reconnecting than resting, as just 15% of Americans rate the overall job Congress is doing as positive with 85% giving their job negative marks. And, while Democrats may hold control of Congress, their partisans are not being more kind - three-quarters of Democrats (73%) give Congress negative ratings as do 89% of Independents and 95% of Republicans.

These are some of the results of The Harris Poll of 2,775 adults surveyed online between August 9 and 16, 2010 by Harris Interactive.

The November Elections

One of the stories of this election season so far has been Democratic disenchantment and Republican enthusiasm. Looking at two simple factors - voting interest and voting likelihood - shows this story continues as the summer ends. While over half of Americans (53%) say they are absolutely certain they will vote in the November elections, that numbers goes up to 63% for Republicans and only to 55% for Democrats. Interest shows a similar trend. Three in five Americans (60%) say they are interested in the House of Representatives election this year. Looking at it by party, seven in ten Republicans (71%) say they are interested versus 56% of Democrats.

Tea Party supporters are the most enthusiastic. Seven in ten of those who are Tea Party supporters (70%) and three-quarters of those who consider themselves a Tea Party member (77%) say they are absolutely certain to vote. They are also more likely to be interested in the election. Eight in ten Tea Party supporters (79%) and 88% of Tea Party members say they are interested in the House of Representative election this year.

This enthusiasm is showing itself in a tight race for the House. One-third of Americans say they would vote for the Democratic candidate (34%) and one-third say they would vote for the Republican candidate (33%) with over one-quarter still undecided (28%). Looking at just those who say they are absolutely or very certain to vote this November, the edge goes to the Republicans, as 39% say they will vote for them with 37% saying they will vote for the Democratic candidate. And, among those who are extremely or very interested in this year's election, the Grand Old Party could see a landslide as almost half of these people (47%) say they would vote Republican compared to 35% who would vote for the Democrat.

But, if there is a Tea Party candidate in the race, things look better for the Democrats. In a three way race, 34% of Americans would vote for the Democrat, 22% would vote for the Republican and 11% would vote for the Tea Party candidate with one-third (33%) undecided. When looking at interest and likelihood to vote, the edge remains with the Democrats in the three-way race. Among those absolutely or very certain to vote, 38% would vote Democrat, 25% Republican and 14% for the Tea Party candidate. Among those extremely or very interested to vote, 36% would vote Democrat, 29% would vote Republican and 19% would vote for the Tea Party candidate.

So What?

The 2010 midterm elections are entering the final phase. Once Labor Day is over, the fall election cycle is in full swing. So far this year, 6 incumbents have lost in primaries around the country. Other incumbents have survived close calls. The electorate is disgruntled, but what happens over the next nine weeks will help decide two important factors. First, who will actually turn out to vote on November 2nd? And, more importantly, who are they voting for?

TABLE 1
CONGRESS' OVERALL JOB RATING
"How would you rate the overall job Congress is doing?"
Base: All U.S. adults




Total Political Party
---------------
Rep. Dem. Ind.
---- ---- ----
% % % %
--- --- --- ---
POSITIVE 15 5 27 11
-------- --- --- --- ---
Excellent 2 * 4 *
--------- --- --- --- ---
Pretty good 14 5 22 11
----------- --- --- --- ---
NEGATIVE 85 95 73 89
-------- --- --- --- ---
Only fair 35 24 48 32
--------- --- --- --- ---
Poor 49 71 25 57
---- --- --- --- ---


Note: Percentages may not add up to 100% due to rounding; * signifies less than 1%.

TABLE 2
CONGRESS' OVERALL JOB RATING - TREND
"How would you rate the overall job the Congress is doing?"
Base: All U.S. adults




TREND Positive* Negative**
--------- ----------
% %
--- ---
2010 August 15 85
---- ------ --- ---
June 14 86
---- --- ---
May 15 85
--- --- ---
April 16 84
----- --- ---
March 10 90
----- --- ---
Jan. 16 84
---- --- ---
2009 Dec. 17 83
---- ---- --- ---
Oct. 16 84
---- --- ---
Sept. 19 81
----- --- ---
Aug. 22 78
---- --- ---
June 25 75
---- --- ---
March 29 71
----- --- ---
2008 October 10 86
---- ------- --- ---
August 18 77
------ --- ---
June 13 83
---- --- ---
February 20 76
-------- --- ---
2007 December 17 79
---- -------- --- ---
October 20 77
------- --- ---
April 27 69
----- --- ---
February 33 62
-------- --- ---
2006 September 24 73
---- --------- --- ---
May 18 80
--- --- ---
February 25 71
-------- --- ---
January 25 72
------- --- ---

*Positive = excellent or pretty good. **Negative = only fair or poor.
Note: Prior to March, 2009, this question was asked by telephone.


TABLE 3
Voting Likelihood

"An election for the House of Representatives will be held on November 2nd. How certain are you that you will vote?"

Base: All U.S. adults




Total Political Party Tea Party
--------------- ---------
Rep. Dem. Ind. Supporter Member
---- ---- ---- --------- ------
% % % % % %
--- --- --- --- --- ---
Will Vote 80 88 84 81 92 92
--------- --- --- --- --- --- ---
Absolutely
certain I will
vote 53 63 55 51 70 77
--------------- --- --- --- --- --- ---
Very certain I
will vote 14 14 14 17 13 11
-------------- --- --- --- --- --- ---
I probably will
vote 12 10 15 13 8 3
--------------- --- --- --- --- --- ---
Will Not Vote 13 7 10 13 5 4
------------- --- --- --- --- --- ---
I probably will
not vote 7 5 6 6 3 3
--------------- --- --- --- --- --- ---
I am certain I
will not vote 6 2 4 7 2 1
-------------- --- --- --- --- --- ---
Not sure if I
will vote 7 5 6 6 3 5
------------- --- --- --- --- --- ---

Note: Percentages may not add up to 100% due to rounding


TABLE 4
ELECTION INTEREST

"How interested are you in the House of Representatives elections this year?"

Base: All U.S. adults


Total Political Party
---------------
Rep. Dem. Ind.
---- ---- ----
% % % %
--- --- --- ---
Interested 60 71 56 63
---------- --- --- --- ---
Extremely interested 22 32 21 43
-------------------- --- --- --- ---
Somewhat interested 20 21 17 18
------------------- --- --- --- ---
Interested 18 17 18 25
---------- --- --- --- ---
Not Interested 40 29 44 20
-------------- --- --- --- ---
Somewhat interested 25 21 30 37
------------------- --- --- --- ---
Not interested at all 15 8 14 25
--------------------- --- --- --- ---





Tea Party
---------
Supporter Member
--------- ------
% %
--- ---
Interested 79 88
---------- --- ---
Extremely interested 38 48
-------------------- --- ---
Somewhat interested 25 23
------------------- --- ---
Interested 17 17
---------- --- ---
Not Interested 21 12
-------------- --- ---
Somewhat interested 16 4
------------------- --- ---
Not interested at all 5 8
--------------------- --- ---

Note: Percentages may not add up to 100% due to rounding


TABLE 5
MIDTERM ELECTIONS - TWO-PARTY RACE

"If the election for the House of Representatives was being held today, would you vote for the Republican or the Democratic candidate?"

Base: All U.S. adults




Total Political Party Tea Party
--------------- ---------
Rep. Dem. Ind. Supporter Member
---- ---- ---- --------- ------
% % % % % %
--- --- --- --- --- ---
Democratic
candidate 34 2 77 23 12 10
---------- --- --- --- --- --- ---
Republican
candidate 33 82 2 26 67 73
---------- --- --- --- --- --- ---
Other 5 2 1 12 5 6
----- --- --- --- --- --- ---
Not at all sure 28 15 19 39 16 11
--------------- --- --- --- --- --- ---

Note: Percentages may not add up to 100% due to rounding

TABLE 5B
MIDTERM ELECTIONS - TWO-PARTY RACE - VOTING INTEREST AND INTENTION

"If the election for the House of Representatives was being held today, would you vote for the Republican or the Democratic candidate?"

Base: All U.S. adults


Total Voting Interest
---------------
Extremely/
Very Not
Interested Interested
(NET) Interested (NET)
----------- ---------- -----------
% % % %
--- --- --- ---
Democratic
candidate 34 35 35 24
---------- --- --- --- ---
Republican
candidate 33 47 42 12
---------- --- --- --- ---
Other 5 5 5 9
----- --- --- --- ---
Not at all sure 28 13 18 56
--------------- --- --- --- ---





Voting Intention
----------------
Absolutely/ Probably Will Not
Very Certain Will Vote
will Vote Vote (NET)
------------ --------- ---------
% %
--- ---
Democratic
candidate 37 37 25
---------- --- --- ---
Republican
candidate 39 37 11
---------- --- --- ---
Other 4 5 8
----- --- --- ---
Not at all sure 19 22 56
--------------- --- --- ---

Note: Percentages may not add up to 100% due to rounding


TABLE 6
MIDTERM ELECTIONS - THREE-PARTY RACE

"If the election for the House of Representatives was being held today and all three were an option, who would you vote for?"

Base: All U.S. adults




Total Political Party Tea Party
--------------- ---------
Rep. Dem. Ind. Supporter Member
---- ---- ---- --------- ------
% % % % % %
--- --- --- --- --- ---
Democratic candidate 34 1 77 24 10 6
-------------------- --- --- --- --- --- ---
Republican candidate 22 57 1 16 39 23
-------------------- --- --- --- --- --- ---
Tea Party candidate 11 20 2 15 27 56
------------------- --- --- --- --- --- ---
Not at all sure 33 22 20 45 23 15
--------------- --- --- --- --- --- ---

Note: Percentages may not add up to 100% due to rounding


TABLE 6B
MIDTERM ELECTIONS - THREE-PARTY RACE - VOTING INTEREST AND INTENTION

"If the election for the House of Representatives was being held today and all three were an option, who would you vote for?"

Base: All U.S. adults


Total Voting Interest
---------------
Extremely/
Very Not
Interested Interested
(NET) Interested (NET)
----------- ---------- -----------
% % % %
--- --- --- ---
Democratic
candidate 34 36 36 24
---------- --- --- --- ---
Republican
candidate 22 29 26 10
---------- --- --- --- ---
Tea Party
candidate 11 19 16 4
---------- --- --- --- ---
Not at all sure 33 16 22 62
--------------- --- --- --- ---





Voting Intention
----------------
Will
Absolutely/ Probably Not
Very Certain Will Vote
will Vote Vote (NET)
------------ --------- -----
% %
--- ---
Democratic
candidate 38 37 28
---------- --- --- ---
Republican
candidate 25 24 12
---------- --- --- ---
Tea Party
candidate 14 13 2
---------- --- --- ---
Not at all sure 23 26 58
--------------- --- --- ---

Note: Percentages may not add up to 100% due to rounding


TABLE 7
TEA PARTY FAMILIARITY
"How familiar are you with the Tea Party Movement?"
Base: All U.S. adults




March May June August
2010 2010 2010 2010
---- ---- ---- ----
% % % %
--- --- --- ---
Familiar (NET) 76 85 86 86
-------------- --- --- --- ---
Very familiar 15 22 20 20
------------- --- --- --- ---
Somewhat familiar 39 44 48 44
----------------- --- --- --- ---
Not that familiar 22 19 18 22
----------------- --- --- --- ---
Not familiar (NET) 24 15 14 14
------------------ --- --- --- ---
Not at all familiar 16 10 11 11
------------------- --- --- --- ---
Never heard of 8 5 4 3
-------------- --- --- --- ---

Note: Percentages may not add up to 100% due to rounding


TABLE 8
TEA PARTY SUPPORT
"Do you support or oppose the Tea Party Movement?"

[Asked of all adults excluding those who are "not at all familiar" or "have never heard of" the Tea Party Movement]

Base: All U.S. adults




March May June Aug Political Party
2010 2010 2010 2010 ---------------
Rep. Dem. Ind.
---- ---- ----
% % % % % % %
--- --- --- --- --- --- ---
Support (NET) 33 38 37 38 70 13 42
------------- --- --- --- --- --- --- ---
Strongly support 14 18 16 15 34 5 12
---------------- --- --- --- --- --- --- ---
Somewhat support 19 20 22 23 36 8 30
---------------- --- --- --- --- --- --- ---
Oppose (NET) 23 30 31 29 5 51 31
------------ --- --- --- --- --- --- ---
Somewhat oppose 9 11 11 11 4 14 15
--------------- --- --- --- --- --- --- ---
Strongly oppose 14 19 19 18 1 37 16
--------------- --- --- --- --- --- --- ---
Not at all sure 20 17 17 19 18 20 16
--------------- --- --- --- --- --- --- ---
Not asked/Not familiar at
all/ Never heard of 24 15 14 14 8 16 11
------------------------- --- --- --- --- --- --- ---

Note: Percentages may not add up to 100% due to rounding


TABLE 9
TEA PARTY MEMBER
"Would you describe yourself as a member of the Tea Party?"

[Asked of all adults excluding those who are "not at all familiar" or "have never heard of" the Tea Party Movement]

Base: All U.S. adults




May June Aug Political Party
2010 2010 2010 ---------------
Rep. Dem. Ind.
---- ---- ----
% % % % % %
--- --- --- --- --- ---
Yes 10 8 7 17 1 6
--- --- --- --- --- --- ---
No 75 77 79 76 83 83
--- --- --- --- --- --- ---
Not asked/Not
familiar at all/
Never heard of 15 14 14 8 16 11
----------------- --- --- --- --- --- ---

Applications for FirstEnergy Math, Science and Technology Education Grants Available

MORRISTOWN, N.J., Aug. 25 - FirstEnergy Corp.'s New Jersey operating company - Jersey Central Power & Light (JCP&L) - is again offering mathematics, science and technology grants to educators and youth group leaders. The grants - available to teachers in pre-kindergarten through grade 12 - support classroom projects and teacher professional development initiatives. The deadline to apply for a grant is Monday, September 20, 2010.

Any creative project dealing with math, science and technology is eligible, but projects that will be given priority should: focus on electricity and electricity production; improve, advance and enrich student learning; be flexible and appropriate for the targeted stage of student development; range from formative ideas that explore learning concepts to fully tested models that are ready to be adopted and disseminated; and enable networking, mentoring, interdisciplinary or team-teaching as well as teacher training and professional development.

"Skills in math, science and technology are important for success in everyday life and in the workforce," said Dennis O'Boyle, JCP&L vice president of External Affairs. "Our grant program provides educators with support for creative projects and programs that help stimulate learning by involving students directly, all while having fun."

The grants of up to $500 are awarded annually in areas served by FirstEnergy companies or where the company has facilities. In New Jersey, grant applicants, schools or programs must be located within the JCP&L service area, or where FirstEnergy has power plants to qualify. To obtain applications or for more information, visit the FirstEnergy website at www.firstenergycorp.com/community/education/grants and click on Education Grants. Completed applications and supporting documents, including a W-9 form, should be mailed to:

FirstEnergy Corp.
Community Involvement Department
76 South Main Street
Akron, Ohio 44308


FirstEnergy is a diversified energy company headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Its seven electric utility operating companies comprise the nation's fifth largest investor-owned electric system, based on 4.5 million customers served within a 36,100-square-mile area of Ohio, Pennsylvania and New Jersey; and its generation subsidiaries control more than 14,000 megawatts of capacity.

Washington Indian Gaming Association Scholarship Program for 2010

OLYMPIA, Wash., Aug. 25 - The Washington Indian Gaming Association (WIGA) recently awarded $50,000 in scholarships to 33 Native American students who come from or attend school in Washington State. WIGA, a non-profit organization of tribal governments, runs a scholarship program for tribal members pursuing higher education degrees.

"The number of tribal members seeking higher education is increasing every year and we are especially pleased to be able to help them," said WIGA chairman, W. Ron Allen. "In addition to the scholarships awarded by WIGA, individual tribal governments around the state provide many more scholarships."

WIGA is a non-profit organization of Washington tribal governments that educates the public about Indian gaming and runs a scholarship program for tribal members pursuing higher education degrees.

Community College Scholarship Winners ($1,100 each)
-- Ashlee Abrahamson, Colville; Walla Walla Community College, WA
-- Shallee Graff, Port Gamble S'Klallam; Northwest Indian College, WA
-- Pamela George, Navajo; Clark College, WA
-- Delsen Lauderback, Lower Elwha Klallam; Peninsula College, WA
-- Tanner Loe, Colville; Bellevue Community College, WA
-- Francisco Orozco, Colville; Mesalands Community College, AZ
-- Sandra Parker, Makah; Peninsula Community College, WA
-- Rachel Phair, Lummi; Northwest Indian College, WA
-- Daniel Romero, Lower Elwha Klallam; Everett Community College, WA


University or College Scholarship Winners ($1,500 each)
-- Alana Best, Colville; Washington State University, WA
-- Angelena Campobasso, Colville; Eastern Washington University, WA
-- Sarah Donahue, Jamestown S'Klallam; University of Oregon, OR
-- Mary Lindeblad-Fry, Colville; Reed College, OR
-- Jaison Elkins, Muckleshoot; University of Colorado, CO
-- Tootie James, Quinault; University of Washington, WA
-- Tristen James, Tlingit and Haida; University of Washington, WA
-- Alyssa London, Tlingit; Stanford University, CA
-- Lacey London, Tlingit; University of Oregon, OR
-- Electra Magnuson, Tlingit and Haida; University of Washington, WA
-- Michael Peters, Squaxin Island; Southern Oregon University, OR
-- David Prince, Jamestown S'Klallam; University of Washington, WA
-- Anthony Rascon, Makah; University of Washington, WA
-- Lauren Smith, Skokomish; Stanford University, CA
-- Asia Tail, Cherokee; University of Chicago, IL
-- Latisha Toby, Lummi Nation; Western Washington University, WA


Graduate Program Scholarship Winners ($2,000 each)
-- Jodi Davis, Karuk/Seneca; Masters in Social Work, University of
Washington, WA
-- Khia Grinnell, Jamestown S'Klallam; J.D., Arizona State University, AZ
-- Toni Jefferson, Lummi Nation; Master of Business Administration,
Western Washington University, WA
-- Nancy Johnson, Colville; Masters of Arts, Heritage University, WA
-- Anthony Jones, Port Gamble S'Klallam; J.D., Washington University Law
School St. Louis, MO
-- Katrina Walsey, Yakama Nation; Master of Arts, Heritage University, WA
-- Rochelle Warner, Quileute; J.D., University of Washington, WA
-- Spusman Wilder, Colville; Masters in Forest Resources at the
University of Washington, WA



For more information about the WIGA Scholarship program, call 360-352-3248 or visit www.washingtonindiangaming.org.
Contact: Ernie Stebbins
(360) 352-3248
estebbins@reachone.com

More Health Care Cost Shifting in 2011, Says Aon Consulting

CHICAGO - As the national unemployment rate continues to hover around 10 percent, health care costs for those jobless Americans have seen a year-over-year increase, according to Aon Consulting, the global benefits and human capital consulting business of Aon Corporation.

Aon Consulting surveyed 1,079 employers nationwide in its 2010 Benefits Survey, and found an increase in monthly COBRA* contributions for terminated employees. Specifically, the average monthly cost for employee-only HMO coverage for a terminated worker is $429 this year, compared to $399 for the same coverage in 2009. For employee plus family, the former employee is paying $1,251 a month this year, compared to $1,171 per month last year. As for PPO coverage, the average monthly cost for employee only is $449 in 2010, compared to $439 in 2009, and for employee plus family, the cost tops out at a monthly average of $1,310 this year, versus $1,275 last year.

"The increased frequency and duration of COBRA use is creating a significant strain on the program, leading to higher costs," said John Zern, executive vice president and Health & Benefits Practice director with Aon Consulting. "Those who are unemployed, and facing uncertainty about employment prospects and future COBRA availability, are utilizing the program more than we've traditionally seen to treat a variety of conditions prior to potentially losing coverage. This coupled with the high unemployment rate, is placing the COBRA program in a unique and unprecedented position."

As for current employees, they can expect to shoulder more of the expense related to health coverage in 2011, according to this survey. In fact, 65 percent of employers plan to increase cost sharing next year for things such as deductibles, co-pays and out-of-pocket maximums. What's more, 57 percent of companies say they will ask employees to contribute more for the overall cost of health care in 2011. The amount of cost sharing implemented by employers varies. On plan design (e.g., deductibles, co-pays and out-of-pocket maximums), 46 percent of employers are shifting costs to employees equal to the overall renewal increase, while an additional 46 percent are shifting costs to workers that are less than the overall renewal increase. For overall health plan cost, 40 percent of employers say the additional worker contributions will be equal to the 2011 renewal increase, and 49 percent indicate that workers will be asked to pay less than next year's renewal increase.

"We believe the new health reform law will increase health care costs by 2 percent to 4 percent during the next three years," said Tom Lerche, senior vice president with Aon Consulting. "In addition, we expect to see new costs related to excise taxes and potential cost shifting from reductions in Medicare reimbursement to providers, which will be on top of existing long-term medical trend inflation. These factors will lead many employers to consider increased employee contributions for health coverage, as well as plan design cost sharing."

* COBRA - refers to the Consolidated Budget Reconciliation Act of 1985, and includes provisions for members of company health plans who have lost their coverage due to a "qualifying event" to continue coverage at the employee's expense for a period of time.

Sunday, July 18, 2010

Payday Lenders and Payday Employees Fear for Their Jobs

LOS ANGELES, July 18 - The Financial Reform Bill has passed congress and is on its way to be signed by President Obama. One of the things this bill will do is create a new government agency to oversee and regulate the financial lending industry. This agency will be called Consumer Financial Protection Bureau (CFPB). The CFPB, along with many of the politicians who supported the bill, have vowed to put all sorts of caps and limitations on the short term lending industry, which includes the payday loan industry.

Many payday lenders and their employees, like Pay1Day.com, are worried about their future because they believe that they are already overregulated by their respective States. For example, the State of Arizona recently banned payday loans, which forced many payday lenders, like Solomon Finance, out of the State. The act of banning payday loans and having to shut down business resulted in thousands of citizens losing their jobs.

"The payday loan industry is already closely regulated," said Gabe Rodriguez, who is a known author for a website that writes about payday loans. He goes on to say, "States that have allowed regulated payday lending have very few complaints against our industry."

According to a comment left a one of the online payday loan blogs, an employee for a small payday loan company said:

"I work in a payday/small loan company. I am getting so flustered with all of this. Every day I wait on news that will shut us down or news that they will leave us alone. I feel as if many of us are on pins and needles wondering if soon we will be in the unemployment lines. Job security is gone, and a lot of the zest that I once had is fizzling out.. I am not alone in this.. There is uncertainty in the air... I sure wish at least we knew what and when these changes would occur."

Payday lenders feel that the financial reform bill is not addressing the root causes of what led the US economy to collapse in 2008. It was well documented and evident that subprime mortgages, the major wall street banks irresponsible lending, and the greed of CEOs and CFOs of those banks and financial institutions were the causes for the deep recession of 2008. In other words small lenders such as payday loan lenders had nothing to do with it yet may be overregulated as the result of the passage of this new financial overhaul.

Saturday, July 10, 2010

Disney Must Pay $270 Million to 'Who Wants To Be A Millionaire : Jury

LOS ANGELES, July 9 - On July 7, 2010, a federal jury awarded Celador International, Ltd. $269.4 million in damages after unanimously finding that Disney subsidiaries, ABC Television, Buena Vista Television, and Valleycrest Productions, Ltd. had breached their contract with Celador to share profits from the enormously successful game show "Who Wants To Be A Millionaire?". In reaching its verdict in Celador International Ltd. v. Walt Disney Co., the nine member jury also unanimously found that the Defendants breached the implied covenant of good faith and fair dealing they owed to Celador. The jury deliberated for two and a half days before reaching its verdict.

The lawsuit, filed in 2004, arose over a dispute regarding profits from the highly successful game show. "Who Wants To Be A Millionaire?", which became a smash hit in 1999 and took ABC from #4 to #1 in network rankings, was created by British company Celador International, Ltd. which licensed the rights to ABC Television and Buena Vista Television for North America. In return, Celador was to share fifty-fifty in expected profits from the show. But based on accountings generated by The Walt Disney Co., not only did the show -- which aired on ABC for three years and has been in syndication for ten years -- never make a profit, it generated over $70 million in "losses" for Disney. The jury found otherwise after a four week trial in Riverside, Calif.

Paul Smith, chairman of Celador, said, "I am pleased that justice has been done and thank the jury for their wisdom and the time they have taken to consider this complex case."

"We are delighted with the jury's decision. Whether the parties are worldwide business conglomerates or two neighborhood businesses, a contract is a contract. The jury agreed that Disney's secret deals, and accounting maneuvers were not lawful," said Celador's trial lawyers Roman M. Silberfeld and Bernice Conn, partners with Robins, Kaplan, Miller & Ciresi L.L.P. in Los Angeles.

About Robins, Kaplan, Miller & Ciresi L.L.P.

Robins, Kaplan, Miller & Ciresi L.L.P. (www.rkmc.com) is one of the top trial firms in the country. The firm's clients include numerous Fortune 500 corporations, emerging markets companies, entrepreneurs, and individuals as both plaintiffs and defendants. Robins, Kaplan, Miller & Ciresi L.L.P. is frequently engaged in high-stakes, complex litigation with significant bottom-line implications for their clients, and the business lawyers handle complex transactions in a variety of market segments. The firm has more than 250 lawyers located in Atlanta, Boston, Los Angeles, Minneapolis, New York and Naples (FL).

Robins, Kaplan, Miller & Ciresi L.L.P. has been honored with recognition from The American Lawyer, which ranked the firm no. 6 in the country in the 2009 Pro Bono Survey, and twice named the firm to the A-List (2007 and 2004). The firm has regularly received a top ranking for litigation from Chambers USA. In 2009, the firm was included on the National Law Journal's "The Midsize Hotlist" and chosen as a "Go-To Law Firm" by Corporate Counsel.

Friday, July 9, 2010

Trucking Associations Support Efforts to Reduce Idling

ARLINGTON, Va., July 9 - The American Trucking Associations and several of its affiliates support the Diesel Idle Reduction Campaign headed by the Metropolitan Washington Council of Governments (COG), in partnership with the District Department of the Environment, District Department of Transportation and Maryland Department of the Environment.

The official launch of the campaign will take place at 11 a.m. on July 13 at COG headquarters near Union Station.

The aims of the campaign, which include reducing discretionary idling, improving public health and protecting the environment, align with the goals of ATA's Sustainability Initiative.

ATA launched its six-prong campaign in 2008, with one goal being the reduction of both discretionary and non-discretionary idling. Discretionary idling, the type being targeted by COG's campaign, occurs when drivers leave engines running during their rest periods to provide heat or air conditioning for the sleeper compartment, keep the engine warm during cold weather and provide electrical power for their appliances. Non-discretionary idling, which can be reduced by improvements to our national highway system that alleviate bottlenecks, occurs when vehicles are stuck in congested traffic.

"When truck and bus drivers turn off their engines when they're not needed, they do more than avoid fines and cut fuel costs," ATA Vice President and Environmental Affairs Counsel Glen Kedzie said. "They take an important and easy step toward improving air quality."

Other components of the ATA sustainability plan include:
-- Federal laws requiring trucks to have speed governors set at 65 mph or
below, and a national speed limit of 65 mph for all vehicles.
-- Allowing more productive truck weights and combinations, which safely
improve fuel economy.
-- Expansion of the EPA SmartWay(SM) Transportation program, which works
to reduce greenhouse gases and save fuel.
-- Reducing idling by updating the interstate system and reducing traffic
congestion.
-- Developing fuel economy standards for commercial vehicles.


ATA affiliates who are actively supporting COG's idle reduction campaign include the Truckload Carriers Association, Maryland Motor Truck Association and Virginia Trucking Association.

ATA currently helps promote idling reduction by making its members aware of each jurisdiction's idling regulations. The American Transportation Research Institute regularly updates its idling compendium when new regulations are published. The compendium shows that currently, commercial vehicles in the District of Columbia are permitted to idle for no more than 3 minutes, with limits of 5 minutes in Maryland and 10 minutes in Virginia. Exceptions are made for certain conditions, as detailed in the compendium.

For more information about ATA's Sustainability Initiative, visit www.trucksdeliver.org.

Thursday, July 1, 2010

Founder and Treasurer of Labor Union Charged with Mail Fraud

WASHINGTON, July 1 - The founder and treasurer of the National Association of Special Police and Security Officers (NASPSO) was charged with four counts of mail fraud in connection with his operation of a pension plan for members of NASPSO, a labor union representing private security guards assigned to protect federal buildings in the metro Washington area.

The charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; Mabel Capolongo, Director of the Philadelphia Regional Office of the Employee Benefits Security Administration of the Department of Labor; and Robert L. Panella, Special Agent in Charge of the Office of Inspector General, Office of Labor Racketeering and Fraud Investigations of the Washington, D.C. Regional Office.

Caleb Gray-Burriss, 59, of Washington, was arrested Tuesday in Washington, and charged in an indictment returned by a grand jury on June 25, 2010, and unsealed today. Gray-Burriss will make his initial appearance tomorrow in U.S. District Court in Washington.

The indictment charges that, from approximately June 2004 through August 2006, Gray-Burriss wrote numerous checks to himself or to other third parties from the checking account where he had placed funds intended for the NASPSO pension plan to cash. The indictment alleges that Gray-Burriss spent more than $100,000 of the pension plan funds in this way, while at the same time falsely maintaining that it was an operational fund that he was properly administering and that was providing benefits to the beneficiaries.

The investigation leading to the indictment and arrest of Gray-Burriss was conducted by investigators from two agencies of the U.S. Department of Labor - the Employee Benefits Security Administration and the Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. The case is being prosecuted by Trial Attorney Vincent Falvo of the Criminal Division's Organized Crime and Racketeering Section.

Another Case Against Port Trucking Firm

Class-Action Lawsuit Alleges Sun Pacific Trucking Inc Committed 'Wage Theft'

LOS ANGELES, June 30 - The Teamsters Union praised the courage of the Southern California port drivers who today filed a class-action suit against their employer, Sun Pacific Trucking, Inc., and Pacific Green Trucking, Inc., that alleges they were denied minimum wage, meal and rest periods, among other violations rampant in the deregulated industry. According to the driver's attorneys Sun Pacific and Pacific Green Trucking are nothing more than "alter egos" of the same enterprise and both are liable for the violations.

"Sun Pacific basically stole our money," said one of the plaintiffs, Jorge Ramirez. "Usually Sun Pacific would ask us to work an extra hour here, an extra half-hour there and by the end of the week all those hours would add up, but we would never see our hard-earned money."

The suit serves as only the latest example of widespread wage theft and other abuses by port trucking companies: It comes just as a powerful U.S. Congressional transportation committee has launched an investigation into questionable truck leasing practices that House representatives called "serfdom," and amid an ongoing California attorney general crackdown on misclassification.

The plaintiffs' attorney, Adam Luetto, recently filed a similar class-action lawsuit against another major port trucking company at the Ports of Los Angeles and Long Beach, Total Transportation Services, Inc.

"Port drivers consistently claim that they are forced to drive long hours without breaks and required to perform work they never get paid for," Luetto said. "These drivers, unsurprisingly, are simply tired of working for free and we are working hard to hold their employers responsible for such unlawful employment practices."

The Teamsters, the nation's largest union of transportation workers, cooperated with the named plaintiffs' attorneys at the Law Offices of Ellyn Moscowitz, PC, Keller Grover, LLP, and the Law Offices of Scot D. Bernstein, A Professional Corporation, to provide evidence for the latest wage-and-hour complaint filed in Los Angeles Superior Court.

"What we are seeing in Southern California is mirrored in ports across the nation, trucking companies are simply accustomed to denying workers and their families their right to benefits and fair compensation," said Fred Potter, Teamsters International Vice President and Port Division Director. "The Teamsters will continue to cooperate with public officials, private attorneys and legal authorities to help put an end to the injustice that exists in ports across the country."

In the fall of 2008, the Port of Los Angeles enacted powerful new regulations as part of its Clean Truck Program that required trucking firms to take full responsibility of their workers and environmentally-compliant trucks.

The program began to transform the industry's low-road structure into an efficient, environmentally sound and fair business model. However, a Virginia-based trucking industry lobby that represents Southern California port firms, the American Trucking Association, launched a legal assault and obtained a temporary injunction just over a year ago that eroded the program's EPA award-winning standards in order to continue business as usual.

Today, the mounting scrutiny continues to raise questions about the legitimacy of the current structure of the port "drayage" industry. Following a May 5 congressional hearing, the House Highways and Transit Subcommittee commenced a joint investigation with the House Labor and Education Committee regarding trucking companies' treatment of drivers.

In February, California Attorney General Jerry Brown received a fifth legal judgment against port trucking companies who misclassify their workers and deny them the Social Security, Medicare and workers' compensation benefits to which they are entitled under state law.

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.

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Five Brothers Charged in Human Trafficking Scheme that Smuggled Young Ukrainian Migrants

WASHINGTON, June 30 - An indictment unsealed today in Philadelphia charged Omelyan Botsvynyuk, Stepan Botsvynyuk, Mykhaylo Botsvynyuk, Dmytro Botsvynyuk, and Yaroslav Botsvynyuk, a/k/a Yaroslav Churuk, with extortion and conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) for their alleged involvement in a human trafficking operation, the Justice Department announced.

Assistant Attorney General for Civil Rights Thomas E. Perez, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, FBI Special Agent-in-Charge Janice K. Fedarcyk of the Philadelphia Field Office and ICE Special Agent-in-Charge John P. Kelleghan announced the indictment.

Four of the Botsvynyuk brothers were arrested today and are charged with conspiring to engage in a pattern of racketeering activity, from the fall of 2000 through the spring of 2007, by operating a human trafficking organization that smuggled young Ukrainian migrants into the United States and forced them to work for the brothers with little or no pay.

According to the indictment, the defendants promised the victims they would earn $500 per month with free room and board by working for the Botsvynyuk organization. They smuggled the workers into the United States and put them to work as cleaning crews in retail stores, private homes and office buildings without paying them. They used physical force, threats of force, sexual assault and debt bondage to keep the victims in involuntary servitude. The indictment further alleges that even after some of the victims escaped, the defendants continued with their extortionist activities in order to recoup the organization's investment in the workers. If direct threats failed and the workers did not return or make good on their debts, the Botsvynyuk brothers threatened violence to the workers' families still residing in Ukraine. In one instance, according to the indictment, Omelyan Botsvynyuk threatened to place a worker's then nine-year-old daughter into prostitution to pay off the family debt.

"Human trafficking is a scourge that denies human beings their fundamental right to freedom. Those who prey on the most vulnerable through force, fraud or coercion will be investigated and prosecuted to the fullest extent of the law," said Assistant Attorney General Perez. "The Civil Rights Division will continue to work with U.S. Attorney's Offices nationwide, law enforcement agencies across the globe, and victim assistance organizations to vindicate the rights of victims, bring traffickers to justice and dismantle human trafficking networks."

"The victims in this case entered this country with dreams of great opportunity only to find themselves living a nightmare," said U.S. Attorney Memeger. "They trusted this band of brothers, they performed the work they were told only to be rewarded with false promises, threats of brutality, and deprivation of their basic human needs. No one trying to immigrate to this country should have to endure such mistreatment."

Rather than bringing the workers to the United States legally, the indictment alleges that the Botsvynyuk organization obtained tourist visas to Mexico and had operatives who coached the workers on how to enter the United States illegally. While some of the workers successfully entered the country, others were taken into custody by U.S. immigration officials and remained in detention for almost two months. Once the victims were released, with immigration documents and summonses to appear for immigration hearings, the Botsvynyuk organization transported them to Philadelphia either by bus or by plane. The brothers then confiscated the immigration documents and summonses from the workers and put them to work at night cleaning large chain stores, such as Target and Walmart, as well as smaller stores.

Throughout their employment with the brothers, the workers lived with up to five people in one room, slept on dirty mattresses on the floor, and were rarely, if ever, paid. None of the victims was paid what was promised and they were told that they had to continue working until their debts, ranging from $10,000 to $50,000, were paid. Workers were allegedly struck and beaten, sometimes in the presence of others, if they attempted to quit or leave the employ of the Botsvynyuk brothers. According to the indictment, one female worker was brutally raped on several occasions. After some workers escaped, Omelyan Botsvynyuk resorted to extorting the workers' families in Ukraine, threatening them with harm if the workers did not return to work or pay their debts.

Omelyan Botsvynyuk, 51, was arrested in Germany; Stepan Botsvynyuk, 35, was arrested in Philadelphia; Mykhaylo and Yaroslav Botsvynyuk, 41, were arrested in Canada. Dmytro Botsvynyuk remains in Ukraine, a country that has not entered into an extradition treaty with the United States. The defendants in Canada and Germany were arrested pursuant to Interpol arrest warrants and are in the process of being extradited to the United States to face the charges.

If convicted of all charges, the defendants face the following maximum penalties: Omelyan Botsvynyuk - life in prison and a $750,000 fine; Stepan Botsvynyuk - 40 years in prison and a $500,000 fine; and defendants Mykhaylo, Dmytro, and Yaroslav Botsvynyuk - 20 years in prison and a $250,000 fine.

The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the Department of Labor and Racketeering - Office of Inspector General, Toronto Police Department, German National Police, Berlin State Police, Ukraine Security Service, US National Central Bureau, the Department of Justice Office of International Affairs, and INTERPOL. It is being prosecuted by Assistant U.S. Attorney Daniel A. Velez, and Trial Attorney Eric Gibson of the Civil Rights Division.

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