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Thursday, July 3, 2014

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.

Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Saturday, August 12, 2017

Yesterday, the state government of Victoria, Australia announced their decision to trial self-driving vehicles on two of the state’s major connecting motorways, the CityLink and Tullamarine Freeway. The trial is to use autonomous vehicles from automobile companies including BMW, Mercedes-Benz, Volvo, and Tesla. The two-year trial is to have three phases.

The cars are to drive alongside commuters, but in public testing a driver is always to be present, as Victorian law requires drivers always keep a hand on the steering wheel. However, in occasional closures of the Burnley Tunnel, with no other drivers to endanger, the cars are to be tested with nobody in the vehicle.

Lane assist, cruise control, and recognition of traffic signs are in the trial’s first phase, expected to complete before the end of the year. This includes monitoring how the driver-less cars respond to road conditions, including lane markings and electronic speed signs.

“Victoria is at the forefront of automated vehicle technology — we’re investing in this trial to explore ways that this technology can be used to reduce crashes and keep people safe on our roads”, said Luke Donnellan, the Victorian Minister for Roads and Road Safety. He noted, “Ninety per cent of the fault of accidents is human error […] so we know that if we can take out human error we will have less accidents”.

Tim Hansen, Victoria Police’s Acting Assistant Commissioner, said that police had founded a project team to investigate how self-driving vehicles would change policing on roads. “Can we intercept vehicles more safely to avoid pursuits and ramming?”, he asked.

The trial is a partnership between the state government, Victoria’s road management authority VicRoads, owner of the CityLink toll road Transurban, and insurance company RACV.

Thursday, April 9, 2009

Protests which began Monday escalated to a riot on Wednesday consisting of over 10,000 people in Chi?in?u, the capital of Moldova, protesting the results of Sunday’s 2009 Moldovan parliamentary election, which showed an apparent, narrow victory for the Communist Party (Partidul Comuni?tilor din Republica Moldova, PCRM). Demonstrators claim the victory was the result of electoral fraud.

The demonstration escalated to a “flash mob” of between 10,000 to 15,000 communicating via online tools like email, micro-blogging tool Twitter, and social-networking website Facebook. “We sent messages on Twitter but didn’t expect 15,000 people to join in. At the most we expected 1,000”, said Oleg Brega of the activist group Hyde Park.

Police deployed tear gas and water cannons, and fired blanks into the crowd. The rioters threw stones at the riot police and took control of the parliament building and presidential office. A bonfire was built out of parliamentary furniture and all windows below the 7th floor were broken.

Approximately one hundred protesters and 170 police officers are reported as injured. There have been conflicting reports as to whether a female protester died during the altercation.

193 protesters “have been charged with looting, hooliganism, robbery and assault,” said an Interior Ministry spokesperson. This announcement sparked another protest by those demanding the release for those detained.

There is wide speculation about who was to blame for the rioting.

President Vladimir Voronin has expelled the Romanian ambassador from Moldova, blaming Romania for the violent protests. “We know that certain political forces in Romania are behind this unrest. The Romanian flags fixed on the government buildings in Chisinau attest to this” said Voronin. “Romania is involved in everything that has happened.“ Voronin also blamed the protests on opposition leaders who used violence to seize power, and has described the event as a coup d’état.

Protesters initially insisted on a recount of the election results and are now calling for a new vote, which has been rejected by the government. Rioters were also demanding unification between Moldova and Romania. “In the air, there was a strong expectation of change, but that did not happen”, said OSCE spokesman Matti Sidoroff.

“The elections were fraudulent, there was multiple voting” accused Chi?in?u mayor Dorin Chirtoac? of the Liberal Party. “It’s impossible that every second person in Moldova voted for the Communists. However, we believe the riots were a provocation and we are now trying to reconcile the crowd. Leaders of all opposition parties are at the scene,” said Larissa Manole of the Liberal Democratic Party of Moldova.

The Organisation for Security and Cooperation in Europe (OSCE) proclaimed the PCRM to have won 61 seats in initial counts, enough to guarantee a third term in power for Voronin, who has held the position since 2001. But the Central Election Commission has received evidence of election violations, according to RIA Novosti, and upon recounts conducted of disputed polls, the commission reported that the Communists achieved 49.48% of the Moldovian vote, giving them 60 parliamentary seats — one short of the total needed to win the presidential election. “The electoral commission also granted opposition parties permission to check voter lists, fulfilling one of their chief demands,” said Yuri Ciocan, Central Election Commission secretary.

Voronin will step down in May, however his party could elect a successor with 61 parliamentary seats without any votes from outside parties as well as amend the Constitution. With the PCRM garnering 60 seats, the opposition will have a voice in the presidential election for a new successor.

The western part of Moldova was a part of Romania from the Romania’s independence until the region was detached by the USSR in 1940 to form the Moldavian Soviet Socialist Republic. On independence in 1990 the country sought union with Romania but the eastern, Russian- and Ukrainian-inhabited areas of the country declared themselves independent from Moldova and formed the state of Transnistria and movement toward union was halted.

Moldova is Europe’s poorest country, where average income is less than $250 (£168) a month. The country’s neighbours are Romania and Ukraine. Romania is a European Union (EU) state.

Wednesday, June 14, 2006

Spain won its first World Cup Group H match against Ukraine 4-0 in Leipzig, Wednesday.

Luis Aragones might like to play the yellow shirted Ukrainians again because after only one quarter of the match it looked effectively over as a contest. And a red card against the Ukraine team just after half-time helped the red shirts complete the rout with two more goals.

Spain, with only Carles Puyol in the starting line from a team that reached the 2002 World Cup quarter finals, had been unbeaten in 21 matches under Aragones. Spain’s superb form showed in a great understanding between players with passes meeting runs all over the pitch.

After four minutes Ukraine’s long free kick from the left touchline found Vladimir Yezerskiy, but he could not direct his header toward goal. Ukraine got flagged offside six times in the first period.

Then two goals came in a five minute spell for Spain. On 13 minutes Marcos Senna drove a shot from long range which was tipped over by Oleksandr Shovkovskyi. The result, a corner, was met by a stooping Xabi Alonso at the near post who deflected the ball into the net.

Four minutes later a free kick was awarded against Andriy Rusol 30 yards from goal. The tall, dark-haired Ukrainian number six stood in the wall and promptly received the shot from David Villa on the side of his head. Shovkovskyi, in mid-flight, could not adjust his position to stop the ball going in the net.

Two goals down Ukraine did not get another chance on goal until the second half when substitute Sergi Rebrov shot over on 72 minutes. Illustrating a one-sided game, Spain had 10 shots on target to Ukraine’s two.

David Villa, with Luis Garcia and Fernando Torres was one of Spain’s three forwards. He got his second goal on 47 minutes when he fired low to Shovkovskyi’s right from the penalty spot.

Vladyslav Vashchuk was sent off for his foul on Torres; as the Athletico Madrid striker burst through the Ukrainian defence the referee judged Vaschuk had pulled on the Spainard’s shorts.

The first three goals were from still ball set-ups but the brilliance of the fourth showed the team work, movement and accurate passes that characterised the play of the Spainish.

Curly-haired Puyol charged from the half-way line and gave the ball off in field; he ran more and received the ball again near the penalty area; headed into the path of Torres, and the 22-year-old shot right footed past Shovkovskyi.

In the 77th minute 19-year-old Cesc Fabregas was given a substitute appearance in the game. The midfield player became Spain’s youngest player to play at a World Cup.

Four goals down, Ukrainian coach Oleg Blokhin was shown on television smiling. He might reflect that Tunisia and Saudia Arabia, the two other teams in Group H, had not been highly touted as potential World Cup winners.

Friday, February 5, 2010

The U.S. National Transportation Safety Board (NTSB) has determined that the captain of Colgan Air Flight 3407, which crashed nearly a year ago outside Buffalo, New York during its approach to Buffalo Niagara International Airport, “inappropriately responded to the activation of the stick shaker, which led to an aerodynamic stall from which the aeroplane did not recover,” according to a statement issued by the NTSB.

The flight, operating as a codeshare with Continental Airlines under their Continental Connection brand, crashed last year on February 12, 2009 in Clarence Center, New York. The Bombardier Dash 8 Q400, crashed into a residence killing everyone on board as well as one on the ground.

The NTSB has blamed pilot error and poor training for the crash, noting that the plane’s captain, Marvin Renslow, “had not established a good foundation of attitude instrument flying skills early in his career, and his continued weaknesses in basic aircraft control and instrument flying were not identified and adequately addressed.” Renslow’s career spanned two decades and had failed five performance checks during that time. Colgan Air was only aware of three. Colgan said had they known about the other two, they would not have hired Renslow in 2005.

Colgan Air responded to the NTSB report in a letter: “They [the pilots] knew what to do in the situation they faced that night a year ago, had repeatedly demonstrated they knew what to do, and yet did not do it. We cannot speculate on why they did not use their training in dealing with the situation they faced.”

The Board added that Renslow’s response to the “stick shaker activation should have been automatic, but his improper flight control inputs were inconsistent with his training and were instead consistent with startle and confusion. The 24-year-old first officer, Rebecca Lynne Shaw, was noted for her young age and lack of experience.

The Board also concluded that “the pilots’ performance was likely impaired because of fatigue.” Renslow and Shaw had spent the night at the crew lounge at Newark Liberty International Airport in violation of Colgan Air’s company policies. However, the board voted down making fatigue a contributing factor. Shaw, the first officer, had flown the previous night on two separate planes from the Pacific Northwest where she lived with her parents. Shaw also appeared to be suffering from a bad cold.

However, the report also criticized Colgan saying that the airline, “did not pro-actively address the pilot fatigue hazards associated with operations at a predominantly commuter base.” Adding that, “Operators have a responsibility to identify risks associated with commuting, implement strategies to mitigate these risks, and ensure that their commuting pilots are fit for duty.”

Another factor brought up the by the NTSB was the violation of the Federal Aviation Administration’s (FAA) sterile cockpit rule. It was noted that first officer Shaw had sent two text messages before take-off at Newark. The second message was sent two minutes before take-off.

Prior to landing, the cockpit voice recorder recorded that the pilots were holding a conservation that potentially distracted the captain from operating the plane. Robert Sumwalt, a member of the NTSB board said, “It was continuous and one-sided, with the captain doing most of the talking.” He added, “It was as if the flight was just a means for the captain to conduct a conversation with this young first officer.”

The chairwoman of the NTSB, Deborah Hersman, has noted that electronic devices are becoming a hazard to transportation. Hersman said, “Recent NTSB investigations have identified personal wireless technology use on the job. This phenomenon is becoming more widespread, and these phone calls, texts and other distractions have deadly consequences and must be addressed with all due haste by the transportation industry.”

The agency noted that distractions from electronics have played a part in many recent accidents and incidents, such as the August 2009 mid-air collision between a small private Piper aeroplane and a tour helicopter over the Hudson River in New York City killing all involved. The NTSB noted that one of the air traffic controllers was making a phone call and failed to warn the aircraft of the conflict that existed between each other in their airspace. However, this was disputed by the National Air Traffic Controllers Association which represents air traffic controllers nationwide. The NTSB later retracted some of its statements.

The other notable incident was that of Northwest Airlines Flight 188 in October, that overshot its destination of Minneapolis-Saint Paul International Airport by 150 miles (241 km) before the pilots noticed. The pilots claimed they were checking schedules on their laptop computers in violation of basic piloting rules, the sterile cockpit rule and the policy of Delta Air Lines, who had recently acquired Northwest.

The NTSB’s last board meeting which was held two weeks ago, about the 2008 train collision between a Metrolink commuter rail train and a Union Pacific freight train in Chatsworth, California also pertained to distractions by electronic devices. In the statement released by the NTSB for that meeting, the board stated that “according to records from the wireless provider, on the day of the accident, while on duty, both the Metrolink engineer and the Union Pacific conductor used wireless devices to send and receive text messages.” The NTSB has recommended that audio and video recorders be installed in locomotive and control cabs because of the collision.

Friday, February 17, 2006

Buffalo, New York —Savarino Construction Services Corp. has proposed a $7 million hotel project at the Forest and Elmwood Avenue intersection, according to The Buffalo News. The proposal calls for a 5-story, 45,000 square-foot 80-room hotel with underground parking for at least 50 vehicles, and 4,500 square-feet of retail space on the lower level.

Hans Mobius, the owner of the five properties to be purchased in the plan (1109 to 1121 Elmwood), reportedly signed a contract with Savarino to assemble the development.

“We saw a huge opportunity to bring something to the Elmwood Village that will make sense and bring a service that’s currently not available,” said Eva Hassett, vice president of Savarino. “Elmwood is such a wonderful place to eat, shop, walk and spend time. We believe this project will add to that vibrant environment.”

Some business owners in the area see it differently. Wikinews interviewed 2 of the 4 owners whose business’s would be demolished if the development goes through.

Nancy Pollina, of Don Apparel at 1119 Elmwood, who found out about the development only yesterday, said she is “utterly” against the proposal. Her apparel shop has stood at the same location for nearly 14 years. She has volunteered in the community, and helped create several gardens around bus shelters in the city, and served on Forever Elmwood Board for six years as head of Beautification. Patty Morris co-owns Don Apparel with Pollina.

“To say this is a good looking project, I want to say the emperor has no clothes. This [project] does not take into consideration the needs of the college students. I have been told by college students, these shops here, are the reason they leave the campus,” said Mrs. Pollina.

Buffalo State College is 500-feet from the intersection.

Michael Faust, the owner of Mondo Video said, “Well, I do not really want to get kicked out of here. The landlord was very open, and the deal he made with me when I moved in here was ‘the rent is cheap and I [the landlord] will not fix anything and that will not change.'” Faust said he first learned of the development plan, “about 48 hours ago. I found out on Tuesday when the Buffalo News called and asked for my opinion on this.” Faust has not said if he will make plans to relocate. “We have to see if this [house] is going to get knocked down first,” said Faust.

An “informational” meeting, where citizens can voice opinions and learn about the proposal, will be held on Tuesday February 21, 2006 at 5:00pm (eastern), at the Burchfield-Penney Art Center Gallery at Buffalo State College, Rockwell Hall.

Executive director of Forever Elmwood Corporation, Justin P. Azzarella would not comment on whether or not the organization supports the development, saying, “you will just have to come to the meeting.”

Forever Elmwood Corp. is designed to preserve and protect the unique and historic nature of Elmwood Avenue and its surrounding neighborhoods and encourage neighborhood commercial revitalization. The organization was founded in 1994.

Nearly two years ago, the Forever Elmwood Corp. assisted in the blocking of the demolition of the Edward Atwater house at 1089 Elmwood next to Pano’s Restaurant which is at 1081 Elmwood. Owner Pano Georgiadis wanted to expand his restaurant onto the property where the house now stands, but the Common Council denied his permit to demolish saying the house is a historical landmark and needs to be protected. Georgiadis, who has a bleeding ulcer, said that all the court cases landed him in the hospital. “I got a bleeding ulcer, and since then, I don’t care about this house anymore, or this city. I just go to work every day. I think [preservationists] are parasites,” said Georgiadis.

Georgiadis will not be attending Tuesday’s meeting saying, “I will be out of town.”

In 1995 Hans Mobius proposed a plan to develop a Walgreens, that was to be placed in the same location, but residents and business owners shot down the proposal. Walgreens eventually withdrew its request for a variance after pressure from the community.

Tuesday, February 23, 2010

Najibullah Zazi, an Afghan immigrant, pleaded guilty to conspiring to use weapons of mass destruction, conspiring to commit murder in a foreign country and providing material support for a terrorist organisation, on Monday in United States District Court in Brooklyn, New York. He was a part of the plot to detonate explosives in New York’s subway system in late 2009. He admitted participation in a suicide attack conspiracy led by the Al-Qaeda. According to him, this was in protest of US presence in Afghanistan. He will be sentenced on June 25 and faces a possible life term without parole.

Zazi said in court he was recruited by Al-Qaida in Peshawar, while on a visit to join anti-American insurgency in 2008 and went into a training camp in Waziristan. He refused to identify his trainers and recruiters. Zazi had decided “I would sacrifice myself to bring attention to what the U.S. military was doing to civilians in Afghanistan.”

He admitted receiving weapons training at the camp and knowledge about explosives. He tried to build homemade explosives using cosmetic products. Zazi then went to New York just before the eighth anniversary of the September 11 attacks. He planned to assemble the bombs there and detonate them in the following days.

Attorney General Eric H. Holder Jr. said at a news conference that the Zazi case represented one of the most serious threats to the United States since the 9/11 attacks. “Were it not for the combined efforts of the law enforcement and intelligence communities, it could have been devastating,” he said. “This attempted attack on our homeland was real, it was in motion and it would have been deadly.”

Zazi, who was born in Afghanistan, raised in Pakistan and later attended high school in Queens, New York and lived in Colorado, had cooperated with the authorities in recent weeks and had worked out an agreement with them regarding his plea bargain.

Sunday, February 13, 2005

New York –”Buy cheap Viagra through us – no prescription required!” Anyone with an active email account will recognize lines like this one. According to some reports, unsolicited advertisements (spam) for Viagra and similar drugs account for one in four spam messages.

Ever since pharmaceutical giant Pfizer promised to cure erectile dysfunction once and for all with its blue pills containing the drug sildenafil citrate, spammers have tried to tap into male anxiety by offering prescription-free sales of unapproved “generic” Viagra and clones such as Cialis soft tabs. Legislation like the U.S. CAN-SPAM act has done little to stem the tide of email advertising the products.

Now Pfizer has entered a pledge with Microsoft Corporation, the world’s largest software company, to address the problem. The joint effort will focus on lawsuits against spammers as well as the companies they advertise. “Pfizer is joining with Microsoft on these actions as part of our shared pledge to reduce the sale of these products and to fight the senders of unsolicited e-mail that overwhelms people’s inboxes,” said Jeff Kindler, executive vice president at Pfizer.

Microsoft has filed civil actions against spammers advertising the websites CanadianPharmacy and E-Pharmacy Direct. Pfizer has filed lawsuits against the two companies, and has taken actions against websites which use the word “Viagra” in their domain names. Sales of controlled drugs from Canadian pharmacies to the United States are illegal, but most drugs sold in Canada have nevertheless undergone testing by the U.S. Food and Drug Administration. This is not the case for many of the Viagra clones sold by Internet companies and manufactured in countries like China and India. While it was not clear that CanadianPharmacy was actually shipping drugs from Canada, Pfizer’s general counsel, Beth Levine, claimed that the company filled orders using a call center in Montreal, reported the Toronto Star.

For Microsoft’s part, they allege that the joint effort with Pfizer is part of their “multi-pronged attack on the barrage of spam.” As the creator of the popular email program Outlook, Microsoft has been criticized in the past for the product’s spam filtering process. Recently, Microsoft added anti-spam measures to its popular Exchange server. Exchange 2003 now includes support for accessing so-called real-time block lists, or RTBLs. An RTBL is a list of the IP addresses maintained by a third party; the addresses on the list are those of mailservers thought to have sent spam recently. Exchange 2003 can query the list for each message it receives.