Jackson's Doctor Took 20 Minutes To Call 911...Why The Delay??

(I'm still waiting for his trial to begin. Legalized Drug Pusher!)




Sources: CNN, MSNBC

G.E. Bank Benefits From Corporate Loopholes, Obama Admin. Vows To Close Such Loopholes

Washington Post----

General Electric, the world's largest industrial company, has quietly become the biggest beneficiary of one of the government's key rescue programs for banks.

At the same time, GE has avoided many of the restrictions facing other financial giants getting help from the government.

The company did not initially qualify for the program, under which the government sought to unfreeze credit markets by guaranteeing debt sold by banking firms. But regulators soon loosened the eligibility requirements, in part because of behind-the-scenes appeals from GE.

As a result, GE has joined major banks collectively saving billions of dollars by raising money for their operations at lower interest rates. Public records show that GE Capital, the company's massive financing arm, has issued nearly a quarter of the $340 billion in debt backed by the program, which is known as the Temporary Liquidity Guarantee Program, or TLGP. The government's actions have been "powerful and helpful" to the company, GE chief executive Jeffrey Immelt acknowledged in December.

GE's finance arm is not classified as a bank. Rather, it worked its way into the rescue program by owning two relatively small Utah banking institutions, illustrating how the loopholes in the U.S. regulatory system are manifest in the government's historic intervention in the financial crisis.

The Obama administration now wants to close such loopholes as it works to overhaul the financial system. The plan would reaffirm and strengthen the wall between banking and commerce, forcing companies like GE to essentially choose one or the other.

"We'd like to regulate companies according to what they do, rather than what they call themselves or how they charter themselves," said Andrew Williams, a Treasury spokesman.

GE's ability to live in the best of both worlds -- capitalizing on the federal safety net while avoiding more rigorous regulation -- existed well before last year's crisis, because of its unusual corporate structure.

Banking companies are regulated by the Federal Reserve and not allowed to engage in commerce, but federal law has allowed a small number of commercial companies to engage in banking under the lighter hand of the Office of Thrift Supervision. GE falls in the latter group because of its ownership of a Utah savings and loan.

Unlike other major lenders participating in the debt guarantee program, including Bank of America, Citigroup and J.P. Morgan Chase, GE has never been subject to the Fed's stress tests or its rules for limiting risk. Also unlike firms that have received bailout money in the Troubled Assets Relief Program, or TARP, GE is not subject to restrictions such as limits on executive compensation.

The debt guarantee program that GE joined is administered by the Federal Deposit Insurance Corp., which was reluctant to take on the new mission, according to current and former officials who were not authorized to speak publicly. The FDIC also initially resisted expanding the pool of eligible companies, fearing it would add more risk to the program, the officials said.

Despite those misgivings, there have been no defaults in the loan guarantee program. It has helped buoy confidence in the credit markets and enabled vital financial firms to raise cash even during the darkest days of the economic crisis. In addition, the program has raised more than $8 billion in fees.

"The TGLP program has been a moneymaker for us," FDIC chairman Sheila C. Bair has said. "So I think there have been some benefits to the government and the FDIC."

For its part, GE said that it properly applied for and qualified for the program. "We were accepted on the merits of our application," company spokesman Russell Wilkerson said.

The Cash Cow:

The current good fortune of General Electric, ranked by Forbes as the world's largest company, has roots in the Great Depression, when it created a consumer finance arm so that cash-starved families could buy its appliances.

What grew from those beginnings is now a powerful engine of profit, accounting for nearly half of its parent's net earnings in the past five years. GE may be better known for light bulbs and home appliances, but GE Capital is one of the world's largest and most diverse financial operations, lending money for commercial real estate, aircraft leasing and credit cards for stores such as Wal-Mart. If GE Capital were classified as a banking company, it would be the nation's seventh largest.

Unlike the banking giants, GE Capital is part of an industrial company. That allows GE to offer attractive financing to those who buy its products.

At the height of last fall's financial crisis, GE's cash cow became a potential liability. As credit markets froze, analysts feared that GE Capital was vulnerable to losing access to cheap funding -- largely commercial paper, or short-term corporate IOUs sold to large investors.

Company officials projected confidence. "While GE Capital is not immune from the current environment," Immelt said in October, "we continued to outperform our financial-services peers." Behind the scenes, they urgently sought a helping hand for GE Capital. One key hope was a rescue plan taking shape at the FDIC.

The program emerged during a hectic weekend last October as regulators scrambled to announce a series of rescue efforts before the markets opened.

They found a legal basis for the program in a 1991 law: If a faltering bank posed "systemic risk," then the FDIC, the Fed, the Treasury secretary and the president could agree to give the FDIC more authority to rescue a failing institution. The financial regulators applied the statute broadly, so it would cover the more than 8,000 banks in the FDIC system.

The FDIC hurried to approve the program Oct. 13.

"This was crisis management on steroids," said a person familiar with the process. "A lot was made up on the fly."

The author of the systemic-risk provision, Richard Carnell, now a law professor at Fordham University, says it was intended to apply to a single institution, and that in their rush to find legal footing for unprecedented new programs, regulators "turned the statute on its head."

The FDIC launched the program Tuesday, Oct. 14, the same day Treasury officials announced large capital infusions into nine of the country's banking giants under TARP. That day, the FDIC also expanded its deposit guarantees to a broader range of accounts.

The 'Cliff' Ahead, Obama Administration Vows to close Loophole:

Two weeks ago, the Obama Administration said it would seek to eliminate the Office of Thrift Supervision and force companies like GE to focus on commerce or banking, but not both. That could require the industrial giant to spin off GE Capital.

Last week, Immelt said GE had no intention of doing that. "GE is and will remain committed to GE Capital, and we like our strategy," he said in a memo to staff.

In its proposal to overhaul financial regulation, the Treasury Department pointed out that some firms operating under the existing rules, including collapsed companies such as American International Group, "generally were able to evade effective consolidated supervision and the long-standing policy of separating banking from commerce."

GE's Wilkerson said the company generally supports regulatory reform but thinks that it should be permitted to retain its structure. "Bank reform has historically included grandfathering provisions upon which investors have relied," he said, "and there is no reason this settled principle should not be followed here." He said the company "didn't have any choice" but to have OTS as its regulator.

The company also objects to the Treasury's proposal to force firms to separate banking and commerce because that issue "had nothing to do with the financial crisis," Wilkerson said.

Wilkerson said GE has remained profitable and avoided some of the exotic financial products that contributed to losses at other institutions. He also said that GE performed an internal stress test this year and found that its capital position was "quite strong by comparison to the banks."

The FDIC has been working to wean financial institutions off the program. The TLGP originally was slated to end in June, but at the Treasury's request the FDIC agreed to extend it until Oct. 31. Some participants have stopped using the program, but GE Capital continues to do so for the overwhelming majority of its debt.

Much of the $340 billion in debt will come due in 2012, the year the FDIC guarantees expire. At that point, known in banking circles as the "cliff," the agency will have to make good if companies such as GE are unable to honor their obligations. FDIC officials say they are comfortable that the agency has collected more than enough money to cover potential losses.

Sources: Washington Post, CBS News, Whitehouse.gov, Flickr

Bernie Madoff Sentenced To 150 Years In Prison!

MSNBC----

NEW YORK - Bernard Madoff was sentenced Monday to 150 years for the multibillion-dollar fraud scheme he perpetrated.

Before the sentencing, Madoff apologized to his family and to the victims of his multibillion-dollar fraud scheme Monday at a hearing for his sentencing for the investment swindle.

The 71-year-old financier said at the hearing that he “will live with this pain, this torment, for the rest of my life.”

Madoff says that he dug himself “deeper into a hole” as the scheme progressed. He also said he cannot offer an excuse for his behavior.

Attorney Ira Sorkin says the 150 years in prison recommended by prosecutors or the 50 years recommended by the federal probation department are excessive.

Madoff has pleaded guilty to securities fraud and other charges in March and has been jailed ever since.

Earlier, victims of the fraud described their ruined lives Monday to the judge sentencing the 71-year-old former Nasdaq stock market chairman.

Several hundred spectators crowded the courtroom in Manhattan to witness the sentencing of Madoff for the fraud scheme that wiped out fortunes, ruined charities and foundations and pushed some investors to commit suicide.

Madoff, wearing a dark suit, white shirt and a tie, sat and listened as emotional witnesses described how he spoiled their security, and they urged U.S. District Judge Denny Chin to send him to prison for life.

“Life has been a living hell. It feels like the nightmare we can’t wake from,” said Carla Hirshhorn.

“He stole from the rich. He stole from the poor. He stole from the in between. He had no values,” said Tom Fitzmaurice. “He cheated his victims out of their money so he and his wife Ruth could live a life of luxury beyond belief.”

Dominic Ambrosino called it an “indescribably heinous crime” and urged a long prison sentence so “will know he is imprisoned in much the same way he imprisoned us and others.”

He added: “In a sense, I would like somebody in the court today to tell me how long is my sentence.”

Chin said the Probation Department had recommended a 50-year sentence be given Madoff.

Madoff’s lawyer has asked a judge to give his client 12 years behind bars. Prosecutors sought a 150-year prison term.

Madoff “will speak to the shame he has felt and to the pain he has caused,” his attorney, Ira Sorkin, said in court papers.

“We seek neither mercy nor sympathy,” Sorkin wrote. But the lawyer urged Chin to “set aside the emotion and hysteria attendant to this case” as he determines the sentence.

Prosecutors argued in court papers Friday that federal sentencing guidelines allow the 150-year sentence. Any lesser term, they said, should at least be the equivalent of a life sentence.

“The sheer scale of the fraud calls for severe punishment,” the prosecutors wrote.

The jailed Madoff already has taken a severe financial hit: Last week, a judge issued a preliminary $171 billion forfeiture order stripping Madoff of all his personal property, including real estate, investments, and $80 million in assets his wife Ruth had claimed were hers. The order left her with $2.5 million.

The terms require the Madoffs to sell a $7 million Manhattan apartment where Ruth Madoff still lives. An $11 million estate in Palm Beach, Fla., a $4 million home in Montauk and a $2.2 million boat will be put on the market as well.

Before Madoff became a symbol of Wall Street greed, he had earned a reputation as a trusted money manager with a Midas touch. Even as the market fluctuated, clients of his secretive investment advisory business — from Florida retirees to celebrities such as Steven Spielberg, actor Kevin Bacon and Hall of Fame pitcher Sandy Koufax — for decades enjoyed steady double-digit returns.

But late last year, Madoff made a dramatic confession: Authorities say he pulled his sons aside and told them it was “all just one big lie.”

Madoff pleaded guilty in March to securities fraud and other charges, saying he was “deeply sorry and ashamed.” He insisted that he acted alone, describing a separate wholesale stock-trading firm run by his sons and brother as honest and legitimate.

Aside from an accountant accused of cooking Madoff’s books, no one else has been criminally charged. But the family, including his wife, and brokerage firms who recruited investors have come under intense scrutiny by the FBI, regulators and a court-appointed trustee overseeing the liquidation of Madoff’s assets.

The trustee and prosecutors have sought to go after assets to compensate thousands of burned victims who have filed claims against Madoff. How much is available to pay them remains unknown, though it’s expected to be only a fraction of the astronomical losses associated with the fraud.

The $171 billion forfeiture figure used by prosecutors merely mirrors the amount they estimate that, over decades, “flowed into the principal account to perpetrate the Ponzi scheme.” The statements sent to investors showing their accounts were worth as much as $65 billion were fiction.

The investigation has found that in reality, Madoff never made any investments, instead using the money from new investors to pay returns to existing clients — and to finance a lavish lifestyle for his family.

In bankruptcy filings, Trustee Irving Picard say family members “used customers accounts as though they were their own,” putting Madoff’s maid, boat captain and house-sitter in Florida on the company payroll and paying nearly $1 million in fees at high-end golf clubs on Long Island and in Florida.

Picard has sought to reclaim ill-gotten gains by freezing Madoff’s business bank accounts and selling legitimate portions of his firm. (Its season tickets for the Mets went for $38,100.) He’s also sued big money managers and investors for billions of dollars, claiming they were Madoff cronies who also cashed in on the fraud.

The defendants include leading philanthropists Stanley Chais and Jeffry Picower — from whom Picard is seeking at least $5.1 billion alleged to have come out of victims’ pockets — and hedge fund manager J. Ezra Merkin. All have denied any wrongdoing.

Sources: MSNBC, Huffington Post

White Fire Fighters Win Reverse Discrimination Case, 5-4 Vote...U.S. Supreme Court Case Overturns Sotomayor's Decision

MSNBC----

WASHINGTON - The Supreme Court has ruled that white firefighters in New Haven, Conn., were unfairly denied promotions because of their race, reversing a decision that high court nominee Sonia Sotomayor endorsed as an appeals court judge.

New Haven was wrong to scrap a promotion exam because no African-Americans and only two Hispanic firefighters were likely to be made lieutenants or captains based on the results, the court said Monday in a 5-4 decision. The city said that it had acted to avoid a lawsuit from minorities.

The ruling could alter employment practices nationwide, potentially limiting the circumstances in which employers can be held liable for decisions when there is no evidence of intentional discrimination against minorities.

"Fear of litigation alone cannot justify an employer's reliance on race to the detriment of individuals who passed the examinations and qualified for promotions," Justice Anthony Kennedy said in his opinion for the court. He was joined by Chief Justice John Roberts and Justices Samuel Alito, Antonin Scalia and Clarence Thomas.

In dissent, Justice Ruth Bader Ginsburg said the white firefighters "understandably attract this court's sympathy. But they had no vested right to promotion. Nor have other persons received promotions in preference to them."

Justices Stephen Breyer, David Souter and John Paul Stevens signed onto Ginsburg's dissent, which she read aloud in court Monday.

Kennedy's opinion made only passing reference to the work of Sotomayor and the other two judges on the 2nd U.S. Circuit Court of Appeals who upheld a lower court ruling in favor of New Haven.

But the appellate judges have been criticized for producing a cursory opinion that failed to deal with "indisputably complex and far from well-settled" questions, in the words of another appeals court judge, Sotomayor mentor Jose Cabranes.

"This perfunctory disposition rests uneasily with the weighty issues presented by this appeal," Cabranes said, in a dissent from the full 2nd Circuit's decision not to hear the case.

As the court wraps up for the summer, decisions are also expected today in two other high profile cases.

One involves campaign finance law. The court is considering whether a movie that was critical of Hillary Rodham Clinton during her presidential campaign should be subject to the same regulations as campaign ads.

The scathing 90-minute documentary about the former New York senator and current secretary of state was made by a conservative group. It wanted to air television ads in important Democratic primary states and makes the movie available to cable subscribers on demand, without complying with federal campaign finance law.

The Federal Election Commission and a lower court in Washington have said the not-for-profit group, Citizens United, must abide by campaign finance restrictions. The high court's conservative justices appeared especially skeptical of that view when the case was argued in March.

The other case concerns states' ability to investigate alleged discrimination in lending by national banks.

The Obama administration says federal law prohibits states from looking at the lending practices of those banks, even under state anti-discrimination laws.

Federal courts have so far blocked an investigation begun by New York, which is backed by the other 49 states, of whether minorities were being charged higher interest rates on home mortgage loans by national banks with branches in New York.

President Obama's proposed overhaul of financial regulation could make the outcome of the case less important. The proposal would create a consumer protection office and states would be empowered to enforce their own laws, with some degree of coordination with the new federal agency.

In addition to the three pending decisions, the court also is expected to announce whether it will hear several important cases in its term that begins in October.

Among those cases are:

* A plea by victims of the Sept. 11 attacks to reinstate a lawsuit against Saudi Arabia and several Saudi princes over charitable donations that allegedly were funneled to al-Qaida.

* A request by Chinese Muslims who continue to be held at Guantanamo Bay that the court put teeth into last year's ruling granting detainees some rights by allowing a judge to order their release into the United States. The 13 Uighurs who remain at the U.S. naval base in Cuba may be sent to the tiny Pacific nation of Palau, a move that probably would end their court case.

* A bid by convicted cop killer Troy Davis of Georgia to get a new court hearing so that he can present evidence suggesting his innocence. Seven of nine key witnesses against Davis have recanted their earlier testimony, but state and federal courts have so far refused to order a new hearing.

* Once their work is done, four justices are heading to Europe for teaching gigs. Roberts will be in Galway, Ireland. Justice Samuel Alito will travel to Innsbruck, Austria. Justice Ruth Bader Ginsburg is heading to Rome. Justice Anthony Kennedy will spend July in Salzburg, Austria, for the 20th straight year.

* In keeping with his practice of shunning the spotlight, Souter is expected to return to his home in New Hampshire with little fanfare.


Supreme Court Overrules Sotomayor's Firefighter Decision, 5-4 Vote

A group of 20 New Haven firefighters won a major victory from the U.S. Supreme Court Monday morning in their reverse discrimination lawsuit against the city.

On a 5-4 vote, the court ruled with the firefighters. One Hispanic and 19 white firefighters (the Ricci of Ricci vs. DeStefano) say they were denied promotions after passing an exam. The city of New Haven (and Mayor John DeStefano) threw out the test results because no minorities scored high enough for a promotion. That, the city expressed, would leave them open for discrimination lawsuits from black firefighters.

The court resolved the city's fear of litigation can not justify the refusal to apply the test, reports Scotusblog.com.

"We conclude that race-based action like the City’s in thiscase is impermissible under Title VII," wrote Justice Anthony Kennedy in the majority opinion.

The case is expected to have wide-ranging implications for employment law.

Monday is also Associate Justice David Souter's final day on the court. President Obama's choice to replace Justice Souter, Judge Sonia Sotomayor, was part of a three-judge panel that rejected an appeal by the group of New Haven firefighters. This decision reverses the panel's verdict that the city was correct in dismissing the test results.


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Sources: MSNBC, Day Life, Google Maps

Michael Jackson's Last Tour Rehearsals Filmed....His Final Album?

MTV News, The Wrap, MSNBC----

Following Michael Jackson's death on Thursday, 750,000 people who bought tickets to see him perform at the O2 in London will never get the chance to experience the stunning visual and musical spectacle the singer had in store for them. But, according to reports, AEG Live, the promoter of the "This Is It" 50-date residency, recorded enough of Jackson's rehearsal material to release at least one live CD/DVD."

Entertainment industry Web site The Wrap reports that Jackson's final rehearsal at the Staples Center on Wednesday was recorded in multi-camera, hi-definition video and multi-track audio.

The recording could be released as the singer's final album, according to unnamed sources close to the now scuttled tour, which was reportedly due to go around the globe following the O2 residency. The recordings were made as part of a deal cut by AEG Live with Jackson, which included plans to produce a live album and DVD of the singer performing his greatest hits. If the reports are true, the recording could help AEG Live recoup some of the estimated tens of millions of dollars it is expected to lose as a result of Jackson's untimely death. A spokesperson for AEG Live could not be reached for comment at press time.

The Wrap reported that Jackson had failed to appear at "many" of the scheduled rehearsals over the past two months, but he did appear at the full run-through on Wednesday in anticipation of the July 13 kick-off of the London shows. The final rehearsal reportedly included dancers, musicians and aerial performers, as well as Jackson suspended from a crane at one point and a 3-D view of a "Thriller"-inspired haunted mansion.

On Monday, USA Today pulled back the curtain on the closely guarded rehearsals, describing an over-the-top Jackson extravaganza that was to feature floating orbs, a flaming bed, lots of pyrotechnics, 20-foot-tall puppets, giant spiders and Jackson breaking out all his signature dance moves.

"He was trying, and succeeding, in structuring the biggest, most spectacular live production ever seen," said Johnny Caswell, co-owner of CenterStaging in Burbank, California, where Jackson worked on the show from late March to early June before shifting rehearsals to larger venues, according to the paper. "By the time he left my facility, he had graduated through several studios and was on a soundstage taking up 10,000 square feet," Caswell said. "They moved to The Forum, outgrew that and needed the height at Staples. The show was getting so damn big, they couldn't finish it in time. That's why they had to delay." Caswell said reports that Jackson had delayed the start of the engagement due to health problems were "nonsense," explaining that the ballooning size of the production caused the push back.

While it has been reported that Jackson had been taking a number of powerful prescription medications prior to his death and that he died following cardiac arrest, the Los Angeles County Coroner's Office has deferred determining his cause of death pending further toxicology tests.

Despite some suggestions that the frail singer with a history of medical problems might not have been strong enough to complete his first full-fledged tour in 12 years, according to USA Today, he was very engaged during Wednesday's final rehearsal at the Staples Center, where he worked with a crew of more than 80 dancers, choreographers, band members and crew to polish the show. Jackson began what would be his final rehearsal by putting on a headset and walking to an elevated platform to sing the song "Dangerous," at first a cappella, then joined by his band.

"Misfits of Magic" founder Ed Alonzo, who worked on illusions for Britney Spears' Circus tour, joined the Jackson show six weeks ago. He said he designed a number of stunning effects for the King of Pop, including a glowing glass sphere that would float around Jackson and then into the crowd during the opening song, 1982's "Wanna Be Startin' Somethin'." A version of "Dirty Diana" was to feature a flaming bed with a pole-dancing aerialist "playing the part of the fire," Alonzo said. After the fire woman pursued Jackson around the bed, she would tie him to the bed posts with gold rope, and a sheet of red fabric would spring up in front of him as he struggled in silhouette. When the sheet fell, it would be revealed that it was the woman struggling, not Jackson and he would then materialize on a stage in the middle of the arena.

"It was an amazing show," Alonzo said. "The thing was just days away from being perfected. It was incredible. Even though it was just a walk-through with the dancers, his moves were dead-on — the same Michael Jackson we (saw) through the years in music videos." Alonzo said that while Jackson seemed underweight, he appeared to be in good health and was energetic during the rehearsal. Jackson's manager, Frank DiLeo, told the Hollywood Reporter that after finishing the final run-through around midnight on Wednesday, Jackson was feeling good about the show. "He found me and said, 'Frank, I am so happy. ... This is really our time.' He put his arm around me," DiLeo said.


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Sources: MTV News, The Wrap, MSNBC, Google Maps

Janet Jackson, BET Awards Pays Tribute To Michael Jackson

MSNBC, MTV News----

Visit msnbc.com for Breaking News, World News, and News about the Economy

On Sunday night at the end of the BET Awards, Janet Jackson spoke publicly for the first time about the death of her beloved older brother, Michael.

Clad all in white, a visibly distraught Janet remained strong as she fought back tears while addressing the audience.

"My entire family wanted to be here tonight, but it was too painful," she told the crowd — including her father Joe Jackson — which cheered and stood on its feet. She then said her comments would be brief.

"To you, Michael is an icon," Janet said. "To us, Michael is family. He will forever live in all of our hearts.

"On behalf of my family and myself, thank you for all of your love, thank you for all of your support. We miss him so much. Thank you so much." She teared up toward the end of her comments.

Janet's thoughts led into a profound, almost gospel performance of "I'll Be There" by show host Jamie Foxx and Ne-Yo. The song — one of the Jackson 5's biggest hits — was a #1 hit single upon its original release in 1970 and again when covered by Mariah Carey for "MTV Unplugged" in 1992. On Sunday night, it was rendered quietly, with the duo accompanied only by a pianist. The performance was a strikingly different way to end an awards show, which usually conclude with big, rousing finales. It gave the show a dignified ending that perfectly suited the nature of the Jackson tribute.

During the BET aftershow telecast, when asked how he felt, Ne-Yo said: "I feel good, man. It's a sad day for music, but I've been telling people we should be celebrating his life, not mourning his death."

Sources: BET, MSNBC, MTV News

Jackson Family Goes To Court Today For Custody Of Michael's Children

MSNBC----

MSNBC’s Tamron Hall looks into where Michael Jackson’s kids are now and who will care for them. The Rev. Jesse Jackson and the pop star’s manager, Frank DiLeo, give an update on how the kids are coping.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Sources: MSNBC, Flickr

Bernie Madoff's Sentencing Day, He Finally Gets What He Deserves!

MSNBC----

(Sentencing day for Madoff)

Visit msnbc.com for Breaking News, World News, and News about the Economy

(A Madoff Victim Speaks.)

Visit msnbc.com for Breaking News, World News, and News about the Economy

NEW YORK - It was a crime of epic proportions: a multibillion dollar Ponzi scheme that wiped out fortunes, drained retirement nest eggs, ruined charities and foundations, and even pushed some investors to commit suicide.

Six months after the scandal came to light, the battle lines over Bernard Madoff’s punishment have been drawn. His lawyer insists 12 years in prison is enough. Prosecutors demand a 150-year sentence that would guarantee the 71-year-old spends his final days behind bars.

Some victims were expected to call for harsh punishment at the disgraced financier’s sentencing Monday in federal court in Manhattan. Ten have told U.S. District Judge Denny Chin they wish to speak out in court.

Several hundred spectators arrived at the courthouse early Monday morning to witness the sentencing, which is due to start at 10 a.m. ET in a ceremonial courtroom that seats 250 people.

At the hearing, Madoff “will speak to the shame he has felt and to the pain he has caused,” his attorney, Ira Sorkin, said in court papers.

“We seek neither mercy nor sympathy,” Sorkin wrote. But the lawyer urged Chin to “set aside the emotion and hysteria attendant to this case” as he determines the sentence.

There was no shortage of emotion in recent e-mails and letters to the judge by victims.

Carla and Stanley Hirschhorn wrote that they lost their life savings — “a living nightmare that we can’t wake up from.”

Miriam Siegman expressed outrage “at the spectacle of a man playing with his victims — thousands of them — who he knew were facing a kind of death, playing with them as a cat would with a mouse.”

Prosecutors argued in court papers Friday that federal sentencing guidelines allow the 150-year sentence. Any lesser term, they said, should at least be the equivalent of a life sentence.

“The sheer scale of the fraud calls for severe punishment,” the prosecutors wrote.

The jailed Madoff already has taken a severe financial hit: Last week, a judge issued a preliminary $171 billion forfeiture order stripping Madoff of all his personal property, including real estate, investments, and $80 million in assets his wife Ruth had claimed were hers. The order left her with $2.5 million.

The terms require the Madoffs to sell a $7 million Manhattan apartment where Ruth Madoff still lives. An $11 million estate in Palm Beach, Fla., a $4 million home in Montauk and a $2.2 million boat will be put on the market as well.

Before Madoff became a symbol of Wall Street greed, the former Nasdaq chairman had earned a reputation as a trusted money manager with a Midas touch. Even as the market fluctuated, clients of his secretive investment advisory business — from Florida retirees to celebrities such as Steven Spielberg, actor Kevin Bacon and Hall of Fame pitcher Sandy Koufax — for decades enjoyed steady double-digit returns.

But late last year, Madoff made a dramatic confession: Authorities say he pulled his sons aside and told them it was “all just one big lie.”

Madoff pleaded guilty in March to securities fraud and other charges, saying he was “deeply sorry and ashamed.” He insisted that he acted alone, describing a separate wholesale stock-trading firm run by his sons and brother as honest and legitimate.

Aside from an accountant accused of cooking Madoff’s books, no one else has been criminally charged. But the family, including his wife, and brokerage firms who recruited investors have come under intense scrutiny by the FBI, regulators and a court-appointed trustee overseeing the liquidation of Madoff’s assets.

The trustee and prosecutors have sought to go after assets to compensate thousands of burned victims who have filed claims against Madoff. How much is available to pay them remains unknown, though it’s expected to be only a fraction of the astronomical losses associated with the fraud.

The $171 billion forfeiture figure used by prosecutors merely mirrors the amount they estimate that, over decades, “flowed into the principal account to perpetrate the Ponzi scheme.” The statements sent to investors showing their accounts were worth as much as $65 billion were fiction.

The investigation has found that in reality, Madoff never made any investments, instead using the money from new investors to pay returns to existing clients — and to finance a lavish lifestyle for his family.

In bankruptcy filings, Trustee Irving Picard say family members “used customers accounts as though they were their own,” putting Madoff’s maid, boat captain and house-sitter in Florida on the company payroll and paying nearly $1 million in fees at high-end golf clubs on Long Island and in Florida.

Picard has sought to reclaim ill-gotten gains by freezing Madoff’s business bank accounts and selling legitimate portions of his firm. (Its season tickets for the Mets went for $38,100.) He’s also sued big money managers and investors for billions of dollars, claiming they were Madoff cronies who also cashed in on the fraud.

The defendants include leading philanthropists Stanley Chais and Jeffry Picower — from whom Picard is seeking at least $5.1 billion alleged to have come out of victims’ pockets — and hedge fund manager J. Ezra Merkin. All have denied any wrongdoing.


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Sources: MSNBC, Huffington Post, Google Maps

Jackson's Doctor Not Board Certified, Paid $150,000. Monthly...Failed To Provide Legal Duty of Care!!

MSNBC----

Folks the plot and investigation surrounding the mysterious death King of Pop Michael Jackson, continues to thicken day by day.

This morning on the "Morning Joe" show Dr. Nancy Snyderman reported that Michael Jackson's doctor Conrad Murray, was NOT a Medical Board Certified Cardiologist and did NOT have Hospital Admitting privileges!

Dr. Snyderman whose Medical opinion I highly respect and who finally has her own show which debuts today on MSNBC, conducted research on this Conrad Murray's character & professional background.

Here's what she discovered:

Murray is a graduate of the Meharry Medical College.

He's not medical board certified as a Cardiologist.

He's licensed to practice in California, Texas and Nevada.

However Dr. Snyderman states she could find NO Hospitals where he had Admitting privileges. (OMG! Where Jackson find this guy?)

Murray was actually requested to be placed on the payroll by Jackson.

He was being paid $150,000. per month (by the Promoter of his London shows) to care for Jackson only.

Both Murray and his sister, a Nurse were living in Jackson's home.

Murray was performing CPR on Jackson while he was lying on the bed.

Dr. Snyderman states that CPR should ONLY be performed on a hard surface to get the compression correctly and to ensure that your not pressing too firmly on the patient's chest.


Reasons why Jackson's family should sue Murray and why he should be Criminally charged:

He was hired by Jackson and paid by the promoter of Jackson's London shows, scheduled for July.

As a doctor Murray had a Legal obligation to provide Accurate Duty of Care for his Patient.

Doctor's are held to this Legal Standard due to the level of Medical Knowledge they hold.

Thus Murray's first obligation should have been to his patient (Jackson) NOT the London Promoter.

Dr. Snyderman also states that Murray told LAPD he only gave Jackson the medications he requested.

The last time I checked Michael Jackson was NOT a Physician!

Since when does a doctor give his or her patients medicines THEY request versus what's Medically best for them????


Come on people!

This kind of stuff has been going on for years and it needs to be stopped!

Murray appears to have ONLY been in the deal for the money. The guy was nearly $500,000. in debt and had been sued previously.

Its obvious this guy was nothing more than a Legalized Prescription Drug Pusher and he should be prosecuted just like an Illegal Drug Pusher, for the Manslaughter of Michael Jackson.

Even if Michael Jackson did have a Prescription drug problem, Murray as a Licensed Physician (although NOT Board Certified) still had a Legal Duty of Care to put Jackson's health first, NOT Jackson's desire for more drugs.

This same thing took place when Anna Nicole Smith died and the doctor in that situation WAS charged with contributing to her death.

Murray deserves the same treatment.

Murray no doubt violated his Oath and Medical Ethics for money.

Something is seriously wrong with our current Health Care system when a person regardless of their wealth, is able to obtain prescription drugs legally at their whim.

This includes the Pharmacists who fill those prescriptions for the SAME patient without raising an eyebrow.

Jackson's Toxicology test results should help reveal the fact that Murray should be charged with Manslaughter and then be sued by the Jackson family for Malpratice.

Let Murray's Trial begin.

Stay tuned.


(Jackson's doctor Conrad Murray and HIS lawyer reports Murray did not give the King of Pop any Demerol. I call BS on that statement!)

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(Reported drug use troubled Jackson's peers.)

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LOS ANGELES - Michael Jackson still had a faint pulse and his body was warm when his doctor found him in bed and not breathing, a lawyer for the doctor told The Associated Press on Sunday.

Lawyer Edward Chernoff also said Dr. Conrad Murray never prescribed or gave Jackson the drugs Demerol or OxyContin. He denied reports suggesting Murray gave Jackson drugs that contributed to his death.

Chernoff told the AP that Murray was at the pop icon’s rented mansion on Thursday afternoon when he discovered Jackson in bed and not breathing. The doctor immediately began administering CPR, Chernoff said.

“He just happened to find him in his bed, and he wasn’t breathing,” the lawyer said. “Mr. Jackson was still warm and had a pulse.”

Jackson’s family requested a private autopsy in part because of questions about Murray, the Rev. Jesse Jackson said Saturday.

People close to Michael Jackson have said since his death that they were concerned about his use of painkillers. Los Angeles County medical examiners completed their autopsy Friday and said Jackson had taken unspecified prescription medication.

Chernoff said any drugs the doctor gave Jackson were prescribed in response to a specific complaint from the 50-year-old.

“Dr. Murray has never prescribed nor administered Demerol to Michael Jackson,” Chernoff said. “Not ever. Not that day. ... Not Oxycontin (either) for that matter.”

Chernoff told NBC's "Dateline" that he could not reveal specific medications Jackson was taking, but added that if toxicology tests revealed the presence of Demerol or Oxycontin, "it will be a surprise to us."

(Msnbc.com is a joint venture of Microsoft and NBC.)

When asked by "Dateline" about the state of Jackson's health, Chernoff said, "he was a frail man, he didn't like to drink or eat. He wasn't exactly healthy to begin with."

Says CPR was correctly performed:

Paramedics were called to the mansion while the doctor was performing CPR, according to a recording of the 911 call. Medics spent three-quarters of an hour trying to revive Jackson. He was pronounced dead later at UCLA Medical Center.

Chernoff responded to allegations that Murray performed CPR incorrectly by performing it while Jackson lay in bed, rather than immediately moving him to a hard surface. Chernoff told "Dateline" that Murray adjusted his treatment by putting one hand behind Jackson's back and performing compressions with the other hand.

"Keep in mind, Michael Jackson is a very frail individual and the doctor knew this," Chernoff told "Dateline." "And he was compressing hard enough that the doctor knew he was pumping the blood throughout the system." Chernoff said Murray did eventually move Jackson to the floor where he continued CPR.

Chernoff also debunked rumors that Jackson's children saw their father collapse and thought he was faking. "No, that (rumor) came out of nowhere," he told "Dateline." "The kids did not see that."

Murray was interviewed by investigators for three hours Saturday. His spokeswoman called Murray “a witness to this tragedy,” not a suspect in the death, and police described the doctor as cooperative.

Chernoff also said the promoter of Jackson’s 50-show London concerts, AEG Live, owes the cardiologist $300,000.

“His contract with the promoters states he would receive an amount of money each month to be his (Jackson’s) personal physician and they have failed to honor that contract,” Chernoff said. “They are two months behind.”

Randy Phillips, president and CEO of AEG Live, acknowledged the contract called for Murray to be paid $150,000 a month, but said the contract required Jackson’s signature.

“Michael never signed the contract,” Phillips said.

He also said the doctor’s claim for payment may be against Jackson’s estate, not AEG which was merely advancing the money to Jackson.

On Saturday, Murray, who was with Jackson during his final moments, sat down with investigators for three hours. His spokeswoman said he is not a suspect in the death.

Murray “helped identify the circumstances around the death of the pop icon and clarified some inconsistencies,” spokeswoman Miranda Sevcik said. She said the doctor remains “a witness to this tragedy.”

Police confirmed they had interviewed Murray and said he was cooperative.

Lawyer selected:

Meanwhile, Jackson’s mother selected a lawyer who represented Jackson last year in a breach-of-contract suit and has advised other high-profile clients to help the family, said a person who requested anonymity because the matter is private.

The legal move came as the Rev. Jesse Jackson revealed that Michael Jackson’s family wanted a second, private autopsy of the pop superstar because of unanswered questions about how he died.

“It’s abnormal,” Jesse Jackson said from Chicago a day after visiting the Jackson family. “We don’t know what happened. Was he injected and with what? All reasonable doubt should be addressed.”

A private pathologist hired by the Jackson family completed the second autopsy Saturday, the Los Angeles Times reported, citing unnamed people familiar with the case.

A second autopsy can allow the family to get some information about a death almost immediately, including signs of heart, brain or lung disease or fresh needle punctures, said Dr. Michael Baden, a medical examiner not involved in the Jackson case.

“Usually if it looks normal with the naked eye, it looks normal under the microscope,” said Baden, who recently performed a second autopsy on actor David Carradine.

Los Angeles County coroner’s officials completed their autopsy on Jackson on Friday and said there was no indication of trauma or foul play. But because of additional tests, an official cause of death could take weeks to determine.

People close to Jackson have said since his death that they were concerned about his use of painkillers. Los Angeles County medical examiners completed their autopsy Friday and said Jackson had taken prescription medication.

No word on funeral plans, guardians:

There was no word from the Jackson family on funeral plans. Many of Jackson’s relatives have gathered at the family’s Encino compound, caring there for Jackson’s three children.

It remains unclear whom Jackson designated as potential guardians for his children. Those details, likely contained in the 50-year-old singer’s will, have not been released.

An attorney for Deborah Rowe, the mother of Jackson’s two oldest children, issued a statement Saturday asking that the Jackson family “be able to say goodbye to their loved one in peace.”

A White House adviser said on NBC’s “Meet the Press” that President Barack Obama had written to the Jackson family to express his condolences.

Al Sharpton, who arrived in Los Angeles on Sunday afternoon, said he was heading to the Jackson compound and would talk with the family about how to memorialize the late pop star. Sharpton said they want to hold memorials in key cities around the globe and also planned a memorial service Tuesday at the Apollo Theater in New York.

On Saturday, three of Jackson’s brothers — Jackie, Jermaine and Tito — visited Jackson’s Neverland Ranch where they walked the manicured grounds and reminisced about his life. It is not clear what will become of the ranch, which has been under renovations.

Owen Blicksilver, a spokesman for Colony Capital LLC, the Los Angeles-based firm where investor Thomas Barrack is chairman and CEO, said it was premature to discuss the future of Neverland. Barrack previously set up the joint venture with Michael Jackson after the singer nearly lost the ranch to foreclosure.

Barrack feels close to family members and wants to hear their thoughts on how best to honor Jackson’s memory, Blicksilver said. The investor joined Jackie, Jermaine and Tito Jackson for lunch Saturday at the sprawling Santa Barbara County property.


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Jackson's Doctor Cooperates With LAPD, Reveals Circumstances Leading To His Death

MSNBC-----

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LOS ANGELES - The cardiologist who was with Michael Jackson during the pop star's final moments sat down with investigators for the first time to explain his actions — and left three hours later as a witness, not a suspect.

Dr. Conrad Murray "helped identify the circumstances around the death of the pop icon and clarified some inconsistencies," Murray's spokeswoman Miranda Sevcik said in a statement Saturday. "Investigators say the doctor is in no way a suspect and remains a witness to this tragedy."

Murray, a physician with a tangled financial and personal history who was hired to accompany Jackson on his planned summer concert tour, reportedly performed CPR until paramedics arrived. The pop star was declared dead later at UCLA Medical Center.

Police confirmed that they interviewed Murray, adding that he was cooperative and "provided information which will aid the investigation."

The interview took place on a busy day when one of Jackson's lawyers was chosen to represent the family's legal interests and celebrities descended on Los Angeles for a star-studded public celebration of the King of Pop's life.

L. Londell McMillan, who represented Jackson last year in a breach of contact lawsuit and has advised high-profile clients such as Prince, was picked to help the family by Katherine Jackson, the singer's mother, said a person who requested anonymity because the matter is private.

"Abnormal":

The legal move came as the Rev. Jesse Jackson revealed that Michael Jackson's family wanted a second, private autopsy of the pop superstar because of unanswered questions about how he died.

"It's abnormal," Jesse Jackson said from Chicago a day after visiting the Jackson family. "We don't know what happened. Was he injected and with what? All reasonable doubt should be addressed."

The second autopsy was completed Saturday at the family's request, the Los Angeles Times reported on its Web site Saturday evening, quoting unnamed sources.

People close to Jackson have said since his death that they were concerned about his use of painkillers. Los Angeles County medical examiners completed their autopsy Friday and said Jackson had taken prescription medication.

Medical officials also said there was no indication of trauma or foul play. An official cause of death could take weeks.

There was no word from the Jackson family on funeral plans. Many of Jackson's relatives have gathered at the family's Encino compound, caring there for Jackson's three children.

The Rev. Al Sharpton said Saturday he had spoken with Jackson's brothers Jackie and Jermaine and plans to meet with the family Sunday at their request. The family is considering a series of simultaneous global celebrations and other ideas as they decide how to commemorate the life of the King of Pop, he says.

Sharpton says the family is frustrated that so much of the media attention has focused on Michael Jackson's problems. They want to make sure he's remembered for his spectacular contributions to music and culture.

Questions around children:

It remains unclear who Jackson designated as potential guardians for his children. Those details — likely contained in the 50-year-old singer's will — have not been released.

An attorney for Deborah Rowe, the mother of Jackson's two oldest children, issued a statement Saturday asking that the Jackson family "be able to say goodbye to their loved one in peace."

Sisters Janet and La Toya arrived Saturday at the mansion Jackson had been renting and left without addressing reporters. Moving vans also showed up at the Jackson home, leaving about an hour later. There was no indication what they might have taken away.

The Jackson family issued a statement Saturday expressing its grief over the death and thanking his supporters.

"In one of the darkest moments of our lives we find it hard to find the words appropriate to this sudden tragedy we all had to encounter," said the statement made through People magazine. "We miss Michael endlessly."

"They're hurt because they lost a son. But the wound is now being kept open by the mystery and unanswered questions of the cause of death," he said.

Organizers of the annual BET awards show — which recognizes the best in music, acting and sports — scrambled to revamp Sunday's show to honor Jackson and his legacy.

Previously announced acts, such as Beyonce and Ne-Yo, hoped to change their planned performances to honor Jackson, said producer Stephen Hill. Other artists who hadn't planned to attend the ceremony, including Usher and Justin Timberlake, tried to catch last-minute flights to Los Angeles to participate.

A person close to the family told The Associated Press they feel upset and angry about a lack of information about those who were around the pop superstar in his final days. The person requested anonymity because of the delicate nature of the situation.

Jackson never communicated to his family who he had in place to handle his business affairs, the person said, adding that they were told by the singer’s phalanx of advisers that he likely had a will, but it may be many years old. The family is distrustful of what they are being told — but they are determined to find out more, the person said.

“There are decisions going down without the family being in the loop; it’s becoming an issue,” the person said.

Randy Phillips, AEG Live president and chief executive, said earlier Friday that it was Jackson who insisted that Murray, a financially troubled cardiologist who was with the entertainer when he collapsed Thursday, be put on the tour payroll.

Jackson had been rehearsing for 50 London concerts aimed at restoring his crown as the King of Pop. He died Thursday at age 50 after what his family said appeared to be cardiac arrest.

Desperate 911 call:

A 911 call from Jackson's rented home reported that his personal doctor was trying to revive him without success.

An emergency dispatch call released by fire officials shed light on the desperate effort at the mansion to save Jackson's life before paramedics arrived Thursday afternoon.

In the recording, an unidentified caller pleads with authorities to send help, offering no clues about why Jackson was stricken. He tells a dispatcher that Jackson's doctor is performing CPR.

"He's pumping his chest," the caller says, "but he's not responding to anything."

Asked by the dispatcher whether anyone saw what happened, the caller answers: "No, just the doctor, sir. The doctor has been the only one there."


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Pres. Obama Sends His Condolences To The Jackson Family

"President Obama has written the Jackson family"......

David Axelrod shares this information with "Meet the Press" Moderator, David Gregory. June 28, 2009

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Sources: MSNBC, Meet the Press, Obama-Biography.org

Why Are So Many Minority Children Placed In Foster Care? Biased Social Workers, Big Federal Bucks!

MSNBC----

The white social worker looked at the dark spots on the black child's body and assumed the youngster had been beaten. The family denied it, but the social worker insisted.

It turned out the child had "Mongolian spots" — harmless skin blotches common among black children. The social worker's mistake was discovered before the parents got into trouble.

But researchers and policymakers say such episodes help explain why black, Hispanic and other minority children in the United States are far more likely than white youngsters to be taken from their homes and placed in foster care.

Racial or ethnic prejudices — conscious or unconscious — can lead social workers to see abuse or neglect where none exists, these experts say.

The experts caution that stereotyping on the part of social workers is just one factor in the racial gap, and probably a small one at that. Other factors — higher rates of poverty, inadequate housing and child care, for example — are believed to be major contributors to abuse and neglect among minorities.

Nevertheless, stereotyping is enough of a concern that cultural-awareness training for social workers has been instituted in 45 states, many of them in the just the past few years, according to a recent report by the Government Accountability Office, the investigative arm of Congress.

A third of children in foster care are Black:

Nationally, blacks make up about 15 percent of the childhood population, yet account for 34 percent of children in foster care, according to the GAO report. Black children on average stay in foster care nine months longer than white children, the report said.

The report said "bias or cultural misunderstandings and distrust between child welfare decision makers and the families they serve" was one of several factors accounting for the gap, along with poverty and lack of access to services.

"Once we are reported, we are more likely to be investigated. Once we are investigated, we are more likely to be placed in foster care. Once we are placed in foster care, we are less likely to be returned to our families," said Sondra Jackson, executive director of Black Administrators in Child Welfare.

In overwhelmingly white Utah, black children were in foster care at more than six times their proportion of the state's population, according to the GAO. In five other states — Wisconsin, Iowa, New Hampshire, Wyoming, and California — black children were four times more likely to end up in foster care.

In Massachusetts, 7 percent of children are black, but 19 percent children in state care are black. Hispanics are 11 percent of the child population but 25 percent of those in foster care. White children are 79 percent of the population, but just 60 percent of those in state care.

"People come with biases and how those racial biases play out is of real concern," said Bill Brown, area director for the state Department of Social Services in Boston.

The problem is not just black and white.

Confusing marks on kids:

When Vietnamese and Cambodian immigrants began moving in large numbers to Lowell, a mill city outside Boston, social workers started hearing troubling reports of children with odd, circular marks on their bodies.

"Our first reaction was that the children were being battered or bruised or spanked," said Zevorah Ortega-Bagni, a state social services investigative supervisor.

Social workers were actually seeing the effects of a traditional healing practice known as "cupping," in which a cup is heated and placed on the skin to draw out illnesses. Far from abuse, the marks were a sign that parents were doing their best to care for their children.

Researchers say minorities are no more likely than whites in similar socio-economic circumstances to abuse or neglect their children. But minorities are more likely to be poor, with blacks nearly four times more likely to live in poverty than others.

Kandida Garcia, a child welfare investigator in Massachusetts, said her Puerto Rican background gives her an edge when dealing with parents of a similar background — especially in emotionally charged situations.

"Another worker may target them as explosive because they are loud in nature, but I would have a different view," she said. "I could explain that this mother is not being aggressive; she is advocating for her child."

Recognizing own biases:

Other social workers said it took years of on-the-job experience to recognize their own ill-founded assumptions.

Virginia O'Connell, who has worked as a social worker for three decades, said it wasn't always easy to distinguish between true abuse or neglect and instances in which families were doing their best under difficult circumstances.

"I went out to homes where there were kids sharing mattresses on the floor," O'Connell said. "It was my values versus the customs and values of a family I was visiting. I really had to look at my own values and realize I couldn't make judgments based on those."

In Massachusetts, one of the states to adopt cultural training, the 2,800 social workers and supervisors are shown videos, engage in role-playing and talk about their own heritage and their assumptions about others. An Associated Press reporter asked to sit in on a session but was denied for fear it would inhibit open discussion.

However, the GAO found there was little evidence that such "cultural competency" programs have helped.

Other strategies to reduce the gap include creating multicultural teams of social workers, recruiting minority families as foster parents, and relying more heavily on "kinship caregivers" — aunts, uncles or grandparents who can step in during a crisis.

Frances Darden, a black woman who has been a foster mother for four children, said the state should recruit more black social workers and foster parents.

"I don't know if they have the experience around our culture to handle the situation," she said. "Our ways might not be the same as they would do."



Audits turn up misspent money in programs for Foster Children, and Charlotte-Mecklenburg County DSS Officials can't account for $162,000 in donations.

A probe of misspending at a Mecklenburg County Department of Social Services Christmas charity has widened across the agency, and officials now say they are unable to say how much money may have disappeared over the years.

The county's second-largest agency, often a first stop for the community's poor or neglected, has recently been reorganized. Director Mary Wilson, hired last summer, ordered audits following reports of suspicious spending.

The audits looked at several spending programs and financial practices throughout the department.

Among the findings:

Mecklenburg County officials cannot account for $162,000 in donations meant to buy gifts for needy children. That includes a $10,000 check made out to an employee.

Of the 840 receipts inspected for that program, 799 had problems, including receipts that were altered, whited out or omitted in photocopying.

In a separate year-round program, auditors said, money meant to help foster families buy clothes and other necessities for children was spent on office supplies.

The audits cover July 2007 through this past March, but officials say they don't know whether problems started earlier because the last departmentwide audit of DSS was in 1996. Some findings have been turned over to the Charlotte-Mecklenburg Police Department.

Officials briefed county commissioners earlier this month about the audits.

But new details are emerging since officials gave a fuller account last week to the commission's audit review committee.

Committee members told county administrators they did not understand how the department failed to adhere to basic financial practices, such as requiring two signatures on checks – a standard spelled out in N.C. law.

Some asked how managers could have allowed such behavior to go unnoticed. The audit committee also appeared surprised that receipts for the department had not been checked for so many years.

Such a review was planned for next year, said Chris Waddell of the county's Internal Audit department, who said he thinks the problems cited in recent audits would have been uncovered.

When panel members asked county auditors and administrators to find out who is responsible for the problems, or how long they persisted, officials cast doubt on whether they could comply.

“There's a lot of missing documentation,” county Finance Director Dena Diorio told the committee.

On Friday, County Manager Harry Jones said officials would respond to problems laid out in the audits.

Overall, Jones said, DSS has been “well-managed,” especially in light of numerous changes in top management in recent years.

But with “an operation of that size it is difficult to be immune from problems,” he said. “We're going to address it and fix it. Hopefully, it won't be recurring.”

"Feel-good" programs:

Officials said charity and emergency spending programs went unchecked by supervisors. Asked why, Wilson said people grew very trusting about “feel-good” programs. Diorio said the longtime programs simply escaped scrutiny.

County officials said some DSS programs were audited annually, but not smaller programs like the Giving Tree.

DSS spends more than $176million annually and employs about 1,200 workers.

Problems surfaced publicly this year when Wilson said she learned about irregular spending patterns in the agency's programs for poor families and foster children.

Wilson said an employee raised questions about money in the Giving Tree program. Wilson said she herself pointed to a need to audit the broader programs.

Since then, leaders have ordered multiple financial audits and suspended two workers suspected of taking $110,000 from the Giving Tree program, which solicits money to buy the holiday gifts.

Officials say they have asked Charlotte-Mecklenburg police to help investigate. One of the suspended workers has been cleared of wrongdoing and reinstated, while the other is now on medical leave. The county has not publicly identified the employees.

County officials say they are trying to determine whether there was criminal activity or just sloppy accounting.

In either case, commissioner Bill James said the findings show the county needs to re-examine how it keeps tabs on taxpayer money. James described the fiscal controls at DSS as “nonexistent.”

“There is a fundamental management control deficiency,” James said. “We have to find out why this lasted as long as it did.”

Ward Simmons, another member of the county audit committee, said there should be two goals. “Fix this for the future, and then this has to do with public confidence in the county: (identify) who's responsible for what happened in the past.”

But county administrators say they are not sure who should be held accountable.

A series of DSS directors:

DSS has had four directors in recent years.

Longtime director Richard “Jake” Jacobsen took a medical leave in 2004 and was briefly replaced in the interim by then-deputy director Brenda Jackson. Jacobsen returned in 2005, only to be reassigned as an executive-in-residence at UNC Charlotte, where he started work in January 2008.

The county appointed another interim DSS director, Janice Allen Jackson, who was also one of the county's general managers.

Director Mary Wilson replaced her last July. Allen Jackson resigned in May for personal reasons.

As a general manager Allen Jackson was responsible for helping oversee DSS for four years. She also was interim director for six months.

Allen Jackson said she was not aware of any accounting failures during her tenure with the county. “No issues were brought to me,” she told the Observer before declining further comment.

Jacobsen worked for 13 years as head of the DSS. Through a county spokesman, Jacobsen declined to comment.

Jacobsen had named a senior-level administrator to oversee DSS finances during his tenure, but county leaders said the post later was vacated. Earlier this year, Wilson recreated the post, naming Angela Hurlburt as the department's director of financial management.

Jones praised Wilson for initiating the financial audit and said she had “clearly inherited this situation.”

“These are programs deliberately designed to operate outside the traditional DSS systems,” Jones said. He said Friday the emergency nature of the charity programs may have led to mistakes. Social workers often must act quickly to address such needs as clothing, housing and medicine.

A lax culture of accounting:

County officials described a lax culture at DSS about accounting procedures.

In some cases, Wilson said, social workers made expenditures without their supervisor's approval. Other times, she said, supervisors did not document approvals for expenses.

Officials say they are unsure whether employees were trained to properly carry out the department's financial policies.

“People who work anywhere need to know what the expectations are,” said John McGillicuddy, county general manager. “And when you know that they've been given those expectations and clear terms ... you can hold them accountable. Part of our challenge is going to be who should have known that these were their responsibility.”

McGillicuddy said county management and DSS directors bear some responsibility in making sure the county is effectively managing the public's money. But he said he thinks that if any of the previous DSS directors knew a problem was occurring, that it would have been addressed.

Officials said they have already addressed issues in the audits, including the need to process all checks through the county finance department and new training for DSS workers on accounting procedures. But the audit panel and county staff said they'd like more investigation.

Commissioner Dan Murrey said the challenge will be infusing the agency with a new culture.

“There are policies and procedures and the way we've always done things,” he said. “In a sound organization those two things are closer together.”



Auditors Found Altered DSS Receipts

Auditors found numerous problems with a Christmas charity run by the Mecklenburg County Department of Social Services.

The now-defunct Giving Tree program collected gifts and donations for children in the county's foster care system

The Giving Tree audit, which triggered an agency-wide probe, found:

- No receipts for a $10,000 check made out to an employee.
- For the remaining $152,289 disbursed, $138,978 in receipt copies were provided.
- Of those 840 receipts, 799 had problems, including:
- Parts of receipts whited out, or omitted in photocopying.
- Altered dates.
- Gift card misuse.
- Multiple submissions of altered receipts.



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