Experts Say Thimerosal Ban Would Imperil Global Health Efforts

A group of prominent doctors and public health experts warns in articles to be published Monday in the journal Pediatrics that banning thimerosal, a mercury compound used as a preservative in vaccines, would devastate public health efforts in developing countries.

Representatives from governments around the world will meet in Geneva next month in a session convened by the United Nations Environmental Program to prepare a global treaty to reduce health hazards by banning certain products and processes that release mercury into the environment.

But a proposal that the ban include thimerosal, which has been used since the 1930s to prevent bacterial and fungal contamination in multidose vials of vaccines, has drawn strong criticism from pediatricians.

They say that the ethyl-mercury compound is critical for vaccine use in the developing world, where multidose vials are a mainstay.

Banning it would require switching to single-dose vials for vaccines, which would cost far more and require new networks of cold storage facilities and additional capacity for waste disposal, the authors of the articles said.

“The result would be millions of people, predominantly in low- and middle-income countries, with significantly restricted access to lifesaving vaccines for many years,” they wrote.

In the United States, thimerosal has not been used in children’s vaccines since the early 2000s after the Food and Drug Administration and public health groups came under pressure from advocacy groups that believed there was an association between the compound and autism in children.

At the time, few, if any, studies had evaluated the compound’s safety, so the American Academy of Pediatrics called for its elimination in children’s vaccines, a recommendation that the authors argued was made under the principle of “do no harm.”

Since then, however, there has been a lot of research, and the evidence is overwhelming that thimerosal is not harmful, the authors said. Louis Z. Cooper, a former president of the academy and one of the authors, said that if the members had known then what they know now, they never would have recommended against using it. “Science clearly documented that we can’t find hazards from thimerosal in vaccines,” he said. “The preservative plays a critical role in distribution of vaccine to the global community. It was a no-brainer what our position needed to be.”

Advocacy groups have lobbied to include the substance in the ban, and some global health experts worry that because the government representatives due to vote next month are for the most part ministers of environment, not health, they may not appreciate the consequences of banning thimerosal in vaccines. The Pediatrics articles are timed to raise a warning before the meeting.

“If you don’t know about this, and you’re a minister of environment who doesn’t usually deal with health, it’s confusing,” said Heidi Larson, senior lecturer at the London School of Hygiene and Tropical Medicine, who runs the Vaccine Confidence Project.

In an open letter to the United Nations Environmental Program and the World Health Organization this year, the Coalition for Mercury-Free Drugs, a nonprofit group that supports the ban, disputed the assertion that scientific studies had offered proof that thimerosal is safe, and urged member states to include it in the ban.

That it is being used in developing countries, but not developed countries, is an “injustice,” the letter said.

The World Health Organization has also weighed in. In April, a group of experts on immunization wrote in a report that they were “gravely concerned that current global discussions may threaten access to thimerosal-containing vaccines without scientific justification.”

Dr. Larson said she believed that the efforts of pediatricians and global health experts, including the W.H.O., would influence the negotiations in Geneva and that the compound would most likely be left out of the final ban.

“You can’t just pull the plug on something without having a plan for an alternative,” she said.

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Don't impoverish yourself to pay kids' student loans

Dear Liz: I'm in my 50s. My kids have college loan debts that might total more than $200,000. I allowed them to take out loans because I expected to inherit $300,000 to help them pay off the debt. Now that inheritance will not happen.

I have $250,000 saved for retirement. When I'm 58 1/2 years old, I would like to pull that money out and pay some or all of these debts. Or use home equity. I've recently been downsized in employment, but I am looking to increase my income so I can help with their debt. Advice?

Answer: If your goal is to impoverish yourself so your kids will have to take care of you in your old age, by all means proceed with your plan. Otherwise, you need to rethink this.

You've been laid off in the middle of what should be your peak earning years. Older workers often have a tougher time than younger ones finding replacement jobs, even in a better economy than this one. You may not be able to replace your former income, which means you may not be able to add much to the amount you've already saved. You should be conserving your resources, including your home equity, and not squandering it repaying debts that aren't yours.

And "squandering" is the right word. You may be able to avoid paying federal and state tax penalties on withdrawals under certain conditions; distributions made after age 59 1/2 avoid the penalties, as do those made if you're "separated from service" if the job termination occurred in or after the year you turn 55. But you'll still owe income taxes on the withdrawal, and those can be considerable.

Your children are the ones who will benefit from their educations. Those educations should allow them to earn incomes to repay these loans. The amount of debt they've accrued might be excessive — you didn't specify how many kids, or whether this debt is being incurred pursuing undergraduate or graduate degrees. Ultimately, though, they will be in a better position to pay the debt than you are.

If you promised them help you can't deliver, sit down with them now to break the bad news and strategize on how they can finish their educations without incurring substantially more debt.

Your story also should serve as a cautionary tale for anyone counting on an inheritance to pay future bills. Until the money is in your bank account, it's not yours and shouldn't be part of your financial planning.

Refinancing mortgage in divorce may not be wise move

Dear Liz: My soon-to-be ex wants to refinance our mortgage to pay for renovations so we can sell it for more money. He also wants to take out some cash to pay off unsecured loans. (I have $11,000 in credit card debt, and he has over $50,000.) The house recently appraised for $310,000 and we owe $158,000 on it. Is it wise to refinance in this circumstance?

Answer: A cash-out refinance would be a risky maneuver even if you intended to stay married. Renovations rarely boost a home sale price enough to cover their cost. Also, home equity that's used to pay off credit card bills is often wasted, since the borrower never fixes the problem that led to overspending in the first place and simply runs up more debt. Since he would be getting the bulk of the benefit by having more of his debt paid off, you also would need to adjust the rest of your property settlement.

Often, the best and easiest solution in a divorce is to simply sell the house. You certainly wouldn't want to remain on a mortgage with an ex after the divorce was final, if you could possibly avoid it. A good divorce attorney can give you advice about how to proceed from here.

Make saving money automatic

Dear Liz: What's the easiest way to save money? I have the hardest time. I want to save, but I feel that I don't make enough to start saving.

Answer: The easiest way to save is to do it without thinking about it.

That usually means setting up automatic transfers either from your paycheck or from your checking account. If you have to think about putting aside money, you'll probably think of other things to do with that cash. If it's done automatically, you may be surprised at how fast the money piles up.

The second part of this equation is to leave your savings alone. If you're constantly dipping into savings to cover regular expenses, you won't get ahead.

People manage to save even on small incomes because they make it a priority. They "pay themselves first," putting aside money for savings before any other bills are paid. Start with small, regular transfers and increase them as you can.

Questions may be sent to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the "Contact" form at asklizweston.com. Distributed by No More Red Inc.

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As Newtown gunman roamed school, teachers rushed to hide kids

NEWTOWN, Conn. — Just before 10 a.m. Friday, Robert Licata's wife called in a panic. The Newtown school district had sent an alert to parents.

All the schools had been locked down, it said. There were reports of gunfire.

Licata's wife, who'd been on her way to the gym, swung by a high school. Nothing. Then she drove to Sandy Hook Elementary, where their 6-year-old son and 7-year-old daughter went to school.

That's when she knew. She couldn't even get close — too many police cruisers, too many ambulances. So her husband, heart pounding, drove to a firehouse near the school where parents had huddled. Police and teachers were walking children there, some in single file, their tiny hands gripping one another's shoulders.

Within minutes, Licata saw his daughter. The second-grader ran to him, crying. You're OK, he told her. You're safe.

Over the next hour, Licata, 52, watched class after class pour into the firehouse. Then the stream of children stopped.

Two first-grade classes were missing.

One of them was his son's.

::

Earlier that morning in Newtown, 20-year-old Adam Lanza shot and killed his mother, authorities said. He then drove her Honda about five miles to Sandy Hook Elementary, wearing black military-style fatigues and carrying his brother's ID and at least three guns.

Lanza had gone to high school in Newtown, a well-to-do western Connecticut community of about 28,000 near the New York state line, where the holiday season brims with tree lightings and carolers. It was unclear what connection — if any — the dark-haired young man had to Sandy Hook Elementary, which sits at the end of a two-lane road lined with barns converted to houses.

Lanza parked in the fire lane by the school's main entrance, law enforcement sources said. Finding the main door locked, Lanza either smashed or shot the glass to get inside, where nearly 700 students in kindergarten through fourth grade were reading, drawing, scribbling notes.

Many children didn't realize the loud bangs they heard were gunfire. Maybe a custodian knocked over something? Some pans fell?

But the adults knew something was awry. Someone had flicked on the loudspeaker, and the sounds staffers heard clearly were not part of a drill. Teachers hurried their students into gym closets, coat cubbies — any hiding space they could find.

Kaitlin Roig rushed 15 small children into a bathroom and heaved a bookshelf in front of the door, the first-grade teacher told ABC News. Inside with them, she turned the lights off and told her class: Be quiet.

Some children whimpered. Some begged to go home. One tried to put on a brave face.

"I know karate, so it's OK," the student told her. "I'll lead the way out."

In the school library, fourth-grader Geneva Cunningham listened to the loudspeaker. She heard a scream, then deep breathing.

Geneva was among 20 students whom teachers herded into a closet. It's a just a drill, they reassured the children. Geneva heard glass shattering.

"We thought it was an animal at first," she said.

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As Conn. story unfolds, media struggle with facts

NEW YORK (AP) — The scope and senselessness of the Newtown, Conn., school shooting challenged journalists' ability to do much more than lend, or impose, their presence on the scene.

Pressed with the awful urgency of the story, television, along with other media, fell prey to reporting "facts" that were often in conflict or wrong.

How many people were killed? Which Lanza brother was the shooter: Adam or Ryan? Was their mother, who was among the slain, a teacher at the school?

Like the rest of the news media, television outlets were faced with intense competitive pressures and an audience ravenous for details in an age when the best-available information was seldom as reliable as the networks' high-tech delivery systems.

Here was the normal gestation of an unfolding story. But with wall-to-wall cable coverage and second-by-second Twitter postings, the process of updating and correcting it was visible to every onlooker. And as facts were gathered by authorities, then shared with reporters (often on background), a seemingly higher-than-usual number of points failed to pan out:

— The number of dead was initially reported as anywhere from the high teens to nearly 30. The final count was established Friday afternoon: 20 children and six adults, as well as Lanza's mother and the shooter himself.

— For hours on Friday, the shooter was identified as Ryan Lanza, with his age alternatively reported as 24 or 20. The confusion seemed explainable when a person who had spoken with Ryan Lanza said that 20-year-old Adam Lanza, the shooter who had then killed himself, could have been carrying identification belonging to his 24-year-old sibling.

This case of mistaken identity was painfully reminiscent of the Atlanta Olympics bombing case in 1996, when authorities fingered an innocent man, and the news media ran with it, destroying his life. Such damage was averted in Ryan Lanza's case largely by his public protestations on social media, repeatedly declaring "It wasn't me."

— Initial reports differed as to whether Lanza's mother, Nancy, was shot at the school, where she was said to be a teacher, or at the home she shared with Adam Lanza. By Friday afternoon, it was determined that she had been shot at their home.

Then doubts arose about whether Nancy Lanza had any link to Sandy Hook Elementary. At least one parent said she was a substitute teacher, but by early Saturday, an official said investigators had been unable to establish any connection with the school.

That seemed to make the massacre even more confusing. Early on, the attack was said to have taken place in her own classroom and was interpreted by more than one on-air analyst as possibly a way for Adam Lanza to strike back at children with whom he felt rivalry for his mother's affection.

— At first, authorities said Lanza had used two pistols (a Glock and a Sig Sauer) in the attack and left a .223-caliber Bushmaster rifle in the trunk of a vehicle. But by Saturday afternoon, the latest information was that all the victims had been shot with the rifle at close range.

— There were numerous versions of what Lanza was wearing, including camouflage attire and black paramilitary garb.

With so many unanswered questions, TV correspondents were left to set the scene and to convey the impact in words that continually failed them.

However apt, the phrase "parents' worst nightmare" became an instant cliche.

And the word "unimaginable" was used countless times. But "imagine" was exactly what the horrified audience was helpless not to do.

The screen was mostly occupied by grim or tearful faces, sparing everybody besides law enforcement officials the most chilling sight: the death scene in the school, where — as viewers were reminded over and over — the bodies remained while evidence was gathered. But who could keep from imagining it?

Ironically, perhaps the most powerful video came from 300 miles away, in Washington, where President Barack Obama delivered brief remarks about the tragedy. His somber face, the flat tone of his voice, the tears he daubed from his eyes, and his long, tormented pauses said as much as his heartfelt words. He seemed to speak for everyone who heard them.

The Associated Press was also caught in the swirl of imprecise information. When key elements of the story changed, the AP issued two advisories — one to correct that Adam Lanza, not his brother, was the gunman, and another that called into question the original report that Lanza's mother taught at the school.

But TV had hours to fill.

Children from the school were interviewed. It was a questionable decision for which the networks took heat from media critics and viewers alike. But the decision lay more in the hands of the willing parents (who were present), and there was value in hearing what these tiny witnesses had to say.

"We had to lock our doors so the animal couldn't get in," said one little boy, his words painting a haunting picture.

In the absence of hard facts, speculation was a regular fallback. Correspondents and other "experts" persisted in diagnosing the shooter, a man none of them had ever met or even heard of until hours earlier.

CNN's "Piers Morgan Tonight" scored an interview with a former classmate of Lanza's — with an emphasis on "former."

"I really only knew him closely when we were very, very young, in elementary school together," she said.

Determined to unlock Lanza's personality, Morgan asked the woman if she "could have ever predicted that he would one day flip and do something as monstrous as this?"

"I don't know if I could have predicted it," she replied, struggling to give Morgan what he wanted. "I mean, there was something 'off' about him."

The larger implications of the tragedy were broached throughout the coverage — not least by Obama.

"We're going to have to come together and take meaningful action to prevent more tragedies like this, regardless of the politics," he said, which may have gladdened proponents of stricter gun laws.

But CBS correspondent Nancy Cordes noted, "There's often an assumption that after a horrific event like this, it will spark a fierce debate on the issue. But in recent years, that hasn't been the case."

Appearing on "The O'Reilly Factor" Friday night, Fox News correspondent Geraldo Rivera voiced his own solution.

"I want an armed cop at every school," he said.

___

EDITOR'S NOTE — Frazier Moore is a national television columnist for The Associated Press. He can be reached at fmoore(at)ap.org and at http://www.twitter.com/tvfrazier .

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School Yoga Class Draws Religious Protest From Christians

T. Lynne Pixley for The New York Times

Miriam Ruiz during a yoga class last week at Paul Ecke Central Elementary School in Encinitas, Calif. A few dozen parents are protesting that the program amounts to religious indoctrination. More Photos »

ENCINITAS, Calif. — By 9:30 a.m. at Paul Ecke Central Elementary School, tiny feet were shifting from downward dog pose to chair pose to warrior pose in surprisingly swift, accurate movements. A circle of 6- and 7-year-olds contorted their frames, making monkey noises and repeating confidence-boosting mantras.

Jackie Bergeron’s first-grade yoga class was in full swing.

“Inhale. Exhale. Peekaboo!” Ms. Bergeron said from the front of the class. “Now, warrior pose. I am strong! I am brave!”

Though the yoga class had a notably calming effect on the children, things were far from placid outside the gymnasium.

A small but vocal group of parents, spurred on by the head of a local conservative advocacy group, has likened these 30-minute yoga classes to religious indoctrination. They say the classes — part of a comprehensive program offered to all public school students in this affluent suburb north of San Diego — represent a violation of the First Amendment.

After the classes prompted discussion in local evangelical churches, parents said they were concerned that the exercises might nudge their children closer to ancient Hindu beliefs.

Mary Eady, the parent of a first grader, said the classes were rooted in the deeply religious practice of Ashtanga yoga, in which physical actions are inextricable from the spiritual beliefs underlying them.

“They’re not just teaching physical poses, they’re teaching children how to think and how to make decisions,” Ms. Eady said. “They’re teaching children how to meditate and how to look within for peace and for comfort. They’re using this as a tool for many things beyond just stretching.”

Ms. Eady and a few dozen other parents say a public school system should not be leading students down any particular religious path. Teaching children how to engage in spiritual exercises like meditation familiarizes young minds with certain religious viewpoints and practices, they say, and a public classroom is no place for that.

Underlying the controversy is the source of the program’s financing. The pilot project is supported by the Jois Foundation, a nonprofit organization founded in memory of Krishna Pattabhi Jois, who is considered the father of Ashtanga yoga.

Dean Broyles, the president and chief counsel of the National Center for Law and Policy, a nonprofit law firm that champions religious freedom and traditional marriage, according to its Web site, has dug up quotes from Jois Foundation leaders, who talk about the inseparability of the physical act of yoga from a broader spiritual quest. Mr. Broyles argued that such quotes betrayed the group’s broader evangelistic purpose.

“There is a transparent promotion of Hindu religious beliefs and practices in the public schools through this Ashtanga yoga program,” he said.

“The analog would be if we substituted for this program a charismatic Christian praise and worship physical education program,” he said.

The battle over yoga in schools has been raging for years across the country but has typically focused on charter schools, which receive public financing but set their own curriculums.

The move by the Encinitas Union School District to mandate yoga classes for all students who do not opt out has elevated the discussion. And it has split an already divided community.

The district serves the liberal beach neighborhoods of Encinitas, including Leucadia, where Paul Ecke Central Elementary is, as well as more conservative inland communities. On the coast, bumper stickers reading “Keep Leucadia Funky” are borne proudly. Farther inland, cars are more likely to feature the Christian fish symbol, and large evangelical congregations play an important role in shaping local philosophy.

Opponents of the yoga classes have started an online petition to remove the course from the district’s curriculum. They have shown up at school board meetings to denounce the program, and Mr. Broyles has threatened to sue if the board does not address their concerns.

The district has stood firm. Tim Baird, the schools superintendent, has defended the yoga classes as merely another element of a broader program designed to promote children’s physical and mental well-being. The notion that yoga teachers have designs on converting tender young minds to Hinduism is incorrect, he said.

“That’s why we have an opt-out clause,” Mr. Baird said. “If your faith is such that you believe that simply by doing the gorilla pose, you’re invoking the Hindu gods, then by all means your child can be doing something else.”

Ms. Eady is not convinced.

“Yoga poses are representative of Hindu deities and Hindu stories about the actions and interactions of those deities with humans,” she said. “There’s content even in the movement, just as with baptism there’s content in the movement.”

Russell Case, a representative of the Jois Foundation, said the parents’ fears were misguided.

“They’re concerned that we’re putting our God before their God,” Mr. Case said. “They’re worried about competition. But we’re much closer to them than they think. We’re good Christians that just like to do yoga because it helps us to be better people.”

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United Airlines pilots ratify new labor contract

CHICAGO — After years of divisive negotiations between United Airlines and its pilots, union members on Saturday ratified a new labor agreement, shedding a bankruptcy-era contract for pilots and marking an important step toward fully integrating United and Continental airlines, which officially merged in 2010.

The Air Line Pilots Assn., which over the last couple of years has staged pickets about its lack of a contract and had taken a preliminary strike vote, said 67% of its 10,000 members voted over the last several weeks to ratify the deal, with nearly 98% casting votes. Voting closed Saturday morning.

The four-year contract will go into effect immediately. It provides gains in pay, job protections, retirement and benefits compensation and work rules.

"The era of bankruptcy and concessionary contracts is now over," union leaders said in a statement. "For too long, the pilots of United and Continental have had to shoulder more than their share of the burden as our respective airlines struggled through the difficult economic times of the past decade. We now stand ready to embark on a fresh start for the pilots and the airline."

With help from federal mediators, the two sides agreed in principle to a deal in August, then took until mid-November to work out language for a contract and send the proposal to the union membership for a vote.

"The ratification of this agreement is an important step forward for our pilots and the company," said Fred Abbott, United senior vice president of flight operations, in a statement.

The finished contract is a bit of good news in what has otherwise been a rocky merger for Chicago-based United Continental Holdings.

Most notable to passengers were rampant flight delays and cancellations after a conversion to a combined passenger reservation system in March. Those operational woes were severe over the summer, and customers started to flee to other airlines. But the problems have subsided in recent months, with United hitting its goal of an 80% on-time rate.

United is still in joint negotiations with other major unions, including those for flight attendants, passenger service agents, dispatchers and ramp and fleet workers. Pilot contracts are traditionally done first and tend to be the most contentious.

gkarp@tribune.com

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Helping children cope with tragedy

For retired school psychologist Cathy Paine, the shooting in Newtown, Conn., evoked painful memories of that day nearly 15 years ago when her school district suffered a similar tragedy.

Paine, 63, was one of the first counselors to arrive at Thurston High School in Springfield, Ore., after a student opened fire in the cafeteria, killing two and wounding 25.

Today, she belongs to the National Assn. of School Psychologists and leads a team that provides assistance to schools, families and communities dealing with crisis.

Understanding Friday's tragedy might not be possible, she said, but parents can help their children with the fear and insecurity that shootings evoke, whether they experienced the incident firsthand or through media accounts.

According to a guide published by the Lucy Daniels Center, a mental health agency based in North Carolina, if children learn of a disturbing event, parents should assume that their children will be shaken, even if there are no obvious signs.

"The best approach is to let the child be your guide," Paine said. "Listen and ask them how are they feeling. Are they afraid? It's all about safety and security. This first thing that the kids will wonder is if this will happen to them when they go to school Monday morning."

Paine suggested that parents console and comfort their children. Extra hugs help — for both the child and the parent. In addition, parents should maintain a normal routine. Weekend plans should stay in place. Holiday shopping or decorating provide opportunities for parents to reassure their children.

Parents should emphasize the rarity of the event and limit television viewing. Images seen over and over give the impression that these events happen everywhere.

The key is to tailor information to suit the age and maturity of the child. "When talking to very young children," she said, "you need to be very simple and not provide lot of details."

Drawing pictures together can provide clues for how to talk to a child.

For older children, it might mean stating the obvious — "A terrible thing happened. It is rare, but it did happen here. We want to do what we can to help us feel better about it." — and then following the child's lead.

It is also important to watch for symptoms of grief in the weeks ahead. Younger children might experience stomachaches or headaches. They might stage tantrums or want to sleep with their parents.

Older children might have trouble concentrating or watch more television than usual. These are normal reactions, Paine said, but if they persist, or seem unusually intense, parents should speak to a school counselor or their physician.

The Lucy Daniels guide also reminds parents to moderate their reaction to the shooting because children often mirror the emotions of others.

In the aftermath of the Springfield shooting, Paine watched as other communities reached out to hers. Staging fundraisers is one way to help people feel that they can gain a little control in their lives. Students in one fifth-grade class wrote a "peace pledge," reminding students to be kind to one another. The pledge has been read every morning since.

Speaking about the terrible events in Newtown, Paine reflected on the difficulty of trying to understand why such tragedies happen, forcing people to live with the incomprehensible.

"We're rational and this is irrational, and you just can't make sense of this," Paine said. "Kids will be asking, 'Why did this happen?' And the best we can say is that we might not ever know."

thomas.curwen@latimes.com

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Games top App Store revenue in 2012

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Owner of Rivera plane being investigated by DEA

PHOENIX (AP) — The company that owns a luxury jet that crashed and killed Latin music star Jenni Rivera is under investigation by the U.S. Drug Enforcement Administration, and the agency seized two of its planes earlier this year as part of the ongoing probe.

DEA spokeswoman Lisa Webb Johnson confirmed Thursday the planes owned by Las Vegas-based Starwood Management were seized in Texas and Arizona, but she declined to discuss details of the case. The agency also has subpoenaed all the company's records, including any correspondence it has had with a former Tijuana mayor who U.S. law enforcement officials have long suspected has ties to organized crime.

The man widely believed to be behind the aviation company is an ex-convict named Christian Esquino, 50, who has a long and checkered legal past. Corporate records list his sister-in-law as the company's only officer, but insurance companies that cover some of the firm's planes say in court documents that the woman is merely a front and that Esquino is the one in charge.

Esquino's legal woes date back decades. He pleaded guilty to a fraud charge that stemmed from a major drug investigation in Florida in the early 1990s and most recently was sentenced to two years in federal prison in a California aviation fraud case. Esquino, a Mexican citizen, was deported upon his release. Esquino and various other companies he has either been involved with or owns have also been sued for failing to pay millions of dollars in loans, according to court records.

The 43-year-old California-born Rivera died at the peak of her career when the plane she was traveling in nose-dived into the ground while flying from the northern Mexican city of Monterrey to the central city of Toluca early Sunday morning. She was perhaps the most successful female singer in grupero, a male-dominated Mexico regional style, and had branched out into acting and reality television.

It remained unclear Thursday exactly what caused the crash and why Rivera was on Esquino's plane. The 78-year-old pilot and five other people were also killed. Esquino was not on the plane.

The late singer's brother, Pedro Rivera Jr., said that he didn't know anything about the owner or why or how she ended up in his plane.

Esquino told the Los Angeles Times in a telephone interview from Mexico City earlier this week that the singer was considering buying the aircraft from Starwood for $250,000 and the flight was offered as a test ride. He disputed reports that he owns Starwood, maintaining that he is merely the company's operations manager "with the expertise."

In response to an email from The Associated Press, Esquino said he did not want to comment. Calls to various phone numbers associated with him rang unanswered.

Esquino is no stranger to tangles with the law. He was indicted in the early 1990s along with 12 other defendants in a major federal drug investigation that claimed the suspects planned to sell more than 480 kilograms of cocaine, according to court records. He eventually pleaded guilty to conspiring to conceal money from the IRS and was sentenced to five years in prison, but much of the term was suspended for reasons that weren't immediately clear.

He served about five months in prison before being released.

Cynthia Hawkins, a former assistant U.S. attorney who handled the case and is now in private practice in Orlando, remembered the investigation well.

"It was huge," Hawkins said Thursday. "This was an international smuggling group."

She said the case began with the arrest of Robert Castoro, who was at the time considered one of the most prolific smugglers of marijuana and cocaine into Florida from direct ties to Colombian drug cartels in the 1980s. Castoro was convicted in 1988 and sentenced to life in prison, but he then began cooperating with authorities, leading to his sentence being reduced to just 10 years, Hawkins said.

"Castoro cooperated for years," she said. "We put hundreds of people in jail."

He eventually gave up another smuggler, Damian Tedone, who was indicted in the early 1990s along with Esquino and 11 others in a conspiracy involving drug smuggling in Florida in the 1980s at a time when the state was the epicenter of the nation's cocaine trade.

Tedone also cooperated with authorities and has since been released from prison. Telephone messages left Thursday for both Tedone and Castoro were not returned.

Esquino eventually pleaded guilty to the lesser offense of concealing money from the IRS.

Joseph Milchen, Esquino's attorney at the time, said Thursday the case eventually revolved around his client "bringing money into the United States without declaring it."

However, Milchen acknowledged that a plane purchased by Esquino was "used to smuggle drugs."

He denied his former client has ever had anything to do with illegal narcotics.

"The only thing he has ever done is with airplanes," Milchen said.

Court filings also indicate Esquino was sentenced to two years in federal prison after pleading guilty in 2004 to committing fraud involving aircraft he purchased in Mexico, then falsified the planes' log books and re-sold them in the United States.

Also in 2004, a federal judge ordered him and one of his companies to pay a creditor $6.2 million after being accused of failing to pay debts to a bank.

As the years passed, Esquino's troubles only grew.

In February this year, a Gulfstream G-1159A plane the government valued at $500,000 was seized by the U.S. Marshals Service on behalf of the DEA after landing in Tucson on a flight that originated in Mexico

Four months later, the DEA subpoenaed all of Starwood's records dating to Dec. 13, 2007, including federal and state income tax documents, bank deposit information, records on all company assets and sales, and the entity's relationship with Esquino and more than a dozen companies and individuals, including former Tijuana Mayor Jorge Hank-Rhon, a gambling mogul and a member of one of Mexico's most powerful families. U.S. law enforcement officials have long suspected Hank-Rhon is tied to organized crime but no allegations have been proven. He has consistently denied any criminal involvement.

He was arrested in Mexico last year on weapons charges and on suspicion of ordering the murder of his son's former girlfriend. He was later freed for lack of evidence.

The subpoena was obtained by the U-T San Diego newspaper.

A Starwood attorney listed on the subpoena, Jeremy Schuster, declined Thursday to provide details.

"We don't comment on matters involving clients," he said.

In September, the DEA seized another Starwood plane — a 1977 Hawker 700 with an insured value of $1 million — after it landed in McAllen, Texas, from a flight from Mexico.

Insurers of both aircraft have since filed complaints in federal court in Nevada seeking to have the Starwood policies nullified, in part, because they say Esquino lied in the application process when he noted he had never been indicted on drug-related criminal charges. Both companies said they would not have issued the policies had he been truthful.

Another attorney for Starwood has not responded to phone and email messages seeking comment, and no one was at the address listed at its Las Vegas headquarters. The address is a post office box in a shipping and mailing store located between a tuxedo rental shop and a supermarket in a shopping center several miles west of the Las Vegas Strip.

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Associated Press writers Elliot Spagat in San Diego and Ken Ritter in Las Vegas contributed to this report.

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PUC plan would put trust funds at risk

Even the most inattentive 401(k) owner surely understands today that the markets can bite you where it hurts, that promises of long-term investment gains can evaporate in the blink of a short-term crash and that the less understandable an investment scheme is, the more dangerous it is.

Why, then, is California Public Utilities Commissioner Timothy A. Simon pressing so hard to subject billions of dollars of public trust fund money earmarked for the decommissioning of the state's two major nuclear plants to the same sorts of risks?

Simon's initiative is on the PUC agenda for Thursday — the commission's last meeting of the year and, as it happens, Simon's last as commissioner. He returns to the private sector at the end of the year.

If this is to be his legacy, it's a curious one. The trust funds he wants to monkey with contain about $6 billion raised from ratepayers' bills and conservative investments in stocks and bonds. Simon's proposal laments that the money is invested in an "ultra-conservative" way, as though that's a bad thing in an era when non-conservative investing has produced non-trivial losses.

Simon's alternative is to broaden the permissible investments to include derivatives, real estate, hedge funds and other wild and crazy categories. He favors allowing the utilities to turn over more of the funds to investment managers whose performance, as a group, is none too impressive — and to double or even quadruple the maximum fees those managers can be paid.

His idea is for the trust funds to harvest the higher investment yields that more aggressive investing can produce over the long term.

But it's not certain that Diablo Canyon and San Onofre, the state's two big nuclear plants, will be with us for the long term. Originally it was assumed that they would both operate until their federal licenses expire in the early 2020s, when they would obtain routine 20-year extensions.

But Pacific Gas & Electric recently suspended its application for a license extension for Diablo Canyon, pending a seismic study inspired by the 2011 earthquake and tsunami that wrecked Japan's Fukushima nuclear plant. And San Onofre has been offline almost all year, thanks to a botched generator upgrade that has raised doubts whether it will ever operate again.

The trust funds are calculated to be 90% on their way to covering their needs, assuming average investment earnings in the future. That puts a lot at stake in changing the investment rules, which is why ratepayer advocates are unnerved at the prospect.

"With a great deal of uncertainty about the continuing life of Diablo Canyon and San Onofre, this is not the time to decide we're going to take on additional risk to pump up our returns," Truman Burns, a program supervisor at the PUC's Division of Ratepayer Advocates, told me.

Here's the background:

Under PUC rules dating back to the 1980s, the state's three major utilities must accumulate trust funds out of customer rates to pay for the eventual dismantling and cleanup of Diablo Canyon and San Onofre.

These are big jobs. They involve disassembling the plants, excavating and decontaminating the soil and finding some way to dispose of radioactive equipment and spent fuel — especially since federal plans to store spent fuel in a central depository have come to nought.

The whole process, including hanging on to spent fuel until it cools down, can take 30 years. As a result, estimates of the cost range widely, depending on forecasts of investment returns, inflation and the time and complexity of the job. Estimates on San Onofre from Southern California Edison, its majority owner (San Diego Gas & Electric owns a small piece), have run from a little less than $4 billion to nearly $9 billion.

Since the plants went into operation, the utilities have placed a decommissioning charge on every bill and paid the money into the trust funds, which are kept separate from their general corporate coffers. Edison customers currently pay about $24 million a year.

That brings us to what to do with the trust-fund money until it's needed. The rules have been conservative — though not conservative enough to avoid a hit in 2008. No more than 60% can be in stocks and no more than 20% in foreign stocks. At least 50% of the stock portfolio must invested in low-cost index funds.

Bonds have to be investment grade, not junk. No "alternative" investments like derivatives and real estate, which really cratered go-go portfolios in the crash, are permitted. And overall fees to investment managers can't be more than 0.3% of the portfolio value.

Under the changes favored by Simon, the cap on stocks would be raised to 80%, the minimum portion required to be passively managed would drop from 50% to 25%; and riskier alternatives such as junk bonds, real estate, commodities and hedge funds would be permitted to varying extent. These options would become available when the plants get their license extensions, but the federal Nuclear Regulatory Agency has never turned down an application.

What perplexes consumer advocates is that Simon's interest in alternative investments came out of the blue. The utilities never asked for such latitude. And since the trust funds aren't their money, but their customers', it's unclear why they would care. For the record, they've said they'd be OK with the changes.

Simon's background does includes work in the investment field. A family friend of former Assembly Speaker Willie Brown, he was associated with several investment firms until Gov. Arnold Schwarzenegger named him his appointments secretary in 2006. The next year Schwarzenegger named Simon, a novice in utility regulation with a recent bankruptcy on his record, to the PUC.

In 2008, Simon raised eyebrows by soliciting donations from Edison, PG&E and SDG&E for a conference hosted by the nonprofit Willie L. Brown Jr. Institute on Politics and Public Service — while the firms were seeking an important ruling from the PUC. Two weeks after the conference, they got it.

When I called Simon's office to ask about the genesis of the investment plan and about his career plans for the future, his office replied by email that he couldn't speak about the proposal because it's "pending before the commission." The email said Simon's goal is "to maximize ratepayer returns while minimizing risk." As any responsible investment manager knows, however, you can't do both. You can only maximize returns by increasing risk.

One provision of the Simon plan — increasing the ratio of actively managed investments — is particularly perplexing.

The performance of active managers has been so grisly it makes "Reservoir Dogs" look like an episode of "Teletubbies." To get technical, in the 12 months through mid-2012, S&P stock indexes beat 89.84% of corresponding actively managed funds. Yet for the privilege of watching an investment hotshot send your money down the drain, you pay a much higher management fee. On Wall Street, this must be what they mean by "twofer."

Conceivably, any broader investment alternative can pay off over a suitably long time span. But when the commission meets this week to ponder the future of the investment markets, the question will be whether they understand the risks involved, especially if there's a shortfall and the money is needed sooner, not later.

Then, in the words of Matthew Freedman, a lawyer at the Utility Reform Network, a ratepayer advocacy group: "The utilities will say it's not their responsibility to make up the shortfall, and the ratepayers will be left holding the bag."

Michael Hiltzik's column appears Sundays and Wednesdays. Reach him at mhiltzik@latimes.com, read past columns at latimes.com/hiltzik, check out facebook.com/hiltzik and follow @latimeshiltzik on Twitter.

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