Ferrol Sams, Doctor Turned Novelist, Dies at 90

Ferrol Sams, a country doctor who started writing fiction in his late 50s and went on to win critical praise and a devoted readership for his humorous and perceptive novels and stories that drew on his medical practice and his rural Southern roots, died on Tuesday at his home in Lafayette, Ga. He was 90.

The cause, said his son Ferrol Sams III, also a doctor, was that he was “slap wore out.”

“He lived a full life,” his son said. “He didn’t leave anything in the tank.”

Dr. Sams grew up on a farm in the rural Piedmont area of Georgia, seven mud-road miles from the nearest town. He was a boy during the Depression; books meant escape and discovery. He read “Robinson Crusoe,” then Mark Twain and Charles Dickens. One of his English professors at Mercer University, in Macon, suggested he consider a career in writing, but he chose another route to examining the human condition: medical school.

When he was 58 — after he had served in World War II, started a medical practice with his wife, raised his four children and stopped devoting so much of his mornings to preparing lessons for Sunday school at the Methodist church — he began writing “Run With the Horsemen,” a novel based on his youth. It was published in 1982.

“In the beginning was the land,” the book begins. “Shortly thereafter was the father.”

In The New York Times Book Review, the novelist Robert Miner wrote, “Mr. Sams’s approach to his hero’s experiences is nicely signaled in these two opening sentences.”

He added: “I couldn’t help associating the gentility, good-humored common sense and pace of this novel with my image of a country doctor spinning yarns. The writing is elegant, reflective and amused. Mr. Sams is a storyteller sure of his audience, in no particular hurry, and gifted with perfect timing.”

Dr. Sams modeled the lead character in “Run With the Horsemen,” Porter Osborne Jr., on himself, and featured him in two more novels, “The Whisper of the River” and “When All the World Was Young,” which followed him into World War II.

Dr. Sams also wrote thinly disguised stories about his life as a physician. In “Epiphany,” he captures the friendship that develops between a literary-minded doctor frustrated by bureaucracy and a patient angry over past racism and injustice.

Ferrol Sams Jr. was born Sept. 26, 1922, in Woolsey, Ga. He received a bachelor’s degree from Mercer in 1942 and his medical degree from Emory University in 1949. In his addition to his namesake, survivors include his wife, Dr. Helen Fletcher Sams; his sons Jim and Fletcher; a daughter, Ellen Nichol; eight grandchildren; and nine great-grandchildren.

Some critics tired of what they called the “folksiness” in Dr. Sams’s books. But he did not write for the critics, he said. In an interview with the Georgia Writers Hall of Fame, Dr. Sams was asked what audience he wrote for. Himself, he said.

“If you lose your sense of awe, or if you lose your sense of the ridiculous, you’ve fallen into a terrible pit,” he added. “The only thing that’s worse is never to have had either.”

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Gordon Brush plant owner bristles at red tape tying up expansion

Ken Rakusin is frustrated.

You would be too.

Since 2009, the owner of Gordon Brush Manufacturing Co. has been trying to expand his 51,000-square-foot City of Commerce factory by 20,000 square feet. That would mean a larger factory floor, more office space for the engineers who work with customers to design new products, conference rooms, a spacious cafeteria.

It would mean room to expand beyond Rakusin's current workforce of 85. More sales. Higher payroll. More property tax, sales tax, income tax. A $1.5-million investment in construction alone.

Four years on, and he's still trying. "I've almost given up," Rakusin, 61, told me one day recently as we toured the plant. "For the life of me, I can't understand it. If I rented out the building and moved to Nevada, they'd welcome me there with open arms."

The glitch apparently has something to do with a provision of the Los Angeles County building and fire code that would be affronted by Rakusin's construction plan. Before we get to the details, let's recognize that his experience underscores a major flaw in California's business development program, such as it is. Call it the missing middle: No one has the responsibility to mediate among various code and regulatory agencies in cases where it might make sense to work around the rules in a rule book to enable a California manufacturer to remain in place and even expand.

In the case of Gordon Brush, the City of Commerce and the Los Angeles County Economic Development Corp. have each taken a crack at finding a way around the fire code. "I've asked every question possible, and the answers come back every time: 'Nope,'" Rakusin says.

He echoes other small-business owners in observing that California isn't even organized to clue them in on the pro-business programs it does offer. Rakusin recalls that at an industry conference during the depths of the 2008 recession, a brush maker from Missouri told him about that state's innovative "workshare" program, through which the state paid some of the wages of skilled workers to tide companies over the slump and keep layoffs to a minimum.

Rakusin wondered if California had a similar program, only to discover that it did — and had pioneered the concept! "But nobody knew about it here," he says. "How come I had to learn about it from someone from Missouri?" (The California program helped Rakusin keep some workers through the most recent recession that the company could not afford to lose for the long term.)

What's at risk is a distinguished Southern California business with a veteran force of skilled workers earning as much as $20 an hour, plus medical benefits and a 401(k) plan. Gordon Brush was founded in 1951 in Los Angeles and acquired in 1974 by William Loitz, a McDonnell Douglas engineer who had helped put a man on the moon and figured that was capstone enough to anyone's aerospace career, as Rakusin recalls.

By 1989 the business was in trouble. Rakusin was an executive at Xerox in El Segundo looking for a new challenge, but when he first met with Loitz he was doubtful. "I think you'll be able to fix this," Loitz told him. Rakusin thought at first, "I belong at Xerox," then decided he'd be a fool to turn down the gamble of a new career. In a year he had doubled Gordon's profit and by 2010 he had bought out the last of the Loitz family's interest. The company moved to its Commerce location in 1998.

You may think the brush business is simple and low-tech, but that's not true even if all you know about it is paintbrushes. There are cheap paintbrushes and expensive ones, brushes for house painters and portrait artists, all requiring different shapes, sizes and bristles. There are cheap cosmetic brushes made from white goat hair and artist's brushes made from blue squirrel fur, which costs $5,000 a pound.

"We've sent brushes to the moon and Mars," Rakusin told me, describing a contract from the Jet Propulsion Laboratory to equip the Mars and lunar rovers with stainless steel brushes for sweeping clean their collection scoops. "A guy came over from JPL and said, 'We need three — one to go up and two for testing.'" His finished products were nestled like precious jewels or sensitive explosives in a suitcase with foam padding so they wouldn't be jostled on their way to La Cañada Flintridge.

The factory floor is studded with huge half-million-dollar, computer-driven machines from Germany, Italy and Belgium. But despite what you may have heard, robots aren't perfect. Often there's no substitute for a human eye and hand to put the finishing touches on a product or to fix a flaw.

The bestselling brush Gordon makes is a hand-held, all-purpose one made of wood veneer, which the factory can turn out at the rate of 30,000 a day. It uses robot machines to drill holes in the 8-inch handles and fill them with tufts of wire, watched over by a single operator per shift. ("This is how I compete with China," Rakusin says.)

At the other end of the scale are custom and one-off items that Gordon Brush makes for NASA, for the semiconductor industry, for the Pentagon — you'd be amazed at who needs a brush with a unique design. For example, the Army: As Rakusin tells the story, it was discarding the gun barrels of its Abrams tank after their bores got too encrusted with soot.

"They were throwing them away at $150,000 each, until somebody said, 'Can't we clean them instead?'" The Pentagon had three teams of engineers working with three brush companies to come up with a solution. Gordon won the contract with a bulbous design made of heavy plastic with ranks of short wire bristles — $150 each to save gun barrels worth a thousand times as much.

Rakusin's decision to expand the plant in 2009 came as the economic recovery got underway. His idea was to add a two-story annex on one side of the factory, with room for an expanded employee cafeteria and more office space. That would free up as much as 20,000 square feet for manufacturing. He would also push his loading docks out into his parking lot for an additional 4,500 square feet of warehouse.

In the beginning, things moved fast. The Commerce planning commission gave zoning approval in January 2011, the county fire department asked for some minor changes in February, then electrical approvals followed, as well as assents from Southern California Edison and the railroads whose infrastructure abuts the property.

Then, in May 2011, the county fire marshals objected that the proposed expansion violated fire code provisions governing the size of a building relative to its lot.

And that was that.

"You're dealing with absolutes," says Alex Hamilton, the City of Commerce's top business development official. "It's a building and fire code issue."

He says the project sailed through the city's planning process — "from a zoning perspective it looked fine" — but the fire code was out of the city's jurisdiction. Hamilton says fire officials tried to find a way around the code restrictions but couldn't. "This received attention at the highest levels," he says. (Fire Department officials didn't return my calls.)

The L.A. County Economic Development Corp. ran into the same roadblock, says Barbara Levine, the LAEDC's regional officer for the City of Commerce. Rakusin "was talking to the right people," she says. He just wasn't getting the right answers.

It's conceivable that the fire code provision at issue in Rakusin's expansion has such important safety implications that what it says goes. But it's also possible that the problem is that every agency sees his issue from within its own sandbox, because no one in state or local government is entrusted with the power to bring them together and make a beach.

Rakusin says he receives "one letter a week" from economic development agencies in other states. They don't tell him anything he doesn't already know. He owns a factory in Wisconsin, where the purchase of factory equipment is exempt from sales tax; in Commerce, a $1-million machine will cost him an extra $90,000 in state and local levies.

Throughout his ordeal, Rakusin got the strong impression that things might have gone a little better if he was seriously threatening to leave the state. That's a dangerous impression to give a business owner, especially a manufacturer already sensitive about being ignored.

"Manufacturing gets no attention, but it's the most consistent job creator there is," he says, "and this is already the most expensive place to do it." Are these the businesses California should be taking for granted?

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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Mahony stripped of public church duties

Los Angeles Archbishop Jose Gomez  on Thursday announced dramatic actions in response to the priest abuse scandal, saying that Cardinal Roger Mahony would no longer perform public duties in the church and that Santa Barbara Bishop Thomas J. Curry has stepped down.

Gomez said in a statement that Mahony -- who led the L.A. archdiocese from 1985 to 2011 -- "will no longer have any administrative or public duties."

Gomez also announced the church has released a trove of confidential church files detailing how the Los Angeles archdiocese dealt with priests accused of molestation.

Gomez wrote in a letter to parishioners that the files would be disturbing to read.

"I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed," he wrote. "We need to acknowledge that terrible failure today."

Gomez's statement came a week after the release of internal Catholic church records. The records showed 15 years before the clergy sex abuse scandal came to light, Mahony and Curry discussed ways to conceal the molestation of children from law enforcement. Those records represent just a fraction of the files the church released Thursday. The Times is now reviewing those files.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The records released last week offer the strongest evidence yet of a concerted effort by officials in the nation's largest Catholic diocese to shield abusers from police. The newly released records, which the archdiocese fought for years to keep secret, reveal in church leaders' own words a desire to keep authorities from discovering that children were being molested.

The records contain memos written in 1986 and 1987 by Mahony and Curry, then the archdiocese's chief advisor on sex abuse cases. In the confidential letters, Curry proposed strategies to prevent police from investigating three priests who had admitted to church officials that they had abused young boys.

Curry suggested to Mahony that they prevent the priests from seeing therapists who might alert authorities and that they give the priests out-of-state assignments to avoid criminal investigators. Mahony, who retired in 2011, has apologized repeatedly for errors in handling abuse allegations.

Gomez's letter detailed changes in the status of Curry and Mahony in the church.

"Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara,” Gomez wrote in a letter.

[Updated
at 9:44 p.m.: An archdiocese spokesman, Tod Tamberg, said that beyond cancelling his confirmation schedule, Mahony's day-to-day life as a retired priest would be largely unchanged. He resides at a North Hollywood parish, and Tamberg said he would remain a “priest in good standing” and continue to celebrate Mass there.]

The records were released hours after a judge signed an order requiring the church to do so.

In a written order, Los Angeles County Superior Court Judge Emilie H. Elias gave the church a Feb. 22 deadline to turn over about 30,000 pages of internal memos, psychiatric reports, Vatican correspondence and other documents.

“Let’s just get it done,” Elias said in court Thursday.

Her order brought to a close five and a half years of legal wrangling and delays and set the stage for a raft of new and almost certainly embarrassing revelations about the church’s handling of pedophile priests.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The files Elias ordered released are the final piece of a landmark 2007 settlement between the archdiocese and about 500 people who said clergy abused them. As part of that $660-million settlement, the archdiocese agreed to hand over the personnel files of accused abusers. Victims said the files would provide accountability for church leaders who let pedophiles remain in the ministry; law enforcement officials said the records would be important investigative tools.

But the release was delayed for years by appeals and the painstaking process of reading and redacting 89 files, some hundreds of pages long. A private mediator in 2011 ordered the church to black out the names of victims and archdiocese employees not accused of abuse, saying he wanted to avoid “guilt by association.”

Earlier this month, at the urging of the Los Angeles Times and the Associated Press, Elias ordered the names restored, saying the public had a right to know what Mahony and others in charge did about abuse. The church complained about the cost of restoring the redactions and suggested to the judge earlier this week that generic cover sheets for the files listing top officials and their dates of service should suffice.

After criticism from attorneys for the victims and the media, the church abandoned that plan and its lawyers said in court Thursday “anybody in a supervisory role” would be named in the documents. Elias’ order specified that the names of the archbishop, the vicar who handled clergy abuse, bishops and the heads of Catholic treatment centers for pedophiles be included.

Here is Gomez's full letter:

My brothers and sisters in Christ,

This week we are releasing the files of priests who sexually abused children while they were serving in the Archdiocese of Los Angeles.

These files document abuses that happened decades ago. But that does not make them less serious.

I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed.

We need to acknowledge that terrible failure today. We need to pray for everyone who has ever been hurt by members of the Church. And we need to continue to support the long and painful process of healing their wounds and restoring the trust that was broken.

I cannot undo the failings of the past that we find in these pages. Reading these files, reflecting on the wounds that were caused, has been the saddest experience I’ve had since becoming your Archbishop in 2011.

My predecessor, retired Cardinal Roger Mahony, has expressed his sorrow for his failure to fully protect young people entrusted to his care. Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara.

To every victim of child sexual abuse by a member of our Church: I want to help you in your healing. I am profoundly sorry for these sins against you.

To every Catholic in the Archdiocese of Los Angeles, I want you to know: We will continue, as we have for many years now, to immediately report every credible allegation of abuse to law enforcement authorities and to remove those credibly accused from ministry. We will continue to work, every day, to make sure that our children are safe and loved and cared for in our parishes, schools and in every ministry in the Archdiocese.

In the weeks ahead, I will address all of these matters in greater detail. Today is a time for prayer and reflection and deep compassion for the victims of child sexual abuse.

I entrust all of us and our children and families to the tender care and protection of our Blessed Mother Mary, Our Lady of Guadalupe and Our Lady of the Angels.

Sincerely yours in Christ,

RELATED:

L.A. church molestation records spark call for criminal inquiry

Steve Lopez: It's too late for Cardinal Roger Mahony's apologies

--  Harriet Ryan, Hector Becerra, Ashley Powers and Victoria Kim

Photo: Cardinal Roger Mahony in the entrance processional for the Mass for the Reception of Coadjutor Archbishop of Los Angeles Jose Gomez. Credit: Don Bartletti / Los Angeles Times

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Sony ignites talk of PS4 unveil with Playstation meeting

TOKYO (Reuters) – Sony Corp will this month host its first major Playstation meeting in two years, sparking a flare-up in online speculation the Japanese consumer electronics giant is preparing to unveil the successor to its 70 million-selling PS3 games console.

Sony declined to say whether it would release a new product at the meeting in New York on February 20. “We will be talking about the Playstation business,” spokesman Masaki Tsukakoshi said on Friday. A Google search for “Sony Feb 20 Playstation” returned more than 7 million hits.

The last time Sony held a Playstation event, in January 2011, it presented a protoype of its handheld Vita console. Before that, it convened a gathering in 2005 two months after it first demonstrated the PS3 concept. A meeting in 1999 revealed designs for the PS2.

It has been more than six years since Sony launched the PS3 home console, a longer gap than between it and its PS2 predecessor, adding to the anticipation that it will soon disclose its next gaming concept.

Since Sony’s last home console launch, the games market has been transformed by the boom in smartphones and tablet computers that have wooed players with free or cheap games.

Sony and other console makers Nintendo Co Ltd and Microsoft Corp now have to contend with competition from hand-held devices made by Apple Inc, Samsung Electronics and others.

Analysts expect that tablets and other mobile devices will match the power and graphics of today’s games consoles within a few years.

Struggling under competitive pressure, Nintendo on Wednesday cut its sales target for the Wii U, successor to its 100 million-selling Wii, to 4 million machines by the end of March from its launch in November, compared with an earlier forecast for 5.5 million.

(Reporting by Tim Kelly; Editing by Daniel Magnowski)

Gaming News Headlines – Yahoo! News

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Appeals judges: Anti-paparazzi law appears legal

LOS ANGELES (AP) — An appeals panel says California's anti-paparazzi statute appears to be constitutional based on a brief filed by prosecutors.

A preliminary statement by three judges in Los Angeles requires a judge who dismissed charges aimed at a paparazzo who authorities say was driving recklessly to review his order. The judge may stick to his ruling, which would trigger a full appeal, or he could schedule further arguments on the case against freelance photographer Paul Raef.

Raef was the first person charged under the new law after a high-speed chase involving Justin Bieber last year.

Superior Court Judge Thomas Rubinson dismissed two charges in November, ruling the law is too broad and is unconstitutional.

Raef's attorney David S. Kestenbaum says he is asking Rubinson to stand by his ruling and allow a full appeal.

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Insurance Industry Report Faults High Fees for Out-of-Network Care

Michael Nagle for The New York Times

Angel Gonzalez, 36, faced huge bills after emergency gallbladder surgery, despite having good insurance coverage. “I was on the hook for more than I made in a year.”

Just over a year ago, Angel Gonzalez, 36, awoke with searing chest pain at 2 a.m. A friend drove him to the closest emergency room.

Though he was living on $18,000 a year as a graduate student, Mr. Gonzalez had good insurance and the hospital, St. Charles in Port Jefferson, N.Y., was in his network. But the surgeon who came in to remove Mr. Gonzalez’s gallbladder that Sunday night was not.

He billed Mr. Gonzalez $30,000, and an assistant billed an additional $30,000. Mr. Gonzalez’s policy covered out-of-network providers, but at a rate it considered appropriate: $2,000. “I was on the hook for more than I made in a year,” Mr. Gonzalez said.

A health insurance industry report to be released on Friday highlights the exorbitant fees charged by some doctors to out-of-network patients like Mr. Gonzalez. The report, by America’s Health Insurance Plans, or AHIP, contrasts some of the highest bills charged by non-network providers in 30 states with Medicare rates for the same services. Some of the charges, the insurers assert, are 30, 40 or nearly 100 times greater than Medicare rates.

Insurers hope to spotlight a vexing problem that they say the Affordable Care Act does little to address. “When you’re out of network, it’s a blank check,” said Karen Ignagni, president and chief executive of AHIP. “The consumer is vulnerable to ‘anything goes.’ ”

“Unless we deal with cost, we won’t have affordability,” she added. “And unless we have affordability, we won’t have people participating” under the Affordable Care Act.

Among the fees on the report’s list are a $6,205 outpatient office visit to a doctor in Massachusetts for which Medicare would have paid $152; a $12,000 bill for examining a tissue specimen in New York for which Medicare would have paid $128; and a $48,983 surgeon’s fee for a total hip replacement in New Jersey that Medicare would have reimbursed at $1,543. Many of the highest billers were in New York, Texas, Florida and New Jersey.

Elisabeth R. Benjamin, co-founder of the Health Care for All New York coalition, who is often at odds with the insurance industry, said that “is one area we totally agree on.” She continued, “Out-of-network billing is just out of control.”

Even when out-of-network fees are compared with average commercial insurance reimbursements, which are usually greater than Medicare, she said, “It’s pretty outrageous.”

Doctors say the report is skewed because it focuses on a few dozen cases of overcharging that are not representative of their billing. In response to the insurers’ report, the American Medical Association noted on Thursday that a recent analysis found that doctors’ services account for just 16 percent of health care costs.

“There are outliers in every profession, in every business,” said Dr. Andrew Y. Kleinman, a plastic surgeon who is vice president of the Medical Society of the State of New York.

Dr. Kleinman also noted that insurers had effectively shifted the costs of out-of-network care onto patients by changing reimbursement formulas. Instead of the rates commercial insurers usually pay doctors, insurers increasingly are basing their out-of-network payments on Medicare rates, usually far lower.

A growing number of high-end, flexible health plans offer policies that cover outside providers at, for example, 140 percent of Medicare. “They’re selling you an insurance product you can’t use,” Dr. Kleinman said. “You’re buying an insurance policy where the out-of-network benefit is worthless.”

The industry’s own report suggests that using Medicare rates as a benchmark will lead to patients’ picking up much more of the cost for out-of-network care, whether they carefully select a specialist or, as in the case of Mr. Gonzalez and many others, have no choice in the matter.

Had Mr. Gonzalez been 65 or older, Medicare would have paid only $958 for the surgery. The average commercial price is $12,292, according to FAIR Health, an independent nonprofit group that tracks information on health care costs.

But Mr. Gonzalez’s health plan, United Healthcare, determined the fee should be $1,273, of which the company paid $838. Mr. Gonzalez filed appeals, which were rejected. He then contacted Community Health Advocates at the Community Service Society of New York for help, and the group’s caseworkers negotiated with the surgeon on his behalf.

After months of wrangling, the surgeon agreed to accept a significantly reduced payment: $340.

Consumer advocates and health insurance executives are calling for greater transparency in health care pricing, including upfront disclosure of prices of medical procedures and services.

“The health care industry can give you an estimate, just like any other industry,” said Carrie H. Colla, an assistant professor at the Dartmouth Institute for Health Policy and Clinical Practice, noting that the Dartmouth-Hitchcock Medical Center has a patient price estimator online.  

“It’s just not current practice right now,” Dr. Colla said. “Sometimes a doctor won’t even know. The patient really has to push for it.”

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Hackers target Western news organizations in China

More than 30 journalists and executives at Western news organizations in China, including the New York Times and the Wall Street Journal, have had their computers hacked, according to the news organizations and a security firm that monitors such attacks.

Over the last four months, the hackers managed to infiltrate the Times' computers, the newspaper reported Thursday. It said hackers had penetrated its computers and obtained passwords for reporters and other employees.

The hackers have been blocked and security tightened to prevent another attack, which followed an investigation by the paper into finances of relatives of Wen Jiabao, China's premier.

Mandiant Corp., a security firm brought into the case by the Times, said it found that hackers using techniques associated with the Chinese military stole emails, contacts and files from 30 journalists and executives and maintained a short list of journalists whose accounts have been repeatedly attacked.

That finding, first reported in the New York Times, was part of a December report that was expected to be made public soon, a Mandiant spokeswoman said Thursday.

The Wall Street Journal said that it too had been targeted by Chinese hackers.

Paula Keve, spokeswoman for the Journal's parent company, Dow Jones & Co., said: "Evidence shows that infiltration efforts target the monitoring of the Journal's coverage of China, and are not an attempt to gain commercial advantage or to misappropriate customer information."

Bloomberg News was targeted as well — after it published an article June 29 about the wealth of relatives of Xi Jinping, the current general secretary of the Communist Party and the person expected to become president in March. No computer breach took place.

"Our security was not compromised," Ty Trippet, a spokesman for Bloomberg, said Thursday.

"Newspapers and journalists are high-value targets," said James Lewis, a senior fellow at the Center for Strategic and International studies. "They have really good sources, and they don't publish everything."

But they are just one target in many. Cyber-security experts say the United States has become increasingly vulnerable to foreign hackers who could target the nation's power grid, gas pipelines and other crucial infrastructure.

Those same hackers routinely and aggressively break into a wide range of corporate America's computers, including those of oil and financial companies.

Yet corporations have blocked legislation on Capitol Hill that would require higher standards to protect against breaches, saying it would be too costly and burdensome.

The full extent of how deeply hackers have penetrated into corporate America is not known. Companies are usually reluctant to talk publicly about attacks or to share information with the government.

"We know that every Fortune 500 company has had a problem, and probably every Fortune 1,000 company has had a problem too," Lewis said.

High-profile attacks like the ones that targeted Internet search giant Google Inc. three years ago may make it seem as if computer networks in the U.S. are under rising attack, but Lewis said networks are just under "sustained" attack.

"It's as bad as it can be. What's happening is that people are noticing it. That's a big change," Lewis said. "Four years ago nobody could spell cyber-security. Now everyone's waking up to the fact that the networks we depend on are totally insecure."

Cybersecurity experts said they are optimistic that the U.S. government is developing a cyber arsenal capable of repelling attacks.

Alan Paller, director of research at the SANS Institute, said the Defense Department has a growing ability to defend against sophisticated attacks — to protect crucial infrastructure and the Defense Department itself. It also has developed a "cyber offense," the ability to "project power" and to carry out sophisticated attacks itself, Paller said.

The hackers routed their attacks through computers at U.S. universities, according to the New York Times. Hackers installed malicious software that allowed them to enter the newspaper's computers. The software, known as malware, was "identified by computer security experts as a specific strain associated with computer attacks originating in China," the newspaper said.

Chinese officials denied they were responsible.

"Chinese laws prohibit any action including hacking that damages Internet security," China's Ministry of National Defense told the New York Times. It added: "To accuse the Chinese military of launching cyber attacks without solid proof is unprofessional and baseless."

Eileen M. Murphy, the Times' vice president for corporate communications, said Thursday the newspaper stood by the story.

michael.muskal@latimes.com

jessica.guynn@latimes.com

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Bell city clerk testifies signatures on documents were forged

A key prosecution witness in the Bell corruption case testified Wednesday that signatures on city contracts, minutes for council meetings, agendas and even resolutions were forged.

Bell City Clerk Rebecca Valdez's testimony could bolster the defense's argument that record-keeping in Bell was so sloppy that it would be difficult to prove that six former council members inflated their annual salaries to nearly $100,000 by serving on boards and commissions that met for a few minutes, if ever.

On her third day on the witness stand, Valdez said she noticed the forgeries in 2010 when pulling together records requested by investigators looking into possible wrongdoing. She said she never looked into the forgeries, and didn't make a list of the questionable documents.

Los Angeles County Superior Court Judge Kathleen Kennedy ordered Valdez to look through the paperwork being used as exhibits for the trial.

After thumbing through binders filled with documents from 2005 to 2010, the city clerk said she detected about eight agendas from 2005 to 2006 that had forged signatures.

"It looks like R Valdez, but that's not the way I sign," Valdez said of the name written in cursive. She said the forgery appeared to be the work of her predecessor, Theresa Diaz.

"That appears to be her handwriting?" defense attorney Alex Kessel asked Valdez.

"Yes."

"So from your knowledge of her penmanship you believe she signed your name?"

"Yes."

As the city clerk, Valdez was responsible for keeping accurate records of public meetings but her testimony has revealed that she signed minutes for meetings she didn't attend, sometimes made mistakes in her records and for three years was the clerk in name only, performing almost none of the required duties.

"Forgery is another area that questions the legitimacy and accuracy of the minutes and agenda which is the cornerstone of the district attorney's argument that no work was being done," Kessel told The Times.

The prosecution has used many documents signed by Valdez to illustrate that Luis Artiga, Victor Bello, George Cole, Oscar Hernandez, Teresa Jacobo and George Mirabal did little work when it came to the authorities that beefed up their paychecks.

Among those is the Solid Waste and Recycling Authority, which Deputy Dist. Atty Edward Miller has labeled a "sham."

On Wednesday Miller read the ordinance for that authority, which said it could be created "for the purpose of acquiring, constructing, maintaining or operating an enterprise for the collection, treatment or disposal of waste."

Miller then asked Valdez: "Have you seen an enterprise for the collection, treatment or disposal of waste in the city of Bell?"

"No," she replied.

Defense attorneys have attempted to pin much of the city's alleged corruption on former City Administrator Robert Rizzo. Valdez said Rizzo expected people to do what he said and was a chronic micromanager.

"It was pretty well-known to the employees that important events that happened in your life, like going to school, having a baby or buying a house — he had to be the first one to find out," Valdez said. "If he found out through a second person or third person, the employee would kind of be in the doghouse.

"When I got married," she said, "he was the first one to know before any of my peers knew."

Valdez said Rizzo questioned her about a house she was thinking of buying and urged her to make a 20% down payment. When she told him she didn't have the money, Rizzo offered her a $48,000 loan, she said.

Prosecutors say her loan, along with dozens of others provided to city employees, was given without proper authorization.

Valdez, who was granted immunity for her testimony, said she processed the repayment of such loans. She also prepared salary contracts for the council members, as well as Rizzo. She said she was aware of Rizzo's salary before the news became public.

Valdez testified that during a July 2010 meeting requested by Times reporters, Artiga and Hernandez appeared shocked when they heard that Rizzo was making nearly $800,000.

She also recalled that Hernandez, "said something to the effect of 'To have a good city manager you have to pay him well.' "

corina.knoll@latimes.com

ruben.vives@latimes.com

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Timeline: From RIM to BlackBerry, a company in transition

(Reuters) – Research In Motion Ltd has launched its new line of re-engineered BlackBerry smartphones, taking the wraps off the long-delayed devices at a series of events around the world on Wednesday.

The company used the occasion to announce that it was changing its name to BlackBerry, hoping a new brand identity will polish its tarnished image and help give it a fresh start.

The company, which has steadily lost ground in the hyper-competitive market to Apple Inc’s iPhone and devices running Google Inc’s Android operating system, is gambling its future on the BlackBerry 10. It sees the new line as make-or-break – its best hope for a comeback in an industry it once dominated.

Here are important milestones in the company’s history:

February 1985 – Mike Lazaridis and Douglas Fregin co-found Research In Motion as an electronics and computer science business based in Waterloo, Ontario, the Canadian university city where Lazaridis studied.

1989 – RIM develops a network gateway later introduced as RIMGate, a predecessor to its BlackBerry Enterprise Server.

1992 – Jim Balsillie joins RIM as co-CEO, mortgaging his house and investing $ 250,000.

1994 – RIM launches a handheld point-of-sale card reader, which verifies debit and credit transactions directly to a bank.

1995 – RIM builds its own radio modem for wireless email.

1997 – RIM lists on the Toronto Stock Exchange, raising more than $ 115 million.

January 1999 – RIM launches rebranded BlackBerry email service across North America, offering the first wireless device to synch with corporate email systems. Sales jump 80 percent to $ 85 million. The next year revenue reaches $ 221 million.

Late 1999 – The company lists its shares on Nasdaq, raising another $ 250 million. RIM introduces BlackBerry 850 Wireless Handheld, combining email, wireless data networks and a traditional “Qwerty” keyboard. Demand explodes.

Sept 11, 2001 – People trapped in New York’s World Trade Center use their BlackBerrys to communicate after cellular networks collapse.

November 2001 – NTP sues RIM for patent infringement, the start of a five-year legal tussle. Late in the battle, the U.S. Justice Department says a threatened BlackBerry shutdown would damage the public interest due to the government’s reliance on the system.

2002 – RIM adds voice transmission to the BlackBerry.

2004 – RIM’s subscriber base surpasses 1 million BlackBerry users.

March 2006 – RIM pays $ 612 million to settle NTP dispute.

January 2007 – Apple Inc’s Steve Jobs unveils first iPhone, and the company launches the BlackBerry competitor in June. Time magazine honors the phone as Invention of the Year.

October 2007 – RIM passes 10 million subscribers. News of a China distribution deal boosts shares, making it for a time the most valuable company in Canada by market capitalization.

November 2007 – Google’s open source Android platform is unveiled. It launches in October 2008.

May 2008 – RIM introduces the Bold, a major redesign and still one of its top-tier products. The new model matches the resolution, but not size, of Apple’s iPhone screen.

July 2008 – Apple opens App Store in 22 countries and releases iPhone 3G, preloaded with App Store support.

November 2008 – RIM launches BlackBerry Storm, its first touchscreen and keyboard-less device. The screen uses a tactile feedback technology known as haptics, allowing a user to click down to select actions. The model bombs.

April 2009 – RIM’s App World goes live.

June 2009 – Apple announces and releases iPhone 3GS.

June 2010 – RIM pays C$ 200 million for QNX Software Systems, getting an industrial-strength operating system used in massive Internet routers, nuclear power plants and car infotainment systems. In same month Apple launches iPhone 4.

August 2010 – RIM launches BlackBerry Torch, a touchscreen phone with slide-out keyboard and improved web browser.

Sept 27, 2010 – RIM announces the PlayBook tablet, running on a version of the QNX system.

December 2010 – RIM acquires user interface company The Astonishing Tribe.

February 2011 – Nokia, the world’s largest smartphone vendor by volume, abandons its Symbian operating system to form alliance with Microsoft Corp.

March 2, 2011 – Apple unveils iPad 2 and ships it later in the same month.

April 19, 2011 – RIM launches PlayBook in United States and Canada. Early reviews pan the tablet for lacking core BlackBerry functions such as email and organizer functions. The company says it plans to add them in February 2012.

April 28, 2011 – RIM slashes an already dismal financial forecast for current quarter but maintains a full-year earnings outlook of $ 7.50 a share.

June 16, 2011 – RIM misses its lowered quarterly revenue target, gives more limp forecasts and resets the full-year outlook to between $ 5.25 and $ 6 a share. It says it will slash more than 10 percent of its workforce and buy back stock.

July 12, 2011 – Executives deflect criticism at annual general meeting after an activist shareholder withdrew a motion to force co-CEOs Lazaridis and Balsillie to relinquish their other shared role as board chairmen.

Sept 6, 2011 – A second activist shareholder asks the board to wrest control from Lazaridis and Balsillie and consider RIM putting itself up for sale or spinning off units.

Sept 15, 2011 – RIM reports another poor quarter including a sharp drop in phone and tablet shipments. It points to the low end of latest full year earnings outlook.

Oct 10-13, 2011 – Millions of BlackBerry users on five continents are left without email, Internet and instant messaging service by a massive failure of RIM’s infrastructure.

Nov 29, 2011 – In an acknowledgement of its slipping grip on the corporate sector, RIM offers to manage rival devices including Apple’s iPhone and iPad.

Dec 2, 2011 – The company books a huge writedown on PlayBook inventory, which it is discounting heavily to provoke sales.

Dec 15, 2011 – RIM delays its QNX-based BlackBerry 10 phones until late 2012 and gives tepid short-term outlook. The co-CEOs agree to an immediate pay cut to $ 1 each.

Jan 22, 2012 – RIM says Lazaridis and Balsillie are stepping down from their shared roles as chief executives and chairmen roles they share. The company appoints Thorstein Heins as CEO and Barbara Stymiest as chair of the board.

March 29, 2012 – Heins promises a strategic overhaul as RIM reports a slump in BlackBerry shipments and says RIM will no longer issue financial forecasts.

May 29, 2012 – RIM says it has hired bankers to assist with a strategic review and warns that it will likely report a fiscal first-quarter operating loss.

June 28, 2012 – RIM delays BlackBerry 10 again, putting off the launch to early 2013.

Sept 24, 2012 – RIM’s Toronto-listed stock touches C$ 6.10, its lowest level in nearly a decade.

Sept 27, 2012 – RIM surprises investors with a narrower-than-expected loss and boosts its cash reserves, sparking a rally that will extend into late December.

Nov 12, 2012 – RIM says it will launch BlackBerry 10 on January 30.

Dec 21, 2012 – RIM shares plunge more than 20 percent on fears that a new fee structure for its high-margin services segment could put pressure on a business that has set the company apart from its competitors.

Jan 30, 2013 – Heins formally unveils the BlackBerry 10 at a glitzy launch event in New York, with simultaneous gatherings in other cities around the world.

In conjunction with the launch, Heins announces that the company is changing its name to BlackBerry.

(Reporting by Alastair Sharp and Allison Martell; Editing by Peter Galloway)

Linux/Open Source News Headlines – Yahoo! News

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Lindsay Lohan appears in court, trial delayed

LOS ANGELES (AP) — Lindsay Lohan briefly appeared in court Wednesday for the first time in nearly a year and left with a new attorney, new trial date and new judge.

Superior Court Judge Stephanie Sautner shook her head when she saw Lohan seated with her attorney, just months after the judge had warned the "Liz and Dick" star to grow up and stay out of trouble.

The actress was required to attend the pretrial hearing involving three misdemeanor counts filed after a car crash last summer. Lohan has pleaded not guilty to lying to police, reckless driving and obstructing officers from performing their duties.

Sautner previously sent her to jail, placed her under house arrest and forced her to perform morgue cleanup duty in another case.

Sautner warned Lohan on Wednesday that she could face jail time for a possible probation violation, even if she is acquitted of the counts filed after her sports car crashed into a dump truck.

Lohan was on probation at the time of the wreck and could be sentenced to 245 days in jail if a judge determines her actions in the crash were a violation of her sentence in a theft case.

Sautner, however, won't be handling Lohan's upcoming case. The judge said she is retiring before the next court hearing on March 1. Lohan will not be required to attend that hearing.

Lohan's new trial date is March 18.

Lohan was accompanied to court by her new attorney, Mark Heller, who said he wanted to get the case resolved as quickly as possible.

The judge quipped that it would only solve her legal trouble "on this coast" — a reference to her two arrests in New York since being released from supervised probation in Los Angeles in March. No charges have been filed in those cases.

Heller, a New York attorney, was granted permission to handle Lohan's California cases. He said he was meeting with prosecutors to determine how to proceed.

Sautner gave him more time by delaying the trial but said, "This is not the most complex case we've ever seen."

Lohan appeared in court in a black dress. She spoke only briefly to confirm that she was switching attorneys and no longer wanted her longtime lawyer, Shawn Holley, to represent her.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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