Prosecutor says hard drives erased in Stanford case
A prosecutor has told jurors at Texas tycoon R. Allen Stanford's fraud trial that computer hard drives belonging to the outside auditor for Stanford's Caribbean bank apparently were erased after the auditor died.
The prosecutor's comment came during questioning of a defence witness Friday. It prompted a failed mistrial request from Stanford's attorneys, who claimed the information hasn't been verified and could harm their case.
The issue came up when the prosecutor questioned a defence witness who testified he didn't have access to the auditor's work papers.
Prosecutors allege the bank was at the center of a Ponzi scheme that took billions from investors and Stanford bribed the auditor to help him hide the fraud.
Stanford's attorneys have blamed his ex-chief financial officer for the alleged fraud.
Michigan, Arizona Hold Republican Primaries Tuesday
U.S. Republican presidential hopefuls Mitt Romney and Rick Santorum are competing in two closely watched state primaries Tuesday after a day of campaigning in one of them — Michigan.
Michigan and the southwestern state of Arizona hold Republican primaries Tuesday, a week before the much-anticipated “Super Tuesday,” when 10 states hold presidential nominating contests. Republicans are selecting a candidate to face Democratic President Barack Obama in the November election.
Opinion surveys from Arizona show Romney, a former Massachusetts governor, with a clear lead over Santorum, who was a U.S. senator from Pennsylvania.
Polls from Michigan show the men in a virtual tie, while Texas Representative Ron Paul and former House speaker Newt Gingrich trail. Although Romney was born in Michigan, he is having difficulty winning the support of social conservative voters who are rallying behind Santorum.
On Monday, Romney criticized Santorum on the campaign trail, saying the former senator is not spending enough time talking about the economy. Romney said Santorum has never had a job in the private sector and he touted his own ability to create jobs.
“I happen to believe that if we want to have a strong economy and good private sector jobs, it helps to have a president who's had a private sector job and I have.”
Santorum told supporters in Michigan that his campaign did not expect to be doing so well in the state. He said this fact shows the potential his campaign has. He said his plan for improving the economy includes reducing the size of government.
“We will hit the ground running on lowering the budget. Every year we will spend less money in Washington than we did the year before. That's the budget I will propose. We will shrink the size of government.”
Paul also campaigned in Michigan Monday, while Gingrich focused on the state of Tennessee, before beginning a tour Tuesday of Georgia, the southeastern state he represented in Congress.
Pentagon: Protests Will Not Alter Afghan Mission
U.S. defense officials say the military remains committed to its mission in Afghanistan, despite days of violent protests and attacks on foreign troops that have left close to 40 people dead, including four Americans.
Pentagon officials Monday said members of the U.S.-led coalition are continuing their work training Afghan security forces. The increase in violence, sparked by the reported burning of Qurans on a U.S. military base, has raised questions about the viability of a continued U.S. presence in Afghanistan.
Pentagon spokesman George Little said Defense Secretary Leon Panetta believes the “foundations of our strategy” in Afghanistan remain sound. He said Washington is taking “the long view,” assessing what he said American forces have achieved in reversing the momentum of Taliban insurgents.
Spokesman Little added:
“We will not let recent events allow us to lose sight of the progress we are making toward our broader objectives, including our core goal of defeating al-Qaida and its terrorist allies, and denying it the ability to maintain a safe haven in Afghanistan.”
An American military spokesman in Afghanistan, Navy Captain John Kirby, said that while U.S. troops working with Afghan forces are being more vigilant, that vigilance is not hampering operations. Speaking via video link from Kabul, Kirby said the number of protests has dropped off sharply – from more than 20 a day last week to three on Monday.
Kirby added that a major joint U.S.-Afghan operation, aimed at blocking Taliban insurgents from mounting new attacks as warm weather approaches, wrapped up successfully in southern Afghanistan.
U.S. forces are now watching for possible new attacks on their personnel. On Monday, they were investigating high quantities of chlorine bleach found in coffee and on fruit at a soldiers' dining facility inside a NATO base.
The protests and attacks are in response to news that U.S. troops inadvertently burned copies of the Muslim holy book, the Quran, at the Bagram air base north of Kabul. Media reports say Qurans were being disposed of because of fears that prisoners at the base were using them to pass extremist messages.
ALL STAR GAME-CHANGE
The slap could be heard from the floor high up into the seats. Kobe Bryant spun around to the baseline and Dwyane Wade slammed him hard from behind across the shoulders and the nose. It was like a family argument that had spilled over unpredictably and irretrievably.
The crowd groaned and gasped. A violent foul at an All-Star Game? What those fans didn't realize was that this was a good thing.
"I obviously didn't try to draw no blood, but I took a foul," said Wade following a splendidly competitive 152-149 loss to the West Sunday night. "Kobe fouled me two times in a row, so he's still got one up on me."
Bryant's conference was clobbering Wade's by 96-81 when the latter decided he'd had enough and took it out at the expense of the former. In any other setting -- a Game 4 of the playoffs or a pickup game over the summer -- it would have been just another hard foul. But in the setting of this non-confrontational evening, the foul was a game-changer.
Bryant, expressionless, rubbed his nose while walking off the pain before shooting a free throw. He walked past Wade without making eye contact on his way to showing the referee a splattering of blood that necessitated a medical timeout. He came back and made the second free throw.
On this night when Bryant (271 points) surpassed Michael Jordan (262) to become the leading scorer in All-Star history, it was too easy to define them by caricature: Kobe as all serious and LeBron as fun, fun, fun. When they were introduced for this game, James and his East teammate Dwight Howard of the Magic emerged out of the white pre-game smoke dancing with their mouths open comically. When Bryant was introduced, his hands were in his pockets and his face refused so much as a smile. Everything about him at age 33 asserts that his joy comes from winning.
All-Star MVP. The 23-year-old tied a game-high of 36 points and added seven rebounds, three assists and three steals to help the West hold on for a 152-149 win over the East in Orlando.
War Games Begin on Tense Korean Peninsula
South Korea and the United States have begun an annual, routine military exercise involving thousands of personnel. North Korea's young, untested leader has called for his country's troops to retaliate, should their territory be infringed during the war games.
The command post drill, named "Key Resolve", features thousands of personnel. U.S. and South Korean military officials are stressing it has no connection to current events on the Korean peninsula.
A spokesman at South Korea's Defense Ministry, Kim Min-suk, calls the exercise routine, explaining it will be similar in scope and size to last year's drill.
Kim says the drill will go on as planned, despite the threats related to it made by North Korea.
Pyongyang is characterizing the exercise as a rehearsal for an invasion by "war mongers" carrying nuclear war equipment. It has also expressed outrage about the timing, calling Key Resolve an infringement of its sovereignty and dignity of the DPRK coming at a time North Koreans are in a period of mourning for their recently deceased leader.
Official state media in Pyongyang says supreme commander Kim Jong Un has personally ordered a frontier unit to be prepared for battle.
The announcer, on the Sunday evening main television newscast, saying General Kim has told front-line soldiers if the "enemy intrudes even 0.0001 millimeters into the waters" of North Korea they should make a powerful retaliatory strike.
There are no indications pointing to unusual military movements in the North.
Since the death in December of Kim Jong Il, North Korea's rhetoric has grown more bellicose as it transfers top authority and titles to the late leader's third son.
Pakistan Completes Demolition of Bin Laden’s Hideout
Pakistani authorities have finished destroying the compound where U.S. special forces killed al-Qaida leader Osama bin Laden last May.
Workers completed the demolition job in the northwestern garrison town of Abbottabad Monday. Bulldozers tore down the final remnants of the three-story concrete compound where bin Laden lived for years before his death.
Pakistani security forces cordoned off the area during the demolition process to keep spectators and journalists away. The demolition began late Saturday.
Officials have never said why they decided to tear down the compound that once housed the leader of the al-Qaida terrorist organization.
Pakistan was outraged and embarrassed by the daring night raid that killed bin Laden. The United States said it kept the raid secret because it feared someone in Pakistan's government might tip off the al-Qaida chief.
The U.S.-Pakistan relationship, which has been especially tense since the raid, deteriorated further after a U.S. airstrike on a Pakistani border post in November left 24 Pakistani soldiers dead.
Chinese Newspaper Criticizes Clinton for Syria Comments
China is lashing back at U.S. Secretary of State Hillary Clinton for her denunciation of China's and Russia's position on Syria.
Clinton last week described the two countries' vetoes of a U.N. Security Council resolution on Syria as “despicable.”
But Foreign Ministry spokesman Hong Lei said Monday that China could not accept the American statement.
“The comments by the mentioned American person are totally unacceptable for us. On the Syria question, China has always maintained a fair and objective stance.''
Hong also welcomed Sunday's referendum on a new constitution for Syria, which has been rejected by the United States and other Western governments as a farce.
“We hope that this referendum is conducive to pushing forward Syria's reform and progress, opens the door for political dialogue, and meets Syrian people's justified demands for the change and protection of their interests. We hope that the various sides in Syria can make efforts to ease the tense situation as early as possible.''
Hong said China hopes the referendum, which would open the door political opposition parties, will ease a conflict that has seen thousands of civilians killed by Syrian security forces.
However opposition factions in Syria called for a boycott of the referendum, saying the only acceptable solution to the nation's crisis is for President Bashar al-Assad to step down.
The constitution would create a multi-party system in Syria, which has been governed solely by the Baath Party since 1963. But even if it passes, President Assad would still be very powerful.
Forces loyal to the president were blamed for the deaths of at least 31 people on Sunday while voting on the referendum took place. Syria says its forces are fighting foreign-backed terrorists.
Clinton renewed her criticism of the Syrian government Sunday during a visit to Morocco. She said troops who remain loyal to Mr. Assad are dishonoring themselves and urged them to defect.
“And I want to reiterate my message to those Syrians who still support (Syrian President Bashar) Assad, especially members of the Syrian military and business community. The longer you support the regime's campaign of violence against your brothers and sisters, the more it will stain your honor. If you refuse, however, to prop up the regime or take part in attacks on your fellow citizens, your countrymen and women will hail you as heroes.”
U.N.-appointed investigators estimate the death toll from the uprising at 6,400 civilians and 1,680 army defectors. Syrian officials have said they only took military action when under armed attack from “terrorists.”
Haitian premier's resignation sparks concern at UN
The head of the United Nations peacekeeping mission in Haiti (MINUSTAH) has expressed his deep concern following the resignation of Prime Minister Garry Conille, just four months after his appointment.
Mariano Fernández Amunátegui, who is also the Secretary-General's Special Representative in Haiti, stressed in a statement that “the resignation of Mr Conille shows, unfortunately, that rifts have taken over reconciliation efforts to the detriment of the country, while the Haitian population are aspiring to initiate a new phase that will lead towards reconstruction, economic growth, and strengthening of the rule of law.”
Fernández Amunátegui praised the contribution of Conille in the stabilization of the country, and called on Haitian authorities to focus and maintain a harmonious atmosphere that is conducive to the democratic stabilization and economic recovery of the country.
He also urged them to designate a new prime minister as soon as possible to avoid delaying the adoption of elements that form the basis of political stability such as adopting a national budget, developing a consensus agenda, publishing amendments to the constitution and organizing local, municipal and senatorial elections.
Secretary-General Ban Ki-moon also voiced his concern over Conille's resignation, saying it came at a time when the people of Haiti are eager to embark decisively on the path towards reconstruction, economic growth and the strengthening rule of law institutions.
“The secretary-general urges the Haitian authorities to act in the interests of the Haitian people and appoint a new prime minister as soon as possible,” said a statement issued by his spokesperson.
Suspect in 3 killings extradited to Puerto Rico
A Puerto Rican man accused of killing three people in the U.S. Caribbean territory has been extradited from Massachusetts.
Puerto Rico’s Justice Department says Luis Emmanuel Sostre Piccinnini was extradited Sunday from a lockup in Plymouth, Massachusetts, where he completed a six-month sentence for assault.
Sostre faces three counts of murder in Puerto Rico. Prosecutors allege he fatally shot three young men in the northern town of Vega Baja in February 2011 and fled the island.
The U.S. island of nearly 4 million people reported a record 1,117 homicides last year, surpassing the previous high of 995 in 1994.
$2.6 bln vanished via Cayman
About 200 billion yen ($2.6 billion) in pension funds managed by Tokyo-based AIJ Investment Advisors Co has disappeared after it was transferred to a fund in the Cayman Islands, followed by a trust bank in Bermuda and then moved to the Hong Kong account of a major European bank, Japanese media is reporting. The Securities and Exchange Surveillance Commission (SESC) has not so far been able to trace where the money went after reaching Hong Kong but the Japanese financial regulator plans to unravel the complex flow of money from the investment advisory firm and find out how the money disappeared. SESC suspects that AIJ may have used the Cayman Islands to hide information on its investments.
Pending the results of the SESC's investigation, the Financial Services Agency plans to rescind AIJ's registration, the local media said.
AIJ used most of the 200 billion yen to buy a private investment trust in the Cayman Islands through ITM Securities Co, a Tokyo-based company with close ties to AIJ, The Daily Yomiuri reports, quoting sources close to the company. It said the money had been entrusted to AIJ for investment by its client companies, which were mainly small and midsize companies. However, the funds were believed to have been transmitted to multiple financial institutions, including a bank in Hong Kong.
The private investment trust in the Caymans was established by a person closely associated with AIJ. A foreign trust bank in Bermuda also was believed to be involved in the funds management, the sources told the Japanese daily.
When the commission inspected AIJ last month, some accounting documents that could have detailed the investment performance of the trust in the Caymans could not be located.
Companies managing pension funds that require a stable yield usually use domestic trust banks. An AIJ official was quoted by the commission as saying, "We don't know accurately how our investments performed overseas."
AIJ has admitted submitting false business reports to the Finance Ministry's Kanto Local Finance Bureau, a violation of the Financial Instruments and Exchange Law.
AIJ managed about 210 billion yen ($2.62 billion) across 123 contracts in Japan and overseas as of the end of last March, according to a filing with the Japan Securities Investment Advisers Association. The company is led by Kazuhiko Asakawa, a former employee of a securities firm.
While the FSA indicated that it was still investigating the size of the losses, Reuters said that a source familiar with the matter said the regulator believes more than half of client assets may have been lost for good.
"We believe AIJ's assets have lost some of their value. AIJ cannot explain its asset management situation. The size and cause of the losses are now under investigation," the FSA official said.
AIJ is registered in Japan by the FSA as a so-called discretionary investment manager, which can include fund managers that employ hedge fund strategies.