Swiss bankers charged in $1.2 billion tax fraud
Three Swiss bankers have been charged with helping American taxpayers hide more than $1.2 billion from the Internal Revenue Service, the U.S. Attorney's Office in Manhattan announced Tuesday.
Michael Berlinka, Urs Frei and Roger Keller face up to five years in prison for their roles in the scheme, the U.S. Attorney's Office said. They are accused of helping more than 100 clients hide assets between 2005 and 2010.
The indictment identifies the defendants' place of employment only as the Zurich branch of "Swiss Bank A," though accounts in the names of Berlinka and Keller appear on the professional networking site Xing.com with Wegelin & Co., a bank in Switzerland, listed as their employer.
Wegelin did not respond to a request for comment late Tuesday.
The three accused currently reside in Switzerland, according to the indictment, and it wasn't clear Tuesday if or when they might face extradition. A spokeswoman for the U.S. Attorney's Office declined to comment on the matter, and the Swiss Embassy in Washington did not return a request for comment.
In 2009, the U.S. government settled a tax fraud case involving American customers with Swiss banking giant UBS that proved diplomatically challenging due to Switzerland's strict bank secrecy laws. UBS ultimately paid $780 million in fines and restitution and agreed to hand over the identities of a number of its U.S. customers.
Tuesday's indictment alleges that as UBS and another unidentified Swiss bank stopped handling undeclared U.S. accounts in 2008 and 2009 amid scrutiny from American authorities, the defendants' firm attempted to scoop up their business.
"As part of their sales pitch to U.S. taxpayer-clients who were fleeing UBS, [the defendants] told U.S. taxpayer-clients that their undeclared accounts at Swiss Bank A would not be disclosed to the United States authorities because Swiss Bank A had a long tradition of bank secrecy," the indictment states.
The case has been assigned to Judge Jed Rakoff, who has made headlines for his hard-charging approach to financial crime in cases against firms like Bank of America (BAC, Fortune 500) and Citigroup (C, Fortune 500)
Ecuador appeals court rules against Chevron in oil case
An Ecuadorean appeals court has upheld a ruling that Chevron should pay damages totalling $18.2bn (£11.5bn) over Amazon oil pollution.
Chevron said the judgement was "illegitimate" and "a fraud".
Texaco, which merged with Chevron in 2001, was accused of dumping toxic materials in the Ecuadorean Amazon.
In February, an Ecuadorean court ordered Chevron to pay $5.9bn in damages. That figure more than doubled in a later ruling.
"We ratify the ruling of February 14 2011 in all its parts, including the sentence for moral reparation," the court in the Amazonian city of Lago Agrio said in its ruling, according to Reuters.
Long-running battle
In a statement released in response, Chevron said the decision was a "glaring example of the politicization and corruption of Ecuador's judiciary". It said it would continue to seek recourse through proceedings outside Ecuador.
The decision is the latest twist in a long-running legal battle between Chevron and the Ecuadorean plaintiffs.
The lawsuit was brought on behalf of 30,000 Ecuadoreans, in a case which has dragged on for years.
Ecuadorean indigenous groups said Texaco dumped more than 18bn gallons (68bn litres) of toxic materials into unlined pits and rivers between 1972 and 1992.
But Chevron says Texaco spent $40m cleaning up the area during the 1990s, and signed an agreement with Ecuador in 1998 absolving it of any further responsibility.
In September, a US appeals court overturned a decision to block the collection of the fine from the company.
Plaintiffs, who had agreed not to attempt to collect the damages until the appeals process was completed in Ecuador, welcomed Tuesday's ruling.
"This (ruling) confirms and ratifies that the company polluted and affected the Amazon," they said in a statement.
"It is necessary to clarify that no amount will be enough to repair all the crime they did in our area, nor will it be enough to bring the dead back to life."
Ecuador's President Rafael Correa described the dispute as a "David and Goliath" battle.
"I think justice has been done," he said after the decision was announced.
"The harm that Chevron caused to the Amazon cannot be denied."
Chevron has challenged the fine, arguing that lawyers and supporters of the indigenous groups who brought the case conspired to fabricate evidence.
In a separate case, International arbitrators have ordered the Ecuadorean government to pay $96m to Chevron because Ecuador's courts had violated international law as a result of delays in resolving commercial disputes involving Texaco.
BP asks Halliburton to pay for Gulf of Mexico spill
Oil giant BP has asked its contractor Halliburton to pay for all costs and damages that arose from the oil spill in the Gulf of Mexico.
The claims were made in a filing by BP's lawyer Don Haycraft in a US Federal court.
BP and Halliburton are locked in a legal battle with a trial expected this year to settle damages claims.
The offshore spill was the worst in US history, while a blast at the Deepwater Horizon oil rig killed 11 workers.
The accident, which happened at BP's Macondo well in the Gulf of Mexico, is expected to cost the company tens of billions of dollars.
BP has spent $14bn (£9bn) so far in its spill response and cleanup operation and has set aside a further $20bn for damages claims.
According to the filing, BP has sought "the amount of costs and expenses incurred by BP to clean up and remediate the oil spill, the lost profits from and/or diminution in value of the Macondo prospect, and all other costs and damages incurred by BP related to the Deepwater Horizon incident and resulting oil spill".
Cement
BP has so far failed to give an exact figure for its claim.
Halliburton made the cement cap on the well which blew when the blow-out preventer failed.
The explosion killed 11 workers and led to more than 4 million barrels of oil leaking into the Gulf of Mexico.
The action against Halliburton is part of a string of legal disputes resulting from the spill.
Last month, Cameron International, which manufactured the well's blow-out preventer, agreed to pay BP $250m for costs associated with the spill.
Legal action
BP also remains in legal action with Transocean, the owner and operator of the Deepwater Horizon rig.
In January last year, a US commission which investigated the oil spill reported that BP, Halliburton and Transocean shared blame for the incident.
"Whether purposeful or not, many of the decisions that BP, Halliburton, and Transocean made that increased the risk of the Macondo blow-out clearly saved those companies significant time (and money)," the presidential panel wrote.
The case between BP and Halliburton is due to being in February.
Chinese oil company Sinopec agrees $2.2bn US shale deal
Chinese oil firm Sinopec has agreed a $2.2bn (£1.4bn) deal with Devon Energy, giving it access to shale deposits in the US.
Sinopec will get a one-third stake in five new shale projects, with the firms expecting to drill 125 wells this year.
China has been buying energy sources to feed its fast-growing economy, and wants to improve its ability to extract domestic shale deposits.
China has some of the biggest shale deposits in the world.
'More exposure'
Analysts said that the recent increase in demand for shale oil and gas meant that many companies were now looking to tie-ups to help them expand quickly.
Sinopec, meanwhile, is not alone in trying to access US shale deposits, and France's Total announced a separate $2.3bn shale deal with Chesapeake Energy and EnerVest.
"It looks like the preferred transaction structure for a lot of these players, whether they are European or Asian, who are behind the curve on this technology," said Mark Hanson of Morningstar.
"The more exposure they get, the better."
Under the terms of the deal with Devon, Sinopec will pay $900m in cash, with the remainder of the investment being paid by the end of 2014.
The deal could be worth as much as $2.5bn when all the payments are made.
"This arrangement improves Devon's capital efficiency by recovering our land and drilling costs to date and by significantly reducing our future capital commitments," John Richels, Devon's president and chief executive, said in a statement.
Not just shale
China's hunger for energy sources has also seen it snapping up other global deals.
On Tuesday, another big Chinese oil firm PetroChina announced a major deal giving it access to Canadian oil sand reserves.
The company owned a 60% stake in the Mackay River oil sands project, and said it had bought the remaining 40% share for $673m.
Last month, China National Petroleum Corporation won an approval for oil exploration and extraction in Afghanistan.
According to data compiled by Bloomberg, Chinese companies announced $18.3bn-worth of bids in 2011 for overseas oil and gas exploration and production companies.
Oil prices soared Tuesday as tensions grew over key Persian Gulf oil
In midday trading, benchmark crude jumped US$3.55, or 3.6 per cent, to US$102.38 per barrel in New York.
Brent crude, which is used to price foreign oil varieties that are imported by US refineries, rose US$3.26, or three per cent, to US$110.64 per barrel in London.
Prices shot up as exchanges opened for the first day of 2012 trading. Commodity prices tend to rise at the beginning of January as investors start the new year with a fresh round of trading. This year prices were driven by heightened concerns that Iran might try to close the Strait of Hormuz in the Persian Gulf to oil tankers, if Western nations impose new sanctions.
Iran warned the US to stay out of the strategic waterway, where one-sixth of the world's oil shipments pass every day. On Monday its navy fired a cruise missile as part of a military exercise.
The US and European nations are mulling further economic sanctions against Iran because of its nuclear programme.
A stand-off could be damaging to the global economy.
A dustup with Iran could slow crucial oil supplies at a time when the world needs every drop.
Global oil demand is expected to rise to a record 89.5 million barrels per day in 2012. Demand was an estimated 89 million bpd in 2011.
Three of the world's largest economies - the US, China and India - continued to grow with increased manufacturing activity in December.
A private trade group said US manufacturing expanded last month at the fastest pace in six months. The US Commerce Department also said US construction spending jumped in November on a spate of new projects for single-family homes and apartments.
In other energy trading at midday Tuesday, heating oil rose 10 cents, or 3.5 per cent, to US$3.02 per gallon, while gasolene futures rose by seven cents, or 2.8 per cent, to US$2.7310 per gallon and natural gas fell by about a penny to US$2.98 per 1,000 cubic feet at midday.
- AP
Nicki Minaj performed at Dick Clark’s New Year’s Rockin’ Eve & Rihanna was where?
First lady of Hip Hop ended the old year by giving a fierce performance at at Dick Clark’s New Year’s Rockin’ Eve, even though she wasn’t in New York City for the live segment of the show, but her Hollywood performance was still very festive. Other stars include Justin Bieber and Lady Gaga during the evening.
Nicki Minaj was also spotted with Fergie at Dick Clark‘s New Year’s Rockin’ Eve‘.
Meanwhile, Rihanna was spotted at CIROC The New Year 2012 party at a private estate in Miami Beach, Florida for NYE, hosted by Sean ‘Diddy’ Combs
Looking gorgeous wearing a sheer black patterned dress paired with matching heels, Rihanna partied with other guest such as Vivica A. Fox, NeNe Leakes and Kim Porter.
What a night for the divas!
Lauryn Hill arrives in Jamaica for Shaggy's concert
Lauryn Hill, the talented singer, songwriter and actress, quietly slipped into Jamaica Monday night as she prepares to perform at the Shaggy and Friends Charity Concert set for January 7.
The concert that will also feature performances from international recording stars Ne-Yo and Deniece Williams on the lawns of Jamaica House, is being held to raise much-needed funds for the Bustamante Hospital for Children, the beneficiary of the Shaggy Make a Difference Foundation.
The 36-year-old former member of the Fugees, who, along with her six children, arrived in the dead of night, is making the trip thanks to LIME, who is on board with the foundation to the tune of almost $8 million.
According to LIME's head of marketing, Stephen Price, his company came on board to assist with helping to make the charity concert special.
"They wanted to bring in someone unique," he said, explaining why LIME came on board to help make the Grammy-award winning artiste available.
"She is one of the most beloved artistes and we thought it appropriate for Jamaicans to see her in other than a purely commercial light."
Hill, of course, has a strong Jamaican connection. Five of her six children were fathered by Rohan Marley, son of the legendary Bob Marley. She has also covered Marley's Turn Your Lights Down Low and Redemption Song. "In addition to her command of several genres, she also has a very healthy command of reggae music," Price said.
Media reports say she has invested financially in Jamaica, but the nature of those investments is unknown.
Price revealed that she consented to perform at the concert because she respects Shaggy's efforts in trying to raise money for the hospital that sees to the needs of many of Jamaica's children. "That's why we wanted to join forces and come on board for this," Price said. "The work of the Bustamante Hospital for Children is a tremendous and invaluable service to Jamaican children and their families. We feel it is our duty to support this noble effort being championed by Shaggy and his team, and so we are 100 per cent committed to helping the foundation achieve its targets."
He continued: "In addition to partnering with Shaggy, we have also created opportunities for our customers and Jamaicans in the Diaspora to participate and contribute to the effort. As such, we will be providing a live broadcast of the concert on LIME Mobile TV and via pay per view online, from which we will donate proceeds. "We take this opportunity to commend Shaggy, who has been a long-time member of the LIME family, for continuing to use his celebrity status to raise awareness about the needs of the institution and for inspiring many others to do something about it".
Hill's Grammy-winning album The Miseducation of Lauryn Hill has sold more than 18 million copies worldwide, topping Billboard's 200 albums chart and its R&B chart.
Released in 1998, the album would help Hill enter the record books. At the 1999 Grammy Awards, Hill became both the first woman ever to be nominated in 10 categories in a single year, and the first woman to win five times in one night. Hill won the awards for Album of the Year, Best R&B Album, Best R&B Song, Best Female R&B Vocal Performance, and Best New Artist.
She also starred in the hot movie Sister Act 2: Back in the Habit that starred Whoopi Goldberg.
DESTRA PREPARING SURPRISE PERFORMANCE FOR JAMAICA
Destra Garcia promises fans attending the 2012 Jamaica Jazz and Blues Festival - The Art of Music this month some new flavors from her already impressive menu.
"I am no stranger to Jamaica - everybody knows I can rock the house," said the soca music sensation from her Trinidad home last week. But she promised that festival attendees will see "a different side of Destra that Jamaica has never seen before."
Without sharing any clues, the Trinidad and Tobago musician whose 2012 Carnival release "Baddist" is currently rocking Port-of-Spain parties, said "I live for the element of surprise," pledging that fans will definitely be treated to hot soca but they will also get a bit of 'something else'. "I promise they will thoroughly enjoy it, and as usual I will rock the house."
Following the summer release of the pop-flavored "Beautiful Day" from the new MYDESTRA.COM album, Destra has also released the soca-pop fused "Breaking Away"; the groovy soca "Baddist" with Kerwin Du Bois; chutney soca hit "Pania" with Rikki Jai; and "Keep on Wukking Up", a soca and R&B fusion. She has also submitted two selections for the steel band fraternity, and will soon release two road march contenders for the 2012 season.
Destra Garcia has grown from strength to strength since her 1999 debut and the entertainer is showing no signs of slowing down - challenging herself every year while taking her music and her fans along for the exciting journey, and taking soca music to international markets.
A guaranteed hit with music-loving audiences everywhere, her energetic performances and eye-catching costumes command the cameras, while her maturity is evident in her demeanor, her command of the stage, her writing and her sense of self.
"We are so proud of Destra and her accomplishments throughout the years," said Walter Elmore, Chairman of Art of Music Productions, producers of the festival. "She is one of the best songwriters and performers the region has produced and I am proud to call her West Indian."
In addition to Destra Garcia, a dazzling lineup of top international, regional and local superstars has been announced for the three-day festival taking place at the Trelawny Stadium from January 26 to 28, 2012.
Joining her on the lineup are Celine Dion, Cee-Lo Green, Nicole Henry, Heads of State, Jully Black, Earl Klugh, The Temptations Review featuring Dennis Edwards, Gentleman; and Jamaica's finest musical talent, including Shaggy, Richie Stephens, John Holt, Yellow Man, Half Pint, Tessanne Chin and Tami Chynn, Marcia Griffiths, Lloyd Parkes and We The People, George Nooks, Luciano, Mykal Rose, AJ Brown, Freddy McGregor, Pluto Shervington, Etana, Chris Martin, Marcia Barrett (Boney M) and Byron Lee's Dragonaires.
In honor of Jamaica's 50th Anniversary of Independence, the opening night of the festival is dedicated to all the rich sounds that have shaped Jamaica's music over the past 50 years, and so it will feature ska, rocksteady, dancehall and reggae, the island nation's influential contributions to world music.
The 2012 Jamaica Jazz and Blues Festival - The Art of Music is supported in part by the Jamaica Tourist Board, Iberostar Hotels and Resorts, FLOW, RIU Hotels & Resorts, Half Moon - A RockResort, Hilton Rose Hall Resort & Spa, Sunset Resorts, CVM TV (Official television partner), The Gleaner (Official print partner), Scotiabank, Pure Country, Loyal Haylett Management Services, Delta Air Lines and Holiday Inn SunSpree Resort.
Aretha Franklin announces engagement
Aretha Franklin has become engaged to her long-term friend William "Willie" Wilkerson.
The 69-year-old soul legend and Grammy award-winner said she was hoping to marry over the summer.
She told AP that she and Mr Wilkerson were considering Miami Beach, Florida, as a possible location, followed by a reception on a private yacht.
Franklin, whose latest album is called Aretha: A Woman Falling Out of Love, has been married twice before.
"We're looking at June or July for our date, and no, I'm not pregnant, LOL!," she said in a statement.
The singer returned to performing in May last year after being admitted to hospital for an undisclosed ailment.
UK album sales fell in 2011 but digital downloads rose
Digital music sales continued to rise in the UK in 2011, but not by enough to prevent an overall decline in album sales, according to the BPI.
The music industry body said that 26.6 million digital albums were sold, a 24% rise on the previous year.
However, CD album sales fell by 13% to 86.2 million discs. Overall, 6% fewer albums were sold than in 2010.
The BPI blamed the decline on piracy and accused the government of taking too long to tackle the problem.
'Creative crunch'
Digital downloads have recorded rapid growth over recent years. In 2007, only 6.2 million albums were bought as files over the internet according to The Official Charts Company.
The year 2011's tally was more than four times that amount. Fifteen albums sold more than 100,000 digital copies, with Adele's 21 proving the most popular.
However, shoppers still showed a preference for CDs, buying more than three times the number of albums on disc than downloads.
The BPI said that "physical ownership" still played an important role, but said "a backdrop of chronic piracy" posed risks to the music industry.
"While other countries take positive steps to protect their creative sector, our government is taking too long to act on piracy, while weakening copyright to the benefit of the US tech giants," said Geoff Taylor, the BPI's chief executive.
"The UK has already fallen behind Germany as a music market. Unless decisive action is taken in 2012, investment in music could fall again - a creative crunch that will destroy jobs."
Letters
The government is pursuing a plan that would involve rights holders sending lists of internet addresses suspected of illegal downloads to internet service providers (ISPs).
The ISPs would then send a letter to suspected account holders, saying that their account had been identified as being used to download copyright infringing material.
They would offer advice on how to prevent such illegal activity, but would not make demands for money or threaten disconnection.
By contrast, France has passed a law that allows pirates to be blocked from the net from one year after three infringements.
A spokesman for the UK Department for Culture Media and Sport said: "We will continue to work with industry on how they can better tackle online piracy but this is not an issue that ISPs or rights holders alone can deal with".
"All elements of the internet industry - payment companies, advertisers, search engines, ISPs and rights holders - need to play their part in tackling unlawful activity online."
Streaming
While piracy may be partly to blame for the drop in album sales, the data also suggests changing buying habits.
Sales of singles rose for the fourth successive year to 177.9 million copies, versus 86.6 million in 2007.
Digital copies accounted for 98% of the sales. Each of the top 20 singles of the year sold more than 500,000 copies.
One industry watcher said this underlined the fact that shoppers had become more choosy.
"People now buy the individual songs they like rather than buying the whole album because they like a single," said Philip Buxton, an independent digital media consultant.
"So they might buy the single and then use services like Spotify and Lastfm to listen to the other tracks and are then much more selective about what they purchase.
"The implication for the record industry is that they need to embrace this new model rather than fight it."
2011 Official Artist Albums Chart
1. 21 - Adele
2. Christmas - Michael Buble
3. Doo-Wops & Hooligans - Bruno Mars
4. 19 - Adele
5. Mylo Xylo - Coldplay
6. Loud - Rihanna
7. Born This Way - Lady Gaga
8. Who You Are - Jessie J
9. + - Ed Sheeran
10. Talk That Talk - Rihanna