Credit Suisse pleads guilty to helping 'tax cheats'
Swiss banking giant Credit Suisse has pleaded guilty to helping thousands of US clients evade paying taxes to the US government and agreed to pay a $2.6bn (£1.5bn) fine.
It is the biggest bank to plead guilty to criminal charges in the US in more than 20 years.
US attorney general Eric Holder said the bank helped US "tax cheats dodge US taxes".
Credit Suisse said in a statement it deeply regretted the past misconduct.
The bank said the settlement would reduce its second-quarter net profit by 1.6bn Swiss Francs ($1.8bn; £1bn).
The $2.6bn payment is the highest in a US criminal tax investigation to date, according to US authorities.
However, as part of the agreement with US regulators, the bank will not lose its banking licence in the US.
The bank does not expect its UK and Swiss banking licences to be affected.
Credit Suisse chief executive Brady Dougan said: "Having this matter fully resolved is an important step forward for us.
"We have seen no material impact on our business resulting from the heightened public attention on this issue in the past several weeks."
Mr Holder told a press conference: "The bank went to elaborate lengths to shield itself, its employees, and the tax cheats it served, from accountability for their criminal actions."
"They subverted disclosure requirements, destroyed bank records, and concealed transactions involving undeclared accounts by limiting withdrawal amounts and using offshore credit and debit cards to repatriate funds."
He added that the tax evasion schemes went back decades, saying that in one case, the practice of using sham entities began more than 100 years ago.
The US Department of Justice said Credit Suisse "operated an illegal cross-border banking business" that helped thousands of US customers conceal offshore assets and income from US tax authorities.
However, according to US media reports, neither Credit Suisse chairman Urs Rohner nor chief executive Brady Dougan are expected to lose their jobs as a result of the agreement.
Mr Dougan told investors on Tuesday he had not encountered pressure to step down.
"My focus has been on resolving the issue and taking the business forward, so no, that's never been a consideration," he said. "We're working very very hard to fix this business."
Credit Suisse will meet most of the cost of the fine by selling some of its risky assets, the bank's chief financial officer David Mathers said.
Since 2011 US authorities have indicted eight Credit Suisse employees who helped clients evade taxes.
Credit Suisse is not alone. US prosecutors are chasing more than a dozen other Swiss banks for allegedly helping wealthy Americans dodge US taxes, and at the press conference, they hinted that there would be more settlements to come.
In 2009, another Swiss bank, UBS, settled similar charges with US regulators for $780m as well as an agreement in which the bank would give US authorities the names of its so-called "secret" account holders.
US consumer prices rise by most in 10 months
Higher food and gas costs pushed up US consumer prices in April by the most in 10 months, evidence that inflation is ticking up from very low levels.
The consumer price index rose 0.3 per cent last month after a 0.2 per cent gain in March, the Labour Department said yesterday. Over the past 12 months, prices have increased two per cent, the largest gain since July and matching the Federal Reserve's inflation target.
Excluding the volatile food and energy categories, core prices rose 0.2 per cent in April and have risen 1.8 per cent in the past 12 months.
Food prices jumped 0.4 per cent for the third straight month, driven by the largest increase in the cost of meat in 10 years. Gas prices rose 2.3 per cent, the first increase in four months.
The cost of fruits, vegetables and dairy products also rose. A drought in California and an excessively cold winter in the Midwest have pushed up food prices this year.
Prices in other sectors also rose. Rents increased 0.3 per cent last month, and the prices of new and used cars rose. Air fares jumped 2.6 per cent in April, the most in more than four years. The cost of clothes, furniture and haircuts were unchanged.
The mild increases follow two years of very low inflation. Consumer prices rose just 1.5 per cent in 2013, down from 1.8 per cent in 2012.
And on Wednesday, the government said the producer price index jumped in April by the most in 19 months. That index measures price changes before they reach consumers.
But small gains in inflation could be a sign of economic health. Higher inflation generally occurs when consumers and businesses spend more.
Inflation has been low partly because of sluggish growth and a tough job market, which makes it harder for retailers and other businesses to raise prices.
Super-low inflation can stall economic growth. Lower prices encourage consumers to delay purchases and they can also make inflation-adjusted interest rates higher, potentially discouraging borrowing.
Still, low inflation has enabled the Fed to pursue extraordinary stimulus programmes in an effort to boost economic growth. It has begun to unwind some of its stimulus, cutting its monthly bond purchases to US$45 billion from US$85 billion last year. The bond purchases are intended to lower long-term interest rates.
But the Fed has kept the short-term interest rate it controls at nearly zero since December 2008. Higher inflation could raise pressure on the Fed to increase that rate earlier than it had planned.
Google resumes Glass sales in the US
Google is once again selling its Internet-connected eyewear to anyone in the US as the company fine-tunes a device that has sparked intrigue and disdain for its potential to change the way people interact with technology.
The latest release of Google Glass comes a month after a one-day sale gave US residents their first chance to buy the hottest accessory in geek fashion.
Google Inc. isn't setting a time limit for people to buy Glass this time, although the company is emphasising that the product remains in its test, or "Explorer," phase.
As has been the case since Google began selling Glass to a select group in 2012, the device costs US$1,500. It's only available on Google's website for now.
Glass, which comes in five different colours, looks like a pair of spectacles except the Explorer edition doesn't contain any actual glass in the frame. Instead, the device has a thumbnail-sized screen attached above the right eye so a user can check email, see Twitter posts or get directions without having to grope for a phone.
Google is offering an option to add a titanium frame that can be fitted with prescription lenses or sunglasses from Maui Jim or Zeal Optics that can be clipped on. Google isn't charging extra for the titanium frame or sunglasses.
The resumed sale of Google Glass is the latest indication that the Mountain View, California, company is nearing a mass-market release of the device.
Google is planning to release a more polished version of Glass by the end of this year that may sell for less than the price of the Explorer version. Analysts believe the cost will have to come down dramatically if Glass is to become anything more than a novelty worn by gadget lovers and wealthy consumers trying to impress their friends.
The parts and assembly of Glass cost only US$152.47, based on an analysis by the research firm IHS Technology. Most of Glass's costs stem from the extensive engineering and design that it took to invent the device, IHS said.
Google hasn't provided a timetable for a mass-market release of Glass. More details could be announced next month at the company's annual conference for developers in San Francisco.
Besides cost concerns, Glass also may have to overcome complaints about its potential to distract and intrude. Many of the misgivings about Glass centre on its ability to take hands-free photos and video through voice-activated commands. The ability to record images so easily -- and perhaps secretly -- has raised privacy and piracy concerns and has prompted some casinos, theatres and bars to ban the use of Glass on their property. Safety concerns have also been raised about drivers wearing Glass, prodding lawmakers to draw up new rules forbidding use of the device in moving vehicles.
Google and other technology enthusiasts are hailing Glass as a breakthrough that will make it easier for people to access the Internet while on the go and cause fewer disruptions to social discourse because people won't be fumbling around with their smartphones as frequently. The device is also being touted as a potentially valuable business tool that could help police officers, firefighters, doctors and reporters do their jobs better.
About 10,000 sets of the Explorer edition were initially sold to computer programmers, contest winners and other invitees. Google hasn't revealed how many more sets were sold in last month's one-day sale.
Digicel says mobile 4G now 92% population coverage
Telecommunication company, Digicel Jamaica, on Tuesday announced that it has recently completed “a massive expansion project” on its 4G mobile network, increasing its footprint to 92 per cent population coverage across Jamaica.
According to the company’s Chief Technology Officer, Krishna Phillipps, this expansion is in keeping with Digicel’s commitment to “providing internet everywhere for everyone and ensuring that Jamaica stays abreast of mobile technology changes”.
“Digicel is already making significant headway in increasing Jamaica’s mobile broadband footprint in every parish and ensuring that people across Jamaica have access to the fastest and most reliable mobile broadband network,” Phillipps said in a Digicel release.
“As part of the recent expansions, we deployed 170 new 4G Mobile sites across the island to expand coverage and increase 4G Mobile capacity in all 14 parishes. We also deployed 17 new 2G and 4G sites to improve coverage in many rural areas,” Phillipps added.
Meanwhile, Distribution Director at Digicel, Patrick King, said that with the increased access to its 4G Mobile network, they are seeing where customers in the most remote areas of the island now have access to the internet and are increasing purchases of mobile phones.
“…we have seen an increase of over 200,000 subscribers on our 4G Mobile network over the last quarter and over 70 per cent increase in subscribers using our data plans as customers better manage their mobile internet experience.,” said King.
Source-Observer
Libya’s Rival Factions Ramp Up Battle for Control
Libya’s embattled parliament was set to reconvene Tuesday, as rival factions battle for control of the fractured country.
Libyan lawmakers are scrambling to reassert some semblance of control in the face of a challenge by a key military figure, General Khalifa Haftar. Among their proposals, the lawmakers are offering new elections meant to defuse tension.
Forces loyal to Haftar, which overran parliament Sunday, vow to press their fight against what they call an illegitimate government, its Islamist allies as well as regional and al-Qaida-affiliated militias.
Colonel Wanis Boukhamada, who offered the support of his elite forces to Haftar’s side Monday, issued a plea to what he called “authentic revolutionaries” for more help.
Boukhamada said his special forces will join in the battle against current authorities until “terrorism” is stamped out.
Fighting between Haftar forces and their rivals in the capital Tripoli and the eastern city of Benghazi has left at least 70 people dead since Friday.
Military forces who remain loyal to Libya’s current government pledged to fight back, and asked for help from Islamist allies in order to support what they call the legitimate order.
Chief of Staff General Abdel Salam al Obeidi urged that power be transferred in a legal and peaceful way, echoing calls for new elections.
Most of Libya’s many political and militia forces stake their claim to legitimacy on the uprising that forced longtime leader Moammar Gadhafi from power in 2011. No single force or coalition has been able to exert effective central control since.
The unrest has prompted the U.S. military to increase troops and aircraft stationed in southern Italy in case U.S. personnel in Libya need to be evacuated. Saudi Arabia, Turkey and other states have closed their diplomatic missions in Libya in recent days.
In an interview with al-Sharq al-Aswat newspaper, Haftar said he is trying to rid Libya of the Muslim Brotherhood, and accused members of the Islamist group in Egypt of fueling unrest in Libya.
Egyptian police near the Libyan border say they have received orders to close the frontier until stability has been restored.
Scores of Egyptian migrant workers have been kidnapped and held for ransom in eastern Libya in recent weeks.
Source-VOA
Army declares martial law in Thailand
The Thai military has imposed martial law amid a political crisis "to preserve law and order", but says the surprise move is not a coup.
The move follows months of tension between the government and opposition.
Acting PM Niwatthamrong Boonsongphaisan urged the army to act "under the constitution" and "with no violence", and has asked for new polls in August.
The opposition protesters reject elections and one key leader vowed to continue the anti-government campaign.
Correspondents say martial law could enrage supporters of the government, especially if it is seen as amounting to a coup. The army has staged at least 11 coups since the end of the absolute monarchy in 1932.
Soldiers have taken over TV and radio stations, and blocked off roads in the capital, Bangkok.
Army chief Prayuth Chan-Ocha called on rival parties to talk to each other and resolve the political crisis. Martial law would remain in place until "peace and order" had been restored, he told government officials on Tuesday.
Soldiers have moved into the main government building in Bangkok, which has been unoccupied following months of violent demonstrations by opponents who want to be rid of an administration they say is corrupt.
The military has also ordered media censorship in the interests of "national security".
Both pro and anti-government protesters have been told not to march anywhere in order to prevent clashes.
Source-BBC
No sign of Russia withdrawal, says Nato
Nato and the US say there is no sign of a withdrawal of Russian troops from areas bordering Ukraine.
The Kremlin earlier announced units in the Rostov, Belgorod and Bryansk areas would return to their permanent bases.
Correspondents say removing some of the estimated 40,000 Russian troops could help de-escalate the Ukraine crisis.
Ukrainian government forces continue to clash with pro-Russia separatists who have taken over government buildings in southern and south-eastern Ukraine.
A statement from the Kremlin had said: "In connection with the completion of the planned spring phase of military training... at ranges in Rostov, Belgorod and Bryansk regions, [President Vladimir] Putin ordered the defence minister to withdraw the troops that took part in the exercises."
No indication was given as to troop numbers or a timetable.
However, Nato Secretary General Anders Fogh Rasmussen said: "Unfortunately, we have not seen any evidence at all that Russia has started withdrawal.
"I strongly regret that because a withdrawal of Russian troops would be a first important contribution to de-escalating the crisis."
Pentagon spokesman Rear Admiral John Kirby told Reuters news agency: "We have seen no indication of any movement."
One senior US official told Agence France-Presse that Washington would want to see "clear, firm evidence of this move before we make any judgement".
Russia has made two statements about withdrawals in the past.
Source-BBC
More Than 100 Hackers Arrested, Half A Million Computers Infected
Hackers using a sophisticated malware infected more than half a million computers in more than 100 countries leaving several victims questioning their safety when using their computer.
The malware lets cybercriminals take over a computer and hijack its webcam, US authorities said as charges were announced today against more than 100 people worldwide.
The FBI described its investigation in criminal complaints unsealed in Manhattan federal court against five individuals.
Meanwhile, police worldwide said they had recently arrested 97 people in 16 countries suspected of using or distributing the malicious software called BlackShades.
"This case is a strong reminder that no one is safe while using the Internet," said Koen Hermans, an official representing the Netherlands in the European Union's criminal investigation coordination unit, Eurojust.
"It should serve as a warning and deterrent to those involved in the manufacture and use of this software."
The FBI said the BlackShades Remote Access Tool has been sold since at least 2010 to several thousand users. The agency said one of the program's co-creators is now cooperating with the government and had provided extensive information.
The malware lets hackers steal personal information, intercept keystrokes and hijack webcams to make secret recordings of users. BlackShades also can be used to encrypt and lock a computer's data files, blocking the rightful owners from regaining access unless they pay a ransom.
Security experts have linked the program to attacks on Syrian dissidents in 2012 and attempts to steal data from more than a dozen French organizations last year. The low cost of the hacking tool has made it increasingly popular across the hacker underground, where variants have been circulating online for years.
Last year, security firm Symantec said that use of BlackShades was going up, with licenses for the program going for $40 to $100.
French officials said raids occurred last week after the FBI arrested two BlackShades developers and distributed a list of customers who had purchased the malware.
Law enforcement coordination agencies Europol and Eurojust, based in The Hague, Netherlands, said Monday that police in 13 European countries — Austria, Belgium, Britain, Croatia, Denmark, Estonia, Finland, France, Germany, Italy, Moldova, the Netherlands and Switzerland — as well as in the United States, Canada and Chile raided 359 properties and seized cash, firearms, drugs and more than 1,000 data storage devices.
The two European agencies declined to provide country-by-country breakdowns of arrests, details of items seized or the specific days when last week's raids occurred.
In Paris, the state prosecutor's office said French detectives arrested more than two dozen people during May 13 raids and described the global nature of the arrests and searches as an unprecedented "new form of judicial action." It said those arrested were identified by the FBI as French "citizens who had acquired or used this software."
In a BlackShades-related investigation before the latest global arrests, Dutch police earlier this year arrested an 18-year-old man for using the malware to take pictures of women and girls using about 2,000 computers.
Source-AP
US Coast Guard suspends search for missing British sailors
The United States Coast Guard says it has suspended its active search, pending further developments, for four Britons, whose yacht capsized in the Atlantic Ocean as they made their way back to the United Kingdom from the Caribbean over the weekend.
The Coast Guard said the crew of the 40 foot sailing vessel, ‘Cheeki Rafiki’, was returning from what is considered to be one of the world’s most prestigious regattas in Antigua, when the four sailors went missing in treacherous conditions.
The missing sailors, who are presumed dead, are Andrew Bridge, 21, James Male, 23, Steve Warren, 52, and Paul Goslin, 56.
British Daily Mail newspaper reported that the men had been sailing the Cheeki Rafiki, a Beneteau performance racer yacht, back from the Antigua Sailing Week regatta.
The US Coast Guard said it had searched the waters for the missing sailors about 1,000 miles east of Cape Cod, Massachusetts, up to 5:00 am (local time) on Sunday.
The Coast Guard said it was told by the United Kingdom representatives of the ‘Cheeki Rafiki’ the last message they received from the crew on Friday indicated they were taking on water with four people on board.
The Coast Guard said on Sunday, they located an overturned hull that matched the description of the Cheeki Rafiki, but no signs of the sailors.
“We appreciate the assistance of the US Air Force, Canadian and the three merchant vessels helping us to conduct a thorough search so far from shore,” said Captain Anthony Popiel, 1st Coast Guard District Chief of Response.
“We are extremely disappointed that we were not able to locate the sailors during the course of this extensive search. Our thoughts and prayers are with their families during this difficult time,” he added.
The sailors on board the Cheeki Rafiki were described as “very experienced offshore yachtsmen””.
Source-CMC
Dominican Republic on the right path according to poll
Dominican Republic is headed in the right direction, according to 58.3 percent of its citizens, while 39.9% say no way.
The results are from a survey of more than 1,200 Dominicansby pollster Asisa Research Group conducted from May 9 to 11 and published by El Caribe, in which 1.8% declined comment.
The survey sought to establish the population’s beliefs regarding the country’s advances, and its expectation on the future.
The poll, with 1,213 interviews and a margin of error of +/-2.83%, also found marked differences between youngsters and adults as to how they perceive the country’s direction, as well among men and women.
Last week a poll by Penn Shoen & Berland found nearly identical percentages.