4VF News – Daily News Channel – Page 2116

FDA hazy on e-cigarettes’ safety

When an e-cigarette user inhales, a battery inside warms liquid nicotine stored in a plastic filter.
At first glance, it looks like the real thing. It’s white, with a brown filter. When the tip glows red, a smoke-like puff follows. But this is not a typical cigarette — it’s an "e-cig." A what? An electronic cigarette.

Makers of e-cigs tout their product as the first healthy cigarette, free of harmful chemicals and tar typically found in tobacco products. The only ingredient: pure liquid nicotine. “Our product is comparable to the nicotine patch except people still get the oral fixation, which they love,” explained Elicko Taieb, CEO of Smoking Everywhere, one of the largest distributors of electronic cigarettes. But the U.S. Food and Drug Administration considers e-cigs an unapproved new drug because of a lack of scientific proof that they’re safe or effective. The FDA is trying to halt importation of e-cigs, but isn’t seizing products already being sold in the United States. “The FDA has been detaining and refusing importations since at least last summer of these so-called ‘electronic cigarettes,’ ” FDA spokesperson Rita Chappelle told CNN in a written statement. Smoking Everywhere is “pretty sure” the product is safe, based on laboratory testing in Europe, Taieb said. The company declined a CNN request to review safety reports. “There are no ingredients in our e-cigs that can cause cancer. However, it is a pretty new product, so we are not 100 percent sure of the side effects at this point,” Taieb said. “But we haven’t heard of any negative side effects yet, but we are pretty sure they are safe.” Electronic cigarettes run on a battery. A person inhales an e-cig as he or she would a typical cigarette. When inhaled, the battery warms liquid nicotine stored in a plastic filter. The combination of heat and liquid creates the vapor or “smoke” puff when exhaled. Health experts say the idea of an electronic cigarette is a great alternative to tobacco smoke but more evidence is needed.

Health Library
MayoClinic.com: Nicotine dependence

“Nicotine is not the thing in tobacco smoke that causes cancer, but inhaling pure nicotine may be dangerous,” said Dr. Steven Schroeder, physician and smoking cessation expert at the University of California-San Francisco Medical Center. “We have no clue what the health effects could be.” Nicotine replacement therapies — the patch or gum — are safe and highly successful to help quit smoking. Tobacco smoke causes nearly 90 percent of lung cancer deaths, according to the American Cancer Society. “If it is a choice between smoking tobacco product or a nicotine replacement — of course, keep taking the nicotine,” Schroeder said. “It is a heck of a lot healthier than tobacco smoking.” Developers of e-cigs echo the thought. “We aren’t claiming electronic cigarettes help you quit altogether, but I promise our product won’t cause cancer. So no matter what way you look at it, it’s the healthier option,” Taieb said. Smoking Everywhere sells thousands of electronic cigarettes a day in the United States, the company said. Most are sold online or in 100 mall kiosks across the states. The company, which gave samples of e-cigs to celebrities at this year’s Grammy and Oscar awards, said it expects that “big-name” actors will soon promote the product. U.S. sales are expected to double in 2009. Sales of e-cigs have been on the rise in the United Kingdom, Geneva, Sweden and Brazil for several years. The trend prompted the World Health Organization to issue a statement in 2008 calling for more safety testing. “If the marketers of the electronic cigarette want to help smokers quit, then they need to conduct clinical studies and toxicity analyses,” the statement said. The idea that that e-cigs may be a good tobacco smoke alternative in the future could hold true, the FDA and WHO acknowledged, but proof of the product’s safety must come first.

Search continues for 16 missing after chopper ditches

Searchers on Friday combed the Atlantic Ocean for 16 missing people, a day after a chopper ditched in the frigid waters off Canada, a rescue official said.

The S-92 Sikorsky copter had been carrying the people to an oil platform when it slammed into the waters near Newfoundland on Thursday morning. “We will continue to search until there’s absolutely no chance that any survivors will be located,” Maj. Denis McGuire of the Rescue Coordination Center in Halifax said Thursday. “Until last light (Friday).” One survivor, identified as Robert Decker, was found and taken to a hospital, but efforts to find more survivors had proven fruitless, McGuire said. No other details about Decker were released. The body of one person, who has not been identified publicly, also was pulled from the water. “All we’ve got is the debris field,” McGuire said. “There are no indications of any (more) survivors, but the search will continue.” Watch how search for survivors goes on » The Atlantic Ocean water is 400 feet deep at the site where the helicopter hit the water about 30 nautical miles from St. John’s, he said. Helicopters and ships were scouring the debris field Thursday evening, and search-and-rescue technicians were planning to use night-vision goggles and flares overnight. Officials became aware that the helicopter was having problems shortly after 9:10 a.m. Thursday, when the pilot declared a mayday, McGuire said. “They declared their mayday and then they hit the water or landed in the water approximately eight minutes later,” he said. About 25 minutes later, a helicopter arrived at the area and discovered the survivor, the body, the overturned helicopter and two empty life rafts, he said. Though those aboard would have been wearing survival suits that would have kept them dry and were equipped with lights and personal locator beacons, the suits have not helped the searchers. “We have not received any signals whatsoever,” McGuire said. The suits theoretically would allow their wearers to survive 24 hours in the freezing waters — or until about 9 a.m. Friday — but the search effort was to continue well beyond that. Watch how helicopter fliers train to survive crashes » At that time, based on water temperature and the size of the search area, officials will decide whether to continue the effort, he said. Early in the day, high winds and seas hampered the search, but by late afternoon, the weather had improved, although seas were still about 13 to 16 feet (4 to 5 meters) and winds were at about 40 knots (46 mph). Jeri Grychowski of the Rescue Coordination Center in Halifax said the debris filled a 6-mile area. The survivor was taken to the Health Sciences Center in St. John’s, Newfoundland.

The helicopter had been heading to the Hibernia offshore oil platform when it went down in what Grychowski called a controlled emergency crash landing. The pilot reported some technical malfunctions before the crash and radioed that he was turning the chopper around, said Rick Burt of Cougar Helicopters — the operator of the copter.

Another Victim of the Ponzi Schemers: The IRS

The Internal Revenue System is bracing for a deluge of amended tax returns from tens of thousands of victims caught up in the recent wave of multi-billion dollar Ponzis and other frauds, most notably the sensational swindle perpetrated by Bernie Madoff, and R. Allen Stanford’s $8 billion certificates of deposits scam.

Rough IRS numbers on Madoff’s theft alone could total from $7 to $10 billion in refunds due victims, according to accountant tallies. But don’t feel too bad for the IRS. Over the last 20 or more years it has been collecting taxes on income that never actually existed. Last year, the IRS sent out 106 million refund checks totaling $254 billion, so Ponzi victims will hardly empty the refund cookie jar.

The IRS is always the first “go to” place for financial fraud survivors trying to recoup lost monies. But with the April 15 tax clock ticking, figuring out what to do about recovery, both from taxes and from the Securities Investor Protection Corp., has become a mind-boggling maze for accountants and their Ponzi-victim clients. At a hearing yesterday, Madoff pleaded guilty to his decades long crime, was handcuffed and put in jail. Sentencing is scheduled for June, but he could potentially be sentenced to 150 years on 11 counts.

There’s no unanimity about what to do in regard to Ponzis and other fraud recovery, when it comes taxes. Ponzi survivors are getting a litany of mixed signals from bulletins, tax advisor reports, panel discussions and on the Web. And to make matters worse, many of those trying to get their tax returns in quickly are being slow-danced by their former feeder-fund managers, who, under advisement, have been slow in sending out amended statements, or K-1’s; they have until October 15, the final deadline for 2008 filings.

“I think we’re going to see the IRS come out with guidelines very shortly,” said Neil Tipograph, tax partner at New York-based, Imowitz Koenig & Co, LLP, an accounting firm specializing in private equity and feeder hedge funds. According to Tipograph and other tax experts, victims involved in Ponzis have four ways to reclaim taxes paid on fraudulent income, the first being a good old-fashioned “Theft Loss” deduction, which allows a person to go back three years and reclaim taxes paid. Currently, no deduction can be made on the original investment, especially if a SIPC claim has been made.

The second is a “Phantom Income Deduction,” which allows you to remove the Ponzi income going back three years, but if you still have a loss you can carry it forward [i.e., apply it as a deduction against future gains] until the full loss is made up.

The third option, “Claim of Rights Credit,” is most beneficial, he says. It allows victims to claim a credit for all taxes paid on Ponzi income going back to the first investment year on their 2008 tax return. The catch, according to Tipograph: “It’s never been tested in regard to Ponzis.” This option is typically used in insider trading cases, when tax monies need to be returned.

The last option is “Mitigation,” which requires the taxpayer to go back and reopen each year’s tax filing, back to the year of the first investment. There are some technical requirements related to this option.

“It’s likely the IRS will just allow for the theft loss,” said Tipograph. “It’s not the best option for taxpayers, but is a reasonable way to handle this.” But if you don’t file by April 15, you can lose out on filing for 2005, Tipograph says, since there’s a rolling three-year time limit. One can, however, file a “protective refund claim” form, a kind of placeholder that keeps the 2005 return open.

Of course no on knows what the IRS will do, but Bob Goldstein, a senior consultant at Marks Paneth & Shron LLP, New York, said he had been assured by the IRS “that guidance would be forthcoming,” hopefully by April 15. He suggests a simple approach for both the victims and IRS.

“If the Service were to allow the victim to deduct his or her tax basis, less the SIPC recovery and less a small reserve for other recoveries, as a theft loss on the victim’s 2008 tax return, the taxpayer could quantify the loss quickly and file for the appropriate refunds,” Godstein says. “The benefit for the IRS is the consistency of the claims filed, which will make the administration of this deluge of claims easier.”

Goldstein says he has spoken with IRS officials and they know the complexity of the issues before them. “The people there are sensitive to the victims and to the urgency.”

Even Congress is scratching its collective head.

Late last month, two senators and three congressmen sent a two-page, single-spaced letter with 10 questions to the IRS asking for direction in resolving a series of important, questions regarding Madoff and Ponzis, such as whether or not to there will be special extensions for victims. It also suggests setting up a special “Madoff Unit” to process claims.

So, far, no comment from the IRS.

See pictures of the demise of Bernie Madoff.
See a TIME video from outside the courthouse.

750,000 tickets for Jackson concerts sell in 4 hours

Tickets for Michael Jackson’s 50 "final curtain call" concerts in London sold out in four hours Friday.

The tickets went on sale at 7 a.m. Friday, with promoters allowing fans to start queuing at midday on Thursday. They were limited to four tickets per household at a cost of up to $105 for general admission. VIP tickets cost up to $1,100. Around 750,000 were old. Some tickets have already appeared online for resale, with one person seeking $35,000 for VIP tickets to the opening show on July 8. Jackson originally announced he would do 10 shows at London’s 20,000-capacity 02 Arena, but huge demand has seen a further 40 dates added. The king of pop’s run is now scheduled to finish next February. Watch Jackson fan nab first ticket » O2 owners, AEG Live, said due to the “incredible level of interest” — pre-sale tickets to 10 concerts offered on Thursday sold out within minutes — Jackson had agreed to add the extra dates. Watch Michael Jackson’s announcement » There were delays for those trying to buy tickets online Friday, with Ticketmaster’s Web site warning of 15-minute plus waiting times. Chris Edmonds, Ticketmaster’s managing director, said they “had witnessed an unprecedented level of demand” for the concerts. http://www.michaeljacksonlive.com/ Ayesha Obi was the first in line at the O2 to get a ticket and was in tears.

Don’t Miss
In The Field: The Kim Jong Il of pop

‘Thriller’ director sues Jackson

“I was hoping to just get the opening night. Any good seats would’ve been fantastic but front row, I’m over the moon. I’m very happy. Very proud. Really pleased.” She had been at the venue since Wednesday night but said it was worth it. “I’ve always wanted to seem him perform live. I’m happy he’s given us that opportunity now. “He’s a legend despite all the the controversey in his past.” The publicity has already helped lift Jackson’s album sales in the UK. Gennaro Castaldo, spokesman for music retailer HMV, said Jackson was already reaping the benefits of hosting the show. “Sales of Michael’s albums are starting to show a discernible increase, albeit from a relatively low sales base at this early stage. However, if demand is picking up now, imagine what it will be like in July, when Michael actually kicks off his live performances.” Castaldo said sales of his “King Of Pop” album released in August had increased four-fold, while sales of “Thriller” had nearly doubled. Jackson, a child star with the Jackson Five who went on to enjoy stellar solo success with classic albums such as “Thriller” and “Bad,” has rarely been seen in public since he was acquitted on child molestation charges in the U.S. in 2005. Timeline gallery of the highs and lows of Jackson’s life » Rumors of financial difficulties and health problems — in 2008 he was photographed being pushed in a wheelchair — have swirled around the famously eccentric star in recent years. Last year he sold his iconic Neverland ranch and he has spent much of his time since his acquittal living in Bahrain. The auction house, Julien’s, is selling Jackson’s Neverland property including the gates, the singer’s famed white-jeweled glove and a stretched Rolls Royce. Watch what Jackson memorabilia is being sold »

Jackson hasn’t recorded a studio album since “Invincible” — his 10th solo record — in 2001. His last major series of concerts was a world tour to promote the “HiStory” album in 1996 and 1997. “Thriller,” released in 1982 and containing classic Jackson hits such as “Beat It,” “Billie Jean” and the title track, is the best-selling album of all time. Jackson is estimated to have sold more than 750 million albums in total.

Prince William: Mummy is a hollow word for me

Prince William has spoken in depth in public for the first time about death of his mother, Diana, Princess of Wales, 12 years ago, saying "mummy" is now a hollow word "evoking only memories."

Prince William was only 15 and his brother Prince Harry 12 when Diana died in a Paris car crash along with Dodi Fayed in 1997. The Prince made the comment Thursday during a speech to mark his new role as patron of Britain’s Child Bereavement Charity — a group his mother was once involved with. The British Press Association reported that he told the launch of the charity’s Mother’s Day campaign: “My mother Diana was present at your launch 15 years ago, and I am incredibly proud to be able to continue her support for your fantastic charity, by becoming your royal patron. “What my mother recognized then — and what I understand now — is that losing a close family member is one of the hardest experiences that anyone can ever endure. “Never being able to say the word ‘Mummy’ again in your life sounds like a small thing. “However, for many, including me, it’s now really just a word — hollow and evoking only memories. “I can therefore wholeheartedly relate to the Mother’s Day campaign as I too have felt — and still feel — the emptiness on such a day as Mother’s Day.” The charity wants to raise awareness of the problems suffered by mothers bereaved of a child or children bereaved of their mum.

Don’t Miss
Prince sends note to suicide couple’s family

Report: Gaffe-prone prince sent on race relations course

Based in Buckinghamshire, a region west of London, it educates professionals and supports families after a death. Writing in Britain’s Daily Mail newspaper about his new role, the Prince said the reality of losing a child or parent was “awful.” “Initially, there is a sense of profound shock and disbelief that this could ever happen to you. Real grief often does not hit home until much later. “For many it is a grief never entirely lost. Life is altered as you know it, and not a day goes past without you thinking about the one you have lost.” Mother’s Day in the UK always falls on the fourth weekend of Lent, and this year is on March 22. Earlier this week France’s leading society magazine, Point de Vue, reported that the Prince would marry his long-term girlfriend, Kate Middleton this summer. The magazine claimed an official announcement was “imminent.” Tell us what you think about Prince William’s moving comments

France Cracks Down on Internet Downloads

French President Nicolas Sarkozy has never hidden his infatuation with celebrities. In recent years Sarkozy has burst with pride while being photographed with the stars he likes to count as both political supporters and personal friends. In 2007, he even went and married one. But as Sarkozy’s government tries to crack down on illegal Internet downloads of music and movies, suspicions have surfaced that the proposed regulation could be just another case of the President protecting his famous friends.

The draft law, currently being debated in the parliament, would create a new Internet surveillance system to combat online piracy — one that critics call a Big Brother–like attempt to police people’s Web activity. Introduced by Sarkozy’s Culture Minister, Christine Albanel, the bill seeks to enlist Internet service providers , entertainment-industry organizations and French legal authorities in an effort to identify and dissuade illegal
downloading of copyrighted music and video. A monitoring agency would send Web users who illegally download media a cease and desist notice. Should two warnings go unheeded, ISPs would be forced to cut Web access for one to 12 months — and add the user’s name to a blacklist of pirates, where it would stay for the duration of the ban.

The bill follows a government-sponsored agreement hammered out last November. That deal sought to stem the enormous losses studios and their stars suffer to online piracy. But critics claim ISPs have been coerced into the drive by the organization representing French copyright holders. The pact was negotiated by the head of one of France’s largest music and video retailing chains. Detractors of that move include opposition politicians, consumer groups and even France’s ethics watchdog on new technologies and communication. They claim that ISPs have been forced into a heavy-handed alliance of industry forces that want to protect the interests of Sarkozy’s celebrity pals.

“This bill is serving an archaic fairy tale up to artists, but in reality is an authoritarian sleight of hand,” says Socialist legislator Christian Paul, who adds that the music and film industry has to face the reality of the Web today. “It’s a bad text with lots of problems, and which opposes performers and Internet users,” says Patrick Bloche, spokesman for Socialist Party legislators in parliament.

Sarkozy’s conservative supporters counter that remaining soft on Internet piracy will lead French artists to rapid ruin. Within the past five years alone, French record companies have seen sales plunge by more than 50%, mostly because of illegal music downloading. Polls indicate that more than one-third of French people say they have downloaded and exchanged copyright-protected files at least once. Entertainment-industry organizations say about 450,000 illegal downloads take place in France each day. That has cost French musicians and studios about $10 million in royalties annually over the past five years. That loss of financial incentive to create, some say, is undermining France’s cultural expression.

“It’s urgent to get out of this situation that’s as dangerous for Internet users as it is dramatic for French cultural creators and industries,” Albanel told parliament. The bill, she says, is needed to defend France’s “cultural exception.” It’s “also a realistic project that of course does not claim it will completely eradicate the mass phenomenon of pirating cultural works on the Internet.”

She can say that again. Judicial experts and consumer groups say the bill’s proposed policing system will generate many legal challenges — especially regarding invasion-of-privacy issues, and the identification of IP addresses to track people who illegally download. That’s especially true in a world where the most prolific pirates — hackers and computer geeks — can hide their identities behind hijacked ones. “The bill violates the principle of presumption of innocence,” noted consumer group UFC Que Choisir in a statement, “because the onus would be on the Internet users to prove their good faith.”

Perhaps. But France isn’t the only country considering such punitive action. In January, Irish ISP Eirecom struck a deal with record companies under which it would ban clients who were found to be illegally downloading music. The U.K. is also contemplating forcing ISPs to disconnect customers tied to online piracy as part of its push to make broadband access universal by 2012. In Brussels, meanwhile, debate rages over the future of network neutrality — the degree of free and equal access to the Internet. Governments and business interests want the ability to increasingly filter its use.

A lot is at stake. Studies estimate that nearly 95% of music downloaded around the globe in 2008 — 40 billion files — was illegal. That would suggest that a ban in France might not actually help French artists too much because their work could still be pilfered elsewhere. But the sad truth is that royalties for presidential buddies like withered rocker Johnny Hallyday or comic actor Christian Clavier still do come primarily from France. After all, who else really wants their stuff in the first place

Read a TIME story on piracy.

See the 50 best websites of 2008.

Japan threat to shoot down N. Korean satellite

Japan's Chief Cabinet Secretary Takeo Kawamura says it has the right to shoot down the satellite.
Japan said Friday that it could shoot down the satellite that North Korean officials said they plan to launch.

“Japan is legally able to shoot down the object to secure safety if it looks like it will fall on to Japan,” Chief Cabinet Secretary Takeo Kawamura said during a news conference. North Korea had informed an international organization that it plans to launch a satellite. The announcement has triggered international consternation. U.S. and South Korean officials have long said the North is actually preparing to test-fire a long-range missile under the guise of a satellite launch. The missile, Taepodong-2, is thought to have an intended range of about 4,200 miles (6,700 kilometers), which — if true — could give it the capability of striking Alaska or Hawaii. A U.N. Security Council resolution in 2006 banned North Korea from conducting ballistic missile testing. Japanese officials said they could shoot down the object whether it is a missile or a satellite.

Don’t Miss
Clinton eyes engagement with N. Korea

North Korea vows to protect itself

Stranded S. Koreans allowed to cross border

N. Korea warns against intercepting ‘satellite’ launch

“As the U.N. resolutions prohibit (North Korea) from engaging in ballistic missile activities, we still consider it to be a violation of a technical aspect, even if (the North) claims it is a satellite. We will discuss the matter with related countries based on this view,” said Japanese Foreign Minister Hirofumi Nakasone. Japan’s Prime Minister Taro Aso added: “No matter what they call it, a satellite or anything, it will violate U.N. Security Council Resolution. We must lodge a stern protest through the U.N. and strongly demand it be called off.”

Idaho man charged again for knowingly spreading HIV

The first person ever convicted in Idaho of knowingly spreading the HIV virus is facing new charges for the same offense, authorities said Thursday.

Stewart, whose acerbic brand of satire centers largely on the political news of the day, has held Cramer’s frenetic, nearly cartoonish, stock-advice show, “Mad Money,” and other CNBC programming up as examples of an anything-goes attitude that contributed to the financial collapse. “I understand you want to make finance entertaining, but it’s not a [expletive] game,” Stewart said during the recorded interview, segments of which aired on Thursday night. “When I watch that, I can’t tell you how angry that makes me.” Stewart’s blistering criticism of Cramer this week has including a censored, two-word phrase he spoke into the camera after airing video of Cramer enthusiastically urging viewers to buy stock in Bear Stearns. The global investment bank and brokerage firm collapsed soon after the comments aired and was eventually sold with stock prices less than one-fifth what they were when Cramer pushed them. Cramer has fired back. In a string of interviews with NBC news outlets affiliated with CNBC, Cramer disputed some of Stewart’s claims and noted times he’s made more cautious comments about the economy. In one interview, he sarcastically feigned distress at being attacked by a comedian and, on an appearance on Thursday’s “The Martha Stewart Show,” pounded a wad of dough with a rolling pin, pretending it was Stewart’s face. “Mr. Cramer, don’t you destroy enough dough on your own show … ” Stewart said early in the program. After declaring he’s a “big fan of the show,” Cramer appeared contrite during the interview. “I think that everyone could come in under criticism because we all should have seen it more,” Cramer said. “I don’t think anyone should be spared in this environment.” Cramer pushed back very little in an interview far more serious than most that Stewart conducts. He complained when Stewart suggested CNBC’s reporters are “in bed” with Wall Street financiers and said he’s worked with government officials to try to crack down on abuses in the industry. “Absolutely, there’s shenanigans, and we should call them out,” Cramer said. “Everyone should. I should do a better job at it.” Stewart did call it “unfortunate” that Cramer has become the prime whipping boy in a larger complaint — “the gap between what CNBC advertises itself as and what it is.” “We’re both snake-oil salesmen to a certain extent,” Stewart said. “But we do label it ‘snake oil’ here.”

Stewart slings barbs face-to-face with Cramer

After a week of pointed verbal barbs, host Jon Stewart sat face-to-face with financial analyst Jim Cramer on Comedy Central’s "The Daily Show" and continued the assault Thursday. Stewart blamed Cramer and cable network CNBC for being irresponsible cheerleaders in the lead-up to the stock market meltdown.

Report: Japan to fight piracy off Africa

Pirates are caught on camera off the Somalian coast.
Japan’s defense minister has ordered two destroyers to help fight piracy in the waters off Somalia, officials with the defense ministry told CNN.

The Maritime Self-Defense Force destroyers will be dispatched Saturday, the defense ministry said. The order, which the Cabinet approved earlier Friday, marks the first policing action for the MSDF, whose major missions overseas have focused on background support such as transport and refueling, Japan’s Kyodo news agency said. A bill approved on the same day allows the MSDF to be deployed in piracy-infested waters as needed. The move comes after Somali pirates released a Panamanian-flagged, Japanese-owned vessel that was hijacked in the Gulf of Aden in November, according to a non-governmental group that monitors piracy. The ship was released last month.

Don’t Miss
Russian warship chases pirates

Special: Troubled Waters

The 18 Filipino and five South Korean crew members were reportedly unharmed. It was unclear whether the pirates were paid a ransom to release the ship. Japan Defense Minister Yasukazu Hamada said the provision would be used on an interim basis, the news agency reported. Two destroyers with about 400 personnel and eight coast guard officers will be aboard the ships, whose escort mission will start in early April after about three weeks of sailing toward Somalia, according to the news agency.