Growing up with grandma









NEW YORK — Each day at 5 a.m., Denise Peace rises and begins the task of waking and feeding five grandchildren, ages 2 to 17, and shepherding them out the door of her cramped but miraculously neat apartment in Brooklyn.

The 5-year-old needs to be on his school bus by 6:26. The eldest has to catch a 7 a.m. train. The 4-year-old must be walked to school in time for the 8:10 bell. The 2-year-old plays while Peace prepares the 3-year-old for day care. In the early afternoon, she reverses the drill, fetching children from bus stops and schools and getting them home for dinner, baths and bed. Peace collapses about 9 p.m.

"Then I just start all over again," the 56-year-old said of the moment when her alarm sounds the next morning.

It's a routine that changes once a month, when Peace travels to a Brooklyn church and meets with dozens of other grandmothers — and some great-grandmothers — in similar situations. All have been catapulted back into full-time parenting by the sudden losses of their own children. All have been brought together by the New York Police Department and local clergy for a chance to swap stories, compare legal and parenting advice, cry on a friendly shoulder, pray and simply let off steam.

"It comforts you. It lets you know you're not alone in this," said Peace, who learned of the close-knit group called Grandmothers LOV — for Love Over Violence — as she searched for programs last year to help women like herself. "They have your back. It's like another family."

It's a family that is growing. According to the 2010 census, the number of grandparents who are primary caregivers to grandchildren has risen 12.8% since 2000, from about 2.4 million to more than 2.7 million. Between 1990 and 2000, census figures indicate that the number of U.S. children being raised by grandparents rose 30%. And the Annie E. Casey Foundation, which studies children's issues, says that in 1970, 3.2% of U.S. children lived in grandparent-run households; by 1997, it was 5.5%.

With today's grandparents — particularly grandmothers — living longer and often staying healthier, they are more likely to be able to step in if parents die or are unable to raise their children because of illness, incarceration, drug abuse or other problems. The recession is believed to have played a role in the increase, with grandparents more apt than many parents to have the financial stability needed to raise children, said Robert Geen, the Annie E. Casey Foundation's family services policy director.

"I think there is a concern that the tough economic environment is putting pressure on parents — that it is simply overwhelming them," Geen said. "The big concern is that our social services system is completely oriented toward a nuclear family, so support available to grandparents is fairly lacking."

Joanne Jaffe, the housing chief for the New York Police Department, had noticed how many grandmothers were becoming the anchor for disjointed families. LOV, which first met in September 2010, evolved from her observations, and from Police Commissioner Raymond Kelly's work with Brooklyn clergy to combat youth violence.

Jaffe focused on grandmothers — not grandfathers — for several reasons. Among them: far more grandmothers than grandfathers are thrust into parenting roles because they often have more time, experience and willingness than men of their generation to rear their children's children. Jaffe wanted to empower those women to become leaders in combating violence and other problems in their communities.

"It's a giant family therapy group," Jaffe said recently as LOV members trickled into the Mt. Sion Baptist Church, on a busy corner near a loud highway overpass. There were women leaning on walkers and on canes, and at least one in a wheelchair. Another came with a squirming toddler in her arms.

There were squeals of joy and cries of "Welcome back!" as the women who had not seen each other in eight weeks — the group had taken a summer hiatus — huddled like giddy teenagers. For the next 21/2 hours, with their grandchildren and great-grandchildren in day care, at school, or being cared for by baby-sitters or other family members, they could focus on themselves and one another.

Inez Rodriguez said she had canceled hip and knee replacement surgery to come to the gathering. Daphne Georgalas lamented the challenge of resting babies on her tired shoulders. "I thought I was done — and lo and behold I have little Princess Emily now," she said of her infant granddaughter.

Jaffe, whose NYPD uniform was in sharp contrast to the colorful dresses and hats worn by many of the grandmothers, made a point not to sound too cheery as she greeted the crowd. Instead, she alluded to the city's bloody summer, when shootings left several children and teenagers dead and wounded in the very neighborhoods that many of the grandmothers call home, and hope to change by keeping their own grandkids out of trouble.

"I'm not going to say it was a wonderful summer. I'm not coming here saying it's been a wonderful year," Jaffe said as cries of "Amen" and knowing "Uh-huhs" filled the room.

As police officers in uniform dished out a hot buffet breakfast, the women began catching up with one another. One of them was Carolyn Faulkner, a slender 74-year-old, who raised two grandchildren, now 21 and 19, and is now raising a third — a 10-year-old girl.

"Between running to school and going to PTA meetings, it's a lot of work, but you know what they say to me?" she said of her grandchildren. "'Thanks, Grandma.' That's more than money can buy."

Faulkner says she stepped in to care for her eldest daughter's three children when it became clear their mother was not up to the task.

"She didn't do drugs or anything. She just didn't grow up," said Faulkner, who with her husband of 50 years has run a wedding planning business among other enterprises, and who sits on her neighborhood's community board.

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Carpe Twitter: Vatican tweets on new Latin academy
















VATICAN CITY (Reuters) – A senior Vatican cardinal tweeted in Latin on Wednesday to urge people to attend the inauguration of, you guessed it, the Holy’s See’s new Academy for Latin Studies.


“Hodie una cum Ivano Dionigi novam aperiemus academiam pontificiam latinitatis a Benedicto conditam, hora XVII, via Conciliationis V,” was the tweet by Cardinal Gianfranco Ravasi.













The approximate translation: “Today at 5 p.m., along with Ivano Dionigi, we will open the new Pontifical Academy for Latin Studies founded by Benedict. Via della Conciliazione, 5.”


It was not the first tweet in Latin – an Italian professor has been doing it for some time – but evidently Ravasi wanted to seize the day, or “carpe diem”.


The pope earlier this month announced that he had instituted the Pontifical Academy for Latin Studies, placing it under the auspices of the Vatican’s ministry for culture.


Dionigi, a Latin scholar who is rector of Bologna University – widely recognized to be the world’s oldest – is the academy’s first president.


The pope started the academy to promote the study and use of Latin in the Roman Catholic Church and beyond.


When instituting the academy, the pope said Latin, which is still the official language of the universal Church, was the subject of renewed interest around the world and the academy was mandated to encourage further growth.


(Reporting By Paolo Biondi and Philip Pullella)


Social Media News Headlines – Yahoo! News



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Chevy Chase is leaving NBC's sitcom 'Community'

LOS ANGELES (AP) — The NBC series "Community" will finish the season without Chevy Chase.

Sony Pictures Television said Wednesday that the actor is leaving the sitcom by mutual agreement with producers.

His immediate departure means he won't be included in the last episode or two of the show's 13-episode season, which is still in production.

Chase had a rocky tenure playing a bored and wealthy man who enrolls in community college. The actor publicly expressed unhappiness at working on a sitcom and feuded last year with the show's creator and former executive producer, Dan Harmon.

The fourth-season premiere of "Community" is Feb. 7, when it makes a delayed return to the 8 p.m. EST Thursday time slot. The show's ensemble cast includes Joel McHale and Donald Glover.

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Documents Show F.D.A.’s Failures in Meningitis Outbreak





Newly released documents add vivid detail to the emerging portrait of the Food and Drug Administration’s ineffective and halting efforts to regulate a Massachusetts company implicated in a national meningitis outbreak that has sickened nearly 500 people and killed 34.




In the documents, released on Tuesday in response to a Freedom of Information Act request, the agency would threaten to bring the full force of its authority down on the company, only to back away, citing lack of jurisdiction.


The company, the New England Compounding Center, at times cooperated with F.D.A. inspectors and promised to improve its procedures, and at other times challenged the agency’s legal authority to regulate it, refused to provide records and continued to ship a drug in defiance of the agency’s concerns.


Some of the documents were summarized last week by Congressional committees that held hearings on the meningitis outbreak. Republicans and Democrats criticized the F.D.A. for failing to act on information about unsafe practices at the company as far back as March 2002.


By law, compounding pharmacies are regulated primarily by the states, but the pharmacies have grown over the years into major suppliers of some of the country’s biggest hospitals. The F.D.A. is asking Congress for stronger, clearer authority to police them, but Republicans have said the agency already has enough power.


Records show that the agency was sometimes slow in pursuing its own inspection findings. In one case involving the labeling and marketing of drugs, the agency issued a warning letter to New England Compounding 684 days after an inspection, a delay that the company’s chief pharmacist complained was so long that some of the letter’s assertions no longer applied to its operations.


The agency said in a statement Wednesday that it “was not the timeline we strive for,” but that much of the delay was because of “our limited, unclear and contested authority in this area.” Because of litigation, it said, there was “significant internal discussion about how to regulate compounders.”


The agency first inspected the company in April 2002 after reports that two patients had become dizzy and short of breath after being injected with a steroid made by the company.


 On the first day of the inspection, Barry Cadden, the chief pharmacist, was cooperative, but the next day, the agency inspectors wrote, Mr. Cadden “had a complete change in attitude & basically would not provide any additional information either by responding to questions or providing records,” adding that he challenged their legal authority to be at his pharmacy at all.


The F.D.A. was back at New England Compounding in October 2002 because of possible contamination of another of its products, methylprednisolone acetate, the same drug involved in the current meningitis outbreak.


 While the F.D.A. had the right to seize an adulterated steroid, officials at the time said that action alone would not resolve the company’s poor compounding practices. In a meeting with Massachusetts regulators, F.D.A. officials left authority in the hands of the state, which “would be in a better position to gain compliance or take regulatory action,” according to a memo by an F.D.A. official summarizing the meeting.


 David Elder, compliance branch director for the F.D.A.’s New England District, warned at the meeting that there was the “potential for serious public health consequences if N.E.C.C.’s compounding practices, in particular those relating to sterile products, are not improved.”


 The company fought back hard, repeatedly questioning the F.D.A.’s jurisdiction. In a September 2004 inspection over concerns that the company was dispensing trypan blue, a dye used for some eye surgeries that had not been approved by the F.D.A., Mr. Cadden told the agency inspector that he had none in stock.


But in the clean room, the inspector noticed a drawer labeled “Trypan Blue,” which contained 189 vials of the medicine.


A few days later, Mr. Cadden was defiant. He told the agency that he was continuing to dispense trypan blue and that there was nothing in the law saying a compounder could not dispense unapproved products.


 The conversation turned testy. “Don’t answer any more questions!” Mr. Cadden told another pharmacy executive, according to the F.D.A.’s report.


Mr. Cadden rejected many of the assertions in the warning letter that finally came in December 2006. The next correspondence from the agency did not come until almost two years later, in October 2008, saying that the agency still had “serious concerns” about the company’s practices, and that failing to correct them could result in seizure of products and an injunction against the company and its principals.


It is not known whether any corrective actions were taken. The agency did not conduct another inspection until the recent meningitis outbreak.


Denise Grady contributed reporting.



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Hostess wins court approval to shut down









Twinkies maker Hostess Brands Inc. won court approval to start shutting down operations, selling its assets and laying off its 18,500 workers, after the failure of an 11th-hour mediation to try to resolve a labor dispute.


U.S. Bankruptcy Judge Robert Drain gave Hostess the go-ahead Wednesday to sell its plants and brands after he presided over the closed-door talks Tuesday with the company and the striking Bakery, Confectionery, Tobacco and Grain Millers Union, which represents about 5,000 Hostess workers.


Heather Lennox, a lawyer for Hostess, said in court that the company has received a "flood of inquiries" from potential suitors.





Among the possible bidders are Nature's Own parent Flowers Foods Inc., Sun Capital Partners Inc., Sara Lee owner Grupo Bimbo, Pabst Blue Ribbon owner C. Dean Metropoulos & Co. and investment firm Hurst Capital, according to reports and analysts.


An outpouring of concern and nostalgia broke out last week when Hostess said publicly that it would shut down. It held back to give mediation a try, but Wednesday's action kindled disappointment among workers' families.


"My uncle lost his job of 27 years working for Merita Bread (partnered with Hostess)," tweeted user @sunlightmocha. "He had only ever taken ONE sick day. It's so sad."


"I'm so sad Hostess went out of business," tweeted user @NikkiKiley1. "My dad lost his job and I will never get to eat a Twinkie again. What a bad day."


"This is truly a sad day for thousands of families," said Ken Hall, general secretary-treasurer of the non-striking Teamsters union, the largest at Hostess with 6,700 members.


The 82-year-old company said that it would shrink its head count to 3,200 workers in the coming months and that those remaining would stay until the liquidation is done, which it said would take a year.


Hostess, based in Irving, Texas, will end up closing 33 bakeries, 565 distribution centers and 570 bakery outlet stores nationwide. In Southern California, the maker of Ho Hos, Ding Dongs, Dolly Madison Cakes, Wonder bread and other products employed more than 500 workers at the start of the year.


Hostess filed for bankruptcy in January for the second time in a decade.


It first moved to shut down its operations Friday, blaming the union for a strike that "crippled its operations at a time when the company lacked the financial resources to survive a significant labor action."


The baker said its "inflated cost structure," which it attributed primarily to its collective bargaining agreements, put it at a "profound competitive disadvantage."


Workers who walked off their jobs accused Hostess of awarding pay increases to executives while pillaging employee benefits and wages.


In court Wednesday, Drain noted that the failure of the talks was the result of disagreements and not the fault of either party. He allowed the company to remain in control of the liquidation, rejecting a request to turn the Chapter 11 proceeding into one overseen by the U.S. trustee's office under Chapter 7.


The company will return to court later to seek approval to sell off specific brands, which financial advisors testified could generate $1 billion in proceeds.


Last year, Hostess reported sales of $2.45 billion, down 2% from the year before, according to estimates from research group PrivCo. The company's net loss more than doubled to $341 million from $136 million, according to the report.


tiffany.hsu@latimes.com





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LAFD looks at ways to speed up emergency response times









Los Angeles Fire Department officials, facing criticism over slow response times to 911 calls, are considering two new strategies that could get rescuers to the scene of medical emergencies more quickly.


One program, known as "quick launch," reduced the time it took to get fire units moving by an average of 50 seconds — roughly in half — during a test period in 2006. The experiment allowed dispatchers to send units before fully determining the nature of emergencies, according to internal LAFD documents obtained by The Times.


The test was discontinued because so many rescue units were being dispatched that it created gaps in coverage, department officials said during a Fire Commission meeting Tuesday. "It ties up resources," Fire Chief Brian Cummings explained to reporters.





FULL COVERAGE: 911 breakdowns at LAFD


But with pressure building to reduce response times, Cummings and the fire commissioners said Tuesday that the department will reexamine the program to see if it can be improved.


The agency also plans to roll out a separate program that would quickly alert paramedics and emergency medical technicians whenever a 911 call is received from their area. The alert would give rescuers a head start on gathering gear and getting into their trucks while dispatchers collect information on the nature of the emergency, according to the commander of the LAFD dispatch center.


The department is struggling to improve its data analysis and trying to reassure the public and elected officials about its emergency response performance. Fire officials have been under scrutiny since March, when they acknowledged that for years they had produced reports that made it appear rescuers were getting to victims faster than they actually were.


Fire commissioners on Tuesday also discussed a study by a special task force that found the department has produced inaccurate response-time data that should not be relied upon. Some of the faulty reports were used by City Council members when they decided to shut down fire engines and ambulances at more than one-fifth of the city's 106 firehouses.


A Times investigation earlier this year found LAFD's dispatchers lag well behind national standards that call for rescuers to be sent to those in need in under 60 seconds on 90% of 911 calls. Those findings were confirmed this week in the report from the task force, which was headed by Asst. Chief Patrick Butler and included experts from inside and outside the department.


The quick-launch dispatching experiment was conducted over a four-week period in the summer of 2006. Dispatchers normally ask callers a series of carefully scripted questions to determine the severity of a medical incident. The answers typically must be entered into a computer before firefighters are dispatched.


The pilot program got rescuers rolling earlier in the 911 call-handling process. The 50-second reduction in average dispatching time exceeded officials' expectations and was "especially encouraging," according to an internal LAFD study obtained by The Times.


But Asst. Chief Daniel McCarthy, commander of the LAFD dispatch center, said firefighters were being sent to shooting scenes and other potentially dangerous locations not knowing what to expect.


"We put people at risk when we did that," McCarthy told The Times.


He said the department also will deploy a new dispatching system known as "quick alert." Rescuers will be notified over loudspeaker and by Teletype as soon as a medical 911 call is received involving their fire station's service area, speeding up so-called turnout time. Special notification equipment is expected to be installed at fire stations over the next 18 months, McCarthy said.


Last week, The Times reported that waits for medical aid vary dramatically across Los Angeles' diverse neighborhoods. Residents in many of the city's most exclusive hillside communities can wait twice as long for rescuers as those living in more densely populated areas in and around downtown, according to the analysis that mapped out more than 1 million dispatches since 2007.


Cummings acknowledged the findings on Tuesday, saying waits for help are longer in areas farther from fire stations.


"It is a matter of geography," the chief said. "Personally, if I had a serious medical condition, I'd live close to a hospital."


FULL COVERAGE: 911 breakdowns at LAFD


robert.lopez@latimes.com


ben.welsh@latimes.com





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Scott Derrickson to direct feature adaptation of hit video game “Deus Ex: Human Revolution”
















LOS ANGELES (TheWrap.com) – Scott Derrickson (“Sinister,” “The Exorcism of Emily Rose“) has signed on to direct the big screen adaptation of the hit Square Enix video game, “Deus Ex: Human Revolution,” for CBS Films, the company announced on Thursday.


Derrickson will also write the screenplay for the film with C. Robert Cargill (“Sinister.”)













Roy Lee and Adrian Askarieh are attached to produce the film, with John P. Middleton serving as the executive producer.


Set in the near future, when dramatic advances in science, specifically human augmentation, have triggered a technological renaissance, “Deus Ex: Human Revolution” follows Adam Jensen, an ex-SWAT security specialist who must embrace mechanical augments in order to unravel a global conspiracy.


“‘Deus Ex’ is a phenomenal cyberpunk game with soul and intelligence,” said Derrickson. “By combining amazing action and tension with big, philosophical ideas, ‘Deus Ex‘ is smart, ballsy, and will make one hell of a movie. Cargill and I can’t wait to bring it to the big screen.”


The “Deus Ex” franchise was originally introduced in June 2000. Its latest entry, “Deus Ex: Human Revolution,” launched in 2011, ranked number one across global sales charts and earned over 100 industry awards.


Developed by Eidos-Montréal and published by Square Enix, “Deus Ex: Human Revolution” will serve as the primary template for the film.


Derrickson and Cargill, pictured above, are represented by WME and managed by Brillstein Entertainment Partners.


Gaming News Headlines – Yahoo! News



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One Direction's 2nd CD hits No. 1, sells 540,000

NEW YORK (AP) — One Direction's "Take Me Home" is the taking the boys to the top of the charts — and to new heights.

The group's sophomore album has sold 540,000 in its first week, according to Nielsen SoundScan. It's the year's third-highest debut behind Taylor Swift's "Red," which sold 1.2 million units its first week earlier this month, and Mumford & Sons' "Babel," which sold more than 600,000 albums in September in its debut week.

"We just want to say a massive thanks to all the fans who have supported us," band member Harry Styles, 18, said in an interview Tuesday from London. "We can send tweets and thank them, but 140 characters is never going be enough to say how much it means."

The album also debuted at No. 1 in the United Kingdom this week and is No. 1 in more than 30 countries, Columbia Records said Wednesday. The fivesome's debut, "Up All Night," came in at No. 2 in the United Kingdom last year; it was just released in March in America, where it hit No. 1 and has achieved platinum status.

"We were a little bit nervous about how people were going to take it," 19-year-old Niall Horan said of the new album during tour rehearsals. "Everyone gets that second album syndrome."

They say though they're excited, they won't be celebrating too much: "We're finishing rehearsing soon and we're going home to bed."

One Direction, who placed third on the U.K. version of "The X Factor" in 2010, is signed to Simon Cowell's Syco label imprint. In just a year, the band has become worldwide sensations, thanks to its feverish fans. They released a book and have a 3D movie planned. They also made the cut for Barbara Walters' most fascinating people of 2012 list, which includes New Jersey Gov. Chris Christie and U.S. gold medalist Gabby Douglas.

One Direction says those experiences have helped the group mature.

"We've been working hard. We're starting to grow up," Horan said. "We're still young, but we've passed the initial teenage years. ...We've grown up quite quick in the job we have to do and we became a lot more independent."

The group — which includes Zayn Malik, Liam Payne and Louis Tomlinson — will launch a worldwide tour in February. They hope to work with Katy Perry and are still trying to adjust to the celebrity and fame that has taken over their lives.

"I can see how it gets to people. I guess it's quite easy to get wrapped up in it all," Styles said. "We do the same things every other lad our age does. We go out, we have fun, we meet girls and stuff like that. Sometimes it gets written about, which, yeah, we think about it and it's absolutely crazy. It's still a bit weird thinking that that's the way it is."

___

Online:

http://www.onedirectionmusic.com/us/home/

___

Follow Music Mesfin on Twitter at http://twitter.com/MusicMesfin

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New H.I.V. Cases Falling in Some Poor Nations, but Treatment Still Lags





New infections with H.I.V. have dropped by half in the past decade in 25 poor and middle-income countries, many of them in Africa, the continent hardest hit by AIDS, the United Nations said Tuesday.




The greatest success has been in preventing mothers from infecting their babies, but focusing testing and treatment on high-risk groups like gay men, prostitutes and drug addicts has also paid dividends, said Michel Sidibé, the executive director of the agency U.N.AIDS.


“We are moving from despair to hope,” he said.


Despite the good news from those countries, the agency’s annual report showed that globally, progress is steady but slow. By the usual measure of whether the fight against AIDS is being won, it is still being lost: 2.5 million people became infected last year, while only 1.4 million received lifesaving treatment for the first time.


“There has been tremendous progress over the last decade, but we’re still not at the tipping point,” said Mitchell Warren, the executive director of AVAC, an advocacy group for AIDS prevention. “And the big issue, sadly, is money.”


Some regions, like Southern Africa and the Caribbean, are doing particularly well, while others, like Eastern Europe, Central Asia and the Middle East, are not. Globally, new infections are down 22 percent from 2001, when there were 3.2 million. Among newborns, they fell 40 percent, to 330,000 from 550,000.


The two most important financial forces in the fight, the multinational Global Fund for AIDS, Tuberculosis and Malaria and the domestic President’s Emergency Plan for AIDS Relief, were both created in the early 2000s and last year provided most of the $16.8 billion spent on the disease. But the need will soon be $24 billion a year, the groups said.


“Where is that money going to come from?” Mr. Warren asked.


The number of people living with H.I.V. rose to a new high of 34 million in 2011, while the number of deaths from AIDS was 1.7 million, down from a peak of 2.3 million in 2005. As more people get life-sustaining antiretroviral treatment, the number of people living with H.I.V. grows.


Globally, the number of people on antiretroviral drugs reached 8 million, up from 6.6 million in 2010. However, an additional 7 million are sick enough to need them. The situation is worse for children; 72 percent of those needing pediatric antiretrovirals do not get them.


New infections fell most drastically since 2001 in Southern Africa — by 71 percent in Botswana, 58 percent in Zambia and 41 percent in South Africa, which has the world’s biggest epidemic.


But countries with drops greater than 50 percent were as geographically diverse as Barbados, Cambodia, the Dominican Republic, Ethiopia, India and Papua New Guinea.


The most important factor, Mr. Sidibé said, was not nationwide billboard campaigns to get people to use condoms or abstain from sex. Nor was it male circumcision, a practice becoming more common in Africa.


Rather, it was focusing treatment on high-risk groups. While saving babies is always politically popular, saving gay men, drug addicts and prostitutes is not, so presidents and religious leaders often had to be persuaded to help them. Much of Mr. Sidibé’s nearly four years in his post has been spent doing just that.


Many leaders are now taking “a more targeted, pragmatic approach,” he said, and are “not blocking people from services because of their status.”


Fast-growing epidemics are often found in countries that criminalize behavior. For example, homosexuality is illegal in many Muslim countries in the Middle East and North Africa, so gay and bisexual men, who get many of the new infections, cannot admit being at risk. The epidemics in Eastern Europe and Central Asia are driven by heroin, and in those countries, methadone treatment is sometimes illegal.


Getting people on antiretroviral drugs makes them 96 percent less likely to infect others, studies have found, so treating growing numbers of people with AIDS has also helped prevent new infections.


Ethiopia’s recruitment of 35,000 community health workers, who teach young people how to protect themselves, has also aided in prevention.


Mr. Sidibé acknowledged that persuading rich countries to keep donating money was a struggle. The Global Fund is just now emerging from a year of turbulence with a new executive director, and the American program has come under budget pressures. Also, he noted, many countries like South Africa and China are relying less on donors and are paying their own costs. The number of people on treatment in China jumped 50 percent in a single year.


Mr. Warren’s organization said in a report on Tuesday that the arsenal of prevention methods had expanded greatly since the days when the choice was abstain from sex, be faithful or use condoms. Male circumcision, which cuts infection risk by about 60 percent, a daily prophylactic pill for the uninfected and vaginal microbicides for women are in use or on the horizon, and countries need to use the ones suited to their epidemics, the report concluded.


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Ex-hedge fund manager Mathew Martoma accused of insider trading









NEW YORK — After building a huge stake in two drug companies, hedge fund manager Mathew Martoma told his powerful boss on a Sunday morning that they had to immediately dump their position.


It was an unusual request even by the outsized standards of Wall Street, but the hedge fund quietly liquidated its $700-million position within days.


Federal authorities suggested Tuesday why Martoma was in such a hurry back in 2008 — he'd allegedly gotten an illegal tip about big problems with the companies' developmental Alzheimer's drug. It was the most profitable insider-trading scheme in U.S. history, netting $276 million in profit and avoided losses, according to prosecutors.





But it resulted in criminal charges against Martoma and a swirl of questions about his boss, Steven Cohen, who is one of the most celebrated figures on Wall Street.


Cohen is worth an estimated $8.8 billion and lives in a 35,000-square-foot mansion in Greenwich, Conn., that includes an ice rink and Zamboni machine. He helped bankroll a failed bid last year to buy the Dodgers.


His firm, SAC Capital Advisors, has drawn attention in recent years as the government launched a massive crackdown on insider trading.


The hedge fund reportedly told clients it received a subpoena seeking a "broad" array of documents in late 2010. Around that time, two hedge funds founded by SAC alumni were raided by FBI agents as the government pursued its insider probe.


Martoma is the fifth person affiliated with SAC Capital to be charged in insider-related cases. Cohen's ex-wife sued him three years ago, alleging that her former husband amassed his fortune partly through insider trading.


Cohen was not named in the dual federal and civil complaints Tuesday, but experts said the government might have him in its sights.


In a civil complaint filed by the Securities and Exchange Commission, Cohen is referred to as "Portfolio Manager A," the Wall Street Journal reported. The companion criminal action lists Cohen as the "owner" of hedge funds involved in the scheme, the Journal said.


"He is to hedge funds what Michael Milken, back in the '80s, was to investment bankers," said John Coffee, a law professor at Columbia University. "The government seems to be within one move of getting a key witness against one of the most important figures in the new universe of hedge funds."


An SAC spokesman disputed that.


"Mr. Cohen and SAC are confident that they have acted appropriately and will continue to cooperate with the government's inquiry," the spokesman said in a statement.


Martoma's lawyer denied wrongdoing by his client.


"Mathew Martoma was an exceptional portfolio manager who succeeded through hard work and the dogged pursuit of information in the public domain," the lawyer, Charles Stillman, said in a statement. "What happened today is only the beginning of a process that we are confident will lead to Mr. Martoma's full exoneration."


The case revolves around a drug developed by Irish biotechnology company Elan Corp. and New Jersey-based pharmaceutical giant Wyeth, which was acquired by Pfizer Inc. in 2009.


Martoma specialized in healthcare stocks for an SAC unit called CR Intrinsic. He got a series of tips about the drug, bapineuzumab, from Dr. Sidney Gilman, a neurology professor at the University of Michigan, the government said.


Gilman consulted for Elan and Wyeth. Martoma was connected to Gilman by an "expert network" that matches investors with specialists in various fields.


After initial optimism about bapineuzumab, a clinical trial showed disappointing results. Gilman allegedly alerted Martoma to the test results shortly before public disclosure in July 2008, prompting Martoma's 8:52 a.m. email to Cohen.


The subsequent selling accounted for a whopping 20% of Elan's trading volume and 11% of Wyeth's at one point, according to the FBI. The fund even bet against the companies by "shorting" their stocks.


"And so, just like that, overnight, Martoma went from bull to bear as he tried to dig his hedge fund out of a massive hole," Preet Bharara, the U.S. attorney in Manhattan, said at a news conference.


Elan shares slumped 42% the day after the results were revealed.


Martoma is the fifth former SAC employee and the 73rd defendant accused of insider trading by Bharara's office since August 2009. Of those defendants, 69 have been convicted, most of them through plea agreements.


Bharara's office agreed to not prosecute Gilman, 80, in exchange for his testimony.


Martoma, 38, got an annual bonus of $9.3 million, primarily stemming from the profits in Elan stock, according to the government.


He got no bonus after disappointing years in 2009 and 2010 and was terminated in 2010. According to the government, an email recommending his termination said Martoma appeared to be a "one trick pony with Elan."


andrew.tangel@latimes.com


walter.hamilton @latimes.com





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