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Bernard Madoff victims get first compensation cheques

• Payments go to 1,230 victims of Bernard Madoff’s Ponzi fraud • Initial distribution delayed by legal ruling on New York Mets Victims of Bernard Madoff’s fraud scheme are set to receive $312m (£202) this week as the trustee charged with recovering their cash sends out their first set of compensation cheques. The money will be split between the holders of 1,230 Madoff accounts and represents a recovery of roughly 4.6 cents for every dollar they invested. Irving Picard, court-appointed trustee for the Madoff victims, said he had recovered, or entered into agreements to recover, approximately $8.7bn, about half the $17.3bn he estimates was lost in Madoff’s Ponzi scheme. “This initial distribution is the first return of stolen funds to Madoff’s defrauded customers,” said Picard. “Significant, additional funds – currently unavailable for distribution due primarily to appeals – will ultimately be returned to their rightful owners, as well as future monies yet to be recovered. The need among many Madoff customers is urgent, and we are working to expedite these distributions.” Picard said distribution of the rest of the money he has recovered was being held up by appeals or the timing of payments. Picard’s $5bn settlement with the estate of late investor Jeffry Picower – his largest settlement to date – is currently being appealed. The payments were to go out last week but were delayed as Picard considered the effects of a court ruling over Madoff profits given to the owners of the New York Mets baseball team. On 27 September Judge Jed Rakoff of the US district court in Manhattan ruled that the trustee was allowed to seek only the return of fictional profits the Mets owners withdrew in the last two years of the fraud, which lasted more than a decade. The judge also rejected Picard’s bid to recover preference claims, the cash paid to team owners in the last 90 days of the fraud. Picard calculated that if the ruling applied to the hundreds of other claims he is pursuing, it would reduce potential recoveries by $6.2bn. “The order had raised potential issues regarding the distribution, which have since been resolved, allowing the distribution to commence,” said Picard. The trustee has sued for nearly $100bn in damages and fictional profits that he claims banks, including HSBC and JP Morgan, hedge funds and investment managers made dealing with Madoff during his decades-long scheme. Madoff is serving a 150-year jail sentence after being found guilty of running one of the largest fraud schemes of all time. Bernard Madoff United States Dominic Rushe guardian.co.uk

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It’s payback time for Amanda Knox. Those years in Italian prison will begin to ka-ching as the Seattle woman rakes in millions of dollars in book and movies deals, and appearances. “Unlike Casey Anthony, who has essentially become public enemy No. 1 since her acquittal, Amanda Knox has garnered tremendous…

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Tory MP on intelligence committee is paid by Azerbaijan lobby group

Mark Field denies conflict of interest over his links to a country whose human rights record is criticised by the Foreign Office A Conservative MP who sits on the committee that scrutinises the security services is being paid £6,000 a year by a pro-Azerbaijan lobby group. Mark Field, MP for the Cities of London and Westminster, has joined the advisory board of the European Azerbaijan Society. Azerbaijan’s government has been criticised this year by the Foreign Office and Amnesty International for torturing protesters campaigning for political reforms. Labour MPs have questioned whether Field’s new job is appropriate given the sensitive nature of the work of the intelligence committee. Field, 46, is the youngest ever MP to serve on the committee, which reports directly to 10 Downing Street and oversees the UK’s intelligence and security services. The committee is unique because it consists of nine parliamentarians appointed by, and reporting directly to, the prime minister. It has greater powers than a select committee of parliament, being able to demand papers from former governments and official advice to ministers, both of which are not open to select committees. His new advisory role began in June. He is also the chairman of the all-party group for Azerbaijan. Field flew to Azerbaijan to meet senior Azeri politicians in May on a five-day trip that cost around £3,500 and in July 2010 he spoke in the country’s capital, Baku, at a Nato conference. In March Prince Andrew met Field at Buckingham Palace and asked for support in parliament and Whitehall for British investment in Azerbaijan. The European Azerbaijan Society was launched in November 2008 to promote Azerbaijan to international audiences, according to its website. The country is the size of the island of Ireland and sits on the edges of eastern Europe and west Asia. It is attracting increasing interest from foreign powers because of an abundance of gas and oil reserves. Tale Heydarov, a 26-year-old businessman whose father is one of Azerbaijan’s ministers, is the society’s main funder and director. A former student at the London School of Economics, he has been described as the “Abramovich of Azerbaijan” after pouring millions of pounds into his local football team – including £1m a year in wages to recruit the former England captain Tony Adams as manager. Azerbaijan is ruled by the authoritarian president Ilham Aliyev and, according to the Foreign Office, the country’s human rights record is poor. Journalists in the country have been harassed and jailed, opposition candidates disqualified and voters intimidated. In March Amnesty International called upon Azerbaijan’s authorities to end their crackdown on activists preparing for a protest inspired by recent events in the Middle East and north Africa. Detainees said they had been waterboarded and threatened with rape while in police custody. A spokesman for the Foreign Office said human rights remained a crucial issue in the country. “We and the EU have raised our concern over the slow progress in improving human rights in Azerbaijan on many occasions. These concerns still exist.” The society has increased its profile in Westminster over the past year. It provides secretarial services for the all-party parliamentary group on Azerbaijan, which has 20 members. It has organised high-profile meetings and receptions at all three of the main party conferences. The society also founded “Conservative Friends of Azerbaijan” this year, which has 25 Tory parliamentarians as members. Robert Halfon MP is vice-chair and Chris Pincher MP is treasurer. Other members include the deputy speaker Nigel Evans and the 1922 Committee chairman, Graham Brady. Approached this week, Field said it was “absurd” to claim that he should not have taken up his new position. He said he had met Tale Heydarov on a couple of occasions. “The reason that I have been out there [to Azerbaijan] on two occasions is because the country is trying to develop its financial services sector. There is no question of a conflict of interest,” he said. “I have signed the Official Secrets Act and I will not be divulging any secrets to the Azerbaijan government or anyone else connected to any of the other organisations or all-party committees I am involved with. It would be absurd and would be quite improper to think that anyone on the security and intelligence committee could not have any other outside interests,” he said. A spokesman for the society said the Heydarovs were not its only funders and it was an independent organisation, entirely separate from the Azerbaijan government. John Mann, the Labour MP for Bassetlaw, said: “This shows how wrong it can go when an MP takes a second job. It is an obvious conflict of interest.” Lisa Nandy, the Labour MP for Wigan who chairs the all-party group on corporate responsibility, said: “As one of a small number of parliamentarians who have the power to influence the British intelligence services and access to highly sensitive information, it is inappropriate that he is paid by a company promoting a government that is willing to torture those who question the status quo.” Azerbaijan Rajeev Syal guardian.co.uk

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While Amanda Knox’s release from Italian prison took the spotlight, two exonerated men who spent a combined four decades in prison were quietly set free on Tuesday. Obie Anthony, 37, and Michael Morton, 57, each insisted on their innocence throughout their many years in jail while serving life sentences for murder. And each man was

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What a boob. Hefty silicon breast implants saved a Russian woman’s life after she was stabbed by her husband. Her large, “size 4″ implants—obtained at the request of her hubby—stopped the knife from entering her heart, doctors told Pravda . Moscow surgeons repaired the wound.

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Was purported straight-shooter J. Edgar Hoover really a cross-dressing sexual blackmailer? Director Clint Eastwood needed to know about Hoover’s sexual proclivities for his new film on the boss G-man—so he asked the FBI. He and star Leonardo DiCaprio were told by officials: “Vague rumors and fabrications have cropped up…

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David Cameron speech: let’s show the world some fight

In keynote address to Conservative conference, prime minister sets out upbeat vision following week of sombre speeches by cabinet colleagues David Cameron invoked the spirit of the British bulldog and the days of empire as he pledged to provide the leadership to take Britain to better days. In an attempt to imitate the optimistic vision of Ronald Reagan’s Morning in America campaign , the prime minister said he would fight a climate of “sogginess” which says Britain faces certain decline. “Britain never had the biggest population, the largest land mass, the richest resources – but we had the spirit,” the prime minister said in his keynote speech to the Conservative conference in Manchester. Referring to the British bulldog, Cameron added: “Remember, it’s not the size of the dog in the fight – it’s the size of the fight in the dog. Overcoming challenge, confounding the sceptics, reinventing ourselves, this is what we do. It’s called leadership.” Tory strategists decided the prime minister would use his speech to set out an upbeat and optimistic vision after a week of sombre speeches by ministers and notably by the chancellor, George Osborne. Cameron echoed Osborne when he said Britain faced a long struggle to revive the economy. “People want to know why the good times are so long coming,” he said. “The answer is straightforward, but uncomfortable. This was no normal recession – we’re in a debt crisis. It was caused by too much borrowing by individuals, businesses, banks and, most of all, governments.” As Downing Street confirmed earlier on Wednesday, the prime minister amended this sober section of his speech to tone down an apparent instruction to people to follow the example of the government and to pay off their credit cards. Instead, he said: “The only way out of a debt crisis is to deal with your debts. That’s why households are paying down their credit card and store card bills.” Cameron challenged Labour, which accuses the government of imposing spending cuts too quickly and too soon, by putting his deficit reduction plans within the tradition of moderate “one nation Conservatism” embodied by his political hero, Harold Macmillan. “This is a one-nation deficit reduction plan from a one-nation party,” he said. Having established the economic challenge facing Britain, the prime minister started to outline his upbeat vision as he pledged to reject pessimism and promote “can-do optimism”. The Tories illustrated this approach by inviting young people who have taken part in the National Citizens’ Service initiative to address the conference. But he said there was a downbeat mood and he would fight it. “Frankly, there’s too much ‘can’t do’ sogginess around,” he told delegates. “We need to be a sharp, focused, can-do country. But as we go for growth, the last thing I want is to pump the old economy back up, with a banking sector out of control, manufacturing squeezed, and prosperity confined to a few parts of the country and a select few industries. “Our plan is to build something new and to build something better. We can do it.” The prime minister cited health and safety rules as an example of how Britain was being held back. “This isn’t how a great nation was built,” he said. “Britannia didn’t rule the waves with armbands on.” Picking up on his theme of the empire, he said he would try to revive the spirit that allowed Britain to find a new role after the collapse of its empire. “They said when we lost an empire that we couldn’t find a role. But we found a role, took on communism and helped bring down the Berlin Wall,” he said. “They called our economy the sick man of Europe. But we came back and turned this country into a beacon of enterprise.” In his concluding remarks, Cameron said: “Let’s turn this time of challenge into a time of opportunity. Not sitting around watching things happen and wondering why, but standing up, making things happen and asking: ‘Why not?’. “We have the people, we have the ideas, and now we have a government that’s freeing those people, backing those ideas. So let’s see an optimistic future. Let’s show the world some fight. Let’s pull together, work together. And together lead Britain to better days.” Cameron’s speech outlined how key government reforms would help: • In education, there will be an emphasis on “core and vital subjects”, he said as he hailed the new free schools established by the education secretary, Michael Gove. “Change really is under way,” he added. “For the first time in a long time, the numbers studying those core and vital subjects history, geography, languages are going up. “Pupils’ exams will be marked on their punctuation and grammar. And teachers are going to be able to search pupils’ bags for anything banned in school – mobile phones, alcohol, weapons, anything. It’s a long, hard road back to rigour, but we’re well and truly on our way.” • On welfare reform, Cameron promised to return sense to the labour market and get people back to work, with a focus on people on incapacity benefit. “Under Labour, they got something for nothing,” he said. “With us, they’ll only get something if they give something. If they are prepared to work, we’re going to help them, and I mean really help them. “If you’ve been out of work and on benefits for five years, a quick session down the jobcentre and a new CV just isn’t going to cut it. You need to get your self-esteem and confidence back. You need training and skills, intensive personal support.” • On planning, the government would listen to people’s concerns about the changes, he said, adding that the government would do nothing to harm the countryside. But he said that it was important to ease the planning process, adding: “To those who just oppose everything we’re doing, my message is this: take your arguments down to the job centre. We’ve got to get Britain back to work.” Conservative conference 2011 David Cameron Conservative conference Conservatives Economic policy Recession Economics Communities Nicholas Watt guardian.co.uk

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Sesame Street has got a hungry, impoverished new character—and it isn’t Oscar the Grouch or the Cookie Monster. Lily, a 7-year-old girl whose family often struggles to get enough to eat, will appear in the show’s prime-time special “Growing Hope Against Hunger” this Sunday, reports Entertainment Weekly . The Wal-Mart-sponsored…

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Filmed interrogation raises ethical questions over treatment of Omar Khadr, arrested in Afghanistan in 2002 and still in custody The footage is shocking: grainy film shows a slim teenage boy, hunched into himself under the spotlight of a bare interrogation cell. “You don’t care about me,” he tells his interrogators, again and again. After they leave, the ceiling-mounted camera records his racking sobs, just audible over the hum of the air-conditioner. At the time of this interrogation in Guantánamo Bay, February 2003, the boy, Omar Khadr, a Canadian national, was barely 16, yet he had already been in military custody for seven months. Now 25, he remains in the US detention centre, though he will soon be transferred to a prison in Canada in deal which led him to plead guilty last year to war crimes . As far as the Pentagon is concerned, Khadr’s case is closed. But a film about his interrogation , released in the UK this week, raises a series of deeply troubling questions. Firstly, it asks, why did the US try a child, captured in Afghanistan aged just 15, when UN treaties decree underage combatants be treated as victims? How reliable was a confession Khadr says was extracted under torture and, it emerged later, tacit threats of gang rape ? The film, You Don’t Like the Truth: Four Days Inside Guantánamo, is released in the UK on Friday. It even casts doubt on the Pentagon’s claims that Khadr was responsible for killing a US solder, the incident for which he was tried. Dennis Edney, a prominent Canadian human rights lawyer who represented Khadr until earlier this year, says he remains dismayed by the attitude of both the US government and that of Canada, which has repeatedly refused to agitate on Khadr’s behalf. “When governments won’t stand up to this prosecution of a child soldier, who will stand up to it?” he said. “If you can’t protect the most vulnerable in society – which are children – then what is it that you do stand for? It says so much about who we are.” Khadr was captured by US forces in July 2002 near the eastern Afghan city of Khost following a fierce battle between US troops and militants into whose care the boy had been placed by his father, Ahmed Khadr, an Egyptian born aid worker who repeatedly shuttled his family between Canada and Afghanistan, where he was an al-Qaida associate and alleged financier. According to US military prosecutors, during the battle a grenade thrown by Khadr fatally injured an American sergeant, Christopher Speer. But photographs which emerged in 2009 appear to show the boy lying unconscious in the bombed-out compound at the time he supposedly committed the act. The boy, then aged 15, was partly blinded and suffered severe back and shoulder injuries in the battle. He was taken first to the Bagram airbase, where interrogation commenced, and then Guantánamo. The four days of questioning by Canadian intelligence officials which features heavily in the film shows a clearly traumatised Khadr initially admitting to having met Osama bin Laden before saying he made this up as he feared more torture. Several times he breaks down in sobs, at one point seemingly calling for his mother. The Pentagon forbids public release of photographs or recordings inside but in 2008 Khadr’s legal team won a US supreme court ruling for disclosure of several hours of footage . Moazzam Begg , a British former Guantánamo detainee who spent time with Khadr during their initial incarceration at Bagram, said the teenager also told him he believed no one cared for his plight. Begg told the film-makers: “That will remain with me forever. The pity that I felt for him, I’ve never felt for anyone that I saw during all the time in Guantánamo and Bagram.” Edney recounted meeting Khadr, then 17, for the first time. “What did I see? I saw a boy chained to a floor in a solitary confinement cell, blind in one eye and still seriously injured. “I could not believe what I was seeing. I’m a very experienced lawyer. Not much shocks me. But if what happens in Guantánamo Bay doesn’t shock you then you’ve got problems.” Khadr’s eventual hearing before one of the controversial military tribunals set up to try Guantánamo prisoners involved his defence portraying him as an impressionable child at the mercy of his father’s wishes. Prosecutors pointed to a video apparently showing Khadr helping make improvised bombs, saying he was mature enough to be responsible for his actions. Khadr had by then agreed to plead guilty in a deal to serve no more than eight years – all Edney will say of that decision is: “Who among us would not have pleaded out to get out of that hellhole?” Now a strapping, bearded man rather than the slim boy of the video, Khadr seems set on seeing the sentence through, even though his confession means he remains a public pariah in Canada. This is despite the repeated insistence of Unicef and the UN’s special representative for child soldiers, Radhika Coomaraswamy, that the only people guilty of war crimes were the adults who coerced a boy into fighting. The US undertook the first war crimes prosecution of a minor since the second world war, Coomaraswamy said . “Child soldiers must be treated primarily as victims and alternative procedures should be in place aimed at rehabilitation or restorative justice.” Guantánamo Bay Canada Moazzam Begg al-Qaida US military Afghanistan Global terrorism United States US foreign policy US national security United Nations US constitution and civil liberties Human rights Peter Walker guardian.co.uk

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Is Anonymous planning an attack on the New York Stock Exchange? A video supposedly from the hacking collective threatens to “erase” the NYSE next Monday, CNBC reports. “NYSE shall be erased from the Internet. On October 10, expect a day that will never, ever be forgotten,” warns the video, posted…

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