Wal-Mart Inquiry Reflects Alarm on Corruption

Shi Tou/Reuters

A Wal-Mart Supercenter in Chongqing, China. Wal-Mart is investigating potential bribery in Brazil, India, China and Mexico.

Wal-Mart on Thursday reported that its investigation into violations of a federal antibribery law had extended beyond Mexico to China, India and Brazil, some of the retailer’s most important international markets.

The disclosure, made in a regulatory filing, suggests Wal-Mart has uncovered evidence into potential violations of the Foreign Corrupt Practices Act, as the fallout continues from a bribery scheme involving the opening of stores in Mexico that was the subject of a New York Times investigation in April.

The announcement underscores the degree to which Wal-Mart recognizes that corruption may have infected its international operations, and reflects a growing alarm among the company’s internal investigators. People with knowledge of the matter described how a relatively routine compliance audit rapidly transformed into a full-blown investigation late last year — involving hundreds of lawyers and three former federal prosecutors — when the company learned that The Times was examining problems with its operations in Mexico.

A person with direct knowledge of the company’s internal investigation cautioned that Thursday’s disclosure did not mean Wal-Mart had concluded it had paid bribes in China, India and Brazil. But it did indicate that the company had found enough evidence to justify concern about its business practices in the three countries — concerns that go beyond initial inquiries and that are serious enough that shareholders needed to be told.

Wal-Mart issued a statement confirming the new disclosures, and said it would be inappropriate to comment further on the new allegations until it has concluded the investigations.”

The Justice Department and the Securities and Exchange Commission, with Wal-Mart’s cooperation, are also looking into the company’s compliance with the antibribery law.

The Times reported in April that seven years ago, Wal-Mart had found credible evidence that its Mexican subsidiary had paid bribes in its effort to build more stores, a violation of the corrupt practices act, and that an internal investigation had been suppressed by executives at the company’s Arkansas headquarters.

Wal-Mart has so far spent $35 million on a compliance program that began in spring 2011, and has more than 300 outside lawyers and accountants working on it, the company said. It has spent $99 million in nine months on the current investigation.

Consequences of the expanding investigation could include slower expansion overseas and the identification of even more problems. The company said in the filing on Thursday that new inquiries had begun in countries “including but not limited to” China, India and Brazil.

While the disclosure did not specify the nature of the possible bribery problems in the three countries, it “clearly will cause more scrutiny on every real estate project being considered, and one would think at the minimum it will slow down the process as more controls need to be passed through,” said Colin McGranahan, an analyst with Sanford C. Bernstein.

International growth is critical to Wal-Mart, the world’s largest retailer, and Brazil, India, China and Mexico together make up the largest portion of the company’s foreign locations.

Wal-Mart’s international division had been on a growth binge, though that has been slowing lately. In third-quarter results reported Thursday, the company said international sales rose 2.4 percent to $33.2 billion, making up about 29 percent of the company’s overall sales.

More than half of Wal-Mart’s 10,524 stores are international. Mexico has 2,230 stores. Brazil has 534, China, 384.

C. Douglas McMillon, chief executive of Walmart International, said in June that he did not expect the investigation to hinder international growth. “Only time will tell,” he said.

Wal-Mart’s expanding investigation began in spring 2011 as a relatively routine audit of how well its foreign subsidiaries were complying with its anticorruption policies. It is keeping the Justice Department and the S.E.C. apprised of the investigation.

The review was initiated by Jeffrey J. Gearhart, Wal-Mart’s general counsel, who had seen news reports about how Tyson Foods had been charged with relatively minor violations of the Foreign Corrupt Practices Act. He decided it made sense to test Wal-Mart’s internal defenses against corruption.

Charlie Savage, Vikas Bajaj and Andrew Downie contributed reporting.

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October home sales hit 3-year high; prices up 17% year over year

Consumer columnist David Lazarus talks with real estate reporter Alejandro Lazo, DataQuick analyst Andrew LePage and Bill McBride of the Calculated Risk blog about the strong October real estate numbers.

Southern California's real estate market bucked the typical fall slowdown last month, with buyers snapping up pricier homes and sales roaring up 18% over the prior month.

Sales hit a three-year high for an October, rising 25% from the same month last year. The median sale price for a Southland house last month was $315,000, equal to September and up 17% from October 2011, according to real estate research firm DataQuick.

A decline in the number of foreclosed homes has caused a shortage of inventory in entry-level neighborhoods, pushing up home prices. Demand from investors also remains strong, with these buyers snapping up a near-record level of homes last month.

"There is a growing appreciation of the fact that we've come to a sort of a point of inflection in the housing market," Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, said. "The housing market, for a large number of factors, is perceived as having turned a corner."

The region's median hit bottom at $247,000 in April 2009 and has slowly crawled its way up since. The median is the point at which half the homes in the area sold for more and half for less.

Quiz: Test your knowledge of business news

The rebound stems from more people chasing fewer homes. Interest rates remain near record-low levels, luring buyers. Investors with cash have poured into the market looking for cheap properties to flip or rent. And foreclosure resales have sunk to a five-year low, tightening the supply of cheap homes.

An estimated 21,075 newly built and previously owned houses and condominiums sold throughout the region last month. Coastal markets saw the biggest increases in sales — though every county posted double-digit gains compared with October last year. Orange County saw the biggest surge, with sales up 41%. Ventura rose 35%, San Diego, 31%, Los Angeles, 25%, San Bernardino, 18% and Riverside 13%.

Absentee buyers — investors and some second-home buyers — snapped up a near-record 28% of homes throughout the Southland last month. These investors paid a median $245,000, a 23% increase from October last year.

A recent report by real estate website Zillow showed that many investors and others are paying market value for foreclosed homes in the region, erasing the discount between foreclosed homes and regular properties. Discounts were marginal on bank-owned homes in September, with the discount in the Inland Empire just 2% and in the Los Angeles area 4% in September, Zillow said.

Bruce Norris, president of Norris Group, an investment company in Riverside that buys foreclosed homes, said he expects prices to increase in coming years as the Obama administration has encouraged banks to curtail foreclosures. That will push up prices, he said.

"It is policy driven," Norris said. "Since the policy is going to continue … you are about to see a pretty substantial price increase within the next two years."

Indeed, the high level of affordability ushered in by the housing crash could erode quickly in California. This week the California Assn. of Realtors reported that homes in the state are getting less affordable as property values rise. The group estimated that 49% of home buyers in the third quarter could afford a median-priced house in California, a decline from 51% last quarter. The rise in prices is offsetting the benefit to home shoppers from low mortgage interest rates.

Christopher Thornberg, a principal at Beacon Economics and one of the first to call attention to the housing bubble, said home shoppers should expect expensive housing in the Golden State for the foreseeable future. The reason: Construction of new homes remains highly expensive for builders.

"Why would it stop?" he said. "The economy is growing. Short of a fiscally led second recession, there is no reason in the world that it's going to do anything but to continue."

The region's lowest-cost areas — often those the most starved for inventory these days — posted the weakest sales numbers last month, according to DataQuick. The number of homes that sold below $200,000 in the region dropped 11% from October last year. Sales in these markets have slowed because of the drop in foreclosures, while increased demand has pushed up prices.

Sales of previously foreclosed-upon homes made up just 16% of the resale market last month, a drop from 17% last month and 33% in October 2011. Foreclosure resales peaked at 57% in February 2009.

In the meantime, sales surged in several mid- and higher-cost neighborhoods throughout Southern California in October, DataQuick said. Sales of homes between $300,000 and $800,000 increased 42% year over year. Sales of homes costing more than $500,000 were up 55% and sales of homes more than $800,000 rose 52%.

Bill McBride, lead writer for the housing blog Calculated Risk, said that with the upswing in prices homeowners are encouraged to keep their homes off the market.

"Why is there no inventory? I ask every real estate agent that, just to hear what they tell me. And they say people don't have enough equity in their homes and so they aren't listing them," McBride said. "That is a solid argument. But I also think the people are sensing that prices are going up and there is no urgency to sell."

alejandro.lazo@latimes.com

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'Shirtless' FBI Agent Who Hunted Petraeus Helped Stop LA Bombing

The FBI agent responsible for the downfall of two of the military’s most respected generals helped stop a terrorist from bombing Los Angeles International Airport and shot a man who attacked him with a knife at the gates of a military base. And he kicked off an investigation that not only upended Washington, it has many wondering if the FBI exceeded its authority.

Meet Frederick W. Humphries II — finally. Humphries, identified by The New York Times, is the mystery Florida-based FBI agent central to the ongoing scandal that brought down CIA Director David Petraeus and threatens the career of the Afghanistan war commander. At nearly every key moment in the tawdry sex scandal, Humphries has been there, lurking in the shadows, sometimes without his shirt on. No wonder colleagues interviewed by the Times described him as “obsessive.” Even before anyone knew who he was, someone set up a parody Twitter account for him, @shirtlessFBIguy.

In 1999, Humphries used his French language skills to find and stop Ahmed Ressam from bombing LAX airport in what would come to be known as the Millennium Plot, according to a Seattle Times piece. Described as “wiry [and] high-energy,” the former Army officer unraveled the cover story of a member of the Millennium Plot by calling bull on the operative’s fake Quebecois accent. Eleven years later, Humphries would shoot and kill a “disturbed knife-wielding man” who attacked him at the gates of MacDill Air Force Base in Tampa.

Humphries knew Tampa socialite Jill Kelley, an unofficial “ambassador” between Tampa and MacDill, home of U.S. Central Command, run in 2010 and 2011 by Petraeus and Gen. John Allen, now the commander of the Afghanistan war. When Kelley started receiving harassing e-mails this summer, Kelley asked her FBI friend Humphries to look into it. Humphries agreed, but soon found himself taken off the case, according to the Times. That would prove to be a fateful move.

The FBI has broad authorities over cyber-stalking investigations. “When something of this nature comes to our attention,” spokesman Paul Bresson tells Danger Room, “we work in close coordination with prosecutors to evaluate the facts and circumstances with respect to jurisdiction and potential violations of federal law.”

Not everyone is buying that the FBI would normally take up the case of a socialite receiving unwanted, nasty e-mails. “This is highly irregular. Highly, highly irregular. With a case of e-mail harassment, we’d normally say: we’re kind of busy, contact your local police,” a former federal prosecutor tells Danger Room. “You know that old cliche ‘let’s not make a federal case out of it?’ Well, in this case, it rings true.”

In any case, the feds did make a federal case out of it — just without Humphries. But Humphries didn’t let the case go. He sent shirtless pictures of himself to Kelley, something a lawyer for a law-enforcement guild who spoke with Humphries described to the Times as a “joke” that the national media have misunderstood. Still, his friends characterized him as “passionate” and “kind of an obsessive type.” It showed.

Humphries did not take kindly to being removed from a case he kickstarted. Evidently, he knew that the FBI expanded the case from cyber-harassment to one determining whether Paula Broadwell, Petraeus’ mistress who harassed Kelley, received classified information from Petraeus. Humphries was convinced there was a Bureau cover-up to protect Obama, and in late October went to Rep. Dave Reichert, a Washington state Republican with whom Reichert had worked previously. Reichert — who would not respond to Danger Room’s queries — took Humphries to Rep. Eric Cantor, the GOP majority leader, on October 27.

Cantor and his staff met with Humphries shortly after Reichert made the introduction. But they did not know what his motivations were. Nor could they judge Humphries’ credibility. Worse, they had no idea the FBI had Petraeus under investigation in the first place. After conferencing, they decided the prudent thing to do was to take the information from the investigation to FBI Director Robert Mueller’s office. They did so on October 31, around the same time that FBI agents interviewed Petraeus and reportedly told him he was not under suspicion of leaking classified information.

A week later, on November 6 — election day — Mueller informed James Clapper, the director of national intelligence and Petraeus’ boss, of the investigation. The House Judiciary Committee has written to Mueller to determine, among other things, why Mueller waited a week, and why he informed neither the relevant congressional oversight committees or the White House. (Mueller on Wednesday briefed the leaders of the House and Senate intelligence committees.) But Clapper essentially sealed Petraeus’ fate, urging him to deliver the resignation from the CIA that ultimately came on Friday.

There are questions about whether the FBI has exceeded its bounds in the case Humphries launched. While the FBI has wide latitude to investigate potential leaks of classified intelligence — the focus of the ongoing inquiry into Broadwell that brought Petraeus down — it is far less clear what authority the FBI had to give the Pentagon flirtatious emails between Allen and Kelley that came to agents’ attention in the course of that inquiry.

The Pentagon, whose inspector general is now investigating Allen, says there is no evidence Allen gave Kelley classified material or otherwise compromised national security. Under the Uniformed Code of Military Justice, adultery is a crime. But a Defense official on Tuesday told reporters that Allen denies cheating on his wife, and the emails contain some “flirtatious” exchanges between the two. Yet while the so-called “Plain Sight Doctrine” holds that investigators can pursue evidence of a crime that they encounter in an unrelated investigation, flirtation is not evidence of adultery.

While many of the facts of Allen’s case have yet to be determined, some legal experts wonder if the FBI was required to ignore the emails between Allen and Kelley.

“Whether the supposed basis for the investigation was cyber-harassment, disclosure of classified information, or the vulnerability of the CIA chief to blackmailing, it’s difficult to see how a military commander’s flirtatious emails are relevant,” says Rachel Levinson-Waldman, a lawyer who studies information sharing between national-security agencies at New York University’s Brennan Center for Justice. In such a case, the FBI is usually required to “minimize” — that is, ignore or destroy — information on unrelated parties that it inadvertently collected. In practice, though, Levinson-Waldman cautions, FBI officials have strong incentives to hold on to such material, for fear of jeopardizing potential future investigations.

The FBI, argues the Electronic Frontier Foundation’s Kurt Opsahl, appears to have engaged in “a series of stretches,” to get from investigating Broadwell to turning over Allen’s communications with Kelley to the Defense Department. “I don’t see how that email [traffic] is necessary or how there’s any kind of probable cause to believe there’s any link to the crimes the FBI was investigating,” Opsahl says.

In a statement released by his military lawyer late Wednesday, Allen vowed “to fully cooperate with the Inspector General Investigators” while his nomination to be NATO commander is officially on hold. There’s a possibility that Allen will be vindicated. But if he’s not, he has overzealous FBI investigators to thank — including Humphries, who started it all.

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NBC names new “Today” show chiefs

(Reuters) – Comcast‘s NBC has appointed two executives to take charge of the “Today” show, a day after the television network announced that longtime producer Jim Bell would be leaving to take a larger role in the sports division.

Don Nash, a broadcast producer who has worked on NBC’s morning show for 23 years, will become the executive producer, reporting to Alexandra Wallace, who has been named executive in charge of the show.

The reshuffling is part of NBC efforts to revive the “Today” show, which has been in a back-and-forth ratings war with ABC’s “Good Morning America” ever since ABC snapped NBC’s 16-year unbeaten streak earlier in the year.

“Today” is one of NBC’s most profitable TV shows, generating $ 485 million in ad revenues in 2011, up 6.6 percent from 2010, according to Kantar Media, which provides data to advertisers. Rival “Good Morning America” took in $ 299 million last year.

NBC said on Tuesday that former executive producer Bell would be leaving the morning show to become a full-time executive producer of the Olympics. The network has a contract to broadcast the Olympics in the United States for the next four games in Russia, Brazil, South Korea and an unnamed host city in 2020.

Bell, who has headed the show since 2005, was blamed this year for the controversial firing of Ann Curry as anchor alongside Matt Lauer.

Reuters had previously reported in August that Bell was in line for a kind of uber-producing sports role like the one Dick Ebersol – NBC’s longtime Olympics executive producer and former sports chief who served as a mentor to Bell – played for the network.

(Reporting By Liana B. Baker; Editing by Tim Dobbyn)

TV News Headlines – Yahoo! News

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F.D.A. Seeks More Control Over Drug Compounders

Susan Walsh/Associated Press

Barry Cadden, chief pharmacist for the company that made the contaminated drugs, at a Congressional hearing on Wednesday.

WASHINGTON — The commissioner of the Food and Drug Administration on Wednesday called on Congress to empower the agency to better police compounding pharmacies like the one at the center of a national meningitis outbreak. But Republican lawmakers pushed back, arguing that the agency has enough authority, leaving it unclear whether the House would support efforts to increase oversight.

In a contentious hearing of the House Committee on Energy and Commerce, the commissioner, Dr. Margaret Hamburg, testified that a tangle of conflicting court decisions and the lack of a clear definition of compounding in the law had limited the agency’s ability to build a case against compounding pharmacies that fail to meet basic safety standards.

“There is an enormous lack of clarity, and we should seize this opportunity to address it,” Dr. Hamburg said.

In many cases, such pharmacies are not required to give investigators access to their books, agency officials say. Federal regulators sometimes have to appeal to local courts to gain access to the pharmacies or their records, although, by law, large drug manufacturers must submit to regular inspections. Compounding pharmacies are now regulated primarily by the states.

Dr. Hamburg’s remarks signaled that the Obama administration will press for new legislation in response to the meningitis outbreak, which was caused by contaminated pain medication made by a compounding pharmacy in Massachusetts. So far, 461 people have fallen ill, and 32 of them have died.

The central question is whether the F.D.A. has enough power to crack down on large-scale compounding companies that behave more like drug manufactures than the neighborhood pharmacies that mix medicines for individual patients — the traditional purview of compounders.

Republicans on the committee said the outbreak appeared to have been preventable under existing regulations.  

“After a tragedy like this, the first question we all ask is, ‘Could this have been prevented?’ ” said Representative Cliff Stearns, Republican of Florida, who is chairman of the Subcommittee on Oversight and Investigations. After reviewing documents, he said, “The answer appears to be yes.”

The agency’s critics maintain that the 1938 Food Drug and Cosmetic Act provides it with plenty of authority, but that the F.D.A. failed to use it to shut down the Massachusetts pharmacy, the New England Compounding Center.  

Barry Cadden, the chief pharmacist at the company, and one of the principal owners, invoked his Fifth Amendment right to remain silent in response to every question posed to him during the hearing.

The agency has had dealings with the compounding center in the past, including an inspection in 2002 after reports of problems and a warning letter to the company in 2006. The agency argued that those steps failed to head off the meningitis outbreak in part because the company took advantage of gray areas in the law to elude oversight.

 “Throughout this time, N.E.C.C. has repeatedly disputed F.D.A.’s jurisdiction over its facility,” Dr. Hamburg said in her written testimony.

Republicans on the committee repeatedly cited the 2006 warning letter and the agency’s recent criminal investigation, which involved federal agents seizing computers from the company’s offices.

“We’re just not buying it, doctor,” said Representative Michael C. Burgess, Republican of Texas. “You lack the authority to do anything, yet you send a letter like this?”

Democrats came to Dr. Hamburg’s defense.

 “We need to work together to come up with a solution, but instead what I’m hearing from my Republican colleagues is they want to prosecute the Food and Drug Administration,” said Representative Henry A. Waxman, Democrat of California. “If there’s any ambiguity, it’s our job to clear it up. Why are we looking for anybody to blame other than the company?”

Representative Edward J. Markey, Democrat of Massachusetts, who has proposed legislation to close what he calls regulatory loopholes, said he believed the committee would eventually come together and pass a bill.

Dr. Hamburg proposed requiring large-scale compounders to register with the F.D.A. and report any problems with their products to the agency. She also recommended new labeling requirements that would make clear the origin and the risks of compounded drugs.

Large-scale pharmacy compounding has greatly expanded since the early 1990s, partly because hospitals are increasingly outsourcing the making of the compounded drugs that they need and also because of widespread shortages of medicines made by the big drug manufacturers.

Jess Bidgood contributed reporting from Boston.

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Hormone may help protect monogamous relationships

If retired Army Gen. David H. Petraeus had gotten an occasional dose of supplemental oxytocin, a brain chemical known to promote trust and bonding, he might still be director of the Central Intelligence Agency, new research suggests.

A study published Tuesday in the Journal of Neuroscience has uncovered a surprising new property of oxytocin, finding that when men in monogamous relationships got a sniff of the stuff, they subsequently put a little extra space between themselves and an attractive woman they'd just met.

Oxytocin didn't have the same effect on single heterosexual men, who comfortably parked themselves between 21 and 24 inches from the comely female stranger. The men who declared themselves in "stable, monogamous" relationships and got a dose of the hormone chose to stand, on average, about 6 1/2 inches farther away.

When researchers conducted the experiment with a placebo, they found no differences in the distance that attached and unattached men maintained from a woman they had just met.

Even when an attractive woman was portrayed only in a photograph, the monogamous men who received oxytocin put a bit more distance between themselves and her likeness. But when the new acquaintance was a man, administration of oxytocin did not prompt attached men to stand farther away than single men, the researchers reported.

The latest findings suggest that oxytocin, which floods the body in response to orgasm, early romance, breast-feeding and childbirth, may act more subtly in humans than has been widely understood.

A mounting body of recent research suggests that boosting oxytocin in the human brain will indiscriminately promote trusting, friendly behavior. Research on female prairie voles has suggested the chemical might play some role in pair-bonding, and in humans playing games of risk and power, it increased empathy and trust in males and females alike. Injected into the cerebrospinal fluid of male rats, oxytocin causes spontaneous erections.

Accordingly, researchers examining oxytocin's effects on people — including the authors of the latest study — assumed that men under its influence would draw closer to women, not farther away.

"This was quite surprising," said Dr. Rene Hurlemann, a psychiatrist at the University of Bonn in Germany, who led the study.

At the same time, the new findings make evolutionary sense, Hurlemann added: As human societies evolved to give men an increasing role in safeguarding and supporting their mates and offspring, it appears that oxytocin may have taken on a more discriminating role in human interaction by favoring staying over straying behavior among men who've already found a mate.

Paul Zak, founding director of Claremont Graduate University's Center for Neuroeconomics Studies, said the new findings squared nicely with research, including his own, suggesting oxytocin doesn't merely make people friendlier — it makes them more empathetic, more attuned to social cues, and more inclined to adjust their behavior accordingly.

But the study also suggests something important about the ways in which the human brain differs from those of other animals, said Zak, who was not involved in the German experiments.

"The finding that one's relationship status affects how oxytocin affects the brain provides some evidence that our brains evolved to form long-term romantic relationships," Zak said. "Hugh Hefner is the exception, not the role model for men."

Inhaled oxytocin was marketed until 1997 in the United States under the name Syntocinon as an aid to new mothers having difficulty with breast-feeding. (It was withdrawn for business reasons unrelated to safety concerns.) In recent years, it has been under investigation as a drug that may help those with autism or schizophrenia to strengthen social skills.

Oxytocin's effects in women are quite clear. It plays a pivotal role in childbirth (its infused synthetic form, called Pitocin, is used to induce labor) and in breast-feeding, where it facilitates the "letdown" of milk.

For men, however, the chemical's effects have been mysterious. High levels of testosterone, for instance, inhibit the release of oxytocin.

Asked whether an oxytocin nasal spray might be used to help philandering males resist temptation, Hurlemann chuckled and asked whether any drug could be so powerful. At the same time, he underscored that high levels of oxytocin — or its more masculine counterpart, the hormone vasopressin — are produced by the body in response to sexual activity, cuddling or even the touch or close physical presence of a mate.

"What we actually simulate is a kind of post-coital posture" with the nasal administration of oxytocin, Hurlemann said. "And why should you actually approach another women when you're in a post-coital situation? It doesn't make much sense."

For women whose partners seem to get a little too friendly with new female acquaintances at parties, he said, the effects of inhaled oxytocin might be achieved by other means.

"It might make a lot of sense to remind him of the relationship, and sexual activity might be one means of achieving this," Hurlemann said. "I'm not sure it's politically correct to say so, but from a biological point of view, it makes sense."

melissa.healy@latimes.com

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Deodorizing Underwear: Why Does Japan Get All the Cool Stuff?

Soon, silent but deadly will just be … silent. At least, that’s the promise a Japanese company is making about its line of deodorizing underwear, which has reportedly become a hit among Japanese businessmen.

Seiren, the company behind the Deoest underwear line, says it has been working on the garments for a few years. The deodorizing power comes from odor-absorbing ceramic particles that are incorporated into the fibers of the underwear. Though Sieren says the garments were originally developed for those suffering from irritable bowel syndrome, Deoest has quickly gained popularity among Japanese businessmen.

Following the success of the underwear, the company added an array of other odor-eliminating undergarments for other oft-smelly body parts, including socks and undershirts.

via PhysOrg

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Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is “relieved that this painful allegation has been put to rest.” He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces “Sesame Street” in New York, soon followed by saying, “We are happy that Kevin can move on from this unfortunate episode.”

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from “Sesame Street” in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop “to deal with this false and defamatory allegation.”

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of “Sesame Street.”

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, “My Life as a Furry Red Monster,” and he was the subject of the 2011 documentary “Being Elmo: A Puppeteer’s Journey.”

He has won 23 daytime Emmy awards and one prime-time Emmy.

___

Online:

http://www.sesamestreet.org

Entertainment News Headlines – Yahoo! News

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‘Dream Team’ of Behavioral Scientists Advised Obama Campaign

Chris Keane/Reuters

DOOR TO DOOR Ricky Hall, an Obama volunteer, in Charlotte, N.C., last week.

Late last year Matthew Barzun, an official with the Obama campaign, called Craig Fox, a psychologist in Los Angeles, and invited him to a political planning meeting in Chicago, according to two people who attended the session.

“He said, ‘Bring the whole group; let’s hear what you have to say,’ ” recalled Dr. Fox, a behavioral economist at the University of California, Los Angeles.

So began an effort by a team of social scientists to help their favored candidate in the 2012 presidential election. Some members of the team had consulted with the Obama campaign in the 2008 cycle, but the meeting in January signaled a different direction.

“The culture of the campaign had changed,” Dr. Fox said. “Before then I felt like we had to sell ourselves; this time there was a real hunger for our ideas.”

This election season the Obama campaign won a reputation for drawing on the tools of social science. The book “The Victory Lab,” by Sasha Issenberg, and news reports have portrayed an operation that ran its own experiment and, among other efforts, consulted with the Analyst Institute, a Washington voter research group established in 2007 by union officials and their allies to help Democratic candidates.

Less well known is that the Obama campaign also had a panel of unpaid academic advisers. The group — which calls itself the “consortium of behavioral scientists,” or COBS — provided ideas on how to counter false rumors, like one that President Obama is a Muslim. It suggested how to characterize the Republican opponent, Mitt Romney, in advertisements. It also delivered research-based advice on how to mobilize voters.

“In the way it used research, this was a campaign like no other,” said Todd Rogers, a psychologist at Harvard’s Kennedy School of Government and a former director of the Analyst Institute. “It’s a big change for a culture that historically has relied on consultants, experts and gurulike intuition.”

When asked about the outside psychologists, the Obama campaign would neither confirm nor deny a relationship with them. “This campaign was built on the energy, enthusiasm and ingenuity of thousands of grass-roots supporters and our staff in the states and in Chicago,” said Adam Fetcher, a campaign spokesman. “Throughout the campaign we saw an outpouring of individuals across the country who lent a wide variety of ideas and input to our efforts to get the president re-elected.”

For their part, consortium members said they did nothing more than pass on research-based ideas, in e-mails and conference calls. They said they could talk only in general terms about the research, because they had signed nondisclosure agreements with the campaign.

In addition to Dr. Fox, the consortium included Susan T. Fiske of Princeton University; Samuel L. Popkin of the University of California, San Diego; Robert Cialdini, a professor emeritus at Arizona State University; Richard H. Thaler, a professor of behavioral science and economics at the University of Chicago’s business school; and Michael Morris, a psychologist at Columbia.

“A kind of dream team, in my opinion,” Dr. Fox said.

He said that the ideas the team proposed were “little things that can make a difference” in people’s behavior.

For example, Dr. Fiske’s research has shown that when deciding on a candidate, people generally focus on two elements: competence and warmth. “A candidate wants to make sure to score high on both dimensions,” Dr. Fiske said in an interview. “You can’t just run on the idea that everyone wants to have a beer with you; some people care a whole lot about competence.”

Mr. Romney was recognized as a competent businessman, polling found. But he was often portrayed in opposition ads as distant, unable to relate to the problems of ordinary people.

When it comes to countering rumors, psychologists have found that the best strategy is not to deny the charge (“I am not a flip-flopper”) but to affirm a competing notion. “The denial works in the short term; but in the long term people remember only the association, like ‘Obama and Muslim,’ ” said Dr. Fox, of the persistent false rumor.

The president’s team affirmed that he is a Christian.

At least some of the consortium’s proposals seemed to have found their way into daily operations. Campaign volunteers who knocked on doors last week in swing states like Pennsylvania, Ohio and Nevada did not merely remind people to vote and arrange for rides to the polls. Rather, they worked from a script, using subtle motivational techniques that research has shown can prompt people to take action.

“We used the scripts more as a guide,” said Sarah Weinstein, 18, a Columbia freshman who traveled with a group to Cleveland the weekend before the election. “The actual language we used was invested in the individual person.”

This article has been revised to reflect the following correction:

Correction: November 14, 2012

An article on Tuesday about the role of social scientists in President Obama’s re-election campaign omitted a word from the title of the book by Sasha Issenberg that examines data-driven campaign strategies. The book is “The Victory Lab,”  not “Victory Lab.”

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At Microsoft, Sinofsky Seen as Smart but Abrasive

On a warm night in late October, Steven Sinofsky stood on a platform in New York’s Times Square, smiling as a huge crowd roared at the unveiling of a Microsoft retail store, where Windows 8 and the company’s new Surface tablet were about to go on sale.

Less than three weeks later, Mr. Sinofsky — who, as the head of Windows, was arguably the second-most important leader at Microsoft — suddenly left the company. His abrasive style was a source of discord within Microsoft, and he and Steven A. Ballmer, Microsoft’s chief executive, agreed that it was time for him to leave, according to a person briefed on the situation who was not authorized to speak publicly about it.

Mr. Sinofsky was widely admired for his effectiveness in running one of the biggest and most important software development organizations on the planet. But his departure, which Microsoft announced late on Monday, parallels in many respects that of Scott Forstall, the headstrong former head of Apple’s mobile software development, who was fired by Apple’s chief executive, Timothy D. Cook, in late October.

Both cases underscore a quandary that chief executives sometimes face: when do the costs of keeping brilliant leaders who cannot seem to get along with others outweigh the benefits?

The tipping point that led to Mr. Sinofsky’s departure came after an accumulation of run-ins with Mr. Ballmer and other company leaders, rather than a single incident, according to interviews with several current and former Microsoft executives who declined to be named discussing internal matters.

One example of the kind of behavior that hurt Mr. Sinofsky’s standing at the company occurred this year at a two-day retreat for Microsoft’s senior executives at the Semiahmoo resort on the coast just below the Canadian border in Washington State. At the meeting, Microsoft’s various division heads were expected to make presentations on their businesses, answer questions and remain to hear their peers repeat the exercise.

When Mr. Sinofsky stood on the first day to speak about the Windows division, he told the group he had not prepared a presentation, and if they wanted to catch up on the progress of Windows 8, they could read his company blog, where he publicly chronicled the software’s development. He answered questions from the audience and then left the resort, while his colleagues remained until the next day, according to multiple people who were present.

Mr. Sinofsky’s early exit and halfhearted presentation were widely noted by his colleagues, irking even his admirers in the company. “He lost a lot of support,” one attendee said.

It wasn’t until this Monday, though, that Mr. Sinofsky and Mr. Ballmer both decided it would be best if Mr. Sinofsky left. Bill Gates, Microsoft’s chairman, supported the move, a person briefed on the matter said. Mr. Sinofsky served as a technical assistant to Mr. Gates in the 1990s.

In an e-mail to Microsoft employees, Mr. Sinofsky said the decision to leave “was a personal and private choice.” Many surprised Microsoft insiders noted that Mr. Sinofsky’s departure was immediate, an unusual arrangement for someone with a 23-year track record at the company. A Microsoft spokesman, Frank Shaw, said Mr. Sinofsky was not available to comment.

Although Mr. Ballmer grew increasingly impatient with Mr. Sinofsky throughout the year, he held back from taking any action earlier to avoid disrupting the release of Windows 8, the most important product Microsoft has unveiled in years, a person with knowledge of his thinking said.

The final decision could not have come lightly. Although many people at Microsoft viewed him as a ruthless corporate schemer, Mr. Sinofsky ran the highly complex organization responsible for Windows as a disciplined army that met deadlines, and he was respected by people on his team.

He achieved hero status within Microsoft several years ago by taking over the leadership of Windows after the debacle that was Windows Vista, a much-delayed operating system whose sluggish performance and technical problems worsened Microsoft’s reputation for mediocre software. Mr. Sinfosky led the development of a new version of the operating system, Windows 7, which was positively reviewed and sold well.

“He did great things with Windows,” said Michael Cusumano, a professor at the Sloan School of Management at the Massachusetts Institute of Technology. “That’s still the core of the company.”

But while Mr. Sinofsky was effective, Mr. Cusumano said, he could be secretive and difficult to get along with, as he learned while dealing with Mr. Sinofsky while Mr. Cusumano was writing a book on Microsoft in the early 1990s. “I could imagine that he burned a lot of bridges and created a bunch of enemies,” he said.

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