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Court to decide on child porn victim restitution

Written By Unknown on Senin, 20 Januari 2014 | 23.17

WASHINGTON — A woman whose childhood rapes by her uncle were captured on camera and widely traded on the Internet wants the Supreme Court to make it easier for victims of child pornography to collect money from people who view the brutal images on their computers.

The case being argued at the Supreme Court on Wednesday involves a Texas man who pleaded guilty to having images of children engaged in sex acts on his computer. Doyle Randall Paroline is appealing an order holding him responsible for the full amount of losses, nearly $3.4 million, suffered by the woman known as Amy. Of the several hundred incriminating images on Paroline's computer, just two were of Amy.

Advocates for child pornography victims say that holding defendants liable for the entire amount of losses better reflects the ongoing harm that victims suffer each time someone views the images online. The threat of a large financial judgment, coupled with a prison term, also might deter some people from looking at the images in the first place, the advocates say.

"The threat that a person in the child pornography market may well bear the entire cost of the harm done to the victim, even if they are a 'minor player,' is likely to be a large deterrent, especially when the harm done typically runs into the millions for a victim's lifetime of care," said Marci Hamilton, a law professor at Yeshiva University. Hamilton wrote a brief in the case on behalf of the American Professional Society on the Abuse of Children.

The money is intended to cover the cost of her psychological care, lost income and attorneys' fees.

Thirty-four states, dozens of victims' rights and child advocacy groups, local prosecutors and members of Congress are urging the court to uphold the ruling against Paroline by the New Orleans-based 5th U.S. Circuit Court of Appeals.

No one has intervened on Paroline's behalf. But his lawyer, Stanley Schneider of Houston, said in court papers that there is no link between the restitution ordered by the appeals court and Paroline's conduct.

"An award of $3.4 million against an individual for possessing two images of child pornography is punitive and grossly disproportionate," Schneider said. The $3.4 million estimate on the damages to the victim was calculated by a psychologist working for James Marsh, an attorney for Amy.

The Obama administration is trying to steer a middle course. Solicitor General Donald Verrilli Jr. said the government agrees with Amy that her injury comes from the widespread viewing on the Internet of the assaults by her uncle.

"The real question is whether ... a court must impose all of Amy's aggregate losses on each defendant. On that issue, Amy and the government take different views," Verrilli told the court.

The administration said the correct answer is greater than zero and less than the entire amount and said trial judges should make the determination.

The issue centers on the interpretation of the federal law granting restitution to victims of sex crimes, including child pornography.

Regardless of the outcome of the court case, Congress could change the law. The U.S. Sentencing Commission recommended that lawmakers consider doing just that to eliminate confusion among federal judges about the right way to calculate restitution.

Amy's lawyers estimate that tens of thousands of people worldwide have collected and viewed Amy's images.

Since 2005, there have been about 2,000 prosecutions in federal court that, like Paroline's, included images of the rapes, for which Amy's uncle spent about 10 years in prison and paid a few thousand dollars for counseling sessions for Amy.

Marsh devised the idea of pursuing the people who were convicted of possessing Amy's images, among other child pornography. He identified a provision of the 1994 Violence Against Women Act directing judges to order defendants to pay victims the "full amount" of their losses.

The psychologist employed by Marsh to tally the losses began filing claims on Amy's behalf after she received notices from the Justice Department, under a separate law passed in 2004, telling her of people who had been arrested with her images on their computers.

Courts so far have awarded restitution in 182 cases and Amy has collected $1.6 million. Of that total, $1.2 million came from one man.

Typically, the court-ordered awards and the amounts collected have been much smaller, as little as $50 in one case, according to Justice Department records. Many judges have ordered no payments at all, Marsh said.

The restitution law does not allow Amy to receive more than the lifetime estimate of her losses, Marsh said. But until the 5th Circuit ruling, Marsh said, "She has been forced to go around the country endlessly seeking out defendants with assets. It's endless, and it takes a toll on the victim."

If upheld, the ruling would change the equation. Courts would not have to determine exactly how much harm any one defendant caused Amy. Instead, all defendants would be liable for the entire outstanding amount, raising the possibility that a few well-heeled people among those convicted might contribute most, if not all, of the remaining restitution.

Marsh said such an outcome would be just, and wealthy defendants could fight among themselves about who should pay what. "It's really about shifting the burden from the innocent victim to the people who are responsible," Marsh said.

The case is Paroline v. Amy Unknown and U.S., 12-8561.


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Deutsche Bank shares drop on unexpected loss

FRANKFURT, Germany — Shares of Deutsche Bank AG fell sharply on Monday after Germany's biggest lender announced an unexpected fourth-quarter loss largely due to weak investment banking results and the cost of strengthening its finances.

Deutsche Bank, which warned the headwinds will continue this year, saw its stock slump 3.9 percent in early trading to 37.80 euros, making it the worst performer on Frankfurt's DAX index.

The bank on Sunday night posted a fourth-quarter net loss of 965 million euros ($1.3 billion), an announcement that came 10 days before it was scheduled to release its results. Analysts were expecting a profit of about 200 million euros. Revenues also disappointed, falling 16 percent to 6.6 billion euros.

The losses showed how the bank is still struggling to overcome previous legal entanglements and deal with new regulatory demands in an uncertain European economy.

Much of the decline in revenues in the fourth quarter came from the investment banking division, which suffered a steep fall in income from trading debt securities.

The bank has also faced a steady drag on earnings from expenses for litigation and legal settlements resulting from investigations of alleged past abuses. They totaled 528 million euros in the fourth quarter.

The bank suffered 1.1 billion euros in losses on risky investments it has set aside for disposal as it — along with other banks — faces demands from regulators to strengthen its finances in response to the market turbulence of recent years.

Market strategist Ishaq Siddiqi at ETX Capital called the results a "nasty set of numbers which have geared investors here in Europe for what could be an ugly earnings season for European banks."

Co-CEO Anshu Jain said on a conference call with analysts that the bank was dealing well with factors that its management could control, such as reducing costs.

He said that excluding one-time expenses and the unit disposing of risky assets, the bank's core operations earned 8.4 billion euros in 2013. That was up from 7.6 billion euros the year before and comparable with earnings before the financial crisis hit in earnest in 2008.

However, he warned that the outside factors — pending litigation, regulatory demands and tough markets — "will remain challenging in 2014."


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German auto club under pressure in vote scandal

BERLIN — Germany's main automobile club apologized on Monday and conceded that its image as a trusted institution has taken a knock after a top official admitted to manipulating the figures in a poll on the nation's favorite car.

ADAC says it is Europe's biggest auto club with more than 18 million members, offering breakdown help, safety tests and many other services to a nation of car enthusiasts.

Last week, it angrily denied a report in the Sueddeutsche Zeitung newspaper that voting in a poll of readers of its monthly magazine on Germany's favorite car was tampered with — before announcing over the weekend that communications chief Michael Ramstetter had admitted to the manipulation and quit.

It said the number of votes submitted was inflated, but the ranking itself wasn't changed. German automaker Volkswagen's Golf was the winner of the most recent vote.

Ramstetter "made a full confession to having, in an incredibly brazen way, manipulated upward the number of votes ... this year and, he says, in recent years too," ADAC general manager Karl Obermair said at a televised news conference in Munich. Obermair said the official took "sole and full responsibility" for what happened, but didn't say what Ramstetter's motive was.

ADAC did not specify how inflated the numbers were, but the Sueddeutsche Zeitung said they were exaggerated by ten times.

"We are sorry for this incident; it shakes the ADAC the core because we were viewed as one of the most trustworthy and serious organizations in Germany," Obermair said. "This reputation is certainly tarnished."

He pledged a full investigation, with help from outside experts.

Obermair's apology and pledge came amid mounting pressure, including from government officials. The Justice Ministry, which is also responsible for consumer protection, pressed it to clear up the matter.

"Anyone whose evaluations have an influence on people's buying habits has a special responsibility to consumers," Justice Minister Heiko Maas said, adding that ADAC "must now do justice to its responsibility."

Mechthild Heil, the consumer affairs spokeswoman in parliament for Chancellor Angela Merkel's conservatives, said the affair raised questions as to whether ADAC "doesn't also tamper with statistics in other areas in its own interest." She called for a restructuring of the club to avoid conflicts of interest.


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Japan defends dolphin hunt after US criticism

TOKYO — A Japanese government spokesman defended an annual dolphin hunt Monday, after U.S. Ambassador Caroline Kennedy tweeted that she was deeply concerned by the inhumanity of the practice.

Chief Cabinet Secretary Yoshihide Suga told a news conference that dolphin fishing in Japan is carried out appropriately in accordance with the law.

"Dolphin fishing is a form of traditional fishing in our country," he said, responding to a question about Kennedy's criticism. "We will explain Japan's position to the American side."

Kennedy tweeted on Saturday, "Deeply concerned by inhumaneness of drive hunt dolphin killing." She added that the U.S. government opposes such fishing.

Drive hunt refers to the practice of herding the dolphins into a cove, where they are trapped and later killed.

The hunt in the fishing village of Taiji in western Japan has come under international criticism and was the subject of the Academy Award-winning 2009 film "The Cove."

The fishermen in Taiji say the hunt is part of their village tradition and call foreign critics who eat other kinds of meat hypocritical.


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China's economy grows 7.7 percent in 2013

BEIJING — China's economic growth decelerated in the final quarter of 2013 and appears set to slow further, adding to pressure on its leaders to shore up an expansion as they try to implement sweeping reforms.

The world's second-largest economy grew by 7.7 percent over a year earlier, down from previous quarter's 7.8 percent, data showed Monday. Growth for the full year was 7.7 percent, tying 2012 for the weakest annual performance since 1999.

Those figures appeared to mask a much sharper deterioration during the three months ending in December. Factory output, exports and investment all weakened. On a quarter-to-quarter basis, economic growth dropped to 1.8 percent from the previous period's 2.2 percent.

"The economy is slowing quite rapidly. The slowdown has accelerated during the quarter," said economist Dariusz Kowalczyk of Credit Agricole CIB.

That weakness might force Beijing to resort to state-led investment to support an expansion. That would boost debt levels that already have prompted unease about the health of China's financial system and could hamper efforts to shift to more self-sustaining growth based on domestic consumption.

China's growth still is far stronger than the United States, Japan or Europe. But an unexpectedly abrupt decline from the blistering double-digit rates of the previous decade has raised the risk of politically dangerous job losses and increases the challenges faced by the ruling Communist Party as it tries to rebalance the economy away from reliance on trade and investment.

"A long-term accumulation of problems has yet to ease and the foundation for economic stabilization and recovery is still consolidating," said the commissioner of the government statistics bureau, Ma Jiantang, at a news conference.

A plunge in global demand for Chinese exports prompted Beijing to launch a mini-stimulus in mid-2013 based on higher spending on railway construction and other public works. Growth accelerated from 7.5 percent in the three months ending in June to 7.8 percent the next quarter but settled back as the effect of Beijing's spending faded.

Since then, Chinese leaders have said there is little that additional stimulus can do to spur growth and improvements will have to come from longer-term reforms.

The International Monetary Fund has forecast this year's growth at 7.6 percent but private sector forecasts are as low as 7.2 percent. That would be China's weakest performance since 1990, when the economy grew by just 3.8 percent.

A development blueprint issued by the party leadership in November promises to open state-dominated industries wider to private and foreign competition and to give entrepreneurs who generate most of China's growth and jobs a bigger economic role. However, it stressed that state ownership would remain a pillar of the economy.

The plan promises to allow foreign companies into industries such as e-commerce, accounting and logistics and to give Chinese entrepreneurs more opportunities. Regulators announced this month they will allow the creation of five privately financed banks this year. But such changes could take years to show an impact on China's economic output.

More reliance on investment financed by government borrowing might add to strains on a financial system some analysts say could already be carrying dangerously high debt levels.

Heavy spending by Chinese cities and other local governments as part of Beijing's stimulus in response to the 2008 global crisis and on social programs since then left them heavily indebted. An official audit released at the end of December showed the amount owed by cities and other local governments soared 70 percent over the past three years to 17.7 trillion yuan ($2.9 trillion) as of mid-2013.

The central bank has said the debt level is manageable but private sector analysts warn the rapid pace of increase is dangerous.

Growth for 2013 came in above the government's 7.5 percent official target but data showed many areas of the economy slowing toward the end of the year.

Growth in factory output slowed to 9.7 percent in December from 10.3 percent in October, the first month of the quarter. Investment in factories, real estate and other fixed assets decelerated to 17.1 percent from 19.4 percent over the same period.

Growth in retail sales was steady but full-year retail sales growth of 13.1 percent was well below the 19.6 percent growth of investment, highlighting China's reliance on spending on factories, highways and other assets.

"There is no rebalancing yet. Basically investment continues to be the key driver," said Kowalczyk.

Analysts also noted that household income growth, though relatively strong at 9.7 percent last year, was lower than in previous years. That, coupled with an impending contraction of China's workforce as the population ages, will hamper efforts to promote consumer spending.

"We estimate that the share of household consumption in GDP fell again in 2013," said RBS economist Louis Kuijs in a report.

___

National Bureau of Statistics of China: www.stats.gov.cn


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Hyundai to sponsor Tate Modern exhibitions

LONDON — Autos will help fund art in a long-term sponsorship deal announced Monday between Hyundai Motor Co. and Britain's Tate Modern gallery.

Tate director Nicholas Serota said the South Korean carmaker would fund commissions for the gallery's Turbine Hall — "the symbolic heart of the building" — until 2025. The first exhibition will open next year.

Hyundai Vice-Chairman Euisun Chung said the deal was an "inspiring collaboration bringing together two different industries — art and cars."

Neither side disclosed the value of the deal, which succeeds a sponsorship arrangement between Tate and Unilever PLC.

Britain's most popular art gallery, Tate Modern opened in 2000 inside a disused power station and now attracts more than 5 million visitors a year, anchoring a revitalized cultural quarter on the south bank of the River Thames in London.

Its centerpiece is a vast 500-foot by 115-foot (150-meter by 34-meter) hall that once held machinery, which has been the site of installations by artists including Louise Bourgeois, Olafur Eliasson and Ai Weiwei.

Serota said Hyundai had also given the gallery funds to buy nine works by Korean avant-garde artist Nam June Paik.

He said the deal was symbolic of Tate's expanding international reach. It operates four galleries in Britain and has partnerships with institutions around the globe.

Tate Modern is currently building an extension that will open in 2016, linked to the existing building by a bridge over the Turbine Hall.

British Culture Secretary Maria Miller said Tate had become "one of the best-loved brands in the world."

"Little wonder that commercial organizations want to be associated with such success," she said.

Serota said Hyundai's corporate partnership would help Tate open "a new chapter" but wouldn't influence its artistic priorities.

"There is no sense in which any of the exhibitions at the Tate have ever been determined by the sponsorship," he said.

___

Online: http://www.tate.org.uk/


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Poland considering air transport holding company

WARSAW,Poland — The Polish government is considering creating a holding company that will own the troubled state-run LOT airline, the short-range carrier Eurolot, ground services and an airport.

Treasury Minister Wlodzimierz Karpinski told Polish agency PAP on Monday that the new company could be listed on Warsaw's stock exchange.

He said the plan under consideration was inspired by the success of a similar one by the Czech Republic.

Karpinski said the move is not intended to sort out the financial problems of LOT, which is restructuring.

LOT closed 2013 with a loss of some 20 million zlotys ($5 million). The European Commission is reviewing the restructuring plan to decide whether to allow some 100 million euros of government aid the airline received in 2012.

LOT is almost 93 percent state-owned.


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East Timor, Australia argue over oil treaty deal

THE HAGUE, Netherlands — East Timor asked the United Nations' highest court Monday to order Australia to turn over documents and data its agents seized from the impoverished nation's lawyer last month ahead of arbitration in a multibillion-dollar treaty dispute.

The International Court of Justice opened three days of hearings into East Timor's request for the U.N. panel to order Australia to immediately turn over the seized documents pending the outcome of a case challenging the legality of Australia's raid on the lawyer's office in Canberra.

Monday's hearing was the latest step in a high-stakes legal battle pitting resource-rich Australia against its tiny and impoverished northern neighbor over the oil and gas under the sea that divides them.

East Timor lawyer Elihu Lauterpacht urged judges to deliver "a clear, firm and severe condemnation of what Australia has done" and order Canberra to seal all the documents and data and turn them over to the court.

Australian Security Intelligence Organization agents last month raided the Canberra homes of lawyer Bernard Collaery and a former spy who intended to testify in hearings at the Permanent Court of Arbitration that Australia allegedly bugged the East Timorese Cabinet ahead of sensitive oil-and-gas revenue-sharing negotiations.

East Timorese Minister of State Agio Pereira said the Australian agents also seized the spy's passport, preventing him from traveling to The Hague to testify in the arbitration case. The spy cannot be identified for legal reasons.

Pereira said the documents relate to East Timor's challenge to the validity of a bilateral treaty struck with Australia in 2006 over sharing seabed oil and gas reserves worth billions of dollars.

East Timor argues that the 2006 treaty is invalid because Australia had illegally bugged government offices and listened to confidential discussions relating to the negotiations.

"It is simply unconscionable that one party to negotiations or litigation should be able to place itself by these means in such a position of advantage over the other," Lauterpacht told the court Monday.

Australian Attorney General George Brandis, who authorized the ASIO raids, would not comment on the case Monday because the dispute was before the court. Australia is presenting its case Tuesday.

Brandis had previously said he told ASIO that none of the seized information was to be shared with lawyers representing Australia in The Hague.

Australia negotiated the treaty after East Timor, an impoverished half-island nation, broke away from Indonesia in 1999. Indonesia had previously struck a similar agreement to share the seabed.

Rulings by the International Court of Justice are final and legally binding.

____

McGuirk reported from Canberra.


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UN: more than 200 million jobless last year

GENEVA — The United Nations' labor agency says the number of unemployed people around the world rose above 200 million last year as job opportunities failed to grow at the same pace as the global workforce.

The International Labor Organization said Monday that an estimated 201.8 million people were unemployed in 2013. That's 4.9 million more than the previous year.

An annual ILO report points to an uneven global economic recovery and says East and South Asia together accounted for more than 45 percent of last year's increase.

The agency puts last year's global unemployment rate at 6 percent, unchanged from 2012. It says it expects little improvement this year, projecting that the jobless rate will edge up to 6.1 percent and the number of unemployed will rise another 4.2 million.


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SKorea credit card data theft highlights lapses

SEOUL, South Korea — A massive theft of customer data from three major credit card firms in South Korea has shown security lapses in the financial industry.

First revealed by prosecutors, the theft of information linked to 80 million credit cards such as salaries, monthly card usage, credit rating and card numbers has sparked widespread public concern. Cardholders are flocking to bank branches and overloading call centers and service websites to find out if their information was stolen.

Local media said the theft may have affected most credit card holders in a country of 50 million people. Prosecutors and the financial regulator said no financial losses have been reported.

Financial Services Commission Chairman Shin Je-yoon said in a statement Monday that the credit card companies had failed to ensure adequate security.

The chief financial regulator urged the companies to be vigilant about data theft not only by hackers but also by employees and contractors. South Korean financial firms, media companies and governments have fallen victim to cyberattacks in the past with local authorities blaming North Korea as a culprit in some cases.

But the latest data breach exposed how confidential customer data was poorly managed by financial firms.

Prosecutors said last week that an employee of Korea Credit Bureau, a contractor, stole the data beginning 2012 by copying data to a USB device.

Prosecutors said the worker, who was responsible for the development of new software to detect credit card fraud, sold the data to a loans company.

The stolen data from Lotte Card and the credit card units of KB Financial Group and NongHyup Bank was unencrypted, according to Cho Sung-mok, a director at the Financial Supervisory Service.

He said the companies were unaware of the theft until prosecutors began an investigation.

NongHyup Bank's card division did not notice the data breach for more than a year while KB was unaware for over six months.

Chiefs at credit card firms apologized and authorities have vowed to beef up security measures.


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