10/05/2012

Lawyer: Whistleblower collects $2M reward from IRS

By Reuters

WASHINGTON - A tax whistleblower received a $2 million reward from the Internal Revenue Service for his role uncovering an alleged multimillion-dollar tax-avoidance scheme attempted by Illinois Tool Works Inc in the late 1990s, the whistleblower's lawyer said on Thursday.

The informant, a Wall Street banker who remained anonymous to protect his career, previously received two other million-dollar payouts from the IRS, said his attorney, Erika Kelton, with Phillips & Cohen in Washington.

His reward last week could have been larger if his claims were brought forward under newer IRS whistleblower rules revamped in 2006, she said.

Informants to the IRS only receive rewards after taxes are collected, based on the information they provide. This whistleblower filed his claim with the IRS in 2001.

It was unclear how much Illinois Tool Works paid the IRS in taxes based on the whistleblower's tips. In a news release, Kelton estimated the company could have paid $383 million to the IRS, based on tax liabilities in U.S. Securities and Exchange Commission filings.

1995 transaction
Alison Donnelly, an Illinois Tool Works spokeswoman, said in response to the news release that it appeared to refer to a 1995 transaction that a former ITW business segment engaged in with an investment bank.

"As part of the IRS's normal audits of ITW's tax returns, the tax treatment of this transaction was fully resolved without penalty with the IRS in 2009, and resulted in no significant financial impact to ITW," she said in an emailed statement.

Illinois Tool Works, based in the Chicago suburb of Glenview, makes a variety of items, including restaurant supplies, construction products, electronic components, auto parts and industrial packaging.

An IRS spokesman said the agency could not comment due to taxpayer privacy laws.

The agency paid $8 million in whistleblower awards in fiscal year 2011 and collected $48 million in taxes from their tips, according to IRS figures.

Whistleblower Bradley Birkenfeld, who received a record-setting IRS award of $104 million that was paid in September, has prompted a rush of would-be imitators hoping to reap big payouts for exposing tax cheats, whistleblower lawyers have said.

Attorneys for jailed former Swiss banker Bradley Birkenfeld announced that the IRS will pay him $104 million as a whistleblower reward for information he turned over to the U.S. government. NBC's Lisa Myers reports.

Birkenfeld's tips led Swiss bank UBS AG to settle with U.S. regulators in 2009 for $780 million in fines, penalties, interest and restitution.

Following Birkenfeld's award announcement, "there's a renewed confidence among whistleblowers" in the IRS, Kelton said. "The inquiries to our firm from potential tax whistleblowers has again picked up," she said.

Imprisoned whistleblower Bradley Birkenfeld was awarded $104 million by the IRS for providing insider information about UBS' illegal promotion of secret offshore accounts for U.S. taxpayers. CNBC's Jackie DeAngelis reports.

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10/04/2012

Napolitano to visit slain agent's family

Customs and Border Protection agent Nicholas Ivie was killed Tuesday near Naco, Arizona.
Customs and Border Protection agent Nicholas Ivie was killed Tuesday near Naco, Arizona.
  • NEW: Napolitano will go to Arizona to talk with fellow officials about the investigation
  • 2 men are being questioned, a source in Mexico's attorney general's office says
  • They were detained near the U.S. border with drugs and guns, says the source
  • They are being questioned about the fatal shooting of a U.S. Border Patrol agent

(CNN) -- The head of Homeland Security travels to Arizona Friday, a day after Mexican authorities questioned two men in a shooting that killed a U.S. Border Patrol agent and wounded another near the U.S.-Mexican border.

The Mexican army handed the two over to local authorities in Sonora, having detained them near the American border, the Mexican attorney general's office said Thursday. The two were in possession of drugs and guns when they were detained, added the source.

Local authorities are investigating if the pair had anything to do with Tuesday's shooting near Naco, Arizona, where Border Patrol agents came under fire after responding to a sensor that had gone off nearby.

U.S. authorities have identified the agent killed as 30-year-old Nicholas Ivie. The Provo, Utah, native, who joined the Border Patrol in January 2008, is survived by his wife and two young children.

Homeland Security Secretary Janet Napolitano and other federal officials will meet with Ivie's family "to express their condolences," said department spokesman Matt Chandler.

Ivie is the 14th agent killed in the line of duty since 2008, including three this year.

He was killed near a border station recently named for Brian Terry, whose 2010 death led to the public disclosure of the botched Fast and Furious gun-smuggling sting, according to Sen. Chuck Grassley of Iowa.

What was 'Fast and Furious'?

The agent who was wounded has not been identified. After the shooting, he was airlifted to a hospital with non-life-threatening injuries.

He was released from the hospital Wednesday, said Jeremy Copeland, an agent with the Tucson Sector of U.S. Border Patrol.

"Napolitano (and the others) will also meet with federal, state and local law enforcement officials at the Brian A. Terry Border Patrol Station in Bisbee, Arizona, regarding the ongoing investigation," Chandler said in a statement.

In addition to Mexican authorities, the FBI is conducting a joint investigation with the Cochise County Sheriff's Office. James Turgal, special agent in charge of the FBI's Phoenix division, has declined to say if the Border Patrol agents involved in the incident returned fire.

As of Wednesday, investigators had not found the weapon used in the shooting, a U.S. law enforcement official said.

Lanny Breuer, assistant attorney general for the Criminal Division of the Justice Department, said earlier this week that investigators were at the scene.

"Every time that a law enforcement person is either killed or shot or injured in the line of duty, we have to take a moment and think of our families and think of the heroes involved," Breuer said.

Seven bodies found in western Mexico

CNN's Eduardo Aragon contributed to this report.

2 questioned over border agents' killing

Customs and Border Protection agent Nicholas Ivie was killed Tuesday near Naco, Arizona.
Customs and Border Protection agent Nicholas Ivie was killed Tuesday near Naco, Arizona.
  • NEW: Napolitano will go to Arizona to talk with fellow officials about the investigation
  • 2 men are being questioned, a source in Mexico's attorney general's office says
  • They were detained near the U.S. border with drugs and guns, says the source
  • They are being questioned about the fatal shooting of a U.S. Border Patrol agent

(CNN) -- Two men were being questioned Thursday by Mexican authorities about a shooting that killed a U.S. Border Patrol agent and wounded another near the U.S.-Mexican border in Arizona, a source in the Mexican attorney general's office said.

The Mexican army handed over to local authorities in Sonora two men they had detained near the American border, the source in the federal department said Thursday. The two were in possession of drugs and guns when they were detained, added the source.

Local authorities are investigating if the pair had anything to do with Tuesday's shooting near Naco, Arizona, where Border Patrol agents came under fire after responding to a sensor that had gone off nearby.

U.S. authorities have identified the agent killed as 30-year-old Nicholas Ivie. The Provo, Utah, native, who joined the Border Patrol in January 2008, is survived by his wife and two young children.

Ivie is the 14th agent killed in the line of duty since 2008, including three this year.

He was killed near a border station recently named for Brian Terry, whose 2010 death led to the public disclosure of the botched Fast and Furious gun-smuggling sting, according to Sen. Chuck Grassley of Iowa.

What was 'Fast and Furious'?

The agent who was wounded has not been identified. After the shooting, he was airlifted to a hospital with non-life-threatening injuries.

He was released from the hospital Wednesday, said Jeremy Copeland, an agent with the Tucson Sector of U.S. Border Patrol.

U.S. Homeland Security Secretary Janet Napolitano will travel Friday to Arizona, along with other federal officials, "to express their condolences" to Ivie's family, according to department spokesman Matt Chandler.

"Napolitano (and the others) will also meet with federal, state and local law enforcement officials at the Brian A. Terry Border Patrol Station in Bisbee, Arizona, regarding the ongoing investigation," Chandler said in a statement.

In addition to Mexican authorities, the FBI is conducting a joint investigation with the Cochise County Sheriff's Office. James Turgal, special agent in charge of the FBI's Phoenix division, has declined to say if the Border Patrol agents involved in the incident returned fire.

As of Wednesday, investigators had not found the weapon used in the shooting, a U.S. law enforcement official said.

Lanny Breuer, assistant attorney general for the Criminal Division of the Justice Department, said earlier this week that investigators were at the scene.

"Every time that a law enforcement person is either killed or shot or injured in the line of duty, we have to take a moment and think of our families and think of the heroes involved," Breuer said.

Seven bodies found in western Mexico

CNN's Eduardo Aragon contributed to this report.

Was Pat Summitt forced out at UT?

Pat Summitt says she felt forced out as head coach of the Tennessee women's basketball team.
Pat Summitt says she felt forced out as head coach of the Tennessee women's basketball team.
  • Coaching legend filed affidavit as part of a lawsuit by former university employee
  • Summitt won more than 1,000 games and eight national titles
  • She has been diagnosed with early-onset Alzheimer's
  • She still has role with team as coach emeritus

(CNN) -- Pat Summitt, the all-time winningest major college basketball coach, says in an affidavit filed Thursday that she felt forced out as head coach of the Tennessee women's team after her diagnosis with early-onset Alzheimer's

In April, the coach announced her on-court retirement eight months after revealing her diagnosis.

Obama honors Medal of Freedom recipients
Summitt: Coaching has been a privilege

"I just felt like it was the time to step down," Summitt said at her retirement. "It's never a good time, but you have to find a time you think is the right time."

Summitt lauded as she steps down

But according to an affidavit she filed in conjunction with a lawsuit filed by a friend and former colleague against the university and its athletics director, the legendary coach didn't make the decision to step down on her own.

In her affidavit, Summitt described a meeting in March with athletic director Dave Hart, in which she said she was told she would no longer be coach after 38 seasons. Summit wrote in her affidavit that she had wanted to make that decision herself.

"This was very surprising to me and very hurtful," Summitt wrote in her affidavit.

Summitt's statement also said that Hart met again with her and he "indicated that I misinterpreted what he said."

Summitt's affidavit came in a lawsuit filed by a former media relations director for women's sports, Debby Jennings. Jennings is suing the school for age and gender discrimination and for retaliation.

Jennings said in her lawsuit that she wrote an e-mail to Hart the day after his initial meeting with Summitt, with Jennings saying in the e-mail that she opposed the decision regarding Summitt and considered it discriminatory.

POTUS honors Tennessee's Pat Summitt

Jennings said Hart retaliated against her two months later by giving her the option to resign, retire or be fired. She alleged that even before that, she had many of her work responsibilities taken away and given to younger men.

Efforts to reach Hart Thursday night for comment were unsuccessful.

Jennings, who had worked at Tennessee for 35 years, retired in May.

In her complaint filed in U.S. District Court, Jennings said she was forced out because "certain members of the athletic department ... wanted to model UT-K's athletic department as a good 'ol boys club."

A spokeswoman for the university said she could not comment because the legal case was ongoing.

Summitt, who led the Lady Vols to eight national championships and whose 1,098 wins are the most in major-college basketball history, remains involved in mentoring Tennessee players and recruiting as the team's head coach emeritus through April 2013.

2011: Dementia not slowing me down, Summitt says

Cynthia Nixon: Have the sex talk

Cynthia Nixon says it's Let's Talk month, a good time for parents to wade in and make sure their kids have accurate information on sex
Cynthia Nixon says it's Let's Talk month, a good time for parents to wade in and make sure their kids have accurate information on sex
  • Cynthia Nixon says when she was young, she dreaded talking about sex with her parents
  • She eventually did (her parents were open with her), and values that, now that she's a parent
  • October is Let's Talk Month; parents, make sure you talk to your kids about sex, she says
  • Nixon: Kids get information online; parents and schools must correct misinformation

Editor's note: Emmy, Tony, and Grammy Award-winner Cynthia Nixon, who is best known for her role as Miranda Hobbes on the HBO series "Sex and the City," can next be seen in the upcoming miniseries "World Without End." She is a member of the Planned Parenthood Federation of America Board of Advocates.

(CNN) -- Like most teens, I had a lot of questions about sex growing up, but I really didn't want to ask my parents any of them. I didn't want to ask anyone any of them.

I tried to piece things together for myself from what I'd read in books, seen in movies, seen in plays.

Cynthia Nixon

It wasn't that my parents wouldn't have frankly answered my questions. They had always let me know they were quite ready to discuss the topic, anytime I wanted to.

Even though it was a little difficult for me, I eventually became more comfortable.

In fact, when I lost my virginity, I felt I should honor my dad's forthrightness by telling him. (My mom and I had already discussed it before the fact.) He said, "OK. And are you using birth control?" I told him I was. "Great," he said. "I don't really need to know much more. Thank you so much for telling me." He was proud, I think, that I had shared the news with him but could only handle so much at that moment.

And though my dad clearly had a line where he got squeamish, I'm always grateful that both of my parents were so clear with me that sex was a normal, wonderful part of life and nothing to feel ashamed about.

As a parent, I think about that often now.

Our daughter is in high school, and our older son is in middle school. Like my parents, we try to do everything possible to make sure we are communicating with them in a clear, frank way so that they actually hear what we have to say.

Study: Sexy dolls marketed to kids
Studying kids and 'sexting'

That can be difficult. They have access to information about sex in ways we never did. We are competing with many different sources: Twitter, texting, the Internet, and television all influence how they think and act.

That's why Let's Talk Month in October -- an annual awareness-raising effort that emphasizes the importance of conversations about sex and relationships between parents and their teens -- is extremely important.

It's a great opportunity for parents and young people to start (or even better, continue) a meaningful conversation about sex and relationships.

A new study from Planned Parenthood, Family Circle magazine and the Center for Latino Adolescent and Family Health at New York University shows that parents are significantly more comfortable talking to their teens than teens are talking to their parents -- just the way I was!

Opinion: Oops, I left my sexual orientation at home

But even though it may be hard to get started, it's so worthwhile to talk with kids, answer their questions about sex, and help them make smart decisions about their relationships and behavior. And the more you talk, the easier it gets.

In my household, we started talking with our kids when they were young, when their curiosity about their bodies and about differences between boys and girls created natural opportunities for starting a dialogue. We always emphasized that their bodies were private and their own. And while every family has its own opinions on this, from our earliest conversations about sex I felt it was important to emphasize to both my daughter and my son that birth control is a must, not a maybe.

Age-appropriate school programs also help reinforce the conversations we are having at home and can help increase teens' comfort level when talking with their parents.

My daughter's sex education class in middle school was really terrific. Every student was required to anonymously write down a question on a piece of paper and put it in a hat at every meeting.

Nothing was off limits. There were questions like, "Can you get pregnant if you have sex when you have your period?"

That kind of anonymity -- when posing a question a teen really wants to ask, but is maybe too embarrassed to ask a teacher or a parent directly -- is so important for a young person. And that class sparked endless conversations and made our daughter feel more comfortable talking about these issues with us at home.

It is never too early or too late to start having these conversations.

October is as good as time as any.

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The opinions expressed in this commentary are solely those of Cynthia Nixon.

Meningitis hits 6 states; more feared

The St. Thomas Outpatient Neurosurgery Center in Nashville, closed due to the outbreak.
The St. Thomas Outpatient Neurosurgery Center in Nashville, closed due to the outbreak.
  • 35 people in six states now meet the criteria for a non-contagious, fungal form of meningitis
  • That's up from 26 just a day ago
  • All 35 patients were injected with a steroid
  • The plant where the steroid was manufactured voluntarily shut down

(CNN) -- Patients in 23 states could have been exposed to tainted medications that are being linked to dangerous fungal meningitis infections, health officials announced Thursday.

According to the U.S. Centers for Disease Control and Prevention, 35 people in six states now meet the criteria for a non-contagious, fungal form of meningitis, up from 26 just a day ago.

"Tragically at least five deaths have been reported," said Dr. Benjamin Park, from the CDC's Division of Foodborne, Waterborne, and Environmental Diseases. He said all 35 patients sickened so far meet the criteria for having a fungal infection and five have tested positive for the fungus.

Each one of these patients had been injected with a preservative-free steroid called methylprednisolone acetate manufactured by New England Compounding Center (NECC) in Framingham Massachusetts, according to U.S. Food and Drug Administration and CDC officials.

Park says 25 patients in Tennessee were sickened, and three have died. Virginia is reporting four cases including one death; Florida has two cases; Maryland has two cases, including 1 death; and North Carolina and Indiana have one case each.

NECC voluntarily recalled three lots of steroids last week and voluntarily shut down production at the entire facility on Wednesday, according to Ilisa Bernstein, director of the FDA's Center for Drug Evaluation and Research.

The FDA is advising all health care professionals who may have NECC medications to not use any products from NECC until the investigation is over.

Health officials say approximately 75 medical facilities in 23 states have received products from NECC.

Those states are California, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Maryland, Michigan, Minnesota, North Carolina, New Hampshire, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, Texas and West Virginia.

The FDA could not say how many patients may be have been exposed to this possibly contaminated steroid. Bernstein said she did not know how many doses were in each of the three lots of the drug. She emphasized that the investigation is still ongoing.

Federal health inspectors began inspecting the NECC plant on Monday. One of the inspectors said he saw foreign material in one unopened vial, but the investigation is not yet complete.

After analyzing the foreign material under a microscope, it was determined to be a fungal matter. Further tests to determine what type of fungus this may be is still under way.

Park said the CDC is only aware of infections for epidural injections that came from one of the three lots in questions.

Fungal meningitis is "quite a rare infection," said Park, but it's is not a required reportable illness, so it's unclear how often these types of infections occur.

Dr. William Schaffner, chairman of the Department of Preventive Medicine at Vanderbilt University Medical Center, told CNN that fungal infections are not usually mild. He said when funguses invade small blood vessels they can cause them to clot or bleed, which can lead to symptoms of small strokes.

Other symptoms of meningitis to look out for are include fever, chills, new or worsening headache and stiff neck, said Schaffner.

He and Park recommended that anyone who may recently have received a steroid injection in the lower back and is concerned should contact their physician or clinic to see if the clinic may have used products from the contaminated medication lots.

If someone is experiencing any symptoms, they should seek medical attention immediately. The earlier a patient gets treatment, the more likely he or she will survive.

Patients are treated with antifungal medication, which is given intravenously so patients have to be admitted to the hospital -- at least in the beginning, said Park. He added that patients may need to be treated for months.

CNN Medical Producer Trish Henry contributed to this report.

Officer to be charged after taped beating

Duluth Police Officer Richard Jouppi will face criminal charges for allegedly beating up a man in a detox facility last month.
Duluth Police Officer Richard Jouppi will face criminal charges for allegedly beating up a man in a detox facility last month.
  • An independent counsel decides to press charges against a Duluth police officer
  • Video shows him beating up a man in a detox facility, after the man pawed at him
  • Earlier, the officer's lawyer called the accusation against his client "a little extreme"

(CNN) -- A Duluth police officer will face criminal charges for, as a video shows, beating up a man in a detox facility last month, the city's police department said Thursday.

Shawn Reed, the independent counsel looking into the case, decided Thursday to press the charges against Officer Richard Jouppi, according to a news release from the Duluth police department.

Jouppi will face counts of fifth-degree assault and disorderly conduct, both misdemeanors.

According to a police report, officers responded on September 21 to transport a man -- later identified as Anthony Jackson -- who witnesses described as being "extremely intoxicated (and) in two fights tonight." Duluth police spokesman Jim Hansen said last Friday that officers had gone to what he called a halfway house because Jackson had violated its no-drinking policy.

Jackson was brought to the Duluth Detoxification Center "without incident," though once there the police report indicates he exchanged "unpleasant remarks" with a female staff member.

Security camera footage, later released to media, shows Jackson in a room sitting in a wheelchair trying to take off his coat. He stands up, trying to remove his jacket, when the police officer -- Jouppi, who had been standing by the door -- arrives and pins Jackson's arm behind his head.

The video shows Jackson pawing once at the police officer's face, as his other arm is pinned back. Jouppi responds with five punches to Jackson's head, then grabs him by the neck and pulls him off his wheelchair and onto the floor.

"I controlled his right arm at the elbow in order to prevent Jackson from falling through with his threat to strike (a) staff member," Jouppi wrote in the police report.

"I sought to take Jackson into custody and delivered two strikes to Jackson's face, as it was the only target presented to me at the time and in order to keep him from delivering more strikes I flipped the wheelchair ... which brought Jackson's back down to the ground."

Jackson was booked on charged of felony assault and later released, Hansen said. But those charges have since been dropped, according to Ernie Swartout, records manager for the Duluth police department.

Division Deputy Chief Mike Tusken told reporters last Friday that police had since visited Jackson "to reassure (him) that we are taking this seriously and just give him an update that we're doing an investigation on the matter."

The police official also confirmed that Jouppi has been accused in other incidents.

"It is not the first time there have been complaints on the officer," Tusken said.

A call Thursday night to Jouppi's lawyer, Frederick Bruno, was not immediately returned.

Last week, Bruno called the accusations against his client "a little extreme." He said Jackson had claimed he might have been armed and was never properly searched, and that he "was forcibly taken to the detox facility."

"He is trained to defuse the threat," Bruno said of Jouppi. "It's not pretty sometimes, and it's not fair, but it doesn't mean you get a pass to take a swing at a cop."

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Judge in video beating seeks reinstatement

CNN's Elwyn Lopez, John Fricke and Greg Botelho contributed to this report.