Jenna von Oy Keeps Newtown Hometown In Her Prayers

By Jenna von Oy

12/15/2012 at 03:00 PM EST

My husband Brad and I christened our daughter Gray at St. Rose of Lima

Courtesy of Jenna Von Oy

Every school shooting I've ever heard about has been exceedingly heartbreaking and has stirred feelings of both rage and sorrow in me. Each one is tragic and awful, and there have been far too many of them in recent years.

But Friday's massacre in Newtown has affected me in a profoundly personal way, as I have a unique perspective on the town … I am blessed to have grown up there.

My family still lives in Newtown and, in my heart of hearts, I still consider myself one of its residents. My attachment is deep-rooted. We are mourning the loss of some of our own this week, and it is a sobering reminder that violence does not discriminate. It can hit close to home.

I am fiercely proud to say I was born and raised in Newtown. It is where I was brought home from the hospital, attended my first day of kindergarten, learned to ride my bike, and climbed my first tree.

As I watched President Obama's press conference, I sobbed as he mentioned that the children who died had their whole lives ahead of them: graduations, weddings, having children of their own … I have celebrated every one of those milestones in Newtown.

I graduated from Newtown High School, got married two years ago in a bed and breakfast on its Main Street, and recently had my daughter christened at St. Rose, where the vigil was held Friday evening. Newtown is the foundation of my history and it holds a very special place in my heart.

It is nearly impossible to unscramble my thoughts and put them to paper at a time like this, but I wanted to express my love and support for the town that has given me so many wonderful memories.

I hope my intent isn't misunderstood here; this is not about me. This is about a peaceful, beautiful, wonderful place I've called home since my childhood; I am feeling very protective of it after Friday's crisis. This is about the people who are left to pick up the pieces after an unfathomable hardship.

I grieve for the parents who lost their beautiful, innocent babies; some of them were friends from high school. My heart hurts for the families who have to explain this loss to the frightened children they brought home.

Newtown has always been the epitome of a quintessentially quaint New England town. It resembles a Norman Rockwell painting, and I know it will be all too easy for that image to be marred by these appalling events. But Newtown is so much more than this shocking incident, and I desperately hope America will see that.

Childhood photo with my brother in front of the Newtown Bee

Courtesy of Jenna Von Oy

I know, with absolute certainty, the residents of Newtown will rise up with love and strength in the face of their suffering. When you think of my hometown, I hope you'll think beyond this moment in its history.

When the news first reported the shooting at Sandy Hook Elementary School, my emotional spectrum ranged from stunned and horrified, to inconsolable and numb. I am still feeling all of those things, and I don't expect that to go away anytime soon. This isn't something that's easily reconcilable.

Moreover, I share the overwhelming grief of the families affected by this tragedy. As a parent, I don't know how to make sense of it, and I am hugging my daughter that much tighter tonight because of it. No parent should ever have to experience a loss such as this one. It is unspeakable, and there is nothing fair about it.

There aren't enough prayers to ease their pain, but I'm giving it all I've got, regardless. It is all I have to give, and I hope you'll join me. Beyond that, there are no words.

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Fewer health care options for illegal immigrants

ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.

The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.

To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.

But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.

When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.

And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.

In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."

The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.

Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.

Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.

A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.

California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.

The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.

And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.

If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.

Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.

The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.

"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."

Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.

There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.

Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.

For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.

"They always attended to me," she said, "even though it's slow."

___

Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .

Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .

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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."

Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.

"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.

"Next week is going to be a Capitol Hill-driven market."

With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.

Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.

"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.

"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."

Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.

BEWARE OF THE WITCH

This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.

"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.

RETHINKING APPLE

Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.

Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.

On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.

"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.

But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.

(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Europe Court Finds Violation in C.I.A. Rendition

BERLIN — A German man who was mistaken for a terrorist and abducted nine years ago won a measure of redress on Thursday when the European Court of Human Rights ruled that his rights had been violated and confirmed his account that he had been seized by Macedonia, handed over to the C.I.A., brutalized and detained for months in Afghanistan.

In a unanimous ruling, the 17-judge panel, based in Strasbourg, France, found that Macedonia had violated the European Convention on Human Rights’ prohibition on torture and inhuman or degrading treatment, and ordered it to pay the man about $78,000 in damages. It was the first time a court had ruled in favor of the man, Khaled el-Masri, 49, in a case that focused attention on the C.I.A.’s clandestine rendition program, in which terrorism suspects were transported to third countries for interrogation.

The decision, which Amnesty International hailed as “a historic moment and a milestone in the fight against impunity,” is final and cannot be appealed. The C.I.A. declined to comment. A lawsuit against the United States filed on Mr. Masri’s behalf by the American Civil Liberties Union was dismissed in 2006 on the grounds that it would expose state secrets. The group filed a petition in 2008 at the Inter-American Commission on Human Rights in 2008; the United States government has yet to respond.

Mr. Masri, a German citizen of Lebanese descent, was pulled off a bus at the Macedonian border on New Year’s Eve in 2003 after guards confused him with an operative of Al Qaeda who had a similar name. He was taken to a hotel in the capital, Skopje, and locked in a room there for 23 days. His detention, along with the threat that he would be shot if he left the hotel room, “amounted on various counts to inhuman and degrading treatment,” the ruling said.

When he was handed over to the C.I.A. rendition team at the Skopje airport, he was “severely beaten, sodomized, shackled and hooded” in the presence of Macedonian officials, the ruling said, a treatment that “amounted to torture.” He was then flown to Afghanistan, where he spent more than four months in captivity before being flown to Albania and dropped on the side of a road.

His German lawyer, Manfred Gnjidic, said his mental state had suffered not only from the abuse but also from the “nine years of constantly fighting, being called a liar, a terrorist, an Islamist, a hard-liner.” Mr. Masri has broken off contact with his lawyers while serving a prison sentence on unrelated charges involving a 2009 assault on the mayor of Neu-Ulm in Bavaria.

Mr. Gnjidic said he had written to Chancellor Angela Merkel of Germany asking the government to appeal to Washington on Mr. Masri’s behalf. “Macedonia was only the henchman of the great powers,” Mr. Gnjidic said. “The question is: What is with the big fish, with Germany, with the U.S.A.? All he ever wanted was to know why this was done to him and an apology.”

Jamil Dakwar, the head of the A.C.L.U.’s human rights program, said that it had been “an uphill battle” to persuade the Obama administration to hold officials accountable under international law for Mr. Masri’s mistreatment, but that the case before the commission “gives the Obama administration the opportunity to acknowledge the egregious violations against Khaled, offer an official apology and reparation.” He called the European court’s ruling “historic” and said it “sends the message to European nations that they have a heightened obligation to investigate their complicity and cooperation with the illegal C.I.A. extraordinary rendition program.”

Kostadin Bogdanov, a lawyer who represents Macedonia before the court, said Macedonia would pay the damages and perhaps take other actions in light of the ruling. They include reopening the Masri investigation and amending laws regarding criminal procedures or their implementation, he said. James A. Goldston, executive director at the Open Society Justice Initiative, who argued the case before the court, called the ruling “a comprehensive condemnation of the worst aspects of the post-9/11 war-on-terror tactics that were employed by the C.I.A. and governments who cooperated with them.”

In another rendition case on Thursday, lawyers for a former Libyan dissident said he and his family had accepted a $3.5 million settlement from the British government, according to The Associated Press. The dissident, Sami al-Saadi, had sued the British government and its spy agency, MI6, saying that he had been abducted in Hong Kong in 2004 and sent to Libya, where he spent years in prison and was tortured. The rest of his family — his wife and four children — were also sent to Libya against their will.

Chris Cottrell contributed reporting from Berlin, and Scott Shane from Washington.

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President Obama Cries While Speaking About Children Killed in Connecticut Shooting

By Rennie Dyball

12/14/2012 at 03:45 PM EST

President Barack Obama on Dec. 14

Mandel Ngan/AFP/Getty

He addressed the nation as a father himself.

President Barack Obama cried as he shared his condolences about the horrific Connecticut elementary school shooting, taking long pauses as he spoke, visibly shaken and upset.

Here, in his own words, are the president's remarks ...

This afternoon, I spoke with Governor Malloy and FBI Director Mueller. I offered Governor Malloy my condolences on behalf of the nation and made it clear he will have every single resource he needs to investigate this heinous crime, care for the victims, counsel their families.

We've endured too many of these tragedies in the past few years and each time I hear the news, I react not as a president but as a parent. And that was especially true today. I know there's not a parent in America who doesn’t feel the same overwhelming grief that I do.

The majority of those who died today were children. Beautiful little kids between the ages of five and ten years old. They had their entire lives ahead of them: birthdays, graduations, weddings [wipes away tears], kids of their own.

Among the fallen were also teachers, men and women who devoted their lives to helping our children fulfill their dreams. So our hearts are broken today. For the parents, grandparents, sisters and brothers of these little children. And for the families of the adults who were lost.

Our hearts are broken for the parents of the survivors as well. For as blessed as they are to have their children home tonight, they know that their children's innocence has been torn away from them too early, and there are no words that will ease their pain.

As a country, we have been through this too many times. Whether it's an elementary school in Newtown or a shopping mall in Oregon or a temple in Wisconsin or a movie theater in Aurora, or a street corner in Chicago, these neighborhoods are our neighborhoods, and these children are our children. And we're going to have to come together and take meaningful action to prevent more tragedies like this, regardless of the politics.

This evening, Michelle and I will do what I know every parent in America will do, which is hug our children a little tighter and love them. And we'll remind each other of how deeply we love one another. But there are families in Connecticut who cannot do that tonight, and they need all of us, right now. In the hard days to come, that community needs us to be at our best as Americans, and I will do everything in my power as President to help.

Because while nothing can fill the space of a lost child, all of us can extend a hand to those in need, to remind them that we are there for them, that we are praying for them, that the love they felt for those they lost endures not just in their memories, but also in ours.

May God bless the memory of the victims. And in the words of scripture, "Heal the broken hearted and bind up their wounds."

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APNewsBreak: Texas cancer probe draws NCI scrutiny

AUSTIN, Texas (AP) — The National Cancer Institute confirmed Friday that federal officials are taking a closer look at a troubled $3 billion cancer-fighting effort in Texas that is under a criminal investigation over a lucrative taxpayer-funded grant awarded by the state agency.

The Cancer Prevention and Research Institute of Texas has coveted status as an NCI-approved funding entity — an exclusive group headlined by the nation's most prominent cancer organizations. The list is fewer than two dozen and includes the American Cancer Society, Susan G. Komen for the Cure and federal entities like the Center for Disease Control and Prevention.

The designation is a federal seal-of-approval that signals high peer review standards and conflict of interest policies. Yearlong turmoil within the Texas institute, or CPRIT, reached a new peak this week when the agency's beleaguered chief executive asked to resign and prosecutors opened cases following an $11 million grant to a private company that was revealed to have bypassed an independent review.

NCI spokeswoman Aleea Farrakh Khan told The Associated Press that officials are "evaluating recent events" at CPRIT. She said officials have not made decisions or contacted the agency directly.

Members of CPRIT's governing board did not immediately return an email seeking comment.

NCI designation is not required for CPRIT to continue running the nation's second-largest pot of cancer research dollars, Khan said. But jeopardizing that status — and especially losing it — would be a severe blow to CPRIT's reputation, which already has been battered by sweeping resignations, internal accusations of politics trumping science and now a criminal investigation.

A recent internal audit at CPRIT discovered an $11 million funding request from Dallas-based Peloton Therapeutics was approved without the agency ever scrutinizing the proposal's merits. The revelation came only months after two Nobel laureates and other top scientists left the agency in protest over a $20 million grant some accused of being rushed to approval without a proper peer review.

While CPRIT is funded by taxpayers, donors to cancer nonprofits might look to an NCI designation for assurance that their money is in good hands.

"It says, 'If I'm donating money to this agency, if NCI is approving them, that means NCI says it's handling its money well,'" Khan said.

Khan added that CPRIT's inclusion on the list does not mean all of its funding mechanisms are NCI-approved.

An entire page of CPRIT's website is devoted to boasting its NCI designation. The agency says the status is important because it means cancer centers in Texas seeking its own NCI designation — so as to reassure patients or bolster recruitment — can include CPRIT research dollars in their calculations to maintain levels needed to be NCI approved.

"This enhances Texas' ability to leverage additional federal funding for cancer research and raises Texas' profile as a center for cancer research," according to the website.

Executive Director Bill Gimson submitted his resignation letter Tuesday but offered to stay on through January. He has described Peloton's improper funding as an honest mistake and said no one associated with CPRIT stood to personally profit from the company's award.

Prosecutors have not made any specific criminal allegations. Launching separate investigations into CPRIT are the Texas attorney general's office and the Travis County district attorney's public integrity unit, which investigates criminal misconduct within state government.

___

Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Wall Street slips with Apple as "cliff" looms

NEW YORK (Reuters) - Stocks fell on Friday, led by losses in the Nasdaq after another drop in shares of Apple, and as the overhang of "fiscal cliff" negotiations kept buyers on the sidelines.

Apple slid 4.2 percent to $507.21 after UBS cut its price target on the stock to $700 from $780. The stock of the most valuable U.S. company has been hit hard in the last three months. On Friday, Apple's stock fell after a tepid reception for the iPhone 5 in China.

The S&P Information Technology Index <.gspt> lost 0.9 percent as Apple fell and Jabil Circuit Inc shed 5 percent to $17.61 after UBS cut its price target.

The possibility of a "fiscal cliff" deal not taking place until early 2013 is rising. The back-and-forth negotiations over the fiscal cliff in Washington have kept markets on hold in what would already be a quiet period for stocks.

"We're faced with uncertainty ... and that's going to continue now into January. It basically puts everybody on hold and (you) just have the markets kind of thrash around," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.

President Barack Obama and U.S. House of Representatives Speaker John Boehner held a "frank" meeting on Thursday at the White House to discuss how to avoid the tax hikes and spending cuts set to kick in early in 2013.

The Dow Jones industrial average <.dji> shed 19.68 points, or 0.15 percent, to 13,151/04. The Standard & Poor's 500 Index <.spx> slipped 3.79 points, or 0.27 percent, to 1,415.66. The Nasdaq Composite Index <.ixic> dropped 19.24 points, or 0.64 percent, to 2,972.97.

American Express Co shares fell 1.5 percent to $56.83 and ranked as the heaviest weight on the Dow.

The S&P 500 dropped 0.6 percent on Thursday after six straight positive sessions. Investors are concerned that going over the cliff could tip the economy back into recession. While a deal is expected to ultimately be reached, a drawn-out debate - like the one seen over 2011's debt ceiling - can erode confidence.

Still, expectations of an eventual agreement have helped the S&P 500 bounce back over the last month. On Wednesday, the index hit its highest intraday level since late October. For the year, the S&P has climbed 12.6 percent.

"It's quieter than it has been recently. I think it's the Friday before the holiday week and people are starting to go away, and absent some big news out of Washington, I think things will be quieter," said Jeff Meyerson, head of trading for Sunrise Securities in New York.

Best Buy Co Inc slid 14 percent to $12.13 after the electronics retailer agreed to extend the deadline for the company's founder to make a bid. Shares jumped as much as 19 percent on Thursday after initial reports of a bid this week from founder Richard Schulze.

Consumer prices fell in November for the first time in six months, indicating U.S. inflation pressures were muted. A separate report showed manufacturing grew at its swiftest pace in eight months in December.

Data out of China was encouraging, as Chinese manufacturing grew at its fastest pace in 14 months in December. The news was seen as helping U.S. materials companies, including U.S. Steel , which rose 6 percent to $23.66.

(Reporting by Gabriel Debenedetti; Additional reporting by Caroline Valetkevitch; Editing by Bernadette Baum and Jan Paschal)

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Avigdor Lieberman of Israel Charged With Breach of Trust

JERUSALEM (AP) — Israel's powerful foreign minister was charged Thursday with breach of trust for actions that allegedly compromised a criminal investigation into his business dealings, throwing the country's election campaign into disarray just weeks before the vote.

While Avigdor Lieberman was cleared of more serious allegations against him, the indictment sparked immediate calls for the controversial politician to step down. He declined to do so at a news conference but said he would consult with his lawyers on what to do next. Prime Minister Benjamin Netanyahu also rallied behind his close ally.

Lieberman denied any wrongdoing, calling the investigation against him a witch hunt.

"According to my legal counsel, I do not have to resign," Lieberman told cheering supporters at a campaign rally. "At the end of the day I will make a final decision together with my lawyers."

Lieberman, a native of Moldova, is head of Yisrael Beitenu, an ultranationalist party that is especially popular with fellow immigrants from the former Soviet Union. With a tough-talking message that has questioned the loyalty of Israel's Arab minority, criticized the Palestinians and confronted Israel's foreign critics, he has become an influential voice in Israeli politics even while sometimes alienating Israel's allies.

Yisrael Beitenu and Netanyahu's Likud Party recently joined forces and are running together on a joint list in the Jan. 22 parliamentary elections. Opinion polls have predicted they would form the largest bloc in parliament and lead a new coalition government.

But Thursday's decision threatened to become a distraction during the campaign. Three leading opposition politicians all called for his dismissal.

Lieberman gave no timeframe for deciding on his political future but said he would consider whether the indictment was harming support for his party in the election.

Lieberman's departure could have negative consequences for Netanyahu. Lieberman is Yisrael Beitenu's founder and main attraction to voters. If he were forced to step aside, Netanyahu would be stuck with a list of leftovers with little appeal to the general public.

Perhaps with this in mind, Netanyahu appeared to come to Lieberman's defense. In a statement, Netanyahu congratulated Lieberman for fending off the "main accusations" and said he was entitled to his day in court.

"I believe in the Israeli justice system and I respect it. The right it gives every citizen in Israel to defend himself is extended to Minister Lieberman and I hope he proves his innocence in the one issue remaining," Netanyahu said.

Thursday's decision was a reversal for Attorney General Yehuda Weinstein, who last year notified Lieberman that he intended to indict him on charges that included fraud and money laundering.

Prosecutors have long suspected that Lieberman illicitly received millions of dollars from businessmen and laundered the cash through straw companies in eastern Europe while he was a lawmaker and Cabinet minister. In his decision Thursday, Weinstein said the case was not strong enough.

"I am convinced that there is no reasonable chance of a conviction in the offenses Lieberman is suspected of and that the case should be closed," Weinstein wrote.

Instead, Lieberman was charged with the lesser offense of receiving official material from the investigation against him from the former Israeli ambassador to Belarus, Zeev Ben-Aryeh, who reached a plea bargain in the case earlier this year.

The envoy had received the documents from the foreign ministry, which sought additional information on Lieberman from Belarus authorities.

At his news conference, Lieberman described the investigation as a witch hunt that stretched back as far as 1996, when he worked as an aide to Netanyahu.

He denied all the allegations, and said that when he received information about the investigation from his ambassador, he immediately ripped it up and flushed it down the toilet because he knew it was wrong.

Lieberman has said in the past that he would resign if indicted. But he told his supporters that he was only referring to the more serious case against him.

Avraham Diskin, a political scientist at Hebrew University, said Lieberman would have to determine whether the indictment is hurting his party's electoral chances before deciding his future.

"He'll make a calculation. But every move will be coordinated with Bibi. We can be sure of that," he said, using Netanyahu's nickname.

Israeli law is unclear about whether Lieberman must resign. There is a legal precedent for politicians to step down when they face charges that compromise public trust in them.

Analysts said the pressure for him to step down will be great and Weinstein, or even the Supreme Court, could become involved if he refuses.

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Selling flak jackets in the cyberwars

SAN FRANCISCO (Reuters) – When the Israeli army and Hamas trade virtual blows in cyberspace, or when hacker groups like Anonymous rise from the digital ether, or when WikiLeaks dumps a trove of classified documents, some see a lawless Internet.

But Matthew Prince, chief executive at CloudFlare, a little-known Internet start-up that serves some of the Web’s most controversial characters, sees a business opportunity.

Founded in 2010, CloudFlare markets itself as an Internet intermediary that shields websites from distributed denial-of-service, or DDoS, attacks, the crude but effective weapon that hackers use to bludgeon websites until they go dark. The 40-person company claims to route up to 5 percent of all Internet traffic through its global network.

Prince calls his company the “Switzerland” of cyberspace – assiduously neutral and open to all comers. But just as companies like Twitter, YouTube and Facebook have faced profound questions about the balance between free speech and openness on the Internet and national security and law enforcement concerns, CloudFlare‘s business has posed another thorny question: what kinds of services, if any, should an American company be allowed to offer designated terrorists and cyber criminals?

CloudFlare’s unusual position at the heart of this debate came to the fore last month, when the Israel Defense Forces sought help from CloudFlare after its website was struck by attackers based in Gaza. The IDF was turning to the same company that provides those services to Hamas and the al-Quds Brigades, according to publicly searchable domain information. Both Hamas and al-Quds, the military wing of the Palestinian Islamic Jihad, are designated by the United States as terrorist groups.

Under the USA Patriot Act, U.S. firms are forbidden from providing “material support” to groups deemed foreign terrorist organizations. But what constitutes material support – like many other facets of the law itself – has been subject to intense debate.

CloudFlare’s dealings have attracted heated criticism in the blogosphere from both Israelis and Palestinians, but Prince defended his company as a champion of free speech.

“Both sides have an absolute right to tell their story,” said Prince, a 38-year old former lawyer. “We’re not providing material support for anybody. We’re not sending money, or helping people arm themselves.”

Prince noted that his company only provides defensive capabilities that enable websites to stay online.

“We can’t be sitting in a role where we decide what is good or what is bad based on our own personal biases,” he said. “That’s a huge slippery slope.”

Many U.S. agencies are customers, but so is WikiLeaks, the whistle-blowing organization. CloudFlare has consulted for many Wall Street institutions, yet also protects Anonymous, the “hacktivist” group associated with the Occupy movement.

Prince‘s stance could be tested at a time when some lawmakers in the United States and Europe, armed with evidence that militant groups rely on the Web for critical operations and recruitment purposes, have pressured Internet companies to censor content or cut off customers.

Last month, conservative political lobbies, as well as seven lawmakers led by Ted Poe, a Republican from Texas, urged the FBI to shut down the Hamas Twitter account. The account remains active; Twitter declined to comment.

MATERIAL SUPPORT

Although it has never prosecuted an Internet company under the Patriot Act, the government’s use of the material support argument has steadily risen since 2006. Since September 11, 2001, more than 260 cases have been charged under the provision, according to Fordham Law School’s Terrorism Trends database.

Catherine Lotrionte, the director of Georgetown University’s Institute for Law, Science and Global Security and a former Central Intelligence Agency lawyer, argued that Internet companies should be more closely regulated.

“Material support includes web services,” Lotrionte said. “Denying them services makes it more costly for the terrorists. You’re cornering them.”

But others have warned that an aggressive government approach would have a chilling effect on free speech.

“We’re resurrecting the kind of broad-brush approaches we used in the McCarthy era,” said David Cole, who represented the Humanitarian Law Project, a non-profit organization that was charged by the Justice Department for teaching law to the Kurdistan Workers’ Party, which is designated by the United States as a terrorist group. The group took its case to the Supreme Court but lost in 2010.

The material support law is vague and ill-crafted, to the point where basic telecom providers, for instance, could be found guilty by association if a terrorist logs onto the Web to plot an attack, Cole said.

In that case, he asked, “Do we really think that AT&T or Google should be held accountable?”

CloudFlare said it has not been contacted about its services by the U.S. government. Spokespeople for Hamas and the Palestinian Islamic Jihad, told Reuters they contracted a cyber-security company in Gaza that out-sources work to foreign companies, but declined to comment further. The IDF confirmed it had hired CloudFlare, but declined to discuss “internal security” matters.

CloudFlare offers many of its services for free, but the company says websites seeking advanced protection and features can see their bill rise to more than $ 3,000 a month. Prince declined to discuss the business arrangements with specific customers.

While not yet profitable, CloudFlare has more than doubled its revenue in the past four months, according to Prince, and is picking up 3,000 new customers a month. The company has raked in more than $ 22 million from venture capital firms including New Enterprise Associates, Venrock and Pelion Venture Partners.

Prince, a Midwestern native with mussed brown hair who holds a law degree from the University of Chicago, said he has a track record of working on the right side of the law.

A decade ago, Prince provided free legal aid to Spamhaus, an international group that tracked email spammers and identity thieves. He went on to create Project Honey Pot, an open source spam-tracking endeavor that turned over findings to police.

Prince’s latest company, CloudFlare, has been hailed by groups such as the Committee to Protect Journalists for protecting speech. Another client, the World Economic Forum, named CloudFlare among its 2012 “technology pioneers” for its work. But it also owes its profile to its most controversial customers.

CloudFlare has hosted 4Chan, the online messaging community that spawned Anonymous. LulzSec, the hacker group best known for targeting Sony Corp, is another customer. And since last May, the company has propped up WikiLeaks after a vigilante hacker group crashed the document repository.

Last year, members of the hacker collective UgNazi, whose exploits include pilfering user account information from eBay and crashing the CIA.gov website, broke into Prince’s cell phone and email accounts.

“It was a personal affront,” Prince said. “But we never kicked them off either.”

Prince said CloudFlare would comply with a valid court order to remove a customer, but that the Federal Bureau of Investigation has never requested a takedown. The company has agreed to turn over information to authorities on “exceedingly rare” occasions, he acknowledged, declining to elaborate.

“Any company that doesn’t do that won’t be in business long,” Prince said. But in an email, he added: “We have a deep and abiding respect for our users’ privacy, disclose to our users whenever possible if we are ordered to turn over information and would fight an order that we believed was not proper.”

Juliannne Sohn, an FBI spokeswoman, declined to comment.

Michael Sussmann, a former Justice Department lawyer who prosecuted computer crimes, said U.S. law enforcement agencies may in fact prefer that the Web’s most wanted are parked behind CloudFlare rather than a foreign service over which they have no jurisdiction.

Federal investigators “want to gather information from as many sources as they can, and they’re happy to get it,” Sussmann said.

In an era of rampant cyber warfare, Prince acknowledged he is something of a war profiteer, but with a wrinkle.

“We’re not selling bullets,” he said. “We’re selling flak jackets.”

(Reporting By Gerry Shih in San Francisco and Nidal al-Mughrabi in Gaza; editing by Jonathan Weber and Claudia Parsons)

Internet News Headlines – Yahoo! News

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The X Factor: Who Stole the Show at the Semi-Finals?

TV Watch

The X Factor

By Tim Nudd

12/13/2012 at 03:30 PM EST

Carly Rose Sonenclar, Emblem3, Tate Stevens and Fifth Harmony

Ray Mickshaw/FOX (4)

There may not be a front-runner following Wednesday's semi-finals on The X Factor, but there does seem to be a weakest link.

Most of the judges seemed down on girl group Fifth Harmony, whose rendition of Shontelle's "Impossible" left them wanting more, following a better performance of Ellie Goulding's "Anything Could Happen."

Britney Spears, Demi Lovato and L.A. Reid were all doubtful of Fifth Harmony's chances to be one of the three acts in the finals, with only Simon Cowell defending them, saying, "You've been one of the strongest acts tonight."

Not that the other performers were slouches.

Tate Stevens tackled Craig Morgan's "Bonfire" and Clay Walker's "Fall" with confidence and poise. Carly Rose Sonenclar took some risks with Elton John's "Your Song" and John Lennon's "Imagine" but won mostly praise. And boy band Emblem3 put their own spin on Peter Frampton's "Baby, I Love Your Way" and the Beatles' "Hey Jude," again to mostly positive reactions from the panel.

Thursday's results show will send one act home and three to the finale.

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