Israel, Gaza fighting rages on as Egypt seeks truce

GAZA/JERUSALEM (Reuters) – Israel bombed Palestinian militant targets in the Gaza Strip from air and sea for a fifth straight day on Sunday, preparing for a possible ground invasion though Egypt saw “some indications” of a truce ahead.

Militant rocket fire into Israel subsided during the night but resumed in the morning with three rockets fired at the nearby coastal city of Ashkelon, the Israeli army said.

“As of now we have struck more than 1,000 targets, so Hamas should do the math over whether it is or isn’t worth it to cease fire,” Israeli Vice Prime Minister Moshe Yaalon, over Twitter.

“If there is quiet in the South and no rockets and missiles are fired at Israel’s citizens nor terrorist attacks engineered from the Gaza Strip, we will not attack.”

Forty-eight Palestinians, about half of them civilians, including 13 children, have been killed in Israel’s raids, Palestinian officials said. More than 500 rockets fired from Gaza have hit Israel, killing three people and injuring dozens.

Israel unleashed intensive air strikes on Wednesday, killing the commander of the Hamas Islamist group that governs Gaza and spurns peace with the Jewish state. Israel’s declared goal is to deplete Gaza arsenals and press Hamas into stopping cross-border rocket fire that has plagued Israeli border towns for years.

Air raids continued past midnight into Sunday, with warships shelling from the sea. A Gaza City media building was hit, witnesses said, wounding 6 journalists and damaging facilities belonging to Hamas’s Al-Aqsa TV as well as Britain’s Sky News.

An Israeli military spokeswoman said the strike had targeted a rooftop “transmission antenna used by Hamas to carry out terror activity”.

Two other predawn attacks on houses in the Jabalya refugee camp killed two children and wounded 13 other people, medical officials said.

These attacks followed a defiant statement by Hamas military spokesman Abu Ubaida, who told a news conference: “This round of confrontation will not be the last against the Zionist enemy and it is only the beginning.”

The masked gunman dressed in military fatigues insisted that despite Israel’s blows Hamas “is still strong enough to destroy the enemy”.

An Israeli attack on Saturday destroyed the house of a Hamas commander near the Egyptian border.

Casualties there were averted however, because Israel had fired non-exploding missiles at the building beforehand from a drone, which the militant’s family understood as a warning to flee, and thus their lives were spared, witnesses said.

Israeli aircraft also bombed Hamas government buildings in Gaza on Saturday, including the offices of Prime Minister Ismail Haniyeh and a police headquarters.

Among those killed in air strikes on Gaza on Saturday were at least four suspected militants riding motorcycles, and several civilians including a 30-year-old woman.

ISRAELI SCHOOLS SHUT

Israel said it would keep schools in its south shut on Sunday as a precaution to avoid casualties from rocket strikes reaching as far as Tel Aviv and Jerusalem in the past few days.

Israel’s “Iron Dome” missile interceptor system destroyed in mid-air a rocket fired by Gaza militants at Tel Aviv on Saturday, where volleyball games on the beach front came to an abrupt halt as air-raid sirens sounded.

Hamas claimed responsibility for the attack on Tel Aviv, the third against the city since Wednesday. It said it had fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, but there was also a growing number of calls from world leaders to seek an end to the violence.

British Prime Minister David Cameron “expressed concern over the risk of the conflict escalating further and the danger of further civilian casualties on both sides,” in a conversation with Israeli Prime Minister Benjamin Netanyahu, a spokesperson for Cameron said.

London was “putting pressure on both sides to de-escalate,” the spokesman said, adding that Cameron had urged Netanyahu “to do everything possible to bring the conflict to an end.”

Ben Rhodes, a deputy national security adviser to President Barack Obama, said the United States would like to see the conflict resolved through “de-escalation” and diplomacy, but also believes Israel has a right to self-defense.

Egyptian President Mohamed Mursi said in Cairo as his security deputies sought to broker a truce with Hamas leaders, that “there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees.”

Egypt has mediated previous ceasefire deals between Israel and Hamas, the latest of which unraveled with recent violence.

A Palestinian official told Reuters the truce discussions would continue in Cairo on Sunday, saying “there is hope,” but it was too early to say whether the efforts would succeed.

In Jerusalem, an Israeli official declined to comment on the negotiations. Military commanders said Israel was prepared to fight on to achieve a goal of halting rocket fire from Gaza, which has plagued Israeli towns since late 2000, when failed peace talks led to the outbreak of a Palestinian uprising.

Diplomats at the United Nations said Secretary-General Ban Ki-moon is expected to visit Israel and Egypt in the coming week to push for an end to the fighting.

POSSIBLE GROUND OFFENSIVE

Israel, with tanks and artillery positioned along the frontier, said it was still weighing a ground offensive.

Israeli cabinet ministers decided on Friday to more than double the current reserve troop quota set for the Gaza offensive to 75,000 and around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”

“We have a plan. … It will take time. We need to have patience. It won’t be a day or two,” he added.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Netanyahu, favored to win a January election.

The last Gaza war, a three-week Israeli blitz and invasion over the New Year of 2008-09, killed 1,400 Palestinians, mostly civilians. Thirteen Israelis died in the conflict.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s maneuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

(Writing by Allyn Fisher-Ilan; Editing by Douglas Hamilton)

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Honey Boo Boo Gets Trashy and Some Really Cute Dumb Ways to Die

We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:

RELATED: Catching Kangaroos Seems Pretty Easy; ‘The Dark Knight’ Goes Pee-wee

So, we’re not quite sure what kind of spirit moved artist Jason Mecier to create a Honey Boo Boo portrait from 25 pounds of trash. But it did. And we’re thankful (sort of?): 

RELATED: Dating Is Just So Depressing

RELATED: A Dubstep Birthday for Michael Jackson and One Soggy Koala

And thank god for YouTube. Besides going to America’s shopping malls, how else would we find terrible parents and gullible children? And how else would we know that we were entertained by these fascinating creatures? 

RELATED: Ai Weiwei’s ‘Gangnam Style’ Isn’t Bad

RELATED: ‘What Makes You Beautiful’ Gets Beautiful

Now that the Dark Knight trilogy is over, aren’t you in the mood for something lighter? Another prequel? How about a fan-made video (which we’re guessing took hours and hours and footage from the 90s and beyond) which imagines all Dark Knight‘s characters in high school?

OMGosh Melbourne Metro this is like the cutest video on earth! You guys are adorable, like we’re talking totes adorable squeeeee—Oh wait. We take that back. We take all of it back. 

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At Washington’s James Bond exhibit, villains are forever

WASHINGTON (Reuters) – Fans of fictional super spy James Bond rely on the durable film franchise for must-have elements, such as jaw-dropping stunts, great clothes, sultry women – and villains who are drop-dead evil.

An exhibition that opened on Friday makes clear that the nasty types that 007 has battled for five decades have changed but one constant remains. The only true match for the world’s greatest secret agent are characters that moviegoers love to hate.

“Exquisitely Evil: 50 Years of Bond Villains” at the International Spy Museum in downtown Washington, is dedicated to the most memorable bad guys and gals in the 23-film series.

From the eponymous “Dr. No” in 1962 to the just-released “Skyfall,” the exhibit shows links between fact and fiction and how villains have kept pace with an evolving world.

“Bond seems the same, but the villains have all changed. They have changed to reflect the changing times,” Anna Slafer, the museum’s director of exhibitions, told a news conference.

In “Dr. No,” the villain schemes against the U.S. space program. Probing the nuclear fears of the 1970s, tycoon Karl Stromberg plots genocide in “The Spy Who Loved Me” (1977).

The information age turns up with Max Zorin, who lusts to corner the microchip market in “A View to a Kill” (1985). In “Skyfall” cyberterrorist Silva tries to hack British intelligence computers.

THINK BIG

But some things have remained the same for the Bond villain, said Alexis Albion, a guest curator and intelligence historian.

They are highly successful, often charming, live in isolated places, generate fanatical loyalty, and think big, she said. “They are on a level that we have to send someone like James Bond after them.”

They also “are off physically,” Albion said. Le Chiffre in “Casino Royale” (2006) weeps blood, Dr. No has a magnetic claw in place of a hand, and the hitman Jaws in “The Spy Who Loved Me” and “Moonraker” (1979) is a giant with steel teeth.

A galaxy of well-known actors – and a few actresses – from around the world have faced off against the six men who have played Bond, from Sean Connery to Daniel Craig.

Yaphet Kotto, Max von Sydow, Sean Bean, Javier Bardem, Donald Pleasence, Christopher Lee, Michael Lonsdale, Lotte Lenya, Mads Mikkelsen, Jeroen Krabbe, Christopher Walken and Telly Savalas all have gone mano-a-mano with 007, and lost.

The International Spy Museum‘s show was timed to the release of “Skyfall” and done in cooperation with EON Productions, which makes the Bond movies.

The exhibit, which includes more than 110 movie and historical artifacts, including Jaws’ teeth, interactive stations, and videos, runs through 2014. General admission to the museum is $ 19.95.

(Reporting by Ian Simpson; Editing by Paul Simao)

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Tulsa Town Hall: Nutrition a valuable tool in health care

Weil spoke as part of the Tulsa Town Hall series of speakers.

The United States has an expensive health-care system that doesn’t produce good results, he said.

“Something is very wrong with this picture,” he said. “We’re spending more and more and we have less and less to show for it.”

Changes in diet can be an effective treatment for many conditions, but American physicians are functionally illiterate in nutrition, he said.

“The whole subject of nutrition is omitted in medical education,” he said.

There are many ways of managing diseases other than drugs, he said. Integrative medicine, which can include dietary supplements and practices like meditation, is the future of health care, he said.

The health system is resistant to change because of entrenched vested interests. That includes pharmaceutical companies that do direct-to-consumer advertising, which should be stopped, he said.

“As dysfunctional as our health-care system is at the moment – and it is very dysfunctional – it is generating rivers of money,” he said. “That money is going into very few pockets.”

Weil has developed an anti-inflammatory diet based on the Mediterranean diet but with Asian influences.

Inflammation is associated with some heart disease, Alzheimer’s disease and some cancers, he said. And as a result, people should be eating real, unprocessed foods and whole grains. They should stay away from sugar-sweetened beverages, including fruit juice, he said.

“The new research that’s being done on sugar is not very comforting,” he said.

The aging process can’t be avoided, but age-related diseases can be avoided by proper care, he said.

“The goal should be to live long and well with a big drop off at the end,” he said.

Weil is the director of the University of Arizona’s Center for Integrative Medicine.

Tickets to the Tulsa Town Hall series are sold as a $ 75 subscription and cover five lectures. Tickets for individual lectures are not available.

To subscribe, visit tulsaworld.com/tulsatownhall, call 918-749-5965 or write to: Tulsa Town Hall, Box 52266, Tulsa, OK 74152.

Future speakers include journalist Ann Compton on Feb. 8; author James B. Stewart on April 5; historian and cinematographer Rex Ziak on May 10.

Original Print Headline: Speaker highlights nutrition

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Shannon Muchmore 918-581-8378
shannon.muchmore@tulsaworld.com
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Warning over hidden customer data

16 November 2012 Last updated at 18:47 ET

The UK government has repeated its threat to legislate if businesses do not voluntarily release data gathered on customers who ask to see it.

An initiative called Midata calls on firms to provide details to the public in a “machine-readable” format.

Ministers had warned in August they would introduce a new law if utilities, web firms and shops did not voluntarily comply with their request.

Consumer Affairs Minister Jo Swinson will provide more details on Monday.

Under the existing Data Protection Act consumers already have the power to make a “subject access request” to see the personal information companies and other organisations hold on them.

But doing this can incur a fee of up to £10 and not all data has to be handed over.

The government is hoping that the Midata scheme will make the process easier and help consumers make more informed decisions about issues such as which energy deal or mobile subscription would best match their habits.

“Many businesses reap huge commercial benefits from the information they gather from consumers’ daily spending patterns”, said Ms Swinson ahead of next week’s announcement.

“Why shouldn’t consumers also benefit from this by having access to their own data to enable them to make better choices?”

Security concerns

Consumer advocacy group Which? believes the information transparency encouraged by the Midata scheme could boost competition to the benefit of consumers.

Executive director Richard Lloyd said: “Giving consumers more power with their personal data will help them make better use of their money, and that’s not only good for customer-friendly businesses, but good for growth in the economy.”

But several details of the scheme still need to be fleshed out.

The government talks of third-party developers making apps that could access the data on consumers’ behalf, but has not specified which formats companies need to provide the information in to ensure the software could make like-for-like comparisons.

Consumer Focus has also cautioned that collating data in this way could pose a security risk, telling the Financial Times it could open a new avenue for personal information to be leaked or become the subject of a hack attack.

The Department for Business, Innovation and Skills says 20 businesses in the energy, finance and telecoms sectors have already signed up to the voluntary scheme.

But it is holding out the threat of legislation should insufficient numbers of companies comply.

If secondary legislation is needed, the department suggested new powers could come into force by early 2014.

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Canadian October home sales dip, latest sign of cooling

TORONTO (Reuters) – Sales of existing homes in Canada fell in October from September and year-over-year sales were down as well, the Canadian Real Estate Association said on Thursday in the latest signal that the housing market is slowing.

The industry group for Canadian real estate agents said sales were down 0.1 percent in October from September. Actual sales for October, not seasonally adjusted, were down 0.8 percent from a year earlier.

The housing market, which roared higher in 2011 and the first half of 2012, started to slow after the government tightened rules on mortgage lending in July in a bid to cool the market and prevent home buyers from taking on too much debt.

“Housing market trends in Canada for 2012 can be characterized as before and after regulatory changes,” TD Economics senior economist Sonya Gulati said in a research note.

“In the first half of the year, sales and price gains were modest, but positive. More stringent mortgage rules and tighter mortgage underwriting rules have ‘purposely’ knocked the wind out of the housing market sails,” she said.

The home sales data showed diverging paths in Canadian housing depending on location. In Toronto and Vancouver, where sales and price gains were red hot in 2011 and early in 2012, the market has been cooling. But markets in the resource-rich western provinces of Saskatchewan and Alberta have been gaining strength.

“Opinions differ about how sharply sales have slowed depending on the local housing market,” Gregory Klump, CREA’s chief economist, said in a statement.

Led by Calgary, sales in October were up from a year earlier in almost two-thirds of local markets. Sales remained blow year-earlier levels in Toronto, Vancouver and Montreal, CREA said.

“These results suggest that the Canadian housing market overall has returned to a more sustainable pace,” Klump said.

CREA’s Home Price Index rose 3.6 percent in October from a year earlier, the sixth consecutive month in which gains in prices slowed, and the slowest rate of increase since May 2011.

While tighter mortgage rules have worked to slow the market, TD’s Gulati said the big question is what will happen when that temporary cooling effect wears off in early 2013.

“What happens thereafter is less certain. The low interest rate environment could pull homeowners back onto the market, causing home prices to once again trek upwards. Alternatively, an absence of pent-up demand may leave the market in a bit of a lull until interest rate hikes resume in late 2013,” she wrote.

“Under either scenario, it is safe to say that there is a low probability of out-sized home price gains over the near-term.”

A total of 402,322 homes traded hands via Canadian MLS systems over the first 10 months of 2012, up 0.8 percent from the same period last year and 0.4 percent below the 10-year average for the period, the data showed.

The number of newly listed homes fell 3.8 percent in October following a jump in September. Monthly declines were reported in almost two-thirds of local markets, with Toronto and Vancouver exerting a large influence on the national trend.

Nationally, there were 6.5 months of inventory at the end of October, little changed from the reading of 6.4 months at the end of September.

(Editing by Peter Galloway)

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Exclusive: Facebook offering e-retailers sales tracking tool

SAN FRANCISCO (Reuters) – Facebook Inc wants more credit for making online cash registers ring.

Facebook will begin rolling out on Friday a new tool which will allow online retailers to track purchases by members of the social network who have viewed their ads.

The tool is the latest of the new advertising features Facebook is offering to convince marketers that steering advertising dollars to the company will deliver a payoff.

Facebook, with roughly 1 billion users, has faced a tough reception on Wall Street amid concerns about its slowing revenue growth.

“Measuring ad effectiveness and outcomes is absolutely crucial to all types of businesses and marketers,” said David Baser, a product manager for Facebook’s ads business who said the “conversion measurement” tool has been a top customer request for a long time.

The sales information that advertisers receive is anonymous, said Baser. “You would see the number of people who bought shoes,” he said, using the example of an online shoe retailer. But marketers would not be able to get information that could identify the people, he added.

The conversion tool is specifically designed for so-called direct response marketers, such as online retailers and travel websites that advertise with the goal of drumming up immediate sales rather than for longer-term brand-building.

Such advertisers have long flocked to Google Inc’s Web search engine, which can deliver ads to consumers at the exact moment they’re looking for information on a particular product.

But some analysts say there is room for Facebook to make inroads if it can demonstrate results.

“The path to purchase” is not as direct on Facebook as it is on Google’s search engine, said Debra Aho Williamson, an analyst with research firm eMarketer. But she said that providing information about customer sales conversion should help Facebook make a stronger case to online retailers.

“It lets marketers track the impact of a Facebook ad hours or days or even a week beyond when someone might have viewed the ad,” said Williamson. “That allows marketers to understand the impact of the Facebook ad on the ultimate purchase.”

Marketers will also have the option to aim their ads at segments of Facebook’s audience with similar attributes to consumers that have responded well to a particular ad in the past, Baser said.

Online retailer Fab.com, which has tested Facebook’s new service, was able to reduce its cost per new customer acquisition by 39 percent when it served ads to consumers deemed most likely to convert, Facebook said. Facebook defines a conversion as anything from a completed sale, to a consumer taking another desired action on a website, such as registering for a newsletter.

NEW OPPORTUNITIES

Shares of Facebook, which were priced at $ 38 a share in its May initial public offering, closed Thursday’s regular session at $ 22.17.

In recent months, Facebook has introduced a variety of new advertising capabilities and moved to broaden its appeal to various groups of advertisers.

Chief Operating Officer Sheryl Sandberg said in October that Facebook saw multi-billion revenue opportunities in each of four groups of advertisers: brand marketers, local businesses, app developers and direct response marketers.

Facebook does not disclose how much of its ad revenue, which totaled $ 1.09 billion in the third quarter, comes from each type of advertiser. Pivotal Research Group analyst Brian Wieser estimates that brand marketers and local businesses account for the bulk of Facebook’s current advertising revenue.

Earlier this year, Facebook introduced a similar conversion measurement service for big brand advertisers, such as auto manufacturers, partnering with data mining firm Datalogix to help connect the dots between consumer spending at brick-and-mortar and Facebook ads.

And Facebook has rolled out new marketing tools for local businesses such as restaurants and coffee shops, including a revamped online coupon service and simplified advertising capabilities known as promoted posts.

The new conversion measurement tool is launching in testing mode, but will be fully available by the end of the month, Facebook said.

(Reporting By Alexei Oreskovic; editing by Carol Bishopric)

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After Garbo, Leigh, no defining “Anna Karenina”: Knightley

LOS ANGELES (Reuters) – Film adaptations of “Anna Karenina” have featured the likes of Greta Garbo and Vivien Leigh, but Keira Knightley isn’t fazed about measuring up to such silver screen luminaries with a new cinematic take on Leo Tolstoy‘s classic novel.

The British actress’s turn in the title role in the timeless story about a beautiful married socialite in 1870s Russia who embarks on a passionate affair with a cavalry officer, follows the 1935 version starring Garbo and the 1948 film with Leigh. It is released in the United States on Friday.

“Although there have been many famous actresses play her, there’s never been a definitive version of ‘Anna Karenina,’” Knightley said in an interview. “I think it’s partly because of the relationship you have with the character. She poses more questions than she answers, so it’s always open to different interpretation.”

Knightley stars opposite Jude Law as her husband, and Aaron Taylor-Johnson as the dashing Count Vronsky, and teams up again with filmmaker Joe Wright in their third film together after previous book-to-film collaborations with 2007′s “Atonement” and 2005′s “Pride & Prejudice.”

The film debuted at the Toronto film festival to warm reviews for Knightley‘s performance. Critics have said the film is overall technically and visually accomplished but lacks a cohesive emotional punch.

Adapted by playwright Tom Stoppard, Wright’s “Anna Karenina” takes place mostly in a theater setting and sees the title character more high-strung and less sympathetic than in previous incarnations.

The director said he cast Knightley, 27, because he felt she could tap into all the internal elements of Anna.

“She was 18 when we made ‘Pride & Prejudice‘, just a kid,” said Wright. “I’ve seen her develop from stunning ingénue to great actress. I felt that she was stronger, braver, even less conforming than she had been before.”

Knightley, newly engaged to musician James Righton, said she stood in moral condemnation over Anna,- “But am I any better than her? No.”

“I think we’re all her,” she added. “That is why she’s so terrifying. We all have bits of her personality within us. We can be wonderful, we can be loving, we can be full of laughter and full of life, and we can also be deceitful, malicious, needy and full of rage.”

WORLDS AWAY

While “Karenina” cements the perception of Knightley as a go-to actress for period pieces that also includes films like 2008′s “The Duchess” and 2004′s “King Arthur,” her career wasn’t always associated with roles grounded in the past.

Knightley spent the 1990s working in the British film and television industry before gaining international attention in the 2002 teenage soccer movie “Bend it Like Beckham.” After that, the actress said she was offered “an awful lot” of films in the teenage genre.

“The one thing that I knew right from the beginning was that I didn’t want to get into those high school movies,” she said. “I was never that interested in being a teenager. I was always interested in worlds away from my own.”

She credits the “massive” success of the “Pirates of the Caribbean” franchise – which saw her play Elizabeth Swan in the first three installments – as an integral part of her career and “a lot of the reason I was able to do other kinds of smaller films, because my name would help in financing them.”

Coming up, Knightley takes a turn away from costume dramas, in “Can A Song Save Your Life?” – a musical drama that sees her starring as an aspiring singer who meets a down-on-his-luck record producer, played by Mark Ruffalo. She’s currently shooting a reboot of the Tom Clancy thriller “Jack Ryan.”

“I got to the end of ‘Anna Karenina’ and I realized that I’d done about five years of work where I pretty much died in every movie and it was all very dark,” she said. “So I thought, okay, I want this year to be the year of positivity and pure entertainment.”

(Reporting by Zorianna Kit, editing by Christine Kearney and Patricia Reaney)

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Exclusive: U.S. drug testing firm probed for alleged fraud, intimidation

(Reuters) – A federal grand jury in Boston is investigating Millennium Laboratories of San Diego, a fast-growing private company selling urine drug testing services to pain clinics across the United States.

The company not only is under investigation by the Justice Department for allegations of health care fraud but also for intimidating former employees, one who was portrayed in a slideshow at a company meeting as a corpse in a body bag.

Two of the ex-employees, who had raised concerns about Millennium’s sales practices, also say they were followed for weeks by private investigators they believe were hired by the company.

No criminal charges have been filed, and Howard Appel, Millennium’s president, said the company is cooperating fully with a Justice Department subpoena and did nothing wrong.

Appel said the company is a leader in business ethics in the estimated $ 4 billion industry that helps doctors monitor the soaring use and abuse of pain drugs. He said the grand jury may also be investigating Millennium’s competitors.

Four witnesses, speaking publicly for the first time, described their grand jury testimony to Reuters in separate interviews. They said they were only asked about Millennium.

Reuters reviewed copies of five grand jury subpoenas seeking records on Millennium. Federal grand juries operate in secrecy to investigate matters that might constitute criminal conduct. Witnesses are free to describe what they said.

All four said they testified that Millennium was getting doctors to order unnecessary urine tests and charging excessive fees to Medicare and private insurers. Millennium has denied those accusations in civil lawsuits.

The body-bags picture was part of a PowerPoint presentation by Martin Price, the company’s general counsel, the former employees said. He showed it at a national sales meeting in January in which Price described Millennium’s success against its adversaries, according to one grand jury witness, former Millennium employee Jodie Strain.

Strain said grand jurors gasped when the body-bag image was projected onto a wall during her testimony October 3. She said the toe tag identified the corpse as Ed Zicari, a former regional manager Millennium was suing.

Appel declined to comment on the body bag picture. The United States attorney’s office in Boston also declined to comment.

Other slides that were part of Price’s presentation showed the logos of competing companies being riddled with bullet holes while gunfire sounded as if they were at a shooting range. Strain, a former senior sales representative, said the talk ended with an ominous warning: The company could not protect people who went “outside the Millennium family.”

Strain and another person who witnessed the PowerPoint presentation, in a separate interview, said more than 200 sales people in the audience fell silent at the body bag picture.

“I took it as a complete warning and threat to not only not go to the competition but don’t even question Millennium once you were no longer under their protection,” Strain said in an interview.

“That was definitely quite scary,” said another former employee who spoke on condition of anonymity. “It sent a very clear message not to mess with Millennium Labs.” That person also said Price had told the staff to put away cell phones, which could have been used to take pictures, before the presentation. Through a company spokesman, Price declined to comment.

Shortly after Price’s presentation, Strain said she told Zicari’s girlfriend about the slide show because she feared for their safety. Strain said she was fired the next week.

Zicari and his girlfriend, Lori Martin, a former sales representative at the company, were being sued by Millennium at the time for allegedly taking confidential information when they left the company. Both also accused the company of misconduct. The suit was settled last summer.

Zicari and Strain are currently pursuing suits against Millennium for wrongful termination and other claims.

Appel described them as “disgruntled former employees” who were fired for cause, not for questioning company practices. He described Zicari as “alive and well and living in Texas.”

Daniel Richman, a former federal prosecutor who teaches criminal law at Columbia University, said intimidating images such as a body bag representing a former employee could be “potent” evidence for obstruction charges or to argue bad intent on other charges if they are brought.

FOCUS ON SALES

The grand jury witnesses said most of their testimony focused on the company’s sales practices. They said Millennium had aggressive pitches to pain clinics to order varieties of urine tests even when they were not needed, at up to $ 1,600 a test. Urine tests can show doctors whether their patients are taking extra pain drugs and whether they are taking their prescribed drugs.

The federal investigation is led by Susan Winkler, former chief of the health care fraud unit for the U.S. attorney in Boston. That unit has recovered more than $ 8.5 billion in settlements, fines and judgments since 2009.

Winkler signed the Millennium subpoenas and questioned the witnesses before the grand jury. Christina Sterling, a spokeswoman for the U.S. attorney, would not confirm or deny that a case was before the grand jury.

Marc Raspanti, a partner in a Philadelphia corporate-defense law firm, said grand juries generally only consider matters in which prosecutors have a strong suspicion of criminal behavior. It would take probable cause to indict, and evidence beyond a reasonable doubt to convict.

Millennium has not been called to testify.

“Not yet, but when called to do so, we will,” Appel said.

The urine drug testing industry has taken off as the number of pain drug prescriptions in the United States grew from 30 million to 180 million a year over the last two decades, raising demand for monitoring, Appel said. The burgeoning industry has spawned two previously disclosed prosecutions and scores of suits and countersuits by companies accusing each other of wrongdoing.

In March, Calloway Laboratories of Woburn, Mass., paid $ 20 million to settle a Massachusetts state Medicaid case accusing it of paying kickbacks for unnecessary screening. Three former Calloway officials were sentenced to four years probation. And in 2010, Ameritox, based in Baltimore, Md., paid $ 16.3 million to settle similar claims by the federal government.

PREVIOUS DISPUTES

Millennium has been in heated legal disputes with both of those competitors, but at the same time, held itself out as a leader in industry accountability.

Millennium and its founder say they gave $ 2 million to the University of Washington in 2010 to study pain; $ 312,000 to a state of Florida program in 2010 to track prescription drugs; and $ 250,000 to a Duke University professor in April to host “a business summit on ethical practices in the medication monitoring industry.”

“This is a new industry,” Appel said. “A lot of companies are popping up, and it’s important that all companies are held accountable to make sure they comply with a standard of ethics and accountability.”

Millennium said in a civil suit filed September 18 that it received a Justice Department subpoena March 27 for “over 20 broad categories of company documents and materials.” Appel declined to be more specific. In the civil suit, Millennium is seeking up to $ 5 million from an insurance policy to defend itself in the federal investigation, while the insurer, Allied World Assurance, says it will only pay $ 100,000. The case is pending.

Appel said the company plays a vital role in helping doctors and patients. He declined to talk about Millennium’s size or revenues, but ex-employees say they were told it had grown into the biggest company in the sector.

The ex-employees told the grand jury that Millennium encouraged unnecessary and excessive testing in a variety of ways. They have made similar statements in civil suits.

Millennium sales tactics, they said, included a chart showing doctors how much they could boost their own income by increasing the number of urine drug tests they ordered. For instance, a $ 15 payment to test for one drug could balloon to about $ 800,000 a year if 20 people a day were tested and each urine sample was tested for 11 drugs, the chart said.

URINE CUP KICKBACKS?

Kelly Nelson, a former regional sales manager for Millennium, and Strain both said they testified to the grand jury in response to questions about a federal anti-kickback law. They said Millennium gave doctors free boxes of collection cups with embedded test strips — worth $ 3 to $ 6 per cup – to encourage referrals, which the prosecutor questioned under an anti-kickback measure called the Stark Law.

“I told the grand jury I objected to the frequency of testing and the free cups,” Nelson said. She said she was fired after complaining about the practices and is suing the company.

Millennium was founded in 2007 by Edward Slattery. His bio says he previously worked in real estate and broadcast and served eight years as Massachusetts commissioner of aeronautics. Last year, he won an Ernst & Young Entrepreneur of the Year award in San Diego. He declined to comment.

Price, Millennium’s general counsel, joined the company in 2011 after working as its outside counsel for the giant lawfirm Hogan Lovells. His biographical sketch says he had a “prolific record” defending companies against government investigations, class actions and other legal cases.

At the time of the sales meeting, Millennium was suing Martin and Zicari for allegedly giving confidential information to a lawyer for a competing company. The suit was settled in July. During that period, Martin and Zicari said private detectives they believe were hired by a law firm for Millennium trailed them in the Dallas area and parked outside their homes. Millennium declined to say whether it had hired the detectives.

“After a time you come to the conclusion they’re doing it to harass you more than anything else, or to intimidate you,” Martin said.

(This story has been corrected to fix spelling of name of company throughout)

(Reporting By Duff Wilson; editing by Blake Morrison)

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China’s commerce minister voted out in rare congress snub: sources

BEIJING (Reuters) – China‘s commerce minister was surprisingly blocked from a spot on the ruling Communist Party’s elite body during a conclave this week, sources said, a rare snub for an official that could raise questions about trade policies during his tenure.

The failure of Chen Deming to secure a seat on the 25-member Politburo marks one of the few surprises to emerge from the party’s five-yearly congress that wrapped this week with the anointing of a new slate of top leaders who will run the world’s second largest economy.

It is also the first time in more than two decades that an official designated for a Politburo spot has been voted out of the party’s 205-member Central Committee in elections. Central Committee membership is a prerequisite for a Politburo seat.

“Chen Deming was voted out during multi-candidate elections to the Central Committee,” one source told Reuters. State news agency Xinhua said there were eight percent more candidates than seats in a preliminary vote before the formal election on Wednesday.

Not being name as an alternate or full member during the party’s 18th congress means Chen, who was previously an alternate member, is almost certain to step down as commerce minister next March. Party regulations require cabinet ministers to be Central Committee members.

It is unclear why Chen, who was seen as a strong candidate for a vice premiership and at 63 is young enough to serve another five-year term under party rules, did not secure the votes for a seat on the Central Committee.

Tianjin Mayor Huang Xingguo, 58, who was elected a full member of the Central Committee, is front-runner to replace Chen as commerce minister, two sources with ties to the leadership said.

Ma Kai, 66, secretary general of the State Council, or cabinet, is tipped to become a vice premier now that Chen is out of the running, the sources said, requesting anonymity to avoid repercussions for discussing secretive elite politics.

Until now, a politician designated to become a Politburo member has not been barred from the Central Committee since 1987, when Deng Liqun, an ultra-conservative and reviled Marxist ideologue, was voted out at the 13th congress in a deeply embarrassing fall from grace.

Chen’s imminent retirement as commerce minister, a post he has held since taking over from now disgraced politician Bo Xilai in late 2007, would come as China faces growing tension with major trade partners in Europe and the United States and Chinese officials warn of increasing protectionism.

China’s leaders set a goal for 10 percent export growth this year, but it is more likely to come in at around 7 percent as the world has struggled to recover from financial crisis.

DEFENDED RECORD

Some experts suggest that Chen’s age was the main factor in his ouster.

“Minister Chen didn’t get onto the Central Committee because of his age. He was born in 1949 and that makes him too old to serve a full term,” said a Commerce Ministry official who declined to be identified.

But exceptions to the mandatory retirement age of 65 are often made for cabinet ministers and provincial governors and politicians can become a vice premier before they turn 68.

Du Qinglin, 66, a vice chairman to parliament’s advisory body, was just elected to the Central Committee.

At a news conference last week on the sidelines of the congress, Chen declined to answer questions about whether he was being considered for a vice premier post, but he defended the ministry’s record at the World Trade Organisation.

“When you consider the volume of trade cases in which China is involved, we’ve won quite a few,” Chen said. “But we haven’t bragged about our wins, whereas some of our foreign colleagues have trumpeted theirs.”

Analysts said Chen had a reputation as a competent and moderate minister, suggesting his performance may not have been at the center of his failure to secure a central committee seat, and despite the questions that are bound to arise, policy would probably not change.

“China’s overall trade policy is not set by the ministry, but by the central government,” said He Weiwen, director of the China-U.S. Trade Research Centre at the University of International Business and Economics in Beijing.

Under Chen, the ministry has increased its use of WTO legal processes, in part to gain experience. China has a relatively short history of participating in multilateral institutions and while it has lost most of WTO cases filed against it, most countries defending against complaints have the same problem.

Scott Kennedy, director of the Research Centre for Chinese Politics and Business at Indiana University said Chen’s departure from the Central Committee was puzzling and political motives could be at play.

“I don’t think he could be punished for his record as minister of commerce. I think overall he’s done a pretty decent job with the hand he has been dealt,” Kennedy said.

(Additional reporting by Lucy Hornby and Nick Edwards; Editing by Robert Birsel)

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