Three witnesses won’t be charged in Ohio football rape case: documents

(Reuters) – At least three members of a high school football team in Steubenville, Ohio, received word they would not be prosecuted just days before testifying against teammates accused of raping a 16-year-old girl, according to documents obtained by Reuters.

In letters from Ohio Attorney General Mike DeWine’s office addressed to each student’s lawyer, the state committed to not prosecuting Evan Westlake, Anthony Craig and Mark Cole, three witnesses for the prosecution.

But DeWine said on Thursday his office had made no deal with any of the witnesses involved in the case.

“We have offered nothing, made no promises to any witness in this case. … No deals have been cut with anybody,” DeWine told WTOV television in comments confirmed by his spokesman.

The case has unsettled Steubenville, a city of 19,000 near the Pennsylvania border where football has a powerful influence.

Community leaders have criticized authorities, voicing suspicion they have avoided charging more players who could have been involved in order to protect the school’s beloved football program.

Days after the letters were sent, all three players testified at a pre-trial hearing against teammates Ma’lik Richmond and Trenton Mays, both 16, who were charged with raping a classmate at a party attended by many teammates last August. Richmond and Mays were set to be tried as juveniles in February.

Although evidence in the criminal case showed each player “may not have conducted himself in a responsible or appropriate manner, his behavior did not rise to the level of any criminal conduct,” all three letters say. “Therefore, we will not prosecute your client for his actions on August 11-12, 2012.”

Walter Madison, an attorney who represents one of the students charged with rape, verified the letters’ authenticity, but declined to comment further.

The letters can protect the players from criminal charges, said John Burkoff, a criminal law professor at the University of Pittsburgh.

“If the government says that it won’t prosecute you and then changes its mind, you can argue that it can’t go back on that,” he said. “It’s constitutional estoppel (an impediment).”

The letter to Westlake, dated September 28, was signed by Ohio Associate Attorney General Marianne Hemmeter. The other two letters were signed by Ohio Associate Assistant Attorney General Jennifer Brumby and dated October 9, three days before the trio testified against their teammates. Brumby and Hemmeter conducted the questioning at that hearing.

Attorney General spokesman Dan Tierney said the state decided the students would go uncharged only for the crime of illegal use of a minor in nudity-oriented material.

“We would stand by the attorney general’s previous comments,” he told Reuters on Thursday.

The case shot to national prominence last week when the online activist group Anonymous made public a picture of the purported rape victim being carried by her wrists and ankles by two young men. Anonymous also released a video that showed several other young men joking about an assault.

(Editing by Daniel Trotta and Peter Cooney)

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Spielberg's in at Oscars, Bigelow, Affleck are out

BEVERLY HILLS, Calif. (AP) — Steven Spielberg had a great day at the Academy Awards nominations, where his Civil War saga "Lincoln" led with 12 nominations.

It was not so great for Kathryn Bigelow, Tom Hooper and Ben Affleck, whose films did well but surprised — dare we say shocked? — Hollywood by failing to score directing nominations for the three filmmakers.

"I just think they made a mistake," said Alan Arkin, a supporting-actor nominee for Affleck's Iran hostage-crisis tale "Argo."

"Lincoln," ''Argo," Bigelow's Osama bin Laden manhunt thriller and Hooper's Victor Hugo musical "Les Miserables" landed among the nine best-picture contenders Thursday.

Also nominated for the top honor were the old-age love story "Amour"; the independent hit "Beasts of the Southern Wild"; the slave-revenge narrative "Django Unchained"; the shipwreck story "Life of Pi"; and the lost-souls romance "Silver Linings Playbook."

A mostly predictable bunch. But it's baffling how Bigelow — the first woman to earn the directing Oscar for her 2009 best-picture winner "The Hurt Locker" — missed out on a nomination for one of last year's most-acclaimed films.

"Yes, it was a surprise," Spielberg said of Bigelow. "But I've been surprised myself through the years, so I know what it feels like."

Spielberg was snubbed for a directing slot on 1985's "The Color Purple," which earned 11 nominations, including best picture. He also was overlooked for director on 1975's "Jaws," another best-picture nominee.

"I never question the choices the academy branches make, because I've been in the same place that Kathryn and Ben find themselves today," said Spielberg, who finally got his Oscar respect in the 1990s with best-picture and director wins for "Schindler's List" and another directing trophy for "Saving Private Ryan." ''I'm grateful if I'm nominated, and I've never felt anything other than gratitude even when I'm not — gratitude for at least having been able to make the movie. So I never question the choices."

Especially this time, when "Lincoln" has positioned itself as the film to beat at the Feb. 24 Oscars. Its nominations include best actor for Daniel Day-Lewis for his monumental performance as Abraham Lincoln, supporting actress for Sally Field as Mary Todd Lincoln and supporting actor for Tommy Lee Jones as abolitionist firebrand Thaddeus Stevens.

Oscar directing contenders usually are identical or at least line up closely with those for the Directors Guild of America Awards. But only Spielberg and "Life of Pi" director Ang Lee made both lists this time.

The Directors Guild also nominated Affleck, Bigelow and Hooper, but the Oscars handed its other three slots to David O. Russell for "Silver Linings Playbook" and two real longshots: veteran Austrian filmmaker Michael Haneke for "Amour" and newcomer Benh Zeitlin, who made his feature debut with "Beasts of the Southern Wild."

Zeitlin, whose low-budget, dream-like film about a wild child in Louisiana's flooded backwoods won the top honor at last year's Sundance Film Festival, said he never expected to be competing "alongside the greatest filmmakers alive."

"I'm completely freaking out," Zeitlin said. "Those guys taught me how to make films. The VHS pile that was on the VCR when I was born was past Spielberg movies, and that's why I started wanting to do this, was watching them thousands and thousands of times."

Other nominees were caught off guard over how the category shook out.

"I would be lying if I didn't say I was surprised," Russell, a past nominee for "The Fighter," said about Bigelow.

Lee, who won the directing Oscar for "Brokeback Mountain," agreed that there were surprises — but pleasant ones, particularly for Zeitlin's inclusion.

"Newcomers, veterans, a European," Lee said. "It's great company, and it's an honor to line up with them, and encouraging because there is a newcomer."

Colleagues of snubbed filmmakers were not so happy.

"That put a damper on my enthusiasm," ''Argo" co-star Arkin said of Affleck, an A-lister who's arguably proving himself a better director than actor. "I thought his work was the work of an old master, not somebody with just two films under his belt. I thought it was an extraordinary piece of directing."

"I would have loved him to have been recognized in this," Hugh Jackman, a best-actor nominee as Hugo's tragic hero Jean Valjean for "Les Miserables," said of director Hooper. "But no one will be able to take away the achievement, nor really that the eight nominations that 'Les Miz' has are more shared with him than with anyone."

Composer Alexandre Desplat, who wrote the music for "Zero Dark Thirty" and "Argo" and earned a best-score nomination for the latter, said he was puzzled over Affleck and Bigelow's exclusion.

"I think they both deserved to be nominated," Desplat said. "Unfortunately, I don't decide."

"Zero Dark Thirty" has had backlash in Washington, where some lawmakers say it falsely suggests that torture produced a tip that led the U.S. military to Bin Laden. It's hard to imagine that affecting the film's Oscar nominations, though, given Hollywood's history of playing loose with facts in depicting true-life stories.

The academy's directing snubs virtually take "Argo," ''Les Miserables" and "Zero Dark Thirty" out of the best-picture race, since a movie almost never wins the top prize if the filmmaker is not nominated. It can happen — 1989's "Driving Miss Daisy" did it — but a directing nomination usually goes hand-in-hand with a best-picture win.

The nominations held other surprises. "Amour" won the top prize at last May's Cannes Film Festival but mainly was considered a favorite for the foreign-language Oscar. It wound up with five nominations, the same number as "Zero Dark Thirty," which came in with expectations of emerging as a top contender.

Along with best-picture, director and foreign-language film, "Amour" picked up nominations for Haneke's screenplay and best actress for Emmanuelle Riva as an ailing, elderly woman tended by her husband.

"It's the last stage of my life, so this nomination is a gift to me, a dream I could never had imagined," Riva said. "Michael's talent is to make the film real. ... That's why it touched the world. We are all little, fragile people on this earth, sometimes nasty, sometimes generous."

Riva is part of a multi-generational spread: At 85, Riva is the oldest best-actress nominee ever, while 9-year-old Quvenzhane Wallis is the youngest ever for her role as the spirited bayou girl in "Beasts of the Southern Wild."

Spielberg matched his personal Oscar best as "Lincoln" tied the 12 nominations that "Schindler's List" received.

Two of Spielberg's stars could join the Oscar super-elite. Both Day-Lewis and Field have won two Oscars already. A third would put them in rare company with previous triple winners Ingrid Bergman, Walter Brennan, Jack Nicholson and Meryl Streep. Katharine Hepburn holds the record with four acting Oscars.

A best-picture win would be Spielberg's second, while another directing win would be his third, a feat achieved only by Frank Capra and William Wyler, who each earned three directing Oscars, and John Ford, who received four.

"Lincoln" also was the ninth best-picture nominee Spielberg has directed, moving him into a tie for second-place with Ford. Only Wyler directed more best-picture nominees, with 13.

"I think Steven is a full-fledged genius. I think he has transformed the motion-picture industry more than once, and he's constantly pushing the envelope and changing," Field said. "He stands alone. And he has the most profound respect, and he's a scholar of John Ford and William Wyler and many others. ... He's a scholar of all of this because he's so endlessly curious."

___

AP entertainment writers Christy Lemire, Sandy Cohen, Anthony McCartney and Derrik Lang in Los Angeles and AP writers Jill Lawless in London and Thomas Adamson in Paris contributed to this report.

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Parental Consent Rule May Proceed for a Circumcision Ritual, a Judge Says

New York City health officials may proceed temporarily with a plan to require parental consent before an infant may undergo a particular Jewish circumcision ritual, a federal judge ruled Thursday.

City officials say 12 cases of herpes simplex virus have likely resulted from the procedure, known as metzitzah b’peh, since 2000, including one Brooklyn case reported this week. Two infants died, and two suffered permanent brain damage. Most Jews no longer practice metzitzah b’peh, in which the circumciser uses his mouth to suck blood from the wound, but it remains common among some ultra-Orthodox communities.

Citing the risk of infection, health officials in September introduced a regulation that would require parents to provide written consent stating that they were aware of the health risks.

But the Central Rabbinical Congress of the United States and Canada, Agudath Israel of America, and the International Bris Association sued in October to stop the rule from taking effect, calling it an infringement of their constitutional rights. They also denied the procedure posed a risk and asked a federal court to put the rule on hold while the litigation proceeded.

In denying the request for a preliminary injunction, Judge Naomi Reice Buchwald of the United States District Court for the Southern District wrote that the risks were clear.

“In light of the quality of the evidence presented in support of the regulation, we conclude that a continued injunction against enforcement of the regulation would not serve the public interest,” she wrote.

City lawyers said they were gratified by the ruling, but Andrew Moesel, a spokesman for the plaintiffs, said the groups would appeal. “We continue to believe that this case is a wrongful and unnecessary intrusion into the rights of freedom of religion and speech,” he said.

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Herbalife fires back at hedge fund giant

Herbalife Chief Executive Michael Johnson was tired of a powerful hedge fund manager bad-mouthing his company.

So he put on a show Thursday before hundreds of investors at the Four Seasons hotel in Manhattan, rebutting claims that the Los Angeles nutritional supplement company is a pyramid scheme. The presentation accused hedge fund giant Bill Ackman of lies and snobbery, compared Herbalife to the Girl Scouts and featured the company's president entreating that "the world needs more hugs."

Who says Wall Street is more boring these days?

The company's two-hour defense of itself is the latest in a battle since Ackman's Pershing Square Capital Management labeled Herbalife as "the best-managed pyramid scheme in the history of the world," during a similar presentation he made late last month. The outspoken fund manager has made a $1-billion bet that the stock would plunge in value.

"Just the very nature of the 'battle' has never been seen in the history of the Earth," said Tim Ramey, an analyst with D.A. Davidson and Co. "This was a very, very orchestrated attack."

Herbalife has hired a battalion of researchers to prove that it has a legitimate and stable business model. Executives held back no punches Thursday before a crowd of investors and analysts, labeling Ackman an elitist who made "false statements," "distortions" and "misrepresentations" about Herbalife and vowing to use "every means available to protect our reputation."

"In recent weeks, there's been a tremendous amount of misinformation about Herbalife," Johnson said. "This misinformation has found its way into the marketplace. Therefore we are sitting with you to correct some of this today."

In addition to outside experts brought in to bolster Herbalife's claims, company executives went through Pershing's presentation last month, disputing individual slides.

To the complaint that Herbalife is not focused on its products, Chief Operating Officer Rich Goudis showed figures indicating that the company spends millions on research and development.

To a Pershing slide that accused Herbalife of having a small distribution network, the company countered with a map of more than 300 company-run distribution points and showing its expansion in Indonesia and South Korea.

To a Pershing slide showing Herbalife products as more expensive than competitors' per 200-calorie servings, the company offered its own slide that compared the prices of the products per unit and showed costs in line with those of its competitors.

"Pershing intentionally used a misleading metric," Goudis said. "They did this to knowingly create a false impression."

They paraded out experts.

Kim Rory, representing Lieberman Research Worldwide, said distributors she surveyed had joined Herbalife because they wanted to get a discount on the products for personal use. Few signed up because they thought they'd make a large amount of money, and about two-thirds would recommend being a distributor to friends, she said.

Anne Coughlan, a professor at the Kellogg School of Management, defended Herbalife's marketing structure and disputed the allegation that it is a pyramid scheme.

"I didn't even see a scintilla of evidence that would suggest to me any hint that this company is running anything but a legitimate multi-level marketing program," she said.

Perhaps the most personal attacks came from Herbalife President Des Walsh, who said he was "highly offended" by Ackman's portrayal of Herbalife's nutrition clubs and defended the company for bringing nutritional products to poor neighborhoods.

After showing a video featuring happy distributors in crowded nutrition clubs, Walsh suggested that Ackman was out of touch with real America.

"This doesn't look like a country club in Westchester, Connecticut, but let me tell you, inside this club is real America," he said. (Earlier in the presentation, Walsh explained that people come to the club for a hug, adding, "the world needs more hugs.")

His comments echo a note sent out last week by D.A. Davidson analyst Ramey, who has a "buy" rating on Herbalife.

"Perhaps where Mr. Ackman lives he never sees a car with the 'Lose weight, ask me how' message across the rear window," he wrote. "I can tell Mr. Ackman that in my hometown, which is not quite Chappaqua, Herbalife is an iconic and widely recognized brand."

Ackman responded quickly Thursday, saying that Herbalife's presentation "distorted, mischaracterized and outright ignored large portions of our presentation," and that he had been contacted by people who provided more information into Herbalife's business practices, which he will soon reveal.

The unusual fight on Wall Street ramped up in December, when Ackman laid out his case against Herbalife in a three-hour, 200-plus slide presentation. He questioned whether the company was focused on recruiting new distributors, who pay to join the company, instead of on selling products. His announcement sent the company's stock down 36% and turned heads when analysts heard he'd sold short 20 million Herbalife shares.

Ackman's biggest beef with Herbalife focused on its so-called multi-level marketing model, which he said led to only those at the top of the company making money. More than 90% of distributors break even or lose money, he said. Ackman even drew UCLA into the controversy, saying Herbalife mentioned a lab at the university multiple times during each investor presentation to lend itself legitimacy.

Herbalife shares recovered some of their losses in the weeks after Ackman's presentation as some investors expressed confidence in the company. Hedge fund Third Point said it was taking an 8.2% stake in Herbalife, betting that the company would survive Ackman's assault.

Analysts at Thursday's meeting seemed supportive of Herbalife, with some expressing their belief in the company during a question-and-answer period after the presentation. One analyst urged the company to fight back against Pershing Square's method of "slandering" the company.

"It was a good, thorough presentation that certainly accomplished the job of defending the legitimacy of their business model," Ramey said.

Still, not all investors were convinced by the presentation. Herbalife's stock closed down 71 cents, or 1.8%, at $39.24. That may be because on Wednesday the Securities and Exchange Commission opened an investigation into Herbalife, according to published reports.

alana.semuels@latimes.com

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Irvine City Council overhauls oversight, spending on Great Park

Capping a raucous eight-hour-plus meeting, the Irvine City Council early Wednesday voted to overhaul the oversight and spending on the beleaguered Orange County Great Park while authorizing an audit of the more than $220 million that so far has been spent on the ambitious project.

A newly elected City Council majority voted 3 to 2 to terminate contracts with two firms that had been paid a combined $1.1 million a year for consulting, lobbying, marketing and public relations. One of those firms — Forde & Mollrich public relations — has been paid $12.4 million since county voters approved the Great Park plan in 2002.

"We need to stop talking about building a Great Park and actually start building a Great Park," council member Jeff Lalloway said.

The council, by the same split vote, also changed the composition of the Great Park's board of directors, shedding four non-elected members and handing control to Irvine's five council members.

The actions mark a significant turning point in the decade-long effort to turn the former El Toro Marine base into a 1,447-acre municipal park with man-made canyons, rivers, forests and gardens that planners hoped would rival New York's Central Park.

The city hoped to finish and maintain the park for years to come with $1.4 billion in state redevelopment funds. But that money vanished last year as part of the cutbacks to deal with California's massive budget deficit.

"We've gone through $220 million, but where has it gone?" council member Christina Shea said of the project's initial funding from developers in exchange for the right to build around the site. "The fact of the matter is the money is almost gone. It can't be business as usual."

The council majority said the changes will bring accountability and efficiencies to a project that critics say has been larded with wasteful spending and no-bid contracts. For all that has been spent, only about 200 acres of the park has been developed and half of that is leased to farmers.

But council members Larry Agran and Beth Krom, who have steered the course of the project since its inception, voted against reconfiguring the Great Park's board of directors and canceling the contracts with the two firms.

Krom has called the move a "witch hunt" against her and Agran. Feuding between liberal and conservative factions on the council has long shaped Irvine politics.

"This is a power play," she said. "There's a new sheriff in town."

The council meeting stretched long into the night, with the final vote coming Wednesday at 1:34 a.m. Tensions were high in the packed chambers with cheering, clapping and heckling coming from the crowd.

At one point council member Lalloway lamented that he "couldn't hear himself think."

During public comments, newly elected Orange County Supervisor Todd Spitzer chastised the council for "fighting like schoolchildren." Earlier this week he said that if the Irvine's new council majority can't make progress on the Great Park, he would seek a ballot initiative to have the county take over.

And Spitzer angrily told Agran that his stewardship of the project had been a failure.

"You know what?" he said. "It's their vision now. You're in the minority."

mike.anton@latimes.com

rhea.mahbubani@latimes.com

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Three top U.S. wireless carriers to embrace BlackBerry 10

LAS VEGAS (Reuters) – Three of the top U.S. cellphone carriers signaled this week that they would support Research In Motion’s BlackBerry 10 products, the first of which are due to be unveiled Jan 30, offering a hopeful sign for RIM’s comeback effort.

Executives at Verizon Communications , AT&T Inc and T-Mobile USA all said they are looking forward to the devices, which will be crucial for RIM’s chances of regaining lost ground from rivals such as Apple Inc and Samsung Electronics .

“We’re hopeful its going to be a good device,” Lowell McAdam, chief executive of Verizon Communications, majority owner of the biggest U.S. mobile service Verizon Wireless.

“We’ll carry it,” McAdam said in an interview at the Consumer Electronics Show in Las Vegas.

BlackBerry 10 is RIM’s next-generation mobile operating platform and it is preparing to launch new smartphones later this month. Word that major carriers will offer the devices is good news for RIM.

RIM, which once commanded the lead in the smartphone market, has rapidly lost ground to Apple’s iPhone and Samsung’s line of Galaxy products, especially in North American and European markets, as customers abandon its aging BlackBerry devices.

It has been testing the new BlackBerry 10 devices with carriers so they can assess their compatibility with networks.

No. 4 U.S. mobile provider T-Mobile USA, a unit of Deutsche Telekom , also plans to carry the new BlackBerry 10.

“We’re extremely optimistic that it’s going to be a successful product and our business customers are extremely interested in it,” Chief Executive John Legere said.

AT&T has promised to support the BlackBerry 10 platform, according to Chief Marketing Officer David Christopher, but he would not discuss specific devices.

However, AT&T handset executive Jeff Bradley made it clear that the No. 2 U.S. mobile operator would carry the phone.

“It’s logical to expect our current (BlackBerry) customers will have the best BlackBerry devices to choose from in the future,” Bradley said.

(Reporting By Sinead Carew; Editing by Cynthia Osterman)

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Other bidders contest Tully's sale to Dempsey

SEATTLE (AP) — A company that teamed up with Starbucks Corp. to bid for the Tully's Coffee chain filed an objection Wednesday challenging the winning offer made by "Grey's Anatomy" star Patrick Dempsey.

AgriNurture Inc. said it's still willing to proceed with its combined bid with Starbucks of about $10.6 million. The bid from Dempsey's company, Global Baristas LLC, was for $9.2 million.

The proposed sale goes before a bankruptcy judge in Seattle on Friday.

Starbucks has said it wants to convert some of Tully's cafes to its own brand. AgriNurture, based in the Philippines, would run the rest under the Tully's name.

Cliff Burrows, who heads Starbucks' Americas business, said he's confident the company put forth the best bid with its companion bidder to give shareholders the most value.

Dempsey said he's confident the court will decide that Global Baristas submitted "the highest and best bid."

AgriNurture, which also does business in the U.S. as Earthright Holdings Inc., already operates Tully's franchises in Asia.

Another bidder has also filed an objection to the sale, saying the rules changed in the middle of the auction.

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Pap Test May Prove Useful at Detecting More Types of Cancer, Study Suggests

The Pap test, which has prevented countless deaths from cervical cancer, may eventually help to detect cancers of the uterus and ovaries as well, a new study suggests.

For the first time, researchers have found genetic material from uterine or ovarian cancers in Pap smears, meaning that it may become possible to detect three diseases with just one routine test.

But the research is early, years away from being used in medical practice, and there are caveats. The women studied were already known to have cancer, and while the Pap test found 100 percent of the uterine cancers, it detected only 41 percent of the ovarian cancers. And the approach has not yet been tried in women who appear healthy, to determine whether it can find early signs of uterine or ovarian cancer.

On the other hand, even a 41 percent detection rate would be better than the status quo in ovarian cancer, particularly if the detection extends to early stages. The disease is usually advanced by the time it is found, and survival rates are poor. About 22,280 new cases were expected in the United States in 2012, and 15,500 deaths. Improved tests are urgently needed.

Uterine cancer has a better prognosis, but still kills around 8,000 women a year in the United States.

These innovative applications of the Pap test are part of a new era in which advances in genetics are being applied to the detection of a wide variety of cancers or precancerous conditions. Scientists are learning to find minute bits of mutant DNA in tissue samples or bodily fluids that may signal the presence of hidden or incipient cancers.

Ideally, the new techniques would find the abnormalities early enough to cure the disease or even prevent it entirely. But it is too soon to tell.

“Is this the harbinger of things to come? I would answer yes,” said Dr. Bert Vogelstein, director of the Ludwig Center for Cancer Genetics and Therapeutics at Johns Hopkins University, and a senior author of a report on the Pap test study published on Wednesday in the journal Science Translational Medicine. He said the genomes of more than 50 types of tumors had been sequenced, and researchers were trying to take advantage of the information.

Similar studies are under way or are being considered to look for mutant DNA in blood, stool, urine and sputum, both to detect cancer and also to monitor the response to treatment in people known to have the disease.

But researchers warn that such tests, used for screening, can be a double-edged sword if they give false positive results that send patients down a rabbit hole of invasive tests and needless treatments. Even a test that finds only real cancers may be unable to tell aggressive, dangerous ones apart from indolent ones that might never do any harm, leaving patients to decide whether to watch and wait or to go through surgery, chemotherapy and radiation with all the associated risks and side effects.

“Will they start recovering mutations that are not cancer-related?” asked Dr. Christopher P. Crum, a professor at Harvard Medical School who was not involved in the research.

But he also called the study a “great proof of principle,” and said, “Any whisper of hope to women who suffer from endometrial or ovarian cancer would be most welcome.”

DNA testing is already performed on samples from Pap tests, to look for the human papillomavirus, or HPV, which causes cervical cancer. Dr. Vogelstein and his team decided to try DNA testing for cancer. They theorized that cells or DNA shed from cancers of the ovaries and the uterine lining, or endometrium, might reach the cervix and turn up in Pap smears.

The team picked common mutations found in these cancers, and looked for them in tumor samples from 24 women with endometrial cancer and 22 with ovarian cancer. All the cancers had one or more of the common mutations.

Then, the researchers performed Pap tests on the same women, and looked for the same DNA mutations in the Pap specimens. They found the mutations in 100 percent of the women with endometrial cancer, but in only 9 of the 22 with ovarian cancer. The test identified two of the four ovarian cancers that had been diagnosed at an early stage.

Finally, the team developed a test that would look simultaneously for cancer-associated mutations in 12 different genes in Pap samples. Used in a control sample of 14 healthy women, the test found no mutations — meaning no false-positive results.

Dr. Luis A. Diaz, the other senior author of the report and an associate professor of oncology at Johns Hopkins, called the research a step toward a screening test that at first blush appears very effective at detecting endometrial cancer, though obviously less so at finding ovarian cancer.

“Probably one of the most exciting features of this approach,” Dr. Diaz said, “is that we wanted a test that would seamlessly integrate with routine medical practice that could be utilized with the same test that women get every day all over the world, the Pap smear.”

But, he added: “We can’t say it’s ready for prime time. Like all good science, it needs to be validated.”

He and other members of the team said it might be possible to improve the detection rate for ovarian cancer by looking for more mutations and by changing the technique of performing Pap tests to increase the likelihood of capturing cells from the ovary. The change might involve timing the test to a certain point in a woman’s monthly cycle, using a longer brush to collect cells from deeper within the cervix or prescribing a drug that would raise the odds of cells being shed from the ovary.

The technique also needs to be tested in much larger groups of women, including healthy ones, to find out whether it works, particularly at finding cancers early enough to improve survival. And studies must also find out whether it generates false positive results, or identifies cancers that might not actually need to be treated.

Michael H. Melner, a program director in molecular genetics and biochemistry for the American Cancer Society, called the research “very promising,” in part because it is based on finding mutations.

“It tells you not just that cancer is there, but which mutation is there,” Dr. Melner said. “As we learn more and more about which mutations are associated with more or less severe forms of cancer, it’s more information, and possibly more diagnostic.”

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Consumer bureau to unveil new mortgage standards

In sweeping new rules aimed at fixing the home lending market, the Consumer Financial Protection Bureau on Thursday will define a "qualified mortgage" — one a borrower can actually be expected to pay back — while in effect banning a slew of dicey loans at the center of the financial crisis.

The regulations, among the most important handed down yet by the 18-month-old agency, also aim to loosen the choking loan standards that have prevailed since the housing crash. They do so by limiting bankers' liability for prime loans that can be sold to government-backed mortgage giants such as Fannie Mae.

The rules, to be phased in over the coming year, aim to improve access for creditworthy borrowers to today's historically low-interest loans and to create a stable and predictable housing finance system for banks and their customers alike.

Complying with the rules would provide a "safe harbor" shielding lenders from being sued for one of the most frequent and bitter complaints of the subprime era: sticking borrowers with unaffordable loans, then selling off the loans — and the risk.

One leading consumer advocate said the bureau had gone too far out of its way to accommodate bankers, whose loose lending had triggered the foreclosure crisis and the worst economic collapse since the 1930s.

The bureau's action "invites abusive lending and erodes the progress made by Dodd-Frank," the landmark regulatory reform bill passed after the financial crisis, said Alys Cohen, an attorney with the National Consumer Law Center.

"The safe harbor the bureau has afforded for prime loans provides absolute shelter to lenders who knowingly make unaffordable loans, in direct violation of congressional intent," said Cohen, who was to appear at a home lending forum Thursday in Baltimore with bureau officials.

The safe harbor provision shields lenders only from lawsuits over borrowers' ability to pay. Consumers would still be able to pursue claims that lenders violated other laws, such as those governing deceptive advertising or wrongful foreclosures.

The rules met with relief from mortgage bankers, who had feared Draconian restrictions from the bureau, created by consumer advocate Elizabeth Warren. The former Harvard law professor, newly sworn in as a U.S. senator, was so at odds with the industry and congressional Republicans that President Obama backed away from appointing her to head the agency after tapping her to set it up.

"The goal of this regulation, ensuring that borrowers receive loans that they can repay, is in everyone's best interest. We cannot, and should not, go back to the high-risk lending environment of the early 2000s," Debra W. Still, chairwoman of the Mortgage Bankers Assn., said in a statement.

Consumer bureau Director Richard Cordray, who was scheduled to formally unveil the rules Thursday, said the aim was to achieve "the true essence of 'responsible lending.'"

"The American dream of homeownership was shaken to its foundations," Cordray said in prepared remarks. "But, in the wake of the financial crash, we have been experiencing a housing market that is tough on people in just the opposite way — credit is achingly tight."

The qualified mortgage rules rest on the principle of ability to pay, the goal Congress told the bureau to implement in the regulatory reform law passed after the financial crisis. Senior officials at the consumer agency briefed reporters on it Wednesday.

The rules notably limit a potential borrower's total payments, including those for property taxes, fire insurance and non-housing debt such as credit cards, to 43% of gross income.

During the housing boom, aggressive lenders had set the bar at 50% or higher for mortgage payments alone — disregarding other debt — and then allowed borrowers to qualify by merely stating their incomes, with no documentation.

The rules simultaneously aim to ban mainstream use of the riskiest practices of the housing bubble, such as loans made without checking tax returns and pay stubs; loans with payments so low that the loan balance rises instead of falls; and qualifying borrowers based on low "teaser" rates instead of fully adjusted payments.

Certain subprime loans to borrowers with credit problems could be qualified mortgages, but not the loosely underwritten loans that helped fuel the housing boom and bust.

Lenders would still have to determine that borrowers could afford to repay such loans, which would carry significantly higher interest rates than prime mortgages. They also could be challenged more easily in court — for instance, by borrowers claiming a lender gave them a loan that left them too little money to live on, even though their debt payments were only 43% of their incomes.

Lenders are expected to continue lending outside the guidelines in some cases. For example, jumbo mortgages — those too big for purchase by Fannie and Freddie — are often written to affluent borrowers who for a variety of reasons choose to pay interest only for a period of time. There's no reason that practice should stop, senior consumer bureau officials said.

Lenders will be given a year to phase in compliance with the new rules. Some question certain limits imposed by the regulations, such as limits of 3% on points and fees that borrowers could be charged upfront, and the 43% cap on total debt payments.

The 3% fee limit would be hard to meet in some cases, said the mortgage trade group's Still.

Laguna Beach mortgage broker Richard Cirelli said that the debt ratio could pose problems, especially in expensive real estate markets.

"Capping the debt limit at 43% is going to create some problems," Cirelli said. "Especially for first-time buyers in California. It's still pretty expensive here."

scott.reckard@latimes.com

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Judge rejects bid to shut Oakland pot dispensary

OAKLAND — The nation's largest medical marijuana dispensary won a round in federal court this week, with a judge rejecting efforts by Harborside Health Center's landlords in Oakland and San Jose to immediately shut down operations.

The property owners have been under pressure since federal prosecutors last summer threatened to seize the buildings, arguing that pot sales were in violation of federal law. But in her ruling, Chief Magistrate Judge Maria-Elena James said that "any argument about the urgency of stopping Harborside's activity rings hollow" — since the landlords had known for years that it was a medical cannabis dispensary.

Allowing Harborside to stay open while a fuller legal airing of the issues took place, James continued, would not cause the landlords irreparable harm.

In her ruling in U.S. District Court in San Francisco, James also found that the property owners had no legal standing to seek an immediate end to sales at the dispensary by contending they violated the federal Controlled Substances Act.

Harborside — which serves more than 108,000 patients — now will have the opportunity to battle the federal civil forfeiture actions in court.

"We look forward to proving our case in front of a jury, and continue to believe we will prevail," Harborside's executive director, Steve DeAngelo, said in a statement.

The city of Oakland also has sued to prevent the property forfeiture, contending that federal prosecutors had missed a five-year statute of limitations and misled city officials with promises that they would not go after dispensaries complying with state and local laws.

In her ruling, James ordered Oakland's case be coordinated with the forfeiture cases.

Monday's ruling sets the stage for what could be a precedent-setting battle over clashing federal and state marijuana laws.

Cedric Chao, an attorney for Oakland, has argued that closure of the dispensaries would deprive the city of tax revenue and force Harborside's patients into the underground market, driving up crime.

"The city of Oakland could not be more pleased" by James' ruling, Chao said. "The patients can continue to get the medicine. They won't be thrown in the streets. There won't be an immediate public health crisis. There won't be a public safety crisis."

The U.S. attorney's office repeatedly has declined to comment on the ongoing litigation. Prosecutors have filed a motion to toss Oakland's suit, contending the city has no legal standing to weigh in. That issue will be heard at a hearing on Jan. 31.

lee.romney@latimes.com

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