Child porn suspect indicted by federal grand jury









A North Hills woman whom authorities allege plied a young girl with crack cocaine and photographed her being sexually abused by an older man was indicted Tuesday on federal charges of producing child pornography and sex trafficking.


Letha Montemayor Tucker was named Tuesday in a four-count indictment returned by a federal grand jury. If convicted of all the charges, Tucker would face a mandatory minimum federal sentence of 10 years and could get up to life in prison, authorities said.


The charges come a month after authorities sought the public's help in the investigation by releasing photographs of a man and woman depicted in a set of widely circulated child pornography photos.





Tips started pouring in immediately after the photos were released, investigators said.


Tucker, who goes by the name Butterfly, was located about 10 hours after the release of the photos and taken into custody, said Claude Arnold, special agent in charge for Homeland Security Investigations in Los Angeles, a division of U.S. Immigration and Customs Enforcement.


The alleged victim, who was about 12 when the photos were taken, was found within a week of the case going public, Arnold said. She is an adult now and is cooperating with authorities, he said.


In addition to photographing the girl being sexually abused by the man, authorities said, Tucker also committed sex acts with the alleged victim.


The photos were part of a child pornography collection known as the "Jen Series."


The 40-plus photos were first discovered by investigators in the Chicago area in 2007. Investigators said images in the series have been reported about 300 times and have been found on computers across the country.


The victim "didn't even know these images were out there," Arnold said.


"The horror of child pornography is it's for life, the victimization," Arnold said. "Once the photos are there in cyberspace, they're there forever."


The girl, identified in court records only by the initials J.M.M., lived in the same Los Angeles County residential hotel as Tucker, who worked as a prostitute, authorities said.


Around 2000 or 2001, the girl stopped attending school regularly and spent more and more time in Tucker's room, smoking crack cocaine Tucker provided, according to the indictment.


The girl was present when Tucker engaged in prostitution with clients and was usually high when this happened, authorities allege. Tucker instructed the child to take off her clothes in front of the clients, prosecutors alleged in court papers.


The faces of Tucker and the girl are "clearly visible" in the photos, according to the indictment. Tucker had an eyebrow piercing and a tattoo of a sleeping cat behind her shoulder, which made her easier to identify, authorities said.


The face of the man, however, is blacked out in the photographs. Authorities are still trying to identify the man, Arnold said.


"Obviously, we want him also to answer for his crimes," Arnold said.


Arnold said the alleged victim is "going to be dealing with this for a long time."


Now that she has been identified, she will receive a victim notification every time one of the images turns up in an investigation, he said.


Tucker is being held without bond and is scheduled to be arraigned in federal court on Feb. 13. Her attorney could not be reached for comment.


hailey.branson@latimes.com





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Fox cuts ties to commentator Dick Morris


NEW YORK (AP) — Political commentator Dick Morris' prediction of a huge landslide for Mitt Romney didn't pan out. And now he's lost his job at Fox News Channel.


Network spokeswoman Dana Klinghoffer said Tuesday that Fox wasn't renewing its contract with Morris, who was steadfast throughout the campaign in his prediction of a big Romney win over President Barack Obama. He has made few appearances on Fox since the election.


Morris had also been criticized for accepting paid advertisements on his website from candidates that he discussed on the air at Fox.


On his website, Morris said he'll be appearing on CNN's Piers Morgan show Wednesday to talk politics.


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Well: Getting Into Your Exercise Groove

Phys Ed

Gretchen Reynolds on the science of fitness.

This isn’t meant as an insult, but you are physiologically lazy. So am I. So are we all. Using treadmill testing, scientists have definitively established that, like other animals, humans naturally aim to use as little energy as possible during most movement. So when we walk or run, our bodies tend to choose a particular cadence, a combination of step length and step frequency, that allows us to move at any given speed with as little physiological effort as possible.

How we pick that cadence, though, and whether we can or would even want to change it has been unclear. But a series of recent studies involving runners, walkers, metronomes and virtual reality curtains suggests that while the tug of physiological laziness is strong, it can be controlled, or at least tweaked, with some conscious effort — and perhaps your iPhone playlist.

In the first and most revelatory of the studies, physiologists at Simon Fraser University in British Columbia asked adult volunteers to walk on a treadmill at an easy pace. Using motion capture technology, the scientists determined how many steps each person was taking per minute at this speed. A person’s pace depends, of course, on both step length and step frequency. But because the two are inextricably entwined — lengthen your stride and you’ll take fewer steps over a given distance — studying one provides sufficient information about the other, and frequency is easier to enumerate.

After establishing each volunteer’s preferred step frequency, the scientists then sped up or slowed the treadmill, and the researchers measured how quickly people’s legs responded.

The body, remember, wants things to be easy. When you increase or decrease the speed of your walking or running, various physiological changes occur; the amount of oxygen in your blood rises or falls, for instance, because your muscles start requiring more or less of the stuff. Other biochemical changes also occur within muscle cells. Sensing those changes, the body realizes that, at this new speed, your cadence isn’t ideal; you’re taking too few or too many steps to use the least possible amount of energy. Your body adjusts.

But that process takes a little while, at least five seconds or so for the oxygen levels to change and your body to recognize the alteration, says Max Donelan, a professor at Simon Fraser University who was a co-author of the study with his graduate student Mark Snaterse and others.

However, the walkers in the study were adjusting their step frequency within less than two seconds after the treadmill speed changed, Dr. Donelan points out. They then fine-tuned their pacing after that. But the first adjustment came almost instantly.

The same process occurred when the researchers repeated the experiment with runners. If the treadmill speed changed, the runners’ step frequency shifted almost immediately, too fast for internal physiology to have played much of a role.

These insty adjustments suggest that our brains very likely contain huge libraries of preset paces, Dr. Donelan and his colleagues have concluded, of idealized, “physiologically efficient” step cadences for any given speed and condition. It seems probable, in fact, that over our lifetimes, Dr. Donelan says, our brains develop and store countless templates for most pacing situations. We learn and remember what cadence allows us to use the least energy at that speed, and when we reach that speed, we immediately default to our body’s most efficient pace.

Just how the brain recognizes that we are moving at any particular speed is not completely understood, Dr. Donelan says, but almost surely involves messages from the eyes, feet, ears, nervous system, skin and other bodily systems.

Interestingly, it seems to be quite difficult to fool your brain. When Dr. Donelan and his colleagues draped shower-curtain-like enclosures around the front of a treadmill, projected a virtual reality scene of a hallway onto it and then manipulated people’s sense of the speed with which they were moving through the hallway, they found that people’s step frequency would quickly change to match this supposed new speed. But then they would settle back into their former cadence, even as the virtual hallway continued to move past them at unnatural speed.

Visual cues simply were not strong enough to affect pacing for long.

But the scientists have found one signal that does seem effectively to override the body’s strong pull toward its preferred ways of moving: a strongly rhythmic beat. When Dr. Donelan and his colleagues fitted runners or walkers with headphones tuned to a metronome, they found that they could increase or decrease volunteers’ step frequency, even if that frequency was faster or slower than a person’s preferred step pattern. They would also maintain that pace for as long as the metronomic rhythm continued unaltered. The volunteers aligned their movement to the beat.

In practical terms, this finding suggests that music may be one of the best ways to affect the pace of your running or walking, especially if you are trying to maintain a pace with which you are not familiar or which feels awkward. Want to start jogging faster than you have in the past? Load your iPod with uptempo music, Dr. Donelan suggests (although obviously ease into any changes in training slowly, to lessen the risk of injuries).

Dr. Donelan and his colleagues even have recently launched an iPhone app called Cruise Control that allows people to coordinate their pacing with their playlists. Input your preferred running or walking speed and the app skims your music library (nonjudgmentally; if you like Nickelback, that’s your business) and strings together songs with the requisite beat, even subtly altering the tempo of songs, if needed.

But of course, if you’re comfortable with your pace as it is, stick with it. For me, the most stirring message of these recent experiments is that, left to its own devices, your body will almost always obligingly try to choose the least demanding pace for you, a goal with which I’m happy to fall into step.

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Congress' horse-and-buggy computer laws








As martyrs go, Aaron Swartz was an extraordinary example of the breed. A computer programming genius, he had helped develop the social networking site Reddit and became known as a leading advocate for easy and free information sharing on the Web.


When Swartz committed suicide in January, while awaiting trial on federal computer hacking charges that could have landed him in prison for 35 years and cost him fines of $1 million, his death was seen as a reproach to overzealous federal prosecutors in Boston. But the case raises a broader issue: Why is Congress so awful at writing computer and Internet laws?


Swartz was indicted in 2011 under the Computer Fraud and Abuse Act, a 1984 law that has struggled to keep up with the times. It's been amended seven times and is more outdated than ever. The charges stemmed from his efforts to allegedly break into MIT's computer network and use it to download millions of academic articles kept by JSTOR, a nonprofit, fee-based service. Legitimate MIT users could access JSTOR articles for free. (JSTOR advocated dropping the case, but MIT did not.)






The Computer Fraud and Abuse Act, or CFAA, may be the worst of the statutes Congress has passed or debated as ways to address what is vaguely shoveled into a bin labeled "computer crime." But others are nearly as frightful. The Digital Millennium Copyright Act, or DMCA, of 1998 imposes excessive civil and criminal penalties for activities engaged in by many users of digital books, movies and music in the real world.


In 2011, Congress contemplated a bill called the Stop Online Piracy Act, or SOPA, which would have given the owners of supposedly pirated or counterfeited property nuclear-scale weapons to use against websites they didn't like, by allowing them to simply assert rights infringement to shut down a site. SOPA was derailed by an online campaign spearheaded by, among others, Aaron Swartz.


The three laws had much in common. They were written broadly, in a fruitless effort to "future-proof" them against new technologies. They imposed excessive penalties, on the reasoning that if a crime is bad, it's much worse when committed with these mysterious devices called computers. And they offered special interests such as copyright claimants, corporations facing trade competition, and media conglomerates opportunities to assert new legal rights they were denied in the world of old technologies.


"Congress tries to write technology-neutral laws," says Jennifer Granick, an Internet law expert at Stanford, "but there's been a wholesale change in how we interact with computers" that renders these laws quickly anachronistic.


Clever lawyers and aggressive prosecutors often rush in to fill the gaps. The DMCA was originally aimed to discourage hackers from copying code-protected DVDs; but it's been cited by a garage door-opener company against a rival making universal clickers, and by desktop printer makers against knock-off toner cartridges. (Both those efforts failed in court, but the potential for expansive interpretation remains.) The recording industry threatened to prosecute Princeton computer expert Edward Felten under the DMCA if he reported publicly on how he had broken the industry's digital protection technology — an effort he undertook at the industry's invitation. The threat prompted Felten to withdraw a planned public presentation.


By imposing extra penalties for using a computer to do things that have traditionally been handled in civil court, "these broader laws have criminalized things that are of dubious criminality," Granick told me.


The CFAA is a perfect example. The measure was written as a cyberspace analogue to trespass laws. Its broadest provision says that anyone who intentionally "exceeds authorized access and thereby obtains information from any protected computer" has committed a federal crime.


This is a wide-open definition that prosecutors have used very aggressively. A "protected computer," by Justice Department definition, can be almost anything with a microchip, including your Internet-savvy refrigerator or your car. "Unauthorized access" could mean viewing a website in violation of its terms of use, that mass of impenetrable legalese that most of us click on blithely without reading, just to use the site. Do that to obtain or read any "information," and you've committed a federal crime.


If you think this is an alarmist interpretation, consider the Lori Drew case — the "poster child" for CFAA overreaching, in the words of Orin Kerr, a Georgetown University cyber-law expert who argued Drew's side. She was the Missouri mother who was accused of helping set up a fake Myspace page to bully a classmate of her daughter. The classmate later committed suicide. Since there is no federal cyber-bullying statute, prosecutors charged Drew under the CFAA for violating the Myspace terms of use, which requires users to provide only accurate information about themselves. A Los Angeles jury found her guilty.


Los Angeles District Judge George Wu overturned the verdict, observing that a website's term of use, which can be altered without notice, are too flimsy to carry the weight of criminal liability, and almost never enforced by the website. But as Kerr notes, federal prosecutors have not abandoned their expansive interpretation despite its obvious absurdities: Until they were changed in March 2012, Google's terms of service required users to be of "legal age," meaning that a middle school child conducting a Google search was theoretically committing a federal crime. So are users of dating websites who exaggerate their good points, in violation of terms of use requiring rigorous accuracy about their height, weight, physical condition and charm.


The law places a powerful weapon in the hands of employers, who routinely forbid workers from using their computers for personal business. "The computer gives employees new ways to procrastinate by chatting with friends, playing games, shopping or watching sports highlights," wrote Appellate Judge Alex Kosinski in a ringing denunciation of the CFAA last year. "Under the broad interpretation of the CFAA, such minor dalliances would become federal crimes." Kosinski's ruling upheld the dismissal of CFAA charges against a corporate headhunter who used information from his old employer's computer system to start a competing company.


Efforts are underway in Congress to pare back the CFAA. Rep. Zoe Lofgren (D-San Jose) has proposed a draft "Aaron's Law," which would ban prosecutions based strictly on violations of a website's terms of service or an employer's policies. She would also make clear that tweaking a computer's digital signature — as Swartz did to conceal his identity in a weeks-long cat-and-mouse game with MIT network overseers — is not in itself a crime.


Yet nothing in Lofgren's bill would address the fundamental problem of Congress writing nonsensically broad laws to govern cyberspace and letting the Justice Department work out the kinks. But prosecutors always agitate for more discretion and stiffer penalties, Kerr says; that's how we end up with criminal penalties for lying about one's age on a dating site.


It's also how Swartz gets threatened with 35 years in jail for downloading academic papers that MIT students could access for free. The prosecutors' goal was to pressure him to take a plea, but the instrument was put in their hands by a Congress that couldn't be bothered to educate itself about the real world of computers and networks before legislating about it. That's the type of legislating that has to change to avoid more cases like Swartz's.


Michael Hiltzik's column appears Sundays and Wednesdays. Reach him at mhiltzik@latimes.com, read past columns at latimes.com/hiltzik, check out facebook.com/hiltzik and follow @latimeshiltzik on Twitter.






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Tour bus had poor safety record before fatal crash









Federal inspectors over the last year found faulty axles and brakes and other safety violations on the tour bus that careened out of control on a winding mountain road near Yucaipa on Sunday evening, killing seven passengers, records show.


Maintenance citations of the tour buses owned by Scapadas Magicas of National City were numerous and serious enough that the company was placed on a federal watch list that flagged its buses for increased roadside inspections.


Bald tires, defective or missing axle parts, and insufficient brake linings were among 59 maintenance violations inspectors found on the firm's buses in the last two years, U.S. Department of Transportation safety records show.





PHOTOS: Tour bus crash


The tour bus was operating under a contract with InterBus Tours and Charters, based in Tijuana, which closed its office Monday, shortly after sending a busload of day tourists to Knott's Berry Farm. The Scapadas Magicas office in National City, in San Diego County, was not open Monday.


Maria McDade, who said she was Scapadas Magicas' administrator for more than 20 years before retiring last year, said none of the company's buses had ever been in an accident and, aside from a fine of $2,500, the company had complied with all U.S. Department of Transportation regulations.


"I feel really, really sad, but accidents happen," she said by walkie-talkie phone from her home in Tijuana. "I feel so sad for all these people." Current company officials could not be contacted for comment.


A message posted on InterBus' Facebook page expressed regret for the accident and told clients that its contractor was insured.


Sales Manager Jordi Garcia said the agency's insurance would be handling burial expenses for the deceased. He said the agency had been open for one year and offered daily trips to Disneyland, Six Flags Magic Mountain and Universal Studios. The trips attracted people from all walks of life, including students, families and young professionals.


"Big Bear is also very popular this time of year. They want to experience nature," he said. The daylong excursion cost $40, he said.


He said the business contracts with independently owned bus operators and that they are responsible for complying with all U.S. and Mexican regulations.


"We're only interested in their availability and the condition of their buses," he said, adding that the agency has never had a problem with any of the several operators with whom they contract.


The Scapadas bus left Tijuana early Sunday with 38 passengers, including children, and was descending California 38 from the ski resort town of Big Bear Lake when the driver apparently lost control about four miles from Yucaipa.


The bus clipped a small Saturn sedan before it veered into oncoming traffic and began to roll, tossing out passengers who were not wearing seat belts. It crushed an oncoming Ford pickup before coming to rest upright atop a boulder and10-foot elderberry bush on a stretch of highway along Mill Creek. Backpacks, clothing and body parts were strewn across the crash site and, on Monday morning, a body remain draped out one of the bus windows.


"It is a gruesome and horrible scene. It's one of the most horrific scenes I've ever seen in 10 years with the department," said Officer Leon Lopez, spokesman for the California Highway Patrol.


CHP officials were joined Monday by investigators from the National Transportation Safety Board at the scene of the accident, which occurred about 6:30 p.m. Sunday just north of the U.S. Forest Service ranger station in the San Bernardino National Forest. The highway was closed most of Monday.


The bus driver, as well as passengers, reported that the vehicle was experiencing mechanical problems before the accident occurred, authorities said. Investigators believe a problem with the brakes may have led the bus to speed out of control down the highway's sweeping curves.


On Monday, those officials questioned the driver, identified as Norberto B. Perez, 52, of San Ysidro, but did not disclose his account of the crash.


"Everything happened so fast. When the bus spun everything flew, even the people," passenger Gerardo Barrientos, who was sitting on the bus next to his girlfriend, told the Associated Press. "I saw many people dead. There are very, very horrendous images in my head, things I don't want to think about."


Ramon Ramirez, who is listed in documents as the owner of Scapadas Magicas, lives in Tijuana and rents an apartment in Chula Vista. No one answered the door at the Chula Vista residence.





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NJ Gov. Christie, Letterman laugh about fat jokes


TRENTON, N.J. (AP) — New Jersey Gov. Chris Christie and David Letterman have shared some laughs about the many fat jokes the comedian has made about the lawmaker's ample girth.


Christie has termed his plumpness "fair game" for comedians. And during his first appearance on "Late Show with David Letterman" on Monday, the outspoken Republican and potential 2016 presidential contender read two of Letterman's jokes that he said were "some of my personal favorites."


The governor also drew loud laughs when he pulled out a doughnut and started eating it while Letterman asked him if he was bothered by the digs that have been made about his weight. Christie said he wasn't, noting that he laughs at the jokes if he finds them funny.


"Late Show" airs on CBS at 11:35 p.m. Eastern time.


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Well: Expressing the Inexpressible

When Kyle Potvin learned she had breast cancer at the age of 41, she tracked the details of her illness and treatment in a journal. But when it came to grappling with issues of mortality, fear and hope, she found that her best outlet was poetry.

How I feared chemo, afraid
It would change me.
It did.
Something dissolved inside me.
Tears began a slow drip;
I cried at the news story
Of a lost boy found in the woods …
At the surprising beauty
Of a bright leaf falling
Like the last strand of hair from my head

Ms. Potvin, now 47 and living in Derry, N.H., recently published “Sound Travels on Water” (Finishing Line Press), a collection of poems about her experience with cancer. And she has organized the Prickly Pear Poetry Project, a series of workshops for cancer patients.

“The creative process can be really healing,” Ms. Potvin said in an interview. “Loss, mortality and even hopefulness were on my mind, and I found that through writing poetry I was able to express some of those concepts in a way that helped me process what I was thinking.”

In April, the National Association for Poetry Therapy, whose members include both medical doctors and therapists, is to hold a conference in Chicago with sessions on using poetry to manage pain and to help adolescents cope with bullying. And this spring, Tasora Books will publish “The Cancer Poetry Project 2,” an anthology of poems written by patients and their loved ones.

Dr. Rafael Campo, an associate professor of medicine at Harvard, says he uses poetry in his practice, offering therapy groups and including poems with the medical forms and educational materials he gives his patients.

“It’s always striking to me how they want to talk about the poems the next time we meet and not the other stuff I give them,” he said. “It’s such a visceral mode of expression. When our bodies betray us in such a profound way, it can be all the more powerful for patients to really use the rhythms of poetry to make sense of what is happening in their bodies.”

On return visits, Dr. Campo’s patients often begin by discussing a poem he gave them — for example, “At the Cancer Clinic,” by Ted Kooser, from his collection “Delights & Shadows” (Copper Canyon Press, 2004), about a nurse holding the door for a slow-moving patient.

How patient she is in the crisp white sails
of her clothes. The sick woman
peers from under her funny knit cap
to watch each foot swing scuffing forward
and take its turn under her weight.
There is no restlessness or impatience
or anger anywhere in sight. Grace
fills the clean mold of this moment
and all the shuffling magazines grow still.

In Ms. Potvin’s case, poems related to her illness were often spurred by mundane moments, like seeing a neighbor out for a nightly walk. Here is “Tumor”:

My neighbor walks
For miles each night.
A mantra drives her, I imagine
As my boys’ chant did
The summer of my own illness:
“Push, Mommy, push.”
Urging me to wind my sore feet
Winch-like on a rented bike
To inch us home.
I couldn’t stop;
Couldn’t leave us
Miles from the end.

Karin Miller, 48, of Minneapolis, turned to poetry 15 years ago when her husband developed testicular cancer at the same time she was pregnant with their first child.

Her husband has since recovered, and Ms. Miller has reviewed thousands of poems by cancer patients and their loved ones to create the “Cancer Poetry Project” anthologies. One poem is “Hymn to a Lost Breast,” by Bonnie Maurer.

Oh let it fly
let it fling
let it flip like a pancake in the air
let it sing: what is the song
of one breast flapping?

Another is “Barn Wish” by Kim Knedler Hewett.

I sit where you can’t see me
Listening to the rustle of papers and pills in the other room,
Wondering if you can hear them.
Let’s go back to the barn, I whisper.
Let’s turn on the TV and watch the Bengals lose.
Let’s eat Bill’s Doughnuts and drink Pepsi.
Anything but this.

Ms. Miller has asked many of her poets to explain why they find poetry healing. “They say it’s the thing that lets them get to the core of how they are feeling,” she said. “It’s the simplicity of poetry, the bare bones of it, that helps them deal with their fears.”


Have you written a poem about cancer? Please share them with us in the comments section below.
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Justice Department sues S&P over mortgage bond ratings









The federal government is embarking on one of its most ambitious efforts to assign blame for the financial crisis, going after Wall Street's biggest credit rating firm for its role in pumping up the housing bubble.


The Justice Department filed a lawsuit late Monday in Los Angeles federal court against Standard & Poor's Corp. The suit accuses the company's analysts of issuing glowing reviews on troubled mortgage securities whose subsequent failure helped cause the worst financial crisis since the Great Depression.


The action marks the first federal crackdown against a major credit rater, and it signals an untested legal tack after limited success in holding the nation's banks accountable for the part they played in the crisis.





The government selected Los Angeles as the venue to file the lawsuit in part because it was one of the regions hardest hit when the bottom fell out of the housing market. Hundreds of thousands of California residents lost their homes to foreclosure, and others saw their wealth evaporate as properties plummeted in value.


"The DOJ is playing hardball and they're coming at the ratings agency in a very different direction with a potentially very powerful weapon to push S&P to the settlement table," said Jeffrey Manns, a law professor at George Washington University.


In addition to the Justice Department, several state attorneys general are investigating the ratings agency. States such as California and New York are expected to pursue their own investigations and legal action, people familiar with the matter said.


S&P has faced other lawsuits from investors and the states of Illinois and Connecticut.


California is expected to sue S&P under the state's False Claims Act, one person familiar with the matter said. The law makes it a crime to defraud the state, and damages of up to three times the amount of the claim can be awarded if the victim was an institutional investor, such as one of the state's pension funds.


The federal action does not involve any criminal allegations. Critics have complained that the government has yet to send any senior bankers or Wall Street executives to jail for potential illegal behavior that led to the crisis.


But civil actions typically require a much lower burden of proof.


Investors rely in part on rating agencies to decide what stocks, bonds or other securities to buy based on the agencies' recommendations about their safety. The three major raters – S&P, Moody's Investors Service and Fitch Ratings — have all been criticized for giving perfect AAA ratings to complex bonds in 2007 that later turned out to be nearly worthless.


It was not known why Standard & Poor's was singled out in the federal lawsuit.


The government and S&P have tangled before. The rating agency in August 2011 issued a historic downgrade of U.S. creditworthiness and threatened to lower it even further.


The two sides were reportedly in settlement talks that broke down during the past week. The ratings firm could face hundreds of millions of dollars in fines and new restrictions on its business model if found liable of civil violations.


S&P, which is a unit of publisher McGraw Hill, denounced the lawsuit in a detailed and strongly worded response. The company said the claims were unjustified, adding that it acted in "good faith" to warn the world about some of the securities that went belly up.


"A DOJ lawsuit would be entirely without factual or legal merit," the company said, adding that even the U.S. government "publicly stated that problems in the subprime market appeared to be contained."


The rating firm has steadfastly maintained that it was protected under the 1st Amendment to state an opinion about certain financial products. That argument may not hold up if federal or state investigators are able to prove that the ratings agency knowingly gave improper evaluations.


The lawsuit zeros in on a series of collateralized debt obligations that were created at the height of the housing boom in 2007, according to S&P. The value of these exotic mortgage securities was nearly wiped out when the subprime mortgages they were tied to imploded.


Lawrence J. White, an economics professor at New York University's business school, believes that the housing crisis could have been more contained if ratings agencies had been more careful.


"If they had been more conservative in their ratings, fewer bonds would have been sold, the interest rates would have been higher, fewer mortgages would have been granted," White said. "There would still have been a housing bubble, but it might not have been quite so severe."





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'American Sniper' Chris Kyle shot dead in a post-combat world









Military sniper Chris Kyle had survived the dust-worn places where he had to worry about enemy fire — or even friendly fire — until this weekend.


Kyle, 38, an author and former Navy SEAL, was shot dead Saturday by an unemployed, 25-year-old Marine veteran, Texas officials said Sunday. Kyle's friend Chad Littlefield, 35, was also killed. No one witnessed the shootings, authorities said.


The suspect, Eddie Ray Routh, used a semiautomatic handgun to shoot Kyle and Littlefield multiple times at a secluded gun range at the Rough Creek Lodge southwest of Fort Worth, investigators said at a televised news conference. Routh is in custody and is expected to face two capital murder charges.





Routh had enlisted in the Marines in 2006, deploying to Iraq in 2007 and to Haiti in 2010 for hurricane relief. He remains in the Marine Reserve.


After Kyle left the Navy in 2009, he wrote "American Sniper: The Autobiography of the Most Lethal Sniper in U.S. Military History." During his four deployments to Iraq, he wrote, he'd recorded the most confirmed kills of any American sniper — more than 150.


Back in the States, Kyle was known to take troubled veterans to gun ranges as part of giving back — shooting and hanging out as a kind of therapy.


"The shooter is possibly one of those people," Erath County Sheriff Tommy Bryant said at the news conference, hinting that Routh's mother, a schoolteacher, may have reached out to Kyle to get help for her son. Officials couldn't confirm whether Routh had suffered from post-traumatic stress disorder.


Routh appeared to be one of the nation's numerous unemployed veterans, and Kyle was one of those who left the anonymity of military service and entered the public sphere.


Kyle's autobiography was unapologetically politically incorrect: During one visit home between deployments, he got a tattoo of a crusader cross on his arm.


"I wanted everyone to know I was a Christian," Kyle wrote. "I had it put in in red, for blood. I hated the damn savages I'd been fighting. I always will. They've taken so much from me."


Kyle won adulation and a spotlight and appeared on the NBC reality show "Stars Earn Stripes," in which "celebrities are challenged to execute complicated missions inspired by real military exercises."


In an interview last year with Fox News' Bill O'Reilly, Kyle claimed to have punched former Minnesota Gov. Jesse Ventura in 2006 for "bad-mouthing the war, bad-mouthing Bush and bad-mouthing America."


Kyle was president of Craft International, a military and law enforcement training company. In a statement lamenting the slayings, the company identified Littlefield as Kyle's trusted friend and said they died trying to help "a troubled veteran."


News of Kyle's demise spread quickly through the Navy SEAL community, according to Rorke Denver, a reserve SEAL team lieutenant commander based in San Diego, who served with Kyle on SEAL Team 3 in Iraq.


"We're such a small brotherhood that when something happens to anybody here or overseas, word travels fast," Denver said Sunday.


Denver said the news was "really hard to believe," and he called Kyle "one of our real champions and battle stars."


"I knew Chris had been working with other veterans, folks with PTSD, trying to help them get better," Denver said. "It's hard to stomach that someone he was trying to help would turn on him."


Denver said he had been fielding questions from civilians who couldn't understand why Kyle would have taken someone with PTSD to a shooting range — but as a veteran, he understands.


"That type of shooting can actually be cathartic, calming," Denver said, "letting your heart settle," particularly for veterans who have just returned home after being accustomed to carrying weapons.


Officials said they didn't have a motive for Routh's attack. The three men apparently traveled to the gun range together in the same truck.





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Is it game over for Nintendo?






The Wii U is a bust (so far). And the legendary gaming company’s future is looking increasingly bleak


Nintendo had no choice but to go all in with the Wii U, the newest in a long line of ostensibly childhood-defining game consoles. Unfortunately, the company also inherited the weighty expectations of the original Wii — which, if you’ll remember, became a surprise hit when it debuted in 2006, or just two short years after the world was first introduced to a little-known senator named Barack Obama. But ever since the Wii U hit store shelves last November, sales have been disappointing. Now the company is dramatically lowering its forecasts for the future. 






Initial sales figures indicate that Nintendo has so far sold just 3.06 million Wii U game consoles, and anticipates moving just four million Wii U units through March — far below previous estimates of 5.5 million, predictions that weren’t even that optimistic to begin with. 


Initial reviews of the Wii U were mixed. Yes, it’s fun. But the console failed to offer a compelling reason for consumers to free up dusty shelf space alongside their Xbox 360s or PlayStation 3s. Some critics say the console is confused, and Nintendo didn’t know if it was targeting mature gamers fixated on first-person shooter games like Call of Duty and Borderlands, or more casual fans like the original Wii did with its motion-sensing nunchuck. Further complicating matters is a nimble new mobile industry, dominated by non-committal, take-anywhere games like Temple Run and Angry Birds


“Nintendo needs a change in strategy,” Michael Pachter, a gaming research analyst for Wedbush Securities, tells The New York Times. Even though Nintendo is an instantly recognizable brand the world over, the company still doesn’t license its gaming titles for other platforms (ever see Mario on an iPhone?). To make matters worse, on Thursday, Nintendo president Satoru Iwata said that the company has no intention of lowering the price of its $ 300 flagship gaming system anytime soon. “We were already offering it at a good price,” he said. 


That means Nintendo, unless it releases a best-selling breakout title soon (Zelda, perhaps? Super Smash Bros. Brawl?), will continue on its path toward an increasingly dark future. The company already had its worst year ever in 2011. Dramatic restructuring seems imminent.


Consoles — compared to phones, tablets, laptops, and many other gadgets — have a much slower product cycle. Manufacturers only press “reset” every couple of years so that game-makers aren’t constantly readjusting to new hardware.


For quickly aging dinosaurs like Nintendo, that means more plodding along. More disappointing forecasts. More reluctant critics. More lost opportunities to earn the trust of lifelong fans. More, more, more. (Or for Nintendo, less, less, less?)


“People have to try it to see it is fun,” Iwata said of the Wii U. Undoubtedly, it is.


But unfortunately for Nintendo, “fun” just isn’t good enough anymore.


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