News Letter 2007 05

M. A. SMITH

A PROFESSIONAL LAW CORPORATION

MASAPLC.COM

Michael A. Smith, Attorney at Law

319 E. Foothill Blvd., #C Voice - (626) 357-1177

Arcadia, CA 91006 Facsimile - (626) 357-4588

May 2007 No. 23

● an individual or organization intentionally makes an untrue representation about an important fact or event;

● The untrue representation is believed by the victim (the person or organization to whom the representation has been made);

● the victim suffers loss of money and-or property as a result of relying upon and acting upon the untrue representation.

Fraud can be for the benefit and gain of an individual, entity, organization or program. When an individual commits fraud, the benefits may be direct (money, property) or indirect (promotions, bonuses, etc.). When an organization (actually an employee acting on behalf of the organization) commits fraud, the benefits to the organization are direct and usually in the form of financial gain.

Twelve crimes are considered fraud: commercial/private bribery; illegal gratuity; conflict of interest; false statements/claims; extortion; mail fraud; wire fraud; conspiracy; breach of fiduciary duty; embezzlement and failure to report a federal felony to the appropriate law enforcement authority. Thanks Fred C.

Apart from making an eye-catching display, red fruits and vegetables contain various nutrients which, when consumed regularly, bring a host of health benefits. The red color emanates from lycopene, a carotenoid in the same family as beta carotene. It is one of four main carotenoids normally found in human blood and tissue.

Studies have shown lycopene may lower the risk of heart disease, atherosclerosis and macular degeneration. It also may reduce the risk of various types of cancers. Experts say the redder the fruit or vegetable, the better for one’s health.

Red-colored fruits and vegetables: red grapes, cherries, pomegranates, red apples, red raspberries, strawberries, red peppers, red onions, red potatoes, beets and tomatoes.

“Stewardesses” is the longest word typed with only the left hand and “Lollipop” with the right.

No word in the English language rhymes with month, orange, silver or purple. Thanks Don C.

Nine percent of U.S. employers plan to offer only one health insurance option, which will have a high-deduction. This type of plan charges higher deductibles, typically $1,000 per individual, in exchange for cheaper monthly premiums and preventive services. The aim is to stem the rise of overall medical costs, which are climbing at twice the rate of general inflation.

A survey of 573 large companies, typically defined as those having 500 or more employees, found 38 percent offered high-deductible plans among a variety of options in 2007, up from 33 percent in 2006. Although companies have embraced the higher-deductible plans, only 8 percent of employees enrolled in 2007; up 1 percent from 2006. Thanks Fred C.

Baby boomers, never shy about asserting their rights, have triggered a new wave of age bias lawsuits. Employment attorneys say the 50 percent increase in age bias suits is due mainly to the work force getting older, staying healthier and working longer.

Corporate downsizing, layoffs and rising health care costs are also driving litigation, along with recent court decisions giving plaintiffs more legal ammunition in age bias suits. As a result, employers are having to defend themselves against an older and bolder work force suing for the right to work. Thanks Fred C.

President Bush sealed a deal with Brazil intending to promote the international production of ethanol. Bush toured a fuel depot to highlight Brazil’s success in developing ethanol into a vital source of energy. The partnership Bush wants to build is intended to further the research and development of biofuel technology...in other countries.

The emphasis on ethanol has drawn criticism from environmentalists and others who complain it will create more problems; e.g., the U.S. uses corn to make ethanol and rising demand for the crop has caused a price increase for corn based products. Brazil uses sugar cane to make ethanol and critics worry increased production would result in further deforestation of the Amazon.

Brazil, a pioneer in biofuel technology, has become the world’s largest exporter of ethanol and transformed its own economy as a result. About 40 percent of Brazil’s non-diesel gasoline consumption has been replaced by ethanol. More than 70 percent of the cars and trucks sold in Brazil are flex-fuel vehicles; they consume either gasoline or ethanol. Together, the U.S. and Brazil produce 70 percent of the world-s ethanol supply. Thanks Fred C.

Twin satellites (launched October 26), taking three-dimensional images of the sun have returned images, fulfilling scientists’ hopes for a tool that will, hopefully, significantly improve forecasts of potentially dangerous space weather.

Aurora, the shimmering lights appearing over earth’s polar regions, are benign manifestations of high-energy particles streaming off the sun’s corona and hitting earth’s magnetic field. When the eruptions are intense, the charged particles can wipe out computer memory, short circuit power grids and interfere with air-to-ground radio transmissions. Before the satellites were put into orbit, scientists could make predictions about a solar storm’s intensity and direction only about 12 hours before it hit earth. Now, scientists expect to be able to trace a storm’s progress from the moment it leaves the sun.

By combining views from the two satellites, scientists will be able to piece together a three-dimensional picture of the sun and render a stereographic view of the world. Thanks Fred C.

The next time you walk by a shop window, glance at your reflection. How much do you swing your arms? Does the weight of your bag cause you to hunch over? You may not be the only one watching. Never-blinking surveillance cameras, rapidly becoming part of daily life in public (and private places) may be sizing you up. Researchers and security companies are developing cameras that not only watch, but interpret what they see and analyze the way you walk to see if you are hiding something.

Most cameras today are used to identify crooks after-the-fact. Intelligent video could transform cameras from passive observers to eyes with brains; able to detect suspicious behavior and potentially prevent crimes. The innovations could mean fewer people would be needed.

Some advancements have already been put to work. Baltimore installed cameras that can play a recorded message and snap pictures of graffiti sprayers or illegal dumpers. The gaming industry uses systems that can detect facial features. Casinos use their vast banks of security cameras to hunt cheating gamblers.

In London, cameras provided key photos of the men who bombed their underground system in 2005 and 4 more who failed in a second attempt just days later. These cameras were only able to help with the investigation, not prevent the attacks.

Intelligent surveillance uses computer algorithms to interpret what a camera records. The system can be programmed to look for particular things. Work has been done at the University of Maryland on systems that analyze the way a person walks to determine if he or she is a threat. Still, industry officials say the technology needs to improve before it can be widely used. Thanks Fred C.

Motorists MUST respect the right-of-way of pedestrians. Pedestrian safety is a serious issue. One in six traffic fatalities is a pedestrian.

A pedestrian is any person on foot or one using a conveyance such as roller skates, skateboards, etc., other than a bicycle. A pedestrian can also be a person on a tricycle or in a wheelchair.

●Always stop for any pedestrian crossing at corners or other crosswalks, with or without lights, whether or not marked.

●Do not drive on a sidewalk, except to enter or exit a driveway or alley. When crossing a sidewalk, yield to any pedestrian.

●If a pedestrian makes eye contact with you, he or she is ready to cross the street. Yield to the pedestrian.

●Allow older and disabled pedestrians more time to cross the street. California Driver Handbook, 2007

Forty-two point seven percent (42.7%) of all statistics are made up on the spot? Thanks Dave S.

An Atlanta real estate investment firm launched a $2.5 million ad campaign soliciting readers of respected national publications to become partners in a real estate venture guaranteeing a 25 percent return within 45 days. The ads appeared in 47 publications, including the NY & LA Times, Wall Street Journal and USA Today to name a few.

Pinnacle Development Partners LLC planned to buy foreclosures or “distressed” properties needing work or had been on the market too long. After purchase, the properties would be renovated and sold within 45 days, at or above market value and the proceeds split with investors.

SEC attorneys in Atlanta say Pinnacle was conducting a classic fraud known as a “pyramid” or Ponzi scheme. After a story in the Wall Street Journal put investors on notice about the alleged scheme, the SEC got an emergency injunction seizing Pinnacle’s assets, freezing its bank accounts and shutting its real estate investment business down. Last week, a federal grand jury in Atlanta indicted Pinnacle founder Gene O’Neal, a convicted forger, on multiple counts of mail and wire fraud. Until the SEC intervened, Pinnacle’s ad campaign was a rousing success. By last October, the firm had recruited more than 2,800 investors from 48 states and abroad who invested about $69 million in the business plan.

Federal authorities say, despite its advertising claims, Pinnacle did not make money by buying distressed real estate at a discount. Instead, O’Neal used cash from new investors to pay the promised investment returns owed to early investors, while funneling the balance into his business and his own pocket.

When shut down Pinnacle owed investors $42 million in investment principal, not including the promised 25 percent profits. Thanks Fred C.

A Dutch study suggests men and women who take folic acid supplements may prevent age-related hearing loss. Folic acid is found in beans, asparagus, spinach, collards and calf’s liver. Can’t hurt!