(Reuters) – Interpublic Group of Cos said it sold its remaining investment in Facebook Inc for $ 95 million in cash.
Interpublic said it expects to record a pre-tax gain of $ 94 million. It had recorded a pre-tax gain of $ 132.2 million for the third quarter of last year from the sale of half of its 0.4 percent stake in Facebook.
Interpublic paid less than $ 5 million for the stake in 2006.
Shares of Facebook, which debuted with a market value of more than $ 100 billion in May, have lost nearly half their value since then on concerns about money-making prospects.
“We decided to sell our remaining shares in Facebook as our investment was no longer strategic in nature,” Chief Executive Michael Roth said in a statement.
Interpublic also authorized an increase in its existing share repurchase program to $ 400 million from $ 300 million. The company repurchased shares worth $ 151 million, as of September 30.
Shares of the company were up 1 percent at $ 10 on the New York Stock Exchange on Tuesday.
Facebook shares were marginally up at $ 23.00 on the Nasdaq.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das)
NEW YORK (AP) — Elmo puppeteer Kevin Clash has resigned from "Sesame Street" in the wake of an allegation that he had sex with an underage youth.
In its statement Tuesday, Sesame Workshop said "the controversy surrounding Kevin's personal life has become a distraction that none of us want," leading Clash to conclude "that he can no longer be effective in his job."
"This is a sad day for Sesame Street," the company said.
In a statement of his own, Clash said "personal matters have diverted attention away from the important work Sesame Street is doing and I cannot allow it to go on any longer. I am deeply sorry to be leaving and am looking forward to resolving these personal matters privately."
As the announcement was made, a lawsuit was being filed in federal court in New York charging Clash with sexual abuse of a second youth. The lawsuit alleges that Cecil Singleton, then 15 and now an adult, was persuaded by Clash to meet for sexual encounters.
The lawsuit seeks damages in excess of $5 million.
Clash, who had been on "Sesame Street" for 28 years, created the high-pitched voice and child-like persona for Elmo, a furry, red Muppet that became one of the most popular characters on the show and one of the company's most lucrative properties. Sesame Workshop produces "Sesame Street" in New York.
Clash's exit followed a tumultuous week that began on Nov. 12 with a statement from the company that Clash had requested a leave of absence following the charge by a man in his early 20s that he had had a relationship with Clash when he was 16.
Clash denied the charge from that man, who has not been publicly identified, calling it "false and defamatory."
Clash, the 52-year-old divorced father of a grown daughter, acknowledged that he is gay in that statement.
Sesame Workshop, which said it was first contacted by the accuser in June, said it had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.
The next day Clash's accuser recanted his charge, describing his sexual relationship with Clash as adult and consensual. Clash responded that he was "relieved that this painful allegation has been put to rest."
In addition to his marquee role as Elmo, Clash had served as the show's senior Muppet coordinator and Muppet captain. He won 23 daytime Emmy awards and one prime-time Emmy.
In 2006, he published an autobiography, "My Life as a Furry Red Monster," and was the subject of the 2011 documentary "Being Elmo: A Puppeteer's Journey."
Though it remained unclear who might take over for Clash performing as Elmo, other "Sesame Street" puppeteers have been trained to serve as his stand-in, Sesame Workshop said.
"Elmo is bigger than any one person," the company said last week.
In what may prove to be a major advance for Africa’s “meningitis belt,” regulatory authorities have decided that a new meningitis vaccine could be stored without refrigeration for up to four days.
The announcement was made last week at a conference in Atlanta of the American Society of Tropical Medicine and Hygiene. While a few days may seem trivial, the hardest part of protecting poor countries is often keeping a vaccine cold while moving it from electrified cities to villages with no power. In antipolio drives, for example, the freezers, generators and fuel needed to make ice for the shoulder bags of vaccinators can cost more than the vaccine.
The new vaccine, MenAfriVac, made in India for 50 cents a dose, was introduced in 2010. In bad years, epidemics during the hot harmattan winds have killed as many as 25,000 Africans and disabled 50,000 more. In Chad this year, vaccination drove down cases to near zero in districts where it was used, while others nearby had serious outbreaks.
Experts decided that the vaccine is safe for four days as long as it stays below 104 degrees.
While temperatures get higher than that in Africa, said Dr. Godwin Enwere, medical director for the Meningitis Vaccine Project, teams normally get the vaccine out of coolers at dawn, drive to villages and finish before the day heats up. Other experts said it should be kept in the shade and monitored with colored paper “dots” that darken after hours in the heat.
Hewlett-Packard said on Tuesday that it had taken an $8.8 billion accounting charge, after discovering “serious accounting improprieties” and “outright misrepresentations” at Autonomy, a British software maker that it bought for $10 billion last year.
It is a major setback for H.P., which has been struggling to turn around its operations and remake its business.
The charge essentially wiped out its profit. In the latest quarter, H.P. reported a net loss of $6.9 billion, compared with a $200 million profit in the period a year earlier. The company said the improprieties and misrepresentations took place just before the acquisition, and accounted for the majority of the charges in the quarter, more than $5 billion.
Shares in H.P. plummeted nearly 11 percent in early afternoon trading on Tuesday, to less than $12.
Hewlett-Packard bought Autonomy in the summer of 2011 in an attempt to bolster its presence in the enterprise software market and catch up with rivals like I.B.M. The takeover was the brainchild of Léo Apotheker, H.P.’s chief executive at the time, and was criticized within Silicon Valley as a hugely expensive blunder.
Mr. Apotheker resigned a month later. The management shake-up came about one year after Mark Hurd was forced to step down as the head of H.P. after questions were raised about his relationship with a female contract employee.
“I’m both stunned and disappointed to learn of Autonomy’s alleged accounting improprieties,” Mr. Apotheker said in a statement. “The developments are a shock to the many who believed in the company, myself included. ”
Since then, H.P. has tried to revive the company and to move past the controversies. Last year, Meg Whitman, a former head of eBay, took over as chief executive and began rethinking the product lineup and global marketing strategy.
But the efforts have been slow to take hold.
In the previous fiscal quarter, the company announced that it would take an $8 billion charge related to its 2008 acquisition of Electronic Data Systems, as well as added costs related to layoffs. Then Ms. Whitman told Wall Street analysts in October that revenue and profit would be significantly lower, adding that it would take several years to complete a turnaround.
“We have much more work to do,” Ms. Whitman said at the time.
Hewlett-Packard continues to face weakness in its core businesses. Revenue for the full fiscal year dropped 5 percent, to $120.4 billion, with the personal computer, printing, enterprise and service businesses all losing ground. Earnings dropped 23 percent, to $8 billion, over the same period.
“As we discussed during our securities analyst meeting last month, fiscal 2012 was the first year in a multiyear journey to turn H.P. around,” Ms. Whitman said in a statement. “We’re starting to see progress in key areas, such as new product releases and customer wins.”
The strategic troubles have weighed on the stock. Shares of H.P. have dropped to less than $12 from nearly $30 at their high this year.
The latest developments could present another setback for Ms. Whitman’s efforts.
When the company assessed Autonomy before the acquisitions, the financial results appeared to pass muster. Ms. Whitman said H.P.’s board at the time – which remains the same now, except for the addition of the activist investor Ralph V. Whitworth – relied on Deloitte’s auditing of Autonomy’s financial statements. As part of the due diligence process for the deal, H.P. also hired KPMG to audit Deloitte’s work.
Neither Deloitte nor KPMG caught the accounting discrepancies. Deloitte said in a statement that it could not comment on the matter, citing client confidentiality. “We will cooperate with the relevant authorities with any investigations into these allegations,” the accounting firm said.
Hewlett-Packard said it first began looking into potential accounting problems in the spring, after a senior Autonomy executive came forward. H.P. then hired a third-party forensic accounting firm, PricewaterhouseCoopers, to conduct an investigation covering Autonomy sales between the third quarter 2009 and the second quarter 2011, just before the acquisition.
The company said it discovered several accounting irregularities, which disguised Autonomy’s actual costs and the nature of the its products. Autonomy makes software that finds patterns, data that is used by companies and governments.
H.P. said that Autonomy, in some instances, sold hardware like servers, which has higher associated costs. But the company booked these as software sales. It had the effect of underplaying the company’s expenses and inflating the margins.
“They used low-end hardware sales, but put out that it was a pure software company,” said John Schultz, the general counsel of H.P. Computer hardware typically has a much smaller profit margin than software. “They put this into their growth calculation.”
An H.P. official, who spoke on background because of ongoing inquiries by regulators, said the hardware was sold at a 10 percent loss. The loss was disguised as a marketing expense, and the amount registered as a marketing expense appeared to increase over time, the official said.
H.P. also contends that Autonomy relied on value-added resellers, middlemen who sold software on behalf of the company. Those middlemen reported sales to customers that didn’t actually exist, according to H.P.
H.P. also claims that that Autonomy was taking licensing revenue upfront, before receiving the money. That improper assignment of sales inflated the company’s gross profit margins.pfront, before receiving the money. It had the effect, the company said, of significantly bolstering Autonomy’s gross margin.
Hewlett Packard turned over its findings to Securities and Exchange Commission in the United States and the Serious Fraud Office in Britain with the last week. In a conference call with analysts, Ms. Whitman said the company might consider legal actions against several parties.
The former management team of Autonomy, which includes the company’s founder Mike Lynch, rejected H.P. claims about the accounting issues.
“H.P. has made a series of allegations against some unspecified former members of Autonomy Corporation PLC’s senior management team. The former management team of Autonomy was shocked to see this statement today, and flatly rejects these allegations, which are false,” the group said in a statement. “It took 10 years to build Autonomy’s industry-leading technology and it is sad to see how it has been mismanaged since its acquisition by H.P.”
While Mr. Schultz would not detail H.P.’s future legal strategy, he said “we intend to be aggressive in recovering value for our shareholders.” In addition to Mr. Lynch, the company indicated this could include other individuals, including perhaps former senior executives of H.P. who missed the bad accounting. “We’re not limiting it to Autonomy,” Mr. Shulz said.
H.P. also underscored the importance of Autonomy to the broader strategy, emphasized the quality of the products. “This is a very healthy company with good products that exist,” said Mr. Shultz. “At its core, these are very good products.”
President Obama in Yangon, Myanmar, with the opposition leader Daw Aung San Suu Kyi on Monday.
YANGON, Myanmar — President Obama journeyed to this storied tropical outpost of jade and jungles on Monday to “extend the hand of friendship” as a land long tormented by repression and poverty begins to throw off military rule and emerge from decades of isolation.
Mr. Obama arrived here as the first sitting American president to visit Myanmar with the hope of solidifying the stunning changes that have transformed this Southeast Asian country and encouraging additional progress toward a more democratic system. With the promise of more financial assistance, Mr. Obama vowed to “support you every step of the way.”
The president was greeted on a mild, muggy day by tens of thousands of people lining the road from the airport — and by further promises of reform by the government, which announced a series of specific commitments regarding the release of political prisoners and the end of ethnic violence. Although Mr. Obama stayed just six hours, his visit was seen here as a validation of a new era.
He met at the government headquarters with President Thein Sein, who has ushered in change, and then made a personal pilgrimage to the home of the opposition leader Daw Aung San Suu Kyi, where she was confined for most of two decades before her release from house arrest two years ago. Overlooking the manicured lawn and well-tended garden outside the elegant two-story lakeside house, the president celebrated the Nobel-winning dissident as an “icon of democracy” who inspired the world, then kissed and embraced her.
Still, Ms. Aung San Suu Kyi, who according to human rights activists privately counseled Americans against Mr. Obama’s making the trip out of concern that it was premature, sounded a note of caution. “The most difficult time in any transition is when we think that success is in sight,” she warned. “Then we have to be very careful that we are not lured by a mirage of success.”
While local leaders attribute the changes so far to internal factors and decisions far removed from policies set in Washington, Mr. Obama was eager to claim a measure of credit and drank in the adulation of the crowd. Outside the gates of Ms. Aung San Suu Kyi’s home, thousands of people gathered, chanting, “Obama, Obama!” and crowding his motorcade as it passed.
Mr. Obama has tried to play nursemaid to the opening of Myanmar, formerly and still known by many as Burma, by sending the first American ambassador in 22 years, easing sanctions and meeting with Ms. Aung San Suu Kyi at the White House. On Monday, he announced the return of the United States Agency for International Development along with $170 million for projects over the next two years.
In a small gesture during his meeting with Mr. Thein Sein, Mr. Obama even called the country Myanmar, the term favored by the generals who renamed it, even though the United States government officially prefers Burma. The president noted that in his inaugural address in 2009 he had vowed to reach out to those “willing to unclench your fist” and hailed Myanmar for responding.
“So today, I have come to keep my promise and extend the hand of friendship,” Mr. Obama said in a speech at the University of Yangon. He promised to “help rebuild an economy” and develop new institutions that can be sustained.
“The flickers of progress that we have seen must not be extinguished — they must be strengthened, they must become a shining north star for all this nation’s people,” he said.
Although human rights activists criticized him for visiting while hundreds of political prisoners remain locked up and violence rages through parts of the country, Mr. Obama used the occasion to nudge Myanmar to move further. He noted that democracy is about constraints on power, pointing to his own limits as president.
“That is how you must reach for the future you deserve, a future where a single prisoner of conscience is one too many,” he said at the university. “You need to reach for a future where the law is stronger than any single leader.”
Dallas Mavericks owner and billionaire Mark Cuban has confirmed reports from last week, in a post on his personal blog today, that he has a serious beef with Facebook. But before getting into all the reasons he no longer loves the social network, he clarifies one small point: “First, I’m not recommending to any of my companies that we leave facebook,” he writes. Last week ReadWriteWeb’s Dan Lyons kind of made it seem like Cuban planned to pull out altogether because of the way Facebook’s algorithm has affected the way people see his brands’s posts. The algorithm, Edgerank, controls brand posts so that not all fans are forced to see each one in their news feeds. Because of this, he quoted Cuban saying “We are moving far more aggressively into Twitter and reducing any and all emphasis on Facebook.” And later he had him talking about all the reasons he finds it horrible for businesses. Like, mainly, that it’s too expensive, a point that GigaOm’s Mathew Ingram called naive. “Really? That surprises you? What else did you think Facebook was going to do when it gave you a giant social platform for nothing?” Cuban now explains that he isn’t bailing on Facebook, just de-emphasizing it in favor of other Internet places, like Tumblr and Twitter. But, that does not mean that he does not hate Facebook as much as everyone has been saying he hates Facebook. He does.
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You can read the laundry list of reasons over at his personal blog, but some highlights include:
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Its a time waster … FB doesn’t seem to want to accept that it’s best purpose in life is as a huge time suck.
IMHO, FB really risks screwing up something that is special in our lives as a time waster by thinking they have to make it more engaging and efficient.
So by default you are not going to use your newsfeed as a primary source of information. It’s more like the township newspaper
I also think that FB is making a big mistake by trying to play games with their original mission of connecting the world. FB is a fascinating destination that is an amazing alternative to boredom which excels in its SIMPLICITY. One of the threats in any business is that you outsmart yourself. FB has to be careful of just that.
Basically Mark Cuban thinks Facebook should stop trying to make money and stop trying to get too smart, which might work in the favor of Cuban who doesn’t want to spend too much money on something silly like social media. But,this doesn’t sound too appealing to Facebook, which as a public company needs to make money. Unless more join his cause, which could maybe happen. At least the Miami blog the 305 agrees with him. Anyone else?
Justin Bieber may be Canadian, but he was the all-American boy at Sunday night's American Music Awards.
The pop singer dominated the awards show, winning three trophies, including artist of the year. His mom joined him onstage as he collected the award, beating out Rihanna, Maroon 5, Katy Perry and Drake.
"I wanted to thank you for always believing in me," Bieber said, looking to his mom.
The 18-year-old also won the honor in 2010. He said it's "hard growing up with everyone watching me" and asked that people continue to believe in him.
But the teenager who brought his mom as a date also got in some grinding with Nicki Minaj — who shared the stage with him and took home two awards — and a kiss on the neck from presenter Jenny McCarthy.
"Wow. I feel violated right now," he said, laughing.
"I did grab his butt," McCarthy said backstage. "I couldn't help it. He was just so delicious. So little. I wanted to tear his head off and eat it."
Another collaboration was the night's most colorful performance: Korean rapper PSY and MC Hammer. Hammer joined the buzzed-about pop star for his viral hit "Gangnam Style." PSY rocked traditional "Hammer" pants as they danced to his jam and to Hammer's "Too Legit to Quit."
Minaj, who wore three different wigs and four outfits throughout the night, repeated her AMAs wins from last year, picking up trophies for favorite rap/hip-hop artist and album for "Pink Friday: Roman Reloaded." She was in an all-white get-up, including fur coat and pink hair when she performed her new song "Freedom." The scene was ghostly and snowy, as a choir — also in white — joined her onstage. One background singer stole the performance, belting semi-high notes as Minaj looked on.
Usher kicked off the three-hour ABC-televised show with green laser lights beaming onstage as he performed a medley of songs, including "Numb," ''Climax" and "Can't Stop, Won't Stop," which featured a smoky floor and a number of backup dancers, as Usher jammed in all black, with the exception of his red shoes. He won favorite soul/R&B male artist.
His protege Bieber won favorite pop/rock male artist in the first award handed out and gave a shout-out to those who didn't think he would last on the music scene.
"I want to say this is for all the haters who thought I was just here for one or two years. I feel like I'm going to be here for a very long time," he said.
He also won favorite pop/rock album for his platinum-selling third album, "Believe." He gave a stripped down, acoustic performance of "As Long As You Love Me," then transitioned to the dance-heavy "Beauty and a Beat," where Minaj joined him onstage, grinding with the teen for a few seconds.
Swift won her fifth consecutive award for favorite country female artist.
"This is unreal. I want to thank the fans. You guys are the ones who voted on this," she said.
Swift gave a masquerade-themed performance of the pop song "I Knew You Were Trouble." She sang onstage in a light dress while dancers wore mostly black. But then she changed into a red corset and black skirt, matching their dark mood. She even danced and sang on the floor as lights flickered throughout the performance.
Dick Clark, who created the AMAs, was remembered by Ryan Seacrest and an upbeat performance by Stevie Wonder.
"What a producer he was," said Seacrest, as Wonder sang his hits, including "My Cherie Amour."
Carly Rae Jepsen, who performed early in the night, won favorite new artist.
"I am floored. Wow," she said, thanking Bieber and his manager, Scooter Braun.
Party girl Ke$ha was glammed up on the red carpet, rocking long, flowy blonde hair and a light pink dress. She switched to her normal attire when she performed her hit single "Die Young." It was tribal, with shirtless dancers in skin-tight pants, silver hair and skeleton-painted faces, who also played the drums. Ke$ha was pants-less, rocking knee-high boots and rolling on the floor as she finished up the song.
Minaj and Christina Aguilera were blonde bombshells, too: Minaj's hair was busy and full of volume and she sported a neon strapless gown to accept her first award. Aguilera wore a blonde bob in a purple dress that matched her eyeshadow.
Aguilera performed a medley of material from her new album and joined Pitbull onstage.
Kelly Clarkson also hit the stage, making a nod to her "American Idol" roots with a number on her dress and three judges looking on as she sang "Miss Independent." Then she went into "Since U Been Gone," ''Stronger" and "Catch My Breath."
Fellow "Idol" winner Carrie Underwood won best favorite country album and performed, hitting the right notes while singing "Two Black Cadillacs." She talked about singing competition shows backstage.
"These people that go on these shows are so talented, you know? And I would love to see if so many of the other artists that are out there today would go back and try out for these shows, because they might get their behinds kicked by some of the contestants," she said.
Luke Bryan won favorite country male artist and Lady Antebellum favorite country group.
American Music Awards nominees were selected based on sales and airplay, and fans chose the winners by voting online. At this award show, even the stars were fans: Pink said on the red carpet that she'd like to collaborate with Lauryn Hill. Cyndi Lauper said her musical playlist includes Pink and Minaj. Boy band The Wanted said they were excited to see PSY and Colbie Caillat wanted to watch No Doubt.
"What makes the American Music Awards special is the fans choose the winning artists," said Chester Bennington of Linkin Park, who won favorite alternative rock artist and performed "Burn It Down," as Brandy sang along and Gwen Stefani, Usher and Phillip Phillips bobbed their heads.
David Guetta won the show's first-ever electronic dance music award. Non-televised awards went to Katy Perry for pop/rock female artist, Beyonce for soul/R&B female artist, Adele for adult contemporary artist and Shakira for Latin artist.
Along with Rihanna, Minaj was the top nominee with four nominations.
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ABC is owned by The Walt Disney Co.
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AP Entertainment Writer Sandy Cohen contributed to this report from Los Angeles.
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Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin
It was the summer before high school, and Christopher Gavagan, then 13, was preparing to leave the safe familiarity of the friends he had known during his boyhood. With a plan to excel at ice hockey, he began training on inline skates, moving through his New York City neighborhood, up and down the streets until, he said, “I turned down the wrong street.”
Gavagan, now a filmmaker, was one of eight panelists who participated Friday in a discussion about young athletes who have been sexually assaulted or abused by their coaches. The panel was part of the MaleSurvivor 13th International Conference, held this year at John Jay College of Criminal Justice. The conference brought together men who have been sexually abused, as well as psychologists, social workers, academics and members of the legal community.
A dour procession of stories about sexual misconduct by coaches toward their male charges has come to light in recent months. Jerry Sandusky, a former assistant football coach at Penn State, was sentenced in October to 30 to 60 years in prison on 45 counts of child molesting. Sugar Ray Leonard wrote in his autobiography last year that he was sexually molested by an Olympic boxing coach. The N.H.L. players Theo Fleury and Sheldon Kennedy were sexually abused as teenagers by their hockey coach Graham James.
The prevalence of sexual abuse among all boys 17 and under has been variously estimated to be as low as 5 percent and as high as 16 percent. For some of the millions of children who participate in sports nationwide, and their parents, sexual assault in a sports context has its own dynamic.
“Sports is a place where parents send their boys to learn skills, to learn how to be teammates and how to work together — to make boys stronger and healthier,” said Dr. Howard Fradkin, author of “Joining Forces,” a book about how men can heal from sexual abuse. “It’s the place where we send our boys to grow up. The betrayal that occurs when abuse occurs in sports is damaging because it destroys the whole intent of what they started out to do.”
When Gavagan, now 38, turned down that fateful street, and stepped briefly into the house of a man recommended as a hockey coach by a couple of female acquaintances, what greeted him, he said, was “a young boy’s dream come true.”
The dream Gavagan glimpsed was embodied in the trophy room of the house.
“It was everything I wanted to be right there,” recalled Gavagan, who is working on a feature-length documentary on sexual abuse in youth sports, in which he interviews other sexual-abuse victims and his own attacker, against whom he has never pressed charges. In addition to the shiny relics that seemed to give testimony to the man’s coaching prowess, Gavagan said, the trophy room had pictures of hockey teams the man had coached and workout equipment — the physical tools promising the chance to get bigger and stronger.
“To a skinny 13-year-old, it was like winning the lottery,” Gavagan said.
Christopher Anderson, the executive director of MaleSurvivor, said sexual abuse — basically nonconsensual touching or sexual language — is devastating under any circumstance, but coach and player often have a special relationship.
“Especially as you progress higher and higher, the coach can become just as important in some ways to an athlete as the relationship with his parents might have,” Anderson said. “In some cases, it’s a substitute for parents.”
He added: “There’s also a fundamentally different power dynamic. When you’re a young star, the coach can literally make or break your career as an athlete.”
But caution has to extend beyond coaches who guide future Olympians, Gavagan said, noting that his coach was not of that caliber.
“The entire grooming process was so subtle,” Gavagan said. “It’s not like when I first went into his house that he tried to grope me.”
First, Gavagan said, the coach said it was all right to curse in that house. On another visit it was fine to have a beer, which led on another day to Playboy magazine and on subsequent days to harder pornography and harder liquor. It was six months before the coach laid an explicitly sexual hand on him, Gavagan said.
“I didn’t feel like a sudden red line had been crossed — the line had been blurred,” Gavagan said, explaining that he avoided his parents when he returned home with liquor on his breath by telling them he was exhausted and going straight to his room. (Unlike many sexual-abuse victims, Gavagan said his parents, with whom the coach had ingratiated himself, were supportive of their son, and his was a loving family. He said that if he had approached them about the coach, they would have listened.)
Another aspect of sexual abuse in sports is the environment, which emphasizes a kind of macho ethic.
“What is most different about abuse is the sports culture itself,” Fradkin said. “It is a culture that promotes teamwork and teaches boys to shrug it off. When a boy or man is abused, he risks being thrown off the team if he should speak the truth because he’ll be seen as being disloyal — and weak.”
At 17, after four years with his coach, Gavagan said he “aged out” of his coach’s target age.
“At the time I had no idea of how it would impact my life, but the unhealthy lessons about relations, trust and the truth set a time bomb that would detonate my relationships for the next 10 years,” Gavagan said.
As a word of caution, Anderson said the lesson for parents should not be that sports are dangerous.
“It should be that there are sometimes dangerous people who gravitate to sporting organizations and our safeguards aren’t good enough yet to adequately protect our children,” he said. “That doesn’t mean that we should be pulling our kids from soccer and baseball and basketball. What it means is that parents need to be vigilant.”
He added: “They need to be proactive with athletic organizations to make sure that policies are in place — such as doing criminal background checks on staff and having a procedure where young athletes can complain about inappropriate behavior — that make sure children are protected.”
Business owners and investors are rapidly maneuvering to shield themselves from the prospect of higher taxes next year, a strategy that is sending ripples across Wall Street and broad areas of the economy.
Take Steve Wynn, the casino magnate, who has been a vocal critic of higher tax rates. He and his fellow shareholders in Wynn Resorts, the company announced, will collect a special dividend of $750 million on Tuesday, a payout timed to take advantage of current rates. Experts estimated that taking the payout this year instead of next could save Mr. Wynn, who owns a sizable stake in the company, more than $20 million.
For the wealthy like Mr. Wynn, the overriding goal is to record as much of their future income this year as they can. This includes moves as diverse as sales of businesses, one-time dividends and the sale of stocks that have been big winners.
“In my 30 years in practice, I’ve never seen such a flood of desire and action to transfer a business and cash out,” said Kenneth K. Bezozo, a partner in New York with the law firm Haynes and Boone. “We’re seeing a watershed event.”
Whether small business owners or individuals saving for retirement, investors are being urged by their advisers to reconsider their holdings. Along the way, many are shedding the very investments that have been the most popular over the last year, contributing to recent sell-offs in formerly high-flying shares like Apple and Amazon.
Investors typically take profits in their own portfolio at year-end, but the selling appears to be more targeted this year. Stocks with large dividends, for instance, are seen as less attractive because of the perceived likelihood of a sharp increase in the tax rate on dividends.
All this is weighing on the broader financial markets, as worries mount about the economic drag from the combination of higher tax rates and reduced government spending set for January if President Obama and Senate Republicans cannot reach a budget compromise before then.
Fears about the fiscal impasse in Washington, along with anxiety about fading corporate profits and weakening economies abroad, have pushed the benchmark Standard & Poor’s 500-stock index down about 5 percent since the election. On Friday, major stock indexes had their best showing of the week after President Obama and Republican leaders signaled that a compromise was possible.
Even if many of the tax breaks scheduled to expire survive a new budget deal, some business owners and investors are bracing for substantial increases in specific areas of the tax code.
The top rate on dividends, for example, could climb to 39.6 percent from 15 percent if no action is taken. Capital gains taxes, which now top out at 15 percent, could rise above 20 percent, many financial advisers say. Most investment income will also be subject to a 3.8 percent charge to help pay for President Obama’s health care law.
Stocks that pay big dividends have been popular in recent years among investors eager for an alternative to the meager returns on bank savings accounts and Treasury securities. Since October, though, the two sectors that provide the most generous dividend payments — utilities and telecommunication stocks — have been among the worst performers, hurt also in part by the devastation of Hurricane Sandy on the East Coast. Utility companies in the S.& P. 500 have fallen 9.4 percent from their highs in October. Telecommunication stocks in the index have dropped 11.3 percent from theirs, compared with the broader index’s 6.8 percent decline from its recent high.
John Moorin, the founder of a medical equipment company near Indianapolis, said he sold about $650,000 in dividend-paying stocks like McDonald’s and Coca-Cola a few days after the election, worried about the potential increase in taxes.
“I love these companies, but I’m so scared that now all of the sudden I’m going to get taxed at such a rate with them that they won’t be worth anything,” Mr. Moorin said.
Although Mr. Wynn has declared special dividends at the end of the year before — most recently in 2011 — in a call with analysts last month, he hinted that higher taxes would cause him and other chief executives to rethink big payouts in future years.
In the meantime, he added, it was “very difficult to do long-range planning with a government that moves as much as this does on so many issues.”
Leggett & Platt, a diversified manufacturer based in Carthage, Mo., decided to move up payment of its fourth-quarter dividend to December from January so shareholders could take advantage of the lower rate.
“If we can help our shareholders avoid taxes and keep more of their dividends, we’ll do it,” said David M. DeSonier, senior vice president for corporate strategy and investor relations.
Residents in Gaza dug through the rubble of an apartment building hit by Israeli rockets. More Photos »
GAZA CITY — Israeli forces killed at least 11 people, including several children, in a single airstrike that destroyed a home here on Sunday, as Israel pressed its bombardment of the Gaza Strip for a fifth day, deploying warplanes and naval vessels to pummel the coastal enclave.
The airstrike, which the Israeli military said was meant to kill a Palestinian militant involved in the recent rocket attacks, was the deadliest operation to date and would no doubt weigh on negotiations for a possible cease-fire. Among the dead were five women and four small children, The Associated Press reported, citing a Palestinian health official.
Two media offices were also hit on Sunday, and Prime Minister Benjamin Netanyahu of Israel warned of a “significant” expansion in the onslaught, which has already killed over 50 people, many of them civilians.
Speaking on Sunday from Bangkok, President Obama condemned missile attacks by Palestinian fighters in Gaza and defended Israel’s right to protect itself.
“There’s no country on earth that would tolerate missiles raining down on its citizens from outside its borders,” Mr. Obama said in his first public comments since the violence broke out. “We are fully supportive of Israel’s right to defend itself.”
The president also said that efforts were under way to address Israel’s security concerns and end the violence. “We’re going to have to see what kind of progress we can make in the next 24, 36, 48 hours,” Mr. Obama said.
Even as the diplomacy intensified on Sunday, the attacks continued in Gaza and Israel.
Mr. Netanyahu made his warning as militants in Gaza aimed at least one rocket at Tel Aviv, a day after Israeli forces broadened the attack beyond military targets, bombing centers of government infrastructure in Gaza, including the four-story headquarters of the Hamas prime minister.
“We are exacting a heavy price from Hamas and the terrorist organizations, and the Israel Defense Forces are prepared for a significant expansion of the operation,” Mr. Netanyahu told his cabinet at its routine Sunday meeting, referring directly to the of thousands of reservists who have been called up and the massing of armor on the Gaza border that many analysts have interpreted as preparations for a possible invasion.
“I appreciate the rapid and impressive mobilization of the reservists who have come from all over the country and turned out for the mission at hand,” Mr. Netanyahu said. “Reservist and conscript soldiers are ready for any order they might receive.”
His remarks were reported shortly after a battery of Israel’s Iron Dome defense shield, hastily deployed near Tel Aviv on Saturday in response to the threat of longer-range rockets, intercepted at least one aimed at the city on Sunday, Israeli officials said. It was the latest of several salvos that have illustrated Hamas’s ability to extend the reach of its rocket attacks.
Since Wednesday, when the escalation of the conflict began, Iron Dome has knocked 245 rockets out of the sky, the military said Saturday, while 500 have struck Israel.
The American-financed system is designed to intercept only rockets streaking toward towns and cities and to ignore those likely to strike open ground. But on Sunday a rocket fired from Gaza plowed through the roof of an apartment building in the southern Israeli city of Ashkelon. There were no immediate reports of casualties there.
In Gaza City, the crash of explosions pierced the quiet several times throughout the early morning.
Before the latest deadly strike involving civilians on Sunday, Hamas health officials had said the Palestinian death toll had risen to 53. One of the latest victims was a 52-year-old woman whose house in the eastern part of Gaza City was bombed around lunchtime.
A few hours earlier, a Hamas militant was killed and seven people were wounded in an attack on the Beach Refugee Camp, where Ismail Haniya, the Hamas prime minister, has a home. Those killed on Sunday included three children ages 1 through 5, the health officials said.
In Israel, 3 civilians have died and 63 have been injured. Four soldiers were wounded on Saturday.
The onslaught continued despite talks in Cairo that President Mohamed Morsi of Egypt said Saturday night could soon result in a cease-fire. Mr. Netanyahu said he would consider a comprehensive cease-fire if the launchings from Gaza stopped.
The attack on Mr. Haniya’s office, one of several on government installations, came a day after he hosted his Egyptian counterpart in the same building, a sign of Hamas’s new legitimacy in a radically redrawn Arab world.
Jodi Rudoren and Fares Akram reported from Gaza City. Reporting was contributed by Isabel Kershner, Carol Sutherland and Iritz Pazner Garshowitz from Jerusalem; Tyler Hicks from Gaza, Peter Baker from Bangkok, Alan Cowell from London, Michael Schwirtz from New York and David D. Kirkpatrick and Mayy El Sheikh from Cairo.
