Jenna von Oy Keeps Newtown Hometown In Her Prayers

By Jenna von Oy

12/15/2012 at 03:00 PM EST

My husband Brad and I christened our daughter Gray at St. Rose of Lima

Courtesy of Jenna Von Oy

Every school shooting I've ever heard about has been exceedingly heartbreaking and has stirred feelings of both rage and sorrow in me. Each one is tragic and awful, and there have been far too many of them in recent years.

But Friday's massacre in Newtown has affected me in a profoundly personal way, as I have a unique perspective on the town … I am blessed to have grown up there.

My family still lives in Newtown and, in my heart of hearts, I still consider myself one of its residents. My attachment is deep-rooted. We are mourning the loss of some of our own this week, and it is a sobering reminder that violence does not discriminate. It can hit close to home.

I am fiercely proud to say I was born and raised in Newtown. It is where I was brought home from the hospital, attended my first day of kindergarten, learned to ride my bike, and climbed my first tree.

As I watched President Obama's press conference, I sobbed as he mentioned that the children who died had their whole lives ahead of them: graduations, weddings, having children of their own … I have celebrated every one of those milestones in Newtown.

I graduated from Newtown High School, got married two years ago in a bed and breakfast on its Main Street, and recently had my daughter christened at St. Rose, where the vigil was held Friday evening. Newtown is the foundation of my history and it holds a very special place in my heart.

It is nearly impossible to unscramble my thoughts and put them to paper at a time like this, but I wanted to express my love and support for the town that has given me so many wonderful memories.

I hope my intent isn't misunderstood here; this is not about me. This is about a peaceful, beautiful, wonderful place I've called home since my childhood; I am feeling very protective of it after Friday's crisis. This is about the people who are left to pick up the pieces after an unfathomable hardship.

I grieve for the parents who lost their beautiful, innocent babies; some of them were friends from high school. My heart hurts for the families who have to explain this loss to the frightened children they brought home.

Newtown has always been the epitome of a quintessentially quaint New England town. It resembles a Norman Rockwell painting, and I know it will be all too easy for that image to be marred by these appalling events. But Newtown is so much more than this shocking incident, and I desperately hope America will see that.

Childhood photo with my brother in front of the Newtown Bee

Courtesy of Jenna Von Oy

I know, with absolute certainty, the residents of Newtown will rise up with love and strength in the face of their suffering. When you think of my hometown, I hope you'll think beyond this moment in its history.

When the news first reported the shooting at Sandy Hook Elementary School, my emotional spectrum ranged from stunned and horrified, to inconsolable and numb. I am still feeling all of those things, and I don't expect that to go away anytime soon. This isn't something that's easily reconcilable.

Moreover, I share the overwhelming grief of the families affected by this tragedy. As a parent, I don't know how to make sense of it, and I am hugging my daughter that much tighter tonight because of it. No parent should ever have to experience a loss such as this one. It is unspeakable, and there is nothing fair about it.

There aren't enough prayers to ease their pain, but I'm giving it all I've got, regardless. It is all I have to give, and I hope you'll join me. Beyond that, there are no words.

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Fewer health care options for illegal immigrants

ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.

The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.

To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.

But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.

When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.

And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.

In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."

The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.

Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.

Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.

A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.

California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.

The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.

And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.

If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.

Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.

The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.

"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."

Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.

There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.

Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.

For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.

"They always attended to me," she said, "even though it's slow."

___

Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .

Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .

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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."

Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.

"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.

"Next week is going to be a Capitol Hill-driven market."

With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.

Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.

"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.

"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."

Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.

BEWARE OF THE WITCH

This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.

"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.

RETHINKING APPLE

Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.

Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.

On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.

"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.

But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.

(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Voters in Egypt Cast Ballots on Draft Constitution

Lynsey Addario for The New York Times

A polling site in Cairo on Saturday. Lines were long as a referendum on an Islamist-backed charter got off to an orderly start. More Photos »

CAIRO — Egyptians voted peacefully and in large numbers on Saturday in a referendum on an Islamist-backed draft constitution, hoping that the results would end three weeks of violence, division and distrust between the Islamists and their opponents over the ground rules of Egypt’s promised democracy.

By midmorning, long lines had formed outside polling stations around the country. Military officers were on hand to ensure security. Despite a new outbreak of fighting over the charter in Alexandria the day before and opposition warnings of chaos, the streets of the capital, Cairo, were free of major protests for the first time in weeks. By 9 p.m., lines were still long and election authorities had extended polling hours to 11.

The vote on a new constitution appeared to be yet another turning point for Egypt’s nearly two-year-old revolution. After weeks of violence and threats of a boycott, the strong turnout and orderly balloting suggested a turn toward stability, if not the liberalism some revolutionaries had hoped for.

Regardless of the outcome of the vote, to be completed next Saturday, widespread participation provided the political process with a degree of credibility, pulling Egypt back from the brink of civil discord. It remained to be seen whether the losing side would accept the result, and many Egyptians may have cast ballots mainly out of a desire to end the bedlam of the political transition, but the election was expected to bolster the government’s legitimacy and solidify the power of President Mohamed Morsi.

Neighbors continued to spar as they waited in line. Some said that Egypt’s new Islamist leaders had unfairly steamrollered the charter over the objections of other parties and the Coptic Christian Church, and that as a result the new charter failed to protect fundamental rights. Others blamed the Islamists’ opponents for refusing to negotiate in an effort to undermine democracy because they could not win at the ballot box. Many expressed discontent with political leaders on both sides of the fight.

“Neither group can accept its opposition,” said Ahmed Ibrahim, 40, a government clerk waiting to vote in a middle-class neighborhood in the Nasr City area of Cairo. Whatever the outcome, he said, “one group in their hearts will feel wronged, and the other group will gloat over their victory, and so the wounds will remain.”

The referendum on a new constitution once promised to be a day when Egyptians realized the visions of democracy, pluralism and national unity that defined the 18-day revolt against then-President Hosni Mubarak. But then came nearly two years of chaotic political transition in which Islamists, liberals, leftists, the military and the courts all jockeyed for power over an ever-shifting timetable.

The document that Egyptians voted on was a rushed revision of the old Mubarak charter, and many international experts faulted it as a missed opportunity, stuffed with broad statements about Egyptian identity but riddled with loopholes regarding the protection of rights.

Worse still, for many, was the polarizing endgame battle that the charter provoked. Leaders of the Muslim Brotherhood, the Islamist group allied with Mr. Morsi, said more than 35 of its offices around the country, including its Cairo headquarters, had been attacked and vandalized over the last three weeks. A night of street fighting between his Islamist supporters and their opponents killed at least 10.

Many voters waiting in line said they rejected the exploitation of the emotional issue of religion by both sides: the Islamists who sought to frame the debate over the constitution as an argument over Islamic law, and opponents who accused Mr. Morsi and his Islamist allies of laying the groundwork for a theocracy.

“It is not about these emotional issues,” said Talan Hassaballah, a businessman waiting to vote in the Nasr City neighborhood. “I am going to vote no, but not because I disagree with the Muslim Brotherhood or the president.”

Like most who said they would vote against the proposed constitution, he faulted its provisions on “social justice,” like guarantees of human rights, workers’ rights and social services. “They are vague,” he said.

Tensions with Egypt’s Christians, believed to make up about 10 percent of the population, were rubbed raw by the debate. Ultraconservative Islamist satellite networks often faulted angry Christians for provoking violence, and many Christians were shocked that the Islamist leaders of the constitutional assembly had pushed the draft through even after the official representatives of the Coptic Church had withdrawn in protests.

“The entire Christian community was offended,” Nagwa Albert, 56, said after she voted against the constitution. Speaking of the Islamist leaders’ statements to rally support for the draft, she said: “It feels like the beginning of a war.”

Mayy El Sheikh and Mai Ayyad contributed reporting.

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Xbox 720 and PlayStation 4 might not launch until 2014

Nintendo (NTDOY) says its kickstarted the next generation of video game consoles with the Wii U. But considering its graphics and processing power are comparable to Microsoft’s (MSFT) Xbox 360 and Sony’s (SNE) PlayStation 3, hardcore gamers are holding out for the next Xbox, tentatively dubbed “Xbox 720,” and next-generation PlayStation, tentatively called PS4. Rumors insist Microsoft and Sony will both launch their next consoles in the fall of 2013, but SemiAccurate, the website that first reported the next Xbox could see a delay, says there is a bit of confusion over how the consoles are progressing and when they’ll arrive.

According to SemiAccurate, the next Xbox is currently code-named “Kryptos” and not “Durango” anymore, and the next PlayStation is now code-named “Thebes” rather than “Orbis.” The PS4 will reportedly have a 28-nanometer AMD chipset and will be produced by IBM or Global Foundries.

SemiAccurate says the PS4 could be released in spring of 2014 or fall 2014 and the Xbox 720 could still see the delay from fall 2013 to 2014.

Xbox World claimed last month that the next Xbox will have a Blu-ray disc drive, Kinect 2.0, directional audio, TV output and input, an “innovative controller” and support for augmented reality glasses – all packaged in a magnesium alloy shell that will supposedly use the same patented “VaporMg” process found on the Surface tablet.

Not only that, but Microsoft is also working on an “Xbox Lite,” according to reports from earlier this year.

As for PS4 details, VG247 reported in November that Sony has already sent out various developer kits with specs including 16GB of RAM and 256GB of storage.

Sony and Microsoft are expected to reveal their next consoles at E3 2013 this coming June.

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Gaming News Headlines – Yahoo! News

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Marisa Miller Welcomes a Son

Mom & Babies
Celebrity Baby Blog

12/14/2012 at 04:00 PM ET

Joe Scarnici/Getty

She’s moved on from deary, cheery and weary to pure baby bliss.

Marisa Miller and her husband, music producer Griffin Guess are parents after welcoming their first child on Thursday, Dec. 13, her rep confirms to PEOPLE exclusively.

Son Gavin Lee Guess was born in Santa Cruz, Calif. at 7:58 p.m., weighing in at 8 lbs., 10 oz. and measured 22¼ inches long.

“I’m completely overjoyed by the birth of our son. I feel so blessed to be a mom and am so excited to experience this next part of life,” the model, 34, tells PEOPLE.

After confirming she was expecting in June, and in July announcing she was having a baby boy, the former Victoria’s Secret model concentrated on healthy habits during her pregnancy — a decision that clearly paid off for Miller.

Baring her bump for a series of black and white photos, the mom-to-be told Allure.com she was committed to fully embracing her new body.

“Gaining weight is part of charting your progress,” the actress, who will next star opposite Ryan Reynolds in R.I.P.D., explained. “Yes, I was seeing numbers I had never seen before, but I let go of that because I had a new goal and focus.”

– Anya Leon

RELATED: Marisa Miller’s PEOPLE.com Pregnancy Blog

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APNewsBreak: Texas cancer probe draws NCI scrutiny

AUSTIN, Texas (AP) — The National Cancer Institute confirmed Friday that federal officials are taking a closer look at a troubled $3 billion cancer-fighting effort in Texas that is under a criminal investigation over a lucrative taxpayer-funded grant awarded by the state agency.

The Cancer Prevention and Research Institute of Texas has coveted status as an NCI-approved funding entity — an exclusive group headlined by the nation's most prominent cancer organizations. The list is fewer than two dozen and includes the American Cancer Society, Susan G. Komen for the Cure and federal entities like the Center for Disease Control and Prevention.

The designation is a federal seal-of-approval that signals high peer review standards and conflict of interest policies. Yearlong turmoil within the Texas institute, or CPRIT, reached a new peak this week when the agency's beleaguered chief executive asked to resign and prosecutors opened cases following an $11 million grant to a private company that was revealed to have bypassed an independent review.

NCI spokeswoman Aleea Farrakh Khan told The Associated Press that officials are "evaluating recent events" at CPRIT. She said officials have not made decisions or contacted the agency directly.

Members of CPRIT's governing board did not immediately return an email seeking comment.

NCI designation is not required for CPRIT to continue running the nation's second-largest pot of cancer research dollars, Khan said. But jeopardizing that status — and especially losing it — would be a severe blow to CPRIT's reputation, which already has been battered by sweeping resignations, internal accusations of politics trumping science and now a criminal investigation.

A recent internal audit at CPRIT discovered an $11 million funding request from Dallas-based Peloton Therapeutics was approved without the agency ever scrutinizing the proposal's merits. The revelation came only months after two Nobel laureates and other top scientists left the agency in protest over a $20 million grant some accused of being rushed to approval without a proper peer review.

While CPRIT is funded by taxpayers, donors to cancer nonprofits might look to an NCI designation for assurance that their money is in good hands.

"It says, 'If I'm donating money to this agency, if NCI is approving them, that means NCI says it's handling its money well,'" Khan said.

Khan added that CPRIT's inclusion on the list does not mean all of its funding mechanisms are NCI-approved.

An entire page of CPRIT's website is devoted to boasting its NCI designation. The agency says the status is important because it means cancer centers in Texas seeking its own NCI designation — so as to reassure patients or bolster recruitment — can include CPRIT research dollars in their calculations to maintain levels needed to be NCI approved.

"This enhances Texas' ability to leverage additional federal funding for cancer research and raises Texas' profile as a center for cancer research," according to the website.

Executive Director Bill Gimson submitted his resignation letter Tuesday but offered to stay on through January. He has described Peloton's improper funding as an honest mistake and said no one associated with CPRIT stood to personally profit from the company's award.

Prosecutors have not made any specific criminal allegations. Launching separate investigations into CPRIT are the Texas attorney general's office and the Travis County district attorney's public integrity unit, which investigates criminal misconduct within state government.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Wall Street slips with Apple as "cliff" looms

NEW YORK (Reuters) - Stocks fell on Friday, led by losses in the Nasdaq after another drop in shares of Apple, and as the overhang of "fiscal cliff" negotiations kept buyers on the sidelines.

Apple slid 4.2 percent to $507.21 after UBS cut its price target on the stock to $700 from $780. The stock of the most valuable U.S. company has been hit hard in the last three months. On Friday, Apple's stock fell after a tepid reception for the iPhone 5 in China.

The S&P Information Technology Index <.gspt> lost 0.9 percent as Apple fell and Jabil Circuit Inc shed 5 percent to $17.61 after UBS cut its price target.

The possibility of a "fiscal cliff" deal not taking place until early 2013 is rising. The back-and-forth negotiations over the fiscal cliff in Washington have kept markets on hold in what would already be a quiet period for stocks.

"We're faced with uncertainty ... and that's going to continue now into January. It basically puts everybody on hold and (you) just have the markets kind of thrash around," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.

President Barack Obama and U.S. House of Representatives Speaker John Boehner held a "frank" meeting on Thursday at the White House to discuss how to avoid the tax hikes and spending cuts set to kick in early in 2013.

The Dow Jones industrial average <.dji> shed 19.68 points, or 0.15 percent, to 13,151/04. The Standard & Poor's 500 Index <.spx> slipped 3.79 points, or 0.27 percent, to 1,415.66. The Nasdaq Composite Index <.ixic> dropped 19.24 points, or 0.64 percent, to 2,972.97.

American Express Co shares fell 1.5 percent to $56.83 and ranked as the heaviest weight on the Dow.

The S&P 500 dropped 0.6 percent on Thursday after six straight positive sessions. Investors are concerned that going over the cliff could tip the economy back into recession. While a deal is expected to ultimately be reached, a drawn-out debate - like the one seen over 2011's debt ceiling - can erode confidence.

Still, expectations of an eventual agreement have helped the S&P 500 bounce back over the last month. On Wednesday, the index hit its highest intraday level since late October. For the year, the S&P has climbed 12.6 percent.

"It's quieter than it has been recently. I think it's the Friday before the holiday week and people are starting to go away, and absent some big news out of Washington, I think things will be quieter," said Jeff Meyerson, head of trading for Sunrise Securities in New York.

Best Buy Co Inc slid 14 percent to $12.13 after the electronics retailer agreed to extend the deadline for the company's founder to make a bid. Shares jumped as much as 19 percent on Thursday after initial reports of a bid this week from founder Richard Schulze.

Consumer prices fell in November for the first time in six months, indicating U.S. inflation pressures were muted. A separate report showed manufacturing grew at its swiftest pace in eight months in December.

Data out of China was encouraging, as Chinese manufacturing grew at its fastest pace in 14 months in December. The news was seen as helping U.S. materials companies, including U.S. Steel , which rose 6 percent to $23.66.

(Reporting by Gabriel Debenedetti; Additional reporting by Caroline Valetkevitch; Editing by Bernadette Baum and Jan Paschal)

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Prosecutor Says Morsi Aides Interfered

Tara Todras-Whitehill for The New York Times

A demonstrator in Cairo on Thursday tried to remove part of a wall near the palace where President Mohamed Morsi resides.

CAIRO — A prosecutor in Cairo is accusing aides to President Mohamed Morsi of applying political pressure to an investigation into the bloody clashes here last week, in order to corroborate Islamists’ claims about a conspiracy against the president involving thugs paid to foment violence.

The complaints by the prosecutor, Mustafa Khater, have raised some of the most serious questions to date about the Morsi government’s commitment to the impartial rule of law, as well as about its ties to the Muslim Brotherhood, the Islamist group whose political arm the president once led.

Since the clashes outside the presidential palace last week, accounts have appeared claiming that Mr. Morsi’s Islamist supporters detained and abused dozens of opponents, whom they accused of being paid to attack them and kept tied up overnight by the gates of the presidential palace. A spokesman for Mr. Morsi said the president was not responsible for those events and had ordered an investigation.

If Mr. Khater’s accusations, detailed in a memorandum to senior judicial authorities that circulated widely on Thursday, are borne out, they would suggest that the president’s chief of staff was directly involved in the captives’ treatment.

The events resonate against the backdrop of the political battle raging over a draft constitution and the referendum on it that is scheduled for Saturday.

Mr. Morsi’s allies argue that the new charter will usher in a government of institutions and laws, but critics say it will provide too little protection for individual freedom. They see ominous hints of authoritarianism in Mr. Morsi’s attempt three weeks ago to claim unchecked powers until the referendum. He said he was putting himself above the law for a short time to keep his political opponents from using the courts to block the referendum.

Mr. Morsi’s first use of those broadened powers was to replace the country’s chief prosecutor, arguing that he had protected corrupt former officials and cronies from the overthrown government of Hosni Mubarak.

The local Cairo prosecutor’s accusations on Thursday suggest that Mr. Morsi merely replaced one politicized national chief prosecutor with another.

A spokesman for Mr. Morsi denied on Thursday that the president had meddled in the investigation of the events outside the palace.

“The presidency does not interfere or comment on the judiciary,” the spokesman, Khaled al-Qazzaz, said in an e-mail.

Defense lawyers confirmed elements of Mr. Khater’s account. During last week’s fighting, thousands of Islamist supporters of the president battled similar numbers of his opponents for hours with thrown rocks and occasional gunshots, and Islamists captured and detained dozens of their opponents. It is unclear how many of the captors belonged to the Muslim Brotherhood or more hard-line groups. But videos, corroborated by the accounts of victims, indicated that the vigilante jailers tried to bully their prisoners into confessing that they were paid to use violence as part of a conspiracy against the president.

Mr. Khater wrote that around dawn the next day, he received a phone call from Mr. Morsi’s newly appointed public prosecutor, Talaat Ibrahim Abdullah, who said that “49 thugs” had been arrested and detained outside a gate to the palace. Mr. Khater said that when he arrived at the scene, the president’s chief of staff, Refaa al-Tahtawi, displayed guns, knives and other implements along with a document stating that the Islamists had confiscated the weapons from the captives.

All 49 captives had been beaten, Mr. Khater wrote, and they said members of the Muslim Brotherhood had tried to coerce them into confessing that they had taken money to commit violence. But prosecutors found no evidence that they had done so.

Even so, Mr. Morsi declared in a televised speech later that night that prosecutors had obtained confessions.

Officials from the chief prosecutor’s office requested a “firm” response in the case, Mr. Khater wrote, and the officials later pressed Mr. Khater to at least order the detention of a group of poor and unemployed prisoners.

When Mr. Khater nonetheless released them all, Mr. Abdullah “reprimanded” him, according to the memorandum, and the following day ordered him transferred to the obscure town of Beni Suef in upper Egypt.

“The transfer was in fact a punishment for a violation that I haven’t committed, and constitutes an explicit threat to the entire team working on the case,” Mr. Khater wrote.

On Thursday, the transfer was canceled and Mr. Khater was restored to his position in Cairo without explanation.

Mr. Khater, Mr. Tahtawi and Mr. Abdullah could not be reached for comment.

Mayy El Sheikh contributed reporting.

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Selling flak jackets in the cyberwars

SAN FRANCISCO (Reuters) – When the Israeli army and Hamas trade virtual blows in cyberspace, or when hacker groups like Anonymous rise from the digital ether, or when WikiLeaks dumps a trove of classified documents, some see a lawless Internet.

But Matthew Prince, chief executive at CloudFlare, a little-known Internet start-up that serves some of the Web’s most controversial characters, sees a business opportunity.

Founded in 2010, CloudFlare markets itself as an Internet intermediary that shields websites from distributed denial-of-service, or DDoS, attacks, the crude but effective weapon that hackers use to bludgeon websites until they go dark. The 40-person company claims to route up to 5 percent of all Internet traffic through its global network.

Prince calls his company the “Switzerland” of cyberspace – assiduously neutral and open to all comers. But just as companies like Twitter, YouTube and Facebook have faced profound questions about the balance between free speech and openness on the Internet and national security and law enforcement concerns, CloudFlare‘s business has posed another thorny question: what kinds of services, if any, should an American company be allowed to offer designated terrorists and cyber criminals?

CloudFlare’s unusual position at the heart of this debate came to the fore last month, when the Israel Defense Forces sought help from CloudFlare after its website was struck by attackers based in Gaza. The IDF was turning to the same company that provides those services to Hamas and the al-Quds Brigades, according to publicly searchable domain information. Both Hamas and al-Quds, the military wing of the Palestinian Islamic Jihad, are designated by the United States as terrorist groups.

Under the USA Patriot Act, U.S. firms are forbidden from providing “material support” to groups deemed foreign terrorist organizations. But what constitutes material support – like many other facets of the law itself – has been subject to intense debate.

CloudFlare’s dealings have attracted heated criticism in the blogosphere from both Israelis and Palestinians, but Prince defended his company as a champion of free speech.

“Both sides have an absolute right to tell their story,” said Prince, a 38-year old former lawyer. “We’re not providing material support for anybody. We’re not sending money, or helping people arm themselves.”

Prince noted that his company only provides defensive capabilities that enable websites to stay online.

“We can’t be sitting in a role where we decide what is good or what is bad based on our own personal biases,” he said. “That’s a huge slippery slope.”

Many U.S. agencies are customers, but so is WikiLeaks, the whistle-blowing organization. CloudFlare has consulted for many Wall Street institutions, yet also protects Anonymous, the “hacktivist” group associated with the Occupy movement.

Prince‘s stance could be tested at a time when some lawmakers in the United States and Europe, armed with evidence that militant groups rely on the Web for critical operations and recruitment purposes, have pressured Internet companies to censor content or cut off customers.

Last month, conservative political lobbies, as well as seven lawmakers led by Ted Poe, a Republican from Texas, urged the FBI to shut down the Hamas Twitter account. The account remains active; Twitter declined to comment.

MATERIAL SUPPORT

Although it has never prosecuted an Internet company under the Patriot Act, the government’s use of the material support argument has steadily risen since 2006. Since September 11, 2001, more than 260 cases have been charged under the provision, according to Fordham Law School’s Terrorism Trends database.

Catherine Lotrionte, the director of Georgetown University’s Institute for Law, Science and Global Security and a former Central Intelligence Agency lawyer, argued that Internet companies should be more closely regulated.

“Material support includes web services,” Lotrionte said. “Denying them services makes it more costly for the terrorists. You’re cornering them.”

But others have warned that an aggressive government approach would have a chilling effect on free speech.

“We’re resurrecting the kind of broad-brush approaches we used in the McCarthy era,” said David Cole, who represented the Humanitarian Law Project, a non-profit organization that was charged by the Justice Department for teaching law to the Kurdistan Workers’ Party, which is designated by the United States as a terrorist group. The group took its case to the Supreme Court but lost in 2010.

The material support law is vague and ill-crafted, to the point where basic telecom providers, for instance, could be found guilty by association if a terrorist logs onto the Web to plot an attack, Cole said.

In that case, he asked, “Do we really think that AT&T or Google should be held accountable?”

CloudFlare said it has not been contacted about its services by the U.S. government. Spokespeople for Hamas and the Palestinian Islamic Jihad, told Reuters they contracted a cyber-security company in Gaza that out-sources work to foreign companies, but declined to comment further. The IDF confirmed it had hired CloudFlare, but declined to discuss “internal security” matters.

CloudFlare offers many of its services for free, but the company says websites seeking advanced protection and features can see their bill rise to more than $ 3,000 a month. Prince declined to discuss the business arrangements with specific customers.

While not yet profitable, CloudFlare has more than doubled its revenue in the past four months, according to Prince, and is picking up 3,000 new customers a month. The company has raked in more than $ 22 million from venture capital firms including New Enterprise Associates, Venrock and Pelion Venture Partners.

Prince, a Midwestern native with mussed brown hair who holds a law degree from the University of Chicago, said he has a track record of working on the right side of the law.

A decade ago, Prince provided free legal aid to Spamhaus, an international group that tracked email spammers and identity thieves. He went on to create Project Honey Pot, an open source spam-tracking endeavor that turned over findings to police.

Prince’s latest company, CloudFlare, has been hailed by groups such as the Committee to Protect Journalists for protecting speech. Another client, the World Economic Forum, named CloudFlare among its 2012 “technology pioneers” for its work. But it also owes its profile to its most controversial customers.

CloudFlare has hosted 4Chan, the online messaging community that spawned Anonymous. LulzSec, the hacker group best known for targeting Sony Corp, is another customer. And since last May, the company has propped up WikiLeaks after a vigilante hacker group crashed the document repository.

Last year, members of the hacker collective UgNazi, whose exploits include pilfering user account information from eBay and crashing the CIA.gov website, broke into Prince’s cell phone and email accounts.

“It was a personal affront,” Prince said. “But we never kicked them off either.”

Prince said CloudFlare would comply with a valid court order to remove a customer, but that the Federal Bureau of Investigation has never requested a takedown. The company has agreed to turn over information to authorities on “exceedingly rare” occasions, he acknowledged, declining to elaborate.

“Any company that doesn’t do that won’t be in business long,” Prince said. But in an email, he added: “We have a deep and abiding respect for our users’ privacy, disclose to our users whenever possible if we are ordered to turn over information and would fight an order that we believed was not proper.”

Juliannne Sohn, an FBI spokeswoman, declined to comment.

Michael Sussmann, a former Justice Department lawyer who prosecuted computer crimes, said U.S. law enforcement agencies may in fact prefer that the Web’s most wanted are parked behind CloudFlare rather than a foreign service over which they have no jurisdiction.

Federal investigators “want to gather information from as many sources as they can, and they’re happy to get it,” Sussmann said.

In an era of rampant cyber warfare, Prince acknowledged he is something of a war profiteer, but with a wrinkle.

“We’re not selling bullets,” he said. “We’re selling flak jackets.”

(Reporting By Gerry Shih in San Francisco and Nidal al-Mughrabi in Gaza; editing by Jonathan Weber and Claudia Parsons)

Internet News Headlines – Yahoo! News

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