L.A. Unified misspent millions marked for school lunches









At least eight California school districts have misappropriated millions of dollars in funding intended to pay for meals for low-income students — the biggest culprit being the Los Angeles Unified School District, according to a state Senate watchdog group.


The California Department of Education has ordered districts to repay more than $170 million in misused funds to their student meal programs, the California Senate Office of Oversight and Outcomes said in a report issued Wednesday. L.A. Unified has been forced to pay back more than $158 million in misappropriations and unrelated charges that the district made over six years ending in 2011.


State officials suspect the alleged misuse of funds could be more widespread across California school districts.








In most cases, school systems attempted to use cafeteria funds to pay for personnel, utilities and other expenses. Other school districts named in the report are Oxnard, San Diego, Santa Ana, San Francisco, Baldwin Park, Centinela Valley and Compton.


Oxnard was forced to repay $5.6 million. San Diego and Santa Ana are challenging the findings of the department, which has ordered them to pay $4.5 million and $2.7 million, respectively.


L.A. Unified redirected funding for years –- ignoring reports from administrators and its own inspector general –- before an employee alerted state authorities, the survey said. Among other expenses, the district diverted funding to pay for sprinklers and salaries of employees at a district television station.


L.A. Unified said in a statement that administrators have been working with the state to ensure compliance and said the district "looks forward to success with state education officials in this work to find a more rational approach to accounting and compliance guidelines for all schools statewide."


Federal regulations require districts to keep the student meal funding in an account to be used only for the improvement of food service. Most districts keep federal, state and other cafeteria revenues in that same account and all funds must comply with federal regulations, the report said.


The report, however, found that the system to monitor the spending of those funds is overloaded and that the regulations governing spending are too complex. School districts, as a result, have repeatedly disregarded the rules and subsequently contested violations as arguable interpretations of the law, the report said.


Oversight of these funds is carried out by 60 state examiners who monitor nearly 3,000 districts. Examiners — who are nutritionists — have not completed all inspections required by law since 2001 and "rarely take more than a cursory look at the books," the report said.


The diversion of funds often contributes to conditions that discourage eligible students from seeking free or reduced-priced meals. To maximize funds, districts have used cost-saving methods of serving processed rather than fresh foods, shortening lunch periods and cutting back on cafeteria maintenance and staff — all of which hinder student participation, the report said.


"They are literally taking food out of the mouths of kids," Richard Zeiger, chief deputy superintendent of public instruction, said in a statement.


From the 2004-2005 school year to 2010-2011, the number of L.A. Unified students eligible for reduced-price or free lunches fell below statewide averages. During those years, the district — the state's largest — averaged a participation rate of between 51% and 60% among eligible students. School districts statewide averaged between 71% and 74% participation.


Students who are eligible for reduced-priced or free lunches are from low-income and poverty-level families.


L.A. Unified has become a leader in providing more healthful meals, offering foods with less sodium and fat, and including more fresh fruit and vegetables. The district serves 650,000 meals a day.


The state has allowed L.A. Unified to use money from its general fund that was already going toward covering a deficit in its food services budget to "write off" the debt, the report said. The district has used those funds to pay off about $120 million so far.


The state Education Department said it has begun training employees on how to flag accounting issues and is in the process of hiring additional monitoring staff.


stephen.ceasar@latimes.com





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Selena Gomez works the front row at Neo show






NEW YORK (AP) — Selena Gomez sat front and center at the fashion show to preview the first collection in her collaboration with Adidas‘ streetwear Neo label.


But the runway at Wednesday evening’s show was a next-gen catwalk: Teenager bloggers were charged with styling the outfits instead of industry professionals.






Gomez thanked them as she stood on stage at the end of the show. She was flanked by models in denim shorts, Bermudas, slouchy sweats and T-shirts that read “Pirate Love.” There were a few graffiti prints sprinkled in, and some varsity jackets.


The clothes, mostly in sunny yellow, bright pink and navy, were more surf than sport, which is Adidas’ normal niche.


The show was very briefly interrupted by a protester trying to hand out leaflets about sweatshops.


Entertainment News Headlines – Yahoo! News





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Well: Think Like a Doctor: A Confused and Terrified Patient

The Challenge: Can you solve the mystery of a middle-aged man recovering from a serious illness who suddenly becomes frightened and confused?

Every month the Diagnosis column of The New York Times Magazine asks Well readers to sift through a difficult case and solve a diagnostic riddle. Below you will find a summary of a case involving a 55-year-old man well on his way to recovering from a series of illnesses when he suddenly becomes confused and paranoid. I will provide you with the main medical notes, labs and imaging results available to the doctor who made the diagnosis.

The first reader to figure out this case will get a signed copy of my book, “Every Patient Tells a Story,” along with the satisfaction of knowing you solved a case of Sherlockian complexity. Good luck.

The Presenting Problem:

A 55-year-old man who is recovering from a devastating injury in a rehabilitation facility suddenly becomes confused, frightened and paranoid.

The Patient’s Story:

The patient, who was recovering from a terrible injury and was too weak to walk, had been found on the floor of his room at the extended care facility, raving that there were people out to get him. He was taken to the emergency room at the Waterbury Hospital in Connecticut, where he was diagnosed with a urinary tract infection and admitted to the hospital for treatment. Doctors thought his delirium was caused by the infection, but after 24 hours, despite receiving the appropriate antibiotics, the patient remained disoriented and frightened.

A Sister’s Visit:

The man’s sister came to visit him on his second day in the hospital. As she walked into the room she was immediately struck by her brother’s distress.

“Get me out of here!” the man shouted from his hospital bed. “They are coming to get me. I gotta get out of here!”

His blue eyes darted from side to side as if searching for his would-be attackers. His arms and legs shook with fear. He looked terrified.

For the past few months, the man had been in and out of the hospital, but he had been getting better — at least he had been improving the last time his sister saw him, the week before. She hurried into the bustling hallway and found a nurse. “What the hell is going on with my brother?” she demanded.

A Long Series of Illnesses:

Three months earlier, the patient had been admitted to that same hospital with delirium tremens. After years of alcohol abuse, he had suddenly stopped drinking a couple of days before, and his body was wracked by the sudden loss of the chemical he had become addicted to. He’d spent an entire week in the hospital but finally recovered. He was sent home, but he didn’t stay there for long.

The following week, when his sister hadn’t heard from him for a couple of days, she forced her way into his home. There she found him, unconscious, in the basement, at the bottom of his staircase. He had fallen, and it looked as if he may have been there for two, possibly three, days. He was close to death. Indeed, in the ambulance on the way to the hospital, his heart had stopped. Rapid action by the E.M.T.’s brought his heart back to life, and he made it to the hospital.

There the extent of the damage became clear. The man’s kidneys had stopped working, and his body chemistry was completely out of whack. He had a severe concussion. And he’d had a heart attack.

He remained in the intensive care unit for nearly three weeks, and in the hospital another two weeks. Even after these weeks of care and recovery, the toll of his injury was terrible. His kidneys were not working, so he required dialysis three times a week. He had needed a machine to help him breathe for so long that he now had to get oxygen through a hole that had been cut into his throat. His arms and legs were so weak that he could not even lift them, and because he was unable even to swallow, he had to be fed through a tube that went directly into his stomach.

Finally, after five weeks in the hospital, he was well enough to be moved to a short-term rehabilitation hospital to complete the long road to recovery. But he was still far from healthy. The laughing, swaggering, Harley-riding man his sister had known until that terrible fall seemed a distant memory, though she saw that he was slowly getting better. He had even started to smile and make jokes. He was confident, he had told her, that with a lot of hard work he could get back to normal. So was she; she knew he was tough.

Back to the Hospital:

The patient had been at the rehab facility for just over two weeks when the staff noticed a sudden change in him. He had stopped smiling and was no longer making jokes. Instead, he talked about people that no one else could see. And he was worried that they wanted to harm him. When he remained confused for a second day, they sent him to the emergency room.

You can see the records from that E.R. visit here.

The man told the E.R. doctor that he knew he was having hallucinations. He thought they had started when he had begun taking a pill to help him sleep a couple of days earlier. It seemed a reasonable explanation, since the medication was known to cause delirium in some people. The hospital psychiatrist took him off that medication and sent him back to rehab that evening with a different sleeping pill.

Back to the Hospital, Again:

Two days later, the patient was back in the emergency room. He was still seeing things that weren’t there, but now he was quite confused as well. He knew his name but couldn’t remember what day or month it was, or even what year. And he had no idea where he was, or where he had just come from.

When the medical team saw the patient after he had been admitted, he was unable to provide any useful medical history. His medical records outlined his earlier hospitalizations, and records from the nursing home filled in additional details. The patient had a history of high blood pressure, depression and alcoholism. He was on a long list of medications. And he had been confused for the past several days.

On examination, he had no fever, although a couple of hours earlier his temperature had been 100.0 degrees. His heart was racing, and his blood pressure was sky high. His arms and legs were weak and swollen. His legs were shaking, and his reflexes were very brisk. Indeed, when his ankle was flexed suddenly, it continued to jerk back and forth on its own three or four times before stopping, a phenomenon known as clonus.

His labs were unchanged from the previous visit except for his urine, which showed signs of a serious infection. A CT scan of the brain was unremarkable, as was a chest X-ray. He was started on an intravenous antibiotic to treat the infection. The thinking was that perhaps the infection was causing the patient’s confusion.

You can see the notes from that second hospital visit here.

His sister had come to visit him the next day, when he was as confused as he had ever been. He was now trembling all over and looked scared to death, terrified. He was certain he was being pursued.

That is when she confronted the nurse, demanding to know what was going on with her brother. The nurse didn’t know. No one did. His urinary tract infection was being treated with antibiotics, but he continued to have a rapid heart rate and elevated blood pressure, along with terrifying hallucinations.

Solving the Mystery:

Can you figure out why this man was so confused and tremulous? I have provided you with all the data available to the doctor who made the diagnosis. The case is not easy — that is why it is here. I’ll post the answer on Friday.


Rules and Regulations: Post your questions and diagnosis in the comments section below.. The correct answer will appear Friday on Well. The winner will be contacted. Reader comments may also appear in a coming issue of The New York Times Magazine.

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Profound Weight of Layoffs Seen in Survey





Layoffs have touched nearly every American household in some fashion over the last few years, according to new survey data to be released Thursday by the John J. Heldrich Center for Workforce Development at Rutgers University.







Joe Raedle/Getty Images

Lissette Marquez, center, and Amiel Ali looked for jobs last week in Miami with the help of a South Florida Workforce customer service representative, Nelson Munoz, left.







While about 8 percent of Americans are unemployed, nearly a quarter of Americans say they were laid off at some point during the recession or afterward, according to the survey. More broadly, nearly eight in 10 say they know someone in their circle of family and friends who has lost a job.


“This to me is why the recession was so all-consuming and is likely to influence the American psyche,” said Cliff Zukin, a public policy and political science professor at Rutgers and co-author of the report. “Almost everyone, four out of five, were directly or one step removed from unemployment and all that goes with it financially, socially, psychologically.”


The survey presented a bleak view of the economic future.


A majority of Americans say they think it will be at least six years before the economy is made whole again, if ever. Three in 10 said the economy would never fully recover from the Great Recession.


“Despite significant improvements in the nation’s labor market, American workers’ concerns about unemployment, the job market, job security and the future of the economy have not changed much since we conducted a similar survey in August 2010,” the report said.


Just a third of Americans surveyed in this poll, conducted from Jan. 9-16, said they thought the economy would be better next year, the same share that said so two years earlier.


Of those laid off in recent years, nearly a quarter said they still had not found a job. Re-employment rates for older workers have been particularly bad, with nearly two-thirds of unemployed people 55 and older saying they actively sought a job for more than a year before finding one or had still not found work.


Not surprisingly, those who are unemployed are especially downbeat about many economic issues in addition to their own finances. Of those who were jobless and looking for work, 31 percent said their jobless benefits had run out and 58 percent said they were concerned their benefits would run out before they found work.


Of those who have found work, nearly half say their current job is a step down from the one they lost, and a slim majority say they earn less than they did in their previous job. A quarter of those re-employed said they thought that the hit to their standard of living would be permanent.


The reliance on one’s personal network and savings rather than the social safety net showed up frequently in the survey data.


More people reported borrowing money from friends and family than reported using food stamps. A third cut back on doctors’ visits or medical treatment. A quarter of the unemployed said they had enrolled in retraining programs of some kind; half of them reported paying for the education on their own or through family assistance. Twenty-three percent received some type of government financing for their training programs.


Unemployed workers were more likely than employed workers to say that the government is primarily responsible for helping the jobless. But even then, a majority of the unemployed thought that workers and employers were more responsible for getting people back to work than the government was.


Americans over all were also somewhat less critical of bankers this time than they were two years earlier. About one in three (35 percent) respondents attributed high unemployment levels to the actions of Wall Street, compared with 45 percent in 2010.


Americans were most likely to attribute high unemployment to cheap foreign labor. Four in 10 also said they believed illegal immigrants were taking Americans’ job opportunities — which does not bode well for political support for an amnesty program now being discussed in Washington.


Most people surveyed lost at least some of their savings. Asked about their financial health, six in 10 Americans said their finances would not improve in the next few years; just 16 percent said their family finances were already back to prerecession levels or suffered no loss in the first place.


More educated, better-off people were substantially more likely to report being as financially secure as they were before the recession began.


Responses are based on an online survey conducted by GfK using a nationally representative sample of 1,090 adults. The margin of sampling error is plus or minus three percentage points.


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D.A. alleges Chris Brown failed to complete community service









Los Angeles County prosecutors on Tuesday accused singer Chris Brown of failing to complete his court-ordered community service for his 2009 assault conviction and questioned whether the documents submitted as proof of his service were fraudulent.


A motion filed by the district attorney's office said that Brown claimed he completed four hours of trash pickup between 10 a.m. and 6 p.m. on one day when he was actually on a private plane to Cancun that he boarded at 4 p.m.


On another day that the entertainer said he was picking up trash in a Richmond, Va., alley, news photographers were snapping him 100 miles away in Washington, D.C., where he hosted a charity event that raised funds for the developmentally disabled, prosecutors contended.





Deputy Dist. Atty. Mary A. Murray outlined a series of inconsistencies with a report prepared by Richmond police about the number of hours Brown had served. She said a district attorney's investigation into Brown's community service claims found "significant discrepancies indicating at best sloppy documentation and at worst fraudulent reporting," and she asked a judge to order Brown to carry out his court-ordered labor in Los Angeles County instead of Virginia, where he lives.


Brown's attorney, Mark Geragos, disputed the allegations, accusing prosecutors of making "scurrilous, libelous and defamatory statements" against the R&B star. Geragos also disagreed with suggestions in supporting documents filed by the district attorney's office alleging that the defense attorney coached Virginia authorities in their conversations with Los Angeles County investigators.


"The motion is a disgrace, and the D.A. should be embarrassed, and I plan on asking for sanctions against the D.A.," Geragos said. "I also encourage the Richmond Police Department to take legal action against the L.A. district attorney."


Brown is on five years' probation after pleading guilty to a felony count of assault in connection with a 2009 attack on then-girlfriend Rihanna. As part of his probation, he was required to perform 180 days of community labor in Virginia.


The district attorney did not ask a judge to find Brown in violation of his probation. A judge will decide later whether Brown must serve additional community service time in Los Angeles County. If he does not fulfill his obligation to the court, he could be sent to jail.


The allegations by prosecutors add to the continuing problems that Brown is facing just days before Sunday's Grammy Awards; his album "Fortune" is one of the nominees.


The Los Angeles County district attorney's office said that Brown was the subject of a sheriff's investigation into a Jan. 27 fight at a West Hollywood recording studio where singer Frank Ocean was punched repeatedly by Brown and his friends. After the beating, Brown said, "We can bust on you too," the district attorney's motion alleged, noting that "bust" was slang for "shoot." Ocean declined to press charges, and sheriff's officials said they plan to close the case.


Last year in Miami, prosecutors said, Brown snatched a cellphone that a fan had used to take a photo of him and his then-girlfriend, telling the fan, "You're not going to put these pictures on a website," before driving off with the phone. The incident underscored the star's "anger-management problems" and at least amounted to petty theft, prosecutors said. Florida prosecutors declined to file charges against Brown.


Murray also cited a March 2011 incident at the "Good Morning America" studio in New York, where Brown became enraged when asked about his assault on Rihanna. Brown threw a chair through a window, an act that prosecutors said was "another demonstration of the defendant's anger-control issues and violent temper resulting in a violation of the law."


Brown, prosecutors said, has also violated his probation by smoking marijuana and failing to obtain permits to allow him to travel while on probation.


The latest allegations by the district attorney's office also focus attention on the Richmond Police Department, tasked with supervising the singer's community service requirements. In an August 2009 letter to the Los Angeles County court, Richmond Police Chief Bryan Norwood confirmed his department would oversee Brown's probation, saying the singer would be assigned "manual labor tasks, such as graffiti removal, trash pick up, washing cars, cleaning, maintaining grounds, etc."


But district attorney's investigators concluded that Richmond police rarely checked on Brown's progress, even though the chief wrote to the court in November 2011 vouching for Brown's completing more than 100 days of labor. Overtime records show that Richmond police officers provided Brown security at a concert performance, Murray wrote.


Richmond police declined to comment, citing the ongoing court case.


In addition, prosecutors said they could not find evidence that Brown completed more than 500 hours of community labor at Tappahannock Children's Center, where his mother had once served as director and where he spent time as a child. The center is an hour's drive from Richmond and rarely visited by police, according to Murray's motion.


Part of the singer's labor reportedly included waxing floors at the center. But a longtime janitor at the facility told investigators that he had maintained all of the floors for eight years and was unaware of anyone else doing so.


The janitor told a district attorney's investigator that he had been contacted by the center's current administrator "to warn him" about questions from L.A. County officials, the report said. The administrator "tried to tell [the janitor] how to handle our questions," the investigator wrote, to which the janitor said "he wasn't going to lie to anyone about anything."


andrew.blankstein@latimes.com


jack.leonard@latimes.com


Times staff writer Kate Mather contributed to this report.





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Singer Gloria Estefan, husband, plan Broadway show of their lives






NEW YORK (Reuters) – Cuban-American singer Gloria Estefan and her music entrepreneur husband, Emilio, are developing a new Broadway show based on their lives, the show’s producer said on Tuesday.


The couple is working with the Nederlander Organization on the show that will trace their lives from leaving Cuba to international stardom.






“The Estefans’ journey of success, led by raw talent and passion, is captivating as it drove them from relative obscurity to global sensations,” Jimmy Nederlander, the organization’s president, said in a statement announcing the deal.


Estefan, one of the most successful Latin crossover stars, fled Cuba with her family as a toddler. She met her husband in Miami and became the lead singer of his band, which was renamed the Miami Sound Machine. The couple married in 1978.


She has sold more than 100 million albums worldwide, won seven Grammy Awards and produced a list of hits including “Conga,” “The Rhythm is Going to Get You,” and “1,2,3.”


Emilio, a music, television and film director, was instrument in his wife’s career, and helped to develop stars such as Shakira, Ricky Martin and Jennifer Lopez.


“Sharing our life story through music will give us a new opportunity to honor our roots and, hopefully, to be able to inspire generations to come,” the couple said in a statement.


The Nederlander Organization said no creative team has been announced yet.


(Reporting by Noreen O’Donnell; Editing by Patricia Reaney and Eric Walsh)


Music News Headlines – Yahoo! News





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Ipswich Journal: Paul Mason Is One-Third the Man He Used to Be


Paul Nixon Photography


Paul Mason in 2012, two years after gastric bypass surgery stripped him of the unofficial title of “the world’s fattest man.”







IPSWICH, England — Who knows what the worst moment was for Paul Mason — there were so many awful milestones, as he grew fatter and fatter — but a good bet might be when he became too vast to leave his room. To get him to the hospital for a hernia operation, the local fire department had to knock down a wall and extricate him with a forklift.




That was nearly a decade ago, when Mr. Mason weighed about 980 pounds, and the spectacle made him the object of fascinated horror, a freak-show exhibit. The British news media, which likes a superlative, appointed him “the world’s fattest man.”


Now the narrative has shifted to one of redemption and second chances. Since a gastric bypass operation in 2010, Mr. Mason, 52 years old and 6-foot-4, has lost nearly two-thirds of his body weight, putting him at about 336 pounds — still obese, but within the realm of plausibility. He is talking about starting a jewelry business.


“My meals are a lot different now than they used to be,” Mr. Mason said during a recent interview in his one-story apartment in a cheerful public housing complex here. For one thing, he no longer eats around the clock. “Food is a necessity, but now I don’t let it control my life anymore,” he said.


But the road to a new life is uphill and paved with sharp objects. When he answered the door, Mr. Mason did not walk; he glided in an electric wheelchair.


And though Mr. Mason looks perfectly normal from the chest up, horrible vestiges of his past stick to him, literally, in the form of a huge mass of loose skin choking him like a straitjacket. Folds and folds of it encircle his torso and sit on his lap, like an unwanted package someone has set there; more folds encase his legs. All told, he reckons, the excess weighs more than 100 pounds.


As he waits to see if anyone will agree to perform the complex operation to remove the skin, Mr. Mason has plenty of time to ponder how he got to where he is. He was born in Ipswich and had a childhood marked by two things, he says: the verbal and physical abuse of his father, a military policeman turned security guard; and three years of sexual abuse, starting when he was 6, by a relative in her 20s who lived in the house and shared his bed. He told no one until decades later.


After he left school, Mr. Mason took a job as a postal worker and became engaged to a woman more than 20 years older than him. “I thought it would be for life, but she just turned around one day and said, ‘No, I don’t want to see you anymore — goodbye,’ ” he said.


His father died, and he returned home to care for his arthritic mother, who was in a wheelchair. “I still had all these things going around in my head from my childhood,” he said. “Food replaced the love I didn’t get from my parents.” When he left the Royal Mail in 1986, he said, he weighed 364 pounds.


Then things spun out of control. Mr. Mason tried to eat himself into oblivion. He spent every available penny of his and his mother’s social security checks on food. He stopped paying the mortgage. The bank repossessed their house, and the council found them a smaller place to live. All the while, he ate the way a locust eats — indiscriminately, voraciously, ingesting perhaps 20,000 calories a day. First he could no longer manage the stairs; then he could no longer get out of his room. He stayed in bed, on and off, for most of the last decade.


Social service workers did everything for him, including changing his incontinence pads. A network of local convenience stores and fast-food restaurants kept the food coming nonstop — burgers, french fries, fish and chips, even about $22 worth of chocolate bars a day.


“They didn’t deliver bags of crisps,” he said of potato chips. “They delivered cartons.”


His life became a cycle: eat, doze, eat, eat, eat. “You didn’t sleep a normal sleep,” he said. “You’d be awake most of the night eating and snacking. You totally forgot about everything else. You lose all your dignity, all your self-respect. It all goes, and all you focus on is getting your next fix.”


He added, “It was quite a lonely time, really.”


He got infections a lot and was transported to the hospital — first in a laundry van, then on the back of a truck and finally on the forklift. For 18 months after a hernia operation in 2003, he lived in the hospital and in an old people’s home — where he was not allowed to leave his room — while the local government found him a house that could accommodate all the special equipment he needed.


This article has been revised to reflect the following correction:

Correction: February 6, 2013

The headline on an earlier version of this article misstated Paul Mason’s current weight relative to what he weighed nearly a decade ago. He is now about one-third, not two-thirds, the weight he was then.



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DealBook: Liberty Global Reaches Deal for Virgin Media

8:07 p.m. | Updated

LONDON – Liberty Global, the international cable company owned by the American billionaire John C. Malone, agreed on Tuesday to buy the British cable company Virgin Media for about $16 billion.

The deal gives Liberty Global access to Europe’s largest cable market, and pits Mr. Malone against Rupert Murdoch, his longtime rival and biggest shareholder in Britain’s largest pay-TV provider British Sky Broadcasting.

Under the terms of the deal, Liberty Global said it had offered a package of cash and stock that it valued at $47.87 for each share in Virgin Media, a 24 percent premium over Virgin Media’s closing price on Monday.

The takeover ranks as one of the 10 largest cable deals of all time, according to figures from the data provider Thomson Reuters.

“Virgin Media will add significant scale and a first-class management team in Europe’s largest and most dynamic media and communications market,” Mike Fries, Liberty Global’s president and chief executive, said in a statement.

“After the deal, roughly 80 percent of Liberty Global’s revenue will come from just five attractive and strong countries — the U.K., Germany, Belgium, Switzerland and the Netherlands.”

News of the talks, confirmed earlier in the day in a statement by Virgin Media, came amid heightened merger and acquisition activity in the European television business. As European broadcasters suffer from stagnant or falling advertising revenue, American media conglomerates, looking to expand their international presence, are playing a significant role.

Mr. Malone and Mr. Murdoch have gone head-to-head before. From 2004 to 2006, they fought for control of DirecTV, the American satellite television provider.

The clash ended with Mr. Malone yielding a stake that he had built up in News Corporation. But the Liberty Group, which has operations in 13 countries, completed its purchase of a controlling stake in DirecTV from News Corporation in a cash-and-equity deal worth roughly $11 billion.

In recent years, Liberty Global has been expanding its presence in Europe and has operations from Ireland to Romania, though it failed last month in its bid to acquire the Telenet Group of Belgium for $2.7 billion. Liberty Global owns a 58 percent stake in Telenet.

Since early 2010, Liberty has bought two German rivals to build its operations in Europe’s largest economy.

In response, News Corporation has been expanding its global cable business, including the $2.1 billion acquisition of Consolidated Media, the Australian pay-television company, late last year.

Since the beginning of the financial crisis, Virgin Media, whose commercials feature the Olympic sprinting star Usain Bolt, has announced job cuts and invested in its broadband structure to reduce costs and increase its market share in Britain’s competitive cable market.

The company’s market capitalization stands at more than $10 billion. Including debt, its enterprise value is around $19.4 billion, according Thomson Reuters. Shares of Virgin Media, which are primarily traded on the Nasdaq, were up nearly 18 percent to $45.61 on the news of the Liberty talks.

Virgin’s shares have jumped almost 90 percent in the last 12 months, as more consumers sign up for so-called bundled services, including Internet and cellphone contracts. Virgin Media will announce its earnings on Wednesday.

Analysts warned that it would be difficult for Liberty Global to make additional savings between its current European operations and those of Virgin Media because Liberty does not have a business in Britain.

They said Liberty waited to make its move until Virgin made several upgrades to its network and restructured its debt. While Virgin has been gaining market share, it has 4.9 million customers, or roughly half the number of subscribers as its larger rival, BSkyB, according to filings by the companies.

The British billionaire Richard Branson, whose Virgin brand is used for a variety of products and services, including airlines and banks, owns less than 3 percent of Virgin Media.

News of the talks also came amid heightened merger and acquisition activity in the European television business. In December, Discovery Communications agreed to pay $1.7 billion for the Scandinavian operations of a large German commercial television company.

According to news reports this week, the majority owners of the German company are considering a sale. American media companies, including Time Warner, have been mentioned as potential buyers.

Analysts say the flurry of activity is driven by a desire among pay-television companies and broadcasters to diversify revenue sources that are coming under increased pressure. So broadcasters are setting up pay-television channels, and cable and satellite companies are looking to new content delivery platforms, like the Internet.

While commercial broadcasters remain powerful in Germany, Britain is the most lucrative pay-television market in Europe, according to Screen Digest, a research firm.

The deal for Virgin Media is expected to close during the second quarter of this year.

LionTree Advisors, Credit Suisse and the law firms Shearman & Sterling and Ropes & Gray advised Liberty Global, while Goldman Sachs, JPMorgan Chase and the law firms Fried Frank and Milbank advised Virgin Media.

Mark Scott reported from London, and Eric Pfanner from Paris.


This post has been revised to reflect the following correction:

Correction: February 5, 2013

Because of an editing error, an earlier version of this article misstated the first name of the leader of News Corporation. He is Rupert Murdoch, not Richard.

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GOP lawmakers want probe of Cal Fire over off-budget account









State Republican legislators want federal prosecutors to investigate the California Department of Forestry and Fire Protection for putting $3.6 million from legal settlements into an off-budget account.


"This subterfuge money has been spent on a wide array of questionable expenditures that has nothing to do with reimbursing the state for firefighting costs," the legislators wrote in a Friday letter to Gov. Jerry Brown, asking him to request an investigation by the U.S. attorney.


The letter follows a story in The Times that found that from 2005 to 2012, Cal Fire, as the department is commonly known, placed funds with the California District Attorneys Assn. to use for training and equipment. Cal Fire regulations say the money is supposed to be sent to the state general fund.








The legislators said the state attorney general had authorized sending the money to the California District Attorneys Assn. Brown served as attorney general from 2007 to 2011.


Lynda Gledhill, a spokeswoman for the current attorney general, denied that claim.


"The California Department of Justice did not endorse placement of settlement money into an account outside of the budget process," Gledhill said. "Atty. Gen. [Kamala] Harris has directed her office to examine the state's settlement practices to ensure all settlements are not only lawful, but fully transparent to the public."


The state Department of Finance has begun an audit of the fund, which is expected to take about two months, spokesman H.D. Palmer said.


In addition, a joint Assembly and state Senate committee announced last week that it will conduct a hearing to determine the extent California agencies are using off-budget accounts to hold money outside the state system.


The GOP letter was signed by 25 members of the Senate and Assembly. They also are using the issue to call for an end to a law the Legislature passed last year requiring rural homeowners who rely on state firefighters to pay $150 a year for fire prevention services.


"It is clear that the state has not been judicious in its use of taxpayer dollars," the lawmakers' letter said. "The state must stop these outrageous duplicitous tactics."


Senate Republican leader Robert Huff of Diamond Bar and Assembly GOP leader Connie Conway of Tulare sent a letter last week asking the attorney general to refer the matter to the U.S. attorney. A spokeswoman for the U.S. attorney in Sacramento said no information about the fund had been brought to her office.


Janet Upton, a Cal Fire spokeswoman, said the agency would welcome an investigation.


"We stand by the intent of this fund and have many examples of good things it's done that benefit the taxpayers of this state," she said.


Cal Fire's own audit, released in 2009, raised questions about whether the fund was allowed. But many of the critical comments were dropped from the audit's final version.


The scrutiny follows similar revelations that the state Department of Parks and Recreation hid $20 million as budget cuts were forcing the closure of parks. Although the Department of Finance looked for other secret funds, it did not find Cal Fire's account with the prosecutors' association.


jeff.gottlieb@latimes.com





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NJ Gov. Christie, Letterman laugh about fat jokes






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


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






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


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


Entertainment News Headlines – Yahoo! News





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