Amber Gold affair is one of the biggest financial scandals to hit Poland since the fall of communism in 1989.

It was pretty much all the money Bozena Oracz had after a working life as an accountant: the equivalent of $15,000. She placed it in a fund investing in gold, with the hope of paying for her daughter's studies and getting treatment for a bad knee.

Those dreams were dashed when she discovered she had fallen victim to an elaborate fraud scheme that has left thousands of Poles, many of them elderly, facing financial ruin.

The so-called Amber Gold affair is one of the biggest financial scandals to hit Poland since the fall of communism in 1989. The extent of wrongdoing is still murky, but it seems to have some elements of a pyramid scheme, meaning the financial institutionused funds from new clients to pay off older clients rather than investing them.

Consumed with anger and desperation, 58-year-old Oracz traveled last week from a small town near Warsaw to a law firm in the capital to consider whether, after losing 50,000 zlotys, she should risk another 3,000 zlotys ($920; €730) on the fee to join a class-action lawsuit seeking to recover some of the losses.

"This was a lot of money to me — it was my savings," Oracz said, fighting back tears. Now retired and living on a small pension, she sees no way of building another nest egg. "My pension barely covers my needs," she said.

The affair has raised questions about the effectiveness of Poland's justice system and government because authorities failed to act against the scheme despite red flags from regulators and the criminal record of its young owner. Scrutiny has also focused on the prime minister due to business dealings his son had with those running the scheme. The scandal has even touched democracy icon Lech Walesa, who fears it could tarnish his good name.

Prosecutors say investors lost about 163 million zlotys ($50 million; €40 million), a number that has been mounting as more and more victims come forward. Any law suits could take care years to go through the courts, with no guarantee of their outcome.

"People are desperate," said Pawel Borowski, a lawyer preparing the class-action suit that Oracz is considering joining. "In most cases the clients lost life savings or sold family properties to make investments."

The financial institution, Amber Gold, promised guaranteed returns of 10 to 14 percent a year for what it claimed were investments in gold. Many of its clients were older Poles who grew up under communism and lacked the savvy to question how a financial firm could guarantee such a high return on a commodity whose value fluctuates on the international market. The promised returns compared well to the 3 to 5 percent interest offered by banks on savings accounts — earnings essentially wiped out by the country's 4 percent inflation rate.

"These were people with a low level of financial education," said Piotr Bujak, the chief economist for Poland at Nordea Markets. "They think it's still like in the old times, where everything was guaranteed by the state. They underestimated the risk."

Amber Gold launched in 2009, opening branches in city centers alongside respected banks, with white leather sofas and other sleek touches that conveyed sophistication and respectability. It bombarded Poles with convincing advertisements. Some early investors got out with their expected gains, adding to the fund's credibility.

The company, based in Gdansk, capitalized on gold's allure while playing on people's anxieties in unpredictable financial times. "We are dealing with a loss of confidence in the entire financial system and an urgent need for safe investments," one ad said. "The environment for gold is perfect."

Amber Gold drew in 50,000 investors over its three years of operation, though the company's founder, Marcin Plichta, said there were only about 7,000 at the time of liquidation.

Soon after Amber Gold began operations, the Polish Financial Supervision Authority put it on a "black list" of institutions that operate like banks without authorization. There are 17 other such black-listed institutions in operation, but the regulators lack the authority to shut them down. This has sparked a debate in the government and news media about whether courts should be more aggressive in intervening.

According to prosecutors, the company did use some of its money to invest in at least one legitimate business: It was the main investor in budget airline OLT Express. It was this investment that brought Amber Gold down — when the airline filed for bankruptcy, Amber Gold entered liquidation and its scheme of investments unraveled. Its bank accounts were blocked and it was unable to return the money of thousands of its customers.

Plichta was charged this month with six counts of criminal misconduct.

Prime Minister Donald Tusk's center-right government went into damage-control mode when it emerged that the leader's son, Michal Tusk, had done PR work for the airline. Tusk said he had warned his son against doing business with Plichta but that ultimately he son makes his own decisions.

Leszek Miller, the head of the opposition Democratic Left Alliance, asked how Tusk could warn his son against involvement in the airline but not warn the thousands of Poles who invested in the fund. Miller has called for a parliamentary inquiry into the scandal.

Public discontent is also centering on the justice system because Plichta, 28, has past convictions for fraud, and many Poles are asking why authorities — aware of his criminal record — didn't stop him sooner. Born Marcin Stefanski, he took his wife's last name to distance himself from his past crimes.

The country's top prosecutor, Andrzej Seremet, admitted Monday that prosecutors were negligent in failing to heed multiple warnings since 2009 about Amber Gold from the financial supervisory body. He announced personnel changes in the office he blamed for mistakes.

The affair also has an unlikely connection to the Solidarity leader and former president, Lech Walesa, because an Oscar-winning director, Andrzej Wajda, was relying on money from Amber Gold to produce a film about Walesa's struggle in the 1980s.

Walesa came out publicly to make clear he is not involved in any way, saying he doesn't want his name "dirtied."

Many of the unlucky investors are not only furious but wracked by shame and guilt.

Engineer Andrzej Malinowski, 61, put three months of salary — 25,000 zlotys ($7,660; €6,100) — into Amber Gold. He made the investment without consulting with his wife, sensing that there was some risk and that she would not have agreed.

Now he is so shaken and embarrassed that he doesn't want to talk about it, leaving his wife, Danuta Malinowska, to help unravel the mess.

"He saw that gold was going higher and higher so he believed that maybe it would be a good deal," Malinowska said. "Now he has so much guilt that I am trying to help — contacting the lawyer, filling in the forms, writing to the prosecutors. But the justice system is very ineffective. I don't believe we will be getting any of this money back."

Miguel Angel Trevino Morales new leader is emerging at the head of one of Mexico's most feared drug cartels.

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  This undated image taken from the Mexican Attorney General's Office rewards program website on Aug. 23, 2012, shows the alleged leader of Zetas drug cartel, Miguel Angel Trevino Morales, alias âZ-40.â (AP Photo/Mexican Attorney General's Office website)

Mexico's Violent Zetas Cartel Sees New Leader Miguel Angel Trevino Morales A split in the leadership of Mexico's violent Zetas cartel has led to the rise of Miguel Angel Trevino Morales, a man so feared that one rival has called for a grand alliance to confront a gang chief blamed for a new round of bloodshed in the country's once relatively tranquil central states.

Trevino, a former cartel enforcer who apparently has seized leadership of the gang from Zetas founder Heriberto Lazcano Lazcano, is described by lawmen and competing drug capos as a brutal assassin who favors getting rid of foes by stuffing them into oil drums, dousing them with gasoline and setting them on fire, a practice known as a "guiso," or "cook-out".

Law enforcement officials confirm that Trevino appears to have taken effective control of the Zetas, the hemisphere's most violent criminal organization, which has been blamed for a large share of the tens of thousands of deaths in Mexico's war on drugs, though other gangs too have repeatedly committed mass slayings.

"There was a lot of talk that he was pushing really hard on Lazcano Lazcano and was basically taking over the Zetas, because he had the personality, he was the guy who was out there basically fighting in the streets with the troops," said Jere Miles, a Zetas expert and U.S. Immigration and Customs Enforcement special agent who was posted in Mexico until last year.

"Lazcano Lazcano, at the beginning he was kind of happy just to sit back and let Trevino do this, but I don't think he understood how that works in the criminal underworld," Miles said. "When you allow someone to take that much power, and get out in front like that, pretty soon the people start paying loyalty to him and they quit paying to Lazcano."

The rise has so alarmed at least one gang chieftain that he has called for gangs, drug cartels, civic groups and even the government to form a united front to fight Trevino Morales, known as "Z-40," whom he blamed for most of Mexico's violence.

"Let's unite and form a common front against the Zetas, and particularly against Z-40, Miguel Angel Trevino Morales, because this person with his unbridled ambition has caused so much terror and confusion in our country," said a man identified as Servando Gomez, leader of the Knights Templar cartel, in a viedo posted Tuesday on the internet.

A Mexican law enforcement official who wasn't authorized to speak on the record said the video appeared to be genuine,

"He is the main cause of everything that is happening in Mexico, the robberies, kidnappings, extortion," Gomez is heard saying on the tape. "We are inviting all the groups ... everyone to form a common front to attack Z-40 and put an end to him."

Trevino Morales has a fearsome reputation. "If you get called to a meeting with him, you're not going to come out of that meeting," said a U.S. law-enforcement official in Mexico City, who spoke on condition of anonymity because of the sensitivity of the topic.

In two years since Zetas split with their former allies in the Gulf cartel — a split in which Trevino reported played a central role — the gang has become one of Mexico's two main cartels, and is battling the rival Sinaloa cartel.

Now the Zetas' internal disputes have added to the violence of the conflict between gangs. Internal feuds spilled out into pitched battles in the normally quiet north-central state of San Luis Potosi in mid-August, when police found a van stuffed with 14 executed bodies.

San Luis Potosi state Attorney General Miguel Angel Garcia Covarrubias told local media that a 15th man who apparently survived the massacre told investigators that both the killers and the victims were Zetas. "It was a rivalry with the same organized crime group," Garcia Covarrubias said.

The leadership dispute also may have opened the door to lesser regional figures in the Zetas gang to step forward and rebel, analysts and officials said.

Analysts say that a local Zetas leader in the neighboring state of Zacatecas, Ivan Velazquez Caballero, "The Taliban," was apparently trying to challenge Trevino Morales' leadership grab, and that the 14 bullet-ridden bodies left in the van were The Taliban's men, left there as a visible warning by Trevino Morales' underlings.

The Taliban's territory, Zacatecas, appears to have been a hot spot in Trevino's dispute with Lazcano. It was in Zacatecas that a professionally printed banner was hung in a city park, accusing Lazcano of betraying fellow Zetas and turning them in to the police.

Trevino began his career as a teenage gofer for the Los Tejas gang, which controlled most crime in his hometown of Nuevo Laredo, across the border from the city of Laredo, Texas, officials say.

Around 2005, Trevino Morales was promoted to boss of the Nuevo Laredo territory, or "plaza" and given responsibility for fighting off the Sinaloa cartel's attempt to seize control of its drug-smuggling routes. He orchestrated a series of killings on the U.S. side of the border, several by a group of young U.S. citizens who gunned down their victims on the streets of the American city. American officials believe the hit men also carried out an unknown number of killings on the Mexican side of the border, the U.S. official said.

Trevino Morales is on Mexico's most-wanted list, with a reward of 30 million pesos ($2.28 million) offered for information leading to his capture.

Raul Benitez, a security expert at Mexico's National Autonomous University, said that the Zetas are inherently an unstable cartel with an already huge capacity for violence, and the possibility of more if they begin fighting internal disputes. "I think the Zetas are having problems, and there is no central command," he said.

The Zetas have been steadily expanding their influence and reaching into Central America in recent years, constructing a route for trafficking drugs that offloads Colombian cocaine in Honduras, ships it overland along Mexico's Gulf Coast and runs into over the border through Trevino Morales' old stomping grounds.

Samuel Logan, managing director of the security analysis firm Southern Pulse, notes that "personality-wise they (Trevino Morales and Lazcano) couldn't be more different," and believes the two may want to take the cartel in different directions. The stakes in who wins the dispute could be large for Mexico; Lazcano is believed to be more steady, more of a survivor who might have an interest in preserving the cartel as a stable organization.

"Lazcano may be someone who would take the Zetas in a direction where they'd become less of a thorn in the side for the new political administration," Logan said in reference to Enrique Pena Nieto, who is expected to take office as president on Dec. 1. "In contrast, Trevino is someone who wants to fight the fight."

Referring to Ignacio "Nacho" Coronel, a member of the rival Sinaloa Cartel who died in a shootout with soldiers in July 2010, Logan noted, "Trevino is someone who is going to want to go out, like Nacho Coronel went out, with his guns blazing."

Laurence Kilby, 40, of Cheltenham, who built and raced cars, was arrested after police seized cocaine with a street value of £1m.

 

Laurence Kilby, 40, of Cheltenham, who built and raced cars, was arrested after police seized cocaine with a street value of £1m.

A "privileged" racing driver has been jailed with 11 other drug smugglers. Crown Court heard he was head of a gang moving drugs from Eastern Europe along the M4 corridor to London, western England and south Wales.

Kilby was heavily in debt and turned to crime to maintain his lifestyle of fast cars and high living.

Raids on properties

Kilby was jailed in June but his conviction, and those of the rest of the gang, can now be reported following the conclusion of another trial.

In an undercover operation between Gloucestershire and Avon and Somerset Police, officers seized 3kg of cocaine as it was being ferried between London and Cheltenham in October 2010.

Another 1kg of the drug was intercepted in Cheltenham in February 2011 and 2.5kg was discovered in raids on properties in Cheltenham, Staverton, Bristol and London in July 2011.

The gang of 12 drug dealers from Gloucestershire, Bristol and London received sentences of between 18 years and four years seven months.

It can now be reported Kilby, who was jailed in June, and Vladan Vujovic, 43, of Grange Road, London were found guilty of conspiracy to supply Class A drugs. Both were jailed for 18 years.

Kilby built and raced cars with the company he owned, Ajec Racing

Richard Jones, 42, of Bradley Stoke, Bristol, was sentenced to 15 years for the same offence, and Mark Poole, 47, from Portishead, was sentenced to nine years seven months after pleading guilty to conspiracy to supply Class A drugs.

Police said Kilby sourced the drug in London from an East European criminal gang, which included Vujovic.

Vujovic ran a baggage handling company at Heathrow Airport and was said to receive the cocaine before it was distributed around the South West and Wales.

Kilby is the former husband of Flora Vestey, daughter of Lord Vestey, and was owner of motor racing firm Ajec Racing which was based in Staverton.

He was heavily in debt and turned to crime to maintain his lifestyle of fast cars and high living.

'Well-connected socialite'

In a separate charge, Kilby also pleaded guilty to stealing money from the charity Help for Heroes and was sentenced to 10 months, to run concurrently with his 18-year sentence.

He organised a charity race day at Gloucestershire Airport in July 2010, but failed to pass on between £3,500 and £4,000 in proceeds to the charity Help for Heroes.

Det Insp Steve Bean, from Gloucestershire Police, said Kilby was the main man.

"He portrayed himself as a well-connected socialite and businessman, whilst indulging his ambition as a minor league racing driver.

Police seized 6.5kg of drugs during the operation

"Despite a privileged background, the reality was that his lifestyle was funded by the ill-gotten gains of drug dealing.

"He continually lied and blamed others in an attempt to distance himself from the conspiracy.

"He displayed an air of arrogance and thought he could get away with it because he didn't get his hands dirty."

The majority of the gang were jailed in June, but reporting restrictions meant it could not be reported until now, after the sentencing of the remaining gang members.

Others members of the gang to be sentenced were:

• David Chapman, 29, from Bourton-on-the-Water, Gloucestershire, pleaded guilty to possession with intent to supply and was sentenced to nine years.
• William Garnier, 31, from Cheltenham, pleaded guilty to supplying Class A drugs and was sentenced six years and eight months.
• Garry Burrell, 46, from Easton, Bristol, and John Tomlin, 28, from Newtown, Gloucestershire both pleaded guilty to possession of cocaine and were sentenced to six years and six months and four years and six months respectively.
• Timothy Taylor, 40, from Bristol was found guilty of supplying Class A drugs and was sentenced to four years and seven months.
• Brian Barrett, 48, from Keynsham was found guilty of conspiracy to supply Class A drugs and was sentenced to 10 years.
• Scott Everest, 39, from Clevedon was found guilty of conspiracy to supply Class A drugs and was jailed for seven years.

Jonathan Tanner, 45, from Warminster was sentenced to 18 months for possession with intent to supply of cannabis, but was cleared of conspiracy to supply Class A drugs.

Darren Weetch, 38, from Bristol, pleaded guilty to possession of cocaine with intent to supply. He was sentenced to 16 months.

Officers also worked with Thames Valley Police and the Metropolitan Police during the operation.

Assange seeks political asylum

On Tuesday night WikiLeaks founder Julian Assange applied for political asylum at the Ecuadorian Embassy in London after failing in his bid to avoid extradition to Sweden to face sex crime allegations. The 40-year-old Australian is currently inside the building in Knightsbridge, having gone there on Tuesday afternoon to request asylum under the United Nations Human Rights Declaration. The country's foreign minister Ricardo Patino told a press conference in the South American country that it was considering his request. In a short statement last night, Mr Assange said: "I can confirm that today I arrived at the Ecuadorian Embassy and sought diplomatic sanctuary and political asylum. This application has been passed to the Ministry of Foreign Affairs in the capital Quito. I am grateful to the Ecuadorian ambassador and the government of Ecuador for considering my application." The computer expert, who was on £200,000 bail after failing in several attempts to halt extradition, attracted several high-profile supporters including Ken Loach and socialite and charity fundraiser Jemima Khan, who each offered £20,000 as surety. Other supporters included Bianca Jagger and veteran left-winger Tony Benn. The Swedish authorities want him to answer accusations of raping a woman and sexually molesting and coercing another in Stockholm in August 2010 while on a visit to give a lecture. Assange, whose WikiLeaks website has published a mass of leaked diplomatic cables that embarrassed several governments and international businesses, says the sex was consensual and the allegations against him are politically motivated. The Supreme Court last month ruled in favour of a High Court ruling that his extradition was legal. Last week the Supreme Court refused an attempt by him to reopen his appeal against extradition, saying it was "without merit". He had until June 28 to ask European judges in Strasbourg to consider his case and postpone extradition on the basis that he has not had a fair hearing from the UK courts. A statement issued on behalf of the Ecuadorian Embassy said Mr Assange would remain at the embassy while his request was considered.

Police study Murdoch's 'secret' iPhone account

Scotland Yard detectives investigating phone hacking at the News of the World are examining the call records of four newly discovered Apple iPhones issued to senior executives at News International. The smartphones, issued by O2 in a contract beginning in October 2009, included a handset given to James Murdoch, the former chairman and chief executive of News Corp Europe. Despite billing for the phones totalling nearly £12,000 between June last year and May this year, neither Operation Weeting nor the Leveson Inquiry was told of the existence of the smartphone accounts. Phone text messages and emails sent and received by News International executives and advisers have provided some of the most controversial evidence heard by Lord Justice Leveson's inquiry into press practices and ethics. It had been assumed that the email and text traffic from key News International executives was centred solely on their company BlackBerry account with Vodafone. In accounts seen by The Independent, issued through 02's corporate customer services at Arlington Business Park in Leeds, Mr Murdoch's iPhone account is listed as "active". Mr Murdoch is said to have told 02 that he specifically wanted a "white iPhone" when the smartphone was issued to him in the summer of 2009. Katie Vanneck-Smith, listed as News International's chief marketing officer, also has an active account. Two other NI executive numbers are described as disconnected. Between June last year – just before The Guardian revealed in July that the mobile phone of murdered schoolgirl Milly Dowler had been hacked into – and the beginning of the Leveson Inquiry in November, the NI iPhone accounts were billed for £9,650. Last night, Labour MP Tom Watson said people would be "shocked" to learn that the smartphones had been issued to key NI executives, while the company's disclosures focused only on the BlackBerry Vodafone accounts. Mr Watson said he hoped that News Corp's Management and Standards Committee, which is responsible for all matters relating to phone hacking, would enforce its own promise of full transparency and appropriate disclosure, by revealing all the data and logs held on the discovered phones to both the police and the Leveson Inquiry. Last night, a spokeswoman for News International, said: "Mr Murdoch fully co-operated with the Leveson Inquiry. It is ridiculous to suggest that James Murdoch keeps or kept a 'secret phone'." Meanwhile sources close to the Leveson Inquiry have denied that Lord Justice Leveson threatened to quit his judicial investigation following comments made in February by Michael Gove. The Education Secretary told a gathering of political journalists that the inquiry into press ethics and practices was creating a "chilling atmosphere" towards press freedom. During Prime Minister's Questions in the Commons the day after Mr Gove's lobby speech, David Cameron appeared to back his cabinet colleague's view. Concern that Mr Gove might be the Prime Minister's advance messenger prompted Lord Justice Leveson to call the Cabinet Secretary, Sir Jeremy Heywood. Whitehall sources say Lord Justice Leveson wanted to learn directly from Mr Cameron whether his inquiry was wasting public money on an ultimately futile exercise or whether his initial remit stood. Although the reassurances from No 10 took two days to arrive, sources claim there was no threat from the judge to resign from his own inquiry.

Metropolitan police anti-corruption unit investigated over payments

Scotland Yard is investigating allegations that detectives working for its anti-corruption unit have been paid thousands of pounds by a firm of private investigators. A parliamentary inquiry was told today that invoices, also seen by the Guardian, purport to show how a firm of private investigators made payments in return for information about the Metropolitan police investigation into James Ibori, a notorious Nigerian fraudster. On Tuesday, the Commons home affairs select committee was told by a lawyer involved in the case that invoices showed about £20,000 of potential payments to police officers in what amounted to an undetected case of "apparent corruption right at the heart of Scotland Yard". In recent weeks, as the Guardian investigated the allegations, the Met has sought to discourage the paper from publishing details about the case. But , after MPs heard the evidence, the Met dropped its previous insistence that there was "evidence that casts doubt on the credibility" of the allegations. A police source with knowledge of the investigation, which has been ongoing since October, said developments over the last 24 hours had now led police to take the allegations more seriously. The case revolves around a private investigation firm called RISC Management. Five years ago the firm was hired to work for Ibori, a former Nigerian state governor, after he discovered he was being investigated by the Met for serious fraud. Ibori recently pleaded guilty to money laundering and was jailed in the UK, after the conclusion of a major investigation into his financial affairs. The allegation now being investigated by police is that some detectives on the Met's Proceeds of Corruption Unit, which investigated Ibori, were receiving payments in exchange for information about the ongoing investigation. Invoices and other documents appearing to support the allegations have been anonymously posted to the Met and Independent Police Complaints Commission (IPCC). The documents have also been seen by the Guardian and separately sent to the home affairs committee, which is conducting an inquiry in whether private investigators should be subject to statutory regulation. Keith Vaz, the chair of the committee, has said there is growing concern in the wake of the phone-hacking scandal that some private investigators are operating in "the shadows" of the law. The Commons inquiry has been scrutinising the nexus between private investigators - many of whom are retired police officers - and their former colleagues who are still serving. On Tuesday morning, Mike Schwarz, a lawyer who represents one of Ibori's co-accused, told the inquiry about what he understood to be the significance of the material. He said it indicated possible corruption at the heart of the police investigation into the Nigerian politician's money laundering activities. The invoices are alleged to be from RISC Management to Speechly Bircham, a top firm of lawyers hired by Ibori to prepare his defence. Schwarz told MPs the invoices "perhaps" documented "payments made by RISC Management to sources, presumably police officers or those close to the investigation". He added: "The records, which I think the committee have, show about half-a-dozen payments totalling about £20,000 over a period of eight or nine months [...] it appears to be inappropriate if not corrupt." Schwarz told the committee that he believed RISC Management had been hired to "extract" information from the police investigation into Ibori. He said he had also seen emails - which he believed had also been forwarded to the committee - which confirmed "contact" between detectives investigating Ibori and the private investigators. Schwarz, from Bindmans solicitors, represents Bhadresh Gohil, a London-based solicitor jailed along with Ibori for orchestrating his money laundering scam. Gohil is now considering an appeal. Gohil is understood to have been sent the invoices, anonymously, while in Wandsworth Prison last summer. In a statement, the Met said: "The [force] is investigating an allegation that illegal payments were made to police officers for information by a private investigation agency. The Directorate of Professional Standards (DPS) referred the matter to the Independent Police Complaints Commission in October 2011 which agreed to supervise a DPS investigation into the allegations." Following Schwarz's evidence to parliament, the Met said it had dropped its previous claim to have recently "uncovered evidence" casting doubt on the allegations. Previously, the force had suggested an active line of inquiry was the theory that Gohil or his associates had fabricated the allegations to undermine the prosecution. In a previous statement, provided on Friday, the force said: "As a result of inquiries police have uncovered evidence that casts doubt on the credibility of these allegations. Warrants have been executed at two addresses in London and a quantity of paperwork and computer equipment recovered." Two weeks ago, following raids on properties, one of which was the Gohil's family home in Kent, the force said: "Officers believe that they have identified the originator of the information and a line of enquiry suggests that there may have been an attempt to pervert the course of justice." However, sources at the Yard said previous statements no longer fully represented their position. A source with knowledge of the Met inquiry said the change of stance was unrelated to Schwarz's parliamentary evidence. The source said that, instead, there had been developments in the investigation over the last 24 hours. Schwarz named three serving Met police officers in his testimony to parliament as being potential "culprits": detective inspector Gary Walters, detective constables named as John MacDonald and "Clark". All three officers declined an opportunity to respond to the allegations when contacted by the Guardian last week. However, RISC Management indicated Walters would deny "any and all allegations". RISC Management denied all the allegations about the company, saying it was not aware of the Scotland Yard investigation and had no knowledge of the alleged financial records. The firm confirmed it had been hired by Ibori's lawyers but denied making corrupt payments, saying it "has never paid a serving police officer for information and would never approve such payments". Keith Hunter, chief executive of the company, said: "RISC management does not need to pay serving police officers for confidential information as we pride ourselves on our ability to provide positive solutions and accurate information legitimately. RISC Management has a highly respected reputation for conducting professional investigations". He added that his company was "proud to have a network of highly professional consultants, contacts and resources. These individuals are hired precisely because of their unique skill set and expertise". He accused Schwarz of "grandstanding" in front of the Commons committee, instead of taking the "correct course of reporting the matter to the police". He said Schwarz had not produced any evidence to support his claims and acted for a convicted solicitor, Gohil, who was jailed for seven years for money laundering. Speechly Bircham denied any knowledge of wrongdoing and said it would be willing to assist with any police inquiries. The law firm stressed Schwarz did not suggest in his evidence to parliament that Speechly Bircham was "party to illegal or corrupt payments" and said any such allegation would be false and defamatory. Ian Timlin, the former Speechly Bircham lawyer who was at the time representing Ibori, said neither he nor the firm had "any knowledge of any payments to police officers for information." He added: "At no time, did RISC ever inform me who or what was the source/s they were paying."

Sam Ibrahim headed to jail

Former Sydney bikie boss Sam Ibrahim has been sent back to jail for allegedly breaching his parole. The 46-year-old was arrested yesterday at his home in Sydney's north-west at Bella Vista by a police strike force targeting the city's bikie gun war. The New South Wales Parole Authority revoked parole for the former Nomads boss after receiving a report from parole officers alleging he had been taking prohibited drugs and failing to obey directions. The arrest followed a police raid of his house last Friday, which was part of an operation targeting 18 homes and businesses linked to feuding Hells Angels and Nomads bikies. The house had been sprayed with bullets only a week earlier, in one of nine tit-for-tat shootings between the gangs in just over a week. Ibrahim is being held at Silverwater jail, ahead of a public hearing by the NSW Parole Board later this month. The board will decide whether to keep the former Nomads boss in prison until his sentence expires on October 7, or whether to extend his jail time. Ibrahim spent five months in jail as part of the 15-month sentence over the violent kidnapping of a 15-year-old boy in 2009. His arrest was part of a crackdown by the Gangs Squad's Strike Force Kinnara, which was set up to combat an escalation in bikie gun crime. The strike force also arrested convicted Sydney drug boss Bill Bayeh a fortnight ago for an alleged breach of parole.

Rupert Murdoch was branded “not a fit person” to run a major company

 Rupert Murdoch was branded “not a fit person” to run a major company in a bombshell report by MPs today. His son and business heir James was accused of “wilful ignorance” towards phone hacking, while Murdoch executives were accused of lying to cover it up. The verdicts leave the 81-year-old tycoon fighting to justify his leadership of a worldwide empire including the broadcaster BSkyB. He faces being dragged before Parliament to apologise. The force of the report was partly diminished by a row between members of the culture select committee. Four Conservatives voted against the final draft because they felt the attack on Rupert Murdoch’s fitness  to run a company was over the top. However, the final 100-page report backed by the Labour and Lib-Dem MPs on the committee amounted to one of the most scathing parliamentary verdicts on an international business. The MPs said Rebekah Brooks, former News of the World editor and chief executive of News International, “should accept responsibility” for the culture that led to Milly Dowler’s phone being hacked, along with hundreds of others. The report also found editors, lawyers, the police and prosecutors guilty of a catalogue of failings. Several former Murdoch lieutenants were singled out for misleading Parliament, including former News International executive chairman Les Hinton, former News Group  lawyer Tom Crone, and former News of the World editor Colin Myler. It criticised the Director of Public Prosecutions, Keir Starmer, and the former Metropolitan Police acting deputy commissioner John Yates, saying “they both bear culpability for failing to ensure that the evidence ... was properly investigated.” Rupert Murdoch was accused of “wilful blindness” about the mounting evidence of phone hacking. The verdict will add muscle to shareholders seeking to topple Mr Murdoch and to critics demanding that media regulator Ofcom strip him of his broadcasting licence. The report accused the Murdoch companies of trying to “buy the silence” of victims by awarding huge payouts to victims of hacking such as football players’ union boss Gordon Taylor. Verdicts on some figures who have been arrested by the police were held back in case they hampered fair trials. Among these was Andy Coulson, the former News of the World editor who was hired by David Cameron as his spin chief at No 10. The ferocious conclusion, which divided the committee in a series of votes on the final wording, was that Mr Murdoch was ultimately to blame and therefore not fit to hold his position. It said: “On the basis of the facts and evidence before the committee we conclude that, if at all relevant times Rupert Murdoch did not take steps to become fully informed about phone-hacking, he turned a blind eye and exhibited wilful blindness to what was going on in his companies and publications. “This culture, we consider, permeated from the top throughout the organisation and speaks volumes about the lack of effective corporate governance at News Corporation and News International. We conclude, therefore that Rupert Murdoch is not a fit person to exercise the stewardship of a major international company.” The committee branded it “simply astonishing” that Rupert and James said it was not until December 2010 that they realised that News International’s claim that hacking involved a single “rogue reporter” was untrue. It poured scorn on James Murdoch’s “lack of curiosity” that raised “questions of competence”. Mr Hinton was “complicit in the cover-up at News International” that included paying inflated compensation to victims. Mr Crone and Mr Myler misled the committee by answering questions “falsely”. The final devastating verdict on Mr Murdoch was a triumph for Labour MP Tom Watson who drafted the conclusions. But the 11-member committee divided along party lines, with the full denunciation being passed by the vote of a single Liberal Democrat member. Mr Watson said of Rupert Murdoch: “More than any individual alive, he is to blame. Morally, the deeds are his. He paid the piper and he called the tune.” Conservative MPs Louise Mensch and Philip Davies insisted the MPs had no right to make such a ruling and hit out at “partisan” voting by Labour members led by Mr Watson and Paul Farrelly. Mrs Mensch said Tory members could not back the declaration, describing it as “wildly outside the scope” of the committee and “improper attempt to influence” watchdog Ofcom.” Mr Davies said Mr Murdoch was “very clearly” a fit and proper person to run a major firm, pointing to the jobs he had created. He added: “Many people may conclude that some people’s conclusions were written before any of the evidence was heard, and that is very sad.” Mr Watson said he was disappointed there had been splits, but insisted Mr Murdoch must be held to account for crimes at News Corporation. Committee chair John Whittingdale said he did not vote on any of the amendments in the report, but hinted at his opinion on whether it should have branded Mr Murdoch unfit, saying: “I would merely observe that as well as being the chairman of the committee, I am a Conservative MP.” Lib-Dem member Adrian Sanders who was effectively left with the casting vote, sided with the Labour view. He said he would have faced accusations of party bias whichever way he had decided. After the report was published Mr Watson said he had “reason to believe” that even more the material in the form of hard drives was in the hands of the Serious Organised Crime Agency. He sought to extend the probe into new areas — including claims News Corp could be in contempt of Parliament over claims they sought to use private investigators to dig dirt on committee members. He also said politicians — including Tony Blair and Gordon Brown as well as David Cameron and George Osborne — should reveal their email and text message contacts with News Corp executives.

Armed raids in Middlesbrough as manhunt goes on

ARMED officers searched properties across Middlesbrough as the bid to track down suspected double murderer James Allen intensified. With no confirmed sightings of him since Monday afternoon, officers raided his home address in Lothian Road, as well as a home in Delarden Road in a bid to flush out the man suspected of battering to death Colin Dunford and Julie Davison. Yesterday, it emerged that Allen lived next door to 81- year-old Mr Dunford’s Leven Street home last year. The pensioner was found dead at this home at 10.50pm on Monday. A post-mortem examination revealed he suffered serious head injuries as a result of a significant assault.

Lock your doors alert as Whitby double murder suspect spotted on run

Detectives hunting double murder suspect James Allen have urged Yorkshire residents to lock their doors and windows after reported sightings of him on the East Coast raised fears the killer could strike again. Allen, a 35-year-old drug user with previous convictions for violence, is believed to have killed his former next-door neighbour in Middlesbrough and murdered a Whitby housewife while on bail for other offences. Police called on him to hand himself in yesterday as they revealed sightings of the suspect had been reported in Whitby, Scarborough and Middlesbrough. More than 100 officers from the Cleveland and North Yorkshire forces are investigating the murders of Colin Dunford, 81, and Julie Davison, 50. Both victims suffered head injuries. The detective leading the inquiry, Temporary Detective Chief Superintendent Gordon Lang of Cleveland Police, said it was a “24/7 operation” that would not stop until Allen is found.

police hunt for Michael Brown's missing millions

British police are still trying to trace £18m allegedly stolen by the Liberal Democrats' fugitive donor Michael Brown, who is expected to be extradited to Britain within the next 10 days. Brown, 46, was in a holding cell near Madrid airport on Sunday, having been deported from the Dominican Republic, where he had been on the run from UK authorities for three years. Brown, who gave £2.4m to the Liberal Democrats before the 2005 general election, is not expected to challenge a formal move to extradite him to London which has already been set in motion. He was convicted of theft and false accounting in his absence in Britain in 2008 and sentenced to seven years in jail. Detectives are still trying to trace around £18m of Brown's stolen money, which had been moved between his accounts in the US, Britain and Switzerland, the Guardian understands. Brown was estimated to have stolen more than £60m in a number of frauds. Most of his assets have been accounted for in property deals, a Bentley, a yacht and the private jet once used to fly senior Lib Dems across the UK. However, more than £18m has not yet been accounted for. "The file at Interpol on Brown and his associates remains open," a source told the Guardian. Brown's return will be another embarrassing development in the long-running saga over the Lib Dems' biggest single donation. The party has refused to compensate any of Brown's victims, claiming it received the money in good faith and spent it on the 2005 election campaign. Lib Dem leader Nick Clegg welcomed Brown's return to Britain but said on Sunday that the party would not be returning his donation because the Electoral Commission had concluded the money had been received in good faith. The deputy prime minister, who pointed out that the donation was made before he was elected to Westminster, told BBC1's Sunday Politics: "I'm very pleased he's coming back to serve his sentence. This is a convicted fraudster. "I should stress that this is something which happened as far as the Liberal Democrats are concerned before I was even an MP, yet alone leader of the Liberal Democrats. What I've been told is that the Electoral Commission in 2009 looked at this exhaustively – as far as the receipt of that money by the Liberal Democrats from one of his companies. They categorically concluded that the money was received in good faith and all the controls, all the checks that should have been made were reasonably made by the Liberal Democrats at the time. If we'd been shown wanting on those accounts then of course we should pay the money back." But Brown's return will increase focus on the Electoral Commission inquiry into Brown's donations. The inquiry failed to call the Lib Dems' former treasurer, Reg Clark, who resigned over Brown in 2005 and warned advisers to the former Lib Dem leader Charles Kennedy that Brown should be treated with extreme caution. One of Brown's victims said the Lib Dems should return the money. Tony Brown, managing partner at law firm Bivonas which represents US attorney Robert Mann who lost more than $5m (£3m), said Brown may be asked to give evidence as part of his client's claim against the Lib Dems. "The Lib Dems have refused to repay this money to our client even though they know that this is the proceeds of crime. The Electoral Commission has failed to investigate this properly in our view. So now that Brown is returning to the jurisdiction, we can investigate again and establish the basis on which the Lib Dems received this money." Brown is expected to appear before a Spanish court to confirm his name and will then appear before an extradition hearing within 10 days. City of London police, who first uncovered Brown's fraud, confirmed his deportation. Detective Superintendent Bob Wishart said: "We hope that him facing justice will bring some closure to the victims who suffered as a result of his frauds." A close friend of Brown's told the Guardian on Sunday that he had arrived in Spain on Saturday after "volunteering" for deportation from the Dominican Republic, where he has been hiding for three years under the name of Darren Nally. "He asked to return to Britain. He is going home to face the music," the friend said. Brown appeared to come from nowhere when the party was paid £2.4m in the runup to the 2005 election from his company 5th Avenue Partners. A fast-talking and brash Glaswegian, he had walked into the party's then headquarters in Cowley Street and offered it money. He was not registered to vote, had no interest in politics and had never been a party member, but said he was giving the money to create an even playing field. Brown wined and dined with Charles Kennedy and other party grandees, and used his private jet to fly Kennedy across the country during the election campaign. Former Lib Dem insiders say he dazzled them with stories of Gordonstoun public school, St Andrews University and his connections with royalty and the US government. The truth was that he had attended his local school and completed a City and Guilds in catering at Glasgow College of Food Technology. He had no US government links – although he was wanted in Florida for cheque fraud. He was arrested in late 2005 after four former clients said he had duped them out of more than £40m in a high-yield fraud. His victims included Martin Edwards, the former Manchester United chairman, who had invested £8m with 5th Avenue Partners. The court would later be told that 5th Avenue Partners was wholly fraudulent and Brown had given money to the Lib Dems to give himself an air of respectability while duping his victims. The party had been used as part of his cover story, a judge said. In June 2008, while awaiting trial, Brown fled and a warrant was issued for his arrest. In the weeks before he disappeared, from his Hampstead bail address in north London, he changed his name on the electoral roll to Campbell-Brown and allowed his hair to turn grey. He travelled to the Dominican Republic where he enjoyed a millionaire's lifestyle while on the run. He lived in gated communities yards from some of the most pristine beaches in the Caribbean, drove a series of 4x4 vehicles and was a regular at exclusive golf courses. In Punta Cana, an exclusive resort on the eastern tip of the island, he could often be seen walking his dog – named Charles, after the former Lib Dem leader. He was arrested in Punta Cana in January on unrelated fraud allegations.

Donaldson enjoyed a lavish lifestyle in Marbella and Tenerife, trafficking accused found hiding in loft with £70k in cash

 A SUSPECTED drug trafficker was found by police hiding in a farmhouse loft in Scotland with a bag stuffed with £70,000, a Spanish court was told last week. Ian Donaldson, 32, is accused of helping fund an international drugs ring smuggling cocaine and speed from Spain to Scotland The former amateur racing driver – who drove a Lamborghini with the distinctive Lambo 88 plate – was tracked down to the farm by officers from the Scottish Crime and Drugs Enforcement Agency. Donaldson – who enjoyed a lavish lifestyle in Marbella and Tenerife– is one of six Brits facing court in Madrid accused of making millions from the drugs trade. Detective Inspector James Wallace of the SCDEA told the court: “I arrested him on February 27, 2009. He was hiding in a loft area in a farm building. We also found £70,000 hidden in a bag.” Eight SCDEA detectives gave evidence to the National Court in the Spanish capital last week via a video link from Edinburgh. The court heard Scottish police mounted a surveillance operation after Donaldson, from Renton, Dunbartonshire, was released on bail. Detectives watched him in a series of meetings in Glasgow and Hamilton in April 2009, as he tried to hide the origins of his fortune, prosecutors allege. Donaldson met with fellow accused Mary Hendry and Joseph Campbell and was observed discussing large sums of money and swapping paperwork for a nightclub in Gran Canaria. It was alleged they were secretly plotting to make it look like Donaldson had made some of his wealth from the club. Meetings took place at supermarkets in Glasgow and Hamilton and the Mitchell Library in Glasgow. DI Wallace told the court: “We saw he (Donaldson) was creating a defence for the Spanish charges. “I believe they (Hendry and Campbell) were both subservient to Donaldson, who instructed them on what to do.” The detective said Donaldson and his company IRD Services were also investigated for money- laundering in Scotland. He added: “There is evidence he purchased seven vehicles in Scotland, worth up to £900,000, between 2006 and 2008.” Mary Hendry told the court she only met Donaldson twice for legitimate business meetings. She said: “Joseph Campbell introduced me to Ian Donaldson because I was trying to sell my restaurant. “I met him the next day and he said he was not interested. I never saw him again.” It is alleged Donaldson was the money man for a gang of drug smugglers based in Tenerife and Marbella, led by Glaswegian Ronald O’Dea, 45. The gang are alleged to have spent millions on luxury villas, fast cars and yachts. In October 2008, police seized a a haul of amphetamines worth £660,000 heading to Scotland after stopping a lorry in Oxfordshire. Donaldson, Hendry and O’Dea share the dock in Madrid with fellow Scot James MacDonald, 62, and Londoners Steve Brown, 45, and Deborah Learmouth, 49. The gang face charges ranging from drug-trafficking to money-laundering. They deny all charges. Two other defendants – Brian Rawlings and Joseph Campbell – failed to show up at the trial. The judges will give their verdict at a later date.

Wayne Rooney launches phone-hacking claim

Wayne Rooney and England rugby union World Cup winner Matt Dawson are among the new wave of high-profile figures suing Rupert Murdoch's News International over alleged News of the World phone hacking. The England and Manchester United football star, his agent Paul Stretford, Dawson, now a BBC rugby commentator and Question of Sport team captain, actor James Nesbitt and Sir John Major's former daughter-in-law, Emma Noble, are among 46 new phone-hacking cases filed at the high court in London. Times Newspapers, the News International subsidiary that publishes the Times and Sunday Times, is also facing its first civil damages claim, from Northern Ireland human rights campaigner Jane Winter, who is also suing NoW publisher, News Group Newspapers. Winter's claim is related to an article in the Sunday Times in August 2006, her solicitor confirmed. A reference to the article was made in a witness statement she submitted to the Leveson inquiry in February. Winter alleged in evidence to the inquiry that her emails to the former British army intelligence officer Ian Hurst were hacked by NoW. A News International spokeswoman said Winter's case would be "defended vigorously". Others who have filed claims in the past few days seeking damages for alleged invasion of privacy from News Group, the News International subsidiary that published the now-closed Sunday tabloid, include former Conservative cabinet minister and chief whip Lord Blencathra and former Fire Brigades Union general secretary Andy Gilchrist. The list of new claimants also features Michelle Bayford, the former girlfriend of the victim of the 2006 so-called "elephant man" drug trial case. Her then boyfriend, Ryan Wilson, spent three weeks in a coma and lost all his toes and parts of his fingers to gangrene. Another claimant, Anne Colvin, was a witness in the Tommy Sheridan perjury trial. At a case management conference at the high court in London , Hugh Tomlinson QC, representing victims of alleged phone hacking, told Mr Justice Vos that he had 44 new cases filed while two others had submitted their claims via another legal representative. The court also heard that law firm Harbottle & Lewis has a number of "sensitive clients" who wish to remain anonymous. It is expected that up to 200 new claims will be filed over the coming months, Tomlinson told the court in a previous hearing. Claims filed in the past week bring the number of new cases against News International to 46. This figure includes earlier claims filed by public figures including Cherie Booth, Alex Best, the former wife of the late footballer George Best, and Colin Stagg, the man wrongly accused of murdering Rachel Nickell. Others who have filed claims include comedian Bobby Davro, actor Tina Hobley's former husband Steve Wallington, TV personalities Jamie Theakston and Jeff Brazier, the former boxer Chris Eubank, and footballers Peter Crouch, Kieron Dyer and Jermaine Jenas. The cases are part of a second wave of civil actions which Vos is managing following the settlement of more than 50 cases earlier this year including claims by Jude Law, Charlotte Church and Lord Prescott. Tomlinson did not disclose the names of the claimants on Friday, but court documents show that new cases submitted to the high court in the past week bring the number of new actions faced by News International to nearly 50, a number that is expected to rise considerably. Tomlinson told the court that News International had received 100 requests for discovery of preliminary disclosure. He said there were 4,791 potential phone-hacking victims, of which 1,892 had been contacted by the police. The police believed 1,174 were "likely victims". Court 30 in the Rolls Building of the high court was packed, with more than 50 law firms acting for victims. Vos said there were 58 firms of solicitors representing only 100 victims, which he told Tomlinson was "unbelievable". The judge added that he wanted to ensure costs are reduced for claimants. "Many of them have seen the light and have instructed lawyers who have specialist knowledge of this case," said Vos. He suggested possible tariffs of costs for each element of the legal action. This would mean fresh claimants could access to information relating to the News of the World's phone-hacking activity already produced on discovery in earlier cases, without incurring the costs associated with a full action. "I will have no sympathy for outrageous cost estimates," he said. "A claimant is entitled to have a solicitor, but what he is not entitled to have is a solicitor who knows nothing about the case and charges the defendant for that."

British police arrested three people, including the royal editor of Rupert Murdoch's Sun tabloid

British police arrested three people, including the royal editor of Rupert Murdoch's Sun tabloid, a source familiar with the situation said, in an escalation of a long-running phone hacking scandal which reaches into Britain's political establishment.

Thursday's arrests and the fact they stemmed from information given to the police by Murdoch's company itself is likely to reignite tensions within the media group, just days before parliament gives its verdict on how the culture of illegality came about.

Next week Rupert Murdoch and son James will also appear before a judicial inquiry to answer questions over the conduct of the press, which will focus on the close ties between Murdoch, his executives and the political establishment.

James Murdoch will appear in court room 73 at the Royal Courts of Justice on Tuesday while lawyers at the inquiry have cleared a day and a half to grill the 81-year-old Rupert on Wednesday and Thursday.

"This was always going to be an important six weeks in this affair, with the Murdochs and politicians going before the Leveson judicial inquiry, but it will be exacerbated by the arrests and the imminent committee report," said Steven Barnett, communications professor at the University of Westminster.

Police made the arrests one day after prosecutors confirmed they had started to examine the police case against four journalists and seven others to establish whether they should be charged with a range of offences including perverting the course of justice.

Press reports have speculated that one of those named in the files is Rebekah Brooks, a former editor of the News of the World and Sun tabloids and a close friend of both Murdochs and Prime Minister David Cameron.

Brooks has been arrested twice, once for corruption and intercepting communications, and more recently for perverting the course of justice, along with her husband, Charlie Brooks.

The three arrested on Thursday were detained at dawn and questioned over inappropriate payments made to police and public officials.

The source familiar with the situation said one of those was Duncan Larcombe, royal editor and a former defence correspondent at the Sun, Britain's biggest selling daily newspaper.

A spokeswoman for Murdoch's British newspaper arm News International confirmed that one of those arrested was a Sun journalist but declined to give further details.

Larcombe was previously a defence correspondent at the Sun and another person arrested on Thursday was described by police as a 42-year-old former member of the armed forces. A woman aged 38 has also been arrested on suspicion of aiding and abetting misconduct in a public office.

ROUTINE HACKING

Murdoch's British newspaper arm has been rocked in the last year by allegations that journalists at the Sun's sister title, the News of the World, had routinely hacked into phones to generate salacious front-page stories.

The police investigation, which forced the closure of the 168-year-old News of the World, has since moved on to the Sun newspaper and whether its journalists paid police and public officials for stories.

While damaging the reputation of Murdoch, the intense spotlight has also revealed the extremely close links he and his executives have with politicians and senior police officers, embarrassing many with tales of horse rides and Christmas drinks between the upper echelons of Murdoch executives and politicians.

Police said the latest arrests were prompted by information provided by the Management and Standards Committee, a small team set up by Murdoch's News Corp to co-operate closely with the police in a move that has infuriated newspaper staff.

The 81-year-old Murdoch was forced to travel to London in February to reassure journalists of his commitment to the Sun after a string of earlier arrests caused a showdown at the paper by staff who felt they had been abandoned by their management.

Since then, the Sun has launched a Sunday version and both the Sun and Murdoch's Times newspaper have noticeably hardened their position towards the government, which turned on Murdoch at the height of the hacking scandal last year.

That antagonism is likely to be exacerbated in the coming weeks when the parliamentary select committee, which summoned James and Rupert Murdoch at the height of the scandal last year, publishes its findings.

The committee investigated allegations of phone hacking after they first surfaced in 2006 and it has since looked at whether it was misled in its initial inquiry by a host of News International executives who pleaded innocence.

Paul Farrelly, a leading member of the committee, told Reuters they hoped to publish the long-awaited report by May 1.

Tom Watson, a member of the committee who has campaigned against Murdoch, told reporters he thought News Corp had become a toxic institution which operated like a shadow state

Alaska coast guards found dead at Kodiak Island

 

Two members of the US Coast Guard in Alaska have been found dead, prompting concerns that a killer could have struck at a remote island outpost. A captain at the Kodiak Island Station said they were unsure what happened and a suspect could still be at large. The base and schools in the area were put on lockdown and residents of the island were told to remain vigilant. The names of the victims will be released after their families have been notified, the coast guard said. "It is possible that the suspect remains at large," Commanding Officer Captain Jesse Moore said. "Since we don't have all the details, we strongly advise all Kodiak residents to remain vigilant and to report any suspicious activity to local law enforcement officials." The captain also said the unit was "deeply saddened" to have lost two shipmates. Officials were unable to determine whether the deaths were a double murder or a murder-suicide. "This is a rare occurrence and we are going to do everything possible to ensure we find out exactly what happened," he said. Agents from the FBI have been sent to Kodiak from the town of Anchorage, about 250 miles (402km) away. Kodiak has a population of about 6,300 people.

An Albanian fugitive accused of multiple murders in his home country has been arrested in north London after 15 years on the run.

Ndrieim Sadushi, 41, was last night picked up on an international warrant by police outside his home in Southgate.

An Albanian court found him guilty in his absence of three killings and an attempted murder in the eastern European country in 1997.

At an extradition hearing in Westminster Magistrates' Court today, Sadushi claimed he had been the victim of mistaken identity and was in fact 31-year-old Arjan Kasa.

 

But district Judge Michael Snow ruled police had got the right man after being told his fingerprints matched those of the convicted killer.

Sadushi, who is said to have used at least six aliases while evading the authorities, will face a life sentence if he is sent back to his homeland.

 His barrister Richard Hallam stands by the claim that his client is Arjan Kasa.

Prosecutor James Stansfeld said that, in addition to being wanted by the Albanian police, authorities in Italy accuse Sadushi of drug trafficking, passport fraud and controlling prostitutes.

Italian courts sentenced him to 13 years and four months in his absence.

He has been linked to the notorious Kadeshi armed gang, of which all the other leaders have been arrested.

Sadushi is due to appear before Westminster Magistrates' Court today

Hannah Pye, representing the Albanian authorities, said: 'The request for extradition comes from Albania, after he was handed a custodial sentence, following a conviction for five offences.'

‘Those were, the creation and participation in an armed gang, three counts of murder and one attempted murder.

‘For that he was sentenced to life imprisonment, and an appeal against the sentence was upheld by the Albanian appeal court in 2000.’

Officers from the Metropolitan Police’s extradition unit arrested Sadushi outside a property in High Road, Southgate.

The UK Border Agency holds no record of him claiming asylum and he is thought to have entered Britain on the back of a truck in 2000. 

Last year he was one of 14 suspects to have their mugshots released as part of Operation Sunfire, a coordinated effort to bring some of the UK's most wanted fugitives before extradition courts.

Twelve of the suspected murderers, rapists and robbers pictured were from eastern Europe, while the other two were wanted in connection with crimes in Italy and Australia.

Sadushi will return to court on April 25.

cops are to quiz hookers in the notorious red-light area in a bid to identify a victim.

Text may be subject to copyright.This blog does not claim copyright to any such text. Copyright remains with the original copyright holder.

But they admit their inquiries are being hampered because the body was so badly burned.

Doctors are also having to carry out tests to find out if the victim was a man or a woman.

Police plan to question residents on a housing estate near the Carlton Commerce Centre in Southampton to discover whether the victim was killed at the scene or whether the dead body was taken there.

Detective Inspector Simon Baker said: “Firemen were dealing with a bin fire on the industrial estate when they discovered the body.

“Our officers are now pursuing many lines of inquiry.

New info about statin safety affects millions

U.S. Food and Drug Administration issued new safety information about these cholesterol-lowering drugs that are prescribed to millions of Americans to lower the risk of heart disease. If you're among them, you should understand what the FDA's new guidance means for your health. "Before anyone gets too concerned, you should know that statins are so widely used because they have a long track record of safety and effectiveness," says Dr. Mark Taber, a cardiologist with SSM Heart Institute at St. Joseph Health Center. "All in all, statins have a very high benefit to risk ratio. The widespread use of the drugs, when indicated, probably accounts to a significant degree for the improvement in life expectancy in this country." The FDA called attention to the threat of liver damage as a rare side effect of statins and advised that regular liver enzyme testing is no longer considered useful in predicting or preventing liver injury. "Actually, in general they liberalized the follow up needed for liver function tests on patients taking statins, due to the very low incidence of true liver issues," Taber says. The main warnings related to a slightly higher incidence of developing diabetes while on statins, and a poorly substantiated claim that statins could result in cognitive impairment. Taber points out that cognitive problems, such as confusion or memory problems, were not documented in clinical studies, only by patient reports to the FDA website. "By stating these concerns, the FDA is raising awareness about the potential side effects of statins, but cardiologists already know that there are inherent risks, and we monitor patients appropriately to help ensure that side effects do not occur or are dealt with quickly," Taber notes. "If there is any evidence of a side effect that could be problematic, we can change the medication. But the fact remains that it's important to decrease risk of heart disease, and for many people statins are needed when diet and exercise alone don't result in acceptable cholesterol levels." Whenever a new prescription medication is started, you should look over the package insert to learn about potential side effects. Signs of liver damage, for instance, include fatigue, loss of appetite, right upper abdominal pain, dark urine and jaundice. Any of these symptoms should be reported to your doctor for evaluation. It is important to remember that you should not stop taking a medication without consulting your doctor first. Discontinuing use of a prescribed drug can be far more dangerous than the side effect you're worried about. "All the side effects listed by the FDA are rare, and the risk of heart attack is far more concerning," Taber says. "Some patients may need extra monitoring or may need to try more than one statin before we find the optimal choice, but in general statins are very well tolerated and don't cause problems for the people who take them." The advice above is universal when it comes to your health. Concerns should be discussed with your doctor, and decisions should always be made as part of a team approach to creating a healthy life.

Why don't GPS warn you that statins can harm your memory?

John Holliday had been on a higher 40mg dose of cholesterol pills for only a few weeks when he started to lose his concentration. ‘I’d be watching TV and suddenly find myself unable to follow the plot of a drama,’ says John, 52, a telecoms project manager who lives in Southend-on-Sea, Essex, with his wife Jill, 51, and their two children Adam, 20, and Emma, 16. ‘I’d have to read the same page of a book over and over because I couldn’t take any information in. ‘I’d always been known for my amazing memory — I was great on trivia and had total recall of events that happened 20 years ago, but suddenly I couldn’t remember things and my brain felt fuzzy.’ Just like up to seven million other people in Britain, John had been prescribed a statin to lower his blood cholesterol levels. The drugs are credited by the British Heart Foundation as contributing towards the dramatic 50 per cent fall in deaths from heart attacks in the past ten years. But while there is consensus that statins are lifesavers for people who have previously had a heart attack, concern is growing over their debilitating side-effects. They include muscle weakness, depression, sleep disturbance, sexual dysfunction, muscle pain and damage, gastro-intestinal problems, headaches, joint pains and nausea. Now, official bodies here and in the U.S. have ordered that the drugs must carry warnings for cognitive problems, too. Worryingly, it’s claimed GPs are failing to warn patients of the effect statins can have on the mind — meaning they may mistake them for signs of ageing or Alzheimer’s. ‘When I went back to my doctor after six weeks for a blood test, I told him how dreadful I was feeling,’ says John. ‘But he just said all drugs had side-effects and didn’t mention reducing the dose.’ It's claimed GPs are failing to warn patients of the effect statins can have on the mind - meaning they may mistake them for signs of ageing or Alzheimer's Things came to a head when a friend showed John an electrical circuit he’d built for his car. ‘I’d worked with circuits since I was 16 but it made no sense,’ he says. So John insisted on seeing his doctor again and repeated his concerns about his rapidly declining memory. This time the GP told him he could start on another type of statin when he felt well enough, and so John stopped taking the drugs immediately. ‘It took a few months, but gradually my memory returned and I’ve got my concentration back. I can’t say for sure statins caused these problems, but it seems like too much of a coincidence.’ Earlier this year, the Food and Drug Administration (FDA) in the U.S. ordered statins must carry warnings that some users have reported cognitive problems including memory loss, forgetfulness and confusion. This followed a decision by the UK’s Medicines Healthcare Regulatory Agency (MHRA) to add memory problems to the list of  possible statin side-effects in late 2009. The FDA said reports about the symptoms were from across all statin products and age groups. Those affected reported feeling fuzzy or unfocused in their thought process — though these were found to be rare and reversible. The FDA also warned, following U.S. research, that patients on statins had a small excess risk of developing Type 2 diabetes — but stressed that the benefits of taking a statin still outweigh this. The MHRA had 2,675 reports for adverse drug reactions connected with statins between 2007 and 2011. Officially, side-effects are rare —affecting only 1 per cent of people on the pills — but some doctors say they are under-reported. Dr Malcolm Kendrick, a GP and author of The Great Cholesterol Con, says he frequently sees patients suffering from mental confusion in his job in hospital intermediary care for the elderly. ‘Many of the patients I see will have been admitted to hospital after a fall or similar crisis,’ he says. ‘If they appear confused I’ll often advise taking them off statins to see if it has any effect — in my experience, about 10 to 15 per cent of people who appeared to have memory problems experienced an improvement in their memory symptoms after being taken off the drug. ‘I had one dramatic case where a lady was admitted to hospital on 40mg a day of simvastatin with such poor memory function her family asked me about power of attorney. 'I suggested taking her off statins and within a week her memory had returned to normal. She went home a fit and independent 83-year-old.’ Dr Kendrick says cholesterol is the main constituent of synapses (structures that allow signals to pass between brain cells and to create new memories) and is essential for brain function. ‘It is still not proven that statins have a significant effect on mortality — it has been calculated that a man who has had a heart attack who took a statin for five years would extend his life by only 14 days. 'Too many statins are being given to people at low risk. ‘Even in the highest risk group you need to treat 200 people a year with statins to delay just one death. 'One day the harm these drugs are doing is going to be obvious — the benefits are being over-hyped and the risks swept under the carpet.’ While Dr Kendrick’s controversial view is in the minority, one large review of 14 studies by the London School of Hygiene and Tropical Medicine, published by the highly respected Cochrane Library last year, concluded there was ‘little evidence’ cholesterol-lowering drugs protect people who are not at risk of heart disease. This review has been criticised by other doctors who say side-effects are rare and that there are still benefits even for people at lower risk who do not have established heart disease. These defenders of statins include Professor Colin Baigent of the Clinical Trial Service at Oxford University, who published research in 2010 showing statins reduced deaths from all causes by 10 per cent over five years. ‘There is relatively little evidence of cognitive impairment — what evidence there is all comes from observational studies.  ‘People read about side-effects and then put two and two together and blame the statins for their muscle pain or other health problems — it’s just not reliable evidence. ‘If you look at the best-quality randomised controlled trial where patients don’t know if they are taking a statin or placebo, there is no evidence of memory problems. 'Even the FDA says the risks of cognitive problems are very small and go away when statins are discontinued. ‘We’re in danger of forgetting just how effective these drugs are.’ Dr Dermot Neely of the charity Heart UK, and lead consultant at the Lipid and Metabolic Clinic at the Royal Victoria Infirmary in Newcastle, agrees side-effects with statins are rare. ‘I’ve been dealing with patients on statins since 1987 and I can count on the fingers of one hand the number whose memory symptoms turned out to be caused by statins.’ However, he said he often saw patients who had not been told about side-effects. ‘It’s important GPs are clear about the drugs statins can interact with, such as certain antibiotics, as this can get overlooked. ‘If a patient notices an adverse effect after starting statins, they should discuss this with their GP —but not stop their drugs suddenly because this can be dangerous.’ Sonya Porter, 73, decided to stop taking statins after her memory problems became so bad that she walked away from a cashpoint leaving her money behind. ‘I was permanently fuzzy-headed and just couldn’t seem to concentrate,’ says Sonya, a retired PA from Woking, Surrey. Then I started to get scared I might have Alzheimer’s. After reading about memory problems associated with statins, I thought it was at least a possibility. I decided to come off the pills to see if it made any difference. ‘I didn’t ask my GP, I just did it — I’d rather die of a heart attack than Alzheimer’s disease. Within a month I felt normal again and didn’t have any problems with memory. ‘I’m terrified that I could have been misdiagnosed with Alzheimer’s.’ John Holliday is also reluctant to go back on statins. ‘I wouldn’t rule it out completely — my latest test showed my cholesterol levels have gone up,’ he says. ‘But on balance, I’d rather take my chances with heart disease than feel as confused as that again. It’s all very well living slightly longer — but it’s about quality of life, too.’

James Murdoch to resign as BSkyB chairman

James Murdoch is to step down as chairman of UK satellite broadcaster BSkyB, but will remain on the board. He is the son of News Corporation founder Rupert, whose company had to drop its bid for BSkyB after the phone-hacking scandal. In February, James Murdoch stepped down as chairman of News International, which publishes the Sun and the Times in the UK. He said then he had moved to New York to work on News Corp's pay-TV business. News Corp owns almost 40% of BSkyB and had wanted to buy the whole of the firm. But it withdrew its bid as political pressure mounted due to allegations of improper conduct at News International's News of the World Sunday title, which was shut down last July. Sources told Robert Peston, the BBC's business editor, that it was James Murdoch's decision to leave and he did so in an attempt to pre-empt further criticism as investigations continue into phone hacking. James Murdoch has repeatedly denied knowing about phone hacking at the News of the World. Nicholas Ferguson will take over as chairman.

Trio jailed for businessman murder

Three men who carried out the "pre-meditated brutal" murder of a businessman were jailed for life today. Mohammed Nadeen Siddique, 38, known as Toby, was shot dead in a flat in Forres Drive, Glenrothes, Fife on October 24 2010 His brother "Mo", 42-year-old Mohammed Azam Siddique, who hired the hitman and the "driving force" behind the murder, was jailed for at least 25 years. Tencho Andonov, 28, the Bulgarian gunman who pulled the trigger, was told he would spend a minimum of 29 years behind bars. Andonov had also been convicted of attempting to murder another man. The third man, Bulgarian Deyan Nikolov, 27, described in court as the conduit between his two co-accused, was ordered to serve at least 18 years in prison. The men were sentenced at the High Court in Edinburgh where they were convicted last month after a long-running trial which began in October. Judge Lord Kinclaven told them: "You have each been convicted by verdict of the jury of the most serious of crimes." He added: "This was a pre-meditated brutal murder. This was a pre-planned killing with a firearm." The brothers were partners in a family business but had fallen out. The court heard today that Toby Siddique was "callously and repeatedly" shot in the head. The three men, all first offenders, were convicted of murder by a jury last month. Andonov was also found guilty of the attempted murder of David Dalgleish in the same incident. He too was shot in the head. The trial which resulted in the convictions was one of the longest murder cases in recent Scottish legal history. Prosecutors described the killing as a "despicable crime" which was "motivated by greed". Passing sentence, Lord Kinclaven said: "You have each been convicted by verdict of the jury of the most serious of crimes, that is the crime of murder." He told Siddique: "This was a premeditated brutal murder and the jury found that you were the driving force behind the killing. It was a pre-planned killing with a firearm. The victim was your brother, Toby Siddique, who was aged 38 when he was repeatedly shot in the head. "This was a tragedy and continues to be a tragedy for all those who knew Toby Siddique, including the other members of your own family." Addressing gunman Andonov, the judge said: "You callously and repeatedly shot Toby Siddique in the head in the manner described in evidence." He said the evidence pointed to Andonov having carried out the killing for financial gain. Lord Kinclaven told Nikolov the jury found he was the "link or conduit" between Siddique and Andonov. The investigation into the attack was the largest and most complex in Fife Police's 62-year history. At one stage, 80 officers were involved in the investigation, which is now said to have cost the force £1.5 million.

An unseen gangwar is raging on inner-city streets

What kind of a world do we live in when an innocent little girl of five is gunned down as she plays in the aisle of a corner shop?” the Mirror’s front page asked yesterday. The chilling answer is this: it’s a world that is everyday reality for thousands of young adults in London. Barely visible to ordinary Londoners except when shots ring out or police tape bars the pavement, there is a war raging on the streets of the capital. Police statistics say there are 250 active criminal gangs in the city involving about 4,800 people mostly aged between 18 and 24. And street gangs are believed to be responsible for around 50% of shootings in the capital. Had Nathaniel Grant, Kazeem Kolawole and Anthony McCalla hit the targets they intended – rival gang-members Roshaun Bryan and Christopher Munsaka – the incident would have gone largely unreported. More black on black gun crime. It takes an incident like this to give it mainstream attention. Little Thusha Kamaleswaran was caught in the crossfire of a street feud between the GAS gang and ABM. Guns and Shanks (Knives) and All ’Bout Money are just two of the groups that prompted the launch this year of Operation Trident’s taskforce which has dedicated 1,000 officers to preventing and investigating gang-related gun crime. The shocking CCTV footage bravely released by Thusha’s family is a rare window into a hidden world. Its most chilling insight is the casual nature of the shootings – the way indiscriminate shots were fired. It shows how the shooters barely care who lives or dies. Scene: The shop where Thusha was shot PA I have interviewed many gang members in different cities and in different post codes of the capital, and the casual nature of violence is a recurrent theme. Camila Batmanghelidjh’s Kids Company is among those doing important work to show how many young people caught up in gangs have got to be in such a cut-off state. Many have suffered such a lack of care as the children of older gang members or drug addicts, they are damaged for life. Young gang members have told me they felt little choice about joining. Even the use of “gang” is to glamorise the reality that most are loose associations of friends and family. Members become defined by affiliations over which they have little choice: they are someone’s cousin or friend or live on their block. They fear bullying on the street and social media. They fear being the ones attacked. In the middle of one interview with a member of a violent girl gang, her mother came in to the cafe and punched her in the face. None of this in any way excuses what happened in Stockwell in March last year. A little girl who once dreamed of dancing is paralysed and now needs round-the-clock care. I used to live a stone’s throw from where Thusha was shot. Stockwell Food and Wine was where I used to buy newspapers every morning. I know the damage that has been done not just to a little girl and her family, but to a whole community.  But in London areas like Stockwell and Brixton that community also includes the young people being drawn every day into gangs.

Russian banker shot six times had testified over murder plot

The banker was left for dead by a lone gunman as he returned to his home in Canary Wharf on Tuesday evening. Scotland Yard detectives are investigating the attempted assassination, which Mr Gorbuntsov’s lawyer believes was a retaliation attack after the banker gave evidence in a 2009 attempted murder case. Mr Gorbuntsov, who fled to London because of his fear of reprisals, had recently submitted new evidence to Russian police about the attempted murder of Alexander Antonov, another Russian banker. The case was closed three years ago when three Chechen men were jailed for attempted murder. But police have never discovered who organised the attempted hit. Officers re-opened the case on March 2 this year after Mr Gorbuntsov submitted his new testimony.

Brian Regan: Brookside star to cocaine addict

 

Brian Regan found fame playing loveable rogue Terry Sullivan in the Liverpool soap opera Brookside. In the show's 1980s heyday, his character's antics were regularly watched by up to seven million viewers a week. But when Regan left the soap in 1997, his acting career petered out and he plunged into a life of drug dealing and addiction. Now he is behind bars, serving a five-year jail sentence for lying to police over his role in the murder of Iranian doorman Bahman Faraji and selling drugs. Regan's jail sentence can now be reported following the conviction of Jason Gabbana, 29, for ordering Faraji's murder. Details emerged in court of the actor's descent into drugs and supplying members of Liverpool's criminal underworld. During the trial, Regan told Liverpool Crown Court how he started taking cocaine at weekends at the end of his Brookside career. It was through his use of cocaine he became involved with Edward Heffey, convicted of murdering Mr Faraji with a sawn-off shotgun in a quiet Liverpool street. Simon O'Brien, who played Damon Grant in Brookside, said Regan's involvement with drugs was a "slow burn". Snorting cocaine "It is a very difficult place when you're acting, particularly on something as high-profile as a soap, because fame and infamy attract each other," he said. "Actors and gangsters, for some reason, almost get off on each other. It's a really strange mutual attraction because I think the hard man gives the actor a kind of security out in public and the actor gives the gangster kudos. "The two worlds often get intertwined and when that happens, inevitably drugs become involved. So it was kind of a slow thing from what I remember, it was a slow burn." Regan was charged with Mr Faraji's murder and was cleared - but he was convicted of giving a false alibi to police about where he was on the night in February 2011. Actor and presenter Simon O'Brien said actors and gangsters get off on each other" During the trial, he told Liverpool Crown Court he supplied Heffey with cocaine "about three or four times a day". When Heffey asked him for a lift on the night of the killing, he said he thought he was taking him to collect a debt so he could pay for the drugs. In fact, once they arrived in Aigburth in Regan's Ford Escort, Heffey got out, walked round the corner and shot Mr Faraji in the face with a sawn-off shotgun. Regan told the court he knew nothing about the incident - because he was waiting in the car, snorting a line of cocaine. He said he then "drove away normally" from the scene and took Heffey home. Regan was cleared of murder at his trial which ended in January. 'Lose control' However, when he was first interviewed by police he lied about driving Heffey to the pub, but CCTV evidence put him at the scene and he was found guilty of perverting the course of justice. Mr O'Brien, 46, who was friends with Regan in their Brookside days, said getting involved in drugs was a tragedy that is "not uncommon" in the entertainment industry. "Brian is just one example of what happens when you're in the limelight and everything is flying and you lose control," he said. "You feel you're invincible when you're at the top of the game and you're not. "Sadly, if anyone wants to know what happens if you get involved in taking cocaine, this is an example of someone who was at the top of the tree and because of cocaine, he ends up behind bars."

Brookside's Brian Regan jailed for Bahman Faraji murder lies

Ex-Brookside actor Brian Regan has been jailed for lying about his part in a gangland killing. Regan's sentence can be revealed following the conviction of Jason Gabbana, 29, for ordering the murder of a nightclub doorman in Liverpool. Bahman Faraji, 44, was shot dead at close range outside the Belgrave public house in Aigburth in February 2011. Regan, 54, who played Terry Sullivan in the soap, was jailed on 25 January for four years and 10 months. Gabbana, of Score Lane in Childwall, was found guilty of murder at Liverpool Crown Court. Mr Faraji was accused by Gabbana's defence of drug dealing and running an illegal protection racket. Snorting cocaine Regan, St Marys Road, Garston, Liverpool, was cleared of murder but convicted of perverting the course of justice after it emerged he lied to police when he was first arrested, telling them he was with his partner Christine Lines at the time of the murder. Bahman Faraji was shot as he left a pub In fact he was snorting cocaine in a car as father-of-one Mr Faraji was shot dead yards away at close range on the evening of 24 February 2011. Regan admitted driving gunman Edward Heffey to and from the hit but told the jury he did not know his passenger was carrying a sawn-off shotgun and was planning to kill Mr Faraji. Regan also disposed of a pair of gloves he wore on the night. The sentence, following a trial which ended in January, could not be reported until the conclusion of the Gabbana case. Gabbana was convicted of murder by an 11 to one majority. Heffey, 40, of Beloe Street, Dingle, Liverpool, and Simon Smart, 32, of Kylemore Way, Halewood, Liverpool, who police said set up the killing, were also convicted of murder at Liverpool Crown Court. Regan's best friend Lee Dodson, 42, of Logfield Drive, Garston, Liverpool was cleared of murder. The trial heard Regan was hooked on cocaine and began dealing it to fund his habit as his showbiz career declined. Courtroom fracas After he admitted driving the gunman, the court ordered security to be stepped up around Regan and security guards sat between him and the rest of the defendants. He was also designated a "vulnerable prisoner" and held in an isolation wing in jail. When Heffey's guilty verdict was delivered, a woman and a young man in the public gallery angrily interrupted proceedings and had to be bundled out by police. Heffey appeared to lunge towards Regan in the dock and was swiftly taken down to the cells by security officers. The jury was unable to reach a verdict on Regan's girlfriend Christine Lines, 48, also of St Mary's Road, Liverpool, who was accused of perverting the course of justice by helping the ex-actor dispose of the gloves. The matter was ordered to lie on file and she will not face a retrial. Mother-of-one Lines admitted permitting or suffering her premises to be used in the supply of cocaine and was sentenced to 30 months imprisonment suspended for 12 months, with a 12-month supervision requirement. Gabbana, Smart and Heffey will be sentenced either Friday or Monday, Mrs Justice Davies said.