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Martin Shkreli is escorted to a car after his arrest.
‘Most hated CEO’ arrested for fraud
United States Defence Secretary Ash
Carter used a personal e-mail account
for some work-related business earlier
this year at the Pentagon, although he
has since stopped such use of his personal
e-mail, the Pentagon says.
The New York Times first reported
yesterday Carter’s use of his personal
e-mail account, citing White House and
Defence Department officials and copies
of the e-mails.
Carter, who took office in February,
continued to use his own e-mail account,
contrary to Defence Department rules,
for at least two months after it became
public in March that Hillary Clinton
had used only her personal e-mail
account while she was secretary of state,
the Times quoted the officials as saying.
“After reviewing his e-mail practices
earlier this year, the secretary believes that
his previous, occasional use of personal
e-mail for work-related business, even
for routine administrative issues and
backed up to his official account, was a
mistake,” Pentagon press secretary Peter
Cook said in a statement overnight.
“As a result, he stopped such use of his
personal e-mail and further limited his
use of e-mail altogether. He is confident
that his work-related e-mail has been
and will continue to be preser ved within
the federal records system,” he said.
Cook said in the statement Carter had
used a personal e-mail account mainly to
correspond with friends and family.
The e-mail issue has dogged Clinton’s
campaign for the Democratic nomination
for president in the November 2016
election and prompted a Federal Bureau
of Investigation probe.
The Times had cited an Obama
administration official as saying that
White House chief of staff Denis
McDonough directed the White House
Counsel’s Office to ask the Pentagon
why Carter was using his own e-mail
account when he learned of it in May.
It was unclear how many e-mails Carter
sent and received from his personal
account, the Times said.
Cook said Carter does not directly
e-mail anyone within the Department
of Defence or the US government except
“a very small group of senior advisers,
usually his chief of staff ”.
He said Carter does not use his
personal or official e-mail “for classified
material”. — Reuters
Martin Shkreli, a lightning rod
for growing outrage over soaring
prescription drug prices, was arrested
in New York by the Federal Bureau
of Investigation (FBI) overnight on
securities fraud charges involving his
former hedge fund and a pharmaceutical
company he previously headed.
Shkreli, who is now chief executive
officer of Turing Pharmaceuticals and
Kalo Bios Pharmaceuticals Inc, was
charged in a federal indictment related
to his time managing hedge fund
MSMB Capital Management and
heading biopharmaceutical company
The indictment, filed in Brooklyn,
New York, also charged Evan Greebel,
a former partner at law firm Katten
Retrophin’s outside counsel.
Both were also sued in a related
lawsuit by the United States Securities
and Exchange Commission, which also
named MSMB Capital as a defendant.
Brooklyn US Attorney Robert Capers
is scheduled to hold a press conference
with officials from the FBI and SEC to
announce the charges, his office said.
The investigation predated the
controversy surrounding Shkreli since
September, when reports surfaced that
his privately held Turing had raised
the price of Daraprim, a 62-year-old
treatment for a dangerous parasitic
infection, to $750 a tablet from $13.50
after acquiring it.
Shkreli’s arrest at the Murray Hill
Manhattan was seen by witnesses. Law
enforcement, including FBI agents,
could be seen escorting Shkreli, who was
wearing a hoodie, into a car.
FBI spokeswoman Kelly Langmesser
confirmed the arrests of Shkreli and
Lawyers for Shkreli had no comment.
A lawyer for Greebel did not
immediately respond to requests for
comment. Greebel, 42, in July had
joined the law firm Kaye Scholer, which
in a statement noted the “transactions in
question predated his arrival to the firm.”
The outcry over Daraprim turned
Shkreli, a boyish drug company
entrepreneur, into a pariah on the
internet, where he persistently provoked
his critics on Twitter.
In recent days, he has said journalists
do not “matter” and asked about a
Democratic presidential candidate, “If
@BernieSanders was a parasite what
would he be?”
Sanders, who advocates a single payer
health care system to control drug prices,
has refused to accept a donation from
Shkreli, instead giving the money to a
health clinic in Washington, DC.
Shkreli also called himself “the world’s
most eligible bachelor” and boasted
about buying the only copy of a Wu-
Tang Clan album for $2 million. Robert
Diggs, the rap group’s producer, later
gave away most of the proceeds in
protest of Shkreli’s business practices.
On Twitter, the top hashtag and
keyword related to Shkreli’s arrest was
#Karma, with many saying on social
media that the drug company executive
was getting what he deser ved.
The charges relate to Shkreli’s
management of New York-based hedge
fund MSMB Capital Management,
whose closure he announced in 2012,
and his time as chief executive of
Retrophin from 2012 to 2014.
The indictment said Shkreli made false
representations to MSMB investors to
draw in $3m in investments.
After MSMB suffered devastating
trading losses in 2011 and ceased
trading, Shkreli for months sent
fabricated updates to investors touting
profits of as high as 40% since inception,
the indictment said.
He also solicited $5m from investors
for another fund, MSMB Healthcare
Management LP, while concealing his
performance managing MSMB Capital
and a prior fund and providing investors
an inflated valuation of his then-private
firm Retrophin, the indictment said.
To pay back the MSMB funds’
Shkreli and Greebel
misappropriated $11m in Retrophin
assets through settlement agreements
and sham consulting deals, according to
The case mirrors a lawsuit Retrophin
filed in August against Shkreli in federal
court in Manhattan for $65m, claiming
he had used his control over the company
to enrich himself and pay off MSMB
Shkreli has denied the allegations.
It is unclear how the case and other
continuing investigations could affect
Turing or Kalo Bios.
At least two separate Congressional
probes have been launched since
September on the pricing issues
of Daraprim, which had long been
available as a generic drug used to treat
toxoplasmosis in Aids patients.
Turing is also under investigation by
the New York State Attorney-General
for anti-trust concerns.
At a Senate hearing on drug pricing
last week, a doctor who treats babies with
life-threatening toxoplasmosis testified
a course of treatment with Daraprim
went from about $1200 to no less than
$69,000. — Reuters
The mother of James Foley, the
American hostage beheaded on
camera by Islamic State last year,
says she is angry at French far-right
politician Marine Le Pen for posting
a graphic photo depicting the act on
The leader of the anti-immigration
National Front (FN), which won
almost a third of the votes in regional
elections this month but is shunned as
extremist by mainstream politicians,
posted the photo on her Twitter
account along with two others.
She did it to object to views voiced
by an author, who said there were
similarities between her party and IS.
“This is #Daesh,” she said in the
posting, using the Arabic term for
the jihadist group that controls
swathes of Syria and Iraq and is being
bombed by western forces.
The beheaded corpse of a man in a
prisoner-style orange tracksuit with
his severed head placed on his chest
was among the photos.
“ We are offended that that awful
image of our son’s brutal murder be
used publicly,” Diana Foley said in an
inter view on Europe 1 radio.
“ To tweet it again just continues
to promote their propaganda — the
horrible way they recruit others who
want to be brutal. I certainly do not
want that to continue. ”
Separately, in a joint statement
with Foley’s father John tweeted by
Nicolas Henin, a French journalist
and former IS captive, Diana Foley
said: “ We are deeply disturbed by
the unsolicited use of Jim for Le
Pen’s political gain and hope that the
picture of our son, along with two
other graphic photographs, are taken
A spokesman for the National
Front had no comment the remarks.
The beheading picture was no
longer showing on Le Pen’s Twitter
account overnight, but two others —
one showing a prisoner being burned
alive and the other a tank driving over
another man in an orange tracksuit
— w ere still there.
Le Pen’s tweet was a response to
a comment from Gilles Kepel, an
academic who this week published
a book called Terror in the Hexagon
(France) about French-born jihadis.
In a radio inter view, Kepel said
that although IS and the FN were
very different, there were similarities
because of their politics of exclusion.
Slain IS hostage’s mum slams image use
US theme parks
Major United States theme parks
in Florida and California, including
Disney, Sea World and Universal
Studios, are adding security measures to
Walt Disney Co is also ending sales of
toy guns at its parks, banning visitors over
the age of 14 from wearing costumes and
adding random secondary screenings of
visitors with metal detectors.
Guests at Disney theme parks in
Anaheim, California, and Orlando,
Florida, previously had their bags
checked by hand and with a handheld
metal detector, officials said overnight.
The moves follow a December 2
shooting rampage that killed 14 people
in San Bernardino, California, by a
married couple inspired by Islamic State,
and the November 13 attacks in Paris in
which 130 people died.
The theme park companies did not
refer to either event in announcing the
increased security, although Disney did
say it was increasing security in light of
recent events. Anaheim is about 80km
south-west of San Bernardino.
Sea World Entertainment Inc is also
using metal detectors at its Orlando
park, according to local media reports.
Universal is testing the use of metal
detectors at its Orlando and Hollywood
parks, but not in response to a specific
incident, spokesman Tom Schroder said.
“ We just want our guests to feel safe,”
At Disney’s Florida parks, more
uniformed law enforcement officers will
be patrolling the parks, and less visible
security measures are being enhanced,
the company said.
comprehensive approach to security and
are implementing additional security
measures, as appropriate,” Disney said in
A man was arrested last weekend
after trying to bring a gun into Disney ’s
Magic Kingdom park at Walt Disney
World, the Orlando Sentinel newspaper
reported. — Reuters
Gun supplier in shooting
may face charges
Federal authorities are preparing
criminal charges against a man who
investigators say supplied guns to the
married couple who killed 14 people at a
holiday party in San Bernardino.
Enrique Marquez, a friend and former
neighbour of radicalised Muslim Syed
Rizwan Farook, who carried out the
December 2 attack with his wife,
Tashfeen Malik, could be charged as
early as today, CNN and NBC reported,
citing unnamed law enforcement
US prosecutors are considering filing
firearms charges against Marquez,
with State gun charges also possible,
one of the government sources said on
condition of anonymity.
Marquez, 24, who had checked
himself into a Los Angeles-area
psychiatric facility shortly after the
shootings, had several connections to
Farook and Malik, and quickly became
a key figure in the investigation of the
The Federal Bureau of Investigation
raided his home and questioned him for
During the investigation, a law
enforcement source said Marquez, who
had converted to Islam, and Farook
apparently had plotted some sort of
attack in about 2012, but abandoned the
Marquez, who had known Farook
since childhood, legally purchased the
two AR-15 rifles that the couple used
in their attack on a holiday party of
Farook’s co-workers before they were
killed in a shootout with police a few
Marquez, who had worked at Walmart
and at a bar recently, is related to Farook’s
family by marriage. His wife and the
wife of Farook’s older brother are sisters.
Farook and Malik were buried on
Tuesday following a quiet, graveside
Islamic ceremony guarded by FBI
President Barack Obama is due to
travel to San Bernardino tomorrow to
meet privately with victims’ families.
Adelaide is expected to swelter through
at least two more days of scorching heat,
as South Australia gears up for its third
consecutive 40deg C day.
The mercury is set to soar towards
43degC today with relatively still winds
Still air will mitigate the fire threat
today but stronger winds tomorrow are
considered the biggest concern of State
Fire bans were imposed across the
Flinders, Mid North, Mount Lofty
Ranges, Riverland and Murraylands
districts on Friday, with a state-wide fire
ban likely to be imposed on Saturday.
“ People will need to be thinking about
their fire plans,” a Country Fire Ser vice
“There’s a chance of storm activity in
the far north and that ’s probably our
biggest concern today, of lightning strikes
starting fires in the pastoral lands. ”
CFS said it has all its resources deployed
to stamp out any fires early, and warned
South Australians not to undertake any
risks that may light a fire.
Adelaide and many South Australian
regional centres are set to post four
consecutive days above 40degC this
week, the first time that has happened in
Victoria is also expected to suffer
through two more days of hot weather,
peaking at 41degC tomorrow. Total
fire bans have been imposed in the
State’s central region today, including
Melbourne, and extending to a State-
wide ban tomorrow. — AAP
The United Nations Security Council
warned overnight that some countries
are failing to implement long-standing
sanctions against Islamic State, as an
unprecedented meeting of finance
ministers put the global focus on cutting
off the militant group’s funds.
The 15-member council unanimously
adopted a resolution that ties together
existing measures targeting Islamic
State’s finances and offers guidance on
implementation in a bid to push more
countries to act.
It builds on a Security Council action in
February that banned trade in antiquities
from Syria, threatened sanctions on
anyone buying oil from Islamic State and
al Qaeda-linked Nusra Front militants
and urged States to stop kidnap ransom
“We alreadyhavealot ofthesetools ...
we’re going to be bringing together a lot
of strands, but what we most need now is
states to do what they’re supposed to do,”
a US official said, speaking on condition
The resolution “expresses concern about
the lack of implementation” of previous
resolutions targeting al Qaeda and
Islamic State, including an “ insufficient
level of reporting” by States on measures
they have taken to implement United
The council renamed its al Qaeda
sanctions regime the “Isil (Daesh) and al
Qaeda Sanctions Committee” — Islamic
State is also known as Isil and Daesh
and called on States to report within
120 days on their implementation of
Islamic State, which was blacklisted
by the Security Council sanctions
committee as an offshoot of al Qaeda in
Iraq in May 2013, has seized swaths of
territory in Iraq and Syria where it has
proclaimed a caliphate.
The council also specifically asked
States to report to on “ interdictions in
their territory of any oil, oil products,
modular refineries, and related material
being transferred to or from (Islamic
State or Nusra Front).”
Islamic State militants have made
more than $500 million trading oil
with significant volumes sold to the
Syrian government and some finding
its way to Turkey, a senior US Treasury
Department official said last week.
Russia has also accused Turkey ’s
President Tayyip Erdogan and his family
of benefiting from the illegal smuggling
of oil from Islamic State-held territory in
Syria and Iraq. Erdogan has denied the
The US and Russian-drafted resolution
the result of a planned 18-month
review of the al Qaeda sanctions regime
— wa s adopted at the meeting of Security
Council finance ministers chaired by US
Treasury Secretary Jack Lew. The US is
president of the council for December.
There are currently 243 individuals
and 74 entities on the Isil and al Qaeda
sanctions list. They are subject to an arms
embargo and a global asset freeze and
The resolution makes clear that States
are required to prevent their citizens
from funding or providing ser vices to
“terrorist organisations or individual
terrorists for any purpose — Reuters
UN turns up
IRA bomb survivor faces
stern test as political leader
Four decades after the Irish
Republican Army almost killed her
father, Arlene Foster will need to
cultivate a partnership with a former
Irish Republican Army commander
if she is to end Northern Ireland’s
perpetual political crisis as its first
The 45-year-old lawyer, who
also sur vived an IRA bomb attack
on her school bus as a teenager,
was elected unopposed overnight
as leader of the pro-British
Democratic Unionist Party (DUP)
to become the British province’s
She will be sworn in January as
First Minister to ser ve alongside
Deputy First Minister Martin
McGuinness, a former commander
in the IRA, whose 30-year war
against British rule ended after a
1998 peace deal.
As head of a right-wing party with
eight seats in Britain’s parliament,
Foster is also a potential partner
for British Prime Minister David
Cameron’s Conser vative Party.
dysfunctional executive which has
required repeated international
mediation in recent years to stave
off the collapse of power sharing
and a return to direct rule from
London that some warn would
The political uncertainty has
helped scare away the kind of
foreign investment that has
transformed the Republic of
Ireland, uncertainty deepened by
Britain’s referendum on leaving the
European Union due by the end of
“S he has said it will be business as
usual and if that is to be taken at face
value that is not very encouraging,”
Reg Empey, a member of the
House of Lords with the rival pro-
British Ulster Unionist Party, said.
“People are horrified at the poor
level of delivery and failure to grasp
opportunities. (The Northern Irish
parliament) Stormont has been a
huge disappointment. ”
More than 3600 died in the
Troubles as Catholic Irish militants
seeking to unite the province with
the Republic of Ireland faced off
against the British Army and
Protestant Loyalist paramilitaries,
who wanted it to remain British.
Foster has been feted as a member
of a new generation of politicians
who came to prominence after the
But even if she is two decades
younger than outgoing leader Peter
Robinson, a sidekick of firebrand
party founder Ian Paisley, the
conflict left deep scars.
Foster’s father, a member of the
Royal Ulster Constabulary police
reser ve, was shot in the head by the
IRA on the family farm when she
was eight. She watched him come
“crawling into the house, blood
streaming down his face,” she told
the Sunday Tribune newspaper.
He recovered and continued to
ser ve in the police, but the family
was forced to move.
When she was 17 she sur vived
an IRA bomb on her school bus
which was being driven by a part-
time soldier in the Ulster Defence
Regiment, badly injuring the girl
sitting next to her.
Her party insists that the past will
not colour her policies, pointing
to Paisley, one of the biggest hate
figures for Irish nationalists, who
developed such a close relationship
with McGuinness that they were
dubbed the “Chuckle Brothers.”
“ I think those experiences will
make her even more determined to
make a Northern Ireland free from
violence and free from terrorism,”
DUP member of parliament Jeffrey
“She will be pragmatic in her
approach to Sinn Fein. I think in
Arlene, Sinn Fein will find they
have a very formidable person to
Foster says she already has a
workmanlike relationship with
McGuinness. “ We get on with
the job in hand, that is what we
are elected to do,” she said in an
inter view last month.
Some nationalists have their
doubts, particularly after she told
the BBC in September that she saw
herself as a gatekeeper to prevent
“rogue Sinn Fein or renegade
(liberal Irish nationalist) SDLP
ministers taking decisions that will
harm the community in Northern
Those comments were interpreted
as a sign of business as usual, with
both sides of the sectarian divide
focused on scoring political points
and battling for resources for their
respective communities rather than
developing the economy.
nationalists as a pretty bitter figure,”
nationalist newspaper columnist
Brian Feeney said. “ I don’t think
she will be forgiven for that ‘rogues
and renegades’ comment any time
Foster was elected unopposed in
the election overnight to replace
her close ally Robinson.
But analysts say she will need to
win over the trust of the mainly
older male Presbyterians who
dominated the party, some of whom
are sceptical about her more liberal
Church of Ireland background and
former membership of the UUP,
with whom she split over whether
to share power with Sinn Fein.
While the party is hopeful
a female leader with a UUP
background may help it win new
voters in the elections in May, the
coming campaign will give her little
space for compromise.
There is also little sign that Foster
will break ranks with her party in
their staunch opposition to gay
marriage and abortion. “Arlene has
consistently supported the party
line” on both issues, Donaldson
said. — Reuters
Niger’s govt foils coup bid
Niger’s government has foiled
an attempted coup and arrested
people who planned to use aerial
firepower to seize control, President
Mahamadou Issoufou said in an
address on national television
Issoufou was elected in 2011, one
year after a coup. Political tension
is high ahead of a presidential
election set for February 21.
Issoufou is favourite to win but the
opposition accuses his government
of repression ahead of the vote.
Issoufou called the coup attempt
high treason and said the situation
was under control and all the main
actors had been arrested, except one
person who had fled. The people
behind the coup held power in the
1960s, he said.
“The government has just foiled
an evil attempt at destabilisation.
The objective of these individuals,
motivated by I don’t know what, was
to overthrow the democratically
elected power,” he said.
“They envisaged using aerial
firepower and they have for some
weeks deliberately blocked (those
military assets) in Niamey that I
was pressing them to send to Diffa
to the front for the struggle against
Boko Haram,” he said.
The west African country is
a major uranium producer and
western ally in a regional fight
against Islamist militants including
Nigeria’s Boko Haram. Niger has
declared a state of emergency in its
south-eastern Diffa region due to
numerous cross-border attacks this
year from Nigeria.
Gendarmes arrested at least four
senior military officers on Tuesday,
military sources and family members
of those detained said overnight.
Among those taken into custody
were the former military chief of
staff, General Souleymane Salou,
Haoua, head of the air force base in
the capital Niamey.
“It’s said they are suspected of
wanting to carry out subversive
activities, but nothing is clear for
the moment,” a relative of Salou
Issoufou’s election marked the
restoration of democratic rule after
a coup toppled his predecessor
Mamadou Tandja. — Reuters
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