Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Beyond Wedding Cake: LGBT Cases for Supreme Court

A flood of lawsuits over LGBT rights is making its way through courts and will continue, no matter the outcome in the Supreme Court’s highly anticipated decision in the case of a Colorado baker who would not create a wedding cake for a same-sex couple.

Courts are engaged in two broad types of cases on this issue, weighing whether sex discrimination laws apply to LGBT people and also whether businesses can assert religious objections to avoid complying with anti-discrimination measures in serving customers, hiring and firing employees, providing health care and placing children with foster or adoptive parents.

The outcome of baker Jack Phillips’ fight at the Supreme Court could indicate how willing the justices are to carve out exceptions to anti-discrimination laws; that’s something the court has refused to do in the areas of race and sex.

The result was hard to predict based on arguments in December. But however the justices rule, it won’t be their last word on the topic.

Boost from Trump

Religious conservatives have gotten a big boost from the Trump administration, which has taken a more restrictive view of LGBT rights and intervened on their side in several cases, including Phillips’.

“There is a constellation of hugely significant cases that are likely to be heard by the court in the near future and those are going to significantly shape the legal landscape going forward,” said Shannon Minter, legal director of the National Center for Lesbian Rights.

Several legal disputes are pending over wedding services, similar to the Phillips case. Video producers, graphic artists and florists are among business owners who say they oppose same-sex marriage on religious grounds and don’t want to participate in same-sex weddings. They live in the 21 states that have anti-discrimination laws that specifically include gay and lesbian people.

In California and Texas, courts are dealing with lawsuits over the refusal of hospitals, citing religious beliefs, to perform hysterectomies on people transitioning from female to male. In Michigan, the American Civil Liberties Union filed suit against the state’s practice of allowing faith-based child placement agencies to reject same-sex couples.

Stark differences

Advocates of both sides see the essence of these cases in starkly different terms.

“What the religious right is asking for is a new rule specific to same-sex couples that would not only affect same-sex couples but also carve a hole in nondiscrimination laws that could affect all communities,” said Camilla Taylor, director of constitutional litigation at Lambda Legal, which supports civil rights for LGBT people.

Jim Campbell of the Christian public interest law firm Alliance Defending Freedom said the cases will determine whether “people like Jack Phillips who believe marriage is the union of a man and a woman, that they too have a legitimate place in public life. Or does he have to hide or ignore those beliefs when he’s participating in the public square?” ADF represents Phillips at the Supreme Court.

Civil rights complaints

The other category of cases concerns protections for LGBT people under civil rights law. One case expected to reach the court this summer involves a Michigan funeral home that fired an employee who disclosed that she was transitioning from male to female and dressed as a woman.

The 6th U.S. Circuit Court of Appeals ruled that the firing constituted sex discrimination under federal civil rights law. That court is one of several that have applied anti-sex discrimination provisions to transgender people, but the Supreme Court has yet to take up a case.

The funeral home argues in part that Congress was not thinking about transgender people when it included sex discrimination in Title VII of the 1964 Civil Rights Act. A trial judge had ruled for the funeral home, saying it was entitled to a religious exemption from the civil rights law.

“Congress has not weighed in to say sex includes gender identity. We should certainly make sure that’s a conscious choice of Congress and not just the overexpansion of the law by courts,” Campbell said. ADF also represents the funeral home.

In just the past week, two federal courts ruled in favor of transgender students who want to use school facilities that correspond to their sexual identity. Those cases turn on whether the prohibition on sex discrimination in education applies to transgender people. Appeals in both cases are possible.

In the past 13 months, federal appeals courts in Chicago and New York also have ruled that gay and lesbian employees are entitled to protection from discrimination under Title VII. Those courts overruled earlier decisions. Title VII does not specifically mention sexual orientation, but the courts said it was covered under the ban on sex bias.

Trump changes course

The Obama administration had supported treating LGBT discrimination claims as sex discrimination, but the Trump administration has changed course. In the New York case, for instance, the Trump administration filed a legal brief arguing that Title VII was not intended to provide protections to gay workers. It also withdrew Obama-era guidance to educators to treat claims of transgender students as sex discrimination.

There is no appeal pending or expected on the sexual orientation issue, and there is no guarantee that the court will take up the funeral home’s appeal over transgender discrimination.

Changes on the court

The trend in the lower courts has been in favor of extending civil rights protections to LGBT employees and students. Their prospects at the Supreme Court may be harder to discern, not least because it’s unclear whether the court’s composition will change soon.

Justice Anthony Kennedy, 81, has been the subject of retirement speculation, though he has not indicated he is planning to retire. When Justice Stephen Breyer turns 80 in August, he will join Kennedy and Justice Ruth Bader Ginsburg, 85, as octogenarians on the bench.

If President Donald Trump were to replace any of those justices, the court probably would be much less receptive to LGBT rights. Even the landmark gay marriage ruling in 2015 that Kennedy wrote was a 5-4 decision.

“We’re very concerned about the composition of the federal bench. Under the Trump administration, we’ve seen a number of federal nominees who have been ideologues, who have taken positions about the very right to exist of LGBT people that is simply inconsistent with fitness to serve as a federal judge,” Taylor of Lambda Legal said.

The ADF’s Campbell said even with the current justices, he holds out some hope that the court would not extend anti-discrimination protections. 

“Justice Kennedy has undoubtedly been the person who has decided the major LGBT cases, but to my knowledge he hasn’t weighed in some of these other issues,” he said.

New York Clothing Store Sells Gender Neutral Lifestyle

New shops appear in New York City every day, but Phluid Project, which recently opened its doors on Broadway, is different. One of the first gender-fluid boutiques in the world, Phluid Project sells clothing for men, women and everyone in between. Both the clothes and the mannequins here are gender-neutral, and as an added selling point, its store owners say the prices are more than affordable. Elena Wolf visited the one-of-a-kind store, where no one feels out of place.

Russia, Turkey OK Pipeline Deal, End Gas Dispute

Russian state gas giant Gazprom said Saturday it had signed a protocol with the Turkish government on a planned gas pipeline and agreed with Turkish firm Botas to end an arbitration dispute over the terms of gas supplies. 

The protocol concerned the land-based part of the transit leg of the TurkStream gas pipeline, which Gazprom said meant that work to implement it could now begin.

Turkey had delayed issuing a permit for the Russian company to start building the land-based parts of the pipeline, which, if completed, would allow Moscow to reduce its reliance on Ukraine as a transit route for its gas supplies to Europe.

A source said in February the permit problem might be related to talks between Gazprom and Botas about a possible discount for Russian gas.

Turkish President Tayyip Erdogan said earlier Saturday that Turkey and Russia had reached a retroactive agreement for a 10.25 percent discount on the natural gas Ankara buys from Moscow.

Gazprom said in the Saturday statement, without elaborating, that the dispute with Botas would be settled out of court.

 

Italy’s President Pressured to Accept Euroskeptic Minister

Italy’s would-be coalition parties turned up the pressure on President Sergio Mattarella on Saturday to endorse their euroskeptic pick as economy minister, saying the only other option might be a new election.

Mattarella has held up formation of a government, which would end more than 80 days of political deadlock, over concern about the desire of the far-right League and anti-establishment 5-Star Movement to make economist Paolo Savona, 81, economy minister.

Savona has been a vocal critic of the euro and the European Union, but he has distinguished credentials, including in a former role as an industry minister.

Formally, Prime Minister-designate Giuseppe Conte presents his cabinet to the president, who must endorse it. Conte, a little-known law professor with no political experience, met the president on Friday without resolving the

deadlock.

“I hope no one has already decided ‘no,’ ” League leader Matteo Salvini shouted to supporters in northern Italy. “Either the government gets off the ground and starts working in the coming hours, or we might as well go back to elections.”

Later, 5-Star leader Luigi Di Maio said he expected there to be a decision on whether the president would back the government within 24 hours.

5-Star also defended Savona’s nomination. “It is a political choice. … Blocking a ministerial choice is beyond [the president’s] role,” Alessandro Di Battista, a top 5-Star politician, said.

Mattarella has not spoken publicly about Savona, but through his aides he has made it clear he does not want an anti-euro economy minister and that he would not accept the “diktat” of the parties.

Jittery markets

Savona’s criticism of the euro and German economic policy has further spooked markets already concerned about the future government’s willingness to rein in the massive debt, worth 1.3 times the country’s annual output.

The League and 5-Star have said Savona should not be judged on his opinions, but on his credentials. Savona has had high-level experience at the Bank of Italy, in government as industry minister in 1993-94, and with employers lobby Confindustria.

On his new Facebook page, Conte said he had received best wishes for his government in a phone call with French President Emmanuel Macron.

European Commissioner for Economic Affairs Pierre Moscovici was not hostile when asked about Savona in an interview with France’s Europe1 radio, saying he would work with whomever Italy named.

“Italians decide their own government,” Moscovici said. “Italy is and should remain a country at the heart of the eurozone. … What worries me is the debt, which must be contained.”

The prospect of Italy’s government going on a spending spree on promised tax cuts and welfare benefits roiled markets last week.

On Friday, the closely watched gap between the Italian and German 10-year bond yields, seen as a measure of political risk for the eurozone, was at its widest in four years at 215 basis points.

The chance that the new government will weaken public finances and roll back a 2011 pension reform prompted Moody’s to say — after markets had closed Friday — that it might downgrade the country’s sovereign debt rating.

Moody’s has a Baa2 long-term rating with a negative outlook on Italy. A downgrade to Baa3 would take the country’s debt to just one notch above junk.

Despite the recent surge, Italian yields are well below the peaks they reached during the eurozone crisis of 2011-12, thanks mainly to the shield provided by the European Central Bank’s bond-buying program.

Kenya Moves to Regulate Digital-Fueled Lending Craze

Kenya built a reputation as a pioneer of financial inclusion through its early adoption of a mobile money system that enables people to transfer cash and make payments on cellphones without a bank account.

Now, a proliferation of lenders are using the same technology to extend credit to the banked and unbanked alike, saddling borrowers with high interest rates and leaving regulators scrambling to keep up.

This week, the finance ministry published a draft bill on financial regulation that covers digital lenders for the first time. A key aim is to ensure that providers treat retail customers fairly, it said.

“We have a lot of predatory lending out here, which we want to regulate,” Geoffrey Mwau, director general of budget, fiscal and economic affairs at the treasury, told reporters Thursday.

Test case for lending

As it was for mobile cash, Kenya is something of a test case for the new lending platforms. Several of the companies involved, including U.S. fintech startups, have plans to expand in other frontier markets, meaning Kenya’s regulation will be closely watched.

From having had little or no access to credit, many Kenyans now find they can get loans in minutes.

George Ombelli, a salesman for a company importing bicycles who also owns a hair salon and cosmetics shop with his wife, has borrowed simultaneously from four providers over the past year.

He took small loans from two Silicon Valley-backed U.S. fintech firms, Branch and Tala, to see what rates he would get, as well as from a new mobile app launched by Barclays Kenya in March and a business loan from Kenya’s Equity Bank.

Citing a slowdown in his business because of elections-related political turmoil last year, Ombelli said he has fallen behind on some of his payments. He fears he will be reported to one of Kenya’s three credit bureaus, jeopardizing his chances of being able to borrow more to grow his business.

​‘Too many loans is a problem’

“I’ve realized having too many loans is a problem,” the 38-year-old father of three said in an interview in a coffee shop in Nairobi’s business district.

He is not alone. In the last three years, 2.7 million people out of a population of around 45 million have been negatively listed on Kenya’s Credit Reference Bureaux, according to a study by Microsave, which advises lenders on sustainable financial services.

For 400,000 of them, it was for an amount less than $2.

Global implications

Some of the fintech lenders are expanding into other African countries and into Latin America and Asia, saying their aim is to help some of the billions of people who lack bank accounts, assets or formal employment climb the economic ladder.

Tala says it has granted more than 6 million loans worth more than $300 million, mainly in Kenya, since it launched in Kenya in 2014. It is expanding its newer businesses in Mexico, Tanzania and the Philippines and is piloting in India.

Tala and Branch argue that their technology, which relies on an algorithm that builds a financial profile of customers, minimizes the risk of default. They say they strive to play a helpful role in planning for tighter regulation.

“We believe that credit bubbles and over-indebtedness will be a challenge over the next decade. (Credit Reference) Bureaus and regulation will be a big part of the solution,” said Erin Renzas, a Branch spokeswoman.

Branch says it expects to grant about 10 million loans worth a total of $250 million this year in Kenya and its other markets, Nigeria and Tanzania.

High interest rates

The current status of the sector, outside the direct remit of the central bank, allows providers, both banks and others, to skirt a government cap on interest of four points above the central bank’s benchmark interest rate, which now stands at 9.5 percent.

Market leader M-Shwari, Kenya’s first savings and loans product introduced by Safaricom and Commercial Bank of Africa in 2012, charges a “facilitation fee” of 7.5 percent on credit regardless of its duration.

On a loan with a month’s term, this equates to an annualized interest rate of 90 percent. The shortest loan repayment period is one week. A Safaricom spokesman referred Reuters to the CBA for comment. Calls to their switchboard and an email were not answered on Thursday.

Tala and Branch, number four and six in a ranking based on usage data by FSD Kenya, offer varying rates depending on the repayment period.

Their apps, downloaded by Reuters, each offered a month’s loan at 15 percent, equating to 180 percent over a year. Both companies say rates drop dramatically as people pay back successive loans.

Barclays Kenya launched an app in March offering 30-day loans with an interest rate of just less than 7 percent, still a hefty 84 percent annual equivalent rate. Reuters was unable to reach their spokespeople by telephone.

The new draft bill says digital lenders will be licensed by a new Financial Markets Conduct Authority and that lenders will be bound by any interest rate caps the Authority sets. But it is not clear if digital lenders are subject to such caps and the current government cap on banks’ interest rates is under review.

Introduced in 2016 to stop banks charging high interest rates, the cap has stifled traditional bank lending and the International Monetary Fund has conditioned Kenya’s continued access to balance of payments support on its removal.

But members of parliament say the public has had enough of high interest rates and the draft does not say the cap will be lifted. The finance ministry will come up with a final version of the bill in the next few weeks before sending it to parliament.

VOA Persian Interviews Secretary Pompeo on Iran

U.S. Secretary of State Mike Pompeo outlined the Trump administration’s efforts to end Iran’s nuclear program in an exclusive interview with VOA’s Persian service. VOA’s Julie Taboh reports, Thursday’s conversation also covered recent protests in Iran and the administration’s efforts to free Americans detained by Iran.

For Trump, There’s Always a ‘New Deal’ on the Horizon

Though U.S. President Donald Trump decided Thursday to not hold direct talks with North Korean leader Kim Jong Un, Trump has suggested he’s open to talks down the road, if relations improve. That offer of new talks, on his terms, is part of a pattern for Trump when it comes to negotiations. And it’s something that has had mixed results, as VOA’s Bill Gallo reports.

US Sen. Corker Meets with Venezuela’s President Maduro

The chairman of the U.S. Senate Foreign Relations Committee met with Venezuelan President Nicolas Maduro on Friday, less than a week after the embattled socialist leader was re-elected in a vote the U.S. condemned and he kicked out the top American diplomat in the country.

The visit appeared to be an attempt by Sen. Bob Corker to push for the release of Joshua Holt, a U.S. citizen who has been held for two years in a Caracas jail without a trial on what he has called trumped-up weapons charges.

Corker, a Republican from Tennessee, was seen live on state TV shaking hands with Maduro and being greeted by first lady Cilia Flores as he entered the presidential palace. He left an hour later, and neither the senator nor the president made any statements.

Maduro easily won a second, six-year term in Sunday’s election, which was criticized by the U.S. and other nations as a “sham” after several of his key rivals were barred from running. After his victory, Maduro expelled U.S. charge d’affaires Todd Robinson and his deputy for allegedly conspiring to sabotage the vote by pressuring opposition parties to boycott the election, which had the lowest voter turnout in decades.

Corker was accompanied by an aide, Caleb McCarry, who led backchannel talks earlier this year with a close associate of Maduro aimed at securing the release of Holt.

Speculation on social media

Holt, a 26-year-old from Utah, traveled to Venezuela in June 2016 to marry a woman he had met online while looking for Spanish-speaking Mormons to help him improve his Spanish. He was arrested after police said they found an assault rifle and grenades during a raid on the public housing complex where the couple lived. He has denied the charge.

Shortly after Corker’s meeting with Maduro, social media in Venezuela lit up with speculation that Holt and his wife, Thamara Caleno, would be released as a good will gesture to improve relations, much as North Korean leader Kim Jong Un did by freeing three American detainees.

In a previous visit to Caracas in 2015, Corker was shunned by Maduro after having been promised a meeting with the president. Upon his return to Washington, Corker blasted Maduro’s government, saying its “flawed economic policies and political system” had put Venezuela on a “destructive path.”

There was no immediate comment from Corker’s office about the nature of his latest visit.

​Other senators 

Last month, U.S. Sen. Dick Durbin, the No. 2 ranking Democrat on the Foreign Relations Committee, also met with Maduro to press for Holt’s release.

The Maduro government has been seeking contacts in the U.S. to stave off the threat of crippling oil sanctions that could further damage an economy already staggering from hyperinflation and widespread shortages.

U.S. Sen. Marco Rubio, an outspoken critic of Maduro who has President Donald Trump’s ear on Venezuela, played down Corker’s visit.

“Any U.S. Senator can meet with whoever they want,” Rubio tweeted. “But no matter how many senators dictator (at)NicolasMaduro gets to meet with him, U.S. sanctions will go away when Maduro leaves & democracy returns.”

Venezuelan Information Minister Jorge Rodriguez described Maduro’s conversation with Corker as “very good meeting, good news for the Venezuelan people” but gave no details of what the two discussed.

A close Maduro ally, socialist party boss Diosdado Cabello, accused Holt of being the CIA’s spy chief in Latin America after the prisoner appeared in a video last week pleading for help, saying his life had been threatened during a riot by inmates in the Caracas jail where he and dozens of Maduro’s opponents are being held.

Before he left Venezuela on Thursday on Maduro’s orders, Robinson had been pushing unsuccessfully to see Holt.

However, on Friday, U.S. officials were allowed entry to the prison, according to a message posted by Holt’s mother, Laurie Holt, on her Facebook page. She said her son “was in good spirits,” except for discomfort from dozens of mosquito bites. She said his visitors gave him bug repellant.

US Conservationists Sue Trump Administration Over Migratory Bird Policy

A coalition of conservation groups sued the Trump administration on Thursday, accusing the government of slashing protections for migratory birds.

At issue is the Migratory Bird Treaty Act, which the National Audubon Society and other plaintiffs say has been undermined. In the past, the act helped hold parties responsible for actions that killed or injured migratory birds.

But in December, the Trump administration said energy companies and other businesses that accidentally kill migratory birds will no longer be criminally prosecuted.

“As you can imagine, many causes of bird fatalities — including oil spills — could fall into this ‘unintentional’ category, so we’re taking the administration to court,” David Yarnold, president and CEO of the National Audubon Society, a plaintiff in the lawsuit, said in a statement.

Plaintiffs also include the American Bird Conservancy, the Center for Biological Diversity, and Defenders of Wildlife. The lawsuit was filed in the U.S. District Court for the Southern District of New York.

Defendants are the U.S. Department of the Interior, U.S. Fish and Wildlife Service and Daniel Jorjani, the Interior Department’s principal deputy solicitor.

The U.S. Attorney’s Office for the Southern District of New York, representing the government in the lawsuit, declined to comment. Representatives for the Fish and Wildlife Service, interior and justice departments also declined comment.

The Trump administration’s December move, in a legal memo from the Interior Department, reversed a longstanding practice at the agency and a last-minute rule implemented by the outgoing Obama administration. It came after several appeals courts ruled that the government was interpreting a century-old law aimed at protecting birds too broadly.

In the legal opinion, Jorjani said that a 1918 law that officials have used to prosecute those who kill birds “incidentally” as part of doing business was really aimed at preventing poaching and hunting without a license.

The Migratory Bird Treaty Act “applies only to direct and affirmative purposeful actions that reduce migratory birds, their eggs, or their nests, by killing or capturing, to human control,” Jorjani wrote.

The memo is already being followed, the lawsuit said, and one or more companies constructing natural gas pipelines were told they may cut down trees with nesting birds during the breeding season.

The conservation groups request that the court vacate the memo and declare the defendants “revert to their prior, correct longstanding interpretation and policy,” the lawsuit said.

Markets Disrupted as Italy’s Populists Negotiate Cabinet

Italy’s prime minister-designate, Giuseppe Conte, a political novice and obscure law professor accused of padding his resume, put the finishing touches to his cabinet lineup Friday. And initial reaction from financial markets was far from approving.

Italian government bond prices slumped and the country’s ailing banks saw their stock prices hit an 11-month low. Italy’s outgoing economy minister, Pier Carlo Padoan, warned the incoming coalition government of the anti-establishment Five Star Movement (M5S) and far-right League not to underestimate the power of the markets.

“The most worrying aspect of the program, which this government is working on, is its underestimation of the consequences of certain choices,” Padoan told the Il Sole 24 Ore newspaper.

M5S and the League unveiled their government agreement a week ago, after more than 70 days of tortuous talks, following the country’s inconclusive parliamentary elections in March. The polls saw establishment parties trounced.

The coalition partners’ program includes massive tax cuts favoring the rich — a League demand — additional spending on welfare for the poor, and job-seekers and a roll-back of pension reforms that helped Italy weather the multi-year-long eurozone debt crisis which bankrupted Greece.

Investors — domestic and foreign — are expressing alarm about what the next few months may hold for an Italy governed by unlikely political partners. Fears include a public sector spending spree that will put Rome not only on a collision course with the European Union over budget rules. It also will weaken the already perilous state finances of Italy, the third largest economy in Europe and the second most indebted.

Some financial analysts say investors are becoming wary about European equities in general, fearing political and economic unpredictability in Italy could trigger contagion, prompting a new eurozone crisis. European markets were on track Friday to record collectively their first weekly decline since March — and investors last week withdrew the most money in nearly two years from western European funds.

“Investors should take caution as far as European equities go,” Boris Schlossberg, managing director of FX Strategy at BK Asset Management, told CNBC’s cable TV show Trading Nation this week.

Immigration

EU officials in Brussels and Italy’s half-a-million migrants are as anxious as investors. They are bracing for confrontations with the incoming populist government, whose two halves agree about very little, except when it comes to euro-skepticism and disapproval of migrants. M5S itself is split sharply between liberals and conservatives.

Earlier this week Italian President Sergio Mattarella approved Giuseppe Conte, aged 54, as the coalition’s nominee for prime minister — despite evidence that the academic had padded his resume with stints at New York University, Girton College, Cambridge and France’s prestigious Sorbonne. None of them had any record of his official attendance, although he was granted a visitor’s library card by NYU.

Conte also claimed in his resume to have founded a prominent Italian law practice, but was only an external contributor, according to the firm.

A figurehead?

Few here in Rome believe Conte, who was born in the southern region of Puglia, will be anything but a figurehead. The mutually antagonistic party leaders, M5S’ Luigi Di Maio and the League’s Matteo Salvini, weren’t prepared to give way to each other and let the other have the job — hence Conte’s nomination, which still has to be approved by parliament.

The Economist magazine suggested he might end up as the fictional valet Truffaldino, a character in an 18th century Italian comedy entitled “Servant of Two Masters.” Whether he will be able to bridge disagreements between Di Maio and Salvini is unclear — and a testimony to that, say analysts, is the party leaders’ decision to set up a “conciliation committee” to adjudicate disputes.

“Nobody knows what will happen, because this is a government without precedent and the two parties are virtually incompatible,” said Sergio Fabbrini, director of the LUISS School of Government in Rome.

Economy

The parties were locked in dispute Friday with no agreement about who should occupy the key position of economy minister. The League has been pushing for 82-year-old economist Paolo Savona, a former industry minister who wants Italy to drop the euro as its currency, which he describes as “a German cage.” Savona opposed Italy signing in 1992 the Maastricht Treaty, a key document that started the process of closer EU political integration.

Even if the League fails in its bid to secure the economic portfolio for Savona, there are plenty of likely policy clashes ahead between the EU and Western Europe’s first all-populist government, despite the fact the League is no longer demanding Italy drop Europe’s single currency and M5S is no longer pushing for a referendum on Italy’s future EU membership.

Both party leaders now talk about reforming the EU from within.

Trouble ahead

Nonetheless, flashpoints are on the near horizon. Salvini, a hardline migrant opponent, is likely to become interior minister and will oversee the coalition’s agreed to anti-immigration plans, many of which are in violation of EU law. They include truncating asylum procedures, the forcible detention of irregular migrants and the repatriation of half-million migrants, most from sub-Saharan Africa, to their countries of origin.

Next month, EU leaders are due to extend the European bloc’s sanctions on Russia, but Italy’s coalition partners are opposed, viewing Moscow as a partner, rather than foe. Both M5S and the League want the sanctions lifted that were imposed on Russia for its 2014 annexation of Crimea.

Some analysts predict the new government’s slim majority — only seven in the Senate — as well as fiscal realities, will constrain the revolutionary fervor of Italy’s populists. But others envision instability and unpredictability in the weeks and months ahead.

On Friday, the European Commission’s vice-president for the euro, Valdis Dombrovskis, issued a stark warning to Italy: “Our message from the European Commission is very clear: that it is important Italy continues to stick with responsible fiscal and macro-economic policies.”

FBI: Foreign Hackers Have Compromised Home Router Devices

The FBI warned on Friday that foreign cybercriminals had compromised “hundreds of thousands” of home and small-office router devices around the world which direct traffic on the internet by forwarding data packets between computer networks.

In a public service announcement, the FBI has discovered that the foreign cybercriminals used a VPNFilter malware that can collect peoples’ information, exploit their devices and block network traffic.

The announcement did not provide any details about where the criminals might be based, or what their motivations could be.

“The size and scope of the infrastructure by VPNFilter malware is significant,” the FBI said, adding that it is capable of rendering people’s routers “inoperable.”

It said the malware is hard to detect, due to encryption and other tactics.

The FBI urged people to reboot their devices to temporarily disrupt the malware and help identify infected devices.

People should also consider disabling remote management settings, changing passwords to replace them with more secure ones, and upgrading to the latest firmware.

Discharged and Jobless: US Veterans Seek Change in Hiring Rules

Military veterans who were discharged for relatively minor offenses say they often can’t get jobs, and they hope a recent warning to employers by the state of Connecticut will change that.

The state’s human rights commission told employers last month they could be breaking the law if they discriminate against veterans with some types of less-than-honorable discharges. Blanket policies against hiring such veterans could be discriminatory, the commission said, because the military has issued them disproportionately to black, Latino, gay and disabled veterans.

At least one other state, Illinois, already prohibits hiring discrimination based on a veteran’s discharge status, advocates say, but Connecticut appears to be the first to base its decision on what it deems discrimination by the military. Regardless of the state’s reasons, veterans say, the attention there could at least educate employers.

“You may as well be a felon when you’re looking for a job,” said Iraq War veteran Kristofer Goldsmith. Goldsmith said the Army gave him a general discharge in 2007 because he attempted suicide.

An honorable discharge is the only type that entails full benefits. A dishonorable discharge is given after a court-martial for serious offenses, which can include felonies. Other types of discharges in between — known by veterans as “bad paper” — are issued administratively, with no court case, and can stem from behavior including talking back, tardiness, drug use or fighting.

The commission says its guidance focused on that middle class of discharges.

Sometimes such discharges are given to veterans whose violations stemmed from post-traumatic stress disorder, like Goldsmith’s, or brain injuries. Many private employers may not be aware of those extenuating circumstances or understand the differences between discharges, critics say.

And they either won’t hire bad-paper veterans or won’t give them preferences an honorably discharged veteran would get, the Veterans Legal Services Clinic at Yale Law School told the Connecticut commission.

The clinic, acting on behalf of the Connecticut chapter of the Iraq and Afghanistan Veterans of America, showed the commission job postings that require applicants who have served in the military to have been honorably discharged.

It also cited a 2017 report by the advocacy organization Protect Our Defenders that found black service members were more likely to be disciplined than white members. And the commission’s guidance to employers notes thousands of service members have been discharged for their sexual orientation.

Employers might require an honorable discharge as an easy way to narrow the pool and get strong applicants, said Amanda Ljubicic, vice president of the Chamber of Commerce of Eastern Connecticut.

“At face value it seems like a simple, logical cutoff to make as an employer,” she said. “Certainly this new policy forces employers to think about it differently and to think about the complexities.”

The Vietnam Veterans of America asked for a presidential pardon for bad-paper veterans. President Barack Obama didn’t respond as he was leaving office, nor did President Donald Trump as he was entering, said John Rowan, the organization’s president. He was unsure whether activists would ask Trump again.

PTSD

More than 13,000 service members received a type of discharge for misconduct, known as other than honorable, between 2011 and 2015, despite being diagnosed with PTSD, a traumatic brain injury or another condition associated with misconduct, the U.S. Government Accountability Office found.

The Department of Veterans Affairs, under an order from Congress, expanded emergency mental health coverage to those veterans for the first time last year.

Passing new laws to address the effects of bad paper is probably not the best solution, said U.S. Sen. Chris Murphy, a Connecticut Democrat who pushed for the changes; rather, he said, the military should stop issuing bad-paper discharges to injured veterans.

Goldsmith, 32, said he developed PTSD after his first deployment to Iraq. He was set to leave the military and go to college when the Army extended his active-duty service and ordered him back in 2007. Goldsmith said he attempted suicide shortly before he was due to deploy.

Because of his general discharge, Goldsmith lost his GI Bill benefits. He didn’t know how he’d find a job. If he didn’t mention his military service, he would have a four-year gap on his resume. But if he did, he would have to disclose medical information to explain why he left.

A friend eventually hired him to work at a photo-booth company, and Goldsmith began contacting members of Congress to press for health care for veterans with bad paper.

“Things like addressing employment discrimination on the national level are so far from possible,” he said, “I don’t think any of us in the advocacy community has put enough pressure on Congress to handle it.”

Broadcom’s Tan, CBS’s Moonves Among Highest-Paid CEOs

Here are the highest-paid CEOs for 2017, as calculated by The Associated Press and Equilar, an executive data firm.

The AP’s compensation study covered 339 executives at S&P 500 companies who have served at least two full consecutive fiscal years at their respective companies, which filed proxy statements between January 1 and April 30.

Compensation often includes stock and option grants that the CEO may not receive for years unless certain performance measures are met. For some companies, big raises occur when CEOs get a stock grant in one year as part of a multi-year grant.

  1. Hock Tan

Broadcom

$103.2 million

Change from last year: Up 318 percent

  1. Leslie Moonves

CBS

$68.4 million

Change: flat

  1. W. Nicholas Howley

TransDigm

$61 million

Change: Up 223 percent

(Howley left the CEO position last month.)

  1. Jeffrey Bewkes

Time Warner

$49 million

Change: Up 50 percent

  1. Stephen Kaufer

TripAdvisor

$43.2 million

 

Change: Up 3,400 percent

(Kaufer’s 2017 compensation excludes $4.8 million in incremental fair value relating to the modification of awards granted in 2013.)

  1. David Zaslav

Discovery Communications

$42.2 million

Change: Up 14 percent

  1. Robert Iger

Walt Disney

$36.3 million

Change: Down 11 percent

  1. Stephen Wynn

Wynn Resorts

$34.5 million

Change: Up 23 percent

(Wynn left the CEO position in February.)

  1. Brenton Saunders

Allergan

$32.8 million

Change: Up 693 percent

  1. Brian Roberts

Comcast

$32.5 million

Change: Down 1 percent

Former FBI Director Comey: Agency Cannot Fight Foreign Propaganda

Former U.S. FBI Director James Comey said that social media companies needed to “worry” about foreign political propaganda on their networks, but he had few ideas on how to counter it.

In an interview with Reuters, Comey also said he would be leery of the Federal Bureau of Investigation trying to track propaganda in the United States, let alone take action against it, while acknowledging that it was a major problem for the U.S. political system.

“I don’t have a great answer for them,” Comey said of social media companies including Facebook and Twitter, which were major venues for what U.S. intelligence agencies have said was a Russian-sponsored effort to help President Donald Trump win the 2016 U.S. election.

Comey’s comments on Wednesday follow former Director of National Intelligence James Clapper’s conclusion in a new book that the Russian election meddling, which allegedly included illegal hacking and leaking of stolen information as well as propaganda, had a decisive influence in electing Trump.

Trump fired Comey as the FBI investigated the Russian election interference, setting the stage for the appointment of Special Counsel Robert Mueller and his wide-ranging inquiries.

Comey has been criticized for the FBI’s failure to counter Russia’s election meddling while it was happening.

But Comey said the FBI should not get involved in fighting propaganda because it is a “rule-bound institution,” with strict policies that serve as an appropriate check on its power.

“You’d want to be very thoughtful about having the FBI, without having a predicated investigation, be monitoring speech in the U.S., because it’s often very difficult to tell, is it coming from a nation state?” Comey said. “So, in theory, that might involve collecting more broadly on speech in the United States.”

He said those same concerns had kept the FBI from tracking an influence campaign that included Russian-driven Facebook posts that reached more than 100 million people on that social network alone ahead of the 2016 election.

Spy claims

Comey avoided answering questions about the ongoing Mueller probe and his own role in the earlier version of the investigation, but he scoffed at Trump’s accusation this week that the FBI had planted a spy inside his 2016 campaign.

Comey said he could not comment directly on the claim, floated this week by Trump and Republican supporters in Congress.

More generally, Comey said, “The word ‘spy’ is not an accurate characterization in any case of the FBI’s use of confidential human sources, which are a critical tool in all of our investigations — people telling us things that they know.”

Asked whether he could deny that the FBI sent someone to get a job working full-time inside Trump’s presidential campaign, Comey laughed and said: “I’m tempted, but I’ve got to leave it to the Bureau to comment.”

Uncrackable encryption

Comey is best known in Silicon Valley for leading an Obama administration charge against end-to-end encryption uncrackable by law enforcement.

In the interview, he conceded that one of the technology companies’ major objections to giving U.S. authorities special access — that it would then have to do the same for governments in Russia, China and elsewhere — was “reasonable.”

But he said some companies were already aiding such regimes by storing data in those countries and allowing access to source code. If they were sufficiently worried, he said, they could stop doing business in those places.

Comey said his goal was a process under which companies would grant access to authorities only according to strict standards of due process, such as relying on independent judges.

If the companies refused backdoor access until the other countries changed their legal system, “it would be good for the people of China and Russia.”

Amazon’s Alexa Accidentally Tapes, Shares Family Chat With Contact

A Portland, Oregon, family has learned what happens when Amazon.com Inc’s popular voice assistant Alexa is lost in translation.

Amazon on Thursday described an “unlikely … string of events” that made Alexa send an audio recording of the family to one of their contacts randomly. The episode underscored how Alexa can misinterpret conversation as a wake-up call and command.

A local news outlet, KIRO 7, reported that a woman with Amazon devices across her home received a call two weeks ago from her husband’s employee, who said Alexa had recorded the family’s conversation about hardwood floors and sent it to him.

“I felt invaded,” the woman, only identified as Danielle, said in the report. “A total privacy invasion. Immediately I said, ‘I’m never plugging that device in again, because I can’t trust it.'”

Alexa, which comes with Echo speakers and other gadgets, starts recording after it hears its name or another “wake word” selected by users. This means that an utterance quite like Alexa, even from a TV commercial, can activate a device.

That’s what happened in the incident, Amazon said. “Subsequent conversation was heard as a ‘send message’ request,” the company said in a statement. “At which point,

Alexa said out loud ‘To whom?’ At which point, the background conversation was interpreted as a name in the customer’s contact list.”

Amazon added, “We are evaluating options to make this case even less likely.”

Assuring customers of Alexa’s security is crucial to Amazon, which has ambitions for Alexa to be ubiquitous — whether dimming the lights for customers or placing orders for them with the world’s largest online retailer.

University researchers from Berkeley and Georgetown found in a 2016 paper that sounds unintelligible to humans can set off voice assistants in general, which raised concerns of exploitation by attackers. Amazon did not immediately comment on the matter, but it previously told The New York Times that it has taken steps to keep its devices secure.

Millions of Amazon customers have shopped with Alexa. Customers bought tens of millions of Alexa devices last holiday season alone, the company has said. That makes the incident reported Thursday a rare one. But faulty hearing is not.

“Background noise from our television is making it think we said Alexa,” Wedbush Securities analyst Michael Pachter said of his personal experience. “It happens all the time.”

US Program That Aids Immigrants, Courts Under Review

Imer still has fragments from a bullet in his back. The 43-year-old Mexican immigrant, who asked to be identified only by his first name, fled the Mexican state of Guerrero more than 20 years ago after he was shot in the back by a Mexican drug gang.

He entered the U.S. illegally in 1998 and settled in Norristown, Pennsylvania, where he made a living working in construction. Two months ago he was arrested and put in detention in the York County Prison in south-central Pennsylvania.

“I’ve never committed a crime, not even a traffic ticket,” he said, as he choked up with tears. “Now, I don’t know what’s going to happen to my family if I am deported,” he said. Imer has two American-born children.

Recently, he was among a dozen detained undocumented immigrants, all from Latin America and dressed in orange prison overalls, sitting at a long table in a small room inside the detention center listening to a presentation in Spanish about their legal options. Fernanda Castillo, a staffer from the Pennsylvania Immigration Resources, or PIRC, explained the legal remedies they might pursue.

“Our main goal is to let them know what are their rights, what to expect in immigration court,” Castillo later told VOA. “We’ll talk about a couple of defenses to see if they are eligible for something and we talk about bond and voluntary departure as well.”

PIRC’s orientation class is indirectly funded by the U.S. Justice Department under the Legal Orientation Program, or LOP. Created in 2003 under the Bush administration, the LOP is aimed at giving detained immigrants some understanding of their rights and possible relief under U.S. immigration law. Administered by the Vera Institute of Justice, the $8 million-a-year program is carried out by PIRC and 17 other nonprofits in more than 30 detention centers from California to Virginia.

​Legal orientation program

The orientation class lasts about an hour, as Castillo explained what the detainees could expect when they appear before a U.S. immigration judge. Most wanted to know about getting bail.

“Am I eligible for bond? How low is the bond, how high is the bond,” Castillo said. “We get a lot of voluntary departure questions as well, a lot of people will not know the difference between a voluntary departure and a removal order, which can be an excruciating decision.”

Voluntary departure means someone may be able to return legally someday, though usually years later. With removal, there’s no chance, as Castillo explained to the class.

PIRC gets $200,000 a year for the information sessions and one-on-one workshops it conducts at the York County Prison.

PIRC Executive Director Mary Studzinski says the sessions have a direct impact on the immigration court process, now laboring under a backlog of more than 700,000 cases.

“It allows someone when they’re done with that class to have a better sense of whether they have any hope of staying, and if they do, what might be an avenue that they could pursue,” Studzinski told VOA in her office less than 2 kilometers from the prison. 

“If you know you have no remedy under law and there’s no way you can stay, then probably your best answer is that, ‘No, your honor, I would like to leave.’ (LOP) has an impact on the courts; it makes the courts more efficient,” she said.

This kind of impact saves the U.S. Treasury almost $18-million-a-year, according to a 2012 Vera Institute study of the LOP. A U.S. Immigration and Customs Enforcement (ICE) memo last year endorsed the LOP, saying informed detainees complete their cases faster.

Yet U.S. Attorney General Jeff Sessions has expressed concerns about the program. Earlier this year, he suspended funding pending a review. But responding to congressional pressure, Sessions later told a Senate panel last month that funding would continue as the LOP is evaluated.

The judge’s job

A Justice Department spokesperson later told VOA that it is time for a new review.

“We believe the reviews should be done on a more frequent basis,” the spokesperson said. “There’s a question about the (Vera Institute) methodology, and also we maintain that there’s a large overlap between what the LOP does and what the immigration judges do. They (the LOP) explain the rights to the detainees but this is also done by the immigration judges.”

But PIRC’s Studzinski says there’s no comparison. While some judges are more thorough than others, “I’ve seen it done in less than five minutes and they certainly don’t take an hour. … So if you ask me if a judge’s advisal is the same thing as a legal orientation, I would say no. Do I think advisals are important, yes they absolutely should remain in place but they are in no way a substitute for the Legal Orientation Program.”

Studzinski adds that PIRC this year is on track to orient 2,600 detainees, a figure much higher than two years ago.

“The increase we’re seeing is people being swept in from the community who in the previous administration would never have been picked up,” Studzinski said. “These are people who have been in the community for 10, 15, 20 years, who have not violated any laws.”

Like Imer, who is hoping to apply for asylum. During the recent PIRC orientation class Imer said he had paid a lawyer $3,000 but had not heard from him in the two months he has been in jail. PIRC later found out the “lawyer” was simply a notary. The organization is now working to help Imer find legal representation.

Jury: Samsung Owes Apple $539M for Copying iPhone

A jury has decided Samsung must pay Apple $539 million in damages for illegally copying some of the iPhone’s features to lure people into buying its competing products.

The verdict reached Thursday is the latest twist in a legal battle that began in 2011. Apple contends Samsung wouldn’t have emerged as the world’s leading seller of smartphones if it hadn’t ripped off the technology powering the pioneering iPhone in developing a line of similar devices running on Google’s Android software.

Patents infringed

Previous rulings had determined that Samsung infringed on some of Apple’s patents, but the amount of damages owed has been in legal limbo. Another jury convened for a 2012 trial had determined Samsung should pay Apple $1.05 billion, but U.S. District Judge Lucy Koh reduced that amount to $548 million.

The issue escalated to the U.S. Supreme Court , which determined in 2016 that a lower court needed to re-examine $399 million of the $548 million. That ruling was based on the concept that the damages shouldn’t be based on all the profits that the South Korean electronics giant rung up from products that copied the iPhone because its infringement may only have violated a few patents.

$1 billion or $28 million?

Apple had argued it was owed more than $1 billon while Samsung contended the $399 million should be slashed to $28 million. The revised damages figure represents a victory for Apple, even though it isn’t as much as the Cupertino, California, company had sought.

“Today’s decision flies in the face of a unanimous Supreme Court ruling in favor of Samsung on the scope of design patent damages,” Samsung said in a statement. “We will consider all options to obtain an outcome that does not hinder creativity and fair competition for all companies and consumers.”

An eight-person jury came up with the new amount following a one-week trial and four days of deliberation in a San Jose, California, federal courthouse.

Apple expressed gratitude to the jury for agreeing “that Samsung should pay for copying our products.”

“This case has always been about more than money,” a company statement said. “Apple ignited the smartphone revolution with iPhone and it is a fact that Samsung blatantly copied our design.”

US Bill Would Force Tech Companies to Disclose Foreign Software Probes

U.S. tech companies would be forced to disclose if they allowed American adversaries, like Russia and China, to examine the inner workings of software sold to the U.S. military under proposed legislation, Senate staff told Reuters on Thursday.

The bill, approved by the Senate Armed Services Committee on Thursday, comes after a year-long Reuters investigation found software makers allowed a Russian defense agency to hunt for vulnerabilities in software that was already deeply embedded in some of the most sensitive parts of the U.S. government, including the Pentagon, the Federal Bureau of Investigation and intelligence agencies.

Security experts say allowing Russian authorities to conduct the reviews of internal software instructions — known as source code — could help Russia find vulnerabilities and more easily attack key systems that protect the United States. 

The new source code disclosure rules were included in Senate version of the National Defense Authorization Act, the Pentagon’s spending bill, according to staffers of Democratic Senator Jeanne Shaheen.

​Details of bill, which passed the committee 25-2, are not yet public. And the legislation still needs to be voted on by the full Senate and reconciled with a House version of the legislation before it can be signed into law by President Donald Trump.

If passed into law, the legislation would require companies that do business with the U.S. military to disclose any source code review of the software done by adversaries, staffers for Shaheen told Reuters. If the Pentagon deems a source code review a risk, military officials and the software company would need to agree on how to contain the threat. It could, for example, involve limiting the software’s use to non-classified settings.

The details of the foreign source code reviews, and any steps the company agreed to take to reduce the risks, would be stored in a database accessible to military officials, Shaheen’s staffers said. For most products, the military notification will only apply to countries determined to be cybersecurity threats, such as Russia and China.

Shaheen has been a key voice on cybersecurity in Congress. The New Hampshire senator last year led successful efforts in Congress to ban all government use of software provided by Moscow-based antivirus firm Kaspersky Lab, amid allegations the company is linked to Russian intelligence. Kaspersky denies such links.

In order to sell in the Russian market, tech companies including Hewlett Packard Enterprise Co, SAP and McAfee have allowed a Russian defense agency to scour software source code for vulnerabilities, Reuters found. In many cases, Reuters found that the software companies had not previously informed U.S. agencies that Russian authorities had been allowed to conduct the source code reviews. In most cases, the U.S. military does not require comparable source code reviews before it buys software, procurement experts have told Reuters. 

The companies have said the source code reviews were conducted by the Russians in company-controlled facilities, where the reviewer could not copy or alter the software. McAfee announced last year that it no longer allows government source code reviews. Hewlett Packard Enterprise has said none of its current software offerings have gone through the process.

Senate Approves Bill to Address Capitol Hill Sexual Harassment

The U.S. Senate on Thursday unanimously approved legislation that would step up protections for congressional staffers facing workplace harassment,

including requiring lawmakers to use their personal funds to cover the cost of settlements if they were the alleged harassers.

The bipartisan legislation, which had more than 40 co-sponsors in the 100-seat Senate, would also make public the harassment settlements and the lawmakers involved, automatically refer such settlements to the Senate Ethics Committee and more closely track allegations of harassment within the U.S. Capitol.

“Hardworking taxpayers should not foot the bill for a member’s misconduct, and victims should not have to navigate a system that stands in the way of accountability,” Republican Senator Roy Blunt of Missouri said in a statement with Democratic Senator Amy Klobuchar of Minnesota.

Klobuchar said the bill would “help bring accountability and transparency to a broken process, ensure victims can immediately seek justice and hold members of Congress accountable.”

Reconciliation needed

The measure would update employee protections enacted in 1995. The House of Representatives passed its own version of the legislation in February. The two chambers need to reconcile the differences between the two bills before the measure can be signed into law by President Donald Trump.

The push to pass legislation to protect congressional employees follows allegations of sexual harassment against dozens of high-profile men in politics, media, entertainment and business. Both the House and Senate bills would require lawmakers to use their own money to cover the cost of settling

such matters.

Currently, there is a congressional fund that pays for harassment settlements, including those involving the conduct of House and Senate lawmakers.

Republican Representatives Blake Farenthold and Patrick Meehan are among those who have resigned from Congress because of allegations of sexual harassment. Both said they would repay the U.S. Treasury for the congressional funds used for the settlements. Farenthold has since said he will not do so.

The House Ethics Committee released a statement Thursday reiterating it does not have jurisdiction over House members once they resign. The committee urged Congress to pass legislation that would ensure lawmakers are personally liable for their conduct, even after they leave office.

FBI Taps Private Industry to Bring Down Hacker Clearinghouse

When a federal jury in Alexandria, Virginia, convicted a Latvian software developer last week of running an underground clearinghouse for computer hackers, U.S. prosecutors highlighted it as an example of their commitment to combating cybercrime.

“This verdict demonstrates our commitment to holding such actors accountable,” said acting U.S. Attorney Tracey Doherty-McCormick. “I commend the work of the agents and prosecutors both in the United States and in Latvia, who worked together to bring him to justice.”

Not mentioned was the role played by Trend Micro, a Japanese cybersecurity firm that collaborated with the FBI to hunt down the developer, Ruslans Bondars, and an accomplice, Jurijs Martisevs, who jointly operated Scan4You, a site that helped hackers test their malware.

In a report released after the verdict, Trend Micro offered an inside look at how it identified Scan4You in 2012, took a trove of data about the site to the FBI in 2014, and then worked closely with agents as they built a case against the two men.

Trend Micro says it has supported nearly 20 law enforcement cases around the world.

“In this case, our global threat intelligence network and team of researchers provided an invaluable resource for the FBI as it homed in on this notorious [counter antivirus] service,” said Ed Cabrera, chief security officer for Trend Micro.

The case highlights how the FBI and private cybersecurity firms, once wary of working together, have in recent years started teaming up to combat cybercrime, a problem that costs the world an estimated $600 billion a year. 

“The value that the private sector brings to law enforcement investigations is almost incalculable,” said John Boles, a director at consulting firm Navigant who previously worked as an assistant FBI director and led the bureau’s global cyberoperations.

A decade ago “there was almost hesitation on both sides of the fence to cooperate, but somewhere along the line as the scales have tipped, everybody realized it’s a global issue,” Boles said.

In 2011, the FBI created the Office of the Private Sector within the Cyber Division, making private-sector collaboration a key pillar of its cybercrime-fighting strategy.

Since then, the bureau has made more than a dozen major arrests in cybercrime cases, many with help from the private sector, according to Boles. While cybercrime investigations are often initiated by the bureau, some start with a tip from the private sector.

Unusual activity

That was the case with the Scan4You investigation.

In 2012, Trend Micro researchers, while investigating a hacker group, noticed a flurry of unusual activity on their threat radar: Somebody using Latvia IP addresses kept checking the company’s web reputation system, a program that blocks malicious websites.

That led them to another discovery: regular checks of Scan4You URLs against Trend Micro’s web reputation system emanating from Latvia. The goal: to determine whether Scan4You’s scanning scripts could detect malware.

“By 2014, we had a deeper understanding [of Scan4You] and began that relationship with the FBI,” Cabrera said.

The collaboration would continue for the next three years as Trend Micro researchers and FBI agents gathered evidence about Scan4You, its operators and its users.

Scan4You was an underground service that allowed hackers to upload their malware to see whether it could be detected by more than 35 antivirus engines. At its peak in 2016, Scan4You was the largest service of its kind, boasting more than 30,000 customers.

The service allowed cyber scofflaws to test all manner of malicious software, ranging from so-called crypters, a type of software used to conceal malicious files, to remote access trojans, programs that allow a remote operator backdoor access to a computer.

‘World’s most destructive hackers’

Among Scan4You’s customers were “some of the world’s most destructive hackers,” according Doherty-McCormick, the Virginia prosecutor.

One customer used Scan4You to test malware that was later used to steal about 40 million credit card and debit card numbers, costing one U.S. retailer $292 million, according to court documents.

A Russian hacker used Scan4You to develop Citadel, an infamous botnet used by cybercriminals to steal $500 million from bank accounts. The FBI worked with Microsoft to break up the network.

But Scan4You was not a very lucrative operation. As researchers dug deeper, they discovered that Bondars and Martisevs were affiliated with “some of the longest-running cybercriminal businesses” and “involved with one of the largest and oldest pharmaceutical spam gangs known as Eva Pharmacy,” according to Trend Micro.

Bondars, a longtime Latvian resident of Ukrainian citizenship, designed and maintained the site.

Martisevs, a Russian national living in Latvia, provided customer service and promoted the site on cybercriminal forums.

The pair’s deep involvement in an assortment of criminal activities gave them something that helped with their scanning service: cyber-cred.

“These threat actors gained the respect of many other cybercriminals who trusted them and used their malware scanning service,” the report says.

The end for Scan4You came with the 2017 arrests and extradition of Bondars and Martisevs to the United States. Shortly after their arrest, Scan4You went dark.

In March, Martisevs pleaded guilty and agreed to testify against Bondars. Last week, Bondars was convicted of three counts related to his role in Scan4You.

Scan4You’s downfall has taken the biggest service of its kind out of commission, but just how big a blow to cybercrime it represents remains to be seen.

Typically, when a site like Scan4You goes offline, its users flee to copycat sites. That has yet to happen, Cabrera said.

“This is a big blow to cybercrime, helping to disrupt countless threat actors and prove there are consequences to their actions,” he said.

Trump’s North Korea Rhetoric: Bellicose and Benevolent

When it comes to rhetoric about North Korea, U.S. President Donald Trump has been the master of both the bellicose taunt and soothing benevolence, often in close proximity to each other.

Trump’s duality on the reclusive communist pariah nation was on display again Thursday as he canceled the planned June 12 summit in Singapore with North Korean leader Kim Jong Un.

On the one hand, Trump told Kim that he was “very much looking forward to being there with you.” But then he said he was canceling because, “Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have this long-planned meeting.”

Trump warned, “You talk about your nuclear capabilities, but ours are so massive and powerful that I pray to God they will never have to be used.”

Still, wait a minute, Trump seemed to say. “I felt a wonderful dialogue was building up between you and me,” he said, adding his thanks for releasing three Americans who had been held in North Korea. He held out hope to get together in the future, saying, “If you change your mind having to do with this most important summit, please do not hesitate to call me or write.”

Mostly, through his 16-month presidency and in the years before he transformed himself from a New York real estate mogul into a Republican presidential contender, Trump warned of the dangers of a nuclear North Korea. His barbed comments about Kim and North Korea’s broken promises in years past to denuclearize echoed the sentiment of many U.S. politicians, but often included an extra helping of ridicule.

Trading insults

In 2013, two years before he announced his presidential candidacy, Trump warned former President Barack Obama to be cautious with Kim, calling the North Korea leader a “whack job.”

During a debate in the run-up to the November 2016 presidential election, Trump assailed Kim as a “maniac” who “actually has nuclear weapons.” 

He said that if Kim came to the United States, “I’d accept him, but I wouldn’t give him a state dinner like we do for China and all these other people that rip us off.”

At another point in the campaign, Trump seemed accepting about the possibility of assassinating Kim, saying in an interview he could “get China to make [Kim] disappear in one form or another.”

As president, through much of his first year in office in 2017, Trump regularly excoriated Kim, including at the U.N. General Assembly. On various occasions, Trump called him a “sick puppy” and “Little Rocket Man,” and questioned why Kim would call him a dotard, or a weak-minded old person.

“Why would Kim Jong Un insult me by calling me ‘old,’ when I would NEVER call him ‘short and fat’?” Trump retorted. 

Fire and fury

As North Korea carried out numerous missile and nuclear tests last year, Trump became more bellicose, saying, “Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!”

Trump warned that if North Korea attacked the U.S. or its allies, he would launch “fire, fury and, frankly, power, the likes of which this world has never seen before.”

The U.S. leader rebuked former Secretary of State Rex Tillerson for suggesting that negotiations with North Korea could be fruitful and lead to the denuclearization of the Korean Peninsula, saying he was “wasting his time.”

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years. Talking is not the answer!” Trump declared.

Talks on, then off

But late last year and into 2018, Trump watched as South Korea welcomed North Korean athletes at the Winter Olympics and said it was his administration’s imposition of economic sanctions against North Korea that forced it to open talks with South Korea.

Trump said he, too, would be open to negotiations with North Korea.

In March, when South Korean envoys conveyed a message from Pyongyang that it was willing to meet with Trump, he accepted immediately. In recent weeks, there were direct, high-level talks between Kim and Mike Pompeo, first in his role as director of the U.S. Central Intelligence Agency and then as secretary of state, all aimed at arranging the summit in Singapore.

Pompeo returned from Pyongyang with three Americans who had been detained by North Korea on spurious charges. Details were being worked out for the U.S.-North Korea summit. One U.S. group even minted a medallion commemorating the would-be meeting.

But then North Korea attacked U.S. calls for unilateral denuclearization, criticizing the views of Trump national security adviser John Bolton and describing U.S. Vice President Mike Pence as a “political dummy.”

For Trump, that was enough. With his signature on a single-page letter, he called off the summit.

Trump Signs Bill Easing Restraints on Small US Banks

U.S. President Donald Trump signed into law Thursday a measure that eases rules imposed on banks in the aftermath of the 2008 financial crisis and the Great Recession.

The law relaxes regulations and oversight on banks with assets below $250 billion, leaving a handful of the largest U.S. banks that must still comply with the stringent rules and oversight.

Trump said at the signing ceremony the rules and oversight, enacted by the 2010 Dodd-Frank financial reform law, were “crushing small banks.” Trump lauded the signing as a victory in his administration’s efforts to eliminate regulations to promote economic growth.

Although Trump signed the bill into law, much of Dodd-Frank remains intact. Trump signed the Republican-led measure that was passed by Congress after receiving the support of some Democrats.

Dodd-Frank was signed into law by President Barack Obama in response to a crisis that resulted in the loss of 8 million jobs, 2.5 million home foreclosures and the shuttering of 2.5 million businesses, according to Northwestern University’s Institute for Policy Research.

A federal report prepared by the Financial Crisis Inquiry Commission concluded economic weaknesses that created the potential for the crisis were “years in the making.” But the report said “it was the collapse of the housing bubble — fueled by low interest rates, easy and available credit, scant regulation and toxic mortgages — that was the spark that ignited a string of events, which led to the full-blown crisis in the fall of 2008.”

Africa in Spotlight at Paris Tech Fair

French President Emmanuel Macron says his country will invest $76 million in African startups, saying innovation on the continent is key to meeting challenges ranging from climate change to terrorism. He spoke Thursday at a technology fair in Paris showcasing African talent this year.

It is hard to miss the African section of Viva Tech. There are gigantic signs pointing to stands from South Africa, Morocco and Rwanda. And there are lots of African entrepreneurs.

Omar Cisse heads a Senegalese startup called InTouch, which has developed an app making it easier to conduct financial transactions by mobile phone.

“Globally, you have more than $1 billion per day of transactions on mobile money, and more than 50 percent are done in sub-Saharan Africa,” he said.

Cisse says the challenges for African startups are tremendous, but so are the opportunities.

“In Africa, you have very huge potential. Everything needs to be done now, and with local people who know the realities,” he said.

Like Cisse, Cameroonian engineer Alain Nteff is breaking new ground. He and a doctor co-founded a startup called Gifted Mom, which provides health information to pregnant and nursing women via text messaging.

“I think the biggest problems today in Africa are going to be solved by business, and not by development and nonprofits,” he said.

Nteff gets some support from the United Nations and other big donors. But funding is a challenge for many. African startups reportedly raised $560 million last year, compared with more than $22 billion raised by European ventures.

Now they are getting a $76 million windfall, announced by President Emmanuel Macron here at the tech fair.

“When the startups decide to work together to deploy ad accelerate equipment in Africa, it is good for the whole continent, because that is how to accelerate everything and provide opportunities — which by the way, is the best way to fight against terrorism, jihadism … to provide another model to these young people,” he said.

The funding comes from the Digital Africa Initiative, run by France’s AFD development agency (Agence Francaise de Developpement).

“I think the main challenge is access to funding, and the second is the coaching to grow. AFD wants them to find solutions,” said Jean-Marc Kadjo, who heads the project team.

There are plenty of exciting projects here. Reine Imanishimwe is a wood innovator from Rwanda.

“I try to use my wood in high technology. As you can see, my business card is wood, but I print it using a computer,” said Imanishimwe.

Abdou Salam Nizeyimana is also from Rwanda. He works for Zipline, an American startup that uses drones to fly blood to people and hospitals in Rwanda, cutting delivery times from hours to minutes.

“Now doctors can plan surgery right away and just say, ‘We need this type of blood,’ ” and it can be delivered in about a half hour or less, he said.

Rwandan President Paul Kagame toured the tech fair with Macron. Relations between Rwanda and France are warming, after years of tension over Rwanda’s 1994 genocide.

Entrepreneur Nizeyimana is happy about that. When politics are good, he says, it is good for technology transfer and Africa’s development.

Buffalo: City With a Magnificent Past Fallen on Hard Times

Even though the United States is one of the richest and most technologically advanced countries in the world, about 45 million Americans live below the poverty line. In Buffalo, New York, a once-prosperous city that has fallen on hard-times, one-third of its residents live in poverty. As Olga Loginova reports, the city offers an example of what happens when a once-powerful industrial sector declines and well-paying jobs become scarce.