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The Courts

Huawei CFO Says HSBC Emails Disprove Basis For US Extradition Claim (reuters.com) 48

AltMachine shares a report from Reuters: "Lawyers fighting the extradition of Huawei's chief financial officer to the United States on Tuesday presented internal emails from British bank HSBC that they said disproved U.S. claims that Huawei misled the bank," reports Reuters. "CFO Meng Wanzhou's legal team said the emails and documents submitted to a Canadian court showed at least two senior HSBC leaders were aware of connections between Huawei and its Iranian subsidiary, Skycom. Meng's lawyers are trying to add the documents to evidence. They are meant to counter U.S. charges that only junior employees of the British bank knew about the true nature of relationship between Huawei and Skycom. U.S. prosecutors have alleged that Meng misled HSBC about Huawei's business dealings in Iran and may have caused the bank to break U.S. sanctions."

Business dealings with Iran was not illegal under Canada laws as the sanction was not a UN resolution and had no legal basis internationally. The only way for the extradition to proceed would be to show Huawei misled HSBC which operates in the U.S. Amid intensifying US-China technology and economic rivalry, it is not the first time the U.S. law enforcement fabricating false accusation against Chinese or China-linked persons. Earlier in April, U.S. court trial reveals federal agents falsely accused a UT professor born in China of spying and three Congressmen are asking the Department of Justice Office of the Inspector General to "review whether the China Initiative puts untoward pressure on DOJ personnel to engage in racial or ethnic profiling." Federal agents falsely accused Hu of spying for China based solely on a Google search, testimony revealed. After Hu refused to work as a spy for the U.S. government, agents stalked and harassed him for more than two years, leading to the destruction of his reputation and internationally renowned career.

Canada

At Nearly 116 Degrees, Heat in Western Canada Shatters National Record (nytimes.com) 185

The heat is expected to continue for several days in some parts of British Columbia, according to weather warnings from the government. From a report: Vancouverites were frying eggs on pans placed on their terraces. One man checked into an air-conditioned five-star hotel, after the five fans aimed at his bed at home and the seventh cold shower failed to bring relief. Lettuce plants shriveled in the Okanagan Valley, British Columbia's picturesque wine region. Flowers wilted. People wilted. The heat wave across western Canada has much of a country known for its sweater weather sweating. Canada broke a national heat record on Sunday when the temperature in a small town in British Columbia reached almost 116 degrees Fahrenheit, breaking an 84-year-old record by nearly 3 degrees, with dangerously hot weather expected to continue for several more days.

"This is a complete shock to a Canadian -- this feels like Las Vegas or India -- not Vancouver," said Chris Johnson, a criminal lawyer who on Monday was heading to an air-conditioned hotel room as temperatures inside his home reached 90 degrees Fahrenheit. Tying any one weather event to climate change requires extensive attribution analysis, but heat waves around the world are growing more frequent, longer-lasting and more dangerous, experts say. David Phillips, a senior climatologist at Environment Canada, a government agency, said the early timing of this one, its intensity and its duration, could all be attributable to rising global temperatures.

United States

Microsoft Exec: Targeting of Americans' Records 'Routine' (apnews.com) 38

Federal law enforcement agencies secretly seek the data of Microsoft customers thousands of times a year, according to congressional testimony Wednesday by a senior executive at the technology company. From a report: Tom Burt, Microsoft's corporate vice president for customer security and trust, told members of the House Judiciary Committee that federal law enforcement in recent years has been presenting the company with between 2,400 to 3,500 secrecy orders a year, or about seven to 10 a day. "Most shocking is just how routine secrecy orders have become when law enforcement targets an American's email, text messages or other sensitive data stored in the cloud," said Burt, describing the widespread clandestine surveillance as a major shift from historical norms.

The relationship between law enforcement and Big Tech has attracted fresh scrutiny in recent weeks with the revelation that Trump-era Justice Department prosecutors obtained as part of leak investigations phone records belonging not only to journalists but also to members of Congress and their staffers. Microsoft, for instance, was among the companies that turned over records under a court order, and because of a gag order, had to then wait more than two years before disclosing it.

United Kingdom

New UK Internet Law Raises Free Speech Concerns, Say Civil Liberties Campaigners (politico.eu) 49

Britain's proposed new internet law entails a government power grab with worrying implications for freedom of speech, according to civil liberties groups, academics and the tech industry. From a report: The groups are concerned the proposed Online Safety Bill would hand to Culture Secretary Oliver Dowden disproportionate powers in the name of protecting users from "harmful" content. The Bill allow him to "modify" a code of practice -- the blueprint created by the regulator Ofcom for how tech companies should protect users -- to ensure it "reflects government policy." Critics say such powers, which were set out in a draft of the proposed law published in May and due for imminent scrutiny by MPs and peers, could undermine the regulator's independence and potentially politicize the regulation of the internet.

"The notion that a political appointee will have the unilateral power to alter the legal boundaries of free speech based on the political whims of the moment frankly makes the blood run cold," said Heather Burns, policy manager at the Open Rights Group. The draft bill -- which hasn't yet begun its formal passage through parliament -- is due to be checked line-by-line by legislators before being brought back to parliament later this year, where it will then pass through the stages it needs to end up on the statute books. The U.K. government and opposition parties are currently finalizing which lawmakers will sit on the pre-legislative committee.

Security

New Charges Filed Against Capital One Hacker, Trial Postponed To 2022 (therecord.media) 18

The US government has filed a superseding indictment against Paige A. Thompson, a former Amazon engineer accused of hacking Capital One and stealing the personal data of more than 100 million Americans. From a report: According to court documents filed earlier this month and obtained by The Record, the US Department of Justice has added seven new charges on top of the original two it filed in August 2019. The new charges -- six counts of computer fraud and abuse, and one count of access device fraud -- come as investigators have made headway in analyzing data seized from Thompson's computers and servers.
The Internet

Ohio GOP Ends Attempt To Ban Municipal Broadband After Protest From Residents (arstechnica.com) 207

An anonymous reader quotes a report from Ars Technica: After coming close to imposing a near-total ban on municipal broadband networks, Ohio's Republican-controlled legislature has reportedly dropped the proposed law in final negotiations over the state budget. The final budget agreement "axed a proposal to limit local governments from offering broadband services," The Columbus Dispatch wrote. With a June 30 deadline looming, Ohio's House and Senate approved the budget and sent it to Gov. Mike DeWine for final approval on Monday night, the Dispatch wrote.

As we wrote earlier this month, the Ohio Senate approved a version of the budget containing an amendment (PDF) that would have forced existing municipal broadband services to shut down and prevented the formation of new public networks. The proposed law was reportedly "inserted without prior public discussion," and no state senator publicly sponsored the amendment. It was approved in a party-line vote as Democrats opposed the restrictions in municipal broadband. The House version did not contain the amendment, and it was dropped during negotiations between the House and Senate.

Lawmakers apparently relented to public pressure from supporters of municipal broadband and cities and towns that operate the networks. People and businesses from Fairlawn, where the city-run FairlawnGig network offers fiber Internet, played a significant role in the protests. FairlawnGig itself asked users to put pressure on lawmakers, and the subscribers did so in great numbers. "We had a real grassroots movement here in Fairlawn. We are thrilled our residents, subscribers, and businesses came together and helped us defeat this amendment," Fairlawn Service Director Ernie Staten said yesterday, according to an article by the Community Networks team at the Institute for Local Self-Reliance (ILSR). "We appreciate that the State of Ohio recognizes that municipal broadband has a place in this state and we hope to continue this great endeavor." Fairlawn subscribers sent more than 700 emails telling lawmakers, "Don't take this (municipal broadband) away!" Staten said.
The report notes that while Ohio's legislature isn't banning public networks, at least for now, it "is apparently not letting municipal networks apply for a new round of funding."

"While Staten celebrated the removal of the budget amendment, he called the victory 'bittersweet,' as municipalities and electric cooperatives in the state do not have access to the proposed $250 million broadband expansion grant program that will be established when, and if, Gov. Dewine signs the budget into law," the ILSR wrote. The outcome of that isn't certain yet. "We have been asking for a small definition change to add municipalities and electric coops, but unless they changed the language, I believe the House version stands," Staten told the ILSR.
Transportation

US Agency Orders Automated Vehicle Makers To Report Crashes (apnews.com) 49

The U.S. government's highway safety agency has ordered automakers to report any crashes involving fully autonomous vehicles or partially automated driver assist systems. The Associated Press reports: The move Tuesday by the National Highway Traffic Safety Administration indicates the agency is taking a tougher stance on automated vehicle safety than in the past. It has been reluctant to issue any regulations of the new technology for fear of hampering adoption of the potentially life-saving systems. The order requires vehicle and equipment manufacturers and companies that operate the vehicles to report crashes on public roads involving fully autonomous vehicles, or those in which driver assist systems were operating immediately before or during a crash.

"By mandating crash reporting, the agency will have access to critical data that will help quickly identify safety issues that could emerge in these automated systems," NHTSA Acting Administrator Steven Cliff said in a statement. The agency says it will look for potential safety defects, and the information could cause it to send out a crash investigation team or open a defect investigation. Companies have to report crashes involving fully autonomous or partially automated vehicles within one day of learning about them, if they involve a hospital-treated injury, a death, air bag deployment, pedestrians or bicyclists, or were serious enough for a vehicle to be towed away. Other crashes involving vehicles equipped with the systems involving injury or property damage have to be reported every month. The requirement does not apply to consumers who own vehicles or auto dealers. NHTSA says in a statement that the data can show if there are common patterns in crashes involving the systems.

Canada

Canada To Ban Sale of New Fuel-Powered Cars and Light Trucks From 2035 (reuters.com) 273

Canada will ban the sale of fuel-burning new cars and light-duty trucks from 2035 in an effort to reach net-zero emissions across the country by 2050, Prime Minister Justin Trudeau's government said on Tuesday. Reuters reports: Only zero-emissions cars and trucks can be sold from 2035, according to a statement, adding that a mixture of investments and regulations will help industry transition toward that goal. The government also said it will set interim targets for 2025 and 2030. "We are committed to aligning Canada's zero-emission vehicles sales targets with those of the most ambitious North American jurisdictions," Environment Minister Jonathan Wilkinson said in the statement. "We will work with the United States to harmonize fuel efficiency regulations and we're investing in consumer rebates, charging stations, business tax breaks and industry transition costs," Wilkinson added.

"Canada cannot reach our greenhouse gas targets if emissions from cars, SUVs and pickups, which are currently growing, are not curtailed," said Keith Brooks, programs director at advocacy group Environmental Defence, who welcomed the move. Brooks said only 3.5% of vehicles now sold in Canada are electric and that the government needs to do more to support the market for zero-emissions vehicles.

United States

John McAfee's Death Complicates US Efforts To Seize His Assets (bloomberg.com) 122

John McAfee's death last week in a Spanish prison complicates the U.S. government's intent to recover millions of dollars it says the software tycoon owed in taxes and allegedly ill-gotten gains from promoting cryptocurrencies. From a report: McAfee, who decades ago founded the anti-virus company that bears his name, was found dead in his cell just hours after Spanish courts approved his extradition to the U.S. to face charges of tax evasion. U.S. prosecutors accused McAfee of not filing tax returns from 2014 to 2018 even as he earned millions from "promoting cryptocurrencies, consulting work, speaking engagements and selling the rights to his life story for a documentary," according to an indictment last June in a U.S. court in Tennessee, where he once lived.

Spanish court documents released last week alleged he owed the U.S. government more than $4.2 million in taxes. Separately, the U.S. Securities and Exchange Commission claimed McAfee promoted investments in initial coin offerings without disclosing he was paid more than $23 million to do so. The U.S. Department of Justice has a similar case against him. According to the indictment, McAfee managed to avoid paying taxes by routing his payments through bank accounts and cryptocurrency accounts set up in other people's names and hiding assets like real estate, a vehicle and a yacht also under the names of others. Such a complex money trail could keep lawyers busy for years.

Electronic Frontier Foundation

'Golden Age of Surveillance', as Police Make 112,000 Data Requests in 6 Months (newportri.com) 98

"When U.S. law enforcement officials need to cast a wide net for information, they're increasingly turning to the vast digital ponds of personal data created by Big Tech companies via the devices and online services that have hooked billions of people around the world," reports the Associated Press: Data compiled by four of the biggest tech companies shows that law enforcement requests for user information — phone calls, emails, texts, photos, shopping histories, driving routes and more — have more than tripled in the U.S. since 2015. Police are also increasingly savvy about covering their tracks so as not to alert suspects of their interest... In just the first half of 2020 — the most recent data available — Apple, Google, Facebook and Microsoft together fielded more than 112,000 data requests from local, state and federal officials. The companies agreed to hand over some data in 85% of those cases. Facebook, including its Instagram service, accounted for the largest number of disclosures.

Consider Newport, a coastal city of 24,000 residents that attracts a flood of summer tourists. Fewer than 100 officers patrol the city — but they make multiple requests a week for online data from tech companies. That's because most crimes — from larceny and financial scams to a recent fatal house party stabbing at a vacation rental booked online — can be at least partly traced on the internet. Tech providers, especially social media platforms, offer a "treasure trove of information" that can help solve them, said Lt. Robert Salter, a supervising police detective in Newport.

"Everything happens on Facebook," Salter said. "The amount of information you can get from people's conversations online — it's insane."

As ordinary people have become increasingly dependent on Big Tech services to help manage their lives, American law enforcement officials have grown far more savvy about technology than they were five or six years ago, said Cindy Cohn, executive director of the Electronic Frontier Foundation, a digital rights group. That's created what Cohn calls "the golden age of government surveillance." Not only has it become far easier for police to trace the online trails left by suspects, they can also frequently hide their requests by obtaining gag orders from judges and magistrates. Those orders block Big Tech companies from notifying the target of a subpoena or warrant of law enforcement's interest in their information — contrary to the companies' stated policies...

Nearly all big tech companies — from Amazon to rental sites like Airbnb, ride-hailing services like Uber and Lyft and service providers like Verizon — now have teams to respond...

Cohn says American law is still premised on the outdated idea that valuable data is stored at home — and can thus be protected by precluding home searches without a warrant. At the very least, Cohn suggests more tech companies should be using encryption technology to protect data access without the user's key.

But Newport supervising police detective Lt. Robert Salter supplied his own answer for people worried about how police officers are requesting more and more data. "Don't commit crimes and don't use your computer and phones to do it."
Space

Virgin Galactic Okayed For Space Launches. Will Richard Branson Beat Jeff Bezos? (go.com) 63

"Virgin Galactic finally has the federal government's approval to start launching customers into space from New Mexico," reports ABC News: Richard Branson's rocketship company announced the Federal Aviation Administration's updated license on Friday. It's the final hurdle in Virgin Galactic's yearslong effort to send paying passengers on short space hops. The company is working toward three more space test flights this summer and early fall, before opening the rocketship's doors to paying customers. The original plans called for company engineers to launch next to evaluate equipment, followed by a flight with Branson and then a science mission by Italian Air Force officers.

In the meantime, Blue Origin's Jeff Bezos earlier this month announced plans to ride his own rocket into space July 20 from Texas. Virgin Galactic officials acknowledged the growing chatter over whether Branson will try to beat Bezos into space. "Clearly, Sir Richard Branson's flight date has been subject to speculation for some time. At this time we do not have any further details on the upcoming flight dates," company spokeswoman Aleanna Crane wrote in an email...

More than 600 people already have reserved a ride to space. Tickets initially cost $250,000, but the price is expected to go up once Virgin Galactic starts accepting reservations again.

Robotics

Do Security Robots Reduce Crime? (nbcnews.com) 50

Westland Real Estate Group patrols its 1,000-unit apartment complex in Las Vegas with "a conical, bulky, artificial intelligence-powered robot" standing just over 5 feet tall, according to NBC News. Manufactured by Knightscope, the robot is equipped with four internal cameras capturing a constant 360-degree view, and can also scan and record license plates (as well as the MAC addresses of cellphones). But is it doing any good? As more government agencies and private sector companies resort to robots to help fight crime, the verdict is out about how effective they are in actually reducing it. Knightscope, which experts say is the dominant player in this market, has cited little public evidence that its robots have reduced crime as the company deploys them everywhere from a Georgia shopping mall to an Arizona development to a Nevada casino. Knightscope's clients also don't know how much these security robots help. "Are we seeing dramatic changes since we deployed the robot in January?" Dena Lerner, the Westland spokesperson said. "No. But I do believe it is a great tool to keep a community as large as this, to keep it safer, to keep it controlled."

For its part, Knightscope maintains on its website that the robots "predict and prevent crime," without much evidence that they do so. Experts say this is a bold claim. "It would be difficult to introduce a single thing and it causes crime to go down," said Ryan Calo, a law professor at the University of Washington, comparing the Knightscope robots to a "roving scarecrow." Additionally, the company does not provide specific, detailed examples of crimes that have been thwarted due to the robots.

The robots are expensive — they're rented out at about $70,000-$80,000 a year — but growth has stalled for the two years since 2018, and over four years Knightscope's total clients actually dropped from 30 to just 23. (Expenses have now risen — partly because the company is now doubling its marketing budget.)

There's also a thermal scanning feature, but Andrew Ferguson, a law professor at American University, still called these robots an "expensive version of security theater." And NBC News adds that KnightScope's been involved "in both tragic and comical episodes." In 2016, a K5 roaming around Stanford Shopping Center in Palo Alto, California, hit a 16-month-old toddler, bruising his leg and running over his foot. The company apologized, calling it a "freakish accident," and invited the family to visit the company's nearby headquarters in Mountain View, which the family declined. The following year, another K5 robot slipped on steps adjacent to a fountain at the Washington Harbour development in Washington, D.C., falling into the water. In October 2019, a Huntington Park woman, Cogo Guebara, told NBC News that she tried reporting a fistfight by pressing an emergency alert button on the HP RoboCop itself, but to no avail. She learned later the emergency button was not yet connected to the police department itself... [The northern California city] Hayward dispatched its robot in a city parking garage in 2018. The following year, a man attacked and knocked over the robot. Despite having clear video and photographic evidence of the alleged crime, no one was arrested, according to Adam Kostrzak, the city's chief information officer.
The city didn't renew its contract "due to the financial impact of Covid-19 in early 2020," the city's CIO tells NBC News. But the city had already spent over $137,000 on the robot over two years.
Government

On the Deaths of Two Unvaccinated Florida IT Workers (msn.com) 339

I sometimes talk about "the family of geeks" — how our shared experiences can bring us together.

But if that's true, there's been a death in the family.... Manatee County Administrator Scott Hopes, who is also an epidemiologist, said six unvaccinated employees, including five in the IT department, tested positive for the virus within a two-week period.

The two IT employees who died last week were identified in local media and obituaries as Mary Knight, 58, and Alphonso Cox, 53.

Hopes said that the one IT employee, 23, exposed to the virus who was vaccinated did not get infected. "This particular outbreak demonstrates the effectiveness, I believe, with the vaccine," he said to reporters Monday. "All of the cases were non-vaccinated. They were unvaccinated." He added in a news release, "Individual employees in the IT Department who were known to be fully vaccinated and who were in close proximity of those who were infected did not contract COVID-19."

But even with the outbreak, masks will remain optional for staffers returning this week, with unvaccinated workers being "encouraged but not required, to follow covid-19 prevention measures...." Manatee County, located in southwest Florida, has fully vaccinated 43 percent of its eligible population. The Manatee Board of County Commissioners repealed coronavirus safety requirements last month and strongly recommended that people visiting the County Administration Building "use their best judgment" to protect themselves from a potential spread of the virus...

When the second employee died Thursday, the decision was made to shut down the building the next day so it could be disinfected. "When you have that many cases, and you have a 40 percent fatality rate, you have to worry," Hopes said to Florida Politics. "I would prefer not to have any more employee funerals." Yet the county announced over the weekend that "face masks will be optional for the public and employees inside the facility...."

Funerals and celebration-of-life events for Knight and Cox are scheduled to take place later this week.

Thanks to Slashdot reader luis_a_espinal (a Florida-based software engineer) for sharing the story. Country administrator Hopes is concerned, reports the Sarasota Herald-Tribune, because "Of the first five cases, all were sick enough to be hospitalized or died. That's not the normal COVID variant that we saw last year." And yet... As officials work to control the outbreak, questions have been raised about how far the county can go to keep employees safe — including whether it can inquire about employees' vaccination status, since the recent victims so far have not been fully vaccinated... "We are allowed to ask," Hopes said. "But they don't have to tell us, and whatever their response is, we are not to ask any further." Manatee County School District General Counsel Mitch Teitelbaum said the school district had the same understanding of privacy laws...

[The county-owned seaport] Port Manatee had reported three new cases of COVID-19 on Monday, spurring fears that the virus was continuing to spread among the county's workforce. On Tuesday, port spokeswoman Virginia Zimmerman said the three cases had been an "aberration" and that there are not any additional cases to report. Zimmerman said the port does not inquire about employees' vaccination status, and that the port "encourages, but does not require, staff to be vaccinated."

While the county scrambles to mitigate the spread of the virus, Hopes said many county employees are grieving the loss of their coworkers.

"These weren't just colleagues," Hopes said. "These people have basically lived at work together for 20 years, and this happened quickly."

China

US Bans Import of Solar Panels From Chinese Company Accused of Forced Labor (msn.com) 190

The Washington Post reports that this week the U.S. government "banned the import of solar panels and other goods made with materials produced by a Chinese company that it accused of using forced laborers from China's Xinjiang region, a move likely to complicate the U.S. push toward clean energy." U.S. Customs and Border Protection issued a withhold release order Thursday barring silicon-based products from the company, Hoshine Silicon, which operates from plants in Xinjiang that have been connected to coercive state labor programs targeting Uyghurs and other minorities, as The Post reported on Thursday.

The order could have widespread impact on the solar industry, which is dominated by Chinese suppliers that source materials from Hoshine, the world's largest producer of metallurgical-grade silicon, a key raw material in solar panels. "Almost the complete solar industry is affected by Hoshine," said Johannes Bernreuter, a research analyst in Germany who studies the solar supply chain... By banning only Hoshine imports, CBP stopped short of targeting Xinjiang producers of another key solar ingredient, polysilicon. Those producers have also been connected to coercive labor programs targeting Uyghurs. In a note to investors, Height Securities described the ban "as a substantive but measured first shot across the bow" by the Biden administration, "which needs solar industry support" as it tries to balance rooting out forced labor in U.S. supply chains and an environmental agenda...

[I]ndustry experts said enforcement could be a challenge given the complexity of the solar supply chain and Hoshine's dominance in the industry. Hoshine has produced metallurgical-grade silicon for at least eight of the world's largest polysilicon makers, according to the company's public statements and annual reports. Analysts say that together these firms account for nearly all of the world's supply of solar-grade polysilicon. The move could also undermine U.S. hopes of cooperating with China on climate change, one of few areas of potential collaboration between the two countries increasingly at loggerheads over human rights and investigating the origin of the covid-19 pandemic... Industry experts say it would be safer for U.S. agents to assume all silicon products entering the United States from China contain at least some material sourced from Hoshine, whose metallurgical-grade silicon is used in a wide range of consumer products, including electronics, cars, chemicals and sealants...

The import ban was the most prominent of several measures the Biden administration took Thursday against China's solar-product suppliers. The Commerce Department also added several Chinese polysilicon producers to an export black list, which bars U.S. entities from exporting technology or other goods to the firms without first obtaining a government license.

Sci-Fi

As US Govt Releases UFO Report, 'X-Files' Creator Remains Skeptical (nytimes.com) 158

Space.com reports: The U.S. government needs some more time to get to the bottom of the UFO mystery. That's the main take-home message from the highly anticipated UFO report released Friday.

"The limited amount of high-quality reporting on unidentified aerial phenomena (UAP) hampers our ability to draw firm conclusions about the nature or intent of UAP," the report's executive summary states, using the military's now-preferred term for "UFO" (presumably because that older acronym has a lot of baggage attached to it).

Or, as CNET puts it, "all those sightings of bizarre things in the sky over the years fall into several categories, require more study and remain largely unexplained and unidentified." (Though they point out the Department of Defense's "UAP" Task Force reported eleven "documented instances in which pilots reported near misses...")

The report drew a response from Chris Carter, who created The X-Files, a TV drama about a government conspiracy hiding evidence of UFO's. Filming the show brought Carter in contact with real-world people who claimed they'd seen aliens, and he still thinks that when it comes to UFO, most of us are not quite there yet — but want to believe: The universe is just too vast for us to be alone in it. Carl Jung wanted to believe, as did Carl Sagan. Both wrote books on the subject... Can the new report, or any government report, give us clear answers?

I'm as skeptical now as I've ever been... [F]or me, the report on U.F.O.s was dead on arrival. Ordered up by a bipartisan group of legislators during the Trump administration, the interim report revealed nothing conclusive about U.F.O.s or their extraterrestrial origins. And the portions that remain classified will only fuel more conspiracy theories.

This is "X-Files" territory if there ever was any...

Government

Peter Thiel Turned a $6,000-a-Year Retirement Account Into a $5 Billion Tax Shelter (propublica.org) 315

Remember when ProPublica said they'd obtained the tax returns of some of America's richest people?

Now they're reporting that Peter Thiel turned a small retirement account — the kind meant to help middle class investors — "into a $5 billion tax-free piggy bank." Billionaire Peter Thiel, a founder of PayPal, has publicly condemned "confiscatory taxes." He's been a major funder of one of the most prominent anti-tax political action committees in the country. And he's bankrolled a group that promotes building floating nations that would impose no compulsory income taxes. But Thiel doesn't need a man-made island to avoid paying taxes. He has something just as effective: a Roth individual retirement account.

Over the last 20 years, Thiel has quietly turned his Roth IRA — a humdrum retirement vehicle intended to spur Americans to save for their golden years — into a gargantuan tax-exempt piggy bank, confidential Internal Revenue Service data shows. Using stock deals unavailable to most people, Thiel has taken a retirement account worth less than $2,000 in 1999 and spun it into a $5 billion windfall. To put that into perspective, here's how much the average Roth was worth at the end of 2018: $39,108... What's more, as long as Thiel waits to withdraw his money until April 2027, when he is six months shy of his 60th birthday, he will never have to pay a penny of tax on those billions....

While most Americans are dutifully paying taxes — chipping in their part to fund the military, highways and safety-net programs — the country's richest citizens are finding ways to sidestep the tax system. One of the most surprising of these techniques involves the Roth IRA, which limits most people to contributing just $6,000 each year... Yet, from the start, a small number of entrepreneurs, like Thiel, made an end run around the rules: Open a Roth with $2,000 or less. Get a sweetheart deal to buy a stake in a startup that has a good chance of one day exploding in value. Pay just fractions of a penny per share, a price low enough to buy huge numbers of shares. Watch as all the gains on that stock — no matter how giant — are shielded from taxes forever, as long as the IRA remains untouched until age 59 and a half. Then use the proceeds, still inside the Roth, to make other investments.

ProPublica argues Thiel's move alone "deprived the U.S. government of untold millions in tax revenue. Perhaps billions." But he's not the only multi-millionaire they found stashing vast sums into untaxed accounts:
  • Ted Weschler, a deputy of Warren Buffett at Berkshire Hathaway had $264.4 million at the end of 2018.
  • Hedge fund manager Randall Smith, whose Alden Global Capital has gutted newspapers around the country, had $252.6 million in his.
  • Warren Buffett, one of the richest men in the world and a vocal supporter of higher taxes on the rich: $20.2 million
  • Former Renaissance Technologies hedge fund manager Robert Mercer: $31.5 million

Earth

Effort To Protect Tasmanian Devils Devastates Island's Penguin Population (bbc.com) 52

Slashdot reader Thelasko quotes the BBC: A project to preserve endangered Tasmanian devils on a small island has backfired after the predators killed seabirds in large numbers, a conservation group says.

A small number of devils were shipped to Maria Island east of Tasmania, Australia, in 2012. The move aimed to protect the mammals from a deadly facial cancer that had driven them towards extinction. The devils have recovered since, but the island project has come at a cost... Citing a government survey, BirdLife Tasmania said a population of little penguins that numbered 3,000 breeding pairs in 2012 had disappeared from the island.

"Losing 3,000 pairs of penguins from an island that is a national park that should be a refuge for this species basically is a major blow," said Dr Eric Woehler, a researcher for the group.

Medicine

Report from Israel: About Half of Adults Infected With Covid-19 Delta Variant Were Fully Inoculated (msn.com) 212

Ran Balicer leads an expert Covid-19 advisory panel for the Israeli government. Friday he shared some troubling news with the Wall Street Journal: "The entrance of the Delta variant has changed the transmission dynamics," said Prof. Balicer, who is also the chief innovation officer for Israel's largest health-management organization, Clalit.

About half of adults infected in the outbreak of the Delta variant of Covid-19 in Israel were fully inoculated.

These so-called breakthrough cases — defined as positive Covid-19 test results received at least two weeks after patients receive their final vaccine dose — are broadly expected as the Pfizer vaccine is highly effective but not 100% foolproof, according to Mr. Balicer. Israeli health officials are optimistic that even if the variant does spread, evidence from countries such as the U.K. indicate the vaccine will prevent a large increase in severe illness and hospitalizations that plagued the country's health system in previous outbreaks. Israel has recorded only five severe cases in the past 10 days, Prof. Balicer said, but whether more will emerge is too early to tell....

Dr. Tedros Adhanom Ghebreyesus, director-general of the World Health Organization, said the worrisome variant is now present in 85 countries.

Several countries appear concerned that fully vaccinated people could still spread the Delta variant. Israel's government just reimposed safety measures (including an indoor-mask requirement), according to the Journal. And Sydney, Australia (the country's largest city, housing more than 5 million people) "will enter a hard two-week lockdown on Saturday night..." reports CNN, "as authorities try to contain a fast-spreading outbreak of the highly infectious Delta coronavirus variant." More than a million people in downtown Sydney and the city's eastern suburbs were already under lockdown due to the outbreak, but health authorities said they needed to expand that after more Covid-19 cases were recorded, with exposure sites increasing beyond the initial areas of concern.
Meanwhile, CNBC reports: The World Health Organization on Friday urged fully vaccinated people to continue to wear masks, social distance and practice other Covid-19 pandemic safety measures as the highly contagious delta variant spreads rapidly across the globe. "People cannot feel safe just because they had the two doses. They still need to protect themselves," Dr. Mariangela Simao, WHO assistant director-general for access to medicines and health products, said during a news briefing from the agency's Geneva headquarters. "Vaccine alone won't stop community transmission," Simao added. "People need to continue to use masks consistently, be in ventilated spaces, hand hygiene ... the physical distance, avoid crowding. This still continues to be extremely important, even if you're vaccinated when you have a community transmission ongoing."
CNN reports that the U.S. Centers for Disease Control and Prevention also "warned that there is a small chance a fully vaccinated person could still get infected if they're exposed." "Current data suggest that COVID-19 vaccines authorized for use in the United States offer protection against most variants currently spreading in the United States. However, some variants might cause illness in some people even after they are fully vaccinated," CDC spokesperson Jade Fulce told CNN in an email on Friday. While Covid-19 vaccines are effective, Fulce said no vaccine is "100% effective at preventing illness." And with millions of people getting vaccinated against the virus, some who are fully vaccinated "will still get sick if they are exposed," Fulce said.

"However, people with breakthrough infections may get less severely ill or have a shorter illness than they would have if they had not been vaccinated."

Security

Microsoft Says New Breach Discovered In Probe of Suspected SolarWinds Hackers (reuters.com) 23

An anonymous reader quotes a report from Reuters: Microsoft said on Friday an attacker had won access to one of its customer-service agents and then used information from that to launch hacking attempts against customers. The company said it had found the compromise during its response to hacks by a team it identifies as responsible for earlier major breaches at SolarWinds and Microsoft. Microsoft said it had warned the affected customers. "A sophisticated Nation-State associated actor that Microsoft identifies as NOBELLIUM accessed Microsoft customer support tools to review information regarding your Microsoft Services subscriptions," the warning reads in part. The U.S. government has publicly attributed the earlier attacks to the Russian government, which denies involvement.

After commenting on a broader phishing campaign that it said had compromised a small number of entities, Microsoft said it had also found the breach of its own agent, who it said had limited powers. The agent could see billing contact information and what services the customers pay for, among other things. "The actor used this information in some cases to launch highly-targeted attacks as part of their broader campaign," Microsoft said. Microsoft warned affected customers to be careful about communications to their billing contacts and consider changing those usernames and email addresses, as well as barring old usernames from logging in. Microsoft said it was aware of three entities that had been compromised in the phishing campaign. It did not immediately clarify whether any had been among those whose data was viewed through the support agent, or if the agent had been tricked by the broader campaign. Microsoft did not say whether the agent was at a contractor or a direct employee.

Sci-Fi

US Has No Explanation for Unidentified Objects and Stops Short of Ruling Out Aliens (nytimes.com) 187

According to The New York Times, citing a highly anticipated UFO report released on Friday, "The government still has no explanation for nearly all of the scores of unidentified aerial phenomena reported over almost two decades and investigated by a Pentagon task force, [...] a result that is likely to fuel theories of otherworldly visitations." From the report: A total of 143 reports gathered since 2004 remain unexplained, the document released by the Office of the Director of National Intelligence said. Of those, 21 reports of unknown phenomena, involving 18 episodes, possibly demonstrate technological capabilities that are unknown to the United States: objects moving without observable propulsion or with rapid acceleration that is believed to be beyond the capabilities of Russia, China or other terrestrial nations. But, the report said, more rigorous analysis of those episodes is needed. There is no evidence that any of the episodes involve secret American weapons programs, unknown technology from Russia or China or extraterrestrial visitations. But the government report did not rule out those explanations.

The nine-page document essentially declines to draw conclusions, announcing that the available reporting is "largely inconclusive" and noting that limited and inconsistent data created a challenge in evaluating the phenomena. The report said the number of sightings was too limited for a detailed pattern analysis. While they clustered around military training or testing grounds, the report found that that could be the result of collection bias or the presence of cutting-edge sensors in those areas. Government officials outlined a plan to develop, if additional funding is available, a better program to observe and collect data on future unexplained phenomena. [...] The government intends to update Congress within 90 days on efforts to develop an improved collection strategy and what officials are calling a technical road map to develop technology to better observe the phenomena, senior government officials told reporters on Friday. Officials said they would provide lawmakers with periodical updates beyond that.

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