Software guru McAfee says to seek asylum in Guatemala

GUATEMALA CITY (Reuters) – U.S. anti-virus software guru John McAfee, who is on the run from police in Belize seeking to question him in a murder probe, has crossed into Guatemala and said on Tuesday he will seek political asylum there.

McAfee has been in hiding for three weeks since police in Belize said they wanted to question him as “a person of interest” about the murder of fellow American Gregory Faull, with whom McAfee had quarreled.

McAfee smuggled himself and his girlfriend, Samantha, across the porous land border that Belize shares with Guatemala. He stayed at a hotel in a national park before heading for Guatemala City on Monday evening.

“I have no plans much for the future now. The reason I chose Guatemala is two-fold,” McAfee told Reuters by telephone from Guatemala’s Supreme Court, flanked by his lawyer, former attorney general and lawyer Telesforo Guerra.

“It is a country bordering Belize, it is a country that understands the corruption within Belize and most importantly, the former attorney general of the country is Samantha’s uncle and I knew that he would assist us with legal proceedings.”

McAfee has denied involvement in the murder and told Reuters on Monday he would not turn himself in. He posted repeatedly on his blog www.whoismcafee.com while on the run, describing how he would constantly change his disguise to elude capture.

On Tuesday, he appeared with his hair and goatee died black, and wearing a dark suit and tie – a far cry from the surfer-style blonde hair highlights, shorts and tribal-tattooed bare shoulders he sported in Belize.

“(Guerra) is now attempting to get political asylum for myself and for Sam. I don’t think there will be much of a problem. From here I can speak freely and safely,” McAfee said.

TECH GENIUS, “BONKERS”

McAfee says he believes authorities in Belize would kill him if he turned himself in for questioning. Belize’s prime minister has denied the claim and called the 67-year-old paranoid and “bonkers.”

On the Caribbean island of Ambergris Caye, where McAfee has lived for about four years, residents say he is eccentric, impulsive, erratic and at times unstable, with a penchant for guns and young women.

He would often be seen with armed bodyguards, pistols tucked into his belt, and McAfee’s neighbor had complained about the loud barking of dogs that guarded his exclusive beachside compound.

His run-in with authorities in Belize is a world away from a successful life in the United States, where he started McAfee Associates in 1989 and made millions of dollars developing the Internet anti-virus software that carries his name.

There was already a case against McAfee in Belize for possession of illegal firearms, and police had previously raided his property on suspicion he was running a lab to make illegal synthetic narcotics.

McAfee says he has been persecuted for refusing to donate money to politicians, that he loves Belize, and considers it his home.

Guatemala is a canny choice to seek refuge. It has long been embroiled in a territorial dispute with Belize. Guatemala claims the southern half of Belize and all of its islands, or cayes, rightfully belong to it. There is no extradition treaty between the two countries.

A Guatemalan government source said there was “no reason” to detain McAfee because there was no legal case against him pending in the country.

Harold Caballeros, Guatemala’s foreign minister, said his government was unaware of any arrest warrant and would study McAfee’s asylum request once presented, saying its success would “depend on the arguments.”

Guerra told Reuters McAfee would return to Belize once his situation in Guatemala was made legal, citing the fact he had crossed into the country illegally to avoid capture by police in Belize.

“He can go to the United States, there is no problem with that,” he added. “We have asked the U.S. embassy for support with our (asylum) request.”

He said the asylum request would be formally presented on Wednesday.

The U.S. Embassy in Guatemala City said in a statement McAfee would have to work within the country’s legal framework, but declined to elaborate. “The embassy does not comment on the actions of American citizens, due to privacy considerations.”

(Reporting by Simon Gardner and Gabriel Stargardter; Editing by Kieran Murray and Eric Walsh)

Internet News Headlines – Yahoo! News

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Cashing in on Gangnam Style's YouTube fame

SEOUL, South Korea (AP) — As "Gangnam Style" gallops toward 1 billion views on YouTube, the first Asian pop artist to capture a massive global audience has gotten richer click by click. So too has his agent and his grandmother. But the money from music sales isn't flowing in from the rapper's homeland South Korea or elsewhere in Asia.

With one song, 34-year-old Park Jae-sang — better known as PSY — is set to become a millionaire from YouTube ads and iTunes downloads, underlining a shift in how money is being made in the music business. An even bigger dollop of cash will come from TV commercials.

From just those sources, PSY and his camp will rake in at least $7.9 million this year, according to an analysis by The Associated Press of publicly available information and industry estimates. But for online music sales in South Korea, he'll earn less than $60,000.

Here's how it works.

YOUTUBE

"Gangnam Style" with its catchy tune and much imitated horse-riding dance is the most-watched video on YouTube ever.

The viral video has clocked more than 880 million YouTube views since its July release, beating Justin Bieber's "Baby," which racked up more than 808 million views since February 2010. PSY's official channel on YouTube, which curates his songs and videos of his concerts, has nearly 1.3 billion views.

TubeMogul, a video ad buying platform, estimates that PSY and his agent YG Entertainment have raked in about $870,000 as their share of the revenue from ads that appear with YouTube videos. The Google Inc.-owned video service keeps approximately half.

PSY and YG Entertainment also earn money from views of videos that parody his songs.

Google detects videos that use copyrighted content. Artists can have the video removed or allow it to stay online and share ad revenue with YouTube. In the last week of September when "Gangnam Style" had around 300 million views, more than 33,000 videos were identified by the content identification system as using "Gangnam Style."

But since YouTube can be accessed from all over the world, wouldn't Asia be responsible for a significant chunk of the $870,000? The countries with the second and third-highest views of the video are Thailand and South Korea.

"Ads rates vary depending on which country the video is played. Developed countries have higher ad rates and developing countries lower," said Brian Suh, head of YouTube Partnership in Seoul.

And the country with the most views of "Gangnam Style?" The United States.

LEGAL DOWNLOADS, CDs

"Gangnam Style" has been downloaded 2.7 million times in the U.S. and has been the No. 1 or No. 2 seller for most weeks since its debut, according to Nielsen SoundScan.

The song sells for $1.29 on Apple's iTunes Store, the market leader in song downloads. Apple generally keeps about 30 percent of all sales, so the PSY camp could be due more than $2.4 million.

How much PSY keeps and how much goes to his managers, staff and record label is unclear. South Korean industry insiders said PSY likely gets 70 percent and YG Entertainment 30 percent for U.S. downloads.

But earnings from downloads in PSY's homeland are far from an embarrassment of riches.

South Koreans pay less than $10 a month for a subscription to a music service that allows them to download hundreds of songs or have unlimited access to a music streaming service. That makes the cost of a downloaded song about 10 cents on average. The average price for streaming a song is 0.2 cent.

PSY's cut for downloads is 14 percent. That falls to 7.5 percent for streamed songs. Yes, 7.5 percent of 0.2 cent. And that's before PSY's "Gangnam Style" co-composer take his share. The biggest cut goes to his agent and online retailers.

According to South Korea's national Gaon Chart, "Gangnam Style" was downloaded more than 3.6 million times and streamed around 40 million times as of November. That adds up to a little more than $61,000.

It's likely the fast fading music CD industry generated even smaller revenue. PSY's 9 percent cut from sales of 102,000 CDs in South Korea would earn him $50,000 or more, according to an estimate by Kim Dong-hyun, a senior manager at Korea Music Copyright Association.

As for many other parts of Asia, illegal downloads and pirated CDS are so pervasive that only a small minority are willing to pay up for the legal versions.

TV COMMERCIALS

PSY has been jetting around the world, performing on shows such as "The X-Factor Australia" and NBC's "Today Show," but such programs usually cover travel costs and not much else, said Gary Bongiovanni, editor-in-chief of concert trade magazine Pollstar.

It is television commercials that are the big money spinner for the most successful of South Korea's K-pop stars. PSY has been popping up in TV commercials in South Korea for top brands such as Samsung Electronics and mobile carrier LG Uplus.

Chung Yu-seok, an analyst at Kyobo Securities, estimates PSY's commercial deals would amount to 5 billion won ($4.6 million) this year.

The money is cool. The products not so much. PSY is now the face of a new Samsung refrigerator and a major noodle company.

THE FAMILY

A fact little known outside South Korea is that PSY's father, uncle and grandmother own a combined 30 percent of DI Corp., a company which makes equipment that semiconductor companies use to make computer chips.

It's a stretch to plausibly explain how the success of "Gangnam Style" will boost DI's profits but that doesn't matter to the South Korean stock market. Perhaps inspired by the pure power of pop, DI shares surged eightfold from July after PSY's hit reached No. 2 on the Billboard Hot 100 and No. 1 on the U.K. singles chart.

It was time to cash in for PSY's grandmother, who sold 5,378 shares for about $65,000.

The share price has fallen since then but is still about double what it was before the release of "Gangnam Style."

PSY's agent YG Entertainment has also done well. Its share price is up about 30 percent since mid-July. The value of CEO Yang Hyun-suk's stake has swelled to about $200 million, making him among the richest in South Korea's entertainment industry.

THE FUTURE

The question now hanging over PSY is whether he will replicate the blockbuster success of "Gangnam Style" or end up remembered as a one-hit wonder.

"When this slows down, what comes next for PSY?" said Nielsen analytics vice president David Bakula. "Is it the evolution of a new musical style, something audiences are going to be craving en masse, or is it something that's just a passing fancy?"

Analysts say "Gangnam Style" alone will not be enough to propel PSY into the ranks of musicians such as Adele and may not even be enough to make him the top-grossing K-pop star. That will depend largely on his upcoming album, which PSY said will be released in March.

___

Ryan Nakashima contributed to this report from Los Angeles.

Youkyung Lee can be reached via Twitter: www.twitter.com/YKLeeAP

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The New Old Age Blog: For the Old, Less Sense of Whom to Trust

There’s a reason so many older people fall for financial scams, new research suggests. They don’t respond as readily to visual cues that suggest a person might be untrustworthy, and their brains don’t send out as many warning signals that ignite a danger ahead gut response.

The research, published Monday in the Proceedings of the National Academy of Sciences, is the first to show that older adults’ vulnerability to fraud may be rooted in age-related neurological changes.

Specifically, researchers from the University of California, Los Angeles, found that an area in the brain known as the anterior insula was muted when older people looked at photographs of suspicious-looking individuals. This part of the brain activates gut-level feelings that help individuals interpret the reliability of other people and assess potential risks and rewards associated with social interactions.

In one part of the U.C.L.A. study, both younger and older adults were asked to evaluate the trustworthiness of people portrayed in 60 photographs while undergoing brain scans. When the younger adults (21 altogether, from 23 to 46 years of age) labeled a person “not trustworthy,” their anterior insulas lit up. But this wasn’t true for older adults (23 altogether, age 55 to 80).

“The warning signals that convey a sense of potential danger to younger adults just don’t seem to be there for older adults,” said Shelley Taylor, the lead researcher and a psychology professor at U.C.L.A.

In another part of the study, researchers asked 119 older adults (55 to 84 years old) and 24 younger adults (age 20 to 42) to rate people in photographs as trustworthy, neutral or untrustworthy. Signs they were potentially untrustworthy included people with insincere smiles, averted gazes and postures that “leaned away” rather than toward the camera, among others, Dr. Taylor said.

Older adults were equally adept at identifying people judged to be trustworthy or neutral, but much more likely to miss signs of those who may be untrustworthy and view suspicious-looking people as approachable, the study found.

“We believe what’s going on is that older adults have a bias toward positive emotional experience and this keeps them from recognizing negative cues,” Dr. Taylor said.

This so-called “positivity effect” has been documented through research by Laura Carstensen, a professor of psychology and public policy at Stanford University, and it explains why older adults are, on the whole, happier than younger adults.

Asked to comment about the new study, Ms. Carstensen said in an e-mail that it was “very well done,” and observed that for older adults, “there are likely many benefits of looking on the bright side. However, there are likely some contexts where looking away from the negative and focusing on the positive is not good,” including financial scams and fraud.

Alexander Todorov, a professor of psychology at Princeton University, called the findings “interesting,” but warned that “there is an implicit assumption that these trustworthiness evaluations based on facial appearance are accurate. This is far from clear.”

Dr. Taylor became acutely aware of financial fraud practiced on the elderly almost 20 years ago when her elderly father handed $17,000 to two men who approached him on the street and walked with him to his bank.

“I got descriptions of the two men from someone who lived nearby — one had few teeth, both were dressed in a slovenly manner, and they’d been seen sleeping in doorways and were using the drug rehab center nearby,” the professor explained in an e-mail.

In other words, they would have been viewed skeptically by most people, but weren’t seen in that light by Dr. Taylor’s father.

Statistics show that financial exploitation of the elderly is on the rise. According to a study published last year by the MetLife Mature Market Institute and the National Committee for the Prevention of Elder Abuse, elder financial abuse — everything from fraudulent sweepstakes to bank accounts emptied out by guardians — totaled $2.9 billion in 2010, a 12 percent increase from only two years before.

Earlier this year, the Government Accountability Office weighed in on the issue, noting the inadequacy of existing safeguards and calling for a new national strategy to address the problem.

On Tuesday my colleague Paula Span wrote about a just-published consumer guide, “Protect Your Pocketbook,” intended for older adults and families who wanted to understand what put them at risk, how to prevent fraud, and where to turn for help.

As for Dr. Taylor, she advises that seniors never agree on the spot to a phone offer or a pitch from a door-to-door salesman. “Either hang up or wait and get someone else involved in your life to evaluate what’s being presented,” she said.

With financial fraud, almost half the time seniors end up being taken in by a caretaker or someone posing as a friend. “Make absolutely sure that you’ve carefully checked out the people taking care of an older relative,” or any “surprising new friend” that you’ve never heard of before that’s now on the scene, she tells family members.

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Netflix buys exclusive rights to Disney movies

Netflix Inc. has acquired exclusive U.S. rights to movies from Walt Disney Studios in a deal that catapults the Internet video-on-demand service into direct competition with pay TV giants such as HBO and Showtime.

The three-year agreement takes effect in 2016 and is a blow to the pay channel Starz, which currently has the rights to broadcast Disney movies, including its Pixar animated films and Marvel superhero pictures, about eight months after they are released in theaters.

Starz's sole remaining movie provider is now Sony Pictures. That partnership ends in 2016.

VIDEO: Disney buys Lucasfilm - Mickey meet Darth Maul

Disney has also agreed to give Netflix nonexclusive streaming rights to more of its older titles — including "Dumbo," "Pocahontas" and "Alice in Wonderland" — starting immediately.

Netflix's chief content officer, Ted Sarandos, called the deal "a bold leap forward for Internet television."

"We are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," he said.

Netflix stock soared on the news, rising $10.65, or 14%, to $85.65.

Shares in Starz's parent company, Liberty Media Corp., fell $5.49, or 5%, to $105.56.

Currently, Netflix has nonexclusive rights to movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer via a deal with pay channel Epix, as well as an array of library titles from other studios. Its only exclusive movie rights come from independent studios such as Relativity Media and DreamWorks Animation. It also has a wide variety of television reruns.

Sarandos and Netflix Chief Executive Reed Hastings have long said the company wanted to get exclusive pay TV rights to films from one of Hollywood's six major studios to boost its online entertainment service.

PHOTOS: Disney without Pixar

However, Hastings has also at times downplayed the importance of new movies. Netflix previously had streaming rights to Disney and Sony movies via a deal with Starz. In January, investors expressed their concerns that the pending disappearance of those movies would hurt the service. Hastings said in a letter to investors that Disney films accounted for only 2% of domestic streaming and the loss would not be felt.

Since then, though, the Disney movie slate has become more attractive. At that time, Netflix did not have access to movies from Disney's Marvel superhero unit or the "Star Wars" titles from its pending acquisition of Lucasfilm Ltd.

The end of the Starz agreement accelerated a trend that has seen Netflix evolve into a television company, with reruns of shows such as "Mad Men" accounting for about two-thirds of the content streamed by users.

With several original programs launching next year, including the Kevin Spacey political drama "House of Cards," and a direct connection to a growing number of Internet-enabled televisions, Netflix is on the verge of standing on par with many TV networks.

Netflix charges $8 a month for its streaming service, while premium cable networks such as HBO cost $13 to $18 a month, and that's on top of a monthly bill for other channels that typically exceeds $50. It remains to be seen whether the addition of Disney products and more original programming could lead Netflix to increase its price.

PHOTOS: Hollywood back lot moments

The Netflix spending spree could continue, with Sarandos telling Bloomberg News on Monday that his company would bid for rights to Sony movies when its Starz deal expires.

Netflix might have a tougher time wresting away the rights to Warner Bros., 20th Century Fox or Universal Pictures releases from their current deals with HBO, which like Warner is part of Time Warner Inc. Paramount, Lionsgate and MGM are almost certain to stick with Epix, of which the trio are co-owners.

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Chino Hills seeks to close home used by pregnant Chinese women

A Chino Hills residence allegedly housing women from China who want to give birth to U.S.-citizen children is on the verge of being shut down by the city after complaints about traffic and a sewage spill.

The home is on a hilltop at the end of a long driveway on Woodglen Drive, an area zoned for single family houses. City officials have issued a cease and desist order, alleging that the site is being used as a hotel in a rural residential zone. They plan to take the property owner to court.

"Who the customer base is, is not our concern," said city spokeswoman Denise Cattern. "Our concern is that it's a hotel."

A website that city officials believe is associated with the business describes a full range of services, from shopping trips for pregnant women to assistance obtaining American passports for newborns.

A 30-day stay at the Chino Hills facility, along with a month of prenatal care, costs $10,500 to $11,500, according to the Chinese-language website, www.asiamchild.com.

Asiam Child is based in Shanghai, with branches in Anhui province and Nanjing, the website says.

The property owner, Hai Yong Wu, did not return a call seeking comment. A man who left the hotel in a black BMW on Monday afternoon would not speak to reporters.

So-called birth tourism appears to be an active but largely under-the-radar industry in Southern California. One local Chinese phone book has five pages of listings for birthing centers, where women from China and Taiwan stay for a month or so before going home with their U.S.-citizen babies. When the children get older, they may return here to study, perhaps paving the way for the rest of the family to immigrate more easily.

In San Gabriel last year, code enforcement officials shut down a facility where about 10 mothers and seven newborns were staying.

Federal immigration officials say there is no law prohibiting pregnant women from entering the U.S. But obtaining a visa through fraud would be a crime, said Virginia Kice, a spokeswoman for U.S. Immigration and Customs Enforcement.

Chino Hills officials have notified federal authorities about the residence. Kice said she could not confirm whether ICE is investigating.

Neighbors report seeing groups of pregnant women walking along the quiet cul de sac. Cars from the residence sometimes drive down the street at unsafe speeds, they said.

In addition to the single-family zoning violation, the city has cited the owner for allegedly constructing additional rooms without a permit. A sewage spill estimated at 2,000 gallons also prompted a cease and desist order.

"It would be nice to have my neighborhood back. It was a quiet little street," said neighbor Sonya Valez.

On Saturday, a group called Not in Chino Hills staged a street-corner protest against the site.

"They go back," said Rossana Mitchell, a co-founder of the group. "They don't pay taxes, they don't assimilate."

cindy.chang@latimes.com

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Court upholds $319M verdict in 'Millionaire' case

LOS ANGELES (AP) — A federal appeals court on Monday upheld a $319 million verdict over profits from the game show "Who Wants to Be a Millionaire" and rejected Walt Disney Co.'s request for a new trial.

A jury decided in 2010 that Disney hid the show's profits from its creators, London-based Celador International. The ruling Monday by a three-judge panel of the 9th U.S. Circuit Court of Appeals found no issues with the verdict or with a judge's rulings in the case.

"I am pleased that justice has been done," Celador Chairman Paul Smith said in a statement.

Disney did not immediately comment on the decision.

The ruling comes more than two years after the jury ruled in Celador's favor after a lengthy trial that featured testimony from several top Disney executives. The company sued in 2004, claiming Disney was using creative accounting to hide profits from the show, which first ran in the United States from August 1999 to May 2002 and was a huge hit for ABC.

The jury found that Celador was owed $269.2 million, and a judge later added $50 million in interest to the judgment.

The appeals court determined the verdict was not "grossly excessive or monstrous" and that it was not based on speculation or guesswork.

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The New Old Age Blog: On the Alert for Fraud

Unlike some forms of elder abuse, financial exploitation leaves no visible scars. It is under-reported and hard to prosecute. Adding to the tangled dynamics, the abuser is frequently a family member, increasing the victim’s humiliation and denial.

Better by far to try to prevent financial abuse before it wipes out an older person’s assets and hopes for a secure retirement. Though this has proved easier in theory than in practice — most authorities believe financial exploitation and abuse is actually increasing — vigilance represents a crucial first step.

The National Center on Elder Abuse and the Eldercare Locator (the federal service that helps older adults and caregivers find local programs and agencies) have just published “Protect Your Pocketbook,” a brief consumer guide for families and their older relatives. It maps out risk factors, warning signals and prevention strategies and tells where to turn for help.

You can download it from the Web  or order it online through the Eldercare Locator Web site. Or you can call the Locator at 1-800-677-1116 and ask to have a copy mailed to you.

Holidays, when so many adult children head “home,” tend to spur campaigns of this sort: attempts to integrate potentially painful conversations and questions with feasts and gifts.

I have always wondered about the timing of these discussions — first the pies, then the questions about unexplained bank withdrawals and credit card bills? But it is true that our elders can sound dandy during weekly phone calls, then surprise us with their frailty and their struggles when we are there in person to witness them.

Financial abuse, which I have written about before (see scam prevention advice here, along with a sad story), is only part of the picture, but it is a vital issue.

Apart from the advice in the brochure, we would appreciate hearing from readers who have tackled this problem and can tell us what has worked and what hasn’t.

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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A new brand of cyber security: hacking the hackers

WASHINGTON — As head of the FBI's cyber crimes division, Shawn Henry often had to deal with exasperated company executives after his agents informed them that their networks had been hacked and their secrets pilfered.

"By whom?" the company officials would ask. "What have they taken? Where did it go?"

"Sorry," Henry's agents had to reply, "that's classified."

Even though the FBI in many cases had evidence the attacker had been backed by a foreign intelligence agency, agents couldn't disclose it because the U.S. government believed doing so could compromise top-secret sources and methods.

Henry, 50, decided this year that such a dichotomy shouldn't put companies at such a disadvantage. So after 24 years of service, he left the FBI to become president of CrowdStrike, an Internet security start-up in Irvine.

His new mission: to make life difficult for hackers trying to attack American institutions.

CrowdStrike is at the forefront of a new business model for cyber security, one that identifies sophisticated foreign attackers trying to steal U.S. intellectual property and uses the attackers' own techniques and vulnerabilities to thwart them.

The firm is marketing itself as a private cyber intelligence agency, staking out networks to catch infiltrators, assembling dossiers on hackers and fooling intruders into stealing bogus data.

In the process, the firm has waded into a debate about how far companies should go in defending themselves from cyber attack.

"The traditional way of trying to defend your network is just not going to cut it. You have to do something different," said Irving Lachow, who directs the Program on Technology and National Security at the Center for a New American Security.

"One way is to engage the adversary. CrowdStrike represents a new breed of company that is focused on doing exactly that," he said.

When somebody is shooting at you, "you don't ask, 'Is that a 9-millimeter or a .45,'" said CrowdStrike Chief Executive George Kurtz. "You ask: 'Who is shooting at me and why are they shooting at me?'"

The attackers often breach company networks using a tactic known as spear phishing, a practice that gets an employee to download a malware file by disguising it, for example, in an email purporting to be from someone the worker knows. Firewalls and anti-virus software are almost useless against such techniques.

So CrowdStrike uses decoys to lure hackers into a controlled environment so investigators can watch and trace the attack. Sometimes the company feeds hackers false information, as in a case recently when a client was entering negotiations in China and expected to be hacked.

CrowdStrike, which employs Chinese linguists and former U.S. government cyber warriors, also has identified Chinese hackers using clues in their malware. It then profiles them — complete with real names and photos — using information gathered from a variety of sources.

That has helped the company, for example, identify a Chinese hacker who targets financial institutions and tends to seek merger and acquisition information. The company assigned the hacker a code name, Capital Panda, in the profile.

Profiles enable a more targeted defense by helping CrowdStrike know when an attacker is likely to strike, how he communicates, what malware he uses and how he tries to take the stolen data.

Kurtz, a former chief technology officer at security firm McAfee Inc., started CrowdStrike in February with fellow McAfee alum Dmitri Alperovitch and $26 million in financing from private equity firm Warburg Pincus.

Alperovitch rose to prominence last year when he wrote a white paper on what he called Operation Shady Rat, a series of state-sponsored cyber penetrations of more than 70 government agencies, companies and institutions. He didn't say publicly the intrusions came from China, but that was obvious to other experts.

China denies engaging in cyber espionage. U.S. intelligence officials said hackers sponsored by China and, to a lesser extent, Russia, are responsible for what Gen. Keith B. Alexander, director of the National Security Agency, has called "the greatest transfer of wealth in history" by siphoning bid documents, formulas, business plans and other intellectual property from Western companies.

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San Diego mayor leaves office with his legacy intact

SAN DIEGO — On his last full day as mayor of San Diego, Jerry Sanders did something Sunday that took him back four decades.

He rode with a police officer assigned to the 2 p.m. to midnight shift patrolling downtown. In the mid-1970s, fresh out of San Diego State, Sanders was a rookie officer assigned to that same beat.

"I came in in a police car, I'm going out in a police car," Sanders, 62, had said with a laugh last week as he stood outside one of his signature achievements of his seven years as mayor: a new central library under construction.

A Republican in a city where Democrats hold a voter-registration edge and control the City Council, Sanders, who rose from beat cop to chief in his 26 years at the Police Department, has governed through relentless attempts at consensus and a deceptively low-key style that leans on sharing credit whenever possible.

Ask about the library project and Sanders says, "The library commission wouldn't take no for an answer."

Ask about his role in calming civic nerves during the 2007 wildfire that raged for days and destroyed hundreds of homes — a mayoral effort that led the local newspaper to compare him favorably to Rudy Giuliani after 9/11 — and Sanders mentions the help provided by two county supervisors.

Ask about his management style and he says he prefers to hire good people and then stay out of their way, but some who have worked with him point out that he watches even tiny details of important efforts.

Outside San Diego, Sanders may be remembered best for breaking with the GOP to endorse same-sex marriage, explaining that his daughter, a lesbian, should be free to marry someone she loves. He then campaigned against Proposition 8 and later went to Washington to join other — mostly Democratic — mayors to lobby Congress to repeal a law that defines marriage as between a man and woman.

In San Diego, his legacy includes guiding the city back from the precipice of its worst financial debacle in history through a series of politically controversial cutbacks in city services and then hard bargaining with labor unions that led to a salary freeze, reduction in health benefits for retirees, increased payments by employees to the pension fund and the end to guaranteed-benefit pensions for new hires.

Although the city's financial future, like that of other cities, remains uncertain, San Diego appears to be ahead of other cities, including Los Angeles, in dealing with the common problem of spiraling pension deficits.

"He did steady the local ship of state," said Steve Erie, political science professor at UC San Diego. "Whether he actually turned it around is another question."

Sanders lists the new library, the planned expansion of the waterfront convention center and the plan to remodel the core of Balboa Park as among his proudest achievements. All three faced opposition; the convention center and park plans are being fought in court.

"This isn't a hard city to govern," he said, "but it's very hard to get consensus."

One of his disappointments is the failure to put together a project to build a new stadium for the San Diego Chargers and keep the NFL franchise from leaving the city.

The Chargers issue, in which the public wants the team to remain in San Diego but does not want to spend public money for a stadium, will now be left to Sanders' successor, Bob Filner, 70, a Democrat who left a safe seat in Congress to run to replace the termed-out Sanders. Filner will be sworn into office Monday.

Although he was reelected easily in 2008, voters in 2010 turned down his request for a half-cent boost in the sales tax, which Sanders said was desperately needed to avoid additional cuts in city services. "We gave voters the opportunity," he said.

In style, Filner and Sanders are opposites: Filner is confrontational; Sanders usually isn't. Sanders appears without ego; Filner is different.

"I tell Bob that he's the most obnoxious individual I've met and that's what I like about him," Sanders said.

Lest anyone think of him as a rhetorical milquetoast, it bears remembering that, during the 2008 reelection campaign, he turned to an opponent and directed a two-word obscenity at him.

Sanders was an anomaly as a politician when he was elected in 2005 to replace Dick Murphy, who resigned amid criticism over the pension deficit. Sanders had never before run for public office, although he was a well-known public figure after six years as the highly regarded police chief.

As chief, he expanded the city's "community oriented policing" style that emphasized close collaboration between the police and neighborhood groups.

Retiring from the city in 1999, he served as chief executive of the local United Way and as president of the local Red Cross chapter — arriving when both organizations were beset by personnel turmoil and financial problems.

Sanders and his wife, Rana Sampson, will soon depart for a long-delayed vacation to Italy. Sampson retired Friday as vice president for development and marketing for the San Diego Center for Children, which provides educational and mental health services for at-risk youth.

Upon the couple's return to San Diego, Sanders will become president and chief executive of the San Diego Regional Chamber of Commerce.

But first was that final shift as a beat cop downtown, asking people what help they need and providing a reassuring presence that says San Diego is a good place to live.

"Best job I ever had," Sanders said.

tony.perry@latimes.com

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Jackson's 'Bad' jacket, costumes sold at auction

LOS ANGELES (AP) — Costumes worn by Michael Jackson commanded hundreds of thousands of dollars at auction, and Lady Gaga was among the collectors.

Gaga tweeted Sunday that she bought 55 pieces in the sale administered by Julien's Auctions and said she plans to keep the items "archived and expertly cared for in the spirit and love of Michael Jackson, his bravery and fans worldwide."

Auctioneer Darren Julien said the jacket Jackson wore during his "Bad" tour fetched $240,000. Two of Jackson's crystal-encrusted gloves sold for more than $100,000 each, as did other jackets and performance costumes.

The auction featuring the collection of Jackson's longtime costume designers Dennis Tompkins and Michael Bush raised more than $5 million. Some proceeds benefited Guide Dogs of America and Nathan Adelson Hospice of Las Vegas.

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Online:

www.juliensauctions.com

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