Hollywood hacker honed his skills for years

LOS ANGELES (AP) — Long before Christopher Chaney made headlines by hacking into the email accounts of such stars as Scarlett Johansson and Christina Aguilera, two other women say he harassed and stalked them online.

The women, who both knew Chaney, say their lives have been irreparably damaged by his actions. One has anxiety and panic attacks; the other is depressed and paranoid. Both say Chaney was calculated, cruel and creepy: he sent nude photos they had taken of themselves to their family members.

Their accounts as cybervictims serve as a cautionary tale for those, even major celebrities, who snap personal, and sometimes revealing photos.

Chaney, 35, of Jacksonville, Fla., is set to be sentenced Monday and could face up to 60 years in prison after pleading guilty to nine felony counts, including wiretapping and unauthorized access to a computer, for hacking into email accounts of Aguilera, Johansson and Mila Kunis.

Aguilera said in a statement that although she knows that she's often in the limelight, Chaney took from her some of the private moments she shares with friends.

"That feeling of security can never be given back and there is no compensation that can restore the feeling one has from such a large invasion of privacy," Aguilera said.

Prosecutors said Chaney illegally accessed the email accounts of more than 50 people in the entertainment industry between November 2010 and October 2011. Aguilera, Kunis and Johansson agreed to have their identities made public with the hopes that the exposure about the case would provide awareness about online intrusion.

The biggest spectacle in the case was the revelation that nude photos taken by Johansson herself and meant for her then-husband Ryan Reynolds were taken by Chaney and put on the Internet. The "Avengers" actress is not expected to attend the hearing, but she has videotaped a statement that may be shown in court.

Some of Aguilera's photos appeared online after Chaney sent an email from the account of her stylist, Simone Harouche, to Aguilera asking the singer for scantily clad photographs, prosecutors said.

Chaney forwarded many of the photographs to two gossip websites and another hacker, but there wasn't evidence he profited from his scheme, authorities said.

For the two women, who were only identified in court papers by their initials, their encounters with Chaney went from friendly to frightening.

One of the women, identified by the initials T.B., said she first met Chaney online in 1999 when she was 13 years old. She began talking with a girl named "Jessica" that later turned out to actually be Chaney.

Chaney figured out his victims' email passwords and security questions and set a feature to forward a copy of every email they received to an account he controlled.

The woman said that in February 2009 her friends contacted her and let her know that several nude photos of her were uploaded to a public gallery. A year later, Chaney sent a link to a photo-sharing website he created and had her nude pictures sent to her father.

She said she spends several hours a week monitoring the Internet for her personal information and breaks into a sweat whenever she receives a Google alert email notifying her that her name has been mentioned online.

In her letter to U.S. District Judge S. James Otero, she said she thinks Chaney won't stop and she still feels like he has control over her reputation, relationships and career.

Chaney was arrested in October 2011 as part of a yearlong investigation of celebrity hacking that authorities dubbed "Operation Hackerazzi." Chaney's computer hard drive contained numerous private celebrity photos and a document that compiled their extensive personal data, according to a search warrant.

Chaney has since apologized for what he has done, but prosecutors are recommending a nearly six-year prison sentence for him. They also want him to pay $150,000 in restitution, including about $66,000 to Johansson.

The second woman, identified in court papers only as T.C., said she was a close friend of Chaney's for more than a decade. As early as 2003 she noticed her passwords were being reset and email she hadn't looked at had been read by someone. She also said Chaney forwarded an invitation to an online photo gallery to her brother, who eventually saw naked pictures of her.

The woman said the night before she got married, Chaney deleted her email account and she was unable to correspond with a notary until she created a new email address.

In her letter to the judge, the woman said she's been broken by the physical and emotional toll and can no longer recall what it was like to have a private life.

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The New Old Age Blog: In the Middle: Why Elderly Couples Fight

George and Gracie (let’s call them that because using their real names would make them even unhappier than they already appear to be) are in their 80s and married for more than 65 years. Until recently they seemed to ride the waves that are inevitable in any marriage that spans nearly seven decades; through good and bad, they were partners and best friends.

But lately — ever since her hospitalization and his fall — they have been arguing more bitterly than usual (“Do you have to make such a mess in the kitchen?”), criticizing each other (“Why haven’t you dealt with the insurance company yet?”), withdrawing from each other, and generally making each other more miserable, more often than ever before.

This kind of degenerative relationship is not uncommon among the elderly in even the happiest marriages, marriage therapists and geriatricians said. But that is small comfort to either the couple in the middle of the maelstrom, or the children who care for them, as evidenced by a number postings on caregiver blogs. As some of the children have wondered there: “Why can’t we all just get along?”

Therapists and others who work with the elderly said the first step to addressing the problem is understanding where it came from.

“A key question is whether the marital bickering is part of a lifelong marital style or a change,” said Dr. Linda Waite, director of the Center on Aging at NORC/University of Chicago. Is it new behavior – or just new to the grown children who are suddenly so deeply enmeshed in their parents’ lives that they are only now noticing that something is amiss?

How much of the problem is really just the marriage style? “Some couples like to fight and argue – it keeps their adrenaline going,” said Dr. Nancy K. Schlossberg, professor emerita of counseling psychology at the University of Maryland and author of “Overwhelmed: Coping with Life’s Ups and Downs.”

Sometimes the best judges of whether there is a problem are outsiders, said Dr. William Dale, chief of geriatrics at the University of Chicago Geriatrics Medicine. Pay attention if someone says, “‘Gee, Mom seems more argumentative or withdrawn than the last time I saw her,’” Dr. Dale advised.

If the tone or severity of the marital tensions seem new, then it is important to find out why. The causes could be mental or physical, doctors say.

On the mental front, increased anger and fighting could be one of the first signs of mild cognitive impairment, a precursor of dementia or Alzheimer’s, in one or both of the spouses, said Dr. Lisa Gwyther, director of the Duke Center for Aging Family Support Program and Associate Professor in the Department of Psychiatry and Behavioral Sciences.

Dr. Dale concurs: “There is good evidence that the earliest signs of cognitive impairment are often emotional changes” — anger, anxiety, depression — “rather than cognitive ones” — memory, abstract thought.

But these early signs of cognitive decline can be so subtle that neither the spouses themselves, or their grown children, recognize them for what they are, Dr. Gwyther said. So husband and wife blame each other for the changes and allow feelings of hurt and resentment to grow.

Withdrawing from activities that used to give them pleasure can be a telltale sign of mild cognitive impairment – and can trigger anger and arguments.

“In one couple, the husband just didn’t want to participate in the holidays — the wife got angry and said he was being lazy and stubborn,” said Dr. Gwyther. But the truth was that his cognitive decline made all the activity overwhelming, and he didn’t want anyone to know that he was anxious about not remembering everyone’s names and embarrassing himself.

Suspicion and paranoia can also accompany mild cognitive decline and precipitate distrust and hurtful accusations. Dr. Gwyther recalled another woman who “called her daughter frantic because she said her husband dropped her at her chemo appointment, went to park the car, and didn’t return to get her.” The woman couldn’t imagine that her husband could possibly have lost his sense of time and direction, Dr. Gwyther added. She took it personally, complaining to her daughter that “your father doesn’t seem to care any more.”

Dr. Dale told of a spouse who accused her mate of infidelity because “she was convinced that when he was out grocery shopping he was really having an affair.”

Hoarding, an early symptom of mild cognitive impairment, can also create tension in a marriage. (For new treatments, see this recent post by my colleague Paula Span.)

When one couple came to a counseling session with Dr. Norman Abeles, emeritus professor of psychology and former director of psychological clinic at Michigan State University, the hoarding spouse finally said, “she did it because she thought that they would run out of money, even though there was enough money to go around.” Dr. Abeles said that incident led to her diagnosis of mild cognitive impairment.

Adding to the confusion, mild cognitive impairment (M.C.I.) comes and goes. “There are good days and bad days, good hours and bad hours,” said Dr. Gwyther. “Alzheimer’s and dementia don’t start on Tuesday — it’s a slow insidious onset.” But the diagnosis is becoming more common: The Institute for Dementia Research and Prevention predicts that 1 in 6 women, and 1 in 10 men, who live past the age of 55 will develop dementia in their lifetime.

“Spouses find it difficult to know when their partner with M.C.I. is acting differently (usually badly) due to the advancing illness or due to ‘willful’ personality issues,” said Dr. Dale, citing a 2007 study in the journal Family Relations exploring the problems this can create for couples.

Blaming is often easier than understanding. Another of Dr. Gwyther’s patients was furious at her husband for not filing their taxes. “He’s a C.P.A.,” she said. “How could we owe back taxes?” It did not occur to her that he might be unable to handle that task — and was too frightened about his deteriorating mental focus to let her know.

But as harmful as mental decline can be for a marriage, it is just part of the equation. Physical ailments – even those that seem completely unrelated to marital relations – “can upset the equilibrium of the marriage,” according to a study in the Canadian Medical Association Journal.

“Most men get angry at what’s happened to them when they get ill, women get angry and scared when he’s not what he used to be — so they fight,” said Dr. Schlossberg.

Chronic illnesses, like diabetes, arthritis and heart disease, can have a strong negative effect on mood, said Dr. Waite, who will soon be publishing a study on the subject. Diabetes is so often accompanied by depression that, Dr. Waite said, “one of my colleagues argues that that it is even part of the disease.”

And ailments can have an effect on a couple’s sex life — which can compound the marital problems, doctors said.

“Diabetes brings on neuropathy,” said Dr. Waite. “That means touching and feeling in sex is not as rewarding.” Without the pleasures of affectionate touching — whether a passing hug at the sink, or more — tensions can build. That’s why, if a couple is having problems with sex, they are more likely to have problems in the relationship — and vice versa, according to a 2007 New England Journal of Medicine study of sex and health among older adults.

Other changes in circumstances — retirement, shifting roles, the loss of autonomy, disparities in health and abilities — can wreak havoc. Losing independence can feel like losing oneself — and if you don’t know who you are any more, how can you know how to relate to your spouse?

“Fighting may come from a misguided notion that you can regain power by asserting it over your spouse,” said Dr. Schlossberg, whose observations are echoed in a 1984 study in the Canadian Journal of Medicine. “It doesn’t work, it’s false power – but they’ll try anything.”

The sheer exhaustion that can come from being the caregiving spouse is also bound to “make them stressed and angry,” said Dr. Waite. Not to mention guilty and resentful — never a prescription for happy marital relations.

“Part of the trap for the caregiver is the idea that you have to do it all, and the guilt you feel when you cannot live up to it,” said Dr. Gordon Herz, a psychologist in private practice in Madison, Wisc. Not surprisingly, resentment can soon follow, Dr. Herz added, because it’s hard to admit to anyone that, “‘this is too much for me.’”

What can outside caregivers — children or other loved ones — do about these golden marriages on the rocks? Should they intervene — or butt out? And can marital therapy help — or is it too late to change?

Share your thoughts and experiences — and tomorrow we’ll try to provide some advice from experts.

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Diet Pepsi changing sweetener

Diet Pepsi is quietly changing its sweetener ahead of a major rebranding of the soft drink set for next month.

The change comes as PepsiCo Inc. looks to reinvigorate its namesake brands after losing market share to Coca-Cola Co. in recent years.

Cans of Diet Pepsi around the country now list a mix of two artificial sweeteners, a pairing that is commonly found in newer diet sodas. Previously, Diet Pepsi used only aspartame, which is sensitive to heat and breaks down more easily.

This summer, PepsiCo had declined to say whether it would go ahead with such a change after reports surfaced that it was testing the new sweeteners. Although the switch is intended only to help prevent the taste from degrading over time, companies are often sensitive to public perceptions that they might be tinkering with major brands. When reached for comment Sunday, PepsiCo spokeswoman Andrea Canabal said that Diet Pepsi with the new sweetener mix started hitting shelves in early December. She said the new mix will be more widely available in the coming weeks.

"It's not like a light switch. It'll start appearing as shelf space clears," she said. In January, the company is planning a major ad campaign, Canabal said, that will include a new logo with a heart and the theme "Love Every Sip."

The sweetener change will not be explicitly communicated in the ads.

In addition to aspartame, cans of Diet Pepsi found in New York, Omaha and the San Francisco Bay Area now list acesulfame potassium as an ingredient. The ingredient is often used in combination with other artificial sweeteners and can be found in a wide range of foods, including baked goods, chewing gum and gelatin desserts.

John Sicher, editor and publisher of industry tracker Beverage Digest, said the synergistic effect of mixing the two sweeteners is intended to help keep the drink's sweetening power at a constant level, making it taste fresh longer.

"A change in sweetener does not change the flavor," Sicher noted.

PepsiCo said in a statement Sunday that it was adding a "very small amount" of acesulfame potassium "to ensure consistency with every sip." The sweeteners used in Diet Pepsi vary depending on the region of the world.

The move to improve Diet Pepsi comes amid a broader push by PepsiCo to boost sales of its flagship soda. Under pressure from investors, Chief Executive Indra Nooyi this year announced that the company would step up investment in its flagship brands.

This year, PepsiCo has made several splashy moves, including a wide-ranging partnership with singer Beyonce and a multiyear deal with the National Football League to sponsor the Super Bowl halftime show. TV ads for Pepsi have also featured singer Nicki Minaj, New Orleans Saints quarterback Drew Brees, the boy band One Direction and international soccer stars, including Lionel Messi.

Whether the efforts will pay off with increased sales remains to be seen. In the latest quarter, PepsiCo said its soda volume in North America fell 2%, reflecting the broader decline in soft drink consumption that has plagued the industry since 1998. But the company noted that its share of the market had improved.

For now, Diet Pepsi remains the No. 7 carbonated soft drink with 4.9% of the market, according to Beverage Digest. That's down from 5.3% in 2000. Meanwhile, Diet Coke's share has increased in that time to 9.6% from 8.7%. Diet Coke, which still only uses aspartame, overtook regular Pepsi to become the No. 2 soda brand in 2010.

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In Connecticut, a mother coped silently with a troubled son

NEWTOWN, Conn. — On the outside, Nancy Lanza was the picture of contented motherhood: volunteering at her sons' school, gardening, keeping a picture-perfect home so well-ordered a neighbor described it as pristine.

Outside public view, say some who knew her, she had a struggle on her hands, and that was her son Adam: a brilliant but sometimes difficult boy.

Lanza battled with the school district over Adam and eventually quit her job, pulled him out of school and educated him at home, said her sister-in-law, Marsha Lanza.

"I know she had issues with the school. … In what capacity, I'm not 100% certain if it was behavior, if it was learning disabilities, I really don't know," Marsha Lanza told reporters. The investigation widened Saturday into the still-baffling shootings at Sandy Hook Elementary School in Newtown, Conn., with police releasing the identities of the 26 students and teachers they say Adam Lanza shot before turning the gun on himself.

His mother, police said, was shot at the family home before her son set out on his deadly rampage through the school.

"Adam, he was … definitely the challenge to the family in that house," Marsha Lanza said. "Every family has one. I have one. They have one. … But he was a very bright boy, he was smart."

Jim Leff, who knew Nancy Lanza casually through a friend, said he had been put off by an impression that she was high-strung, until he came to understand what she was trying to cope with as Adam's mother.

"Now that I've been filled in by friends about how difficult her troubled son … was making things for her, I understand that it wasn't that Nancy was overwrought about the trivialities of everyday life, but that she was handling a very difficult situation with uncommon grace," he wrote in a testimonial to her on his blog.

Neighbors said the Lanzas moved several years ago into the hilly neighborhood of graceful houses and pastoral views and immediately fit into the social scene, attending the picnic after the annual Labor Day parade and a rotating ladies' night at several homes.

By the accounts of some who knew her, Nancy Lanza, who grew up in rural New Hampshire, was comfortable using guns and kept several in the house.

Landscaper Dan Holmes said Lanza often talked about her gun collection, and about taking her sons target practicing. "One thing I will note is that she was a big, big gun fan," Leff wrote on his blog.

Police have said the three weapons found near Adam Lanza's body inside the school were legally purchased and registered to his mother.

Yet it appears that Adam may have tried to buy a weapon of his own before Friday's shootings. Just days before, two federal law enforcement officials say, the 20-year-old attempted to purchase a single "long gun" rifle from a Dick's Sporting Goods store in Canton, Conn., but was turned away because he did not want to wait for a required background check.

"He didn't want to wait the 14 days," said one source, declining to be identified because the case was still under review. "The sale did not take place."

Marsha Lanza, whose husband is the brother of Adam's father, Peter Lanza, said the entire family was trying to understand what happened. She said her sister-in-law never talked of being threatened by her son, or about any violence he had committed.

"And if he did, I know she wouldn't tolerate it," she said. "If he needed help, I know they would have gotten it for him.

"Because they were the type of parents — when they were married, as well as being separated — if the kids had a need, they would definitely fulfill it."

She said Nancy Lanza divorced in 2009 and was awarded the house and enough money — up to $12,450 a month in alimony, according to local news outlets that reviewed the divorce files — that she didn't have to work.

A law enforcement source said the couple were ordered to undergo parental counseling as a condition of their divorce, but another source familiar with the case said that is a standard condition of divorces in Connecticut involving a minor child.

Other Lanza family members emerged from seclusion Saturday, and, like Marsha Lanza, expressed disbelief.

"The family of Nancy Lanza shares the grief of a community and nation as we struggle to … comprehend the loss that we all share. ... On behalf of Nancy's mother and siblings, we reach out to the community… and express our heartfelt sorrow for their incomprehensible tragedy and loss of innocence that has affected so many," the family said in a statement.

It was read at a news conference by the sheriff of Rockingham County, N.H., where Nancy Lanza's brother is employed as a law enforcement officer.

Adam Lanza's father, Peter, also issued a statement.

"Our family is grieving along with all those who have been affected by this enormous tragedy. No words can truly express how heartbroken we are," it said. "We are in a state of disbelief and trying to find whatever answers we can. We too are asking why."

molly.hennessy-fiske@latimes.com

kim.murphy@latimes.com

richard.serrano@latimes.com

Hennessy-Fiske reported from Newtown, Murphy from Seattle and Serrano from Washington, D.C.

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A children's choir opens 'SNL' with 'Silent Night'

NEW YORK (AP) — "Saturday Night Live" made a rare departure from its comedic opening to pay tribute to the children and adults killed at a Connecticut elementary school.

Not known for treating anything seriously or tenderly, the show made a fitting exception during the first moments of its show Saturday. Rather than the usual comedic sketch, a children's choir appeared on camera and angelically sang "Silent Night," with the touching refrain, "Sleep in heavenly peace."

Then the members of the New York City Children's Chorus shouted out the NBC show's time-honored introduction: "Live from New York, it's 'Saturday Night!'"

It was the night's sole reference to the tragedy and struck just the right tone.

Later, the chorus returned to join musical guest Paul McCartney in a rendition of his "Wonderful Christmas Time."

Appearing in a sketch in an unbilled cameo, actor Samuel L. Jackson made a distinctive contribution of his own.

Pretending to be miffed at getting interrupted as a guest on the mock talk show "What Up with That?" Jackson said what sounded very much like an F-bomb, followed by the term sometimes shortened to "B.S."

Playing the host of "What Up with That?" Kenan Thompson looked startled by Jackson's vulgarities but kept going.

"C'mon, Sam. That costs money!" he quipped, cracking up the studio audience.

Moments after the show ended, Jackson tried to explain in a Twitter posting.

"I only said FUH," he insisted, adding that Thompson was supposed to cut him off with his second eruption, but "blew it!!"

Jackson's tweet was accompanied by a photo of himself looking mortified.

Besides Jackson, some of the stars dropping by for this special Christmas "SNL" included Alec Baldwin, Tom Hanks, Kristen Wiig, Jimmy Fallon and Tina Fey. The guest host was Martin Short.

___

Online: www.nbc.com

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Dr. William F. House, Inventor of Cochlear Implant, Dies

Dr. William F. House, a medical researcher who braved skepticism to invent the cochlear implant, an electronic device considered to be the first to restore a human sense, died on Dec. 7 at his home in Aurora, Ore. He was 89.

The cause was metastatic melanoma, his daughter, Karen House, said.

Dr. House pushed against conventional thinking throughout his career. Over the objections of some, he introduced the surgical microscope to ear surgery. Tackling a form of vertigo that doctors had believed was psychosomatic, he developed a surgical procedure that enabled the first American in space to travel to the moon. Peering at the bones of the inner ear, he found enrapturing beauty.

Even after his ear-implant device had largely been supplanted by more sophisticated, and more expensive, devices, Dr. House remained convinced of his own version’s utility and advocated that it be used to help the world’s poor.

Today, more than 200,000 people in the world have inner-ear implants, a third of them in the United States. A majority of young deaf children receive them, and most people with the implants learn to understand speech with no visual help.

Hearing aids amplify sound to help the hearing-impaired. But many deaf people cannot hear at all because sound cannot be transmitted to their brains, however much it is amplified. This is because the delicate hair cells that line the cochlea, the liquid-filled spiral cavity of the inner ear, are damaged. When healthy, these hairs — more than 15,000 altogether — translate mechanical vibrations produced by sound into electrical signals and deliver them to the auditory nerve.

Dr. House’s cochlear implant electronically translated sound into mechanical vibrations. His initial device, implanted in 1961, was eventually rejected by the body. But after refining its materials, he created a long-lasting version and implanted it in 1969.

More than a decade would pass before the Food and Drug Administration approved the cochlear implant, but when it did, in 1984, Mark Novitch, the agency’s deputy commissioner, said, “For the first time a device can, to a degree, replace an organ of the human senses.”

One of Dr. House’s early implant patients, from an experimental trial, wrote to him in 1981 saying, “I no longer live in a world of soundless movement and voiceless faces.”

But for 27 years, Dr. House had faced stern opposition while he was developing the device. Doctors and scientists said it would not work, or not work very well, calling it a cruel hoax on people desperate to hear. Some said he was motivated by the prospect of financial gain. Some criticized him for experimenting on human subjects. Some advocates for the deaf said the device deprived its users of the dignity of their deafness without fully integrating them into the hearing world.

Even when the American Academy of Ophthalmology and Otolaryngology endorsed implants in 1977, it specifically denounced Dr. House’s version. It recommended more complicated versions, which were then under development and later became the standard.

But his work is broadly viewed as having sped the development of implants and enlarged understanding of the inner ear. Jack Urban, an aerospace engineer, helped develop the surgical microscope as well as mechanical and electronic aspects of the House implant.

Karl White, founding director of the National Center for Hearing Assessment and Management, said in an interview that it would have taken a decade longer to invent the cochlear implant without Dr. House’s contributions. He called him “a giant in the field.”

After embracing the use of the microscope in ear surgery, Dr. House developed procedures — radical for their time — for removing tumors from the back portion of the brain without causing facial paralysis; they cut the death rate from the surgery to less than 1 percent from 40 percent.

He also developed the first surgical treatment for Meniere’s disease, which involves debilitating vertigo and had been viewed as a psychosomatic condition. His procedure cured the astronaut Alan B. Shepard Jr. of the disease, clearing him to command the Apollo 14 mission to the moon in 1971. In 1961, Shepard had become the first American launched into space.

In presenting Dr. House with an award in 1995, the American Academy of Otolaryngology-Head and Neck Surgery Foundation said, “He has developed more new concepts in otology than almost any other single person in history.”

William Fouts House was born in Kansas City, Mo., on Dec. 1, 1923. When he was 3 his family moved to Whittier, Calif., where he grew up on a ranch. He did pre-dental studies at Whittier College and the University of Southern California, and earned a doctorate in dentistry at the University of California, Berkeley. After serving his required two years in the Navy — and filling the requisite 300 cavities a month — he went back to U.S.C. to pursue an interest in oral surgery. He earned his medical degree in 1953. After a residency at Los Angeles County Hospital, he joined the Los Angeles Foundation of Otology, a nonprofit research institution founded by his brother, Howard. Today it is called the House Research Institute.

Many at the time thought ear surgery was a declining field because of the effectiveness of antibiotics in dealing with ear maladies. But Dr. House saw antibiotics as enabling more sophisticated surgery by diminishing the threat of infection.

When his brother returned from West Germany with a surgical microscope, Dr. House saw its potential and adopted it for ear surgery; he is credited with introducing the device to the field. But again there was resistance. As Dr. House wrote in his memoir, “The Struggles of a Medical Innovator: Cochlear Implants and Other Ear Surgeries” (2011), some eye doctors initially criticized his use of a microscope in surgery as reckless and unnecessary for a surgeon with good eyesight.

Dr. House also used the microscope as a research tool. One night a week he would take one to a morgue for use in dissecting ears to gain insights that might lead to new surgical procedures. His initial reaction, he said, was how beautiful the bones seemed; he compared the experience to one’s first view of the Grand Canyon. His wife, the former June Stendhal, a nurse, often helped.

She died in 2008 after 64 years of marriage. In addition to his daughter, Dr. House is survived by a son, David; three grandchildren; and two great-grandchildren.

The implant Dr. House invented used a single channel to deliver information to the hearing system, as opposed to the multiple channels of competing models. The 3M Company, the original licensee of the House implant, sold its rights to another company, the Cochlear Corporation, in 1989. Cochlear later abandoned his design in favor of the multichannel version.

But Dr. House continued to fight for his single-electrode approach, saying it was far cheaper, and offered voluminous material as evidence of its efficacy. He had hoped to resume production of it and make it available to the poor around the world.

Neither the institute nor Dr. House made any money on the implant. He never sought a patent on any of his inventions, he said, because he did not want to restrict other researchers. A nephew, Dr. John House, the current president of the House institute, said his uncle had made the deal to license it to the 3M Company not for profit but simply to get it built by a reputable manufacturer.

Reflecting on his business decisions in his memoir, Dr. House acknowledged, “I might be a little richer today.”

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Don't impoverish yourself to pay kids' student loans

Dear Liz: I'm in my 50s. My kids have college loan debts that might total more than $200,000. I allowed them to take out loans because I expected to inherit $300,000 to help them pay off the debt. Now that inheritance will not happen.

I have $250,000 saved for retirement. When I'm 58 1/2 years old, I would like to pull that money out and pay some or all of these debts. Or use home equity. I've recently been downsized in employment, but I am looking to increase my income so I can help with their debt. Advice?

Answer: If your goal is to impoverish yourself so your kids will have to take care of you in your old age, by all means proceed with your plan. Otherwise, you need to rethink this.

You've been laid off in the middle of what should be your peak earning years. Older workers often have a tougher time than younger ones finding replacement jobs, even in a better economy than this one. You may not be able to replace your former income, which means you may not be able to add much to the amount you've already saved. You should be conserving your resources, including your home equity, and not squandering it repaying debts that aren't yours.

And "squandering" is the right word. You may be able to avoid paying federal and state tax penalties on withdrawals under certain conditions; distributions made after age 59 1/2 avoid the penalties, as do those made if you're "separated from service" if the job termination occurred in or after the year you turn 55. But you'll still owe income taxes on the withdrawal, and those can be considerable.

Your children are the ones who will benefit from their educations. Those educations should allow them to earn incomes to repay these loans. The amount of debt they've accrued might be excessive — you didn't specify how many kids, or whether this debt is being incurred pursuing undergraduate or graduate degrees. Ultimately, though, they will be in a better position to pay the debt than you are.

If you promised them help you can't deliver, sit down with them now to break the bad news and strategize on how they can finish their educations without incurring substantially more debt.

Your story also should serve as a cautionary tale for anyone counting on an inheritance to pay future bills. Until the money is in your bank account, it's not yours and shouldn't be part of your financial planning.

Refinancing mortgage in divorce may not be wise move

Dear Liz: My soon-to-be ex wants to refinance our mortgage to pay for renovations so we can sell it for more money. He also wants to take out some cash to pay off unsecured loans. (I have $11,000 in credit card debt, and he has over $50,000.) The house recently appraised for $310,000 and we owe $158,000 on it. Is it wise to refinance in this circumstance?

Answer: A cash-out refinance would be a risky maneuver even if you intended to stay married. Renovations rarely boost a home sale price enough to cover their cost. Also, home equity that's used to pay off credit card bills is often wasted, since the borrower never fixes the problem that led to overspending in the first place and simply runs up more debt. Since he would be getting the bulk of the benefit by having more of his debt paid off, you also would need to adjust the rest of your property settlement.

Often, the best and easiest solution in a divorce is to simply sell the house. You certainly wouldn't want to remain on a mortgage with an ex after the divorce was final, if you could possibly avoid it. A good divorce attorney can give you advice about how to proceed from here.

Make saving money automatic

Dear Liz: What's the easiest way to save money? I have the hardest time. I want to save, but I feel that I don't make enough to start saving.

Answer: The easiest way to save is to do it without thinking about it.

That usually means setting up automatic transfers either from your paycheck or from your checking account. If you have to think about putting aside money, you'll probably think of other things to do with that cash. If it's done automatically, you may be surprised at how fast the money piles up.

The second part of this equation is to leave your savings alone. If you're constantly dipping into savings to cover regular expenses, you won't get ahead.

People manage to save even on small incomes because they make it a priority. They "pay themselves first," putting aside money for savings before any other bills are paid. Start with small, regular transfers and increase them as you can.

Questions may be sent to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the "Contact" form at asklizweston.com. Distributed by No More Red Inc.

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Apple takes investors on a wild ride

SAN FRANCISCO — With only modest expectations, Robert Leitao of Santa Clarita made a decision in 1994 that would change his life. He bought Apple stock.

This was several years before Steve Jobs returned to resurrect Apple, long before the iPod, the iPhone or the iPads that would make Apple the most valuable company in the world. A $1 investment in Apple at the start of 1994 is now worth about $70.

"Even with the recent sell-off, I'm still doing very well with the stock," said Leitao, who works as director of operations at a Catholic church in Burbank. "Apple provided for a down payment on our home for our blended family of four kids."

Leitao is one of the countless people whose lives have been touched by Apple's stock, which has become a global economic force. It is now one of the most widely held stocks, and the most valuable. Even as Apple Inc.'s market value fell to $480 billion on Friday, it was still larger than the gross domestic product of Norway or Argentina, and more than the combined value of Google Inc. and Microsoft Corp.

Yet that astonishing size and economic influence is also what, many analysts believe, contributes to the extraordinary volatility that can make owning Apple's stock a hair-raising experience.

It was inevitable, analysts say, that after Apple's stock rose 74% in the first nine months of this year, a huge wave of selling would occur as fund managers locked in their profits. And yet, in recent years, these huge dips have been followed by even bigger run-ups that led to new record highs, a dynamic that one trader refers to as the "Apple slingshot."

That pattern has some analysts betting Apple will soar above $1,000 a share in 2013, a scenario almost guaranteed to drive the global obsession with the company's stock into an even greater frenzy.

"The impact on shareholders and on the economy is incredible," said Howard Silverblatt, senior index analyst for S&P Dow Jones Indices. "We've not seen anything like this in the modern trading era. Ever."

Even after the remarkable decade of Apple's revival, the company's stock managed to reach new milestones this year. Early in 2012, Apple became the sixth company ever to surpass $500 billion in market value. In August, it became the only company in history with a market value topping $622 billion.

That performance affects just about anyone who has a 401(k) account or a pension. According to FactSet, a research firm that tracks investment funds, 2,555 institutional investors — mutual funds, hedge funds and pension funds, among others — owned stock in Apple, just behind the 2,590 that held Microsoft stock, as of Sept. 30, the most recent date funds had to disclose their holdings. However, the value of that Apple stock held by institutional investors on that day was $427 billion, compared with $172 billion for Microsoft, according to FactSet.

Silverblatt said the only company that has come close to having such a strong influence on the broader stock markets since World War II is IBM in the early 1980s, when the PC revolution was just getting started. But not only is the value of Apple's stock remarkable, so is its volatility. Such large stocks rarely have such big, quick swings.

Apple shares peaked at $702.10 on Sept. 19, up from $401.44 at the start of the year, a run that astonished analysts. But just as remarkable has been its collapse, falling as low as $505.75 in intra-day trading Nov. 16.

"It's just amazing because it's such a large company," said Brian Colello, a senior research analyst at Morningstar. "The company lost about $35 billion in market cap in one day. That's the size of some large-cap stocks."

Yet such swings have become commonplace for Apple stock. Before its latest swoon of 23.4% since its September high, Apple had experienced three previous corrections of more than 10% over the last two years.

The value of Apple's stock and its extreme swings have made researching it and trading it almost a full-time job for some people. Jason Schwarz of Marina del Rey edits EconomicTiming.com, which sends out up to five newsletters each week to its 1,000 clients that focus in large measure on Apple. He also helps run Lone Peak Asset Management, which has about $500 million in assets.

Schwarz says that what he calls the "Apple slingshot" is actually a virtue of the shares.

"The extraordinary volatility is the result of Apple's strength," Schwarz said. "People try to blame the volatility on Apple's weaknesses."

Schwarz and many other Apple believers argue that people are making a big mistake when they try to understand the stock's behavior by focusing on various bits of bad news such as an executive shake-up, the Maps controversy or questions about market share or competition. They have almost nothing to do with the regular hits taken by Apple shares, the argument goes.

Instead, folks like Schwarz say more technical factors are at work, such as the fact that the fiscal year for many stock funds ends Oct. 31. When the stock peaked in September, many fund managers rushed to sell to lock in profits for the year. Apple stock makes so much money for so many people, then plummets when shareholders pause to reap their profits, Schwarz says.

The volatility has continued in recent weeks, the argument goes, because fears of higher taxes next year have many fund managers trying to take advantage of short-term swings to make bigger profits. That volatility offers tantalizing windows for huge, short-term profits for investors willing to take the risk.

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Valve Confirms New Game Console on Its Way

In an interview with Kotaku’s Jason Schreier at the Spike TV Video Game Awards, Valve co-founder Gabe Newell confirmed that a “living-room-friendly PC package,” designed to “compete with next-gen consoles from companies like Microsoft and Sony,” will be available for purchase starting next year.

What makes a PC a PC

Most of the machines Newell described, which he expected “companies” would “start selling” next year, would be powered by Microsoft Windows like normal PCs. However, they would be more like home theater PCs than regular computers; they would be designed to fit in the living room and plug into an HDTV, and they would use a much-simplified interface which eschews pointing and clicking in favor of using a game controller.

Getting the (Big) Picture

That interface is Steam’s Big Picture mode, launched last week as a free upgrade to the Steam digital store. Gamers can click a button on the Steam window to be taken to a screen much like an Xbox 360′s dashboard or PlayStation 3′s XMB, where they can use a game controller to buy things from the store and play their installed games.

Games which can be played using only a controller get special branding and status in Big Picture mode. Steam held an enormous sale to promote such games when Big Picture mode launched, including titles like Sonic Generations which are also available on game consoles.

Steam-powered penguins?

Besides Big Picture mode, Valve’s other big project as of late has been porting Steam to Linux, starting with the popular Ubuntu version. The Linux version of Steam, currently in beta, also supports Big Picture mode. Newell said in the interview that a working Linux version would “give Valve more flexibility when developing their own hardware,” and dozens of games are already available for Linux gamers on Steam.

What will this hardware look like?

Newell’s talk of “companies” making computers like this suggests a Valve-created standard, like the Intel ultrabook or like Google’s requirements for Android devices, which PC manufacturers would have to adhere to. He also talked about Valve making its own hardware, which might be similar to Google’s Nexus lineup of tablets and smartphones.

Besides that, these game console style PCs won’t be as “malleable” as a normal computer, according to Newell. Like with today’s laptops, it may be difficult or impossible to get at the internals and upgrade parts, the way dedicated PC gamers like to do with their machines.

How much will these machines cost?

Newell’s statement that they will compete with “next-gen” consoles from Sony and Microsoft, which probably means the long-awaited new PlayStation and Xbox consoles expected next year, implies that they will be cost-competitive in some way. Gaming PCs typically have prices starting at $ 600 – $ 800 at the very lowest, while the PlayStation 3′s $ 599 USD launch price made it a pariah of the game console world for years. A Steam-powered game console may have to invent its own price bracket.

However, the original Xbox was basically an Intel Celeron PC with a custom-made case. So it’s possible that Steam has a similar plan in mind.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
Linux/Open Source News Headlines – Yahoo! News

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School shooting postpones Cruise premiere in Pa.

NEW YORK (AP) — The U.S. premiere of the Tom Cruise action movie "Jack Reacher" is being postponed following the deadly Connecticut school shooting.

Paramount Pictures says "out of honor and respect for the families of the victims" the premiere won't take place Saturday in Pittsburgh, where "Jack Reacher" was filmed.

The premiere would've been Cruise's first U.S. media appearance since his split from Katie Holmes over the summer. It was to be more contained with select outlets covering and a location away from Hollywood or New York.

A proclamation ceremony for Cruise had been planned with Pennsylvania Gov. Tom Corbett and Pittsburgh Mayor Luke Ravenstahl.

No new date for the premiere has been set. The movie opens Dec. 21.

Friday's massacre at a Newtown, Conn., elementary school killed 20 children and several adults.

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