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June 2009

AP Exclusive: Jackson said net worth $236M in 2007 (AP)

NEW YORK – It's one of the biggest mysteries in the Michael Jackson saga: How much was the lavish-spending, massively debt-ridden pop icon really worth? In the most detailed account yet of the singer's tangled financial empire, documents obtained by The Associated Press show Jackson claimed to have a net worth of $236.6 million as of March 31, 2007.
But less than $700,000 of that amount was in cash — a relatively paltry sum given his opulent lifestyle, prodigious borrowing and seven-figure shopping sprees.
The dollar amounts, which previously consisted of estimates, are crucial because Jackson's estate is expected to become the focus of a legal battle between the singer's family and creditors.
The revelation came Tuesday as Jackson's family reversed itself and said the singer did in fact have a will — complicating a bid by Jackson's mother to take control of her son's finances.
Jackson had $567.6 million in assets, including his Neverland Ranch and his share of the Sony/ATV Music Publishing catalog, which includes the rights to songs by the Beatles, according to a statement of financial condition prepared by Washington, D.C.-based accounting firm Thompson, Cobb, Bazilio & Associates.
The report was prepared at a time when Jackson had large sums of debt coming due that had to be refinanced. The financial statement, which is not as thorough as an audit, was based in large part on estimates provided by Jackson's advisers that the accounting firm said it could not verify.
In the documents, the firm also said it omitted the amount Jackson owed in income taxes.
The documents do not show how much money he had coming in that year or how much he was spending, which makes it hard to estimate just how cash-poor he was. Still, the statement paints a picture of Jackson's tangled finances and the mountain of debt he left behind.
The five-page report says Jackson had debts of $331 million. The singer had just $668,215 in cash, according to the report.
The accounting firm did not return calls seeking comment.
The report puts a net value on Jackson's 50 percent stake in the Sony/ATV Music Publishing catalog — his most prized asset — at $390.6 million. The 750,000-song catalog includes music by the Beatles, Bob Dylan, Neil Diamond, Lady Gaga and the Jonas Brothers.
A separate document obtained by the AP details Jackson's dealings with Sony Music Entertainment Inc., which owns the other half of Sony/ATV. Jackson was guaranteed a cash distribution of $11 million a year from the venture through September 2011, according to the May 25, 2007, document that was signed by the pop star.
The document also detailed Sony's ability to buy an unspecified percentage of Jackson's remaining share in Sony/ATV.
It said Sony agreed to guarantee loans made to Jackson through September 2011 and to help him refinance his debts. Sony also agreed to advance Jackson money to help pay the interest to his main creditor at the time, Fortress Investment Group LLC, to avoid defaulting. Barclays Bank PLC took over the Fortress loan, which is now around $315 million, in December 2007.
The documents also show that Jackson gave his approval for Sony/ATV to use up to $400 million to purchase the 125,000-song Famous Music LLC catalog from Viacom Inc., which holds such songs as "Footloose" and "The Real Slim Shady" by Eminem. The deal was announced a week later.
A Sony/ATV spokesman declined to comment.
Another of Jackson's prized possessions, his Neverland Ranch, is valued at $33 million, according to the accounting firm's report. He also had $20 million worth of cars, antiques, collectibles and other property.
It's likely that Neverland, a 2,500-acre property in the rolling hills of Santa Barbara County, has dropped in value since 2007 along with the rest of the battered California housing market, experts said.

"The luxury market in the past year has really taken a hit in markets across the country," said Rick Goodwin, publisher of Ultimate Homes and its parent publication, Unique Homes.

The ranch in central California's wine country was set to be sold in March 2008 because of missed payments on a $24.5 million loan, but Jackson managed to cut an 11th-hour deal to keep it off the auction block.

The fact that few, if any, similar properties in the area are selling makes it even harder to determine Neverland's current market value. A couple of properties in the 500-acre range are on the market in the area for around $10 million, said Steve Schott, a real estate appraiser based in Santa Barbara.

Jackson died Thursday at age 50 of what his family has said was cardiac arrest. Medical examiners in Los Angeles are perhaps weeks away from determining the official cause of death.

The divvying up of Jackson's assets — and the settling of his debts — are likely to be hotly contested in court. On Monday, lawyers for Katherine and Joe Jackson won temporary custody of Michael Jackson's three children and moved to become administrators of his estate.

A judge granted 79-year-old Katherine Jackson temporary guardianship of the children, who range in age from 7 to 12. He also gave her control over some of her son's personal property that is now in the hands of an unnamed third party. But the judge did not immediately rule on her requests to take charge of the children's and Jackson's estates.

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Associated Press writers Alex Veiga, Ryan Nakashima and Anthony McCartney in Los Angeles contributed to this report.

Family discussing Jackson tribute show: promoter (Reuters)

LONDON (Reuters) –
The promoter of Michael Jackson's planned run of 50 concerts in London wants his family to stage an all-star show in his memory and said on Tuesday he had discussed the idea with them.

Randy Phillips, chief executive of AEG Live, also said Jackson appeared to be fit and ready to perform the day before he died last Thursday, aged 50, after suffering cardiac arrest.

"At some point the world needs to see this production, and I would imagine if we could do it, it would be done as a tribute with the family ... but also other stars who loved Michael and were influenced by him," Phillips told Sky News.

"But the world needs to see this production, and it's done," he said, referring to the spectacular that Jackson and AEG Live created for the run of shows at London's O2 Arena which had been scheduled to open on July 13.

"We're discussing that with the family and obviously the sooner the better."

Countering suggestions that Jackson was in poor health and should not have been pushed to rehearse for a series of physically demanding concerts, Phillips said he had spoken to the star the day before he died.

"He gave me a hug and whispered into my ear: 'Now I know I can do this', he was that engaged."

Photographer Kevin Mazur told Reuters earlier that Jackson had been "full of energy" at rehearsals in Los Angeles.

"A picture tells a story," he said, referring to images he took in Los Angeles on Tuesday, June 23, two days before Jackson's death. They were released to the media this week.

"He was just the same old Michael and when he hit the stage he was full of energy, happy, very upbeat, having fun."

Phillips said AEG Live was considering releasing footage of Jackson rehearsing in order to prove this point.

FINANCIAL FALLOUT

Insurance experts have said AEG Live, which has offered full refunds to the 750,000 people who snapped up tickets to the Jackson shows, faced sizeable financial losses. Phillips conceded that hiring Jackson had been a risk.

"When you're in business like we are, you take risks all the time and in the case of Michael Jackson ... we thought it was an acceptable risk.

"We had (insurance) coverage and stuff like that. We probably will be fine financially from this but, right now, we're trying to do the best thing for the estate."

Phillips described what he saw at the Los Angeles hospital where Jackson was taken after falling ill.

"They brought him in on a stretcher and they put him into the emergency room," he said. "I was sitting in a chair right outside the ...operating room, and there was tons of activity, and they were trying to resuscitate him and save him and working really hard.

"I sat there ... it seemed, honestly, like an eternity. But it took about an hour, an hour and a half before the nurse came out and told (Jackson manager) Frank (DiLeo) and I that there was no hope."

He said Jackson's doctor Carlton Murray was one of the people who told the singer's children that he had died.

"I stood at the doorway when they went in and they told them and just the look of fear in their faces... it was hard. I'll think about that the rest of my life. But they seem to be doing really well."

He added that he had tried to dissuade Jackson from hiring Murray as his personal doctor, because of the costs involved.

"Michael told me ... 'you don't understand. My body is the machine that fuels this business and I need personal care and I want a doctor 24/7 like President Obama would have and this is my doctor'."

(Additional reporting by Avril Ormsby; editing by Robert Woodward)

US warns citizens to avoid travel to Honduras (AP)

WASHINGTON – The State Department on Monday warned U.S. citizens to avoid all nonessential travel to Honduras due to the "current unstable political and security situation" there.
Noting the ouster on Sunday by the Honduran military of President Manuel Zelaya, the department in a statement late Monday also recommended that American citizens residing in and visiting Honduras remain close to their homes or hotels "unless their travel is of a life or death nature," or for a scheduled departure from Honduras. It urged U.S. citizens to restrict travel within the country to necessary trips.
It said the U.S. Embassy has restricted the travel of its staff within Honduras to necessary trips.
"There have been regular demonstrations at the presidential palace in central Tegucigalpa, and streets in the vicinity of many government offices are blocked by police or military," the statement said. "In general, the streets of Tegucigalpa and San Pedro Sula are quiet. Reports from the rest of the country indicate that calm prevails, although there have been cases of occasional roadblocks."

Flower Girl Dresses

Flower Girl Dresses

Dresses increased dramatically to the hoopskirt and crinoline-supported styles of the 1860s; then fullness was draped and drawn to the back by any dresses had a "day" bodice with a high neckline and long sleeves, and an "evening" bodice with a low neckline (decollete) and very short sleeves.

One may usually wear a bra, but for modesty wearing a camisole / vest or full slip is also an option for the top. Dresses are sometimes worn with tights.

Pacers make PG Jack restricted free agent (AP)

INDIANAPOLIS – The Indiana Pacers have made a qualifying offer to point guard Jarrett Jack, making him a restricted free agent.
Jack's agent, Jeff Schwartz, said Tuesday that his client has enjoyed playing for the Pacers.
Jack averaged a career-high 13.1 points per game last season while sharing the starting job with T.J. Ford. Team president Larry Bird said at the end of the season that he wanted to make the offer to Jack, but as the draft approached said the right point guard could make Jack expendable.
The Pacers did draft Connecticut point guard A.J. Price last week.
Free agents can begin officially negotiating with teams on Wednesday.

Promoter: Tribute shows for Jackson likely (AP)

LONDON – The promoter who booked Michael Jackson for a sold-out comeback tour says a tribute show based on his canceled concerts is likely.
Randy Phillips, chief executive of promoter AEG Live, told Britain's Sky News television on Tuesday that the "world needs to see" the production Jackson had been working on.
He says members of the Jackson family, and other world music stars, could take part in a tribute show using routines and sets already created for the scrapped tour.
Phillips says he believes Jackson's comeback would have been one of the best arena shows ever produced. He says a video of Jackson's rehearsals for the tour does exist.
He says Jackson said he believed he was ready for the 50 sold-out performances at London's O2 arena.

China's internet porn filter -- no Depp please (Reuters)

BEIJING (Reuters) –
What do Johnny Depp, Garfield, Paris Hilton and roast pork have in common? In China, the answer is that a new government-mandated Internet filter rates some pictures of all four of them as bad for your moral health.

Beijing has ordered all personal computers sold in China from July 1 to be preinstalled with the Green Dam software, which it says is designed to block pornographic and violent images, and which critics fear will be used to extend censorship.

But a trial of the programme, which is available online for free download (http://www.skycn.com/soft/46657.html), suggested

its filters may be of limited use to worried parents.

When the software is installed, and an image scanner activated, it blocks even harmless images of a film poster for cartoon cat Garfield, dishes of flesh-colour cooked pork and on one search engine a close-up of film star Johnny Depp's face.

With the image filter off, even though searches with words like "nude" are blocked, a hunt for adult websites throws up links to soft and hardcore pornography sites including one with a video of full penetrative sex playing on its front page.

Green Dam has not detailed how it scans images for obscene content, but computer experts have said it likely uses colour and form recognition to zoom in on potential expanses of naked flesh.

Programme settings allow users to chose how tightly they want images scanned. When too much skin is detected, Green Dam closes all internet browsers with no warning, sometimes flashing up a notice that the viewer is looking at "harmful" content.

But the interpretation of obscene is apparently generous enough to include the orange hue of Garfield's fur and, on the highest security settings, prevent viewers clicking through to any illustrated story on one English language news website.

A programme to scan written content appears less sensitive, with a string of explicit words typed into a word document triggering no response, although some users have complained in online forums of shut-downs similar to those of web browsers.

SEX OR POLITICS?

The software also allows users to choose what they want to filter for, and besides adult websites and violence, categories include "gay" and "illegal activities."

Gay and health activists fear the blanket ban on "gay content," in a country where homosexuality is not criminalised, could damage projects including sexual health and AIDS education.

And government critics worry the "illegal activities" section will cover political and social activities Beijing objects to, tightening access to non-approved information, already filtered by censors and a firewall.

Another setting allows Green Dam to take regular snapshots of a user's screen and store them for up to two weeks -- ostensibly so parents can monitor computer use by minors.

But it could also potentially leave security officials a track of computer use by a suspected dissident, or be a gift to fraudsters hunting online bank details and private information.

Researchers in the U.S. have already said they are concerned Green Dam leaves users vulnerable to malicious sites that might steal personal data or install code on the personal computer.

Western governments and trade groups have also asked China to reconsider, based on concerns ranging from cyber-security and performance of the software to Internet freedoms.

"People say the software is not very stable and has many technological problems," said Joerg Wuttke, the president of the European Union Chamber of Commerce in China, which has dubbed the introduction of Green Dam "hasty."

China's foreign ministry on Tuesday declined to respond to criticisms of the software.

(Additional reporting by Maxim Duncan, Kirby Chien and Alan Wheatley; Editing by Jerry Norton)

Courts face new challenges in faith healing cases (AP)

NASHVILLE, Tenn. – Though most states have child abuse laws allowing religious exemptions for parents who shun medicine for their sick children, recent cases have raised the thorny legal issues for parents following less-recognized faiths.
Historically, many of the parents addressed by the laws have embraced faiths like Pentecostalism and Christian Science, while others are Jehovah's Witnesses — all established denominations that the law has gradually taken into account.
It's harder for judges to decide cases involving parents who don't belong to a well-known denomination, yet also don't believe in using medicine for their kids. Legal and religious scholars say it's becoming more difficult for courts to decide when to honor the religious beliefs of parents and when to order conventional medical treatment for extremely sick children.
The manslaughter trial of an Oregon couple who claim they were following their religious beliefs in the 2008 pneumonia death of their 1-year-old daughter was to begin Monday. Carl and Raylene Worthington are members of Followers of Christ Church, which has been investigated for past child deaths.
In Tennessee, Jacqueline Crank and her minister Ariel Sherman face child neglect charges in the death of her 15-year-old daughter Jessica, who died in 2002 with a basketball-sized tumor on her shoulder. Prosecutors say based on Sherman's advice, the girl's mother relied on prayer instead of medicine.
Sherman has been accused of being a cult leader whose Universal Life Church is not a legitimate religion. He has denied such charges and says the church is Christian-based and embraces the Bible.
Believers in faith healing point to a Biblical verse in the Epistle of James, which describes how church elders should be called in to pray over the sick. There's no mention of doctors, and literalists interpret it to mean medical treatment should be eschewed over prayer.
Gregory P. Isaacs, an attorney for Crank, who's out on bond, argues that Tennessee's religious exemption law is untested and too vague.
"It really has a tremendous amount of problems," Isaacs said. "What is an organized religion and what is an ordained minister? What illnesses can you attempt to heal by faith? Those are the two pitfalls in the statute. That's not what's really clear."
Jim Dwyer, a William and Mary Law School professor who's written articles about and participated in litigation on the topic, said it's often more complicated for courts to discern cases with unaffiliated religions because judges and juries aren't as familiar with them and are skeptical of their legitimacy.
"The Supreme Court has adopted a very broad definition of religion," Dwyer said. "But ... you have to show sincere religious beliefs. Some judges might be skeptical of sincerity if it's something they've never heard of, if the person says, 'I don't belong to a certain church. I just have some beliefs that I saw on the Internet,' or 'In our own home, we've developed this set of beliefs.'"
Dr. Ellen Wright Clayton, a pediatrician and co-director of the Center for Biomedical Ethics and Society at Vanderbilt University, says when treatment for an illness is very toxic and the prognosis is dire, courts tend to rule parents don't have to pursue medical treatment. If that's not the case, courts are likely to order the treatment.
"Until medicine became effective, there was no push to say we absolutely have to do medical treatment. There wasn't this notion of deference (to religion) until medicine began to work and to become institutionally powerful."
Besides the states that have religious exemption laws, five states — Hawaii, Maryland, Massachusetts, Nebraska and North Carolina — have repealed such laws.
Many of the exemption laws were enacted in the 1970s. Rita Swan, director of the Sioux City, Iowa-based advocacy group Children's Healthcare is a Legal Duty, which lobbies states to repeal such laws, said that since 1975, there have been at least 274 known cases of U.S. children who have died after medical care was withheld on religious grounds.
She says the majority of such cases are still associated with established denominations like Pentecostalism, though "the Internet has opened up some more possibilities than it did before" and there have been some cases involving unaffiliated denominations.
At least two recent high-profile cases involve parents whose beliefs were drawn from Internet-based religious groups.
Authorities in Minnesota convinced a judge to force 13-year-old Daniel Hauser into chemotherapy, prompting his mother Colleen to skip a court hearing and — with her son in tow — go on the run for nearly a week in May.

They headed to Southern California, where they considered a trip into Mexico for alternative cancer treatments, before eventually returning to the Hausers' home in Sleepy Eye, Minn., about 100 miles southwest of the Twin Cities. The boy has since received chemotherapy treatments, which appear to be working.

The family prefers natural healing practices suggested by an Internet-based group called the Nemenhah Band, which says it follows American Indian beliefs.

In Wisconsin, a jury convicted Leilani Neumann, of Weston, Wis., of second-degree reckless homicide in May for failing to rush her 11-year-old daughter Madeline Kara Neumann to a doctor. She died of untreated diabetes in March 2008.

Prosecutors argued she killed the girl by ignoring obvious symptoms — she couldn't walk or talk and was believed to be in a coma — until it was too late. The mother testified she didn't realize her daughter was so ill and did all she could to help, in line with the family's belief in faith healing.

Neumann sought the spiritual assistance of the online evangelical Christian ministry Unleavened Bread Ministries.

In the wake of the Wisconsin case, Swan said legislators there are considering a bill that would repeal the state's religious exemption to its child abuse and neglect law.

"In the U.S. under the First Amendment, we're not supposed to be establishing religion or carving out any preferences for prestigious religions," Swan said. "The courts should not be giving any kind of deference to established denominations and making any distinctions."

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On the Net:

Children's Healthcare is a Legal Duty: http://www.childrenshealthcare.org/

Wireless Internet Radio

Wireless Internet Radio

Rhapsody, SomaFM, Live365, MTV, Pandora, RauteMusik.FM, SHOUTcast, and Digitally Imported were among the participants in the Day of Silence. Last.FM and Slacker did not participate, saying that they did not want to punish their listeners for the station's problems. Supporters of the increase in royalty rates, however, point to the fact that CBS recently purchased Last.FM for 280 million dollars, and if internet radio is to build businesses off of the product of recordings, the performers and owners of those recordings should receive fair compensation. They also point to the fact that the rates were flat from 1998 through 2005 (see above), without even being increased to reflect cost-of-living increases.

On May 1, 2007, the United States Copyright Royalty Board approved a rate increase in the royalties payable to performers of recorded works broadcast on the internet. This was the result of a two year proceeding, with dozens of witnesses and hundreds of documents from over twenty different parties, including large and small webcasters, NPR, college stations, and SoundExchange. The CRB was privy to private financial records and business models of the webcasters, and after reviewing the evidence and testimony, issued their decision on May 1, 2007 (which is currently under appeal). If enforced, this decision will undermine the business models of many Internet radio stations, which had previously relied on the rate of $0.000768 per song that had been unchanged from 1998-2005. These rules were scheduled to go into effect on May 1, 2007, with the first due date being July 15, 2007, and apply retroactively to January 1, 2006.

EPA targets 44 coal ash sites in 10 states (AP)

WASHINGTON – Forty-four coal ash storage sites near 26 communities have been targeted for inspection after federal officials identified the ponds as potential threats to nearby residents.
The storage ponds, which are used to store waste from coal-fired power plants, are in 10 states, according to a list released Monday by the Environmental Protection Agency. The storage sites are similar to the one that flooded a neighborhood in Tennessee last year.
North Carolina has the most sites on the list, a dozen. The largest concentration is near Cochise, Ariz., where there are seven storage ponds.
The agency said it will inspect each of the 44 sites and already has visited about half. Because they are located near communities, the agency wants to make certain they are structurally sound. The sites are classified as potentially highly hazardous because they are near where people live and not because of any discovered defect.
"The high hazard potential means there will be probable loss of human life if there is a significant dam failure," said Matt Hale, director of EPA's office of research, conservation and recovery. "It is a measure of what would happen if the dam would fail. It is not a measure of the stability of the dam."
These ponds hold fly ash, bottom ash, coal slag and flue gas residues that contain toxic metals such as arsenic, selenium, cadmium, lead and mercury, although generally at low concentrations.
Sen. Barbara Boxer, D-Calif., who called on the EPA to disclose the high-risk coal ash locations, said it's essential that the public knows where the storage ponds are "so that people have the information they need to quickly press for action to make these sites safer."
Boxer's Senate Environment and Public Works Committee held hearings on the coal ash risks after the Tennessee Valley Authority coal ash pond broke. She also pressed for the release of the list of sites when the administration initially balked, citing security concerns.
Last year, two days before Christmas, an earthen dam broke at a coal ash pond operated by the TVA near Kingston, Tenn., sending 5 million cubic yards of ash and sludge across more than 300 acres, destroying or damaging 40 homes. The incident prompted a safety review of storage ponds that hold the waste byproduct near large coal-burning power plants.
Burning coal produces ash, which is kept in liquid, known as slurry, in containment ponds or dams. The EPA lists more than 400 such impoundments across the country, but the 44 singled out Monday represent those that are near populated areas, posing a higher danger.
Until now, the national coal ash site list has not been provided to the public. Earlier this month the Army Corps of Engineers said it didn't want the locations disclosed because of national security and that it could help terrorists target such facilities.
The EPA has been to half the 44 sites and expects to issue reports soon, Hale said, and other inspections are being scheduled. The EPA also is reviewing state inspection reports at some of the sites.
The seven ponds near Cochise, Ariz., hold material from the Apache Station Combustion Waste Disposal Facility operated by Arizona Electric Power Cooperative.
Two other utilities operate nearly half of the coal ash sites on the list and spokesmen for both companies said the sites are routinely inspected and are safe. American Electric Power., based in Columbus, Ohio, has 11 of the sites in Kentucky, Ohio, West Virginia and Indiana. "We go above and beyond to make sure our (coal ash) dams are safe," said AEP spokesman Pat Hemlepp. He said the sites are inspected annually by the corporation and more frequently by the individual power plant officials.
Duke Energy Corp., based in Charlotte, N.C., has 10 sites in North Carolina. "We are absolutely confident from our monitoring, maintenance and inspections that the dams have the structural integrity to protect the public and the environment," said Duke Energy spokesman Jason Wells.
The 10 states, the number of sites, and communities are:
_North Carolina, 12 (Belmont, Walnut Cove, Spencer, Eden, Mount Holy, Terrell and Arden).
_Arizona, 9 (Cochise, Joseph City).

_Kentucky, 7 (Louisa, Harrodsburg, Ghent and Louisville).

_Ohio, 6 (Waterford, Brilliant and Cheshire).

_West Virginia, 4 (Willow Island, St. Albans, Moundsville, New Haven).

_Illinois, 2 (Havana, Alton).

_Indiana, 1 (Lawrenceburg).

_Pennsylvania, 1 (Shippingport).

_Georgia, 1 (Milledgeville).

_Montana, 1 (Colstrip).

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On the Net:

Environmental Protection Agency:

http://www.epa.gov/epawaste/nonhaz/industrial/special/fossil/ccrs-fs/index.htm