9

Your Pet Loss Poems'No Need for Goodbye'

I remember you were sick, And yet I had to go. I wasn't there to watch you die, That pain, I hope, I'll never know. So I never got to say goodbye, I




9

Your Pet Tributes'George'

It's so hard to believe it has now been a year since you went to Rainbow Bridge. I miss you just as much now as I did the day you passed. You will




9

Your Pet Loss Stories'My Loving Spaniel'

Since I was little we had a lovely golden working Cocker Spaniel. She was a lovely little dog and everyone in my family loved her. I grew up with her,




9

Your Pet Loss Stories'Maxxey'

On Friday my vet and I took the decision to put my beloved Springer, Max to sleep. He was my constant companion, loyal friend for 12 years. Because he




9

Your Pet Tributes'Tank'

Yesterday I lost my best friend. Nine years ago you saved my life and brought me happiness every day since. Selfishly I wanted to keep you around forever




9

Your Pet Tributes'Dude'

Dude you were the best dog ever and I feel sad that we didn't tell you this every day. Yes, you drove us nuts by stealing the cats food and sleeping on




9

Your Pet Loss Poems'Sage'

Sage Today I sit alone and cry, Without you by my side. Of all the times I've said goodbye, This one made me cry. If there was anything I could have done,




9

Your Pet Tributes'Jason Hassan'

Jason: It's been one month now since you have gone to Rainbow Bridge. Jason your love was unconditional. You have left my life, but you will never leave




9

Your Pet Tributes'Pixie Tulip'

Pixie, you came to us beaten, starved, scared and lonely. No one wanted to take on a rescue Staffordshire Bull Terrier, but we did as company for our




9

Your Pet Loss Stories'I Can Smile A Little Now'

I lost my beloved cat Gemma, seven months ago and when I think about her, I can smile a little. I can now think of the happy times and not that dreadful




9

Your Pet Loss Stories'Buddy's Story'

The first time we saw Buddy he was walking across the grave of one of our beloved cats, Harley, who had just passed away while we were on vacation. This




9

Your Pet Tributes'Saffron Badaffron Woof Woof Prescott'

Saffron, you were the most perfect being that I could ever envision. You were my sunshine. I miss you beyond words, my little Spoopa Roopa. How can we




9

Real Life Rainbow Bridge Stories'My Little Girl Candi'

She passed away just not too long ago, 6-12-13. It was very hard for me to put her down. I had her for 21 years, going on 22 years. I know I feel her presence




9

Your Pet Tributes'Jason Hassan'

Hey Jason! Just checking to see how you are doing at Rainbow Bridge? Hope you are making friends and being a good boy! I missed you so much my baby,




9

Your Pet Loss Poems'For Gemma'

I find it hard to express my feelings, And say how much you meant to us, This poem is just another poor attempt, I’m being such a wuss! I can’t remember




9

Your Pet Tributes'Jesse'

Jess came to me in June 1999 as a birthday gift. She was beautiful white with some brown and black. She was the best birthday present that I ever got or




9

Real Life Rainbow Bridge Stories'A Trip to the Bridge'

Now, before I start this, I want to reassure you all that this is a true story. I'm not making this up. This really happened, and I thank God every night




9

Your Pet Tributes'Toby Todd'

My Sweet Toby. You were only with us for a short time and was just 15 days shy of 5 months. Why the door had to open when it did, why you ran into the




9

Your Pet Loss Stories'Patches, My Angel'

13 years ago I found out that I had breast cancer. I asked my husband if I could get a dog for comfort. No he said. I started praying for comfort.




9

Your Pet Loss Diaries'Theresa, Zeus & Shimma'Another Year Without You Oct 2013 xxxxOct 27, 2013

Dear Shim Shim, I hate this month, it's so miserable and even more so cos you passed on Halloween eve. I remember it all so vividly, your loss and Zeusy's




9

Your Pet Loss Stories'Ivy "Noodle"

Ivy came into my life on December 22, 2012. She was the most beautiful little creature I had ever seen and I knew instantly that she was supposed to be




9

Your Pet Loss Stories'My Taz'

I lost my Taz April 20th. He was my best friend and companion. He looked at me with so much love. My children and grandchildren live so far away. He




9

My Pet Tributes'Khan-li'

Khan-li my darling boy you were and always will be the Apple of my Eye, The Love Of My Life My Heart and all that is wonderful. The memories I have of




9

Your Pet Loss Stories'Pepper the Dog Who Needed Love'

Pepper was not my dog at first, she was given to me when she was a year old. She suffered horrible abuse for the first year of her life, when I got her




9

Your Pet Tributes'Tank'

2 days ago I lost my best friend. Nine years ago you saved my life and stole my heart. You brought me happiness at my lowest point and gave me reason to




9

Real Life Rainbow Bridge Stories'Whenever I Ask for Comfort'

My 19 year old cat had to be euthanized a couple of days before Christmas. I must admit the guilt was horrible and all I could do is wonder where my dear




9

Your Pet Tributes'Scamper'

My darling, all of Mama's love. You have gone leaving a void in my life. I still hear you sigh, and the patter of your feet up the steps, and the sound




9

Your Pet Loss Stories'My Dogs'

In the past year I had to put one dog to sleep. I adopted her when she was only 4. When we first got her she had a lot of health problems which got taken




9

Your Pet Tributes'Sassy'

To my beautiful little girl Sassy, I hope wherever you are you are happy and well. I look at your photos that are all around the house and wish you were




9

Your Pet Loss Diaries'Lisa & Diana'My Beautiful DianaNov 17, 2013

Hi my baby girl, How are you? Are you playing and having a good time? Are you staying close to Rufus? I hope you're happy and have all kinds of new friends




9

Your Pet Loss Diaries'Lisa & Rufus'My Beloved RufusNov 17, 2013

Hi my big guy, How are you are you having fun? Are you playing and have you made new friends? Are you keeping an eye on Diana? I hope you are happy and




9

What's the word on word balloons?

EPISODE SUMMARY This week, Dave and Brad drill down deep on a crucial topic in comics — word balloons! Then Dave talks about his recent Kickstarter, and why it didn't fund. Plus... how will the global pandemic affect comic ships, distributors, the USPS and ... webcomics? EPISODE NOTES Today's show is brought to you by Wacom — makers of the incredible Wacom One! This week, Dave and Brad drill down deep on a crucial topic in comics — word balloons! Then Dave talks




9

This Week's ComicLab Podcast!

EPISODE SUMMARY This week, Dave and Brad talk about the best Content Management System (CMS) for publishing webcomics. Toocheke is brand new, and Brad's a big fan. EPISODE NOTES Today's show is brought to you by Wacom — makers of the incredible Wacom One! This week, Dave and Brad talk about the best Content Management System (CMS) for publishing webcomics. Toocheke is brand new, and Brad's a big fan. Questions asked and topics covered... Toocheke i




9

Православная стенгазета № 19 (542)

В номере: Перенесение мощей благоверных князей Бориса и Глеба, Проповедь на Евангельское чтение, Господь верит в нас, Вопрос священнику: Плохо в доме, проблемы. Как быть? От лечения ослеп и перестал глотать.




9

Человек, остановивший войну. 97-летний радист вспоминает закодированное сообщение

Это важный день для нас и для всех, и хорошо, что люди все еще помнят




9

9 мая — День поминовения усопших воинов в 2020 году

В день начала войны 22 июня 1941 года первым обратился к согражданам глава Русской Православной Церкви митрополит Сергий, благословив на защиту Отечества




9

2019 in Libraries

  Visiting libraries is great. Neat things to learn about communities, comfy places to sit, clean bathrooms. I went to...




9

2019 reading list and commentary

I started 132 books this year and finished 127. New this year: a twitter thread of everything I read in...




9

Switching phubb's HTTP client - Christian Weiske

phubb is a WebSub hub that notifies subscribers in realtime when your website is updated.

Up to this year, phubb sent HTTP requests (GET + POST) with file_get_contents() and a HTTP stream context - see my previous example.

But then I needed a 100% correct way of detecting a page's Hub URL, and copied the code from phinde, my blog search engine. With that I introduced a dependency to PEAR's good old HTTP_Request2 library and I decided to use that library for all requests.

Unfortunately, now the problems began: During development I got an error in about one of 10-20 requests on my machine and could not find the cause:

PHP Fatal error:  Uncaught HTTP_Request2_MessageException: Malformed response:  in HTTP/Request2/Adapter/Socket.php on line 1019

#0 HTTP/Request2/Adapter/Socket.php(1019): HTTP_Request2_Response->__construct('', true, Object(Net_URL2))
#1 HTTP/Request2/Adapter/Socket.php(136): HTTP_Request2_Adapter_Socket->readResponse()
#2 HTTP/Request2.php(946): HTTP_Request2_Adapter_Socket->sendRequest(Object(phubbHttpRequest))
#3 phubb/src/phubb/HttpRequest.php(22): HTTP_Request2->send()
#4 phubb/src/phubb/Task/Publish.php(283): phubbHttpRequest->send()
#5 phubb/src/phubb/Task/Publish.php(248): phubbTask_Publish->fetchTopic(Object(phubbModel_Topic))
#6 phubb/src/phubb/Task/Publish.php(77): phubbTask_Publish->checkTopicUpdate('http://push-tes...')
#7  in HTTP/Request2/Response.php on line 215

The socket adapter has this problem, and I did not want to try to debug that strange problem. (No idea if the cURL one has it; I do not want to rely on php-curl). Finding a new HTTP library was the only option.

New HTTP library

The PHP Framework Interop Group has several HTTP-related proposals; one of them PSR-18: HTTP Client. Now that we have a standardized way to send HTTP requests in 2020, I should use a library that implements it.

The psr-18 topic on Github listed some clients:

Symfony's HTTP client was among them, and it provides a mock client for unit tests! Unfortunately, it also introduces a million dependencies.

There were two others that looked ok-ish on first sight (diciotto and http-client-curl) but both of them had no mock client, and the latter was even curl only. Again nothing for me.

Then I found PHP-HTTP that promises a standard interface for HTTP clients in PHP, and it supports PSR-18! It even has a socket client that has nearly no dependencies, and a mock client for unit tests. I'll try that one for now.




9

'Job Creating' Sprint T-Mobile Merger Triggers Estimated 6,000 Non-Covid Layoffs

Back when T-Mobile and Sprint were trying to gain regulatory approval for their $26 billion merger, executives repeatedly promised the deal would create jobs. Not just a few jobs, but oodles of jobs. Despite the fact that US telecom history indicates such deals almost always trigger mass layoffs, the media dutifully repeated T-Mobile and Sprint executive claims that the deal would create "more than 3,500 additional full-time U.S. employees in the first year and 11,000 more people by 2024."

About that.

Before the ink on the deal was even dry, T-Mobile began shutting down its Metro prepaid business and laying off impacted employees. When asked about the conflicting promises, T-Mobile refused to respond to press inquiries. Now that shutdown has accelerated, with estimates that roughly 6,000 employees at the T-Mobile subsidiary have been laid off as the freshly-merged company closes unwanted prepaid retailers. T-Mobile says the move, which has nothing to do with COVID-19, is just them "optimizing their retail footprint." Industry insiders aren't amused:

"Peter Adderton, the founder of Boost Mobile in Australia and in the U.S. who has been a vocal advocate for the Boost brand and for dealers since the merger was first proposed, figures the latest closures affect about 6,000 people. He cited one dealer who said he has to close 95 stores, some as early as May 1.

In their arguments leading up to the merger finally getting approved, executives at both T-Mobile and Sprint argued that it would not lead to the kind of job losses that many opponents were predicting. They pledged to create jobs, not cut them.

“The whole thing is exactly how we called it, and no one is calling them out. It’s so disingenuous,” Adderton told Fierce, adding that it’s not because of COVID-19. Many retailers in other industries are closing stores during the crisis but plan to reopen once it’s safe to do so."

None of this should be a surprise to anybody. Everybody from unions to Wall Street stock jocks had predicted the deal would trigger anywhere between 15,000 and 30,000 layoffs over time as redundant support, retail, and middle management positions were eliminated. It's what always happens in major US telecom mergers. There is 40 years of very clear, hard data speaking to this point. Yet in a blog post last year (likely to be deleted by this time next year), T-Mobile CEO John Legere not only insisted layoffs would never happen, he effectively accused unions, experts, consumer groups, and a long line of economists of lying:

"This merger is all about creating new, high-quality, high-paying jobs, and the New T-Mobile will be jobs-positive from Day One and every day thereafter. That’s not just a promise. That’s not just a commitment. It’s a fact....These combined efforts will create nearly 5,600 new American customer care jobs by 2021. And New T-Mobile will employ 7,500+ more care professionals by 2024 than the standalone companies would have."

That was never going to happen. Less competition and revolving door, captured regulators and a broken court system means there's less than zero incentive for T-Mobile to do much of anything the company promised while it was wooing regulators. And of course such employment growth is even less likely to happen under a pandemic, which will provide "wonderful" cover for cuts that were going to happen anyway.

Having watched more telecom megadeals like this than I can count, what usually happens is the companies leave things generally alone for about a year to keep employees calm and make it seem like deal critics were being hyperbolic. Then, once the press and public is no longer paying attention (which never takes long), the hatchets come out and the downsizing begins. When the layoffs and reduced competition inevitably arrives, they're either ignored or blamed on something else. In this case, inevitably, COVID-19.

In a few years, the regulators who approved the deal will have moved on to think tank, legal or lobbying positions at the same companies they "regulated." The same press that over-hyped pre-merger promises won't follow back up, because there's no money in that kind of hindsight policy reporting or consumer advocacy. And executives like John Legere (who just quit T-Mobile after selling his $17.5 million NYC penthouse to Giorgio Armani) are dutifully rewarded, with the real world market and human cost of mindless merger mania quickly and intentionally forgotten.




9

Hedge Fund 'Asshole' Destroying Local News & Firing Reporters Wants Google & Facebook To Just Hand Him More Money

Have you heard of Heath Freeman? He's a thirty-something hedge fund boss, who runs "Alden Global Capital," which owns a company misleadingly called "Digital First Media." His business has been to buy up local newspapers around the country and basically cut everything down to the bone, and just milk the assets for whatever cash they still produce, minus all the important journalism stuff. He's been called "the hedge fund asshole", "the hedge fund vampire that bleeds newspapers dry", "a small worthless footnote", the "Gordon Gecko" of newspapers and a variety of other fun things.

Reading through some of those links above, you find a standard playbook for Freeman's managing of newspapers:

These are the assholes who a few years ago bought the Denver Post, once one of the best regional newspapers in the country, and hollowed it out into a shell of its former self, then laid off some more people. Things got so bad that the Post’s own editorial board rebelled, demanding that if “Alden isn’t willing to do good journalism here, it should sell the Post to owners who will.”

And here's one of the other links from above telling a similar story:

The Denver newsroom was hardly alone in its misery. In Northern California, a combined editorial staff of 16 regional newspapers had reportedly been slashed from 1,000 to a mere 150. Farther down the coast in Orange County, there were according to industry analyst Ken Doctor, complained of rats, mildew, fallen ceilings, and filthy bathrooms. In her Washington Post column, media critic Margaret Sullivan called Alden “one of the most ruthless of the corporate strip-miners seemingly intent on destroying local journalism.”

And, yes, I think it's fair to say that many newspapers did get a bit fat and happy with their old school monopolistic hold on the news market pre-internet. And many of them failed to adapt. And so, restructuring and re-prioritizing is not a bad idea. But that's not really what's happening here. Alden appears to be taking profitable (not just struggling) newspapers, and squeezing as much money out of them directly into Freeman's pockets, rather than plowing it back into actual journalism. And Alden/DFM appears to be ridiculously profitable for Freeman, even as the journalism it produces becomes weaker and weaker. Jim Brady called it "combover journalism." Basically using skeleton staff to pretend to really be covering the news, when it's clear to everyone that it's not really doing the job.

All of that is prelude to the latest news that Freeman, who basically refuses to ever talk to the media, has sent a letter to other newspaper bosses suggesting they collude to force Google and Facebook to make him even richer.

You can see the full letter here:


Let's go through this nonsense bit by bit, because it is almost 100% nonsense.

These are immensely challenging times for all of us in the newspaper industry as we balance the two equally important goals of keeping the communities we serve fully informed, while also striving to safeguard the viability of our news organizations today and well into the future.

Let's be clear: the "viability" of your newsrooms was decimated when you fired a huge percentage of the local reporters and stuffed the profits into your pockets, rather than investing in the actual product.

Since Facebook was founded in 2004, nearly 2,000 (one in five) newspapers have closed and with them many thousands of newspaper jobs have been lost. In that same time period, Google has become the world's primary news aggregation service, Apple launched a news app with a subsription-based tier and Twitter has become a household name by serving as a distribution service for the content our staffs create.

Correlation is not causation, of course. But even if that were the case, the focus of a well-managed business would be to adapt to the changing market place to take advantage of, say, new distribution channels, new advertising and subscription products, and new ways of building a loyal community around your product. You know, the things that Google, Facebook and Twitter did... which your newspaper didn't do, perhaps because you fired a huge percentage of their staff and re-directed the money flow away from product and into your pocket.

Recent developments internationally, which will finally require online platforms to compensate the news industry are encouraging. I hope we can collaborate to move this issue forward in the United States in a fair and productive way. Just this month, April 2020, French antitrust regulators ordered Google to pay news publishers for displaying snippets of articles after years of helping itself to excerpts for its news service. As regulators in France said, "Google's practices caused a serious and immediate harm to the press sector, while the economic situation of publishers and news agencies is otherwise fragile." The Australian government also recently said that Facebook and Google would have to pay media outlets in the country for news content. The country's Treasurer, Josh Frydenberg noted "We can't deny the importance of creating a level playing field, ensuring a fair go for companies and the appropriate compensation for content."

We have, of course, written about both the plans in France as well as those in Australia (not to mention a similar push in Canada that Freeman apparently missed). Of course, what he's missing is... well, nearly everything. First, the idea that it's Google that's causing problems for the news industry is laughable on multiple fronts.

If newspapers feel that Google is causing them harm by linking to them and sending them traffic, then they can easily block Google, which respects robots.txt restrictions. I don't see Freeman's newspaper doing that. Second, in most of the world, Google does not monetize its Google News aggregation service, so the idea that it's someone making money off of "their" news, is not supported by reality. Third, the idea that "the news" is "owned" by the news organizations is not just laughable, but silly. After all, the news orgs are not making the news. If Freeman is going to claim that news orgs should be compensated for "their" news, then, uh, shouldn't his news orgs be paying the actual people who make the news that they're reporting on? Or is he saying that journalism is somehow special?

Finally, and most importantly, he says all of this as if we haven't seen how these efforts play out in practice. When Germany passed a similar law, Google ended up removing snippets only to be told they had to pay anyway. Google, correctly, said that if it had to license snippets, it would offer a price of $0, or it would stop linking to the sites -- and the news orgs agreed. In Spain, where Google was told it couldn't do this, the company shut down Google News and tons of smaller publications were harmed, not helped, but this policy.

This surely sounds familiar to all of us. It's been more than a decade since Rupert Murdoch instinctively observerd: "There are those who think they have a right to take our news content and use it for their own purposes without contributing a penny to its production... Their almost wholesale misappropriation of our stories is not fair use. To be impolite, it's theft."

First off, it's not theft. As we pointed out at the time, Rupert Murdoch, himself, at the very time he was making these claims, owned a whole bunch of news aggregators himself. The problem was never news aggregators. The problem has always been that other companies are successful on the internet and Rupert Murdoch was not. And, again, the whole "misappropriation" thing is nonsense: any news site is free to block Google's scrapers and if it's "misappropriation" to send you traffic, why do all of these news organizations employ "search engine optimizers" who work to get their sites higher in the rankings? And, yet again, are they paying the people who make the actual news? If not, then it seems like they're full of shit.

With Facebook and Google recently showing some contrition by launching token programs that provide a modest amount of funding, it's heartening to see that the tech giants are beginning to understand their moral and social responsibility to support and safeguard local journalism.

Spare me the "moral and social responsibility to support and safeguard local journalism," Heath. You're the one who cut 1,000 journalism jobs down to 150. Not Google. You're the one who took profitable newspapers that were investing in local journalism, fired a huge number of their reporters and staff, and redirected the even larger profits into your pockets instead of local journalism.

Even if someone wants to argue this fallacy, it should not be you, Heath.

Facebook created the Facebook Journalism Project in 2017 "to forge stronger ties with the news industry and work with journalists and publishers." If Facebook and the other tech behemoths are serious about wanting to "forge stronger ties with the news industry," that will start with properly remunerating the original producers of content.

Remunerating the "original producers"? So that means that Heath is now agreeing to compensate the people who create the news that his remaining reporters write up? Oh, no? He just means himself -- the middleman -- being remunerated directly into his pocket while he continues to cut jobs from his newsroom while raking in record profits? That seems... less compelling.

Facebook, Google, Twitter, Apple News and other online aggregators make billions of dollars annually from original, compelling content that our reporters, photographers and editors create day after day, hour after hour. We all know the numbers, and this one underscores the value of our intellectual property: The New York Times reported that in 2018, Google alone conservatively made $4.7 billion from the work of news publishers. Clearly, content-usage fees are an appropriate and reasonable way to help ensure newspapers exist to provide communities across the country with robust high-quality local journalism.

First of all, the $4.7 billion is likely nonsense, but even if it were accurate, Google is making that money by sending all those news sites a shit ton of traffic. Why aren't they doing anything reasonable to monetize it? And, of course, Digital First Media has bragged about its profitability, and leaked documents suggest its news business brought in close to a billion dollars in 2017 with a 17% operating margin, significantly higher than all other large newspaper chains.

This is nothing more than "Google has money, we want more money, Google needs to give us the money." There is no "clearly" here and "usage fees" are nonsense. If you don't want Google's traffic, put up robots.txt. Google will survive, but your papers might not.

One model to consider is how broadcast television stations, which provide valuable local news, successfully secured sizable retransmission fees for their programming from cable companies, satellite providers and telcos.

There are certain problems with retransmission fees in the first place (given that broadcast television was, by law, freely transmitted over the air in exchange for control over large swaths of spectrum), and the value they got was in having a large audience to advertise too. But, more importantly, retransmission involved taking an entire broadcast channel and piping it through cable and satellite to make things easier for TV watchers who didn't want to switch between an antenna and a cable (or satellite receiver). An aggregator is not -- contrary to what one might think reading Freeman's nonsense -- retransmitting anything. It's linking to your content and sending you traffic on your own site. The only things it shows are a headline and (sometimes) a snippet to attract more traffic.

There are certainly other potential options worth of our consideration -- among them whether to ask Congress about revisiting thoughtful limitations on "Fair Use" of copyrighted material, or seeking judicial review of how our trusted content is misused by others for their profit. By beginning a collective dialogue on these topics we can bring clarity around the best ways to proceed as an industry.

Ah, yes, let's throw fair use -- the very thing that news orgs regularly rely on to not get sued into the ground -- out the window in an effort to get Google to funnel extra money into Heath Freeman's pockets. That sounds smart. Or the other thing. Not smart.

And "a collective dialogue" in this sense appears to be collusion. As in an antitrust violation. Someone should have maybe mentioned that to Freeman.

Our newspaper brands and operations are the engines that power trust local news in communities across the United States.

Note that it's the brands and operations -- not journalists -- that he mentions here. That's a tell.

Fees from those who use and profit from our content can help continually optimize our product as well as ensure our newsrooms have the resources they need.

Again, Digital First Media, is perhaps the most profitable newspaper chain around. And it just keeps laying off reporters.

My hope is that we are able to work together towards the shared goal of protecting and enhancing local journalism.

You first, Heath, you first.

So, basically, Heath Freeman, who has spent decade or so buying up profitable newspapers, laying off a huge percentage of their newsrooms, leaving a shell of a husk in their place, then redirecting the continued profits (often that exist solely because of the legacy brand) into his own pockets rather than in journalism... wants the other newspapers to collude with him to force successful internet companies who send their newspapers a ton of free traffic to pay him money for the privilege of sending them traffic.

Sounds credible.




9

Appeals Court Says Prosecutors Who Issued Fake Subpoenas To Crime Victims Aren't Shielded By Absolute Immunity

For years, the Orleans Parish District Attorney's Office in Louisiana issued fake subpoenas to witnesses and crime victims. Unlike subpoenas used in ongoing prosecutions, these were used during the investigation process to compel targets to talk to law enforcement. They weren't signed by judges or issued by court clerks but they did state in bold letters across the top that "A FINE AND IMPRISONMENT MAY BE OPPOSED FOR FAILURE TO OBEY THIS NOTICE."

Recipients of these bogus subpoenas sued the DA's office. In early 2019, a federal court refused to grant absolute immunity to the DA's office for its use of fake subpoenas to compel cooperation from witnesses. The court pointed out that issuing its own subpoenas containing threats of imprisonment bypassed an entire branch of the government to give the DA's office power it was never supposed to have.

Allegations that the Individual Defendants purported to subpoena witnesses without court approval, therefore, describe more than a mere procedural error or expansion of authority. Rather, they describe the usurpation of the power of another branch of government.

The court stated that extending immunity would be a judicial blessing of this practice, rather than a deterrent against continued abuse by the DA's office.

The DA's office appealed. The Fifth Circuit Appeals Court took the case, but it seemed very unimpressed by the office's assertions. Here's how it responded during oral arguments earlier this year:

“Threat of incarceration with no valid premise?” Judge Jennifer Elrod said at one point during arguments. She later drew laughter from some in the audience when she said, “This argument is fascinating.”

“These are pretty serious assertions of authority they did not have,” said Judge Leslie Southwick, who heard arguments with Elrod and Judge Catharina Haynes.

The Appeals Court has released its ruling [PDF] and it will allow the lawsuit to proceed. The DA's office has now been denied immunity twice. Absolute immunity shields almost every action taken by prosecutors during court proceedings. But these fake subpoenas were sent to witnesses whom prosecutors seemingly had no interest in ever having testify in court. This key difference means prosecutors will have to face the state law claims brought by the plaintiffs.

Based upon the pleadings before us at this time, it could be concluded that Defendants’ creation and use of the fake subpoenas was not “intimately associated with the judicial phase of the criminal process,” but rather fell into the category of “those investigatory functions that do not relate to an advocate’s preparation for the initiation of a prosecution or for judicial proceedings.” See Hoog-Watson v. Guadalupe Cty., 591 F.3d 431, 438 (5th Cir. 2009)

[...]

Defendants were not attempting to control witness testimony during a break in judicial proceedings. Instead, they allegedly used fake subpoenas in an attempt to pressure crime victims and witnesses to meet with them privately at the Office and share information outside of court. Defendants never used the fake subpoenas to compel victims or witnesses to testify at trial. Such allegations are of investigative behavior that was not “intimately associated with the judicial phase of the criminal process.”

Falling further outside the judicial process was the DA's office itself, which apparently felt the judicial system didn't need to be included in its subpoena efforts.

In using the fake subpoenas, Individual Defendants also allegedly intentionally avoided the judicial process that Louisiana law requires for obtaining subpoenas.

The case returns to the lower court where the DA's office will continue to face the state law claims it hoped it would be immune from. The Appeals Court doesn't say the office won't ultimately find some way to re-erect its absolute immunity shield, but at this point, it sees nothing on the record that says prosecutors should be excused from being held responsible for bypassing the judicial system to threaten crime victims and witnesses with jail time.




9

Harrisburg University Researchers Claim Their 'Unbiased' Facial Recognition Software Can Identify Potential Criminals

Given all we know about facial recognition tech, it is literally jaw-dropping that anyone could make this claim… especially without being vetted independently.

A group of Harrisburg University professors and a PhD student have developed an automated computer facial recognition software capable of predicting whether someone is likely to be a criminal.

The software is able to predict if someone is a criminal with 80% accuracy and with no racial bias. The prediction is calculated solely based on a picture of their face.

There's a whole lot of "what even the fuck" in CBS 21's reprint of a press release, but let's start with the claim about "no racial bias." That's a lot to swallow when the underlying research hasn't been released yet. Let's see what the National Institute of Standards and Technology has to say on the subject. This is the result of the NIST's examination of 189 facial recognition AI programs -- all far more established than whatever it is Harrisburg researchers have cooked up.

Asian and African American people were up to 100 times more likely to be misidentified than white men, depending on the particular algorithm and type of search. Native Americans had the highest false-positive rate of all ethnicities, according to the study, which found that systems varied widely in their accuracy.

The faces of African American women were falsely identified more often in the kinds of searches used by police investigators where an image is compared to thousands or millions of others in hopes of identifying a suspect.

Why is this acceptable? The report inadvertently supplies the answer:

Middle-aged white men generally benefited from the highest accuracy rates.

Yep. And guess who's making laws or running police departments or marketing AI to cops or telling people on Twitter not to break the law or etc. etc. etc.

To craft a terrible pun, the researchers' claim of "no racial bias" is absurd on its face. Per se stupid af to use legal terminology.

Moving on from that, there's the 80% accuracy, which is apparently good enough since it will only threaten the life and liberty of 20% of the people it's inflicted on. I guess if it's the FBI's gold standard, it's good enough for everyone.

Maybe this is just bad reporting. Maybe something got copy-pasted wrong from the spammed press release. Let's go to the source… one that somehow still doesn't include a link to any underlying research documents.

What does any of this mean? Are we ready to embrace a bit of pre-crime eugenics? Or is this just the most hamfisted phrasing Harrisburg researchers could come up with?

A group of Harrisburg University professors and a Ph.D. student have developed automated computer facial recognition software capable of predicting whether someone is likely going to be a criminal.

The most charitable interpretation of this statement is that the wrong-20%-of-the-time AI is going to be applied to the super-sketchy "predictive policing" field. Predictive policing -- a theory that says it's ok to treat people like criminals if they live and work in an area where criminals live -- is its own biased mess, relying on garbage data generated by biased policing to turn racist policing into an AI-blessed "work smarter not harder" LEO equivalent.

The question about "likely" is answered in the next paragraph, somewhat assuring readers the AI won't be applied to ultrasound images.

With 80 percent accuracy and with no racial bias, the software can predict if someone is a criminal based solely on a picture of their face. The software is intended to help law enforcement prevent crime.

There's a big difference between "going to be" and "is," and researchers using actual science should know better than to use both phrases to describe their AI efforts. One means scanning someone's face to determine whether they might eventually engage in criminal acts. The other means matching faces to images of known criminals. They are far from interchangeable terms.

If you think the above quotes are, at best, disjointed, brace yourself for this jargon-fest which clarifies nothing and suggests the AI itself wrote the pullquote:

“We already know machine learning techniques can outperform humans on a variety of tasks related to facial recognition and emotion detection,” Sadeghian said. “This research indicates just how powerful these tools are by showing they can extract minute features in an image that are highly predictive of criminality.”

"Minute features in an image that are highly predictive of criminality." And what, pray tell, are those "minute features?" Skin tone? "I AM A CRIMINAL IN THE MAKING" forehead tattoos? Bullshit on top of bullshit? Come on. This is word salad, but a salad pretending to be a law enforcement tool with actual utility. Nothing about this suggests Harrisburg has come up with anything better than the shitty "tools" already being inflicted on us by law enforcement's early adopters.

I wish we could dig deeper into this but we'll all have to wait until this excitable group of clueless researchers decide to publish their findings. According to this site, the research is being sealed inside a "research book," which means it will take a lot of money to actually prove this isn't any better than anything that's been offered before. This could be the next Clearview, but we won't know if it is until the research is published. If we're lucky, it will be before Harrisburg patents this awful product and starts selling it to all and sundry. Don't hold your breath.




9

Senator Wyden And Others Introduce Bill Calling The DOJ's Bluff Regarding Its Attempt To Destroy Section 230 & Encryption

One of the key points we've been making concerning Attorney General William Barr and his DOJ's eager support for the terrible EARN-IT Act, is that much of it really seems to be to cover up the DOJ's own failings in fighting child porn and child exploitation. The premise behind the EARN IT Act is that there's a lot of child exploitation/child abuse material found on social media... and that social media companies should do more to block that content. Of course, if you step back and think about it, you'd quickly realize that this is a form of sweeping the problem under the rug. Rather than actually tracking down and arresting those exploiting and abusing children, it's demanding private companies just hide the evidence of those horrific acts.

And why might the DOJ and others be so supportive of sweeping evidence under the rug and hiding it? Perhaps because the DOJ and Congress have literally failed to live up to their mandates under existing laws to actually fight child exploitation. Barr's DOJ has been required under law to produce reports showing data about internet crimes against children, and come up with goals to fight those crimes. It has produced only two out of the six reports that were mandated over a decade ago. At the same time, Congress has only allocated a very small budget to state and local law enforcement for fighting internet child abuse. While the laws Congress passed say that Congress should give $60 million to local law enforcement, it has actually allocated only about half of that. Oh, and Homeland Security took nearly half of its "cybercrimes" budget and diverted it to immigration enforcement, rather than fighting internet crimes such as child exploitation.

So... maybe we should recognize that the problem isn't social media platforms, but the fact that Congress and law enforcement -- from local and state up to the DOJ -- have literally failed to do their job.

At least some elected officials have decided to call the DOJ's bluff on why we need the EARN IT Act. Led by Senator Ron Wyden (of course), Senators Kirsten Gillbrand, Bob Casey, Sherrod Brown and Rep. Anna Eshoo have introduced a new bill to actually fight child sex abuse online. Called the Invest in Child Safety Act, it would basically make law enforcement do its job regarding this stuff.

The Invest in Child Safety Act would direct $5 billion in mandatory funding to investigate and target the pedophiles and abusers who create and share child sexual abuse material online. And it would create a new White House office to coordinate efforts across federal agencies, after DOJ refused to comply with a 2008 law requiring coordination and reporting of those efforts. It also directs substantial new funding for community-based efforts to prevent children from becoming victims in the first place.

Basically, the bill would do a bunch of things to make sure that law enforcement is actually dealing with the very real problem of child exploitation, rather than demanding that internet companies (1) sweep evidence under the rug, and (2) break encryption:

  • Quadruple the number of prosecutors and agents in DOJ’s Child Exploitation and Obscenity Section from 30 FTEs to 120 FTEs;
  • Add 100 new agents and investigators for the Federal Bureau of Investigation’s Innocent Images National Initiative, Crimes Against Children Unit, Child Abduction Rapid Deployment Teams, and Child Exploitation and Human Trafficking Task Forces;
  • Fund 65 new NCMEC analysts, engineers, and mental health counselors, as well as a major upgrade to NCMEC’s technology platform to enable the organization to more effectively evaluate and process CSAM reports from tech companies;
  • Double funding for the state Internet Crimes Against Children (ICAC) Task Forces;
  • Double funding for the National Criminal Justice Training Center, to administer crucial Internet Crimes Against Children and Missing and Exploited Children training programs;
  • Increase funding for evidence-based programs, local governments and non-federal entities to detect, prevent and support victims of child sexual abuse, including school-based mental health services and prevention programs like the Children’s Advocacy Centers and the HHS’ Street Outreach Program;
  • Require tech companies to increase the time that they hold evidence of CSAM, in a secure database, to enable law enforcement agencies to prosecute older cases;
  • Establish an Office to Enforce and Protect Against Child Sexual Exploitation, within the Executive Office of the President, to direct and streamline the federal government’s efforts to prevent, investigate and prosecute the scourge of child exploitation;
  • Require the Office to develop an enforcement and protection strategy, in coordination with HHS and GAO; and
  • Require the Office to submit annual monitoring reports, subject to mandatory Congressional testimony to ensure timely execution.
While I always have concerns about law enforcement mission creep and misguided targeting of law enforcement efforts, hopefully everyone can agree that child exploitation does remain a very real problem, and one that law enforcement should be investigating and going after those who are actually exploiting and abusing children. This bill would make that possible, rather than the alternative approach of just blaming the internet companies for law enforcement's failure to take any of this seriously.




9

New AT&T CEO Says You're A Moron If You Don't Use AT&T Streaming Services

Last week AT&T CEO Randall Stephenson stepped down after his $150 billion bid to dominate the video advertising space fell flat on its face. Stephenson's tenure was plagued by no shortage of scandals, though it was his failures on the TV front that likely cost him his comfy seat as one of the highest paid executives in America.

After spending $150 billion on several dubious megamergers (most notably the 2015 purchase of a satellite TV provider DirecTV), Stephenson saddled the company with an ocean of debt. So much debt it was forced to raise rates on customers in the middle of one of the biggest transformational shifts in the TV sectors in decades (cord cutting and the rise of streaming video). And while Stephenson deserves credit for at least trying to get out ahead of the trend, his tenure was pockmarked by a long line of dubious decisions that directly contributed to the company losing more than 3.2 million pay TV subscribers last year alone.

But Stephenson's replacement, AT&T executive John Stankey, doesn't seem much better. In a profile piece last week, Bloomberg described fairly idiotic and cocky recent comments by Stankey as "blunt." Among them was the claim that "nobody knows as much about TV as me," and the insistence that those who don't subscribe to AT&T's confusing assortment of discount TV streaming services must certainly be stupid:

"When pitching AT&T’s new HBO Max streaming platform, he told the audience that anyone unwilling to pay $15 a month for the service had a low IQ. At a town hall with HBO employees last year, Stankey said the network had to dramatically increase its programming output, comparing the work ahead to childbirth. Once, when a Time Warner veteran criticized an idea during a meeting, Stankey replied, “I know more about television than anybody."

Yeah, sounds like just the guy to right the ship, and earn employee and customer respect. Especially for a company plagued with no shortage of hubris that believed it could just bully, bullshit, and bribe its way to industry domination.

One of the major reasons Stephenson was ejected was courtesy of recently hyperactive hedge fund Elliott Management, which holds a massive stake in AT&T. Elliott complained that Stephenson had become megamerger happy and, despite eliminating 37,000 jobs to recoup merger debt (despite billions in regulatory FCC favors and a $42 billion Trump tax cut) wasn't doing enough firing. Reports now suggest that Elliott didn't much like Stankey either, but settled on him after external options proved even more underwhelming:

"Elliott, the hedge fund run by Paul Singer, remains skeptical of incoming CEO John Stankey’s decision-making but has decided his understanding of AT&T’s sprawling assets makes him a better candidate to take over for Stephenson than any external candidate, according to the people...Elliott was skeptical of Stankey’s decision-making as an architect of AT&T’s acquisitions of DirecTV and Time Warner. It advocated that AT&T focus on divesting assets and lowering debt, pushing the largest U.S. wireless company to sell DirecTV, one of the assets Stankey has steadfastly defended."

In short nobody in this drama seems to know what they're actually doing. Few were happy with AT&T's previous leadership. And few seem happy with AT&T's new leadership, who apparently thinks he's a TV sector super genius, and you're a moron if you don't subscribe to AT&T's generally underwhelming TV offerings. Surely this will all go swimmingly.




9

Amazon Sued For Saying You've 'Bought' Movies That It Can Take Away From You

For well over a decade we've talked about the many problems that arise when copyright is compared to "property" -- and people try to simply move over concepts from physical, tangible property into the world of digital. A key aspect of this: when you "purchase" something digital online, is it really a "purchase" or is it a "license" (especially a license that could be revoked)? If it was a true "purchase" then you should own it and the seller shouldn't be able to take it back. But in practice, over and over and over again, we've seen stories of people having things they supposedly "bought" disappear. The situation is so crazy that we've referred to it as Schrödinger's Download, in that many copyright holders and retailers would like the very same thing to be a "sale" some of the time, and a "license" some of the time (the "times" for each tend to be when it hurts the consumers the most). This has, at times, seeped into physical goods, where they've tried to add "license agreements" to physical products. Or, worse, when some copyright folks claimed that buying a DVD means you don't actually own what you bought, but rather are merely "purchasing access" to the content, and that could be revoked.

Anyway, I'm amazed that we don't see more lawsuits about this kind of thing -- but one was recently filed in California. Someone named Amanda Caudel is suing Amazon for saying that you've "purchased" a video download, which Amazon might disappear from your library whenever it wants. As the lawsuit makes clear, Amazon directly says that you are buying the movie (as opposed to renting it). From the lawsuit filing itself:

And, they point out, in your account there's a listing of "Your Video Purchases & Rentals." But, the lawsuit claims, what you purchase doesn't seem to behave like a real purchase:

Reasonable consumers will expect that the use of a “Buy” button and the representation that their Video Content is a “Purchase” means that the consumer has paid for full access to the Video Content and, like any bought product, that access cannot be revoked.

Unfortunately for consumers who chose the “Buy” option, this is deceptive and untrue. Rather, the ugly truth is that Defendant secretly reserves the right to terminate the consumers’ access and use of the Video Content at any time, and has done so on numerous occasions, leaving the consumer without the ability to enjoy their already-bought Video Content.

Defendant’s representations are misleading because they give the impression that the Video Content is purchased – i.e. the person owns it - when in fact that is not true because Defendant or others may revoke access to the Video Content at any time and for any reason.

In so representing the “Purchase” of Video Content as true ownership of the content, Defendant took advantage of the (1) cognitive shortcuts made at the point-of-sale, e.g. Rent v. Buy and (2) price of the Video Content, which is akin to an outright purchase versus a rental.

Though some consumers may get lucky and never lose access to any of their paid-for media, others may one day find that their Video Content is now completely inaccessible. Regardless, all consumers have overpaid for the Video Content because they are not in fact owners of the Video Content, despite have paid extra money to “Buy” the product.

The plaintiff (or rather, her lawyers) are trying to make this a class action lawsuit, and are arguing that (among other things) this is false advertising. I am, not surprisingly, sympathetic to the plaintiff -- and remain disappointed at how copyright and similar restrictions are being used to chip away at ownership and actual property rights. That said... I'm not that optimistic the case will get very far. In the past, companies have been able to wiggle out of similar claims, and I'm pretty sure that Amazon tries to push disputes like this to binding arbitration, meaning that the lawsuit may be dead on arrival.

Still, it's yet another reminder of how copyright is chipping away at real property.




9

No, Congress Can't Fix The Broken US Broadband Market In A Mad Dash During A Pandemic

COVID-19 has shone a very bright light on the importance of widely available, affordable broadband. Nearly 42 million Americans lack access to any broadband whatsoever--double FCC estimates. And millions more can't afford service thanks to a lack of competition among very powerful, government pampered telecom monopolies.

As usual, with political pressure mounting to "do something," DC's solution is going to be to throw more money at the problem:

"The plan unveiled Thursday would inject $80 billion over five years into expansion of broadband infrastructure into neglected rural, suburban and urban areas, with an emphasis on communities with high levels of poverty. It includes measures to promote rapid building of internet systems, such as low-interest financing for infrastructure projects."

To be clear, subsidies often do help shore up broadband availability at coverage. The problem is that the United States government, largely captured by telecom giants with a vested interest in protecting regional monopolies, utterly sucks at it.

Despite ample pretense to the contrary, nobody in the US government actually knows where broadband is currently available. Data supplied by ISPs has never been rigorously fact-checked by a government fearful of upsetting deep-pocketed campaign contributors (and valued NSA partners). As a result, our very expensive ($350 million at last count) FCC broadband coverage map creates a picture of availability and speed that's complete fantasy. It's theater designed to disguise the fact that US broadband is mediocre on every broadband metric that matters. Especially cost.

While there has been some effort to fix the mapping problem via recent legislation, the FCC still needs several years (and more money) to do so. And while you'd think this would be more obvious, you can't fix a problem you can't even effectively measure. There's also not much indication that the $80 billion, while potentially well intentioned, would actually get where it needs to go. Especially right now, when federal oversight is effectively nonexistent.

You may or may not have noticed this, but US telecom is a corrupt, monopolized mess. Giants like AT&T and Comcast all but own state and federal legislatures and, in many instances, literally write the law. Feckless regulators bend over backward to avoid upsetting deep-pocketed campaign contributors. So when subsidies are doled out, they very often don't end up where regulators and lawmakers intended. There's an endless ocean of examples where these giants took billions in taxpayer subsidies to deploy fiber networks that are never fully delivered.

If you were to do meaningful audit (which we've never done because again we're not willing to adequately track the problem or stand up to dominant incumbent corporations) you'd very likely find that American taxpayers already paid for fiber to every home several times over.

That's not to say is that there aren't things Congress could do to help the disconnected during COVID-19. Libraries for example have been begging the FCC for the ability to offer expanded WiFi hotspot access (via mobile school buses) to disconnected communities without running afoul of FCC ERate rules. But while the FCC said libraries can leave existing WiFi on without penalty, it has been mute about whether they can extend coverage outside of library property. Why? As a captured agency, the FCC doesn't like anything that could potentially result in Comcast or AT&T making less money.

None of this is to say that we shouldn't subsidize broadband deployment once we get a handle on the mapping problem. But it's a fantasy to think we're going to immediately fix a 30 year old problem with an additional $80 billion in a mad dash during a pandemic. US broadband dysfunction was built up over decades. It's the product of corruption and rot that COVID-19 is exposing at every level of the US government. The only way to fix it is to stand up to industry, initiate meaningful reform, adopt policies that drive competition to market, and jettison feckless lawmakers and regulators whose dominant motivation is in protecting AT&T, Verizon, Comcast, and Spectrum revenues.

Maybe the pandemic finally provides the incentive to actually do that, but until the US does, these subsidization efforts are largely theater.




9

Utah Pulls Plug On Surveillance Contractor After CEO's Past As A White Supremacist Surfaces

A couple of months ago, a records request revealed a private surveillance contractor had access to nearly every piece of surveillance equipment owned and operated by the state of Utah. Banjo was the company with its pens in all of the state's ink. Banjo's algorithm ran on top of Utah's surveillance gear: CCTV systems, 911 services, location data for government vehicles, and thousands of traffic cameras.

All of this was run through Banjo's servers, which are conveniently located in Utah government buildings. Banjo's offering is of the predictive policing variety. The CEO claims its software can "find crime" without any collateral damage to privacy. This claim is based on the "anonymization" of harvested data -- a term that is essentially meaningless once enough data is collected.

This partnership is now on the rocks, thanks to an investigation by Matt Stroud and OneZero. Banjo's CEO, Damien Patton, apparently spent a lot of his formative years hanging around with white supremacists while committing crimes.

In grand jury testimony that ultimately led to the conviction of two of his associates, Patton revealed that, as a 17-year-old, he was involved with the Dixie Knights of the Ku Klux Klan. On the evening of June 9, 1990 — a month before Patton turned 18 — Patton and a Klan leader took a semi-automatic TEC-9 pistol and drove to a synagogue in a Nashville suburb. With Patton at the wheel, the Ku Klux Klan member fired onto the synagogue, destroying a street-facing window and spraying bullets and shattered glass near the building’s administrative offices, which were next to that of the congregation’s rabbi. No one was struck or killed in the shooting. Afterward, Patton hid on the grounds of a white supremacist paramilitary training camp under construction before fleeing the state with the help of a second Klan member.

If you're wondering where the state of Utah's due diligence is in all of this, there's a partial explanation for this lapse: the feds, who brought Patton in, screwed up on their paperwork.

Because Patton’s name was misspelled in the initial affidavit of probable cause filed in Brown’s case — an FBI agent apparently spelled Damien with an “o” rather than an “e” — any search of a federal criminal court database for “Damien Patton” would not have surfaced the affidavit.

Now that his past has been exposed, the state of Utah has announced it won't be working with Banjo.

The Utah attorney general’s office will suspend use of a massive surveillance system after a news report showed that the founder of the company behind the effort was once an active participant in a white supremacist group and was involved in the shooting of a synagogue.

The AG's office can only shut down so much of Banjo's surveillance software. Other government agencies not directly controlled by the state AG are making their own judgment calls. The University of Utah is suspending its contract with Banjo, but the state's Department of Public Safety has only gone so far as to "launch a review" of its partnership with the company. City agencies and a number of police departments who have contracts with Banjo have yet to state whether they will be terminating theirs.

And the AG's reaction isn't a ban. The office appears to believe it might be able to work through this.

“While we believe Mr. Patton’s remorse is sincere and believe people can change, we feel it’s best to suspend use of Banjo technology by the Utah attorney general’s office while we implement a third-party audit and advisory committee to address issues like data privacy and possible bias,” Piatt said. “We recommend other state agencies do the same.

It's refreshing to hear a prosecutor state that it's possible for former criminals to turn their lives around and become positive additions to their communities, but one gets the feeling this sort of forgiveness is only extended to ex-cons who have something to offer law enforcement agencies. Everyone else is just their rap sheet for forever, no matter how many years it's been since their last arrest.

The other problem here is the DA's office's tacit admission it did not take data privacy or possible bias into account before granting Banjo access to the state's surveillance equipment, allowing it to set up servers in government buildings, and giving it free rein to dust everything with its unaudited AI pixie dust.

These are all steps that should have taken place before any of this was implemented, even if the state had chosen to do business with a company with a less controversial CEO. This immediate reaction is the right step to take, but a little proactivity now and then would be a welcome change.




9

Sketchy Gets Sketchier: Senator Loeffler Received $9 Million 'Gift' Right Before She Joined The Senate

Kelly Loeffler is, by far, the wealthiest elected official in Congress, with an estimated net worth of half a billion dollars (the second wealthiest is Montana Rep. Greg Gianforte (famous for his body slamming a journalist for asking him a question and then lying to the police about it)). Loeffler may be used to getting away with tearing up the red tape in her previous life, but in Congress, that often looks pretty corrupt. In just the last few months since she was appointed, there were concerns about her stock sales and stock purchases, which seemed oddly matched to information she was getting during briefings regarding the impact of COVID-19. She has since agreed to convert all her stock holdings to managed funds outside of her control (something every elected official should do, frankly).

Now, the NY Times is noting another form of what we've referred to as "soft corruption" -- moves that might technically be legal, but which sure look sketchy as hell to any regular non-multimillionaire elected official. In this case, Senator Loeffler received what was, in effect, a gift worth $9 million from her former employer, Intercontinental Exchange (the company that runs the NY Stock Exchange, and where her husband is the CEO).

The key issue was that since she was leaving the job to go join the Senate, she had a bunch of unvested stock. For normal people, if you leave a job before your stock vests, too bad. That's the deal. The vesting period is there for a reason. But for powerful, rich people, apparently the rules change. Intercontinental Exchange changed the rules to grant her the compensation that she wasn't supposed to get, because why not?

Ms. Loeffler, who was appointed to the Senate in December and is now in a competitive race to hold her seat, appears to have received stock and other awards worth more than $9 million from the company, Intercontinental Exchange, according to a review of securities filings by The New York Times, Ms. Loeffler’s financial disclosure form and interviews with compensation and accounting experts. That was on top of her 2019 salary and bonus of about $3.5 million.

The additional compensation came in the form of shares, stock options and other instruments that Ms. Loeffler had previously been granted but was poised to forfeit by leaving the company. Intercontinental Exchange altered the terms of the awards, allowing her to keep them. The largest component — which the company had previously valued at about $7.8 million — was a stake in an Intercontinental Exchange subsidiary that Ms. Loeffler had been running.

The entitlement factor oozes out of the statement put out from her office in response to this:

“Kelly left millions in equity compensation behind to serve in public office to protect freedom, conservative values and economic opportunity for all Georgians,” said Stephen Lawson, a spokesman for Ms. Loeffler. “The obsession of the liberal media and career politicians with her success shows their bias against private sector opportunity in favor of big government.”

No, Stephen, that's not the issue. The issue is that normal people who haven't vested yet, don't get to have the board change the vesting rules as you're leaving to go legislate in order to give you a $9 million windfall you didn't earn because it hadn't vested. If it had just been a question of compensation, no one would be complaining. If she had played by the rules that everyone else played by, lived up to her end of the contract and vested the equity, then no big deal. The problem is the last minute changing of the rules to get her a pretty massive payout (perhaps not by her standards, but by anyone else's).

Indeed, the details show that this wasn't just a timing thing, like a standard vesting deal, but that Loeffler was supposed to reach certain milestones to be able to get the equity. She didn't, but she still gets it. That's the part that has people concerned.

In February 2019, Intercontinental Exchange gave Ms. Loeffler a stake in a limited liability company that owned a stake in Bakkt, according to a March 2019 securities filing. The company at the time estimated the award was worth $15.6 million. But Ms. Loeffler would be able to cash in on the award only under certain circumstances, including if Bakkt’s value soared or if it became a publicly traded company.

When Ms. Loeffler stepped down from the company less than 10 months later, she was poised to forfeit much of that Bakkt stake. But Intercontinental Exchange sped up the vesting process so that she got half of it immediately.

The company, of course, puts a nice spin on it, saying "We admire Kelly’s decision to serve her country in the U.S. Senate and did not want to discourage that willingness to serve,” but what else are they going to say anyway?

Still waiting for that supposed swamp draining we keep hearing about.




9

Tales From The Quarantine: People Are Selling 'Animal Crossing' Bells For Real Cash After Layoffs

This seems to be something of a thing. Our last "Tales From the Quarantine" post focused on how television celebrities had taken to offering people help on Twitter with their virtual home decor in the latest Animal Crossing game. This post also involves Animal Crossing, but in a much more direct way. Due to the COVID-19 pandemic, there are enormous numbers of people who have suddenly found themselves without jobs or regular income. And, so, they've turned to irregular sources of income instead.

Ars Technica has an interesting interview with one of many people who have taken to the internet to indirectly sell Animal Crossing's "bells", the currency of the game.

In the midst of COVID-19, some New Horizons players are turning to World of Warcraft-style gold farming methods to make ends meet. In early April, Lexy, a 23-year-old recent college grad, created a Twitter account offering up bells (Animal Crossing’s in-game currency) for real-world cash (she requested we refer to her by a nickname to avoid potential reprisal from Nintendo). “I got laid off due to COVID so I'm farming bells in ACNH,” she wrote. “I really need to make rent this month so I'm selling 2 mil bells per $5, please message me if interested, I'll give you a discount the more you buy.”

Before setting up this unorthodox income stream, Lexy had been working at a supermarket while developing her animation portfolio. She began exploring the idea of turning bells into cash after showing friends just how much in-game income she’d been making. “One of them asked to legitimately buy some for me,” she recalled in a Twitter interview. “I did some research and found some people selling bells on sites such as eBay, but for pretty ridiculous prices.” (Current prices on eBay seem more competitive, with some sellers offering rare gold tools and gold nuggets to sweeten the deal).

The threat from Nintendo is probably real. After all, unlike some other games where people do this sort of thing, Nintendo's game doesn't include any method for selling in-game resources for real currency. Nintendo is also notoriously prudish about things like this. And, finally, to make an effective go at this sort of thing, it takes some manipulation of the console in a way that is somewhat controversial with gamers generally.

Understandably, Lexy adjusts the clock on her Nintendo Switch to speed up the game’s slow, “natural” money-making cycle of harvesting daily fruit, digging up bells from the ground, and planting a daily “money tree” that can yield big profits. This kind of in-game “time traveling” is controversial practice among casual Animal Crossing players, but it's a practical necessity to maximize real-world bell-farming profits.

As for how much money people like Lexy are bringing in, it's in the four figures, but she wasn't any more specific than that. Payments are made through digital apps like PayPal, after which she visits the game islands of others and deposits the bells.

That all of this is going on during a global pandemic that has some folks farming bells to make ends meet and others with apparently enough disposable income to be buyers is all, of course, deeply strange. But it's also just yet another way technology is having an impact on our lives during the COVID-19 pandemic.