Miami photographer sentenced to 10 years in child-porn case

A Miami-area photographer who secretly videotaped children while they changed clothes in his home studio was sentenced in federal court Friday to 10 years in prison.

Diego Tobias Matrajt, 37, pleaded guilty in September to distribution and possession of child pornography.

Last February, Matrajt distributed 10 images of child pornography to an undercover agent by using a peer-to-peer file sharing program, according to court records.

In April, FBI agents did a search of his home and computers, uncovering 26 video images of boys and girls changing clothes alone in a guest bedroom with their genitalia exposed, records show.

Matrajt admitted surreptitiously video recording children under the age of 12 as they changed clothes in the guest bedroom during photo shoots.

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Stars Tweet Over Gun Control Following Elementary School Shootings In Connecticut — Updated

Celebrities were outraged over the tragic elementary school shooting in Newtown, Conn. on Friday, and many immediately turned to Twitter, to share their sadness.

And some even urged America’s leaders to address gun control.

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“Gun control is our only road to freedom. Freedom from the fear of senselessly losing children. I’m so saddened. WE NEED LAWS NOW,” “Parks and Recreation” actress Rashida Jones Tweeted.

Singer Michelle Branch also touched on the topic in her Tweet, writing, “Gun control people!!! My heart is breaking. As a parent this is my worst nightmare.”

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“Two and a Half Men’s” Holland Taylor wrote, “Just heard re CT shooting coming in from a walk… MY GOD. The “right” to carry concealed weapons … this has become a truly INSANE issue.”

Michael Raymond-James, who plays Neal Cassady on “Once Upon A Time,” also tackled gun control in his Tweet, writing, “Unfortunately, we have more access to assault weapons than we do to quality mental health care. That needs to change. #HowManyMoreTimes.”

Brit Piers Morgan wrote, “Why does any civilian in America need a weapon that can fire 100 rounds of ammunition at rapid speed? Give me ONE good reason?” and added, “#GunControl.”

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Filmmaker Michael Moore Tweeted, “The way to honor these dead children is to demand strict gun control, free mental health care, and an end to violence as public policy.”

“General Hospital” actress Lisa LoCicero also Tweeted about gun control, in the wake of the tragedy, writing, “anyone still not ready for us to err on the side of losing some gun rights at this point, needs to leave the country.”

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“Raising Hope” star Martha Plimpton Tweeted, “When can we talk about it? WHEN? Ever? Never? If not now, when we are staring it in the face, then WHEN? #GunControl.”

Motley Crue singer Vince Neil wrote, “Sad day today. Prayers to all the families. Gun Control!!!”

“True Blood” star Denis O’Hare Tweeted, “When do we get to seriously talk about gun control?”

“Malibu Country” actor Jai Rodriguez also Tweeted about gun control, writing, “Sick over what happened in the world this week. We need better gun laws. My heart goes out to all those affected by the horrors.”

Eric Benet Tweeted, “Half of the U.S. will say,”How dare u bring up gun control at a time like this?!” But the sane half will say,”How dare we not!?” pls RT”

Susan Sarandon wrote, “How much more suffering & loss will it take before we better regulate the sale of arms in our country? Let @NRA know how you feel.”

Jaime King wrote, “We do not have time to wait to tighten gun control- we cannot loose anymore innocent lives. I beg the government to stop F-ing around.”

Jason Biggs Tweeted, “Hey-I love guns. I’ve shot, killed, n eaten my own food-n grown cuz of the experience. But clearly, restrictions need to be put into place.”

Hill Harper ‏Tweeted, “Can we please re-institute the assault weapons ban & a ban on selling high load gun clips.”

Ginnifer Goodwin wrote, “I just emailed my representative & it was super easy. http://m.house.gov/ #guncontrol.”

“General Hospital” star Finola Hughes Tweeted, “I believe that ‘other day’ for debating gun laws is now.”

Mehcad Brook, from the USA series “Necessary Roughness” Tweeted, “Why do we go through more scrutiny getting a driver’s license bcuz cars CAN kill than we do obtaining a gun which ONLY kills?”

Other stars shared their deep sadness over the senseless deaths in Connecticut.

“God have mercy!!!! No one deserves this! Praying for the families of the victims of the Connecticut shooting!! What a Christmas it will be,” Rihanna wrote.

“Everyone reading this PLEASE get on your knees and PRAY for the sweet babies, families, and for everyone hurting in Connecticut right now,” Lady Antebellum singer Hillary Scott Tweeted.

“There have been 31 school shootings since Columbine, 14yrs ago. This time, kindergarteners. #NoWords,” Anika Noni Rose wrote.

Jennifer Hudson Tweeted, “Yal, we need to pray! This can’t keep happening . My mama always said ” if u think you’ve seen it all just keep on living.’”

Oprah Winfrey responded to Jennifer’s Tweet, writing, “@IAMJHUD for sure . Pray and take action.. Another WAKE UP for guns.”

Here’s more of what the stars had to say on Twitter:

Katie Couric: Shocked & saddened to hear this morning’s news… My heart goes out to the families of #SandyHook Elementary children, faculty, staff

Joy Behar: My thoughts and prayers are with the families of Sandy Hook Elementary.

Maksim Chmerkovskiy: I hate the “my heart is with” this and “my prayers go out” that… We ALL need to get f***ing angry and DO something more than ‘feel sad’…

Vivica A. Fox: Wow! It seems like we r gonna have to put metal detectors everywhere and armed guards! Seems like u can’t b safe anywhere!! WTH??

Jack Wagner: OMG prayers 4 those affected by the shooting in Connecticut…so sad

Ian Somerhalder: We are sad.Our hearts,thoughts&help are w/you.Im so sorry to all affected by this.So sorry.May all thelove in the world hug you in this time

Ralph Macchio: There are no words… Prayers #Connecticut

Rachel Dratch: Our weekly mass shootings aren’t happening in other countries. And this time, children? WHEN WILL OUR “LEADERS” PUT AN END TO THIS INSANITY?

Teresa Giudice: On days like this, we should hug our children just a little bit tighter.

Steve Levitan: My thoughts and deepest sympathies are with the victims. I should have said that first, but I’m tired of these tragedies. #standuptothenra

Marlee Matlin: I am numb as the numbers of the dead – children and adults – keep ticking up. #PrayForNewtown

Christina Applegate: There are just no words. Only sorrow. We are all shedding tears today for those families.

Karina Smirnoff: We need to pray for all the families affected by the Newtown, CT school shooting. Absolutely devastating….

Kim Kardashian: These kids come to school to learn, never expecting this tragedy to happen. They didn’t deserve this. Praying for everyone involved!

Brandi Glanville: I can not believe this school shooting, what is wrong with people!!!! My heart is breakking for the kids and families.

Jackie Collins: My heart breaks for the Newtown community…for these families.

Damon Lindelof: I’m not “politicizing” squat. I’m heartbroken, angry, confused and scared and I DO NOT UNDERSTAND WHY THIS KEEPS HAPPENING.

DJ Pauly D: My Prayers Go Out To Everyone Affected By This Horrible Shooting In Connecticut

Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Foreign leaders shocked and saddened by Connecticut tragedy

LONDON — Images of a tearful President Barack Obama speaking after a shooting rampage in Connecticut resonated around the world, with many outside the United States expressing hope Saturday that America's latest school massacre would prompt the country to strengthen gun control.

Shock and sympathy were the initial reactions to the rampage that left 28 people dead, including 20 children at an elementary school — though as dawn broke in the US, questions swirled overseas about the easy access to guns in America.

Jose Manuel Barroso, president of the European Union's executive Commission, said: "Young lives full of hope have been destroyed. On behalf of the European Commission and on my own behalf, I want to express my sincere condolences to the families of the victims of this terrible tragedy."

EPA

British Prime Minister David Cameron addresses a news conference yesterday.

COMPLETE COVERAGE OF SANDY HOOK ELEMENTARY SCHOOL SHOOTING

The gunman, 20-year-old Adam Lanza, killed his mother at their home before beginning his deadly rampage inside the school in Newtown, Connecticut, then committed suicide, police said.

British Prime Minister David Cameron, said he was "deeply saddened" to learn of the "horrific shooting."

"My thoughts are with the injured and those who have lost loved ones," he said. "It is heartbreaking to think of those who have had their children robbed from them at such a young age, when they had so much life ahead of them."

Queen Elizabeth II sent a message to President Barack Obama, saying she was shocked to learn of the "dreadful loss of life" and that the thoughts and prayers of all in the U.K. are with those affected by the events.

Pope Benedict XVI asked the Holy See's secretary of state to "convey his heartfelt grief and the assurance of his closeness in prayer to the victims and their families, and to all those affected by the shocking event," the Vatican said Saturday. It also sent a condolence message to Monsignor Jerald A. Doyle at the diocese in Connecticut that includes Newton.

But amid the messages of condolences, much of the discussion after the Connecticut rampage centered on gun control — a baffling subject for many in Asia and Europe, where mass shootings also have occurred but where access to guns is much more heavily restricted.

Many Twitter users and media personalities in the U.K. immediately invoked Dunblane — a 1996 shooting in that small Scottish town which killed 16 children. That tragedy prompted a campaign that ultimately led to tighter gun controls effectively making it illegal to buy or possess a handgun in the U.K.

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Miami in spotlight at AVCC, other entrepreneurship events

Entrepreneurs from around the world took the stage during this packed week of entrepreneurship events in Miami: Florida International University’s Americas Venture Capital Conference (known as AVCC), HackDay, Wayra’s Global DemoDay and Endeavor’s International Selection Panel.

The events, all part of the first Innovate MIA week, also put the spotlight on Miami as it continues to try to develop into a technology hub for the Americas.

“While I like art, I absolutely love what is happening today... The time has come to become a tech hub in Miami,” said Miami-Dade Mayor Carlos A. Gimenez, who kicked off the venture capital conference on Thursday. He told the audience of 450 investors and entrepreneurs about the county’s $1 million investment in the Launch Pad Tech Accelerator in downtown Miami.

“I have no doubt that this gathering today will produce new ideas and new business ventures that will put our community on a fast track to becoming a center for innovative, tech-driven entrepreneurship,” Gimenez said.

Brad Feld, an early-stage investor and a founder of TechStars, cautioned that won’t happen overnight. Building a startup community can take five, 10, even 15 years, and those leading the effort, who should be entrepreneurs themselves, need to take the long-term view, he told the audience via video. “You can create very powerful entrepreneurial ecosystems in any city... I’ve spent some time in Miami, I think you are off to a great start.”

Throughout the two-day AVCC at the JW Brickell Marriott, as well as the Endeavor and Wayra events, entrepreneurs from around the world pitched their companies, hoping to persuade investors to part with some of their green.

And in some cases, the entrepreneurs could win money, too. During the venture capital conference, 29 companies —including eight from South Florida such as itMD, which connects doctors, patients and imaging facilities to facilitate easy access of records — competed for more than $50,000 in cash and prizes through short “elevator’’ pitches. Each took questions from the judges, then demoed their products or services in the conference “Hot Zone,” a room adjoining the ballroom. Some companies like oLyfe, a platform to organize what people share online, are hoping to raise funds for expansion into Latin America. Others like Ideame, a trilingual crowdfunding platform, were laser focused on pan-Latin American opportunities.

Winning the grand prize of $15,000 in cash and art was Trapezoid Digital Security of Miami, which provides hardware-based security solutions for enterprise and cloud environments. Fotopigeon of Tampa, a photo-sharing and printing service targeting the military and prison niches, scored two prizes.

The conference offered opportunities to hear formal presentations on current trends — among them the surge of start-ups in Brazil; the importance of mobile apps and overheated company valuations — and informal opportunities to connect with fellow entrepreneurs.

Speakers included Gaston Legorburu of SapientNitro, Albert Santalo of CareCloud and Juan Diego Calle of .Co Internet, all South Florida entrepreneurs. Jerry Haar, executive director of FIU’s Pino Global Entrepreneurship Center, which produced the conference with a host of sponsors, said the organizers worked hard to make the conference relevant to both the local and Latin American audience, with panels on funding and recruiting for startups, for instance.

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Miami-Dade elections group to discuss potential changes to state law

An advisory group poring over Miami-Dade elections problems will hold its second meeting Friday, this time to focus on what changes to request from state lawmakers.

County Mayor Carlos Gimenez, who convened the group, and his appointed elections supervisor, Penelope Townsley, already asked Florida Secretary of State Ken Detzner — the state’s chief elections officer — on Tuesday to make several recommendations to Gov. Rick Scott to tweak elections laws.

But the 13-member advisory group might choose to make additional suggestions. And while the meeting with Detzner was more informal, the Miami-Dade group plans to make its requests in writing, and incorporate them into the county’s annual package of policies to lobby for in Tallahassee. County commissioners are scheduled to vote on the legislative package Tuesday.

The 2013 state legislative proposals drafted by the elections department include allowing early-voting sites in more locations — a request Miami-Dade has been making since 2006. State law currently limits the sites to elections offices, city halls and libraries.

The department also plans to ask legislators to reinstate 14 days of early voting. Scott, a Republican, signed a law passed by the GOP-led Legislature last year reducing the number of days to eight, while keeping the total number of hours offered on the books — 96 — the same.

The law also guaranteed one Sunday of early voting, but prohibited voting the Sunday before Election Day. African-American churches with large numbers of Democratic voters had traditionally used that day to bring “souls to the polls.”

About 90,000 fewer Miami-Dade voters cast early ballots in 2012 compared to 2008, according to the department.

The third request proposed by the department would limit the number of words printed on state constitutional amendments on the ballot, keeping them to the same length as county charter amendments. The county caps its ballot measures at 75 words; this year, one of the constitutional amendments took up a full page in Miami-Dade, where ballots are printed in English, Spanish and Creole. The 2012 presidential ballot ran 10 to 12 pages long, depending on the voter’s location, compared to four to six pages in 2008.

Federal law requires that ballots be available in other languages for minorities whose population meets a certain threshold.

In a letter she sent to the mayor last month, U.S. Rep. Frederica Wilson, D-Miami Gardens, recommended that the county print separate ballots in each of the three languages. “Printing all three languages creates the false impression that the ballot is excessively long,” she wrote. It is unclear how that proposal would work.

She also made other requests, including that the county support extending early voting.

Gimenez replied Thursday that most of Wilson’s recommendations “are in line with what we are proposing.”

In addition, the Miami-Dade elections department would like more time to count absentee ballots, which have become an increasingly popular voting method. State law currently allows tallying to begin 15 days prior to Election Day.

Other requests include:

• Remove political party executive committeeman and committeewoman races from the primary ballot in presidential election years, and require the parties to pay for those elections. This change would shorten the ballot, reduce the number of different ballots printed in the county, and save money.

• Do away with the term “absentee ballot” and replace it with “vote by mail.” The mayor has endorsed this change, saying absentee voting is a misnomer because Florida no longer requires that voters provide a reason — such as being ill or out of town — for voting by mail.

• Require that community development district elections be carried out only by mail. This change would shorten the ballot and reduce the number of different ballots. Community development districts are special taxing districts of 1,100 acres or more.

The advisory group will meet at 9 a.m. on the 18th floor of the Stephen P. Clark Government Center, 111 NW First St.

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Online gambling companies struggle to clear EU hurdles

LONDON (Reuters) – A partnership stuck on Friday between bwin.party Digital Entertainment and a Belgian casino group has defused one of many disputes pitting online gambling companies against governments across Europe.

The agreement came a month after bwin.party’s co-CEO was questioned by Belgian authorities in an escalating license dispute the company said was costing it 700,000 euros ($ 916,000) in monthly revenue.

By joining forces with Belcasinos, a unit of local casino owner Group Partouche, bwin.party neatly met a requirement to have a presence in Belgium to win a license for online poker, casino and sports betting.

The agreement is a rare bright spot in a tough regulatory environment for online gambling companies across the continent.

Betting online on sports events or playing poker on the Internet are increasingly popular pastimes in Europe, where operators say they are held back by unfair and discriminatory rules in many European Union countries.

“It is not a European Union in any way, it is a patchwork of different countries who happen to be in the EU,” said Professor Leighton Vaughan Williams, director of the betting research unit at Nottingham Business School in central England.

“Different countries have different vested interests and different ideas they are trying to promote. Are they trying to protect consumers or to maximize their tax take?” he said.

The 27 EU member states retain the right to regulate their gambling sectors as they see fit, but rules must comply with EU law, broadly meaning they must be consistent and proportionate.

Some companies are scaling back activities in European markets where, they say, regulatory risks are too high or tax rates are punitive.

Betting exchange operator Betfair for instance said this week it was halting marketing and investment in unregulated markets, including EU members Cyprus, Germany and Greece.

William Hill, Britain‘s largest bookmaker, has joined Betfair in pulling out of Greece and has also stopped offering sports betting to German residents because of a 5 percent turnover tax.

STAKES RISE

The stakes are high. Online gambling is growing at an annual rate of almost 15 percent in the EU and will be worth an estimated 13 billion euros ($ 17 billion) by 2015, according to EU figures.

The European Commission, the EU’s executive, stepped in to the debate in October when it published a medium-term plan to clarify regulations and promote cooperation between member states, ruling out EU-wide legislation for the time being.

“All citizens must be adequately protected, money laundering and fraud must be prevented, sport must be safeguarded against betting-related match-fixing and national rules must comply with EU law,” Internal Market and Services Commissioner Michel Barnier said, setting out his approach.

The online operators accuse the European Commission of failing to follow through properly on complaints lodged about regulation in no fewer than 20 or the 27 EU member states.

Barnier has written to member states accused of breaching EU law in the way they handle gambling, seeking an update on the situation by the end of the year.

However, the industry questions whether the EU will go into battle over gambling when it is facing so many other problems.

“They will chip away at some of the most blatant ones,” said Clive Hawkswood, chief executive of trade body the Remote Gambling Association. “What we really need is for them to take some to the European Court and take enforcement action.”

BRITISH TAXES

Gambling companies themselves have taken advantage of different tax regimes where they work in their favor.

This is illustrated in Britain, historically the biggest betting market in Europe and a place with a well-developed gambling culture where bookmakers have operated in town centers for 50 years.

In recent years, most betting companies have moved their British online betting operations to Britain’s overseas territory of Gibraltar. There they are sheltered from a 15 percent tax on gross profit faced by operators based in Britain.

New legislation will close off that loophole after 2014. The shift to a taxation model based on the location of the consumer was expected to cost gambling companies as much as 270 million pounds ($ 435 million) by 2016-17.

Analyst Nick Batram at brokerage Peel Hunt said smaller players would likely be picked off because of the impact of higher tax and regulatory burdens across Europe.

“It is getting more complicated and more expensive. There is more change afoot but it should ultimately play into the hands of the better-capitalized companies.”

In that vein, William Hill has provisionally agreed a 485 million pound takeover of smaller rival Sportingbet, keen to get its hands on the company’s regulated Australian betting business.

“I think there is a lot more M&A activity to come,” said Batram.

(Additional reporting by Rosalba O’Brien; Editing by David Holmes)

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British billionaire Eva Rausing died as a result of drug abuse: coroner

LONDON — Eva Rausing, one of Britain's richest women, died in a squalid corner of her luxury home as a result of her "dependent abuse" of drugs, a coroner ruled Friday.

Rausing's decomposed body was found by police in July in the London house she shared with her husband Hans Kristian Rausing, whose family founded the Tetra Pak drinks carton empire.

She had been dead for two months. Her body was discovered — lying under a pile of bedding and garbage bags inside a sealed-up room littered with drug paraphernalia — after Hans Kristian Rausing was stopped for driving erratically on July 9. Officers found drugs in his car and decided to search his house.

AP

Eva Rausing and her husband Hans Kristian Rausing in 1996

Police said Eva Rausing was found with an aluminum-foil pipe, used for smoking crack cocaine, in her hand.

Deputy coroner Shirley Radcliffe said Friday that 48-year-old Eva Rausing had died as a result of cocaine intoxication and a heart condition that was likely caused by drug use. Radcliffe ruled the death "a result of the dependent abuse of drugs."

Toxicology tests found cocaine, opiates and amphetamines in Rausing's blood, and a pacemaker she was fitted with after heart surgery in 2006 revealed she had suffered a "non-survivable" heart rhythm on the morning of May 7.

Hans Kristian Rausing told the inquest in a written statement that he had concealed his wife's body because "I could not cope with her dying or confront the reality of her death." In August he was given a 10-month suspended sentence for preventing the lawful burial of a body. He is being treated for drug addiction.

Eva Rausing came from an affluent American family, and Hans Kristian is a scion of one of Europe's richest families. His father has a net worth estimated at 4.3 billion pounds ($6.7 billion) from the sale of his stake in the Tetra Pak milk-carton packaging company.

The couple met at a drug rehabilitation center in 1989, married in 1992 and had four children. They battled drug addiction for years and donated millions to rehab charities.

Their struggle became public in 2008, when Eva Rausing was caught trying to bring heroin and crack cocaine into the U.S. Embassy in London.

Ending the inquest at Westminster Coroner's Court in London, Radcliffe offered "condolences to the family for the loss of a 48-year-old mother, wife, sister and daughter."

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Wynwood co-working center funded by Knight Foundation, angel investors

The LAB Miami announced Thursday it will open a 10,000-square-foot co-working center in Miami’s Wynwood neighborhood and the John S. and James L. Knight Foundation and local angel investors are investing $650,000.

As Miami’s startup community continues to grow, The LAB Miami said its “work-learn campus” will offer an in-house mentor network that will include investors and serial entrepreneurs, said Wifredo Fernandez, co-founder of The LAB Miami with Danny Lafuente and Elisa Rodriguez-Vila.

The LAB Miami, now in a 720-square-foot space in the same neighborhood, turned a Goldman building at 400 NW 26th Street into an artsy, modern space that can support 300 members, including tech startups, programmers, designers, investors, nonprofits, artists and academics.

In addition to offering space to work, the new co-working space plans to offer courses and workshops in business and technology — including a startup school and code school — as well as art, design and education, Fernandez said. It will be a welcoming space for traveling Latin Americans, too. “We want this to be a community center for entrepreneurs,” said Fernandez, explaining that the mix of activities and workshops will be structured by the needs of the LAB’s members.

While the Knight Foundation’s Miami office has sponsored many entrepreneurship events in the past four months, this is the foundation’s largest investment announced so far in its efforts to help accelerate entrepreneurship in Miami, said the Knight Foundation’s Miami program director, Matt Haggman. The Knight Foundation’s Miami office, which made accelerating entrepreneurship one of its key areas of focus this year, is investing $250,000 with the rest of the funding coming from a group of investors lead by Marco Giberti, Faquiry Diaz-Cala, Boris Hirmas Said and Daniel Echavarria.

“This is an important part of our strategy,” said Haggman. “Entrepreneurs need places to gather, connect and learn.”

The LAB Miami has already hosted several events, including HackDay and Wayra DemoDay earlier this week, and the co-working space plans to open for membership in January.

Co-working space will start at $200 a month to use the communal tables, and private offices that will accommodate up to six are also available. The LAB will also offer “Connect” memberships for $40 a month, which allows members who do not need co-working space to participate in events. In addition, there will be phone booths, classrooms, flexible meeting spaces, a lounge area, a kitchen, a “pop-up shop” for local fashion, art or technology products, a shower for those who bike to work and an outside garden with native landscaping.

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Miami city Commission considers hiring attorney to defend mayor against commissioner

The Miami City Commission will convene its final meeting of the year on Thursday.

The agenda is long, but few of the proposals are expected to be controversial except for an item from Mayor Tomás Regalado.

Regalado is asking the commission for an outside attorney to defend him in a lawsuit filed by Commissioner Michelle Spence-Jones. The suit accuses the mayor and Miami-Dade State Attorney Katherine Fernández Rundle of plotting to destroy Spence-Jones’s political career. Spence-Jones successfully fought a pair of political corruption charges last year.

Regalado says that City Attorney Julie O. Bru cannot defend him because she was a player in some of the alleged activities outlined in the lawsuit.

“The city attorney is totally conflicted out,” he said.

He believes the city should foot the bill because he was sued for actions he took in his capacity as mayor.

Regalado would like to be represented by attorney José Quiñón, according to the meeting agenda.

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US retail sales up 0.3 percent in November

WASHINGTON — Americans spent more online in November to the start of the holiday season and began to replace cars and rebuild in the Northeast after Superstorm Sandy.

US retail sales rose 0.3 percent in November from October, the Commerce Department said Thursday. That offset a 0.3 percent decline in October from September.

The figures were much stronger after factoring out gas prices, which have fallen sharply in recent months. When excluding gas station sales, retail sales increased a solid 0.8 percent.

The gains were widespread, although much of the strength reflected a rebound from the storm. Auto sales jumped 1.5 percent, as many people sought to replace damaged vehicles. Sales at home improvement stores increased 1.6 percent.

REUTERS

A crowd of shoppers browse at Target on Thanksgiving.

There was also an indication that many Americans began shopping for the holidays, most likely taking advantage of promotions during the Thanksgiving Day weekend. Electronic and appliance sales rose 2.5 percent. Furniture sales increased 1 percent. And sales that reflect online shopping surged 3 percent — the biggest gain for that category in 13 months.

Still, there were also troubling signs for the holiday shopping season: Department stores sales dropped 0.8 percent. And sales at general merchandise stores, a broader category that includes Wal-Mart and Target, fell 0.9 percent.

Some economists worry that consumers might scale back on holiday shopping if they are concerned about the "fiscal cliff." That's the name for tax hikes and spending cuts that are scheduled to go into effect next year if Congress and President Barack Obama cannot reach a deal to avert them.

The retail sales report is the government's first look at consumer spending. Consumer spending is important because it drives nearly 70 percent of economic activity.

The economy grew at a solid 2.7 percent annual rate in the July-September quarter. But the gains were mostly because businesses stepped up restocking, which drove more factory production.

Consumer spending actually slowed over the summer from the previous quarter. And many economists worry that consumers have remained cautious in the final three months of the year, because of the storm and their fears about higher taxes next year. That should keep growth below an annual rate of 2 percent in the October-December quarter, they say.

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