Body found near burned Gulf oil rig

NEW ORLEANS (AP) -- Divers hired by the owner of an oil platform in the Gulf of Mexico that caught fire recovered a body in the waters near the site Saturday evening, according to the U.S. Coast Guard and the rig's owner.

Coast Guard spokesman Carlos Vega said late Saturday that the remains of the unidentified person were found by divers hired by Houston-based Black Elk Energy, who were inspecting the platform. Vega said the Coast Guard would be turning over the remains to local authorities.

John Hoffman, the president and CEO of Black Elk Energy, wrote in an email late Saturday that the body is apparently that of one of two crew members missing since an explosion and fire on the oil platform Friday morning. Hoffman said the body was found by a contract dive vessel at 5:25 p.m. CST.

"Divers will continue to search for the second missing worker," Hoffman wrote. "Our thoughts and prayers are with the families."

Hoffman said the body was found close to the leg of the platform, near where the explosion occurred, in about 30 feet of water. He said the missing men were employees of oilfield contractor Grand Isle Shipyard.

"We have notified next of kin of all individuals involved, but in respect for their families and their privacy, we will not be releasing their names," GIS CEO Mark Pregeant said in a statement, according to WWL-TV in New Orleans.

The news came shortly after the Coast Guard suspended a 32-hour-long search for the two missing workers that covered 1,400 square miles (3626 sq. kilometers) near the oil platform, located about 20 miles (40 kilometers) southeast of Grand Isle, La.

"We have saturated the search area several times — the 1400-square-foot area," Vega said. "We saw no signs of life. We have suspended the search... pending further development. If we receive any credible information that there are signs of life, we can resume the search at any time."

Four other workers who were severely burned remained at Baton Rouge General Medical Center on Saturday night.

Coast Guard Chief Petty Officer Bobby Nash said the Guard's search was ended early Saturday evening. Helicopters and a fixed-wing aircraft had been searching by air, while cutters and boat crews searched the sea.

The blaze erupted Friday morning while workers were using a torch to cut an oil line on the platform, authorities said.

Pregeant stressed in his statement that the cause of the fire and explosion is unknown, and said "initial reports that a welding torch was being used at the time of the incident or that an incorrect line was cut are completely inaccurate."

Four workers were severely burned, though Black Elk Energy spokeswoman Leslie Hoffman said their burns were not as extensive as initially feared.

Officials at Baton Rouge General Medical Center said Saturday that two men remained in critical condition, while two men remained in serious condition. The four, being treated in a burn unit, are also employees of Grand Isle Shipyard and are from the Philippines. The hospital said it and Grand Isle Shipyard are trying to reach the men's families in the Philippines.

Grand Isle Shipyard employed 14 of the 22 workers on the platform at the time of the explosion, WWL-TV reported. A man who answered the phone at the company's Galliano, La., office on Saturday said no one was available to comment.

Separate from the accident, Grand Isle Shipyard is facing a lawsuit by a group of former workers from the Philippines who claim they were confined to cramped living quarters and forced to work long hours for substandard pay. The lawsuit was filed in late 2011 in a Louisiana federal court and is pending. Lawyers for the company have said the workers' claims are false and should be dismissed.

Meanwhile, officials said no oil was leaking from the charred platform, a relief for Gulf Coast residents still weary two years after the BP oil spill illustrated the risk that offshore drilling poses to the region's ecosystem and economy.

Friday's fire sent an ominous black plume of smoke into the air reminiscent of the deadly 2010 Deepwater Horizon explosion that transformed the oil industry and life along the U.S. Gulf Coast

James A. Watson, the director of Louisiana's Bureau of Safety and Environmental Enforcement, said in a statement Saturday that his agency had begun "an investigation into the explosion and fire aboard a Black Elk Energy production platform offshore Louisiana."

"BSEE is committed to determining the direct and indirect causes of the explosion and will take appropriate enforcement action," he said.

The Deepwater Horizon blaze killed 11 workers and led to an oil spill that took months to bring under control. Friday's fire came a day after BP PLC agreed to plead guilty to a raft of charges in the 2010 spill and pay a record $4.5 billion in penalties.

There were a few important differences between this latest blaze and the one that touched off the worst offshore spill in U.S. history: Friday's fire was put out within hours, while the Deepwater Horizon burned for more than a day, collapsed and sank.

The Black Elk Energy facility is a production platform in shallow water, rather than an exploratory drilling rig like the Deepwater Horizon looking for new oil on the seafloor almost a mile (1.6 kilometers) deep.

The depth of the 2010 well blow-out proved to be a major challenge in bringing the disaster under control.

The Black Elk Energy platform is in 56 feet (17 meters) of water — a depth much easier for engineers to manage if a spill had happened.

A sheen of oil about a half-mile (800 meters) long and 200 yards (180 meters) wide was reported on the Gulf surface, but officials believe it came from residual oil on the platform.

"It's not going to be an uncontrolled discharge from everything we're getting right now," Coast Guard Capt. Ed Cubanski said.

Hoffman, the Black Elk Energy spokeswoman, said Saturday that there were still no signs of any leak or spill at the platform site.

BP's blown-out well spewed millions of gallons (liters) of oil into the sea, about 50 miles (80 kilometers) southeast of the mouth of the Mississippi River on the east side of the river delta. The crude fouled beaches, marshes and rich seafood grounds.

After Friday's blaze, 11 people were taken by helicopter to area hospitals or for treatment on shore by emergency medical workers.

The production platform is on the western side of the Mississippi River delta.

"This platform was not in operation and had been shut in since mid-August," Black Elk officials said in a news release Saturday.

Cubanski said the platform appeared to be structurally sound. He said only about 28 gallons (106 liters) of oil were in the broken line on the platform.

David Smith, a spokesman for the Interior Department's Bureau of Safety and Environmental Enforcement in Washington, said an environmental enforcement team was dispatched from a Gulf Coast base by helicopter soon after the Coast Guard was notified of the emergency. Smith said the team would scan for any evidence of oil spilling and investigate the cause of the explosion.

Black Elk Energy is an independent oil and gas company. The company's website says it holds interests in properties in Texas and Louisiana waters, including 854 wells on 155 platforms.

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Associated Press writers Kevin McGill in New Orleans and Jeff Amy in Jackson, Miss., and Norman Gomlak and Greg Schreier in Atlanta contributed to this story.

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Jamaica to abolish slavery-era flogging law

KINGSTON, Jamaica (AP) — Jamaica is preparing to abolish a slavery-era law allowing flogging and whipping as means of punishing prisoners, the Caribbean country’s justice ministry said Thursday.

The ministry said the punishment hasn’t been ordered by a court since 2004 but the statutes remain in the island’s penal code. It was administered with strokes from a tamarind-tree switch or a cat o’nine tails, a whip made of nine, knotted cords.

Justice Minister Mark Golding says the “degrading” punishment is an anachronism which violates Jamaica’s international obligations and is preventing Prime Minister Portia Simpson Miller‘s government from ratifying the U.N. convention against torture.

“The time has come to regularize this situation by getting these colonial-era laws off our books once and for all,” Golding said in a Thursday statement.

The Cabinet has already approved repealing the flogging law and amendments to other laws in the former British colony, where plantation slavery was particularly brutal.

The announcement was welcomed by human rights activists who view the flogging law as a barbaric throwback in a nation populated mostly by the descendants of slaves.

“We don’t really see that (the flogging law) has any part in the approach of dealing with crime in a modern democracy,” said group spokeswoman Susan Goffe.

But there are no shortage of crime-weary Jamaicans who feel that authorities should not drop the old statutes but instead enforce them, arguing that thieves who steal livestock or violent criminals who harm innocent people should receive a whipping to teach them a lesson.

“The worst criminals need strong punishing or else they’ll do crimes over and over,” said Chris Drummond, a Kingston man with three school-age children. “Getting locked up is not always enough.”

The last to suffer the punishment in Jamaica was Errol Pryce, who was sentenced to four years in prison and six lashes in 1994 for stabbing his mother-in-law.

Pryce was flogged the day before being released from prison in 1997 and later complained to the U.N. Human Rights Committee, which ruled in 2004 that the form of corporal punishment was cruel, inhuman and degrading and violated his rights. Jamaican courts then stopped ordering whipping or flogging.

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In Gaza, new arsenals include “weaponized” social media

SAN FRANCISCO (Reuters) – There have long been the tools of warfare associated with the Israeli-Palestinian conflict: warplanes, mortars, Qassam rockets. Now that list includes Twitter, Facebook, YouTube.

This week the worldwide audience got a vivid look at conflict in the social media era as the Israeli military unfurled an extensive campaign across several Internet channels after conducting an air strike that killed a top Hamas military commander in the Gaza Strip on Wednesday.

The air strike, which came after several days of rocket attacks launched from Gaza toward targets in Israel, was confirmed by the Israel Defense Force’s Twitter account before the military held a press conference.

The public relations tug-of-war has long been understood as a central element of the Israeli-Palestinian conflict. Palestinian leaders like Yasser Arafat were credited with skillfully courting international media during the first Intifada to highlight the Palestinian struggle and help sway public opinion.

But the newest technologies, including Twitter and YouTube, have been embraced particularly by the Israeli government, which has perhaps waged an unprecedented social media PR campaign as the conflict escalated this week.

The Israel Defense Force (IDF) has established a presence on nearly every platform available. It launched a Tumblr account Wednesday, posting infographics touting how Israeli forces minimize collateral damage to Palestinian civilians. It prepared Facebook pages in several languages, and even has a bare-bones Pinterest page with photos of troops deployed in humanitarian missions.

On Twitter, the @IDFspokesperson account issued a torrent of tweets that carried hashtags like #IsraelUnderFire and what it said were videos of rockets fired at Israel from Gaza, as well as pictures of wounded Israeli children.

“They are very conscious how things are going to be viewed, perhaps more so because they sense that they are more and more isolated in world opinion, and they are less shouldered by U.S. public opinion,” said James Noyes, a research fellow at the Hoover Institution.

The IDF also posted on Twitter a picture of Ahmed Al-Jaabari, the Hamas commander who was killed, with the word “eliminated” stamped over his face.

Meanwhile, the Al-Qassam Brigades, the military group formerly led by Al-Jaabari, also took to Twitter to offer blow-by-blow updates of its fighters shelling Israeli military targets. It publicized deaths of Palestinian children due to Israeli attacks, and used hashtags like “#terrorism.”

HIGH STAKES

At certain points, the two sides clashed head-on.

“We recommend that no Hamas operatives, whether low level or senior leaders, show their faces above ground in the days ahead,” tweeted @IDFspokesperson after Al-Jaabari was killed.

Al-Qassam (@AlqassamBrigade) shot back at @IDFSpokesperson, warning in a public tweet that the group’s “blessed hands will reach your leaders and soldiers wherever they are,” and that “You Opened Hell Gates on Yourselves” as a result of the air strike.

The exchange raised questions for the new media companies that have vowed to stand behind free speech but perhaps have never before played host to such high-stakes discourse.

Although Twitter regulates against “direct, specific threats of violence,” the two sides tweeted unchecked. The company did not respond to requests for comment.

But on Wednesday, YouTube briefly blocked a grainy IDF video that showed a missile striking Al-Jaabari’s car. The footage, uploaded shortly after the air strike, had drawn hundreds of thousands of views and was flagged by some users as objectionable.

YouTube’s parent Google Inc later reinstated the video and Google Chairman Eric Schmidt said there was a lot of “back and forth” among senior executives at Google, including himself and Google Chief Executive Larry Page, over whether to block the footage.

In YouTube’s case, the general rule is that films that “encourage violence and depict violence are not allowed,” said Schmidt, speaking at a conference sponsored by the RAND corporation and Thomson Reuters entitled “Politics Aside,” in Los Angeles.

“The problem is, if we don’t host it, somebody else will. How do we get all of it down?” he added.

‘WEAPONIZED’ SOCIAL MEDIA

Observers say the Israeli military’s social media efforts are a far cry from the 2008 Gaza War, when the IDF launched a YouTube channel for the first time with videos that sought to justify sending troops into Palestinian territory.

“Operation Cast Lead marked the first time they weaponized social media,” said Rebecca Stein, a professor of anthropology at Duke University who has researched how Israeli military officials use social media. “But back then it was very improvisational,” she said.

In 2010, the government seemed to be caught off guard when activists on a humanitarian convoy bound for the Gaza Strip stirred up sympathy by tweeting and webcasting from their boats after they were boarded by Israeli troops.

That year, the Israeli foreign ministry invested more than $ 15 million to better grasp how the government could use social media in a broader campaign to burnish the nation’s image.

Last year, Israeli officials sent a letter to Facebook Inc asking the social network to remove a page calling for a third Palestinian uprising.

On Thursday, as Israel mobilized troops for a potential ground assault reminiscent of 2008, the PR machine that rolled out seemed nothing like the halting efforts of four years prior, Stein said.

“They’ve had to do a lot of learning between then and now and have invested a lot of resources and exponential manpower specifically for an event like this,” Stein said. “In some sense, they’ve been pioneers of social media statecraft.”

(Additional reporting by Tim Reid in Los Angeles; Editing by Lisa Shumaker)

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Migration officials say cholera in Haiti on rise

GENEVA (AP) — The world’s largest agency that deals with global migration says cholera is again on the rise in Haiti.

The International Organization for Migration says Haitian officials have confirmed 3,593 cholera cases and another 837 suspected cases since Hurricane Sandy‘s passage.

IOM spokesman Jumbe Omari Jumbe told reporters Friday in Geneva “the numbers are going up” particularly in camps around the capital, Port-au-Prince.

He said his organization has responded by handing out about 10,000 cholera kits in 31 camps this week “badly hit by cholera in the area.”

Cholera is a bacterial infection that spreads through water, and Haiti’s lack of proper sanitation and sewage systems makes the country more vulnerable.

Haiti was spared a direct hit from Hurricane Sandy on Oct. 24, but received heavy rain for several days.

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Hopes for Israel, Gaza truce quickly dashed

GAZA (Reuters) - Egypt opened a tiny window to emergency peace diplomacy in Gaza on Friday, but hopes for even a brief ceasefire while its prime minister was inside the bombarded enclave to talk to leaders of the Islamist Hamas movement were immediately dashed.

Prime Minister Hisham Kandil visited the Gaza Strip on Friday officially to show solidarity with the Palestinian people after two days of relentless attacks by Israeli warplanes determined to end militant rocket fire at Israel.

But a Palestinian official close to Egypt's mediators told Reuters that Kandil's visit, which included members of Cairo's secret service, "was the beginning of a process to explore the possibility of reaching a truce. It is early to speak of any details or of how things will evolve".

Israel undertook to cease fire during the visit if Hamas did too. But it said rockets fired from Gaza had hit several sites in southern Israel as he was in the enclave.

According to a Hamas source, the Israeli air force launched an attack on the house of Hamas's commander for southern Gaza which resulted in the death of two civilians, one a child.

But Israel's military strongly denied carrying out any attacks from the time Kandil entered Gaza, and accused Hamas of violating the three-hour deal. "Israel has not attacked in Gaza for the past two hours," a spokesman said.

"Even though about 50 rockets have fallen in Israel over the past two hours, we chose not to attack in Gaza due to the visit of the Egyptian prime minister. Hamas is lying and reporting otherwise," the army said in a Twitter message.

Kandil said: "Egypt will spare no effort ... to stop the aggression and to achieve a truce."

At a Gaza hospital he saw the bloodied body of a child. He left the Gaza Strip after meeting with Hamas leader Ismail Haniyeh, the enclave's prime minister.

Palestinian medics said two people were killed in the disputed explosion at the house, one of them a child. It raised the Palestinian death toll since Wednesday to 21. Three Israelis were killed by a rocket on Thursday.

Air raid sirens wailed over Tel Aviv on Thursday evening, sending residents rushing for shelter and two long-range rockets exploded just south of the metropolis. The location of the impacts was not disclosed.

They exploded harmlessly, police said. But they have shaken the 40 percent of Israelis who, until now, lived in safety beyond range of the southern rocket zone.

"Even Prime Minister (Benjamin) Netanyahu was rushed into a reinforced room," said cabinet minister Gilad Eldan.

Israel has started drafting 16,000 reserve troops, in what could be a precursor to invasion.

The 21 Palestinian dead include eight militants and 13 civilians, among them seven children and a pregnant woman. A Hamas rocket killed three Israeli civilians a town north of Gaza, men and women in their 30s.

The last Gaza war, a lopsided three-week long Israeli air blitz and ground invasion over the New Year period of 2008-2009 aimed at ending repeated rocket attacks, left more than 1,400 Palestinians dead, mostly civilian, and killed 13 Israelis.

THE MESSAGE

"If Hamas says it understands the message and commits to a long ceasefire, via the Egyptians or anyone else, this is what we want. We want quiet in the south and a stronger deterrence," Israeli vice prime minister Moshe Yaalon said.

"The Egyptians have been a pipeline for passing messages. Hamas always turns (to them) to request a ceasefire. We are in contact with the Egyptian defence ministry. And it could be a channel in which a ceasefire is reached," he told Israeli radio.

At the same time, there were signs of possible preparations for a ground assault on Gaza. In pre-dawn strikes, warplanes bombed open land along the border zone with Israel, in what could be a softening-up stage to clear the way for tanks.

Self-propelled heavy artillery was seen near the border.

The United States has asked countries that have contact with Hamas to urge the Islamist movement to stop its recent rocket attacks from Gaza, a White House adviser said.

"We've ... urged those that have a degree of influence with Hamas, such as Turkey and Egypt and some of our European partners, to use that influence to urge Hamas to de-escalate," Ben Rhodes, deputy national security adviser, said in a conference call with reporters.

U.S. Defense Secretary Leon Panetta said in an interview with Voice of America: "I understand the reasons Israel is doing what they're doing. They've been the target of missiles coming in from Gaza ... ."

EGYPT ON THE SPOT

The Gaza conflagration has stoked the flames of a Middle East ablaze with two years of Arab revolution and a civil war in Syria that threatens to engulf the whole region.

Hamas refuses to recognise Israel's right to exist. By contrast, Palestinian President Mahmoud Abbas, who rules in the nearby West Bank, does recognise Israel, but peace talks between the two sides have been frozen since 2010.

Abbas's supporters say they will push ahead with their plan to become an "observer state" rather than a mere "entity" at the United Nations later this month.

Despite fierce opposition from both Israel and the United States, they look certain to win the vote in the General Assembly, where they have a built a majority of supporters.

Egypt's new Islamist president, Mohamed Mursi, viewed by Hamas as a protector, led a chorus of denunciation of the Israeli strikes by allies of the Palestinians.

Mursi faces domestic pressure to act tough. But Egypt gets $1.3 billion a year in U.S. military aid and looks to Washington for help with its ailing economy, constraining Mursi despite his need to show Egyptians that his policies differ from those of his U.S.-backed predecessor, Hosni Mubarak.

Hamas leader Ismail Haniyeh on Thursday urged Egypt to do more to help the Palestinians.

"We call upon the brothers in Egypt to take the measures that will deter this enemy," the Hamas prime minister said.

The appeal poses a test of Mursi's commitment to Egypt's 1979 peace treaty with Israel, which the West views as the bedrock of Middle East peace.

The Muslim Brotherhood, which brought Mursi to power in an election after the downfall of pro-Western Hosni Mubarak, has called for a "Day of Rage" in Arab capitals on Friday. The Brotherhood is seen as the spiritual mentor of Hamas.

The Israel Defence Forces (IDF) said they had targeted over 450 "terror activity sites" in the Gaza Strip since Operation Pillar of Defence began with the assassination of Hamas' top military commander on Wednesday by an Israeli missile.

Some 150 medium range rocket launching sites and ammunition dumps were targeted overnight, the IDF said.

"The sites that were targeted were positively identified by precise intelligence over the course of months," it said. "The Gaza strip has been turned into a frontal base for Iran, forcing Israeli citizens to live under unbearable circumstances."

Israeli bombing has not yet reached the saturation level seen before it last invaded Gaza in the first days of 2009, when armoured bulldozers and tanks flattened whole districts of the crowded enclave to make way for fire bases and open routes for infantry.

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Canada’s Carney says rate hikes “less imminent”

TORONTO (Reuters) – Interest rate hikes have become less imminent than the Bank of Canada once expected, although rates are still likely to rise, central bank Governor Mark Carney said in an interview published on Saturday.

“Over time, rates are likely to increase somewhat, but over time, so a less imminent timing relative to our expectation,” Carney said in an interview with the National Post newspaper.

Canada’s economy rebounded better than most from the global economic recession, and the Bank of Canada is the only central bank in the Group of Seven leading industrialized nations that is currently hinting at higher interest rates.

But Carney has also made clear that there will be no rate rise for a while, despite high domestic borrowing rates that he sees as a major risk to a still fragile economy.

“We’ve been very clear in terms of lines of defense in addressing financial vulnerabilities,” he said in the interview. “And the most prominent one, obviously, in Canada, is household debt.”

He said the bank was monitoring the impact of four successive government moves to tighten mortgage lending, which aimed to take the froth out of a hot housing market without causing a damaging crash in prices.

A Reuters poll published on Friday showed the majority of 20 forecasters believe the government has done enough to rein in runaway prices, preventing the type of crash that devastated the U.S. market.

The experts expect Canadian housing prices to fall 10 percent over the next several years, but they do not expect the recent property boom to end in a U.S.-style collapse.

(Reporting by Janet Guttsman; Editing by Vicki Allen)

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In Britain, spate of prosecutions for Twitter and Facebook tirades spark free-speech debate

LONDON – One teenager made offensive comments about a murdered child on Twitter. Another young man wrote on Facebook that British soldiers should “go to hell.” A third posted a picture of a burning paper poppy, symbol of remembrance of war dead.

All were arrested, two convicted, and one jailed — and they’re not the only ones. In Britain, hundreds of people are prosecuted each year for posts, tweets, texts and emails deemed menacing, indecent, offensive or obscene, and the number is growing as our online lives expand.

Lawyers say the mounting tally shows the problems of a legal system trying to regulate 21st century communications with 20th century laws. Civil libertarians say it is a threat to free speech in an age when the Internet gives everyone the power to be heard around the world.

“Fifty years ago someone would have made a really offensive comment in a public space and it would have been heard by relatively few people,” said Mike Harris of free-speech group Index on Censorship. “Now someone posts a picture of a burning poppy on Facebook and potentially hundreds of thousands of people can see it.

“People take it upon themselves to report this offensive material to police, and suddenly you’ve got the criminalization of offensive speech.”

Figures obtained by The Associated Press through a freedom of information request show a steadily rising tally of prosecutions in Britain for electronic communications — phone calls, emails and social media posts — that are “grossly offensive or of an indecent, obscene or menacing character — from 1,263 in 2009 to 1,843 in 2011. The number of convictions grew from 873 in 2009 to 1,286 last year.

Behind the figures are people — mostly young, many teenagers — who find that a glib online remark can have life-altering consequences.

No one knows this better than Paul Chambers, who in January 2010, worried that snow would stop him catching a flight to visit his girlfriend, tweeted: “Crap! Robin Hood airport is closed. You’ve got a week and a bit to get your (expletive) together otherwise I’m blowing the airport sky high.”

A week later, anti-terrorist police showed up at the office where he worked as a financial supervisor.

Chambers was arrested, questioned for eight hours, charged, tried, convicted and fined. He lost his job, amassed thousands of pounds (dollars) in legal costs and was, he says, “essentially unemployable” because of his criminal record.

But Chambers, now 28, was lucky. His case garnered attention online, generating its own hashtag — (hash)twitterjoketrial — and bringing high-profile Twitter users, including actor and comedian Stephen Fry, to his defence.

In July, two and half years after Chambers’ arrest, the High Court overturned his conviction. Justice Igor Judge said in his judgment that the law should not prevent “satirical or iconoclastic or rude comment, the expression of unpopular or unfashionable opinion about serious or trivial matters, banter or humour, even if distasteful to some or painful to those subjected to it.”

But the cases are coming thick and fast. Last month, 19-year-old Matthew Woods was sentenced to 12 weeks in jail for making offensive tweets about a missing 5-year-old girl, April Jones.

The same month Azhar Ahmed, 20, was sentenced to 240 hours of community service for writing on Facebook that soldiers “should die and go to hell” after six British troops were killed in Afghanistan. Ahmed had quickly deleted the post, which he said was written in anger, but was convicted anyway.

On Sunday — Remembrance Day — a 19-year-old man was arrested in southern England after police received a complaint about a photo on Facebook showing the burning of a paper poppy. He was held for 24 hours before being released on bail and could face charges.

For civil libertarians, this was the most painfully ironic arrest of all. Poppies are traditionally worn to commemorate the sacrifice of those who died for Britain and its freedoms.

“What was the point of winning either World War if, in 2012, someone can be casually arrested by Kent Police for burning a poppy?” tweeted David Allen Green, a lawyer with London firm Preiskel who worked on the Paul Chambers case.

Critics of the existing laws say they are both inadequate and inconsistent.

Many of the charges come under a section of the 2003 Electronic Communications Act, an update of a 1930s statute intended to protect telephone operators from harassment. The law was drafted before Facebook and Twitter were born, and some lawyers say is not suited to policing social media, where users often have little control over who reads their words.

It and related laws were intended to deal with hate mail or menacing phone calls to individuals, but they are being used to prosecute in cases where there seems to be no individual victim — and often no direct threat.

And the Internet is so vast that policing it — even if desirable — is a hit-and-miss affair. For every offensive remark that draws attention, hundreds are ignored. Conversely, comments that people thought were made only to their Facebook friends or Twitter followers can flash around the world.

While the U.S. Supreme Court has ruled that First Amendment protections of freedom of speech apply to the Internet, restrictions on online expression in other Western democracies vary widely.

In Germany, where it is an offence to deny the Holocaust, a neo-Nazi group has had its Twitter account blocked. Twitter has said it also could agree to block content in other countries at the request of their authorities.

There’s no doubt many people in Britain have genuinely felt offended or even threatened by online messages. The Sun tabloid has launched a campaign calling for tougher penalties for online “trolls” who bully people on the Web. But others in a country with a cherished image as a bastion of free speech are sensitive to signs of a clampdown.

In September Britain’s chief prosecutor, Keir Starmer, announced plans to draw up new guidelines for social media prosecutions. Starmer said he recognized that too many prosecutions “will have a chilling effect on free speech.”

“I think the threshold for prosecution has to be high,” he told the BBC.

Starmer is due to publish the new guidelines in the next few weeks. But Chambers — reluctant poster boy of online free speech — is worried nothing will change.

“For a couple of weeks after the appeal, we got word of judges actually quoting the case in similar instances and the charges being dropped,” said Chambers, who today works for his brother’s warehouse company. “We thought, ‘Fantastic! That’s exactly what we fought for.’ But since then we’ve had cases in the opposite direction. So I don’t know if lessons have been learned, really.”

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Jill Lawless can be reached at http://Twitter.com/JillLawless

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Congress, Obama face dynamite in “fiscal cliff”: CEOs

BOSTON (Reuters) – Corporate America is raising the volume of its plea that the U.S. government avert a year-end “fiscal cliff” that could send the nation back into recession, but chief executives aren’t pushing the panic button just yet.

With a heated election season in the rear-view mirror, executives are calling on the White House and congressional leaders to head off a self-imposed deadline that could bring $ 600 billion in spending cuts and higher taxes early in 2013 if they are unable to reach a deal on cutting the federal budget deficit.

The Business Roundtable on Tuesday kicked off a print, radio and online ad campaign on which it plans to spend hundreds of thousands of dollars featuring the chiefs of Honeywell International Inc , Xerox Corp and United Parcel Service Inc calling on lawmakers to resolve the issue.

In an opinion piece published on Tuesday evening on the Wall Street Journal’s website, Goldman Sachs Chief Executive Officer Lloyd Blankfein urged the business community and the Obama administration to compromise and reconcile so as not to derail the fragile recovery.

One of the more dramatic warnings of the consequences of allowing the U.S. economy to go over the fiscal cliff came from Honeywell CEO David Cote.

“If the last debt ceiling discussion was playing with fire, this time they’re playing with nitroglycerin,” Cote said in an interview. “If they go off the cliff, I think it would spark a recession that’s a lot bigger than economists think. Some think it would just be a small fire. I think it could turn into a conflagration.”

The nonpartisan Congressional Budget Office (CBO) estimates that the U.S. economy would contract 0.5 percent in 2013 if the government fails to stop the budget cuts and tax increases – far below the 2 percent growth economists currently forecast.

A failure in Washington to solve the crisis by the year’s end could prompt major companies to curtail investment plans, said Duncan Niederauer, CEO of NYSE Euronext , operator of the New York Stock Exchange.

“We simply won’t be investing in the United States. We will be investing elsewhere where we have more certainty of the outcome,” Niederauer said in an interview.

About a dozen top U.S. CEOs, including General Electric Co’s Jeff Immelt, Aetna Inc’s Mark Bertolini, American Express Co’s Ken Chenault and Dow Chemical Co’s Andrew Liveris are scheduled to meet with President Barack Obama on Wednesday to discuss the issue.

The four are members of “Fix the Debt,” an ad-hoc lobbying organization that this week launched an advertising campaign that advocates long-term debt reduction.

UNCERTAINTY FACTOR

Bank of America Corp CEO Brian Moynihan said on Tuesday that worries about the cliff have companies holding off on spending.

“That uncertainty continues to hold back the recovery,” Moynihan said, speaking at an investor conference in New York.

Sandy Cutler, CEO of manufacturer Eaton Corp , shared his concern.

“Until we solve the fiscal issues (in the United States and Europe), you’re not going to get back to normal GDP growth,” Cutler told investors on Tuesday.

CEOs are not alone in this worry. The CBO report warned that failure to reach a deal could push the U.S. unemployment rate up to 9.1 percent, the highest since July 1991. It is currently 7.9 percent.

Obama and the Republican leadership of the House of Representatives have signaled a more conciliatory tone since last week’s election, when Obama soundly defeated Republican challenger Mitt Romney, whose party retained a majority in the House.

Wilbur Ross, an investor known for taking stakes in distressed companies, is bracing for higher tax rates in 2013.

“We, like many people, have been trying to utilize gains this year. It does seem that the probability is that rates will go up,” Ross said in an interview with Reuters Insider. “We don’t have a “for sale” sign on anything. But we are mindful that there is a benefit to concluding things this year rather than next.

NO SIGNS OF PANIC

Concerns about the cliff have not prompted customers to cancel orders, though they have added to an overall level of uneasiness that has companies wary of making large capital purchases or hiring significant numbers of new workers.

“We haven’t seen the panicking, like, ‘I’m not going to order something because of the fiscal cliff,’” said Steve Shawley, chief financial officer of heating and cooling systems maker Ingersoll Rand Plc . “Customers are being very judicious with their orders.”

Likewise, JPMorgan Chase & Co CEO Jamie Dimon last month told investors he did not expect the negotiations to hurt lending in the fourth quarter.

“The fiscal cliff isn’t going to change us,” Dimon said, referring to JPMorgan’s commercial bank, which loans money to businesses. The bank’s investment banking side could be more vulnerable if the debate makes investors jittery, he allowed.

WEAPONS, MEDICINES IN THE CROSS-HAIRS

The defense and healthcare sectors are the most vulnerable to the fiscal cliff, as they face the threat of sequestration — automatic, across-the-board cuts to their funding.

Makers of weapons systems note that they have long been preparing for declining sales as the United States winds down two long wars in Iraq and Afghanistan. The industry has already shed tens of thousands of jobs and closed facilities.

Lockheed Martin Corp’s new president and chief operating officer, Marillyn Hewson, told analysts on Monday her company had been preparing for tighter defense budgets for years, even before the sequestration deal.

“We aren’t going to see a major change,” said Hewson. “We’ve been very proactive as a leadership team in taking actions in recent years to address our cost structure, to look at how we can make our product more affordable.”

Automatic cuts to the federal budget could reduce federal health spending by $ 21.5 billion in 2013, potentially affecting everything from Medicare to the Food and Drug Administration, according to an analysis by PwC’s Health Research Institute.

Vincent Forlenza, the CEO of Becton Dickinson & Co , said the labs he supplies have held off on buying new instruments because of the threat of spending cuts.

“If we don’t get to a deal we will have another year of paralysis and putting off research,” Forlenza said. “The impact of uncertainty on the (National Institutes of Health) budget is causing our research customers to put off research.”

(The story corrects spelling of company name in penultimate paragraph to “Becton Dickinson” instead of “Beckton Dickinson”)

(Additional reporting by John McCrank, Nick Zieminski, Caroline Humer, Jed Horowitz, Sharon Begley and Daniel Wilchins in New York, Rick Rothacker in Charlotte, North Carolina, Nichola Groom in Los Angeles, Andrea Shalal-Esa in Washington, Debra Sherman in Chicago and Anna Driver in Houston; Editing by Patricia Kranz and Steve Orlofsky and Carol Bishopric)

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Sources: BP to pay record fine for Gulf Coast disaster

HOUSTON/WASHINGTON (Reuters) - BP Plc is expected to pay a record U.S. criminal penalty and plead guilty to criminal misconduct in the 2010 Deepwater Horizon disaster through a plea deal reached with the Department of Justice (DoJ) that may be announced as soon as Thursday, according to sources familiar with discussions.

Three sources, who spoke to Reuters on condition of anonymity, said BP would plead guilty in exchange for a waiver of future prosecution on the charges.

BP confirmed it was in "advanced discussions" with the DoJ and the Securities & Exchange Commission (SEC).

The talks were about "proposed resolutions of all U.S. federal government criminal and SEC claims against BP in connection with the Deepwater Horizon incident," it said in a statement on Thursday, but added that no final agreements had been reached.

The discussion do not cover federal civil claims, both BP and the sources said.

London-based oil giant BP has been locked in months-long negotiations with the U.S. government and Gulf Coast states to settle billions of dollars of potential civil and criminal liability claims resulting from the April 20, 2010, explosion aboard the Deepwater Horizon rig.

The sources did not disclose the amount of BP's payment, but one said it would be the largest criminal penalty in U.S. history. That record is now held by Pfizer Inc, which paid a $1.3 billion fine in 2009 for marketing fraud related to its Bextra pain medicine.

The DoJ declined to comment.

The deal could resolve a significant share of the liability that BP faces after the explosion killed 11 workers and fouled the shorelines of four Gulf Coast states in the worst offshore spill in U.S. history. BP, which saw its market value plummet and replaced its CEO in the aftermath of the spill, still faces economic and environmental damage claims sought by U.S. Gulf Coast states and other private plaintiffs.

The fine would far outstrip BP's last major settlement with the DoJ in 2007, when it payed about $373 million to resolve three separate probes into a deadly 2005 Texas refinery explosion, an Alaska oil pipeline leak and fraud for conspiring to corner the U.S. propane market.

The massive settlement, which comes a week after the U.S. presidential election, could ignite a debate in Congress about how funds would be shared with Gulf Coast states, depending on how the deal is structured. Congress passed a law last year that would earmark 80 percent of BP penalties paid under the Clean Water Act to the spill-hit states of Louisiana, Mississippi, Alabama, Florida and Texas.

POTENTIAL LIABILITY

In an August filing, the DoJ said "reckless management" of the Macondo well "constituted gross negligence and willful misconduct" which it intended to prove at a civil trial set to begin in New Orleans in February 2013. The U.S. government has not yet filed any criminal charges in the case.

Given that the deal will not resolve any civil charges brought by the Justice Department, it is also unclear how large a financial penalty BP might pay to resolve the charges, or other punishments that BP might face.

Negligence is a central issue to BP's potential liability. A gross negligence finding could nearly quadruple the civil damages owed by BP under the Clean Water Act to $21 billion in a straight-line calculation.

Still unresolved is potential liability faced by Swiss-based Transocean Ltd, owner of the Deepwater Horizon vessel, and Halliburton Co, which provided cementing work on the well that U.S. investigators say was flawed. Both companies were not immediately available for comment.

According to the Justice Department, errors made by BP and Transocean in deciphering a pressure test of the Macondo well are a clear indication of gross negligence.

"That such a simple, yet fundamental and safety-critical test could have been so stunningly, blindingly botched in so many ways, by so many people, demonstrates gross negligence," the government said in its August filing.

Transocean in September disclosed it is in discussions with the Justice Department to pay $1.5 billion to resolve civil and criminal claims.

The mile-deep Macondo well spewed 4.9 million barrels of oil into the Gulf of Mexico over a period of 87 days. The torrent fouled shorelines from Texas to Florida and eclipsed in severity the 1989 Exxon Valdez spill in Alaska.

BP has already announced an uncapped class-action settlement with private plaintiffs that the company estimates will cost $7.8 billion to resolve litigation brought by over 100,000 individuals and businesses claiming economic and medical damages from the spill.

(Additional reporting by Andrew Callus in London; Editing by Edward Tobin and David Stamp)

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Beating tax cheats key to Italy’s recovery plan

ROME (AP) — Good plumbers may be worth their weight in gold, but when one was spotted zipping around in a bright red Ferrari, Italian tax police were fast on his trail.

Stamping out entrenched tax evasion is crucial to Premier Mario Monti‘s quest to keep Italy from succumbing to the European debt crisis, and it is critical to fellow eurozone members in more dire straits, such as Greece and Spain — which are also notorious for making cheating the taxman a way of life.

Indeed, Greece’s international rescue creditors have been pressing Greece for two years to reform its ailing tax system, citing poor collection as a key factor keeping the country mired in crisis. In Spain, where tax fraud is rampant, as much as €90 billion ($ 150 billion) is lost each year to tax fraud — the equivalent of the country’s national debt, according to Spain’s main tax inspectors union.

To succeed in Italy, authorities will have to catch the legions of self-employed and small business owners who brazenly lie about their earnings, like the plumber in the eastern town of Pescara, who socked away undeclared income in 30 bank accounts, or a successful pastry shop owner in Calabria, who on his tax return claimed he was earning next to crumbs.

And those are the less sophisticated schemers.

Tax police officials say that wealthy Italians, their companies and foreigners who make their money in Italy are increasingly trying to avoid taxes by using such strategies as falsely declaring that their base of operations or residence is abroad.

Another daunting challenge is the so-called “submerged” economy, a term embracing Italians who declare only a fraction or nothing at all of their earnings — and dentists, lawyers, doctors and other big-earning professionals are frequently among the worst offenders.

Tax evasion of all types in Italy totals about euros 240 billion ($ 300 billion), or 15 percent of the country’s gross domestic product of €1.6 trillion ($ 2 trillion), tax police estimate. Winning the war on tax cheats could therefore more than wipe out the country’s budget deficit, which is expected to increase to euros 42 billion ($ 53 billion), or 2.6 percent of GDP this year. That would start knocking away at the nation’s colossal public debt of €2 trillion ($ 2.5 trillion), or 125 percent of GDP.

But “big international frauds are up,” lamented Lt. Col. Gianluca Campana, in charge of the income tax unit revenue protection office at the Guardia di Finanza, Italy’s financial police corps which reports to the Economy Ministry.

The entrenched practice by many cafes, eateries, hair dressers and similar small business of neglecting to give customers mandatory cash register receipts commonly grabs the attention in crackdowns on tax evasion in Italy.

But, cautioned Campana, “one false (big business) invoice can equal no cash register receipts for coffees for two months.”

Over all of 2011, the total of non-declared income discovered by tax police amounted to some €50 billion ($ 65 billion), of which some 20 percent was due to international tax evasion, he said. By comparison, in the first nine months of this year, tax police discovered some €40 billion in undeclared income, with 30 percent of that blamed on international tax evasion, Campana said.

With the economic crisis shrinking bottom lines, and Italy increasingly on the hunt for big-time evasion, especially by big businesses, “there is a tendency to move capital abroad, using maneuvers apparently legal but which really are not,” Campana said. A classic technique consists of declaring one’s formal residence abroad in tax havens like Monte Carlo. Also common are companies that clearly have their business base in Italy but claim it is abroad in countries with far lower tax brackets.

Campana is armed with three degrees, including a masters in tax law from Milan’s Bocconi University, the prestigious economics institute formerly headed by Monti. He brings skills to this specialized police corps that are as finely tuned as sharp-shooting.

“We are going after the big cases (of evasion) in order to rake in more money,” Campana said.

The Ferrari-driving plumber hid some €2 million ($ 2.6 million) of his income over several years by giving his customers invoices — for jobs ranging from fixing leaks to installing new bathrooms — for the actual cost of his work, but kept a second, false registry of much lower figures for tax purposes, said Pescara tax police Col. Mauro Odorisio.

Armed with a 2008 law, authorities confiscated assets belonging to the plumber equivalent to the approximately €1 million ($ 1.3 million) they contend he owed in taxes, Odorisio said.

With Ferraris in red or yellow, and snazzy Porsches parked inside, Guardia di Finanza garages practically resemble luxury car dealerships.

The cars get sold to help recoup unpaid taxes and interest.

Overall, tax revenues in Italy were up by 4.1 percent, says the Economy Ministry, when comparing figures from the first eight months of 2012 with the same period in 2011, but much of that was due to new taxes, and not necessarily a revolution in citizens’ consciences about tax obligations.

Monti’s recipe relies heavily on taxes that are nearly impossible to avoid, such as sales tax. He also revived a property tax that his populist predecessor, Premier Silvio Berlusconi, had abolished in a promise to voters.

The ministry’s report last month noted that the property tax figured prominently in the “tendency toward growth” in tax revenues. But sales tax revenue dropped slightly despite higher sales tax rates, indicating that consumers were feeling the pinch of the stagnant economy.

The heavier fiscal burden seems to have driven some honest citizens to rebel against the engrained culture of tax evasion.

The number of phone calls from the public to the tax police’s hotline to report stores, restaurants and other businesses that didn’t give customers sales receipts has almost doubled in the first nine months of this year, compared with the same period in 2011.

It’s apparently dawning on Italians that shirking taxes in the end only costs them, in terms of ever-higher levies and cutbacks in public services.

Citizens now increasingly understand that “the lack of revenue over time caused by tax evaders forced the government to stiffen the tax burden on categories where you can’t evade taxes,” Campana said, referring to workers whose taxes are deducted from paychecks. Another area where evasion is close to impossible is real estate ownership.

Odorisio noted the crackdown included extending the statute of limitations on tax evasion from six to eight years and establishing prison as a penalty for big-time evasion.

Other weapons include a measure promoted by the Monti government that limits cash payments to no more than €1,000. Paying by credit card or personal check is a relatively new habit for Italians, who are used to carrying wads of cash in their pockets, even for big-ticket items like home renovations or vacations.

Past governments in Italy sometimes resorted to tax amnesties to try to boost revenues. But critics, contending some Italians counted on such a possibility, described that strategy as only perpetuating the tax cheat culture.

Spain hasn’t had much success with its own tax amnesty introduced by the conservative government in March. That measure, expiring soon, allows undeclared assets or those hidden in tax havens to be repatriated by paying a 10 percent tax without criminal penalty. The amnesty is estimated to recuperate far less than the expected €2.5 billion ($ 3.25 billion).

Greece saw demands for tax system reform from international rescue creditors added on to conditions for future rescue loan payments, as Greek authorities acknowledged that a high-profile campaign to crack down on major tax cheats has produced disappointing results.

The cash-strapped government over the last 10 months recovered just €19 million ($ 25 million) of the €13 billion ($ 17 billion) of arrears on the list. A prominent Greek magazine publisher recently tapped anger over rich tax evaders by publishing a list of people allegedly holding Swiss bank accounts. He was acquitted this month of breaching privacy laws.

Meanwhile, Italian tax police are chasing after cheats who have shown some of the most chutzpah about not paying their fair share of taxes, like the Padua woman who advertised on the Internet that she had a couple of “cash-only” bed and breakfast rooms to let.

Tax police discovered the lodgings are part of an apartment in public housing she was given after falsely declaring she was indigent on her annual tax forms.

____

AP reporters Derek Gatopoulos in Athens and Ciaran Giles in Madrid contributed to this report.

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