Stockton search for Hells Angels slaying suspect comes up empty

 

A man suspected of fatally shooting a member of the Hells Angels at a recent funeral in San Jose was not holed up in a Stockton home Saturday as police had believed. Steve Ruiz, 38, of San Jose is being sought for allegedly shooting and killing fellow Hells Angels member Steve Tausan, 52, after the two fought Oct. 15 at a funeral for a slain motorcycle club member, according to police. Police had received information that Ruiz had been hiding out at the three-bedroom home on the 3700 block of McDougald Boulevard in Stockton, said San Jose police Sgt Jason Dwyer. Investigators asked Stockton police and the San Joaquin County sheriff's office to serve a search warrant for the home, but both agencies were unavailable, Dwyer said. As a result, San Jose police drove tactical vehicles to the scene. Neighbors said they had seen San Jose police at the scene, calling out to someone in the home to surrender. But after storming the home and firing tear gas at about 8 p.m. Saturday, police came up empty-handed and left. The occupants of the home "are new to the area or they're new to the house" after moving in several months ago, said Noelia Trelles, whose sister-in-law lives next door. "I think we live in a pretty crazy world, but it's still crazy that it's happening in the neighborhood," Trelles said. Ruiz and Tausan were among thousands of Hells Angels members who attended a funeral for Jeffrey Pettigrew, president of the San Jose chapter of the motorcycle club, at the Oak Hill Funeral Home and Memorial Park on Curtner Avenue. After the shooting, Ruiz, 38, of San Jose disappeared and one or more people tampered with the crime scene, washing away bloodstains and removing evidence of the shooting, police said. Police found Ruiz's motorcycle at the funeral, Lt. Alan Cavallo said. Ruiz has not come to claim it. Authorities initially speculated that it was possible Ruiz had been killed and possibly buried along with Pettigrew. Investigators obtained a search warrant to dig up Pettigrew's grave, but Ruiz's remains were not found, Cavallo said. But now investigators say they have proof that Ruiz is alive and "actively evading law enforcement," Dwyer said. Ruiz is believed to have two black eyes "and other facial injuries consistent with being in a fight," Dwyer said. Police said Ruiz is in the company of Christel Renee Trujillo, 42, also known as Christel Renee Ferguson, and that her life "is now in danger." The two are possibly traveling in a gold or pewter Chevrolet Suburban. No year of the vehicle or license plate number was available. Ruiz has family and associates in Arizona and New York and may try to contact them, Dwyer said. Police said Pettigrew was shot and killed Sept. 23 by Ernesto Manuel Gonzalez, an alleged member of the rival Vagos motorcycle gang, at John Ascuaga's Nugget casino in Sparks, Nev. Gonzalez, 53, of San Jose was arrested by a UCSF police officer in San Francisco six days later. Tausan and the manager of the Pink Poodle, a strip club west of San Jose, were tried for murder in 1999 in the beating death of a club customer two years earlier. They were acquitted on grounds of self-defense.

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The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion

 

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion -- double the amount that Western governments previously had suspected, The Los Angeles Times reported late Friday. Citing unnamed senior Libyan officials, the newspaper said US administration officials were stunned last spring when they found $37 billion in Libyan regime accounts and investments in the United States. They quickly froze the assets before Kadhafi or his aides could move them, the report said. Governments in France, Italy, England and Germany seized control of another $30 billion or so. Earlier, investigators estimated that Kadhafi had stashed perhaps another $30 billion elsewhere in the world, for a total of about $100 billion, the paper noted. But subsequent investigations by US, European and Libyan authorities determined that Kadhafi secretly sent tens of billions more abroad over the years and made sometimes lucrative investments in nearly every major country, including much of the Middle East and Southeast Asia, The Times said. Most of the money was under the name of government institutions such as the Central Bank of Libya, the Libyan Investment Authority, the Libyan Foreign Bank, the Libyan National Oil Corporation and the Libya African Investment Portfolio, the paper pointed out. But investigators said Kadhafi and his family members could access any of the money if they chose to, the report said. The new $200 billion figure is about double the prewar annual economic output of Libya, The Times noted. Kadhafi, who lorded over the oil-rich North African nation for 42 years, met a violent end on Thursday after a NATO air attack hit a convoy, in which he was trying to escape from his hometown of Sirte. He survived the air strike but was apparently captured and killed after a shootout between his supporters and new regime fighters.

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Rival gangsters pack Vancouver courts

 

Members of the Gang Task Force were used to boost security at the Vancouver Law Courts Thursday as four separate gang cases went ahead with rivals appearing on different floors. Eight members of the uniformed GTF arrived for a bail revocation hearing for accused drug trafficker Sukhveer Dhak. One floor below, a cocaine conspiracy trial continued for Dhak rival Jarrod Bacon. Supt. Doug Kiloh, of the Combined Forces Special Enforcement Unit, said the GTF officers were on hand because "there is clearly unresolved conflict between gangs." "Do we have concern when we bring them together? Yes, and clearly that poses a public safety risk," Kiloh said. "Even at the Bacon trial, there is going to be conflict internally there." Kiloh said that when any case like that of Bacon and coaccused Wayne Scott has wiretaps being played, things can be tense because of what one party says about the other. Earlier this week, a tape was played in court of Scott saying Bacon's parents were aware of his criminal enterprise, and profited from it. "There are a number of security precautions we are taking," Kiloh said of the Bacon-Scott case. Not only were Dhak and Bacon in separate courtrooms Thursday, but the Greeks gang murder case continued in high-security Courtroom 20 a few floors below. And another case, involving men linked to the United Nations gang, was in pre-trial hearings next door to Dhak. Kiloh said CFSEU has several other big cases and that more charges are expected to be laid in coming weeks. "We know we have been pushing Crown hard. We know they have their hands full," he said. "We hope to have more charges in the coming weeks and months in high-profile cases involving gangs and organized crime." And Kiloh said law enforcement will continue to move forward with major gang prosecutions because "it reduces the threat of public safety issues." Just last month, GTF head officer Supt. Tom McCluskie issued an extraordinary public warning that anyone associating with Dhak or those in the affiliated Duhre group could be at risk because of escalating gang tensions. The Dhaks, Duhres and some members of the UN gang are aligned against an opposing group consisting of some Hells Angels, Red Scorpions and the Independent Soldiers. On Sept. 16, Dhak associate Jujhar Singh Khun-Khun was shot several times in a targeted Surrey shooting that police say may have been in retaliation for the Aug. 14 attack in Kelowna that left Red Scorpion Jonathan Bacon dead and Hells Angel Larry Amero and Independent Soldier James Riach wounded. Dhak was originally charged in October 2008 with production of a controlled substance, possession for the purpose of trafficking and conspiracy to commit indictable offence. He is due to go to trial in that case next April. But he was arrested Sept. 18 for allegedly driving while prohibited related to an incident on July 30, 2011. He is also before the courts on another breach allegation related to a Kelowna incident in March 2011 and was charged in December 2010 with one count of counselling to commit the indictable offence of aggravated assault. Justice Brenda Brown reserved her decision on Dhak's bail until next Wednesday. Dhak, dressed in red prison garb, whispered through Plexiglas to his girlfriend at the morning break Thursday. Police sat in the front row, several seats away from Dhak's mother, sister and girlfriend. Details of submissions and arguments at the two-hour hearing are covered by a publication ban. Kiloh said top police officers from around the Lower Mainland met Thursday to discuss the level of gang tensions. He said the situation is very fluid, with unresolved conflicts between some, and others making new associations that police are trying to assess.

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Canada’s top organized crime groups are recruiting workers at Pearson and other major airports to help them smuggle drugs and contraband into the country,

Police and other agencies at Pearson are working to identify workers who are breaking the law.

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Canada’s top organized crime groups are recruiting workers at Pearson and other major airports to help them smuggle drugs and contraband into the country, says the former head of a national security committee.

Agents of notorious crime groups, including the Hells Angels and Vietnamese gangs, are flexing their muscles to get a bigger share of the lucrative drug-smuggling operation run by corrupt workers at Pearson, police and security officials said.

“Organized crime activity has gotten worst at Pearson,” said Sen. Colin Kenny, former head of a Standing Senate Committee on National Security and Defence. “They are actively recruiting people to work for them.”

The RCMP in a 2008 study identified 60 gangs that have infiltrated airports in Toronto, Montreal and Vancouver. Police said agents of the gangs work at “corrupting existing employees or by placing criminal associates or even spouses or relatives into the airport work force.”

A RCMP witness “said categorically that gangs such as Hells Angels have infiltrated Pearson,” the committee said in a report on Canadian airports.

“If the Hells Angels can get their people in place at airports, what’s to stop Al Fatah?,” Kenny asked. “Any holes that criminals open in security perimeters make them more vulnerable to all who wish to circumvent them.”

The committee toured Pearson following the 9/11 terrorist attacks to study safety procedures and found gaping holes in security.

“The security gaps may be wide open at Pearson,” Kenny said. “There is a lot of money to be made and crime groups are getting their own people hired to work there.”

RCMP Const. Michelle Paradis said police and other agencies at Pearson are working to identify workers who are breaking the law.

“We have been working diligently to identify smuggling groups and target them,” Paradis said on Thursday. “These investigations take a lot of manpower and resources.”

The Mounties have smashed several drug rings involving ramp handlers, airline groomers and catering staff who were removing drugs from aircraft and smuggling the bags out of the facility in their vehicles unchecked.

Five ramp handlers and a Jamaican police officer were among nine people arrested in Dec. 2010 by the RCMP after they squashed a ring allegedly smuggling kilos of cocaine and marijuana into Canada.

Police accuse the Jamaica Constabulary Force officer of planting drugs on aircraft that were allegedly removed here by handlers and smuggled from the airport.

Kenny said one way to curb the flow of illegal drugs is to examine all staff and their vehicles arriving and leaving the airport.

“They can check all travellers why can’t they check employees entering and leaving,” he said. “Their vehicles also have to be checked as well.”

Kenny said drugs are still flowing freely through the use of inter-Canada air courier service that promise 24-hour delivery to customers as reported in the Toronto Sun on Monday.

“Very little if anything is being done to examine domestic courier packages,” he said. “They are all virtually unchecked.”

Kenny said a third party, such as the Canadian Air Transport Security Authority, which is responsible for passenger and baggage security, should screen packages.

There are about 90,000 people working at Canadian airports and police estimate about 1,000 of them are intent on “infiltrating the airports to facilitate criminal activity.”

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Kevin J. Augustiniak entered his plea last week, nearly eight years after his 2003 indictment

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Kevin Augustiniak

​Ten years after murdering Mesa resident Cynthia Garcia, one of several members of the Hells Angels initially charged in her death has pleaded guilty to second-degree murder.

Kevin J. Augustiniak entered his plea last week, nearly eight years after his 2003 indictment, the Maricopa County Attorney's Office tells New Times.

According to MCAO spokesman Jerry Cobb, terms of Augustiniak's plea deal call for no fewer than 22 years in prison, and no more than 25.

"The normal sentencing range for second-degree murder is capped at 22 years," Cobb says. "But according to ARS 13-710B, that term can be expanded to 25 years if the defendant has been convicted of a prior second-degree murder or, as in Augustiniak's case, a class 2 or class 3 felony involving a weapon."

Augustiniak and several other Hells Angels -- including biker/stockbroker Paul Eischeid (more on him below) -- were partying with Garcia in the gang's Mesa clubhouse when some of the bikers thought she was being disrespectful.

As we've learned from experience, Hells Angels tend to frown upon disrespect (see exhibits A and B here and here).  

Augustiniak and other bikers beat Garcia inside the clubhouse, "stomping on her head repeatedly," according to court records first obtained by the Arizona Republic.

Augustiniak and other bikers then dragged Garcia's somewhat-conscious body to a car, threw her in the trunk, and drove into the desert. 

The bikers then used a knife to slash at Garcia, "cutting her throat, stabbing her, and 
attempting to cut her head off," according to court records.

One of Agustiniak's accomplices, Eischeid, also was indicted for Garcia's murder in 2003, but escaped custody when he was released from jail before he went to trial.

In addition to being a member of the biker gang, Eischeid, 39, is a former Charles Schwab stockbroker with a "relatively clean criminal record." Because he didn't appear to be a flight risk, he was released on his own recognizance and placed on federal pretrial release with electronic monitoring in 2003.

But Eischeid skipped town and remained on the run for nearly eight years. He was on theU.S. Marshals' 15 Most Wanted Fugitives list until he was captured in Argentina in February.

Eischeid remains in Argentina awaiting extradition back to Arizona where he'll face a first-degree murder charge.

Augustiniak's sentencing is scheduled for November 17.

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Various stories about how Al Qathafi lived his last moments have emerged

 

An image captured off a cellular phone camera showing Muammar Al Qathafi during his last moments Various stories about how Al Qathafi lived his last moments have emerged with the most plausible being that the got out of a hole near a road not far from the city of Sirte only to find himself face-to-face with the same Libyan rebels whom he once called rats. Al Qathafi seems to have been wounded in a hole before he was captured by the rebels. Video shots aired by Al Soumoud TVchannel ishow Al Qathafi held by two rebels, one on each side of him as they helped him walk for a few steps. He had a bloodied face. He was then carried by fightes and placed over the front body of a yellow pick-up truck. Al Qathafi looked disoriented as blood covered most of his face. When he was laid down on the car a rebel seemed to put his hand on his seemingly wounded abdomen. According to Ibrahim Mahjoub, one of the rebels who played a part in the last moments of Al Qathafi's life, the former Libyan leader escaped to a farm and hid under a rain water hole under a road bridge. “He was already wounded,” Mahjoub said. Mahjoub went on to say: “We were above that small bridge when one of Al Qathafi troops carrying a green flag got out of the hole and said 'my master is inside'”. Moments later Al Qathafi himself got out of the hole saying, “what is going on?”  Mahjoub continued to say: “We held Al Qathafi by the hand. He was holding a gun in his hand, a small black bag and also a number of mascots.” Al Qathafi tried to escape out of Sirte towards the east on Wednesday night but his convoy faced heavy fire from the rebels and was forced to retreat to the city. He tried again to escape Thursday morning but his convoy was surrounded and bombed. There is a possibility that after his convoy came under fire Al Qathafi was injured he ran away for cover under the road only to be captured by the rebels and die as a result of the wounds he was carrying.

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Qaddafi Is Dead, Libyan Officials Say

 

Col. Muammar el-Qaddafi, the former Libyan strongman who fled into hiding after rebels toppled his regime two months ago in the Arab Spring’s most tumultuous uprising, was killed Thursday as fighters battling the vestiges of his loyalist forces wrested control of his hometown of Surt, the interim government announced. Multimedia Slide Show Muammar el-Qaddafi: 42 Years as the Face of Libya Photographs Battle for Libya Interactive Feature Timeline: Col. Muammar el-Qaddafi Related Battle for a Holdout City Stalls Healing in Libya (October 19, 2011) Times Topic: Libya — Revolution (2011) Related in Opinion  Nicholas D. Kristof, a Columnist for The New York Times, on the Implications of Muammar el-Qaddafi's Death in Libya and Beyond on The Takeaway Radio Program Connect With Us on Twitter Follow @nytimesworld for international breaking news and headlines. The New York Times More Photos » Al Jazeera television showed what it said was Colonel Qaddafi’s corpse as jubilant fighters in Surt fired automatic weapons in the air, punctuating an emphatic and violent ending to his four decades as a ruthless and bombastic autocrat who basked in his reputation as the self-styled king of kings of Africa. Libyans rejoiced as news of his death spread. Car horns blared in Tripoli as residents poured into the streets to celebrate. Mahmoud Shammam, the chief spokesman of the Transitional National Council, the interim government that replaced Colonel Qaddafi’s regime after he fled Tripoli in late August, confirmed that Colonel Qaddafi was killed, though he did not provide other details. "A new Libya is born today," he said.  "This is the day of real liberation. We were serious about giving him a fair trial.  It seems God has some other wish."   Abdul Hakim Belhaj, the leader of the Tripoli military council, said on Al Jazeera that anti-Qaddafi forces had Colonel Qaddafi’s body. It was not clear precisely how he died. Mohamed Benrasali, a member of the national council’s Tripoli Stabilization Committee, said fighters from Misurata who were deployed in Surt told him that Colonel Qaddafi was captured alive in a car leaving Surt.  He was badly injured, with wounds in his head and both legs, Mr. Benrasali said, and died soon after.   . Colonel Qaddafi had defied repeated attempts to corner and capture him, taunting his enemies with audio broadcasts denouncing the rebel forces that felled him as stooges of NATO, which conducted a bombing campaign against his military during the uprising under the auspices of a Security Council mandate to protect Libyan civilians. Libya’s interim leaders had said they believed that some Qaddafi family members including the colonel himself and some of his sons had been hiding in Surt or in Bani Walid, another loyalist bastion that the anti-Qaddafi forces captured earlier this week. There was no immediate comment on the news of his death from American officials. . Victoria Nuland, the State Department spokeswoman, traveling with Secretary of State Hillary Rodham Clinton in Afghanistan, said the department was aware of the reports “on the capture or killing of Muammar Qaddafi.” There was also no immediate comment from Mustafa Abdel-Jalil, the interim government’s top official. But he had said that the death or capture of Colonel Qaddafi would allow him to declare the country liberated and in control of its borders, and to start a process that would lead to a general election for a national council within eight months. Libyan fighters said earlier on Thursday that they had routed the last remaining forces loyal to Colonel Qaddafi from Surt, ending weeks of fierce fighting in that Mediterranean enclave east of Tripoli. A military spokesman for the interim government, Abdel Rahman Busin, said, “Surt is fully liberated.” The battle for Surt was supposed to have been a postscript to the Libyan conflict, but for weeks soldiers loyal to Colonel Qaddafi, fiercely defended the city, first weathering NATO airstrikes and then repeated assaults by anti-Qaddafi fighters. Former rebel leaders were caught off guard by the depth of the divisions in western Libya, where the colonel’s policy of playing favorites and stoking rivalries has resulted in a series of violent confrontations. Surt emerged as the stage for one of the war’s bloodiest fights, killing and injuring scores on both sides, decimating the city and leading to fears that the weak transitional leaders would not be able to unify the country. The battle turned nearly two weeks ago, when the anti-Qaddafi fighters laid siege to an enormous convention center that the pro-Qaddafi troops had used as a base. The interim leaders had claimed that the ongoing fighting had prevented them from focusing on other pressing concerns, including the proliferation of armed militias that answered to no central authority.

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Libya: 'Gaddafi dies from wounds' suffered in Sirte capture

 

National Transitional Council official Abdel Majid Mlegta said that Gaddafi was captured and wounded in both legs at dawn on Thursday as he tried to flee in a convoy which Nato warplanes attacked. Gaddafi was shot in both legs and "also hit in his head", the official said. "There was a lot of firing against his group and he died." There was no independent confirmation of his remarks. In the early hours of the morning, at least five cars carrying loyalist fighters attempted to escape the city. Libyan rebels then moved into the city's Number Two residential neighbourhood, which was the last pocket of pro-Gaddafi resistance left in the war-torn country. "Sirte has been liberated. There are no Gaddafi forces any more," said Col Yunus Al Abdali, head of operations in the eastern half of the city. "We are now chasing his fighters who are trying to run away." However, there were reports that Gaddafi loyalists had ditched their military uniforms and were firing indiscriminately at civilians. The final assault on the remaining pro-Gaddafi positions began around 8am (7am GMT) on Thursday and was over after about 90 minutes. Civilians, whose city has been under siege since Gaddafi was removed from power at the end of August, were making their way to the centre to celebrate. The Telegraph, witnessing scenes in the centre of the city said there were scenes of relief, jubilation and intense celebratory gunfire among National Transitional Council (NTC) forces. The new national flag was raised above a large utilities building in the Mediterranean city, which had been under siege for nearly two months. A rebel commander confirmed that loyalist fighters in the city had been rounded up. "This is the last day of the fight," Lieutenant Colonel Hussein Abdel Salam of the Misurata Brigade told AFP. The fate of the city has become entwined with the immediate political future of Libya after the National Transitional Council said a full interim government could not be named until Sirte had fallen.

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RBS staff told to pay for their own Christmas party

 

Another day, another downgrade. Reduced to surviving on two pints of lager and pack of crisps at recent Christmas parties, misery was heaped on Royal Bank of Scotland's highly-paid investment bankers on Friday as they were told that they would have to fund this year's bash entirely out of their own pocket.

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HMRC clamps down on Swiss account holders

 

6,000 Britons who hold money in the Swiss arm of HSBC will soon receive a letter telling them that they need to own up to unpaid tax. The bank is acting on information received last year under a tax treaty. This revealed that more than 6,000 individuals, companies, trusts and other bodies held accounts and investments with HSBC Geneva. HMRC has already begun criminal and serious fraud investigations into more than 500 individuals and organisations holding these accounts. HMRC will shortly be writing to those who have not yet come forward, or are not under investigation. They will be offered a chance to contact HMRC and disclose all their tax liabilities, HMRC said. Fines of up to 200 per cent of any tax may, in certain circumstances, be imposed on people not coming forwards during this window for disclosure. "This is not an amnesty. There are no special rates of penalty or interest for those who come forward voluntarily," said HMRC's Dave Hartnett. "This is an opportunity for those who have made errors in past returns to correct them. The net is closing on offshore evaders. Don't wait for HMRC to contact you."

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FORMER policeman lived the high life in Marbella by running a £300million VAT fraud

 

 – the biggest ever uncovered in the UK. Nigel Cranswick, 47, tried to cheat the taxman by claiming back tax on £2billion worth of bogus sales made by his mobile phone firm I2G. The “phenomenal” turnover was generated in eight months, HMRC said. Advertisement >> Meanwhile Cranswick lived it up in his rented villa in Marbella. “Despite this phenomenal turnover... I2G operated from a small office in Sheffield,” HMRC said. The scam was smashed after a five-year police probe, Newcastle crown court was told. Cranswick, from Sheffield, admitted conspiracy to cheat HMRC, as did accomplices Brian Olive, 56, of Doncaster, and Darren Smyth, 42, from Rotherham. Claire Reid, 45, also from Rotherham, admitted false accounting. The four will be sentenced next month

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Rich Brits plot escape to France

 

 wealthy Britons are planning to flee what they believe to be an over-taxed and crime-ridden UK, with France the most favoured destination, according to a survey published by British bank Lloyds TSB. The survey, published on Monday, found that 17 percent of those with more than £250,000 ($391,025) in savings and investments wanted to move abroad in the next two years, up from 14 percent six months earlier. The most popular destination for the rich exiles was France (21 percent), followed by Spain (15 percent) and the US (11 percent).  Three-quarters of those questioned (73 percent) thought that crime was a bigger problem in Britain than other developed countries. "Sadly, it seems August's riots, tax increases and a rising cost of living have cast a pall over life in the UK for some wealthy people," said Nicholas Boys-Smith, managing director of Lloyds TSB International Wealth in a statement. "It may reignite fears of a 'wealth drain' from our economy as rich people seek pastures new," he said. 42 percent of those questioned named tax as a reason for leaving, up from 35 percent six months ago. Cost of living was a factor for 52 percent, up from 31 percent. Research in January 2011 suggested that 4.6 percent of the UK population have over £250,000 in savings and investments, which equals around 2.8 million people.

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A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart

Illustration by Matt Kenyon

What if it falls apart? For all my adult life, I have been what in England is called a pro-European or Europhile. For most of that time, European history has been going our way. Now it may be on the turn. Soon, it could be heading the Eurosceptics' way. What then?

Over the last half-century, the institutional organisation of Europe has progressed from a common market of six west European states to a broader and deeper union of 500 million individual Europeans and 27 countries, from Portugal to Estonia and Finland to Greece; 17 of them share a single currency, the euro. There are no border controls between 25 European countries in the Schengen area. Enveloping it all is the fragile skin of the European convention on human rights (now under facile attack from some British Conservatives) which allows any individual resident of no less than 47 countries, including Russia, to contest a violation of their inalienable human rights all the way to a European court of human rights in Strasbourg.

Never has Europe been so united as this. Never have more of its people been more free. Never before have most European countries been democracies, joined as equal members in the same economic, political and security community. Our continent still has a grotesque amount of poverty, injustice, intolerance and outright persecution. (Try living as a Roma or Sinti in eastern Europe for a taste of all that.) I prettify nothing. But – to adapt a famous remark about democracy by that great pro-European British conservative, Winston Churchill – I do say that this is the worst possible Europe, apart from all the other Europes that have been tried from time to time.

Now all this is under threat. A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart, bringing bitter recriminations and lasting divisions. More fundamentally, the past emotional motivators and political engines of European unification are no longer there. The peoples of Germany, the Netherlands and other core countries of the European Union are loth to take steps of further integration which many of the creators of monetary union thought would be necessary to sustain it.

I blame politicians like Angela Merkel for not showing more leadership in this respect, but such leadership would involve a heroic, uphill struggle to persuade reluctant publics in what are still (contrary to what Eurosceptics claim) largely sovereign national democracies. If these were not sovereign national democracies, the whole financial world – from Washington to Beijing – would not this week have been waiting with bated breath on the vote of one small party in the parliament of Slovakia.

I note in passing that many of the current difficulties of the eurozone were predicted back in the 1990s, and I was a sceptic about monetary union at that time. This is what I wrote in 1998: "The rationalist, functionalist, perfectionist attempt to 'make Europe' or 'complete Europe' through a hard core built around a rapid monetary union could well end up achieving the opposite of the desired effect. One can all too plausibly argue that what we are likely to witness in the next five to 10 years is the writing of another entry for [Arnold] Toynbee's index [to his A Study of History], under 'Europe, unification of, failure of attempts at'." But I am not now going to hide behind that testament to my own earlier scepticism about one element of a larger project.

As a pro-European, I stand by the whole project, warts and all. I recently contributed to an appeal – which you too can sign – arguing that the eurozone can only be saved by further fiscal integration and a strategy for growth. Remarkably, even the Eurosceptic prime minister David Cameron recently told the Financial Times that Germany and France need to fire a "big bazooka" to convince financial markets and hence preserve the eurozone. That is a bit like the Duke of Wellington wishing Napoleon success in consolidating his continental empire – but extraordinary times do produce such delicious moments.

Beyond this, however, I'm not going to add a single word to the 537 newspaper columns you have already read explaining how the eurozone must and can, or must not and can not, be saved. You decide which economic commentator you believe.

Instead, I want to ask what happens if the eurozone does fail, one way or another – and that failure begins a much larger process of gradual disintegration. Suppose that the EU in 2030 has become something like the Holy Roman Empire in, say, 1730: still extant on paper, but more origami than political reality. What then?

For us pro-Europeans, what happens then will be, first of all, a paradoxical kind of liberation. Rather like the supporters of a long-term incumbent government, for decades now we have felt some obligation to defend the existing state of affairs, with all its obvious flaws. Eurosceptics, by contrast, have enjoyed the glorious irresponsibility of opposition – and, heaven knows, the Brussels institutions furnish endless easy targets for the sceptic and the satirist.

Now the boot will be on the other foot. For a few years, like an incoming government, Eurosceptics will be able to blame current problems on the preceding regime (overhasty monetary union led to German-Greek loathing, etc), but that only lasts so long. Sooner or later it will become clear that it is their kind of Europe we are living in, not mine.

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More German travelers have been using foreign airports since a flight tax was imposed early this year.

 

 

Consider two small airports in the middle or Europe. At Maastricht Aachen Airport, business is booming thanks to an influx of German passengers who are fleeing a national aviation tax introduced on January 1, 2011. Meanwhile, just 80 kilometers across the border, Germany's Weeze Airport has been steadily losing customers.

A few years ago, things were exactly the opposite. The Netherlands had its own, yearlong experiment with an aviation tax, but revoked it in July 2009 after it saw Dutch hubs like Maastricht Aachen Airport lose passengers to rivals in neighboring countries, including Germany.

The levy cost Dutch airports, airlines, and related businesses between 1.2 and 1.3 million euros in lost revenue, according to a study by Amsterdam Aviation Economics, a research institute affiliated with the University of Amsterdam.

Hans van Mierlo, a professor of public finance at the University of Maastricht, said the abundance of transportation options in Europe means travelers can and will seek out alternatives whenever one country unilaterally imposes an air passenger tax.

"The [Dutch] crowd went to Germany; now the German crowd comes to us," he told Deutsche Welle. "I am surprised that the German government didn't learn from the Dutch failure."

Maastricht-Aachen Airport may be small, but traffic is growing rapidlyHefty rates

The German aviation tax runs at a rate of eight euros per one-way flight within Europe, 25 euros for medium-haul services to the Middle East and Sub-Saharan Africa, and 45 euros for long-haul flights. The tariff only applies to flights originating in Germany. The German Finance Ministry reported the duty raised 434 million euros in revenues in the first half of 2011.

However, for travelers, the tax can double the total cost of a bargain ticket. That has driven Irish budget carrier Ryanair to cancel some of its services from Weeze Airport and add flights at Maastricht. Meanwhile, rival airline Germanwings has launched a service linking Maastricht to Berlin 12 times per week.

Those moves helped drive Maastricht Aachen Airport's whopping 70 percent increase in passengers so far this year. That is quite a comeback from the time of the Dutch aviation tax, when it lost 25 percent of its customers.

Maastricht's airport has new routes to Bucharest, Tenerife, and other spotsAmong the new clientele is Ne Pham from Jülich, Germany. She told Deutsche Welle that she used to fly out of Cologne or Dusseldorf to destinations like Italy, the United States and her native Vietnam.

"It's cheaper to fly from [Maastricht] than from Germany," she said. "It's easy to find, has lots of parking spaces, and a very fast check-in. It's small but nice."

Maastricht makeover

To accommodate new passengers, Maastricht Aachen Airport has renovated its main waiting area and sole restaurant. A new bus line runs from Cologne directly to the Dutch airport, where travelers are greeted by a row of flags from seven European countries. Airport staff members are required to speak German and English in addition to Dutch, and a number of them speak French as well.

Marion Schramm and her husband, from Geilenkirchen, Germany, echoed Pham's reasons for choosing Maastricht Aachen Airport. But they were not as impressed by the small airport's recent makeover.

"It's obviously dinky," Marion Schramm told Deutsche Welle, "You see everything right away. But it's a lot cheaper than Germany at the moment."

Customers have mixed reviews for the small Dutch airport's facilities

Weeze's woes

The German Airport Association, which represents German air hubs, has called for an immediate end to the national flight tax. It reported a tepid growth rate of 3.2 percent at airports throughout the country this July, compared with the same month last year.

Weeze Airport, near Dusseldorf, had 22.8 percent fewer customers in the same time period. Ludger van Bebber, the airport's managing director, said many of the hub's clients used to come from the Netherlands.

"The aviation tax destroys the level playing field for us," he told Deutsche Welle. "That is the main issue we have here at Weeze."

Meanwhile, Berlin's two hubs are seeing travelers hop across the border to nearby Polish airports. And people in Munich do not have to drive far to reach a number of alternative airports in Austria and the Czech Republic.

The chairman of the Maastricht airport's board is planning for growth to continueDutch chairman confident

While the German Finance Ministry has denied recent media reports that it might lower the aviation tax rates, the ministry is scheduled to evaluate the levy's effects on small and medium-sized airports in June 2012.

The chairman of Maastricht Aachen Airport, Jan Tindemans, said he is not worried about his business in the short term - even if Berlin ends up decreasing or revoking the tax.

He told Deutsche Welle that winning back market share in the wake of the Dutch tax experiment was very difficult. He does not expect things to be any easier for German hubs.

"No bakery wants its customers to go for one or two times to another bakery, because they always think [the customers] will stay there," he said. "There will be some people who will go back, but I don't think there will be much of an effect."

Tindemans said Maastricht Aachen Airport is seeking to add more airlines and destinations to its roster. He added that his airport could double annual traffic to almost one million passengers over the coming years if economic conditions remain stable.

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FSA broke its own rules in Keydata probe, judge rules

 

High Court judge found that the Financial Services Authority (FSA) had wrongfully used privileged emails to bring its case against Keydata. A further "relief hearing" will now determine the impact of the ruling, which could de-rail the case altogether. It is the latest in a line of setbacks for the regulator, which has been investigating regulatory breaches at Keydata and millions of pounds of missing retail funds for two years. Keydata invested in "life settlement funds", which buy and sell US life insurance and generate high returns. In June 2009 the FSA applied for Keydata's closure "to protect investors", saying it was concerned about "potentially missing assets". The business was fast-tracked into administration and referred to the Serious Fraud Office (SFO). It emerged that £103m of life insurance policies managed by a Luxembourg business, SLS Capital, and sold to Keydata investors as low-risk bonds might have been "misappropriated".

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US to pressure Iran over 'plot to kill Saudi envoy'

 

US Attorney General Eric Holder says the alleged conspiracy was "conceived, sponsored and directed from Iran" Continue reading the main story Related Stories Clinton hails break-up of 'plot' Middle East rivalries play out in US The US secretary of state has called for a "very strong message" to be sent to Iran, after allegations of a plot to kill the Saudi ambassador to the US. Hillary Clinton said Washington was preparing new penalties against Iran, which is already subject to a variety of international sanctions. Two Iranians were charged over the plot which US officials said implicated Iran's Revolutionary Guard Corps. Meanwhile the US issued a worldwide alert about possible anti-US actions. "The US government assesses that this Iranian-backed plan to assassinate the Saudi ambassador may indicate a more aggressive focus by the Iranian government on terrorist activity against diplomats from certain countries, to include possible attacks in the United States," the alert said. It urged Americans residing and travelling abroad to review the information available when making travel plans. Iran has dismissed the allegations as false and baseless. Continue reading the main story “ Start Quote The idea that they would attempt to go to a Mexican drug cartel to solicit murder-for-hire to kill the Saudi ambassador, nobody could make that up, right?” Hillary Clinton US secretary of state 'Well-grounded suspicions' Mrs Clinton praised those involved in the operation to uncover the plot. "It was a terrific achievement by our law enforcement and intelligence communities, and we will be consulting with our friends and partners around the world about how we can send a very strong message that this kind of action, which violates international norms, must be ended," she said at a news conference. "This case will, I think, reinforce the well-grounded suspicions of many countries about what they're up to." Mrs Clinton said the suspected plotters had been trying to involve hired killers from Mexican drug cartels. "The idea that they would attempt to go to a Mexican drug cartel to solicit murder-for-hire to kill the Saudi ambassador, nobody could make that up, right?" she said. US Attorney General Eric Holder said Iran's involvement in the plot was "a flagrant violation of US and international law". Continue reading the main story Analysis Mohammad Manzarpour BBC Persian There is a long history of animosity between Iran and Saudi Arabia which stretches back to before the Islamic Revolution of 1979. Religiously, the Wahhabi rulers of Saudi Arabia and the Shia clerics of Iran reject each other's interpretation of Islam. Geopolitically, the two are staunch rivals, engaged in a seemingly never-ending battle for greater regional influence. They have also been engaged in proxy wars for decades, taking different sides in the Iran-Iraq war, Afghanistan, Lebanon and the Palestinian territories. But it is the Saudis' military intervention in Bahrain which may have prompted the alleged plot. It was little criticised in the West but was seen in Iran as a blatant assault on the Shia majority in Bahrain. In a statement, UK Prime Minister David Cameron's office said: "Indications that this plot was directed by elements of the Iranian regime are shocking... We will support measures to hold Iran accountable for its actions." US officials have said military action was not being considered. The US Treasury Department placed five Iranians, including the two men charged, under sanctions on Tuesday for their alleged involvement in the plot. The two accused were named as Manssor Arbabsiar, a 56-year-old naturalised US citizen with dual Iranian and US passports, and Gholam Shakuri, based in Iran and said to be a member of Iran's Quds Force, a unit of the Revolutionary Guard Corps. The other three were described as high-ranking members of the Quds force. Mr Arbabsiar, who was arrested at New York's John F Kennedy airport on 29 September, has confessed to his involvement in the alleged plot, Mr Holder said. A lawyer for Mr Arbabsiar said he would plead not guilty when he was officially indicted. 'Shocking' Mr Shakuri was said to be in Iran. US officials said that on 24 May 2011, Mr Arbabsiar made contact with an informant for the US Drug Enforcement Agency, who was posing as a Mexican drug cartel member. Manssor Arbabsiar appeared at a court in New York City on Tuesday Over a series of meetings, it is said that details emerged of a conspiracy involving members of the Iranian government paying $1.5m (£960,000) for the assassination of Saudi ambassador Adel al-Jubeir on US soil. Justice department officials said the initial envisaged target was the Saudi embassy. But in conversations secretly recorded for the US authorities, Mr Arbabsiar also allegedly considered having the ambassador killed at a purported favourite restaurant, despite the possibility of mass casualties. The plot would have been carried out with explosives, Mr Holder said. But he added that no explosives were ever put in place and the public was not in danger. Mr Holder said Mr Arbabsiar, with approval from Mr Shakuri, wired $100,000 to a US bank account for the informant as a downpayment. Mr Arbabsiar and Mr Shakuri have been charged with conspiracy to murder a foreign official, weapons conspiracy, and conspiracy to commit international terrorism charges. Continue reading the main story “ Start Quote The choice of ambassadorial target is a direct expression of the acerbic tensions in the Middle East between Saudi Arabia, a key US ally, and Iran” Kim Ghattas BBC News, Washington Alleged plot reflects Middle East rivalries Unnamed US officials also told journalists that the Israeli embassy in Washington was also to have been attacked. Iran's official Islamic Republic News Agency called the charges a "propaganda campaign" by the US government against Tehran. The allegations were "a comedy show fabricated by America", Iranian foreign ministry spokesman Ramin Mehmanparast told the semi-official Iranian news agency, Fars. Mr Arbabsiar appeared briefly at a New York City court on Tuesday. He did not enter a plea and was held without bail. He could face a life prison sentence if convicted on all charges, the Department of Justice said.

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US issues travel alert linked to Iran plot

 

The US State Department late on Tuesday issued a worldwide travel alert for US citizens, warning of the potential for anti-US action after the United States accused Iran of backing a plot to kill Saudi Arabia's ambassador to Washington.   Murder Plot Iranians charged over assassination plot / Reuters American authorities uncover plot to bomb Israeli, Saudi embassies in Washington, assassinate Saudi ambassador Full story "The US government assesses that this Iranian-backed plan to assassinate the Saudi ambassador may indicate a more aggressive focus by the Iranian government on terrorist activity against diplomats from certain countries, to include possible attacks in the United States," it said in a statement on its website.   The alert expires January 11, 2012, it said.

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Sicily's tiny anti-Mafia TV channel

 

Sicilian TV station that campaigns against the Mafia, Telejato, is among hundreds of channels threatened with closure due to a change in the law. Partinico is a pretty nondescript little town - a handful of baroque churches, a couple of elegant palazzos and a lot of ugly concrete in between. If it were not for the fact that it is in the so-called "Mafia Bermuda Triangle", perhaps nobody outside the province of Palermo would have heard of it. As it is, like Corleone, it is a name that prompts Italians to raise an eyebrow and suck in their breath when you tell them you are planning to visit. Discreet entrance My point of departure is San Giuseppe Jato, another former Mafia stronghold. Continue reading the main story From Our Own Correspondent Broadcast on Saturdays at 1130 BST on BBC Radio 4 and weekdays on BBC World Service Listen to the BBC Radio 4 version Download the podcast Listen to the BBC World Service version Explore the archive Having just visited a vineyard on land confiscated from an infamous jailed boss, I decide to try my luck with the only direct bus of the day to Partinico. I do what the traffic warden advises and wave it down in the middle of the road, just in front of the toy shop. After a picturesque journey through the Jato Valley, I alight an hour later at my destination, a town where the mountains rise up above the church steeples and illegal attic extensions. I find the block of flats which is home to Telejato without too much difficulty. It is on a quiet side street away from the bustle of the main road. The building number seems right but there is no sign or any directions to the TV station inside. I conclude that the best way to find Pino Maniaci is to follow my nose. As I climb the staircase, the smell of cigarette smoke gets stronger. I follow the aroma up to the second floor, through an unlocked door and into the newsroom. Pino Maniaci's daughter Letizia is the station's main reporter It is 13:20 and they go live at 14:00. Pino, his daughter and a couple of volunteer journalists are putting together the bulletin. When I come in, he turns towards me, cigarette between his lips. After the briefest of greetings he says, "We're on air soon so sit down and don't break my balls." His daughter looks up and grins. "Don't worry, that's how he talks to everyone," she says. Indeed Pino Maniaci, when not inhaling smoke, is invariably exhaling expletives. Unable to sit still and not wishing to be a ball-breaker, I nose around the small converted apartment. You can tell by the pictures, tributes and cuttings on the walls, just how proud Pino is of Telejato. Courage He has turned a tiny local TV station into one of Sicily's most powerful anti-Mafia voices. Continue reading the main story “ Start Quote With his Groucho Marx-style moustache and Chico Marx-style accent, he boasts that even the Mafia watch Telejato” He says nearly all the locals watch it. In the heart of Cosa Nostra territory, he was the first journalist to dare to give the full names of arrested mafiosi. Before him, nobody published more than initials for fear of reprisals. Pino, his family and a small team of volunteers put together a daily news show, which is dominated by Mafia and corruption stories. "We're always first on the scene," he tells me. "Even international channels like CNN call and ask to use our footage." The station works closely with the various police forces, including the Catturandi di Palermo - a special squad that hunts mafiosi in hiding. "Wherever we show up, they're there. Wherever they show up, we're there." Pino's childlike bravado conceals his genuine courage. With his Groucho Marx-style moustache and Chico Marx-style accent, he boasts that even the Mafia watch Telejato. "We were the only ones to interview the brother of Bernardo Provenzano, one of the biggest Mafia bosses," he tells me. With a gleeful twinkle, Pino continues, "We even discovered that Provenzano himself had an aerial specially positioned to pick up our signal. If you listen to the police wire taps, you can hear our signature tune!" Murder attempt Telejato has a motto: "They consider themselves men of honour. For us, dishonouring them is a question of honour." Pino uses derision as both weapon and shield, but he admits he is scared, especially for his family. "I smoke three packets a day and always joke that it's just as well the biggest room in our tiny station is the bathroom!" Living under police escort, he has suffered countless attacks - slashed tyres, severed brake cables, burnt-out cars, windscreens shattered by gunshots. "They even tried to bump me off!" he chuckles, describing a failed attempt to strangle him, which left him with four fractured ribs, a broken leg, a black eye and several broken teeth. At 17:00, it is time for me to head for the station to catch a train up to Palermo. Pino refuses to let me go without showing me some true Sicilian hospitality. Police escort in tow, we go to a nearby coffee bar. Everyone, including the officers, gets an espresso and Pino insists I taste a cannolo, the island's famous ricotta-filled pastry. "I have to keep Telejato going," says Pino between mouthfuls, "so that one day Sicily will be more famous for these than for the Mafia."

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PM intervenes in Fox flatmate row

 

Beleaguered Defence Secretary Liam Fox is fighting for his political career after the row over his working relationship with a close friend deepened. Prime Minister David Cameron is poised to decide his fate on Monday after ordering the head of the civil service to urgently report back on an internal investigation into whether Dr Fox's links to Adam Werritty, a former flatmate, breached ministerial guidelines. A series of allegations have surfaced over the unusual involvement Mr Werritty had in brokering meetings for Dr Fox, as well as the access he enjoyed to Government despite having no formal parliamentary or Whitehall role. Dr Fox, who has been in Libya on what should have been a publicity coup as he met the country's interim government, was forced to issue an embarrassing statement clarifying comments he made earlier about how a meeting in Dubai in June with a businessman had been arranged. But he also insisted he has nothing to hide and indicated he is the victim of a smear campaign, telling The Sunday Telegraph: "I have absolutely no fear of complete transparency in these matters. I think there are underlying issues behind these claims and the motivation is deeply suspect." Further revelations emerged, however, that cast doubt on previous claims made by Dr Fox that Mr Werritty, best man at his wedding, had never attended formal meetings with overseas dignitaries. According to the Observer, footage has been uncovered that shows Mr Werritty meeting Sri Lankan president Mahinda Rajapaksa with Dr Fox in a London hotel last year. During his visit to Libya, Dr Fox was asked to answer allegations that Mr Werritty arranged the Dubai hotel meeting, away from officials, with him and Harvey Boulter, chief executive of private equity company Porton Group. The Secretary of State said defence industry representatives asked for the meeting "when they happened to be sitting at a nearby table in a restaurant", but emails emerged later that appeared to confirm that Mr Werritty had been involved in setting up the discussions for some time - and Mr Boulter told the Guardian he first met Mr Werritty to arrange a meeting with Dr Fox in April. In a statement issued after the emails emerged, a spokeswoman for the minister said: "Dr Fox was referring to Mr Werritty, and not himself, bumping into Mr Boulter at a restaurant prior to the meeting."

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£40million cocaine-smuggling gang are sent to jail

 

GANG involved in a "high-level international drugs ring" that brought an estimated £40 million of cocaine into Scotland from Spain were jailed today. Keith Blenkinsop and Lindsay Harkins were the ring-leaders in the operation while Andrew Burns, Robert Dalrymple and James Elvin acted as couriers. All five men were convicted of being concerned in the supply of cocaine in Scotland, England and Spain between 2007 and 2009 following a trial at the High Court in Glasgow last month, the Crown Office said. Blenkinsop, 43, from Annan, Dumfries and Galloway, was sentenced to 12 years behind bars and Harkins, 44, of Helensburgh, Argyll and Bute, was jailed for nine years and 341 days at the High Court in Edinburgh. Stuart Cassidy, interim district procurator fiscal for Dumfries, said: "This case involved a high-level international drugs ring which used couriers to traffic an estimated £40 million in cocaine from Spain to Scotland. "The drugs - cocaine, amphetamines and cannabis - were destined for the streets of Glasgow but some were also distributed in the Dumfries area. "Drug trafficking at this level is of the utmost seriousness and the damage it does to our young people and Scotland's communities cannot be underestimated. "The Crown will continue to vigorously prosecute drug dealers and will use every power available to disrupt their criminal enterprises and seize their assets." In 2004 Blenkinsop was also sentenced to four years in prison in Spain following a conviction for drug dealing. In sentencing comments released following the hearing, judge Lord Doherty told Blenkinsop: "You have been convicted of being concerned in the supplying of cocaine between January 29 2007 and June 19 2009. "It is clear on the evidence that you were one of the principals in a major cocaine distribution operation which involved cocaine being purchased in Spain, brought back to Scotland, adulterated here using mixing agents and industrial presses, and then being sold on. "Large quantities of money raised in the drug distribution operation was exchanged into euro for onward transfer to Spain. Others operated to your instructions. Cocaine was purchased regularly in Spain in quantities of 2kg at a time. "Those who play leading roles in drug distribution operations involving class A drugs must expect to be dealt with severely by the courts." Blenkinsop was also convicted of being involved in the supply of cannabis resin and amphetamines while Harkins was found guilty of supplying amphetamines. Dalrymple, who is 43 and from Gretna, Dumfries and Galloway, was sentenced to six years and 357 days imprisonment after being convicted of being involved in the drugs operation as a courier in 2009. Elvin, 35, from Clydebank, West Dunbartonshire, was sentenced to five years and 351 days after also being convicted of being a courier. He brought back two kilograms of cocaine from Spain on April 30 2009 and was about to travel back the following day with more than 37,000 euros (£31,000) in cash hidden in his bag when he was caught. Burns, who is 56 and from Helensburgh, was handed a sentence of seven years and 349 days after he was convicted of being concerned in the supplying of cocaine between January 29 2007 and March 17 2009.

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