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Huffington Post…

A father of three was trying to let smoke out of his apartment when he opened a window and fell out of his fifth story apartment on the Upper East Side. From the Daily News : Keith Mastronardi, 31, was discovered dead about 10:30 p.m. Sunday in the courtyard behind his building on E.74th St. between First and Second Aves., police said. Sources told the News that Mastronardi had been drinking and authorities believed his death was an accident. Mastronardi was head of exotic derivatives at Vyapar Capital Market Partners . His death was at least the second deadly fall in New York this month. In March, a women trying to retrieve her cell phone fell from the 26th-floor of a TriBeCa high-rise. Last December, a Citigroup analyst jumped to her death from Trump Place.

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Keith Mastronardi, Wall Street Trader, Dead After Fall From Upper East Side Apartment

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The New York City Council has unanimously approved Extell Development Co.’s proposed Riverside Center, a 3.1-million-square-foot mixed-use project on the Upper West Side. The eight-acre project will span West 59th Street to West 61st Street between West End Avenue and the West Side Highway. It will consist of 2,500 apartment units in five high-rise towers and retail space — along with a school, as negotiated as part of the agreement approved…

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Extell’s Riverside Center Project Clears Hurdle

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Mining CEO Defiant After West Virginia Disaster Announces Retirement

December 4, 2010

RICHMOND, Va. — Massey Energy Chairman and CEO Don Blankenship announced Friday that he will retire at the end of the month, finishing a nearly 30-year career that included big profits for the company but also labor conflicts, battles with federal regulators and a 2010 mine explosion that killed 29 people. A millionaire who rose from obscure beginnings in coal country, Blankenship oversaw an ongoing plan to expand the production of Appalachian coal for growing Asian markets, but will leave behind a company that was badly shaken by a history-making mine disaster. The company’s board of directors named current president Baxter F. Phillips Jr. as Blankenship’s successor, effective Friday. Blankenship’s retirement date is Dec. 31. “After almost three decades at Massey it is time for me to move on,” Blankenship said in a prepared statement. “Baxter and I have worked together for 28 years and he will provide the company great executive leadership.” Blankenship, who has served as chairman and CEO since 2000, leaves at a time when Massey’s safety practices are under scrutiny by the federal Mine Safety and Health Administration and the West Virginia Office of Miners’ Health, Safety and Training. It also comes at a time when Massey’s board is viewing its strategic options. In recent weeks there have been reports that Massey is a possible takeover target for rivals such as Alpha Natural Resources and steel industry giant ArcelorMittal SA. Based in Richmond, Va., Massey is the nation’s fourth-largest coal producer by revenue. It operates 19 mining complexes in Virginia, West Virginia and Kentucky. Massey is under investigation for the April 5 explosion at its Upper Big Branch mine in West Virginia that killed 29 and injured two. The blast was the worst U.S. coal mining disaster since 1970 and the subject of civil and criminal investigations. Blankenship was expected to meet with state regulators on Dec. 14 as part of their investigation. Last month, Blankenship blamed the explosion on a sudden rush of natural gas into the underground coal mine. He added that the infusion could have been mitigated if MSHA had not forced Massey to change its ventilation plan in the mine. MSHA investigators have said a buildup of coalbed methane and coal dust might have contributed to the blast. Massey said it lost money in the third quarter of this year because of tougher federal regulations after the mine blast that hurt production Blankenship grew up beside the railroad tracks a tiny town in the Tug Fork River valley along the Kentucky-West Virginia border. He was raised by his single mother, who owned a gas station and grocery store. He was an accountant who worked for two baking companies before joining Massey’s Rawl Sales & Processing Co. in 1982. Bill Raney, president of the West Virginia Coal Association, called Blankenship “one of the most aggressive, intelligent and certainly one of the most outspoken leaders in the coal industry. “I don’t think it’s any of my business whether it’s good or bad, I’ve just observed that Don’s been quite a leader over the years,” Raney said. Blankenship rose in the company’s ranks, in part, for his handling of a labor dispute involving the United Mine Workers of America. Massey has been strongly anti-union under Blankenship’s leadership. He keeps a television set in his Kentucky office that was hit by a stray bullet during a dispute. And as he rose through the company, his personal fortune increased as well. According to Associated Press calculations, Blankenship earned $17.3 million in total compensation last year, including salary, perks and performance-related bonuses. That was down from $19.7 million in 2008. The bulk of Blankenship’s 2009 compensation came in a performance award of $11.5 million, nearly double the $6 million he earned in 2008. UMW spokesman Phil Smith called the announcement the end of a long, difficult chapter in the coal industry’s history, “one that all too often been associated with human tragedy.” The UMW, which has fought with Blankenship for decades, called for his removal at the company’s annual meeting this spring, after the April explosion. A number of Massey’s shareholders also asked that Blankenship’s role be re-examined. The board voiced its support for Blankenship in April, saying it would not be a good time to change leadership while the Upper Big Branch investigation was continuing. “We are gratified that this action has finally occurred,” he said, adding that it’s an opportunity for the industry to step away from its negative image. Since the Upper Big Branch explosion, public attention has been focused on Massey’s underground safety record. The company also has a history of environmental violations at its surface mines. Pittsburgh attorney Bruce Stanley, who has sued Massey at least five times over the years in cases ranging from personal injury and pollution to wrongful death, said Blankenship has left a legacy in the Southern coalfields, where his mountaintop mansion sits high above his neighbors. “He poisoned his own back yard,” said Stanley, one of the lawyers behind a case involving some 700 people who blame their polluted wells and wrecked health on coal slurry that Massey and subsidiary Rawl Sales & Processing pumped into worked-out underground mines. Blankenship’s retirement has few implications for the pending lawsuit, he said. His presence wasn’t just felt in the coalfields. Blankenship also used his wealth to try and influence West Virginia politics and public policy. In 2006, he spent more than $1.8 million to promote 41 hand-picked Republican candidates through contributions and his personal political action committee. He also spent $3.4 million to help elect the first Republican to the state Supreme Court in 2004. The U.S. Supreme Court would late cite that campaign in a ruling involving Massey Energy and the West Virginia Supreme Court. “All he’s done in the past few years is bring negative attention to Massey,” said environmental activist Larry Gibson, who has long battled Massey Energy and the practice of mountaintop removal coal mining in Appalachia. Lorelei Scarbro, a coal miner’s widow from Rock Creek, has fought for years to stop Massey’s planned mountaintop removal operation on the Coal River Mountain, where many residents say their health, property values and quality of life have been hurt by dust, vibrations, water pollution and more. “The citizens of the mountain communities can only hope that Baxter Philips will be a man of honor – a man who puts the health and safety of miners and communities above profits,” she said. “I know coal companies are in business to make money, but we must no longer be asked to pay such a high price for cheap energy. Blankenship did not immediately respond to a call seeking comment Friday night. ___ Smith reported from Morgantown, W.Va.

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David Callahan: Why the Rich Cheat: A Primer on Upper Class Criminality

December 3, 2010

A persistent puzzle about financial crimes is that they often involve fabulously rich executives or traders who risk everything to do even better. The rest of us can only wonder: Just what, exactly, are these people thinking? That question came up often during the insider trading scandals of the 1980s, which brought down two insanely rich Wall Street superstars, Ivan Boesky and Michael Milken. It arose when billionaire Martha Stewart faced charges — and eventually served prison time — for acting on inside information to avoid losses of a few hundred thousand dollars. And the question is sure to be asked often in the months ahead as federal authorities round up more well-heeled suspects on insider trading charges. This latest government crackdown on insider trading has already ensnared a number of very wealthy individuals. Most notable among them is the billionaire Raj Rajaratnam and the top IBM executive Robert Moffat. Joseph Skowron, the hedge fund manager involved in the FrontPoint case — but not charged with any crime — lived in 10,000-square-foot mansion in Greenwich, Connecticut and, according to news reports, “amassed a collection of luxury cars that has included a blue Ferrari 458 and a black Porsche Cayenne.” And just the other day, authorities arrested wealthy San Francisco tax attorney Arnold McClellan , a partner at Deloitte Tax LLP, on charges of insider trading. His wife Annabel was also arrested. The McClellans lived the good life in San Francisco, with a 6,000-square-foot home in Pacific Heights. What’s up with these people, and so many others like them? Why would they risk so much when they already have everything? Well, as I argued in my book The Cheating Culture , a number of converging factors are usually at work when otherwise law-abiding people with lots of money turn into criminals. One is a persistent focus among those who are wealthy and competitive on their relative, rather than their absolute, well-being. A 6,000-square-foot house may sound pretty big to most of us, but it may not feel that way if those in your peer group own 10,000-square-foot homes and vacation places in Hawaii to boot. Likewise, a hedge fund guy who makes $10 million a year would seem to be doing amazingly well — except when he compares himself to the trader down the street in Greenwich who is making $100 million. Raj Rajaratnam was worth $1.5 billion in 2009 — big money, but not compared to George Soros who was worth $13 billion. As the economist Robert Frank points out in his book, Luxury Fever , the push to improve one’s relative position is actually quite rational and may be hardwired in us. If you’re the person with the smallest house in the neighborhood, even though you live in a big house, you may look less like you’re going places and get fewer opportunities thrown your way. If you’re the person wearing the $500 suit, you may lose out to the guy wearing the $1,000 suit, all other things being equal. Of course, various Wall Steeters have put the point about relative position in simpler terms over the decades: Money is how people keep score on Wall Street. If you want to be a winner, you need to make more than the next person — regardless of how much you make already. That imperative can lead people to do some pretty stupid, and illegal, things. Even small amounts of money, such as in Martha Stewart’s case, can seem significant because highly successful people often believe that they are winners because they fight relentlessly to score each and every point. Second, criminal behavior can be rooted in the ever rising bar of material expectations and the financial pressures that result. If you travel in circles where it is normal to have a spacious apartment on the Upper East Side and a place in the Hamptons, you’re facing a heavy lift to achieve and sustain that standard of living yourself. In this situation, it does make a difference whether you make $5 million a year or $15 million. Throw in a private jet and a place in Aspen as part of the norm, as well as philanthropic commitments, and you’re not going to be in the game without an income that is reliably in the mid-eight figures. It is easy for anyone to get financially over-extended, and this happens to the rich all the time. There is a long history of wealthy people who have crashed and burned in scandal because they turned to criminal actions to sustain an unaffordable lifestyle. For a particularly egregious case, recall the suicide a few years back of Jeffrey Silverman , the Upper East Side financier — with homes in Bridgehampton and Palm Beach — who stole from his own company to make ends meet. He killed himself as the net began to close. New York magazine called him “The Man Who Had Everything.” Unfortunately, he couldn’t afford everything. Finally, there is a more pedestrian reason why the rich cheat and break the law. Because they can — or think they can. When you’re part of a winning class which basically owns our political system, it can be easy to think that you’re above the rules. Or that you can avoid punishment when you break the rules by pushing the right buttons. Of course, this belief in impunity is largely correct. Most financial crimes do not result in punishment. The rich know the odds favor them when they cheat and the rewards can be vast. Until that calculus changes, big financial crimes will keep on coming.

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Kids II Takes 100,000 SF at Terminus 200 in Atlanta

September 12, 2010

Kids II leased 100,000 square feet at Terminus 200 in Atlanta’s Upper Buckhead submarket. The infant product company will move its headquarters to the 25-story tower in January 2012. The agreement includes a trade showroom on the lobby level. Kids…

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Europe Ahead: UK inflation to drop below the upper limit for the first time since February

September 12, 2010

Europe Ahead: UK inflation to drop below the upper limit for the first time since February

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West Virginia Mine Explosion Investigators Find New Evidence Of Explosive Methane Levels

August 26, 2010

CHARLESTON, W.Va. — A federal official says a handheld meter found deep inside the Upper Big Branch mine detected explosive levels of methane before a blast killed 29 miners – the first concrete evidence of dangerous concentrations of gas ahead of the April 5 disaster. The meter detected 5 percent methane in the Raleigh County mine’s atmosphere, Mine Safety and Health Administration official Kevin Stricklin told The Associated Press in an interview. The find could be significant because methane isn’t explosive unless it makes up 5 percent to 15 percent of the atmosphere. While a preliminary report issued by MSHA in April blamed methane and coal dust for the explosion, investigators continue to scour the underground mine to find where the blast started and what may have caused it. Richmond, Va.-based Massey Energy Co., the mine’s owner, has said high levels of methane may have poured into the mine and overwhelmed safeguards just before the explosion. General counsel Shane Harvey said the monitor shows the mine’s methane level going from zero to 5 percent in 3 minutes. “That’s the reason we believe, one of the reasons, we believe there’s a sudden inundation of methane.” Previously, MSHA had said only that methane monitors from the mine hadn’t been tampered with before the explosion. Former Massey employees claimed it was routine to electronically “bridge” machine-mounted monitors to prevent them from cutting power if they detected methane approaching dangerous levels. Investigators found the handheld meter in an area near six bodies recovered near the mine’s longwall mining machine, Stricklin said. It was found several weeks ago and has been tested by the agency. Investigators hoped to search the area again as soon as Thursday for more handheld gas meters. They should have found at least one more meter because miners routinely carry the devices, among other things, Stricklin said. MSHA suspects the missing devices could be buried under loose rubble. “We expected to find at least two remotes and we only got one,” Stricklin said. “The one detector that we found was the one detector that had seen 5 percent of gas.” The Upper Big Branch explosion was the worst U.S. coal mining disaster in 40 years. Besides the civil investigation, it is the subject of a federal criminal probe directed by the U.S. attorney’s office in Charleston.

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Mine Workers Tipped Off Before ‘Surprise’ Inspections, Federal Regulator Says

August 26, 2010

WASHINGTON — Some mine companies are tipping off their underground workers before federal officials make surprise inspections, an illegal practice that has become more prevalent since a West Virginia explosion killed 29 miners, the nation’s top mine official said Thursday. “We’re looking at this as a chronic problem without question,” Mine Safety and Health Administration director Joe Main told The Associated Press. “We have found enough evidence to know that we need to act to beef-up enforcement of the law to prevent this advance notice.” Main’s comments came as his agency issued a special guidance bulletin to mines around the country clarifying the ban on giving advance notice of inspections. The government has stepped up surprise inspections nationwide in the wake of the April explosion at Massey Energy’s Upper Big Branch mine in West Virginia. Some workers at the mine testified that managers found ways to tip off miners ahead of time so they could pass inspections. Massey officials have denied issuing any illegal warnings, but the company faces civil and criminal investigations. Advance notice could give miners anywhere from 10 minutes to more than an hour to hide safety problems such as improper ventilation or disabled methane monitors while inspectors make their way from the main office to locations thousands of feet underground. MSHA has already issued 28 citations for advance notice violations this year. It issued 31 for all of last year – the highest number in a decade. To combat the problem, MSHA has turned to more aggressive tactics like commandeering the phones as soon as inspectors arrive or driving up in cars the mine company won’t immediately recognize. But it’s become a dangerous cat-and-mouse game as some mines post lookouts or install infrared beams that alert them when anyone enters the property. “At some of these mines, there’s just one long dirt road where they can see you coming,” said Eddie Sparks, MSHA’s acting assistant district manager for enforcement in Barbourville, Ky. “Some of the coal truck drivers can get on the radio and call ahead before you ever get to the mine.” Sparks said that’s what happened on April 19 when inspectors drove up to Manalapan Mining Co.’s RB No. 12 mine in Harlan County, Ky. Inspectors monitoring CB radio heard truck drivers alerting the company. At another inspection the same day, MSHA officials seized control of phone lines as soon as they arrived at Left Fork Mining Co.’s Straight Creek No. 1 mine in Bell County, Ky. But Sparks said inspectors still overheard a mine employee on another phone calling down to workers to shut the belts off because inspectors were outside. “It’s a problem because there’s a lot of phones at a mine, like the guard shack and various mine offices,” Sparks said. “You can get to different phones that you try to monitor, but before you get to the other ones, they can call in ahead of you.” Both of the Kentucky cases were part of a 57-mine inspection blitz launched in the days following the April 5 Upper Big Branch disaster. The agency has targeted mines with ventilation problems, high methane levels and buildup of coal dust – factors believed to have triggered the massive explosion at Upper Big Branch. That theory was bolstered on Thursday when MSHA said a handheld meter found deep inside the Upper Big Branch detected explosive levels of methane before the blast. The meter detected 5 percent methane in the mine’s atmosphere, according to Kevin Stricklin, MSHA’s chief of coal mine safety. Carol Raulston, a spokeswoman at the National Mining Association, said MSHA’s response has been overly aggressive considering that most mines have a safe track record. “MSHA’s high public profile on this inspection technique is offensive to the vast majority of U.S. mines that are trying their best to comply with all safety requirements and to improve miner safety,” Raulston said. “The conditions we’re finding when we’re able to circumvent some of these intended advance notices are just appalling,” Main said. In some cases, ventilation curtains had been removed, miners had not removed dangerous piles of rock dust or workers were mining in areas where they were not permitted, Main said. Current law provides for up to a $1,000 fine and imprisonment up to six months for anyone giving advance notice of an inspection. A mine safety bill working its way through the House would boost the prison term up to five years and raise the fine up to $250,000 for individuals and $500,000 for corporations that knowingly give advance notice to impede an investigation. In the meantime, MSHA is working to “change the culture in the mining industry,” Main said. “Showing up when we’re least expected is a tool that’s been used and will continue to be used.” ___ Associated Press writer Tim Huber in Charleston, W.Va., contributed to this report.

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Andrew Ross Sorkin Pays More Than Asking Price For New Apartment

August 4, 2010

Hopefully Andrew Ross Sorkin did his research before buying his new apartment. The New York Times reporter recently paid $2.315 million for an apartment listed for $2.295 million! For those who would rather not do the math, that’s $20,000 more than the asking price. The 3-bedroom/3-bathroom co-op unit is on the Upper West Side, at 118 West 79th Street — a mere stone’s throw from both Central Park, and Zabar’s! Sorkin and his wife can look forward to high ceilings, marble floors, granite countertops, and a 24-hour elevatorman. Take a look at the apartment below:

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Rich Are Biggest Mortgage Defaulters By Far: NYT Study

July 8, 2010

LOS ALTOS, Calif. — No need for tears, but the well-off are losing their master suites and saying goodbye to their wine cellars. The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves like this one in Silicon Valley.

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Massey CEO Don Blankenship’s Bad Week Ahead

May 17, 2010

Massey Energy Co. CEO Don Blankenship has a tough week ahead. Blankenship, whose actions at the Massey helm have been under scrutiny after a massive explosion at the company’s Upper Big Branch mine in West Virginia killed 29 workers last month, will face shareholders tomorrow at the company’s annual meeting.

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Massey Mine Violations More Serious Than Average, Labor Department Reports

April 15, 2010

By Mario Parker April 15 (Bloomberg) — Massey Energy Co.’s Upper Big Branch mine, where 29 people were killed in an April 5 explosion, had more numerous and more serious violations than the national average, the U.S. Labor Department said in a report to President Barack Obama today. The department had been watching Massey and Upper Big Branch closely because of its history of violations. Massey totaled 515 violations at the mine in 2009 and 124 so far this year with fines of about $1.1 million, the report showed. “In short, this was a mine with a significant history of safety issues, a mine operated by a company with a history of violations, and a mine and company that MSHA was watching closely,” the department said. The department also suggested reforming mine safety laws by giving the MSHA the power to subpoena information, ensuring miners do not lose pay when mines are closed by federally ordered withdrawals and requiring mine operators to put penalty amounts into escrow. Obama met at the White House today with Labor Secretary Hilda Solis and Joe Main, head of the MSHA, to get the preliminary report on the blast near Montcoal, West Virginia, which was the worst coal mining disaster since 1970. ‘Pattern of Violation’ The agency said that it increased the number of citations given to Upper Big Branch in 2006 and that the next year it informed Massey that it could be placed on a “pattern of violation” list, which permits heightened scrutiny. Massey then reduced the level of serious violations to avoid being placed on the list, the MSHA said. The 515 citations at Upper Big Branch in 2009 were 76 percent more than the 292 national average, according to MSHA data. About 39 percent of the violations were deemed significant and substantial, compared to a national figure of 33.6 percent. A “significant and substantial” violation is one that is “reasonably likely to result in a reasonably serious injury or illness under the unique circumstance contributed to by the violations,” Amy Louviere , public affairs director for the MSHA, said in an e-mail. ‘Repeated and Substantial’ On March 25, the mine was issued a significant and substantial violation that showed a dust collection system “has not been maintained in a permissible and operating condition,” according to the MSHA Web site. Another violation, dated March 15, cited “accumulations of loose coal and float coal dust” up to 6 inches deep under a tail roller. In “perhaps the most troubling statistic,” the MSHA issued 48 withdrawal orders at Upper Big Branch for “repeated significant and substantial violations” in 2009. “Massey failed to address these violations over and over again until a federal mine inspector ordered it done,” the department said in the report. “The mine’s rate for these kinds of violations is nearly 19 times the national rate.” The MSHA said the cause of the disaster is still undetermined. Carbon monoxide alarms rang at 3:02 p.m. local time, according to the report. The agency said most mine explosions are sparked by accumulations of methane, combustible coal dust and air. “Because these combinations are so dangerous, MSHA requires every mine to ensure (through ventilation and rock dusting) methane and coal dust levels remain below the point at which they become combustible,” the report said. After being briefed today, Obama said “violators like Massey have still been able to find ways to put their bottom line before the safety of their workers.” ‘Rushing to Judgment’ After Obama spoke, Massey issued a statement calling Obama’s statements “regrettable” and saying “we fear the president has been misinformed” about the company’s record and the coal mining industry in general. “Unfortunately, some are rushing to judgment for political gain or to avoid blame,” Massey said. U.S. Senator Jay Rockefeller , a West Virginia Democrat, said the investigation into the explosion may take as long as 10 months to produce “conclusive answers” on the cause. The MSHA thinks they “know what some of the causes” of the explosion “might have been,” Rockefeller told reporters after meeting with MSHA officials on Capitol Hill. “It’s going to take a considerable number of months” for them to come to their final conclusion, perhaps six to 10 months, he said. Rockefeller may propose new mine safety legislation before the MSHA’s investigation is complete. To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net .

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Leo W. Gerard: Wrongful Fatalities, Failed Worker Protections

April 9, 2010

In both cases – the five fatalities in a Washington oil refinery last Friday and the 25 deaths (and four still missing as of writing) in a West Virginia coal mine the following Monday – news reports described the explosions that killed workers as industrial “accidents.” When an explosion occurs at a refinery or mine that has been repeatedly fined for heath and safety violations, one question that ought to be asked is just how unexpected was the event. Answering this question is essential because: less time plus less money spent on safety measures equals more profit for owners. America must introduce new factors into that computation to protect the lives and limbs of workers who produce the energy on which this country depends. One factor is larger safety violation penalties – fines and shutdowns costly enough to outstrip profitability. And when corporations consider fines just another cost of doing business, another crucial factor is the ability to charge CEOs with criminal negligence when their corporations flagrantly violate safety regulations – an ability that other countries have written into law. As it stands now, corporations have discovered that they can continue profiting even after unconscionable disasters. Take BP for example. In 2005, a massive blast at the BP Texas City refinery killed 15 and injured 180. Business Week noted that BP continued to turn a profit every year after the Texas catastrophe, even though it paid more than $2 billion for legal costs and fines and for remediation programs at its U.S. refineries. Regulatory agencies have repeatedly cited and fined both Tesoro, which operates the Anacortes, Wash. refinery where an explosion killed five workers and severely burned two last week, and Massey Energy Co., which owns the Upper Big Branch mine in Montcoal, W.Va., where 25 miners are dead and four missing. Since 2005, regulators cited Massey’s Upper Big Branch Mine 1,342 times for safety infractions and charged Massey $1.89 million in fines , $1.3 million of which Massey is contesting. Of the violations, 86 were for failing to obey a ventilation plan to control explosive methane gas and coal dust. These are the very factors suspected in Monday’s deadly blast. Regulators issued 12 of those citations in the past month, and miners told the New York Times that dangerous gas accumulation forced evacuations of the mine several times in recent weeks. Regulators found two violations on Monday , before the explosion. In January, agencies imposed the largest fines in the mine’s history for two violations, including one case in which a mine foreman admitted he’d known of a ventilation problem for three weeks. In 2008, Massey paid what federal prosecutors said was the largest settlement in the history of the coal industry — $4.2 million in criminal fines and civil penalties — after a subsidiary pleaded guilty to criminal mine safety violations for a January, 2006 fire that killed two workers in Massey’s Aracoma Alma No. 1 Mine. In addition those deaths at a Massey mine and the 25 killed Monday at Upper Big Branch, three other miners died at the Upper Big Branch mine since 1998. The Charleston Gazette reported : “In seven of the last 10 years, the mine has recorded a non-fatal injury rate worse than the national average for similar operations, according to MSHA statistics.” Serious safety concerns prompted federal investigators to temporarily halt work in portions of the Upper Big Branch mine more than 60 times since the start of 2009, the Pittsburgh Post-Gazette reported after reviewing U.S. Mine Safety and Health Administration records. Safety was such a crisis at the Upper Big Branch mine that MSHA sent Massey a letter on Dec. 6, 2007 warning that its serious violations over the previous two years were so far above average that the mine could be designated as a pattern violator and subjected to stricter federal oversight, the New York Times reported . The letter noted that in 2006 and 2007 MSHA had found nearly twice the national average of serious violations at the mine. Within three months, the mine reduced the number by a third, escaping the extra scrutiny. Still, the total remained above the national average. The citations and fines do not seem to faze Massey CEO Don Blankenship. He told a radio station: “Violations are unfortunately a normal part of the mining process.” He also previously told Forbes: “We don’t pay much attention to the violation count.” Despite the deaths, all of the violations and the fines, the Massey Energy web site defends the company safety record, contending that 2009 was the 17th year out of 20 that the company scored above the industry average for safety — this assertion although the number of safety violations in 2009 doubled from the previous year, totaled 458 and included 50 citations for breaches Massey, the nation’s fourth largest coal company, knew existed but failed to correct. Just like Massey, Tesoro claims that its safety record has improved – despite citations and fines and five deaths Friday. In the company fact sheet, Tesoro said its recordable injury rates have declined by 30 percent over three years. The Washington state Department of Labor and Industry fined Tesoro $85,700 a year ago for 17 serious health and safety violations. These are violations with the potential to cause serious injury or death. In addition, the department found 150 safety deficiencies at the Anacortes, Wash., refinery. Tesoro appealed and got all but three of the most serious violations thrown out and the fine reduced to $12,500. The settlement required Tesoro to hire a safety consultant to examine the refinery. That consultant began work at the plant last month. Immediately after the five refinery workers died, the American Petroleum Institute and the National Petrochemical and Refiners Association jumped to defend refining safety . Before funerals were held and with two workers still hospitalized with life-threatening burns, the Petroleum Institute complained that the industry wasn’t getting credit for health and safety improvements. And the National Petrochemical and Refiners Association contended that the industry has lower injury rates than manufacturing generally. The problem with their numbers is that they mingle deaths with OSHA counts of slips and falls – taking the focus off incidents like the fire ball that killed the five Tesoro workers, or the blast that killed 15 at Texas City, or the explosion at another refinery in Anacortes in 1998 that killed six workers. Also, they don’t want to count injuries to or deaths of subcontractors who refineries often hire to perform dangerous maintenance work . At Tesoro , a contractor was crushed to death in 2002 and three contract workers were hospitalized in 2006 for exposure to naphtha. In addition, the OSHA numbers used by the refining industry associations exclude explosions and fires at refineries that had the potential to maim and kill both workers and community members but, instead, miraculously resulted only in “close calls.” OSHA Assistant Secretary David Michaels contradicted the refining industry association safety assertions, saying: “The petroleum industry has a long way to go before we can feel comfortable that workers there are adequately protected.” Similarly, Daniel Horowitz, a Chemical Safety Board spokesman, told the Seattle Times , a disproportionate number of incidents occurred at the 150 refineries in the U.S., compared with infractions at tens of thousands of chemical plants handling other hazardous materials. Of the 18 cases the Chemical Safety Board is investigating, seven involve oil refineries. Republicans and Tea Partiers are running around like Chicken Little screaming that government is too big. Thirty workers killed in explosions in four days is what happens when government is too small, when right-wing strategists like Grover Norquist have gotten their way and shrunk regulatory agencies to a size where they can be drowned in a bathtub. Like the Wall Street CEOs who recklessly speculated with America’s economy for their personal profit, industrial CEOs have carelessly gambled with worker’s lives for personal gain. The “free market” doesn’t control that immoral behavior. Government must do it. And when it does, it must have the power to impose fines or workplace shut downs that will damage the bottom lines of CEOs who care about nothing else. And it must have the power to criminally charge and potentially imprison CEOs, treating them the same as drunk drivers who risk other peoples’ lives. In 1946, a group of miners from Illinois wrote their governor seeking his help in enforcing regulations against dangerous coal dust accumulation in a Centralia Coal Co. mine. They wrote: “In fact, Governor Green, this is a plea to you, to please save our lives.” The Centralia Coal Co., despite being cited for violations, didn’t acknowledge a problem. On March 25, 1947, a coal dust explosion killed 111 Centralia miners, including three of the four who sent the letter. Woody Guthrie wrote the song, “The Dying Miner” after the Centralia explosion, including these lyrics: “I can hear the moans and groans, More than a hundred good men. Just work and fight and try to see, That this never happens again.” More than a half century later, the protections and enforcement for miners, steelworkers, refinery workers, paper workers and others remain inadequate. The proof is that the explosions and deaths continue to occur over and over again. The slaughter must stop now. Workers go to jobs to earn their daily bread. They don’t go to die.

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Wood Partners Announces Leadership Changes

April 9, 2010

One of the Country’s Largest Multifamily Developers Has Made Changes to Its Upper Ranks, With Ryan L. Dearborn Taking Over as CEO and Joseph Keough as COO

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Wood Partners Announces Leadership Changes

April 9, 2010

One of the Country’s Largest Multifamily Developers Has Made Changes to Its Upper Ranks, With Ryan L. Dearborn Taking Over as CEO and Joseph Keough as COO

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Rescuers Seek Survivors at Massey West Virginia Mine After Blast Kills 25

April 6, 2010

By Christopher Martin and Jim Polson April 6 (Bloomberg) — Rescuers are trying to locate four miners who may be trapped in a Massey Energy Co. coal mine in West Virginia, where an explosion yesterday killed 25 people, the worst death toll in 26 years. Workers at the Upper Big Branch mine were drilling three holes near where the missing miners may have been during the blast, Governor Joe Manchin told reporters at the site early today. Other efforts were halted because of dangerous levels of methane and carbon monoxide. Two miners were hospitalized, Richmond, Virginia-based Massey said yesterday in a statement. West Virginia, where Massey is the largest coal producer, has had more mine fatalities since 1900 than any other state, accounting for about one-third of the nearly 105,000 deaths. President Barack Obama today offered his “deepest condolences” to the families of the miners who died in the explosion. Obama spoke with Governor Manchin yesterday and said today that the federal government has offered whatever assistance is needed in the rescue effort. The mine, located near Montcoal, West Virginia, about 46 miles (74 kilometers) south of Charleston, is run by Performance Coal Co., a unit of Massey. Upper Big Branch was the site of two fatal accidents in the past decade, a state Web site shows . Safer Mines Safety improvements had been cutting the number of deaths in mining accidents. The 18 fatalities reported in the U.S. last year was the lowest total since at least 1900, according to the U.S. Mine Safety and Health Administration, or MSHA. The agency has issued more than $900,000 in fines for the Upper Big Branch mine in the past year, according to federal data compiled by Bloomberg. Massey is fighting more than $250,000 of the largest fines, some involving ventilation systems designed to prevent the buildup of methane gas and coal dust that can cause explosions. Yesterday’s mining accident was the worst since a fire killed 27 workers at the Wilberg complex in Utah in 1984, according to the U.S. Mine Rescue Association . Massey dropped $6.24, or 11 percent, to $48.45 in New York Stock Exchange composite trading, the biggest one-day decline since June 22. The shares have risen 15 percent this year. Lost Production “There will certainly be financial impact to Massey,” said Pearce Hammond , an analyst at Simmons & Co. International in Houston who has an “overweight” rating on the stock. “It’s a reflection that you’re likely to lose production and lose the margins from this mine,” Hammond said. Production from Upper Big Branch last year more than tripled to 1.2 million tons, Jeremy Sussman , an analyst at Brean Murray Carret & Co. in New York, said in an interview. An extended closure would have a “meaningful impact” on Massey’s earnings before interest, taxes, and amortization, which he estimates to be $735 million this year and more than $1.06 billion in 2011. “The industry as a whole will feel increased safety scrutiny from the government, from MSHA,” Hammond said. The accident may lead to tougher safety rules and higher operating costs for underground mines, said Kevin Book , a Washington-based managing director for Clearview Energy Partners LLC. In 2008, Representative George Miller , a California Democrat, sponsored legislation to improve mine safety. The bill stalled in the Senate after passing in the House. Higher Costs     The bill was “on the cusp of passing in 2008,” Book said in an interview. “You’re getting that and more. What that translates to is higher marginal costs for underground production.”     Miller, who chairs the House Education and Labor Committee, held a hearing in February on efforts by mine operators to appeal safety violations. Miller has sent two investigators to the Upper Big Branch scene to observe rescue operations, according to his spokesman, Aaron Albright .     MSHA’s “emphasis on safety is saving lives and reducing injuries,” Miller said in a Feb. 23 statement. “Some of the largest mining operations have responded by challenging tougher sanctions at a staggering rate. As a result, miners’ lives are in the crosshairs.” Massey operated 56 mines as of Jan. 31, including 42 underground and 14 surface mines, in West Virginia, Kentucky and Virginia, according to a regulatory filing. Aracoma Mine Two miners were killed by a fire on a conveyor belt at Massey’s Aracoma Alma Mine No. 1 at Melville in Logan County, West Virginia, in January 2006, according to the mining safety administration’s Web site. The agency cited Massey for 25 safety violations, including 21 it said were the result of “reckless disregard” by the mine operator.     The miners would not have died had Massey complied with rules on mine ventilation, the agency said in its final report . MSHA Administrator Kevin Stricklin and District Manager Robert Hardman were on the scene yesterday after the agency was notified of the blast at about 3 p.m. local time. “Our number one priority is to locate the missing miners and bring them to safety,” U.S. Secretary of Labor Hilda Solis said in a statement. In addition to underground mining, Massey uses a technique of mountaintop mining in the Appalachian hills in which peaks are blown away by dynamite to expose coal. To contact the reporters on this story: Christopher Martin in New York at cmartin11@bloomberg.net ; Jim Polson in New York at jpolson@bloomberg.net .

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Novelis Signs 100,200-SF Office Deal in Buckhead

April 4, 2010

Novelis inked a 100,178-square-foot, 14-year deal to move its world and North American headquarters to Atlanta’s Two Alliance Center. The international aluminum producer will occupy floors 18 through 21 at 3560 Lenox Road NE in the Upper Buckhead submarket…

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Madoff Apartment Goes Into Contract: Unknown Buyer Purchase Madoff Penthouse (PHOTOS)

February 8, 2010

After nearly five months on the market, Bernie Madoff’s penthouse apartment has gone into contract . The swanky Upper East Side pad was originally listed for $9.9 million back in September, but was later cut to $8.9 million. No word yet on who purchased the 133 East 64th Street apartment. CHECK OUT THE PONZI KING’s LAIR:

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Madoff’s NYC Penthouse Under Contract

February 5, 2010

Feb. 5 (Bloomberg) — Bernard Madoff’s penthouse apartment on Manhattan’s Upper East Side is under contract to be sold after almost five months on the market.

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Daniel’s Cafe Boulud Scores With $84 Hoisin Duck, $49 Brunch: Ryan Sutton

December 9, 2009

Review by Ryan Sutton Dec. 9 (Bloomberg) — Cafe Boulud is to New York’s Upper East Side what Balthazar is to SoHo. It’s a mostly all-day brasserie where the first-rate cuisine keeps pace with the high-society scene. Things are fancier and pricier uptown at chef-owner Daniel Boulud’s newly revamped 11-year-old establishment. There are $26 Lyonnais power breakfasts, $49 prix-fixe brunches and $175 white truffle shavings in the new Jeffrey Beers-designed dining room. There are also $14 to $19 drinks at the two-month-old bar, where the curried potato chips are some of the best you’ll ever taste. The chips are free. As at Balthazar, Cafe Boulud is where the clientele is more likely to complain about where they’re sitting versus what’s actually on the plate. It’s all at the Surrey hotel, the former home of Boulud’s flagship restaurant, the eponymous Daniel, which relocated 11 blocks south to the former home of Le Cirque back in 1998. So perhaps it’s fitting that the French-inspired fare, as interpreted by executive chef Gavin Kaysen, sometimes approaches the three-Michelin-starred cooking at Daniel. Only two dishes cost over $40. Brown-Butter Foam Take the mushroom, barley and garlic crouton soup. Expect a concentrated dose of pungent, salty earth. Or try the fish soup special. Imagine the clean taste of the Mediterranean, ferried back to New York on a private jet. Brown-butter foam is exactly what you don’t think you want on your squash risotto. No matter. Kaysen makes a case for it. The froth stays on top, allowing the diner to control the levels or rich nuttiness with each bite. Brilliant. These are the type of ambitious, yet rustic dishes you’d want to eat at a bar. Unfortunately with the revamp, Boulud took out the communal counter tables where walk-ins used to dine. Like the new Yankee Stadium, there are fewer seats, although the remaining ones are nicer. Boulud knows this part of town well, with its gallery owners, collectors, curators and mother-daughter cosmetic surgery disasters. This crowd doesn’t really dine at bars. Still. This crowd drinks at bars. Hence Cafe Boulud’s new Bar Pleiades across the hallway. It looks to be straight out of Tim Burton’s “Beetle Juice,” which is to say black, uncomfortable and very 1980s. You wouldn’t want to eat a full meal here, which is perhaps why only small bites are available – - like stellar black-truffle rice balls or perfect gougeres. It’s where you wait for your table. Tables for Two The cocktails are cheaper and more well-balanced than Bemelmans Bar across the street at the Carlyle. Candied pecan bourbon with scotch mixes smoky and sweet with aplomb. Black tea-infused orange liqueur takes the edge off brandy. When you’re finally led to the main dining space, ask for a table near in the front half of the square room; tables for two in the back feel cramped. That’s where I was forced to listen to a well-known finance personality woo a first date for two hours. I saw him on TV the next day wearing a wedding ring. Order game. Squab ballotine features cool, mid-rare meat and intoxicating smoked bacon. Rib-sticking braised hare en civet is finished with a heady sauce of blood, foie gras and liver. Hoisin-glazed duck breast for two ($84) avoids the typically heavy leg meat pairing. Instead, shards of the dark meat are tossed with soba noodles for an unexpected lightness. Try the striped bass. A bone marrow crust with sauce Bordelaise and beans evokes a classic cassoulet. Skip mushy tuna carpaccio and the underspiced black spaghetti. Finish with madeleines. They’re soft, buttery, free. Just as good as the ones at Daniel. Rating: *** The Bloomberg Questions Cost? Less expensive than other high society venues in the neighborhood like Nello and the Carlyle. Sound level? Around 70 decibels at dinner. As loud as the ladies’ perfume section at Bloomingdale’s. Quieter than most brasseries thanks to linens and carpets. Date place? Cramped can be romantic especially with good food to share. Inside tip? Basket of pastries at breakfast for $15. Because a croissant is very Upper East Side; get a bagel on the Upper West. Special feature? Great wines under $60. Will I be back? For dinner, before heading out for drinks at Bemelmans; Bar Pleiades has better cocktails but isn’t sexy enough. Cafe Boulud is at 20 E. 76th St at Madison Avenue. Information: +1-212-772-2600; http://www.cafeboulud.com/cafebouludNY.html . ( Ryan Sutton writes about New York City restaurants for Bloomberg News. The opinions expressed are his own.) To contact the writer of this column: Ryan Sutton in New York at rsutton1@bloomberg.net .

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Manhattan Apartment Prices Drop for Second Straight Quarter; Sales Rise

October 2, 2009

By Oshrat Carmiel Oct. 2 (Bloomberg) — Manhattan apartment prices fell for a second consecutive quarter, helping drive the biggest gain in sales in more than 13 years as buyers seized on discounts. The median price slid 8.4 percent to $850,000 in the third quarter from a year earlier, New York appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said today. The number of sales jumped 46 percent from the second quarter, the biggest third quarter increase since 1996. Values fell for cooperatives and condominiums of every size and price as New York City’s unemployment rate jumped to 10.3 percent in August. While the declines weren’t as deep as the second quarter, Manhattan is far from recovering from a recession and global credit crisis that has led to the loss of more than 183,000 banking and securities jobs in the Americas. Year over year, third-quarter sales declined 16 percent. “We’re turning the corner but we are not at a bottom,” Jonathan Miller , president of Miller Samuel, said in an interview. ‘We still have very tight credit, elevated unemployment and we have shadow inventory.” There are about 6,000 apartments in new developments that haven’t been listed for sale, he said. Inventory Drops Five reports issued today showed overall price declines in Manhattan. The Corcoran Group, which conducts its survey with research company PropertyShark.com , said the median dropped 18 percent from a year earlier. Brown Harris Stevens and Halstead Property LLC put the decline at 14 percent and StreetEasy.com said the drop was 12 percent. The number of apartments for sale declined 4.6 percent from the previous year to 8,389 listings in the third quarter, according to Miller Samuel and Prudential. It was the first year over year decline in sales inventory since the fourth quarter of 2007, Miller said. The ten year average is 7,142 apartments listed for sale in each quarter. Studio apartment prices fell 6 percent from a year earlier to a median of $399,000, Miller Samuel said. One-bedrooms dropped 11 percent to $645,000; two-bedrooms fell 23 percent to $1.18 million and three-bedrooms dropped 41 percent to $2.25 million. Four bedroom apartments plunged 49 percent to a median of $5.18 million, reflecting, in part, a decline in luxury sales, Miller said. Those sales declined 16 percent. The luxury segment is defined as the top ten percent of co-op and condo sales. ‘Meaningful Reductions’ “There were many meaningful price reductions which clearly drove buyers back in to the market,” Pamela Liebman , chief executive officer of New York-based broker Corcoran Group , said in an interview. James Kennedy, 53, is among the beneficiaries of the change in the market. Kennedy, an attorney at the Wall Street law firm Kennedy Johnson Gallagher LLC, started his apartment search in the middle of 2008, hoping to move into Manhattan from Staten Island once his daughter left for college last month. His yearlong search got him more apartment for his money, he said. Kennedy closed in August on a 2,170 square-foot condo in the Financial District. The price was reduced 16 percent. “I wanted to take advantage of the softening in the market and, for $1.6 million, I came away with an apartment that two years ago would have been substantially more,” Kennedy said as movers were clearing his house in Staten Island. ‘Apartment Envy’ The Rector Street apartment has views of Governor’s Island and the Statue of Liberty and is within walking distance of his office. “My friends have apartment envy,” he said. About 36 percent of third-quarter listings included discounts from the original asking price, according to StreetEasy.com , a service that compiles listings from brokers. About 2,900 cooperative apartments were listed with price cuts, a 77 percent increase from a year earlier. There were also 2,400 condo listings with price cuts, 72 percent more than last year, StreetEasy said. In midtown, condo owners pared an average of 8.3 percent off their asking price, while downtown owners trimmed 8.4 percent. Many buyers shunned new buildings. Sales in new developments plunged 65 percent from last year, making new construction only 19 percent of the sales market in the third quarter, according to StreetEasy. Seeking Value “Buyers were no longer walking into sales centers and buying units sight unseen,” Sofia Kim , vice president of research for StreetEasy, said in an e-mail. “People were now looking for value, not Starchitect-designed buildings or unnecessary luxury amenities.” On the Upper East Side, the median price of existing co- ops fell 6 percent to $741,000, according to Corcoran and PropertyShark.com. Condominiums in the area fell 6 percent, to a median of $1.15 million. On the Upper West Side , co-op re- sales slid 15 percent to a median of $744,000, and condos climbed 9 percent to a median of $1.29 million. The average price per square foot of condos on the Upper East Side fell 10 percent in the third quarter to $1,249, according to Halstead and Brown Harris, both owned by Terra Holdings LLC. The average price per square foot of condominiums on the Upper West side also fell 10 percent, to $1,306. Sales at 15 Central Park West figure into that decline, with seven closings there in the third quarter, compared with 23 the same time last year, said Gregory Heym , chief economist for Terra Holdings. The market reports issued today are compiled from public records and brokers’ proprietary data. To contact the reporter on this story: Oshrat Carmiel in New York at ocarmiel1@bloomberg.net .

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Rizzo Realty Joins Koenig & Strey GMAC Real Estate

August 8, 2009

… and Kelly Rizzo-Parker, has joined Wilmette-based residential real estate brokerage firm Koenig & Strey GMAC Real … team with expertise in short sales and distressed properties, specializing in the upper bracket. Agents …

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Rizzo Realty Joins Koenig & Strey GMAC Real Estate

August 8, 2009

… and Kelly Rizzo-Parker, has joined Wilmette-based residential real estate brokerage firm Koenig & Strey GMAC Real … team with expertise in short sales and distressed properties, specializing in the upper bracket. Agents …

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Lobbyists Gain Upper Hand On Obama In Recent Weeks

July 27, 2009

Lobbying interests that President Obama campaigned against last year have gained the upper hand on the White House in recent weeks. In stark contrast to Obama’s first few months in office, special interest groups this summer have aggressively opposed the president’s top domestic priorities. And they have succeeded in slowing legislation to revamp the nation’s healthcare system, won an essential change to climate change legislation and put off efforts to set up a consumer agency in the financial sector.

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