Families in Spain face eviction over stranger loans

 

Fighting eviction for failing to pay the mortgage on his home in Spain's capital, Nelson Castillo is now grappling not only with his own debts but also those of a family he does not know. The 39-year-old and his wife acted as guarantors of another Ecuadoran family's loan under a programme run by an agency that negotiated loans for immigrants. In return, that family acted as the guarantor for Castillo's loan. Now, both families are in arrears. And each of them is legally responsible for its own loan and for the loan it guaranteed. "We were two families and we did not know each other. Ecuadorans are like that. We had to sign the papers and that's it. Goodbye, and each side went its own way," said Castillo. Dozens of anti-eviction activists had gathered outside his Madrid apartment building on Tuesday to prevent court clerks and bank officials from ejecting Castillo and his family from their home. Inside the apartment a volunteer psychologist tried to comfort Castillo's wife, 40-year-old Kelly Herrera, who sat in distress on the couch while the couple talked to police. The couple were given until March 30 to pay their debt of 222,000 euros ($291,000) claimed by the bank. And they are still liable for the loan given to the other family. "Today they are demanding my loan. But later on they will demand the second," said Castillo. The couple's lawyer Rafael Mayoral had requested that the eviction be blocked for "humanitarian reasons" because their two children are minors and a knee injury prevents Herrera from working at the moment. But above all the lawyer argued that the couple are "victims of a swindle". The couple and nine other families are suing an agency, Central Hipotecaria del Inmigrante, which ran a system of "cross guarantors" for loans among people that did not always know each other. "It was a pyramid scheme of financial risk management," said Mayoral. Despite the investigation under way into the agency, the courts have refused to issue a moratorium on evictions. Last week the government approved a voluntary "code of conduct" for banks that aims to help poor homeowners settle their debts and reduce a wave of evictions brought on by Spain's economic crisis. For families whose members are all out of work and have no other source of income, the code obliges signatory banks to restructure their mortgage debt by for example lengthening the term of the loan or reducing its interest rate. The goal is to reduce the number of evictions in Spain, which amount to about 300,000 since the collapse of a property bubble in 2008. But the new code will not help Castillo and his family. "The bank did not give me any option, I wanted to give them the apartment in exchange for clearing my debt but they were not interested," he said. Castillo, a waiter, said with pride that he "only spent a few months out of work" since he moved to Spain in 1996. In 2006 he and his wife decided to buy an apartment while Spain was still in the midst of a property boom. The couple took out a mortgage with a variable rate that started out with a monthly payment of 900 euros. But as Euribor interest rates rose, their monthly mortgage payment shot up to 1,420 euros. "It became impossible to pay. I earned 1,000 euros a month and my wife also did not earn much. Things became complicated. I tried to reach an agreement with the bank but it was not possible. I stopped paying," said Castillo. Castillo said he did not know if the family which signed as the guarantor of his loan has suffered any consequences because he stopped making his mortgage payments. "I only met them the day we signed the papers," he said.

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Troubled Spain, Portugal now desperate for rain

 

Fernando Luna, a burly Spanish farmer, yanks a barley sprout from a field as dry as powder. He examines its roots, which are mostly dead, then tosses the stunted shoot away in disgust. "Worthless! This is worthless!" Luna shouts. Spain is facing its driest winter in more than 70 years and bailed-out Portugal next door is in similar straits. Thousands of jobs and many millions in agricultural output are in jeopardy. Both nations are desperately short of so much: tax revenues, bank credit, jobs, hope for the future. Now, it won't even rain. The landscape in northern Spain is now a palette in shades of ugly. Pale brown fields without crops or pasture stretch off into the distance. A pond for watering sheep has shriveled into a dustbowl. An irrigation canal down the road holds only stagnant water, murky from so much sediment and so little flow. Luna waves this way and that, distraught over fields he says are doomed to yield zero harvest. He has given up his winter crop for lost. "Imagine, the color of vinegar! They should be green, green, green," he says of the barley fields that lack shoots. Stalks should be reaching halfway up the shin at this point. Spain got less than 30 percent of its normal precipitation from December through February. There is a slim window of 10 days or so for it to rain and help farmers like Luna salvage at least part of their winter crops of wheat, barley and oats. And not all regions are as bad off as Huesca, a northern province where the Pyrenees lie and where Luna is president of a chapter of the ASAJA farmers association. But the March weather forecast is not good for farmers — just more blue skies, says Fermin Elizaga of the national weather service. "Out in the countryside, the situation is probably going to get worse," he says. A key concern is how full Spain's reservoirs will be for watering the lucrative fruit and vegetable crops that are the pride and joy of the country's euro40 billion ($52 billion) agriculture and livestock industry. Nationwide, reservoirs are at an average 62 percent of capacity — not that bad — but in Huesca they are just 20 percent. That means farmers get only 20 percent of the water they are normally allotted for irrigation and will have to leave much of their land idle. ASAJA estimates this will cost Huesca province around euro1.3 billion ($1.7 billion) in lost revenue from drastically smaller harvests of peaches, cherries, almonds and grapes. In a good year, 6,000 people work in the Huesca harvest and another 2,000 in canning, packaging and related services. It could be a lean year for them, as it will be for much of Spain, with its nearly 23 percent jobless rate — the highest in the 17-nation eurozone — and an economy expected to slip into its second recession in three years. In Galicia, Spain's lushly green northwestern corner where it usually rains all the time, pastures have no grass this year. Farmers there and elsewhere are being forced to ship in fodder for sheep and cattle at a cost of euro2 million ($2.6 million) a day, according to ASAJA national spokesman Gregorio Juarez. "They're all burned up," says Juarez. Being so used to plentiful rain, Galicia and other parts of northern Spain have fewer reservoirs, so they are less prepared than the often blazingly hot south, where places like Andalusia and Extremadura on the border with Portugal catch every drop of precious rain. In Huesca, one reservoir built in the 1950s is now so low you can see the ruins of a submerged village, Mediano. At the best of times, the tip of its 16th-century church belltower peeks out of the water and boaters row up and touch it. These days, the water is so low you could walk into the church itself if the front door were not sealed up. In Portugal, Joao Dinis, a spokesman for Portugal's National Farms Confederation, said the drought has added to hardships caused by the country's acute financial crisis, which forced it to ask for a euro78 billion ($102 billion) bailout last year, making credit scarce. Farmers are enduring "a very, very difficult" period, with cereal crops badly hit and grazing land in short supply. "It's the worst situation in living memory," Dinis said. He says Portuguese farmers need emergency aid of euro25 million ($33 million). The Farm Ministry is calculating the damages and negotiating exceptional grants for farmers with the European Union. In Robres, a speck of a village in Huesca, barley farmer Jose Manuel Allue is taking the rare step of watering his crop, grains like wheat and barley that are normally fed by rain alone. And he is blowing his entire irrigation quota in just two days, using 6-foot-high (2-meter) sprinklers to soak a piece of land as big as 40 football fields. The pole-like devices shower water with a pleasant, rhythmic spritzing sound. "After that is gone, it is just a matter of looking to the sky and hoping," Allue said, taking long drags on a strong, thick Spanish cigarette as the earthy smell of a pig farm wafts by. Seconds later, something does appear in the sky, but it's not clouds: three water-dumping fire planes returning from a mission further north. Forest fires — a staple of Spanish summers — have broken out in recent weeks because of the dry conditions, awfully early in the year for such blazes. Ditto for Portugal. Allue checks the weather forecast on the Internet or TV first thing each morning and hears talk of little else at the town tavern, but he has a herd of 1,100 pigs to tide him over if his barley crop proves worthless. Juarez, of ASAJA's Madrid office, says a drought is the last thing Spain needs now on top of its economic distress. He used a Spanish adage that when a stray dog is emaciated and mangy, it probably has other problems too. "For a skinny dog, it's all fleas," he says. Translation: When it rains, it pours.

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Spanish House Prices Tumble

 

Spanish house prices tumbled at their fastest pace on record in the fourth quarter, a sign that a long-running property bust will continue to weigh on Spanish households and banks. House prices fall over 11.2% in the fourth-quarter of 2011-the fastest contraction on record. WSJ's Sara Schaefer Munoz has been looking at the data and analyzes how this affects its efforts to deal with its debt crisis. House prices fell on average by 11.2% in the fourth quarter from the same period a year earlier, well below the 7.4% decline in the third quarter, while prices of used homes was down 13.7% in the period, the country's statistics agency INE said Thursday. Both readings are by far the worst since INE started recording countrywide prices in 2007, the peak year for Spain's decade-long property boom. Previously, annual price declines had bottomed out at 7.7% in 2009, and analysts say house prices have only rarely fallen year-to-year since at least the 1970s. The drop indicates Spanish property prices are now correcting at a similar pace to that seen in the U.S. soon after the 2008 financial crisis, and may fall further at least this year. In previous quarters, price drops were somewhat contained, the result of support efforts by the government and banks, fearful of the effect of a housing collapse. Spanish banks hold more than €400 billion ($521.32 billion) worth of loans to the construction and real-estate sector, backed by collateral that loses value as property prices slide further. The amount is equivalent to around 40% of Spain's gross domestic product. TK Raj Badiani, an economist at IHS Global Insight, said government data indicates Spanish house prices are down more than 20% from the 2007-2008 peak, even though other evidence points to a possible drop of more than 30%. "The continued imbalance between the supply and demand of housing suggests that house prices will continue to fall throughout 2012," Mr. Badiani said. "The outlook remains bleak, with the demand for housing expected to shrink throughout 2012 with debt-laden households struggling to cope with a devastated labor market and limited access to credit." Last month, Spain's Finance Minister Luis de Guindos presented a clean-up plan that will force banks to set aside an additional €50 billion this year to cover losses from souring loans, mostly property-related. The plan also seeks to allow a faster correction of the property market this year, so that lower prices trigger some demand in the moribund sector. Earlier this week, INE data showed Spain's property sales continued their recent slide in January, with a 26% annual decline. Last year, just over 361,000 homes were sold in Spain, less than half the number sold in 2007. The clean-up plan and other reforms may only have a delayed effect on the euro zone's fourth-largest economy, the Ernst & Young consultancy said in a report. A lack of demand amid an economic contraction that may stretch until 2014 should keep house prices falling for the next three years, Ernst & Young added. Meanwhile, Spain's bond auction was a mixed bag Thursday, with the Treasury selling slightly less than the maximum targeted amount but paying mostly lower yields to investors. The infusion of cheap cash from the European Central Bank has buttressed bond markets across the 17-nation euro zone, but not always equally. Spain's government bond market hasn't kept pace, while Italy, which at the end of last year had been lumped together with Spain as possibly becoming the "next domino," has swapped places with Spain as the country having to pay less of a premium on its debt. The contrasting fortunes also reflects the market's confidence in Italy's ability to make progress on the fiscal front while Spain falters. Italy's economy is likely to record a primary surplus in 2012. Spain unilaterally revised its budget deficit targets and analysts are skeptical if even those targets will be met.

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American Airlines flight attendant restrained after taking over PA system and screaming 'we're going to crash'

 

A flight attendant had to be restrained by passengers and crew on an American Airlines flight after she started ranting that the plane was going to crash over the PA system. According to news.com.au, she told passengers on the flight from Dallas to Chicago: "We are not taking off. We're having technical difficulties. We are heading back to the gate." First class travellers helped cabin crew subdue the woman after she started screaming things like, "I am not responsible for crashing this plane", talking about 9/11, and rambling about American Airlines' bankruptcy.

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A Moroccan teenager killed herself after a judge forced her to marry her rapist.

 

The 16-year-old girl, named as Amina Filali, ate rat poison after a Tangier court which was supposed to be punishing her 26-year-old attacker decided that they should instead be wed.

This is because Moroccan laws exempt a rapist from punishment if he agrees to marry his victim.

Sentenced: A judge in Tangier (pictured) ordered the rapist to marry his victim as 'punishment'

Traumatised by the rape and the forced marriage, Moroccan newspaper al-Massae said she committed suicide at her husband's house.

 

 

 

Hafida Elbaz, director of the Women’s Solidarity Association, criticised the law and said rapists often believed they could avoid punishment by marrying their victims.

Rape victim: Gulnaz, who was pardoned by the Afghan president earlier this month, with her daughter in a Kabul jail. She was today released

The incident throws more light on the way women are treated in Islamic countries.

Last year Afghan 21-year-old Gulnaz was jailed for 'adultery by force' after she was brutally raped by her husband's cousin.

Her attacker was jailed for seven years for the crime that left her pregnant.

A global outrage saw the President of Afghanistan personally pardoning her and releasing her from Kabul's Badam Bagh jail, with no pre-conditions.

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Goldman Sachs director quits 'morally bankrupt' Wall Street bank

 

A Goldman Sachs director in London has resigned after publishing a devastating open letter accusing senior staff of being "morally bankrupt" and bent on extracting maximum fees from clients by offloading unsuitable investment products. Greg Smith, who has left his post as executive director of the firm's equity derivatives business in Europe, claimed that chief executive Lloyd Blankfein and president Gary Cohn have "lost hold of the firm's culture on their watch". He added that "this decline in the firm's moral fibre represents the single most serious threat to its long-run survival".. Smith's charges, which were swiftly denied by the bank, were published in Wednesday's New York Times and raised questions about the firm's relationship with existing clients, whom Smith claimed were referred to as "muppets". Lord Oakeshott, the Liberal Democrat peer and his party's former Treasury spokesman in the Lords, said the matter raised questions about any relationship between the UK government and Goldman. Smith, who joined Goldman as a summer intern and worked at the firm for 12 years, first in New York and then in London, claimed managing directors made their remarks about "muppets" in internal email. "I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It's purely about how we can make the most possible money off them." Selected as one of 10 people, out of a firm of 30,000, to appear in a Goldman recruiting video which is played on college campuses around the world, Smith has hired and mentored new recruits and managed a summer intern programme for the bank. "I knew it was time to leave when I realised I could no longer look students in the eye and tell them what a great place this was to work," he wrote. He said junior analysts are absorbing a culture in which the most important question is "how much money did we make off the client?", and that hearing talk of "muppets," "ripping eyeballs out" and "getting paid" will not turn them into "model citizens". "Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and are not currently an axe murderer) you will be promoted to a position of influence." In response, Goldman Sachs denied that Smith was giving an accurate view of life at the company. "We disagree with the views expressed, which we don't think reflect the way we run our business. In our view, we will only be successful if our clients are successful. This fundamental truth lies at the heart of how we conduct ourselves," the bank said. Fast-track to promotion Smith claims to have advised the five largest US asset managers, Middle East and Asian sovereign wealth funds, and the world's two largest hedge funds. His letter did not name them, but Bloomberg ranks Man Group and Bridgewater Associates as the biggest hedge funds. The LibDem peer Oakeshott said: "We know in the City that Goldmans help themselves before their clients. Now here's the proof. Greg Smith says you get promoted there if you make enough money for the firm and you are not an axe murderer - and the people of Greece and the rest of the eurozone are paying the price after Goldmans cooked their books and Greece joined the euro at an unsustainably high exchange rate. Until this culture is stamped out, Goldmans are not fit and proper to receive a penny of British taxpayers' money or advise our government in any way." Goldman is among the gilt-edged market makers which help to facilitate trading in UK government bonds. Smith claims the fast-track to a Goldman promotion involves persuading clients to invest in stocks or other products "that we are trying to get rid of because they are not seen as having a lot of potential profit"; getting clients to trade "whatever will bring the biggest profit to Goldman" – referred to internally as "hunting elephants" and securing a job trading "any illiquid, opaque product with a three-letter acronym". Goldman has lost the "secret sauce" that allowed it to endure for 143 years and is at risk of losing its clients' trust, wrote Smith: "Goldman Sachs is one of the world's largest and most important investment banks and it is too integral to global finance to continue to act in this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for."

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Escaped prisoner Anthony Downes arrested and held in Amsterdam

 

Anthony Downes, who was arrested in Amsterdam, escaped from a prison van while being transported from HMP Manchester to Liverpool Crown Court in July last year. He had been facing trial for conspiracy to possess firearms with intent to endanger life and conspiracy to cause damage with intent to endanger life. He was convicted in his absence at Woolwich Crown Court and is due to be sentenced at the end of this week. Downes, 26, featured as part of Crimestoppers’ latest Operation Captura Campaign in October 2011, which seeks to locate wanted fugitives believed to have fled to Spain, who are wanted by UK law enforcement agencies. Lord Ashcroft, KCMG, Founder and Chair of Crimestoppers, said: “This is yet another example of how criminals on the run will eventually be caught and I am delighted to hear that this individual has been arrested. “Crimestoppers is seeing huge success with its fugitive campaigns and the fact that we now have 48 arrests out of 65 appeals from our Captura campaign proves that wanted criminals will eventually be brought to justice.” Deputy Chief Executive, Dave Cording, added: “This arrest comes less than six months after the fifth anniversary of Operation Captura. “Through close collaboration with the Spanish police, SOCA and the public, these individuals have nowhere to hide and those still on the run should think about handing themselves in before they are caught next.” This latest arrest brings the total number of those located to 48 out of 65 appeals since the campaign launched in October 2006. Operation Captura is the successful multi-agency campaign which identifies serious criminals believed to be on the run in Spain.

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Expats in Spain warned of faulty hip replacements

Therapist Carol Duquemin, 59, decided to act after being forced to have her hip replacement removed after just four months. Duquemin – whose ordeal came after the manufacturer recalled the faulty product in 2010 – has teamed up with free health care service Medilink to provide advice and support to expats. “Up to 9,000 people in Spain could have been affected by the implants,” Duquemin said. “People are still not aware of the problem and the danger it poses to their health. “The law says you have to have it removed in the country where you had the operation but some hospitals here are not giving the help and information that they should, and it is a big operation that causes a huge trauma to the body.

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Dutch activist arrested in Morocco

 

A young Dutch-Moroccan activist was arrested in Morocco on Monday. The Dutch Foreign Ministry has confirmed the detention of Yuba Zalen to Radio Netherlands Worldwide. Mr Zalen is a member of the 20th of February movement, a young protest group inspired by the Arab Spring and calling for greater democracy in Morocco. He was in Morocco to report on the unrest in the northern town of Ait Bouayach, where dozens have been injured in clashes with security forces. Moroccan media are barely reporting on the unrest. Activists say that local internet cafés have also been closed down. The website Amazightimes.com reports that Yuba Zalen is likely to appear in court in the town of Al-Hoceima on Thursday. The Dutch section of the 20th of February movement has called for his immediate release.

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Revolt in the city of Bni Bouayach in the mountainous area of the Northern Rif in Morocco

The city of Bni Bouayach in the mountainous area of the Northern Rif in Morocco has been sealed off since Wednesday, March 8. All the repressive organs of the state, the army, the gendarmerie together with the secret and public police, have joined forces to blockade the small city. The inhabitants live in fear of police terror and the raiding of houses and arrests. Other repressive forces are hunting down activists who fled into the neighbouring mountains to escape arrest. The media black-out is total. This violent intervention is the dictatorship’s response to peaceful demonstrations organised by the young unemployed and the activists of the 20F movement that have been ongoing for many months. The protest is against the generalised lack of jobs and bad social and economic conditions in this marginalised city of the Rif. The regime has used a variety of tactics against the protest movement, from “containment” to targeted repression of the leaders of the action. One activist, Kamal al-Hassani, was killed on October 27th last year, another, Bachir ben Shu'ayb, was abducted and put on trial. His imprisonment and the accusations against him have provoked new protests in the city. National highway Number 2 was blocked and a sit-in was organised in front of the municipal buildings and the National Electricity Company. On March 5 the youth wanted to organise a march (25 km) to the city of Al Hoceima in support of the arrested comrade but the police stopped them. Then on Thursday, March 8, the forces of repression attacked the demonstrators during a sit-in. The police used truncheons, teargas and water cannons to disperse the demonstrators. The masses of this city, known for their fighting traditions and activism, have defended themselves by throwing stones (see this report). Demonstrations have been organised in the main streets leading to clashes in different neighbourhoods. Many people have been injured in those clashes. Fearing arrest, most of them have avoided being treated in the hospitals. Dozens of demonstrators have also been detained. The attack of the repressive forces was ferocious. No-one was spared, not even the women and the children. In seeking out demonstrators, the police entered people’s homes and destroyed the contents or plundered them. They are even hunting down the young activists in the mountains all around the area. Friday the police arrested a group of activists, including Wael Faqih a leader of the unemployed youth association (Association Nationale des Diplômés Chômeurs au Maroc), and Mohammed Jalloul, a teacher in a primary school and also an activist of the 20F movement. This attack against the city of Bni Bouayach is taking place against a background of growing revolt in some cities (such as Taza and Khénifra) that are completely marginalised by the state. These protests are organised by the 20F movement. They reflect the absolute bankruptcy of the system and the lack of alternative. It also shows the real nature of the dictatorship which is not ready to reform itself out of existence.

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Moroccan appeal court confirmed a death sentence

A Moroccan appeal court confirmed a death sentence Friday against the mastermind of the April 2011 Marrakesh bombing that killed 17 people, and handed a death sentence to one of the others convicted. The chief judge of the court confirmed the death sentence against Adil Al-Atmani, the mastermind of the bombings, in which 17 people -- Moroccans, French and Swiss nationals -- were killed and dozens more wounded. And it converted the life term handed down to his chief accomplice Hakim Dah to a death sentence. But the death sentences are unlikely to be carried, with capital punishment in the process of being taken off the statutes. The court also increased the jail sentences against six of the other men convicted at the original trial in October from six to 10 years and confirmed a two-year sentence against a ninth man. The appeal trial went ahead after the prosecutors appealed the original sentences. The appeal court sentences were in some respects harsher than what the prosecution had asked for. The prosecutor on Wednesday had only asked for the life sentence against Dah to be confirmed. But he had wanted harsher sentences against the seven other people convicted. The defendants denied many of the charges against them during the trial. The Marrakesh bombing was the deadliest in the north African kingdom since attacks in the coastal city of Casablanca in 2003 which killed 33 people and 12 bombers. The defendants had denied the charges against them during the trial. One of the defendants' lawyers, Khalil Idrissi, criticised the "harsh" sentences, which he said were an "act of complacency" towards the families of the victims and their countries. Another defence lawyer said the "court increased the punishments of several defendants who had nothing to do with this crime". But relatives of the French victims welcomed the tougher sentences. "Now I can grieve," Jacques Maude, who was close to one victim, said. Capital punishment has not been carried out in Morocco since 1992 and is about to be formally wiped off the book, with a new constitution voted through in July explicitly affirming "the right to life". The Marrakesh bombing was the deadliest in the north African kingdom since attacks in the coastal city of Casablanca in 2003 which killed 33 people and 12 bombers.

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Protests Spread in Morocco's North Rif Mountains

Anti-government protests in Morocco's impoverished northern Rif mountains are spreading after a second village clashed with police resulting in serious injuries and 10 arrests, reported the state news agency. For the past 10 days, there have been demonstrations in the small village of Beni Bouayache following the arrest of a local activist. On Sunday they spread to the nearby town of Imzouren. The state news agency said a number of police were injured when they stopped a protest march at Imzouren headed for Beni Bouayache. The report said some injuries were grievous without further details. Chakib al-Khayari, an activist with the Rif Association for Human Rights, said 20 policemen had been injured in Sunday's clashes, but he didn't have figures for the locals wounded. "We don't know the number of wounded because they can't go to the hospital for fear of arrest," he told The Associated Press by telephone. Morocco's Rif mountains, which parallel the Mediterranean coast, are one of the poorest parts of the country and have been historically marginalized with little government investment. On March 2, plainclothes police snatched Bachir Benchaib, a leader of the local chapter of the February 20 pro-democracy movement, as he was leaving the mosque following evening prayers. The state news agency described Benchaib as a violent gang-member implicated in robberies and other criminal activities. In subsequent days, supporters demonstrated for Benchaib's release, blocking the road to the port city of Al Hoceima, 280 miles (450 kilometers) northeast of Rabat, and carrying out sit-ins in front of the police station and government buildings. Starting Wednesday, police began dispersing demonstrations with tear gas and water cannons and carrying out a campaign of arrests. Clashes with security forces generally now take place at night, said al-Khayari, who estimated that some 24 people had been arrested. He predicted that the protests, which have included demands for more electricity and water in their village, would continue. "They want their rights and a better life," al-Khayari. "They have nothing in this region." The Rif mountains were once an independent republic in the 1920s, until the region was reconquered by the French in 1926. After independence from France, the region revolted against the new Moroccan central government in 1958, before the rebellion was crushed. The people are primarily from the Berber ethnicity, North Africa's original inhabitants with their own language, and during demonstrations they waved flags from the Rif Republic as well as the flag of the North Africa-wide flag of the Berber movement.

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Abusing your embutido is prejudicial for your health

 

It has been revealed that those who eat more than 20 grams of chorizo or other embutidos a day could see symptoms and in severe cases suffer a chronic obstruction to the lungs, known as Epoc. It’s thought that the cause of the problem comes from the nitrates which are added as preservatives. The warning comes from CREAL, the Centre for Research in Environmental Epidemiology, who have published their study in the European Respiratory Journal. They say that more than 18,000 people die from Epoc each year.

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20-STRONG ‘dog squad’ is taking on disobedient dog owners in Marbella.

 

The pet owners are being targeted in a crack down on those breaking strict bylaws with 440 summonses being issued in just 30 days. The most common offence involved dogs not being kept on leads, while others included owners not clearing up after their animal and dogs not being muzzled. Fines ranged from 75 to 3,000 euros depending on the offence. The most serious breach of the law involved 24 summonses for owning potentially dangerous breeds that weren’t registered or did not have the necessary paperwork.

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German man arrested after Málaga lawyer's body found in the boot of his own car

It's now been established that robbery was the motive of the fatal attackThe lawyer's car where his body was found in the boot -The body of a lawyer, named as Salvador Andrés Reina, has been found in the boot of his car in Málaga. The lawyer had vanished in strange circumstances in Málaga last Friday and his body was found on Thursday, in the boot of his own car, parked by the bus station in the city. Police say the man’s body shows evident signs of having suffered violence, having been stabbed several times. A 50 year old German man, named with the initials P.R.B. has been arrested in connection with the case. He was arrested before the body was recovered on Thursday morning. Questioning has revealed that he had pretended to be a client, and killed the lawyer to rob him of 1,200 € which the lawyer was forced to take out of his bank. The lawyer’s family raised the alarm with the police on Friday morning last week after Salvador Andrés failed to return home as normal the previous night. They noticed that he had taken a large amount of money from the account, and this was very strange behaviour for a happy married man with two children. The German’s face was captured on a security camera, which has led to his arrest. The Málaga Lawyers College issued a statement which said that Salvador Andrés Reina ‘had been assassinated when meeting his obligations as a lawyer, attending to his office, when a unknown man turned out not to be a client, but a thief and a killer’. The College expressed its sympathies to the family, his companions and friends, and thanked the police for their ‘very intense’ work in solving the case and detaining the suspect.

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Spain's 2 big unions call for general strike March 29

Spain's two main unions on Friday called a general strike for March 29 to protest the new conservative government's labor reforms and austerity cuts. It will be the first general strike against the government of Prime Minister Mariano Rajoy, which won elections last November and took office late last December, in the midst of Spain's deep economic crisis. The last general strike, in September 2010, was against the then-Socialist government, which also had initiated austerity measures. That strike slowed industry and transport, but much of the country went to work and many analysts saw it as a kind of a draw between the government and unions. Since then, the economic crisis has deepened. Spain's jobless rate is nearly 23 percent overall, and nearly 50 percent for youth. Nearly 5.3 million Spaniards are out of work. Union protests across the nation last month drew large crowds, which analysts say emboldened the unions to move ahead with a general strike. The government says the latest labor reforms are needed to bring flexibility to the workplace and to simplify the rules for employers. But unions say the effect will be to make it easier and cheaper to fire workers. The two main unions -- the Socialist-leaning General Workers Union and the Communist-leaning Workers Commissions -- held separate meetings Friday and then announced the general strike for March 29, a date Spanish news media have been reporting for days as the likely date for the strike. Rajoy, at a recent European Union summit, was reported by Spanish media to be overheard, via an open microphone, telling another EU leader that the labor reforms would cost him a general strike. The reforms were approved first as a decree law, with immediate effect, and the unions called on the government to make amendments as the bill moved through parliament. But the conservatives have a commanding majority in parliament and on Thursday approved the reforms unchanged. The government says the labor reforms make up only a portion of the elements needed to spur an economic recovery. It predicts a 1.7 percent decline in the economy this year. The government also has demanded reforms in the banking sector with the aim of getting credit flowing again and to clean up the books of lenders stuck with huge uncollectable debts left over from Spain's real estate and construction boom that went bust, precipitating the economic crisis. The unions earlier called a round of protests for this Sunday, which coincides with the eighth anniversary of the Madrid train bombings terrorist attacks that killed 191 people.

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The shooting of three IRA members by the SAS in March 1988 is linked to a major review commissioned by the Prime Minister David Cameron

 

The shooting of three IRA members by the SAS in March 1988 is linked to a major review commissioned by the Prime Minister David Cameron, it has emerged. Sir Desmond de Silva , PC,QC, a member of the Gibraltar Bar, was asked by the Prime Minister to chair a Review into the assassination of a well-known Belfast lawyer - Patrick Finucane, in 1989. As this case has had attached to it allegations of state collusion in the murder Sir Desmond’s Review will involve an examination of the activities of the intelligence services, the police and the army in Northern Ireland at the time. In order to properly discharge the work of this Review, Her Majesty appointed him a member of Her Privy Council. A Gibraltar connection springs from the SAS shootings of IRA operatives on the Rock. Mairead Farrell, who was one of the IRA operatives who was shot dead in Gibraltar, was engaged to be married to Seamus Finucane the brother of Patrick, whose own killing allegedly by agents of the state, Sir Desmond is currently investigating. It is understood that once the Review is complete and his Report is presented to Parliament Sir Desmond will return to his busy practice in London and abroad. Although he has been involved with the prosecution of some very high profile cases he is, perhaps, best known as a hugely successful defence QC who has, in Gibraltar alone, defended in many contested cases before the Supreme Court. On the October 12 2011 the Secretary of State for Northern Ireland appointed Sir Desmond de Silva QC to carry out an independent review into state involvement in the murder of Pat Finucane in 1989. Sir Desmond de Silva is determined to expose the truth about this “appalling” murder. “I know from my work internationally over many years that it is only when the truth is fully exposed that communities can put the trauma of conflict behind them to secure a lasting peace. Naturally, I will be applying the key principles of independence, thoroughness and impartiality in carrying out my work. The Government may have set my remit but it is now for me to take the task forward independently. There have been suggestions that this Review is not capable of hearing from individuals who may have information that could assist me in my work. This is not the case; I will certainly wish to see such individuals.” Sir Desmond asked any who may be able to assist to come forward and contact the Review at any stage to provide information or make representations. BBC reported that when they met last October 2011, the family of Pat Finucane cut short a meeting with Mr Cameron after the Prime Minister failed to order an inquiry into the killing. His family have long campaigned for an independent public inquiry. Pat Finucane’s widow Geraldine told reporters she felt so angry she could hardly speak. Mr Finucane’s family said they were “insulted” at the proposal for a review of the case and said they would continue their campaign for an independent public inquiry and would not participate in the review. Sir Desmond has written to the family asking them to contribute to the review.

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Britain's biggest ever Ponzi scheme Kautilya Pruthi faces 14 years in jail

 

Kautilya Pruthi, 41, swindled investors out of £38m under a scheme that resulted in massive contractual losses. Among the 800 victims were former England cricketer and Strictly Come Dancing star Darren Gough and Unchained Melody singer Jerome Flynn, who are rumoured to have lost as much as £1m each. Pruthi blew £10m in three years renting luxury homes across the South East, buying Bentleys, Ferraris, Lamborghinis and Jaguars, while lavishing more than £370,000 on his lovers. He confessed to fleecing investors in January and John Anderson, 46, and Kenneth Peacock, 43, were convicted of carrying on an unauthorised regulated activity earlier this week. Anderson and Peacock were cleared of a charge of recklessly making misleading false or deceptive promises.

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Earth braces for biggest space storm in five years

A pair of scorching explosions on the Sun's surface is sparking the biggest radiation and geomagnetic storm the Earth has experienced in five years, space weather experts said Wednesday. The storm, expected to hit Earth early Thursday US time and last through Friday, may disrupt power grids, GPS systems and satellites, and has already forced some airlines to change their routes around the polar regions. In addition to possibly garbling some of Earthlings' most prized gadgets, the event will likely give nighttime viewers in parts of Central Asia a prime look at the aurora borealis, or northern lights, on Thursday night. "Space weather has gotten very interesting over the past 24 hours," said Joseph Kunches, a space weather scientist with the National Oceanic and Atmospheric Administration (NOAA). The fuss began late Sunday at an active region on the Sun known as 1429, with a big solar flare that was associated with a burst of solar wind and plasma known as a coronal mass ejection that hurtled in Earth's direction at some four million miles per hour (6.4 million kilometers per hour).

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Man Held After Headless Torso, Feared To Be EastEnders Actress Gemma McCluskie Is Found In Canal

The brother of former EastEnders actress Gemma McCluskie has been arrested after a headless torso believed to be missing 29-year-old was dragged from a canal in east London, Sky News understands. Tony McCluskie remains in custody at an east London police station, sources say. Police have not yet confirmed the identity of the suspect The limbless body was discovered near to the Broadway Market stretch of Regent's Canal in Hackney at 2.40pm yesterday. "Police were initially contacted by a member of the public who had noticed something suspicious floating in the water," the Met Police said in a statement. "The torso was recovered by divers from the Met's Marine Support Unit and additional searches are due to be carried out in the water." Relatives and co-stars of 29-year-old Miss McCluskie were said by sources to be "fearing the worst", as Scotland Yard carried out forensic tests on the remains. Miss McCluskie starred in the soap as Kerry Skinner on more than 30 occasions in 2001. Her character arrived in Walford as a friend of Zoe Slater and the great niece of the late Ethel Skinner. She briefly dated Robbie Jackson and got him to propose to her. Brooke Kinsella turned to Twitter to appeal for help in finding Miss McCluskie Miss McCluskie disappeared from Bethnal Green, east London, last week. Friends had been carrying out searches in the area and handing out leaflets. Co-stars Brooke Kinsella and Natalie Cassidy both appealed for help finding her on Twitter. Kinsella, who has become a prominent anti-knife crime campaigner since her brother Ben was murdered in 2008, had tweeted: "Gemma McCluskie has been MISSING from Bethnal Green since Thursday please get in touch if you have seen her." Cassidy, who played Sonia in the soap, also posted on the website: "Gemma McCluskie, missing since Thurs, if u have sn her/have any info PLS contact @CarlyKarma ... #FindGemma." Officers believe they know the identity of the victim but are awaiting further forensic tests before formal identification can take place. The man being questioned by police is understood to be known to Miss McCluskie. He remains in custody at an east London police station. Detective Inspector John Nicholson, who is leading the murder inquiry, has appealed for witnesses.

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Allen Stanford faces decades behind bars after being convicted of a $7 billion fraud that snared investors in 113 countries

 

A MONTH after Sir Fred Goodwin was stripped of his title for leaving Royal Bank of Scotland shredded, another erstwhile knight of the financial-services realm has been put in his place—this time a jail cell. Allen Stanford faces decades behind bars after being convicted of a $7 billion fraud that snared investors in 113 countries, from Latin America to Libya. When in 2008 the sky fell in on Bernard Madoff, the only fraudster to have taken investors for more, the Texas-born Mr Stanford was still swaggering. He had done so much for Antigua, the Caribbean island where he based his empire, that it made him a Sir. He took to the airwaves to tut-tut rivals who had been felled by subprime mortgages. His star rose further when he sponsored an international cricket tournament. He was said to be worth over $2 billion. He certainly lived like he was. Within a few months, however, the authorities had swooped in, closing his Antigua-based bank and his brokerage operations. Prosecutors accused him of flogging bogus certificates of deposit and raiding the bank, siphoning deposits to a Swiss account used to finance his passion for yachts, jets and islands. His lawyers tried to have him declared incompetent to stand trial, saying a prison beating had led to loss of memory and an addiction to anti-anxiety drugs. When that ruse failed, they argued in court that he had been his group’s visionary, uninvolved in its day-to-day running, even as they claimed the businesses had been viable until they were “disembowelled” upon being seized. Countering this narrative was damning evidence from the prosecution’s star witness, Mr Stanford’s former chief financial officer, who testified that he and his boss had falsified documents and that the firm had presented hypothetical returns as the real thing in client pitches. Others said that, for all his public bravado, he had been aware of a hole in the accounts. When another colleague suggested he raise more money to plug this, he reportedly said: “I’ll go to the Libyans. They love me.” Victims cheered the verdict, but their victory is hollow. Three years on, they are yet to receive a penny from the court-appointed receiver, Ralph Janvey. Of the $216m he had recovered by late last year, more than half had been eaten up by legal and other fees. His team reckons that total recoverable assets may be a mere $500m, or 7% of the account balances shown at the time of Mr Stanford’s arrest (though that could increase if lawsuits seeking $600m from Stanford brokers, customers who extracted more than they paid in and political organisations that received donations from Mr Stanford succeed). Investors also bemoan the hefty cost of litigating jurisdictional issues. Mr Janvey is locked in a fight over how to divide up the estate with a separate receiver in Antigua, who has control over the fraudster’s bank accounts in Switzerland and Britain. America’s Securities and Exchange Commission has backed the victims’ cause, taking the unprecedented step of suing the Securities Investor Protection Corporation after the congressionally-chartered group balked at paying them up to $500,000 each in compensation (on the ground that Stanford’s operations were based offshore). Too little, too late, scream the SEC’s critics. Its district office in Fort Worth, Texas, first concluded that the Caribbean kingpin’s businesses were a Ponzi scheme in 1997, only to be ignored then and several times subsequently by enforcement staff. This story has only one true villain, but many others come out looking bad.

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Two UK Murdoch journalists in apparent suicide bids

Two senior journalists working for Ruper t Murdoch's News International have apparently attempted suicide as pressure mounts at the scandal-hit publisher of the now-defunct News of the World. Three sources close to the company told Reuters on Tuesday the two journalists at the Sun daily appeared to have tried to take their own lives. Investigations sparked by a phone-hacking scandal continue to expose dubious practices by present and past employees. Eleven current and former staff of the Sun, Britain's best-selling daily tabloid, have been arrested this year on suspicion of bribing police or civil servants for tip-offs. Their arrests have come as a result of information provided to the police by the Management and Standards Committee (MSC), a body set up by parent company News Corp to facilitate police investigations and liaise with the courts. The work of the MSC, which was set up to be independent of the conglomerate's British newspaper arm News International, has caused bitterness among staff, many of whom feel betrayed by an employer they have loyally served. 'People think that they've been thrown under a bus,' one News International employee told Reuters. 'They're beyond angry - there's an utter sense of betrayal, not just with the organisation but with a general lynch-mob hysteria.' News International is facing multiple criminal investigations and civil court cases as well as a public inquiry into press standards after long-simmering criticism of its practices came to a head last July. Politicians once close to Murdoch, including Prime Minister David Cameron, turned their backs on him and demanded answers after the Guardian newspaper revealed the News of the World had hacked the phone of murdered schoolgirl Milly Dowler. Police officer Sue Akers, who is heading three criminal inquiries into News International, said last week there appeared to have been 'a culture of illegal payments' at the Sun. Staff at the tabloid have been under additional pressure for the past two weeks because they have also had to produce a Sunday paper, hastily announced by Murdoch to replace the News of the World. News International has increased the level of psychiatric help available to employees to help them cope.

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How Wall Street Bankers Use Seamless To Feast On Free Lobster, Steak, And Beer

A former Morgan Stanley banker recently described his weekend food-ordering ritual at the height of the recession. While pulling Saturday hours, for example, he'd log onto the bank's account on Seamless, the online food-ordering service, and redeem his meal allowance--plus a few allowances from phantom coworkers who weren't actually in the office, allowing him to eat well above his pay grade. Sure, someone could have cross-checked actual office attendence with the online orders, but is such effort worth the investment bank's time? "If people weren't around, it was totally acceptable to take their allowance, and pool it together when you ordered," the banker recalls. "Almost every weekend I was at the office, I'd have a $90 dinner of steak, lobster, mac & cheese, and calamari." Until several years ago, corporate giants like Morgan Stanley made up roughly 85% of Seamless's customer base. That figure has now tipped in favor of individual consumers, but enterprise clients still represent a significant (and growing) part of the New York-based company's revenue--companies offer Seamless as a benefit to those who typically work long or late hours. But for employees of these roughly 3,500 corporate Seamless customers, the benefit represents a huge opportunity to game the system. And no one has worked the system for financial gain better than Wall Street hustlers. "Abuse of the system was rampant," recalls another former Morgan Stanley staffer. "I added up how much I ordered in my first year: It was more than $3,000 of food." Here's how it works. Typically, junior professionals are allotted about $25 per meal at the office. But there are tricks to leverage this cash on Seamless. If employees want to order dinner, for example, they have to stay until 8 p.m. "But you could still order for a 7 p.m. delivery at 6 p.m., then call the restaurant directly and tell them to bring it right away," one employee says. "So I'd finish work around 6:30 p.m., hit the company gym, and then grab my sushi--spicy tuna rolls--on the way out." A Seamless Scam How Gordon Gekko Orders On Seamless 1// Top Seamless Fiend According to Seamless' statistics, the highest ordering corporate user placed more than 2,600 orders in 2011, or more than 7 meals per day. 2// Top Cuisine By Industry Employees Investment Bankers: Sushi; Educators: Pizza 3// Top Ordering Patterns Corporate dinner-orders in New York's Financial District peak at 8 p.m. In Midtown, corporate orders peak at 7 p.m. Corporate dinner-orders are higher, on average, from 4-5 p.m. and lower between 8 p.m. and 9 p.m. Ordering groceries on Seamless was--and likely still is--another practice. (Representatives at Goldman Sachs and Morgan Stanley have not responded to requests for comment.) One employee, who lived by Morgan Stanley's Midtown offices, would even remote into her office computer from her apartment, place an order on Seamless, and then call the restaurant and change the delivery address to her apartment. The lobster-loving Morgan Stanley banker's take on that old switcheroo? "Classic." Another trick: Since employees aren't allowed to order beer or alcohol on the system, it's not uncommon to pool money together, place a large order for random items, then call the store and request that they bring beer instead. "We definitely get a lot of random orders," says Seamless CEO Jonathan Zabusky. "Once in a while, I'll sit on the customer-care desk, just to get a feel on the pulse of what's going on. You see these orders come through, and you're like, 'Why are 20 rolls of toilet paper going to 200 Vesey Street [the World Financial Center]? What the hell?'" One former employee at Morgan Stanley said he wasn't sure how pervasive the "switch-for-beer order" was at the investment bank, but said he personally pulled the move several times. "Wow, I feel so lame now because when I'd order from Seamless, I'd just get dinner," says one former Goldman Sachs employee. "I never heard of anyone else pulling a fast one [like that], but that doesn't mean it never happened." The daily Seamless stipend is considered sacred for employees, and any abuse of the system appears generally overlooked by higher-ups. When Lehman Brothers went under, for instance, Morgan Stanley lowered the Seamless limit from $30 to $25, much to the anger of workers. "People went nuts," recalls a former employee. "Every so often there were these fireside chats with [Morgan Stanley CEO] John Mack 'Da Knife' and a collection of analysts. One of the women on the call asked Mack to raise the limit to $30 again. Mack, not really having paid much attention to expenses, was surprised to hear it had been reduced. Concerned, he asked her why she needed $30 instead of just $25. She said that with the new reduction, 'I can't order my Perrier anymore.'" The next day, as legend has it, there was an entire case of Perrier on her desk--courtesy of John Mack. "What a baller," an employee says. Zabusky is sure abuse exists on Seamless, but says it's not likely that widespread. "I think it's pretty funny," the Seamless chief chuckles. "I mean, I know it probably frustrates a CFO at Goldman, who is giving these guys $25 to order while they work on deals, and they're ordering toilet paper and jars of mayonnaise and all this other stuff. But in the overall scope, it's probably pretty small." Small as the abuses might be in terms of Seamless's bottom line, there's no doubt it has a big impact on the morale of employees, who seem to take pride in manipulating money one way or another. According to Seamless's statistics, for example, the highest ordering corporate user placed more than 2,600 orders in 2011. "There's nothing grosser or more magnificent than eating $25 of delivered Taco Bell under the fluorescent, sober lights of an office building," says one employee. "Do you have any idea how much baja sauce you can get for that money?"

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San Diego tax preparer for the wealthy accused of ordering hit on 2 witnesses in fraud trail

 former Internal Revenue Service agent whose tax preparation business catered to a wealthy clientele is accused of ordering at least two former customers killed as they prepared to testify against him on fraud charges. Federal prosecutors say the targets were key witnesses against Steven Martinez, 50, who was charged last year with stealing $11 million by preparing bogus tax returns for his customers. 0 Comments Weigh InCorrections? Personal Post Martinez’s limousine driver — Norman Russell Thellmann, 64 — was charged Monday with conspiracy to tamper with witnesses. Prosecutors allege he was ordered to deliver money to a hit man who was promised $100,000 for the two killings. Martinez did not enter a plea during his initial court appearance Monday on a charge of witness tampering. A federal magistrate judge ordered him held without bail. “I find it almost impossible to believe,” said David Demergian, his attorney. Martinez, an IRS agent from 1988 to 1992, faces a pretrial hearing March 19 on federal fraud charges and was free on bail until his arrest last week. An FBI agent’s affidavit says Martinez gave a former employee documents on four people about two weeks ago, including photos of one target from the wealthy suburb of Rancho Santa Fe and another target’s condominium in the upscale La Jolla area of San Diego. Martinez recommended the former employee use two different pistols for the killings and get a silencer, according to the affidavit. The former employee contacted the FBI, which recorded a meeting Thursday in which Martinez allegedly gave additional instructions like how to break into the La Jolla condominium. The targets were identified as 86-year-old Monique Siegel of La Jolla and Marianne Harmon of Rancho Santa Fe. The fraud complaint alleges that Martinez told customers to deposit their taxes into one of his bank accounts, promising to forward the money to state and federal authorities. He stated lower income on their tax returns without telling them, allowing him to pocket $11 million. The complaint identifies victims only by their initials. One “M.H.” had an income of $20.7 million in 2006 but Martinez filed a tax return for $2.1 million. One “M.S.” earned $200,046 in 2006 but Martinez’s return reported $32,900. Another customer who earned $12.2 million in 2005 reported income at $1.6 million, according to the complaint. The same customer earned $11 million in 2006, also reported as $1.6 million. Demergian, his attorney, said the fraud case was “certainly very defensible.” “He had a very dedicated loyal clientele,” Demergian said. “He was very successful.” Thellmann, who was arrested Friday night, told the FBI that Martinez sold him a limousine about three years ago and hired him as a chauffeur. He said Martinez told him to give $40,000 to a person who would call him with code. Thellmann denied he knew the money was to pay a hitman. FBI agents found $42,400 cash in a cereal box at his home.

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Ponzi fraud: two men found guilty of involvement in £115m UK scam

Two men have been convicted of involvement in the UK's largest Ponzi fraud, which saw hundreds of people – among them the former cricketer Darren Gough and the actor Frances de la Tour – lose £115m. John Anderson, 46, and Kenneth Peacock, 43 were found guilty of unauthorised regulated activity at Southwark crown court in London on Monday, but were cleared of one count each of fraud. The jury is still deliberating over allegations that they deceived investors. The scheme's mastermind, Kautilya Pruthi, 41, of Wandsworth, London, has pleaded guilty to the fraud and is due to be sentenced later this week. Ponzi frauds – which take their name from the Italian conman Charles Ponzi, who was particularly fond of employing the scheme – use cash from new investors to pay returns to existing investors and depend on a constant stream of new investors to fund the payouts. The court heard that Gough and the actor and singer Jerome Flynn are each thought to have lost up to £1m in the fraud, which also duped De la Tour. Victims handed over their cash to Pruthi, who promised them safe investments with returns of up to 13%. Instead, he spent their money on entertaining women, paying his daughter's private school fees and chartering helicopters. He also bought a private jet and built a car collection that included three Bentleys, a Lamborghini, two Ferraris, two Mercedes, a Rolls Royce, a Jaguar and a Maserati. "Mr Pruthi is believed to be the UKs most successful Ponzi fraudster," said David Aaronberg QC, prosecuting. "He obtained some £38m from investors and caused contractual losses of over £115m." Aaronberg added: "He enjoyed the company of women and was generous in the payments he made to a number of female friends, for whom he bought cars as presents, in total giving them £373,149." Indian-born Pruthi came to the UK in 2004 having been deported to his homeland after serving a sentence for faking documents in the US. Jurors heard that on coming to the country, Pruthi was quickly able to pose as "a wealthy individual". After setting up his company, Business Consulting International, said Aaronberg, Pruthi accepted deposits and "orchestrated a large-scale and sophisticated collective investment scheme". He would send personally tailored emails claiming he could offer up to 13% returns on 12-month investments because the scheme was available to a limited clientele. But in reality, said the prosecutor, he was "robbing Peter to pay Paul". Pruthi, who was not registered with or authorised by the FSA, admitted four counts of obtaining money transfers by deception, one of participating in a fraudulent business, one of unauthorised regulated activity and one count of converting and removing criminal property. Peacock, of West Hampstead, north London, and Anderson, of Surrey, are alleged to have acted as "aggregators" who pooled funds from third parties and then passed them on to Pruthi, who had duped them into the fraud at the outset. Eventually the scheme collapsed as there were not enough new investors to bring in the money needed to keep the old investors happy. "The scale of this scheme was vast and the losses were immense; several investors lost their homes, others have been declared bankrupt," said Aaronberg. "The monies which Pruthi received were generally not invested anywhere, neither in the UK nor abroad." According to the prosecution, of the £38,631,792 Pruthi obtained, £28m was used to pay back other investors, while £10m was siphoned off for Pruthi's "lavish lifestyle".

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Michael Jackson's entire back catalogue, including previously unreleased material from his sessions for 'Bad', 'Off The Wall' and 'Thriller', has apparently been stolen by computer hackers.

 

Michael Jackson's entire back catalogue, including previously unreleased material from his sessions for 'Bad', 'Off The Wall' and 'Thriller', has apparently been stolen by computer hackers. Sony Music paid the late singer's estate over $250 million (£158 million) for the back catalogue in 2010 and released the first swathe of tracks from it at the end of that year with the posthumous album 'Michael'. According to The Sunday Times, the tracks stolen include duets with Black Eyed Peas mainman will.i.am and Queen's late frontman Freddie Mercury. A source told the paper: "Everything Sony purchased from the Michael Jackson estate was compromised. It caused them to check their systems and they found the breach. There was a degree of sophistication. Sony identified the weakness and plugged the gap." Sony themselves have not commented on the leak or confirmed exact details of what was taken. Jackson died at the age of 50 from an overdose of the anaesthetic propofol. Last November, his physician Dr Conrad Murray was convicted of his involuntary manslaughter and sentenced to four years in prison. However, last month (February 23) it was reported that Murray was appealing his sentence and was claiming that Jackson was so concerned about his finances that he recklessly self-administered a fatal dose of the drug Propofol.

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Australian facing drug death penalty in Malaysia

 

AN AUSTRALIAN man is facing the death penalty after being arrested in Malaysia for allegedly trying to sell methamphetamine. Malaysian police have confirmed a West Australian man ''tentatively charged'' with trying to sell 225g of methamphetamine could be executed. Malaysian Police Narcotics Supt Nafisah Adam said today that a former Perth man, 32, was being held in custody, along with three local men. They were all arrested on Thursday over a string of alleged drug offences. Supt Nafisah said the Australian man had been caught with a large quantity of methamphetamine ''in his hands'' at a coffee shop in the Malaysian capital of Kuala Lumpur. He added that a search of his nearby house had uncovered a ''smaller volume'' of drugs and led to the arrests of three local men. Under Malaysian law, a person convicted of possessing more than 50g of methamphetamine is declared a drug trafficker and faces a mandatory death sentence. Supt Nafisah said the arrests were part of an ongoing anti-drugs operation, and that the men had been under surveillance for some time before their arrests. ''It's part of a team of investigation that was carried out,'' she said. While the Australian and the other men had been ''tentatively charged'', official charges could follow chemical analysis of the seized substances. ''He is being held and tentatively we will charge him, but it depends on the contents of the substance on him,'' Supt Nafisah said. ''But I can say (if the drugs are confirmed), definitely he will be charged.'' Supt Nafisah said under Malaysian law, the men could be held in custody for up to 14 days without charge while police continued to investigate them. They are expected to initially appear in a magistrates court in Kuala Lumpur, but could be transferred to a higher court if serious charges are laid. ''If it's confirmed drugs, his case will be transferred to a higher court,'' Supt Nafisah said. ''Yes, they could face the death penalty if convicted.'' Australia's Department of Foreign Affairs and Trade confirmed today that the Australian man had been arrested on March 1. ''Malaysian authorities arrested a 32-year-old Australian man from Western Australia for allegedly selling methamphetamines,'' a DFAT spokesperson said in Canberra. ''Consular officials in Kuala Lumpur are seeking access in order to offer consular assistance to the man. ''It is possible that he will be charged with Trafficking in Dangerous Drugs, Section 39B of the Dangerous Drugs Act 1952, which carries a mandatory death penalty upon conviction.'' The Australian's father was reported to have said he was unaware of his son's arrest and had not been able to contact him recently. It is believed that until six months ago, he had lived with his father in the southern Perth suburb of Success, but had then moved into an apartment in the central suburb of Mt Lawley. Malaysian police federal narcotics director Noor Rashid Ibrahim was reported as saying the Australian man intended to smuggle drugs back to Australia. Supt Nafisah said she was not aware if the man's father planned to travel to Malaysia to see his son. Malaysia has executed three Australians for drug offences in recent decades. Kevin Barlow and Brian Chambers were hanged in July 1986, followed by Michael McAuliffe in June 1993. Asked about the case today, Acting Foreign Minister Craig Emerson declined to go into details. ''We will provide, as we always do, every consular assistance to every Australian citizen but beyond that, it would be wrong for me to speculate about the nature and causes of the apprehension of this man,'' Dr Emerson told reporters in Canberra. ''Let the justice system take its course.''

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Spanish tax authorities are cracking down on tax offenders

Hacienda has announced it will be keeping a close eye on fiscal engineering from e-commerce firms trading on the Internet. The Agencia Tributaría will also be keeping a close watch on sportsmen and women and artists. A new anti-fraud plan also includes alerts for contraband tobacco and the Secretary of State for Hacienda, Miguel Ferra, says they expect to recover 8.171 billion more from the measures. Hacienda has been told it cannot take on staff but it can substitute one in ten of the retirees. The number of inspections on elite sportsmen will go up by 14%, there will be greater control on house rental and undeclared businesses, using evidence of electrical consumption. Hacienda is also looking more closely at people who declare themselves insolvent when they are not, when they hide their assets. The use of preventative embargoes is to be extended, and offenders who fail to pay their debts to the fiscal face prison. Hacienda has established also new agreements with fiscal authorities in Switzerland, Andorra, Pánama, Bahamas and the Dutch Antilles.

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Makers say 'sorry' as excessive vitamin D found after dog food recalled from 190 Mercadona stores

 

A Brand of dog food in cartons sold by Mercadona has been blamed for causing kidney failure in pets. The supermarket chain – the largest in Spain – has now withdrawn carton-packaged Compy wet dog food from its shelves in 190 stores in Albacete, Almeria, Alicante and Murcia provinces. This action followed a flood of concerns from dog owners – including scores of expatriates – after their pets had been taken ill, with some vomiting violently. On Tuesday, four days after Mercadona had withdrawn the food from sale as a safety precaution, a statement from Tunilament pet division, which is part of Escuris, the company that manufactures Compy, confirmed tests on the pet food had confirmed excessive Vitamin D. They admitted that this Vitamin D increment could cause urine problems to pets, although only through high doses or persistent use of the product, according to the manufacturer’s veterinarian reports. Earlier, vets and many expatriates had identified Compy wet dog food in aluminium-lined cartons and sold by Mercadona as the common link between dozens – and possibly hundreds – of complaints by dog owners over sick pets. There were even reports by expatriates living in the Costa del Sol, but a Mercadona official gave assurances that the Compy product packaged in these cartons was not sold by them in Malaga Province. British-born Audrey Millar of Benitachell (Alicante) said her three dogs (Shih Tzu, aged 7 yrs, 4.5 yrs and 20 months - Teddy, Shakira and Latika respectively) had always eaten “the Mercadona dog food in the big tins priced at €1.25 a can.” “When the packaging was changed to cartons (indivisible packs of 3) they were less than enthusiastic about the food but did eat a bit - I mix it with Burns Mini Bites dried food for them.” “Within a couple of days they started to vomit violently (thank God for tiles!) and refused to eat the food.  I took them to the vet and she thought initially that they may have ingested pesticide as she had had a couple of other local dogs in with the same symptoms.” “She ran renal function tests on two of them and their urea and creatinine levels were raised.  “ “She did not consider it worth running the blood tests on the third one (Latika) as she had the exact same symptoms I then started cooking chicken/turkey/ brown rice/vegetables for them until their stomachs settled but I will continue to cook for them now.  All have lost a little weight but are almost completely back to normal although Latika was sick last night - they are on Uro Can tablets to protect their stomachs.” “Thanks for bringing this into the public domain - I am glad Mercadona seem to be taking it as seriously as they should be and let's hope they are willing to reimburse customers for vet's fees incurred - I know it has cost some people 100s of Euros and, worse still, some people have lost their beloved pets due to this fiasco. “And there is the cost of all the cleaning products I bought from them to clear up piles (and it was) of dog vomit for a couple of weeks!” “I feel quite guilty to be honest, as I know other pet owners do - like I have been poisoning them really. “ Meanwhile, Veronica Catala of Clinica Veterinaria Benitachell said she had seen 10 to 15 cases of dogs with kidney problems in the last two months, and the majority of dog owners – including Ms Millar - had fed pets with the Comfy dog food in cartons. Inka Labsch of Clinica Veterinaria Europa in Mojacar (Almeria) confirmed that in the last month there had been a huge rise in the number of dog owners bringing in pets suffering from kidney problems. “In the past month there have been nearly 10, and quite a few otherwise young and healthy animals.” Tests to see if the kidney problems was caused by Leishmaniasis came back negative, a vet told EWN. “At one point we thought it might have been caused by pesticide used to combat the Red Weevil Beetle plague we have here,” said Inka. “But then I heard that other vets in other towns were experiencing similar unusual numbers of young dogs with kidney problems, so I do not think it is that. Many of the dog’s owners say they feed their pets with Mercadona’s Compy brand wet dog food,” said Inka. Various pet owners’ who feed their dogs this pet food confirmed this. One of Inka’s patients is ‘Goldie, who is on a drip for five hours a day after tests showed she had kidney problems. Ken Grey’s five-year-old white German Shepherd ‘Gemma’ started to develop symptoms, which include excessive thirst. His partner Georgette Hurcomb took Gemma to the vet in Garrucha who confirmed the kidney problem. “I personally know of at least six dogs who all eat the same brand of dog food who have this problem, although I understand there are at least 20 dogs who may be affected, one of which died,” said Georgette who lives in Palomares. “We drink the same water as the dogs and they only eat this brand of dog food.” “I made a complaint to Mercadona and a representative contacted us very concerned and said they would take the dog food off the shelves and would conducting tests.” Jamie Moore’s dog Tyson was diagnosed with ‘bad kidneys’ by the vet in Turre. “I did not think it could have been the food from Mercadona as my dog has eaten this brand of food for many years,” said Jamie. “But since its packaging changed, he has had a reaction.” Albox resident, Heather Whythe’s dog ‘Scruffy’ fell ill after a week of eating the ‘trozos in salsa’. “Since switching to another dog food, she is now back to her normal self,” said Heather. Chris Reade realised something was wrong when his dog began drinking excessively, suffered from urinary incontinence and went from 20 kilos to 16 kilos. “No definite diagnosis was found, although liver and kidney function results were abnormal. I immediately took the dog off the meat and with complete rest and a diet of chicken and rice she is thankfully on the road to recovery.”

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Spain’s Deficit Tests Europe’s Financial Rules

 

ONLY months after they tightened the rules for the euro, Europeans are again confronting a question posed a decade ago: Is their rule book in fact a little stupid? In 2002, Romano Prodi, then the president of the European Commission, provoked widespread criticism by using the word “stupid” to describe the Stability and Growth Pact, a set of rules intended to maintain the stability of the euro zone by imposing fiscal discipline on member states. Now Spain is pressing for leniency, using more polite language but a similar argument. Deep in recession, Spain is not close to hitting European Union target dates for cutting its budget deficit to acceptable levels. And that, according to the logic of the new rules, ought to begin a process leading to the imposition of fines against Spain’s government. Euro zone finance ministers are set to discuss Spain’s economic situation Thursday in Brussels. It may come up again when European heads of government take part in a two-day meeting to discuss policies intended to increase economic growth. The new center-right Spanish government led by Prime Minister Mariano Rajoy faces a severe economic squeeze. To hit the European Union’s deficit target it would need to impose another austerity package that, according to estimates, would be more than double the 15 billion euros, or $20 billion, of tax increases and spending cuts already agreed to this year. And Spain is entering its second recession since the sovereign debt crisis began and is struggling with an unemployment rate of nearly 23 percent. But the European authorities face a dilemma, too. The Spanish case illustrates a design flaw in the euro rule book — fining a nation in financial trouble can only make matters worse. Even insisting on more austerity could drive Spain over the edge. Inaction, however, could threaten the credibility of the revised rule book when financial markets remain nervous. While the European Commission, the executive body of the 27-nation European Union, has issued tough warnings to some smaller nations, including Hungary — which is outside the euro zone and subject to different sanctions — Spain is the first large country to run afoul of the strengthened rules. The issue is particularly delicate because when France and Germany violated the original pact in 2003 by running up excessive deficits, the agreement was softened. And some policy makers have said that is one reason euro nations did not weather the financial crisis better. Last year the pact was strengthened to make sanctions more difficult to avoid and to make overall debt levels a bigger factor in determining whether penalties should be applied. Jean Pisani-Ferry, director of Bruegel, an economic research institute in Brussels, said Spain posed a substantial test for the new rules. “It is big because it is a bigger country and this is a tough case: how to reconcile fiscal discipline and economic realism,” he said. “Spain is facing a true recession,” he added, with estimates that its economy will continue to contract. “The commission is forecasting minus 1 percent, the Bank of Spain minus 1.5 percent, and there is no shortage of people forecasting even less. I think they should be careful at a time when they are embarking on a large number of reforms.” But Mr. Pisani-Ferry added that the European Commission had latitude in determining whether a country had violated the new rules. The commission will recommend how to proceed, and, if it has determined that Spain has tried its best to meet the target dates but has been blown off course by events outside its control, the European Commission can propose new target dates. Under the Stability and Growth Pact, European nations are supposed to keep their budget deficits below 3 percent of gross domestic product and their debt levels below 60 percent of G.D.P. Spain’s target was a deficit of 6 percent of G.D.P. in 2011, 4.4 percent in 2012 and 3 percent in 2013. On Monday, though, the Spanish government said it ended 2011 with a deficit of 8.5 percent of G.D.P. Speaking in Brussels on Wednesday, the president of the European Commission, José Manuel Barroso, said he was awaiting more information from Madrid, and the new Spanish budget, due to be presented in March. “The reality regarding Spain is that we do not yet have a full picture of Spain’s fiscal slippage last year and the reasons for that slippage,” Mr. Barroso said. “Only then, when we receive the concrete information, we’ll be able to take a position.” He expressed confidence that the new budget “will be fully in line with the Stability and Growth Pact rules.” The national government in Madrid has blamed Spain’s regional governments, estimating that they accounted for about two-thirds of the slippage last year. The regions ended 2011 with an average deficit equivalent to 2.94 percent of G.D.P., compared with a target of 1.3 percent. Spain is one of at least 23 European Union nations in violation of the bloc’s rules, subject to what is known as “excessive deficit procedure,” with closer monitoring and clear targets. But it was already given the benefit of the doubt in December 2009, when it was allowed an extra year to reach the 3 percent deficit level. All of which makes for a difficult decision for the commission, which must walk a tightrope between squeezing Spain’s economy too much and undermining the new rules. Mr. Pisani-Ferry said he believed that it should worry more about the first of those factors than the second. “Credibility rests also on the fact that what you do is economically sensible,” he said.

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Duchess of Cambridge arrives at Fortnum and Mason wearing a Missoni coat.

The Queen, the Duchess of Cambridge and the Duchess of Cornwall seemed to have colour-coordinated their outfits today for a visit to London's boutique department store, Fortnum & Mason.The royals were all dressed in shades of blue when they arrived at the famous Piccadilly store to meet military personnel and tour the restaurant which has been renamed 'The Diamond Jubilee Tea Station' to mark the Queen's 60 years on the throne.

The Queen wore a pale blue outfit with a matching hat; Camilla was dressed in a navy blue coat with eye-catching white horizontal stripes at the top, while Kate, the newest addition to the Royal Family, wore a blue wool above-the-knee coat.

So far, so safe. But in fact, Kate's outfit broke from tradition in one subtle way. The Duchess, who almost exclusively wears British-based labels chose a coat by M Missoni, the second line of Italian fashion house Missoni. The powder blue coat bore all the hallmarks of the luxury brand famous for its elaborate knitwear, and palace sources have confirmed its origins.

But fear not British Fashion Council - ever the diplomat, Kate topped off her outfit with shoes by British designer Rupert Sanderson. To be fair, if one is going to stand around all day with one's step mother-in-law, grandmother-in-law and Boris Johnson chatting to military personnel, one should at least be able to indulge in a bit of luxury Italian fashion for the occasion.

The Queen, The Duchess of Cornwall and The Duchess of Cambridge arrive at Fortnum & Mason. PHOTO:AP

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Spain braces for further cuts amid national uproar

Spain, whose economy – the fourth largest in the eurozone – is staggering under a burden of debt, is preparing for further austerity measures after its finance minister revealed that the 2011 budget deficit was substantially higher than expected. The deficit came to 8.51% of GDP – far higher than the European Commission’s own forecast of 6.5%. Brussels will now effectively dictate the 2012 budget ceiling which Spain will announce on Friday. The country will have to come up with more than 40 billion euros in savings to meet that target. However, most economists say the planned cuts are impossible as the economy is already slipping into recession. Spain has been in the eye of the European debt crisis storm ever since its Socialist government racked up one of the bloc's largest budget deficits. The Socialists were trounced for mishandling the crisis.  As a result, a new conservative government began a four-year term in December. It faced a wave of massive protests when it swiftly introduced tax hikes and spending cuts to the tune of around 15 billion euros. More anger followed when the new prime minister, Mariano Rajoy, introduced a labor decree making it easier for employers to fire workers. His reforms are said to be part of a program aimed at creating jobs: the country has the developed world's highest unemployment rate, at 23%. But the new legislation sparked an outbreak of discontent with hundreds of thousands taking to the streets of Madrid and other major cities.  The unemployment rate for Spaniards aged between 16 and 24 stands at 48.6%, and 39% for those between 20 and 29, according to this month’s government report. There are no official statistics but estimates suggests thousands are emigrating monthly and the country last year saw more people leave Spain than arrive in the country for the first time in a decade. One of the main sources of discontent is bad real-estate debts left over after Spain's housing bubble burst. The debt crisis led to a crash in Spanish real estate with thousands of new houses standing empty, resulting in a rash of so-called ghost-towns country-wide. Spaniards now accuse the government of enormous waste which left them without houses, work or money. “When the crisis started, the real estate bubble burst, and of course companies started going bankrupt. Public administrations started not receiving incomes they were accustomed to and the whole economy blew up,” Prof. Manuel Balmaseda, an economist from the ICAI School of Engineering, told RT. The property crash continues to hit people hard, but a nationwide movement is now fighting back. Banks prefer to repossess the homes of those who cannot afford the mortgages taken out when the outlook was more positive. Among the worst affected are Spanish youngsters and immigrants. The situation has sparked regular protests against banks, the government and the austerity cuts which are widely seen as provoking a further slowdown of the economy, which is set to shrink this year by 1.7%.

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The economic disaster that heavily indebted Spain has found itself in is clearly a consequence of Spain joining the euro

 

The economic disaster that heavily indebted Spain has found itself in is clearly a consequence of Spain joining the euro, insists economist Dr. Manuel Balmaseda. When Spain joined the euro, the EU Central Bank settled overly low interest rates, resulting in Spain receiving “enormous amounts of credit which increased Spanish indebtedness, particularly foreign”. Cheap money created financial bubbles, for instance in real estate. When the 2008 economic crisis came, the bubbles burst, many companies went bankrupt and the whole overheated economy blew up, explains the professor. Madrid now needs more flexibility to curb deficit as the EU introduces new rules on budget discipline. Spain appears to have become the first country to test them. Madrid is desperately trying to negotiate a higher 2012 fiscal deficit target than that set by the European Commission. The austerity measures taken by the new conservative government of the eurozone's fourth largest economy will bear no fruit, believes Dr. Balmaseda, “because the problem is in the euro.” “There are great expectations that a new government is going to arrange the problem,” the professor says, stressing that the honeymoon of the Spaniards with the new government will not last for more than six to nine months. Dr. Manuel Balmaseda, Professor at the ICAI School of Engineering, is certain that the futures of Spain, Portugal, Greece and Italy lie outside the eurozone. He also believes that the countries remaining in the eurozone will not be very happy without their breakaway partners. Exit from the eurozone would mean a default for Spain, which is unacceptable for French and German banks that hold up to half of Madrid’s €900 billion foreign debt. These banks are interested in returning the money, whatever the cost for Spaniards. The professor believes that leaving the eurozone does not necessarily mean leaving the EU. “Nobody would chase Spain out of the EU,” he says. Dr. Manuel Balmaseda believes that the eurozone crisis is not just caused by governmental overspending. “The origin of the problem is the euro, the lack of competitiveness that the euro brought to Spain”. Spain is following the path of Greece with a two-year delay, believes the professor, because more austerity measures and further cuts of public spending are only pushing countries like Greece and Spain deeper into recession.

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Bailed Kyle Thain and James Harris return from Spain

 

Two men from Essex accused of attempted murder in Spain have returned to England. Kyle Thain, 24, and James Harris, 29, had been in Spain for the past seven months after being accused of attacking two men in an Alicante bar in July 2011. The pair, both from Southend, were held in a Spanish prison for four months without charge. They have now been allowed to return to England on strict bail conditions. Mr Harris returned to the UK on Tuesday and his friend Mr Thain arrived at Stansted Airport on Wednesday evening. New lawyer As part of the conditions of their return to the UK, both men must sign in at the Spanish consulate in London twice a month. Speaking before her son Mr Thain's arrival, Sharon Harris, said: "I am so excited and nervous at the same time. "I still can't believe it. I won't be happy until I've got my arms around him at the airport." Both men have protested their innocence and have said they can prove they were elsewhere at the time of the attack. They were released from jail in November and given their passports back after each paid £6,000 in bail, but were told they could not leave the country. A new lawyer has now negotiated their return home. Pablo Sebastian, a Spanish lawyer working in Alicante with offices in Hadleigh in Essex, has been helping the boys' families secure their release. "We are very relieved to have them home," he said. "It is an improvement because they are back with their friends, family and at their jobs." 'Lives disrupted' Mr Sebastian said the men's "impeccable behaviour" while on bail in Spain had persuaded the Spanish judge to allow them back to the UK. It is thought the men's families have paid about £25,000 to cover travel, accommodation and legal costs since the pair were arrested. The men must now wait to hear if they must return to Spain for a trial. Richard Howitt, MEP for the East of England, is now calling for a change in European law to ensure minimum standards of justice across all member states. "The idea they have been several months in prison, outside the country and suffered such a huge financial loss is unacceptable," he said. "If we had a system whereby you respect and uphold each other's system of justice, then Kyle and James could have come home seven months ago. "But their lives have been totally disrupted, as have their families', which is why we need better standards of judicial co-operation at European level."

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Blues legend Gary Moore died after drink binge

ROCK legend Gary Moore died after bingeing on enough alcohol to put him nearly eight times over the drink-drive limit, tests in Spain have revealed. The guitar ace (58) suffered a heart attack brought on by the massive amount of alcohol that he knocked back at the start of a sunshine holiday in Spain's Costa del Sol, the studies showed. No traces of any illegal drugs were found in his body. But he had 380mg of alcohol per decilitre of blood in his system, which is more than 30mg the amount associated with fatalities. And it was just short of the 416mg that Amy Winehouse had in her body when she died. Tests revealed that dad-of-three Mr Moore, found dead in bed at a luxury hotel on February 6 last year, had abused alcohol for years. Former Thin Lizzy guitarist Mr Moore died at the Kempinski Resort Hotel in Estepona hours after starting a six-day holiday with his new partner.

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Britain’s biggest international criminals has walked free from court despite been accused of attempting to smuggle £80 million worth of cocaine into the U.K.

A man who was named one of the Britain’s biggest international criminals has walked free from court despite been accused of attempting to smuggle £80 million worth of cocaine into the U.K.

Jamie Dempsey, 33, was suspected of plotting to flood London and the south-east with 299kg (660lb) of high-purity cocaine in 2009.

He appeared on a ‘most wanted’ list of crooks hiding in the Costa Del Sol - nicknamed ‘Costa Del Crime’ - and even featured on BBC’s Crimewatch programme.

Freed: Jamie Dempsey, centre, leaves court with his friends and family after being acquitted of his involvement in an £80m euro cocaine empire

Speaking outside of court after being cleared of any wrongdoing, Dempsey said: 'I’m just relieved the nightmare is over.

'I couldn’t be further from being a criminal - I’m just a penniless plumber from Essex.

 

 

 

'I was in Marbella at my parent’s house when I was arrested - the police simply got the wrong man, it was a case of mistaken identity but I don’t want to say any more.

'My face has been all over the TV and the newspapers, my friends and family have been put through hell.h

'I just want to have a good meal and get on with my life.'

Hiding place: Dempsey was cuffed in Benhavis, a mountain village near Marbella in Spain in a police operation that cost £1m

A two-year investigation, costing over £1million pounds, was launched to track Dempsey who was believed to be evading capture in Spain.

Officers from the Serious Organised Crime Agency (SOCA) finally arrested him with the help of the Spanish police in Benhavis, Marbella, last May following a tip-off from the public.

His capture was hailed as a 'great result' but on Monday he was dramatically cleared of conspiracy to supply cocaine after a four-week trial.

Last May police named Dempsey as a suspected drug lord living the high life in the Costa Del Sol.

But a jury of five men and four women took nine-and-a-half hours to find him not guilty.

Judge Michael Pert ordered the court to be cleared after Dempsey’s family erupted into cheers after the verdict was read out. 

Jailed: Fernando Hurtado, left, and John Esqulant, right, were both sentenced to 28 years behind bars

Speaking outside Leicester Crown Court his sister Natalie Dempsey, 24, said: 'We are just happy he’s coming home.

'Our family has been torn apart because of this. We’re going to give him a proper Essex home coming.

'The champagne will be flowing in Chigwell when he comes home. He doesn’t normally drink or smoke but he’ll want to party hard after all this.

'The police got the wrong man but they didn’t care. They just wanted to arrest someone in the Costa Del Sol and send them down.'

Last year three people arrested in the same police ‘sting’ operation as Dempsey were jailed for a total of 55 years.

Taxi driver John Esqulant and Colombian Fernando Hurtado were each jailed for 23 years at the same court after they were convicted of conspiracy to supply cocaine.

Part-time model and promising footballer Frank Stedman was jailed for nine years after admitting the same offence.

The sting operation began in March 2009 when officers posed as criminals who could arrange delivery of the drugs.

Three Soca agents met 41-year-old Hurtado, from Woking, Surrey, at a site in Waltham Abbey, Essex, to organise the delivery.

Two weeks later, Stedman, 26, of North Weald, Essex, paid the officers £320,800 in cash as part-payment for the drugs.

Shortly after the handover in April, armed officers stopped the van containing the Class A drug near an industrial estate in Markfield, Leics.

Esqulant, 52, of Theydon Bois, Essex, and Hurtado were arrested the same day while Stedman was brought in as he stepped off a flight at Heathrow airport in June 2010.

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