Killer fired at least 10 times at woman on Lake Shore Drive




















A 32-year-old woman was shot and killed inside a Dodge mini-van on Lake Shore Drive overnight. (WGN - Chicago)






















































A woman was shot to death while driving a van when someone pulled alongside her on the ramp from Lake Shore Drive to the Stevenson Expressway and fired 10 to 14 times Friday morning, police said.

The Chicago woman, 32, was hit at least once and died at the scene. She later was identified as Michelle Smith, of the 5000 block of South Paulina Avenue, according to the Cook County medical examiner's office. A 37-year-old woman in the van escaped unharmed and was being questioned by police, officials said.

“A brown full-sized van approached in the left lane,” Illinois State Police Capt. Luis Gutierrez said at a press conference on the scene. “That vehicle shot at our victim approximately 10 to 14 rounds."


Gutierrez said police were able to talk to the passenger, who was not harmed, and police believe that "this incident stems from drug and gang activity." Police are reviewing video footage from near the scene.


The victim's criminal history includes several drug-related arrests and a four-year sentence given in 2007 for a felony narcotics conviction, records show.


Illinois State Police learned of the shooting about 4:20 a.m. from Chicago police, who got to the scene after the van crashed.

Police closed access to interstates 94 and 55 from southbound Lake Shore Drive. Flares were laid out to keep vehicles off the ramp but they were quickly extinguished by wind. The ramp was reopened about 11:30 a.m., according to the city's Office of Emergency Management and Communications.

pnickeas@tribune.com
Twitter: @peternickeas







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BlackBerry chooses more traditional route to drum up buzz over Super Bowl ad






TORONTO – After a week of massive hype for its new smartphones, BlackBerry has decided to remain secretive about its Super Bowl commercial in an effort to squeeze every bit of juice out of the pricey advertising campaign.


The Waterloo, Ont.-based company, formerly known as Research In Motion (TSX:RIM), released a single frame of the 30-second TV spot on Friday, without any explanation of what it was, or what it meant.






The move goes against the trend of unleashing Super Bowl ads on the Internet ahead of the big game in an effort to generate extra hype.


This year, smartphone competitor Samsung chose to release its commercial starring comedians Seth Rogan and Paul Rudd on Thursday. Other major companies like Mercedes and Coke have also put their ads online.


Recent statistics have shown that advertisers gain more traction from their Super Bowl TV spots if they’re released online before the event, which takes place on Sunday.


Last year, the Super Bowl ads uploaded to YouTube before the game were viewed 600 per cent more times, an average of 9.1 million views, compared to the ones that were put online after the game, according to the streaming video service owned by Google.


Going against the trend, the BlackBerry maker will keep smartphone users guessing about what their advertisement is about and who it might feature. Certainly the company’s publicity team carefully chose which frame to release as its sneak preview.


The frame shows an early 1980s Honda Accord is parked alongside a meter. Behind it, there’s a colourful explosion of powder in front of stairs leading up to apartment No. 437.


The clues would suggest harkening back to the birth of the IBM personal computer, introduced to the market in 1981 using the coding 437 as its original character set, or more simply, the appearance of its font on screen.


It may be a clue because BlackBerry chief executive Thorsten Heins has touted the launch of the new smartphones this week as a new era in mobile computing because the devices have nearly the same amount of processing power as a personal computer.


All of that won’t be proven true or false until the game on Sunday evening where the BlackBerry ad will air sometime after the third quarter, the company said.


The Super Bowl is the most-watched television event of the year, drawing 111.3 million U.S. viewers in 2012.


In Canada, last year’s broadcast drew a record 8.1 million viewers.


The event is also the most expensive event for advertisers, costing an average of $ 3.4 million for a 30-second spot on NBC last year, according to ratings firm Nielsen.


This year, estimates for how much CBS is charging for a 30-second spot vary wildly from between $ 3.6 million to $ 4 million. CTV declined to say how much it charges for Canadian airtime.


Also slated in the Super Bowl commercial lineup are advertisements from the Bank of Montreal (TSX:BMO), with different versions airing on both sides of the border.


In the U.S., the company has purchased airtime in the midwest where its banks have a strong presence under the BMO Harris Bank brand. In the commercial, dubbed “Dream Home,” a young couple ponders the possibilities of buying a home, before they’re surprised when a real estate agent throws up a “For Sale” sign right in front of them.


BMO has also bought airtime in Canada, though it will be showing a commercial that has already aired during prime time.


Last year, a Harris-Decima Canadian Press poll found that more Canadians planned to watch the Super Bowl ads than the football game itself.


Gadgets News Headlines – Yahoo! News





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Mike Tyson’s Controversial ”Law & Order: SVU” Episode Moved Up a Week






LOS ANGELES (TheWrap.com) – NBC is sticking with its decision to cast Mike Tyson in an upcoming episode of “Law & Order: Special Victims Unit.” In fact, it’s moving the episode up a week from its original air date.


Tyson’s guest spot on “SVU” – which sparked outrage online, in light of Tyson’s rape conviction – will air February 6. The episode was originally scheduled to air on February 13.






On the episode, former boxing champ Tyson plays Reggie Rhodes, a murderer on death row who was the victim of a difficult childhood. (Andre Braugher, most recently of ABC’s “Last Resort,” also guest-stars.)


After news of the episode broke, a petition was posted on Change.org, urging NBC to cast someone other than Tyson in the role, or to pull the episode altogether.


“Am I the only one who remembers that Mike Tyson was CONVICTED and sent to prison for raping Desiree Washington?” Marcie Kaveney, an abuse survivor and advocate who started the petition, wrote in her online plea. “I am sorry but I see this as just another way to clean-up his image.”


“While we understand Mr. Tyson has served his time; it seems as though the only person who will benefit from his guest appearance will be him,” the petition, addressed to various NBC executives as well as “SVU” creator Dick Wolf and showrunner Warren Leight, reads. “There are many sexual assault survivors as well as others who consider your decision to be in poor judgment. Mr. Tyson has never publicly apologized to his victim nor has he admitted his crime. In fact, he has publicly ridiculed his victim.”


The petition has so far amassed more than 12,000 signatures.


In 1992, Tyson was convicted of raping beauty pageant contestant Washington. Sentenced to six years in prison, he ultimately served three.


NBC had no comment for TheWrap on why the episode was rescheduled. However, an individual with knowledge of the shuffle told TheWrap that, contrary to earlier reports, the rescheduling is unconnected to the fact that One Billion Rising, a protest in support of female abuse victims, is scheduled to take place the day after the original air date.


Tyson has dabbled in show business in recent years, appearing in cameos in “The Hangover” movie franchise, and performing in a one-man show, “Undisputed Truth,” which is scheduled to begin a tour next month.


TV News Headlines – Yahoo! News




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Birth Control Rule Altered to Allay Religious Objections





WASHINGTON — The Obama administration on Friday proposed yet another compromise to address strenuous objections from religious organizations about a policy requiring health insurance plans to provide free contraceptives, but the change did not end the political furor or legal fight over the issue.




The proposal could expand the number of groups that do not need to pay directly for birth control coverage, encompassing not only churches and other religious organizations, but also some religiously affiliated hospitals, universities and social service agencies. Health insurance companies would pay for the coverage.


The latest proposed change is the third in the last 15 months, all announced on Fridays, as President Obama has struggled to balance women’s rights, health care and religious liberty. Legal experts said the fight could end up in the Supreme Court.


Kathleen Sebelius, the secretary of health and human services, said the proposal would guarantee free coverage of birth control “while respecting religious concerns.”


But Kyle Duncan, the general counsel of the Becket Fund for Religious Liberty in Washington, which is representing employers in eight lawsuits, said the litigation would continue. “Today’s proposed rule does nothing to protect the religious freedom of millions of Americans,” Mr. Duncan said.


Religious groups dissatisfied with the new proposal want a broader, more explicit exemption for religious organizations and protection for secular businesses owned by people with religious objections to contraceptive coverage.


The tortured history of the rule has played out in several chapters. The Obama administration first issued standards requiring insurers to cover contraceptives for women in August 2011, less than a month after receiving recommendations to that effect from the National Academy of Sciences. In January 2012, the administration rejected a broad exemption sought by the Roman Catholic Church for insurance provided by Catholic hospitals, colleges and charities. After a firestorm of criticism from Catholic bishops and Republican lawmakers, the administration offered a possible compromise that February. But it left many questions unanswered and did not say how coverage would be provided for self-insured religious organizations.


Under the new proposal, churches and nonprofit religious organizations that object to providing birth control coverage on religious grounds would not have to pay for it.


Female employees could get free contraceptive coverage through a separate plan that would be provided by a health insurer. Institutions objecting to the coverage would not pay for the contraceptives.


Chiquita Brooks-LaSure, who helped develop the proposal as deputy director of the federal office that regulates health insurance, said: “Under the proposed rule, insurance companies — not churches or other religious organizations — will cover contraceptive services. No nonprofit religious institution will be forced to pay for or provide contraceptive coverage, and churches and houses of worship are specifically exempt.”


Moreover, she said, “Nonprofit religious organizations like universities, hospitals or charities with religious objections won’t have to arrange, contract or pay for coverage of these services for their employees or students.”


But some of the lawsuits objecting to the plan have been filed by businesses owned by people who say they have religious reasons for not wanting to provide contraceptive coverage. Under the proposed rule, “for-profit secular employers” would have to provide birth control coverage to employees, even if the business owners had a religious objection to the idea.


Insurers said they were studying the proposal, but had questions about how it would work. Many insurers asked where they would get the money to pay for birth control pills if — as the proposed rule says — they cannot “impose any premium, fee or other charge” for the coverage. The 2010 health care law generally requires employers to provide women with coverage at no cost for “preventive care and screenings,” which the administration says must include contraceptives for women under most health plans.


The administration says employers must cover sterilization and the full range of contraceptive methods approved by the Food and Drug Administration, including emergency contraceptive pills, like those known as ella and Plan B One-Step. Employers that do not provide such coverage will be subject to financial penalties.


The proposed rule is somewhat ambiguous about exactly who would pay the cost of contraceptive coverage.


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Apple phones outsell Samsung in the U.S. in the fourth quarter









Bolstered by sales of its iPhone 5, Apple sold more mobile phones in the U.S. in the fourth quarter than any other maker, including its rival Samsung.


It marks the first time since 2008 that Samsung was not the top phone seller in a quarter.


Still, Samsung retained its crown for all of 2012, selling 53 million devices. Apple was second with 43.7 million phones sold.





For the fourth quarter, Apple sold 17.7 million units, or 34% of the phones sold in the quarter, according to a report released Friday morning by Strategy Analytics. That was up from 12.8 million devices sold in the year-earlier period.

Samsung was next with 16.8 million phones, or 32% of all phones sold in the quarter. Total sales  represented an increase for Samsung, which sold 13.5 million phones a year earlier. 


QUIZ: Test your Apple knowledge


"This was a good performance from Samsung, as its market share (of phones sold in the fourth quarter) rose 5 points from 27% a year earlier, but it was not enough to hold off a surging Apple," the report says.


Samsung "will surely be keen to recapture that title in 2013 by launching improved new models such as the rumored Galaxy S4," the report says. 


Third place in the U.S. was LG, which sold 6.9 million phones, 9% of all phones sold during the fourth quarter.


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Mobile social networking app Path settles with FTC for $800,000





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Reward at $24K for info leading to arrest in shooting of teen

The best friend of Hadiya Pendleton talks about the moments before her friend was shot in Chicago on January 31, 2013. (Heather Charles, Chicago Tribune)









The sixth-grader can barely keep from smiling, self-conscious in front of the camera as she delivers a very serious message.

"Hi, my name is Hadiya. This commercial is informational for you and your future children," she begins. "So many children out there are in gangs and it's your job as students to say no to gangs and yes to a great future."






The video then shows shots of a boy slumped in a stairwell, another boy sprawled against a locker, a girl lying on the floor against a wall as a classmate next to Hadiya says, "So many children in the world have died from gang violence. More than 500 children have died from being in the wrong place at the wrong time."

Four years after Hadiya Pendleton made that public service video at Carter G. Woodson Elementary School, police are saying the same thing about her.

Hadiya had just finished her final exams at King Prep High School, where she was a sophomore, and was hanging out with friends from the school's volleyball team when she was gunned down in a park in the 4400 block of South Oakenwald Avenue. Thursday afternoon, police announced the reward for information leading to an arrest in the shooting had increased to $24,000, up from $11,000 announced Wednesday.

Hadiya and the others had sought shelter from a rainstorm under a canopy at the park around 2:20 p.m. Tuesday when a gunman jumped a fence, ran toward them and opened fire, police said.

As the teens scattered, Hadiya and two teenage boys were shot. Hadiya was hit in the back and pronounced dead at Comer Children's Hospital less than an hour after the shooting. The wounds suffered by the boys were not life-threatening.

Police Superintendent Garry McCarthy stressed that neither Hadiya nor anyone in the group she was with were involved with gangs. But it appears the gunman mistook the students for members of a rival gang, he said. The shooter was last seen fleeing in a white Nissan.

“These were good kids by everything that I learned," McCarthy said at a Wednesday news conference, where a reward of $11,000 was announced. "Wrong place at the wrong time.”

Hadiya was shot a little more than a week after performing with the King College Prep band in Washington during President Barack Obama's inauguration festivities. The shooting occurred in a park about a mile north of Obama's Kenwood home.

The shooting has drawn the attention of both the White House, which is pushing for national gun control, and City Hall as Chicago closes on a violent January. Hadiya was the 42nd homicide victim this year in the city, where killings last year climbed above 500.

Hadiya's father, Nathaniel Pendleton, pleaded for someone to step forward and bring the 15-year-old's killer to justice.

"She was destined for great things," he said.

Hadiya was a majorette with the band at King, one of the city's elite selective-enrollment schools. She dreamed of going to Northwestern University and talked about becoming a pharmacist or a journalist, maybe a lawyer.

Police have reported no arrests.



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BSkyB to offer sports channels online for daily fee






LONDON (Reuters) – BSkyB will offer its popular sports channels online for a daily fee, seeking new customers to offset slowing growth at its core pay-TV service amid sluggish consumer spending.


Sky, Britain’s dominant pay-TV group which provides fixed-line telephony, TV and broadband to 10.7 million households, has adapted its strategy during the economic downturn after years of chasing new subscribers to its core TV offering.






The group added 25,000 subscribers to its pay-TV service in the three months to the end of December, well down on the more than 100,000 users it used to routinely add each quarter.


In response, it has focused on selling more products such as high definition TV and broadband to existing customers, and moving online to reach those not willing to sign up to a monthly contract. The approach has enabled the group to consistently post strong financial results and pay higher dividends.


“Although we expect the consumer environment in 2013 to remain challenging, we have a strong set of plans for the year ahead,” Chief Executive Jeremy Darroch said on Thursday.


Darroch said the group would offer its sports channels, which show everything from Premier League soccer to Formula One motor racing and cricket, on its new online service called Now TV in the next few months.


Viewers, who do not need to sign up to a contract, will be able to pay 9.99 pounds to watch all six Sky Sports channels for 24 hours. It has already shown movies via the online offering to 25,000 customers since its launch last year.


The new internet drive will help BSkyB compete with existing online services such as Lovefilm and with BT Vision, which has won the right to show its own sports content, but it is also having to bet that its existing customers will not downgrade to the cheaper online offering to save money.


CUSTOMER LOYALTY


The group’s performance in the first half of the year showed that, despite the pressures on consumer spending, customer loyalty had remained relatively solid, with subscribers spending on average 568 pounds a year, up 24 pounds on the year before.


“Net additions were slightly below our estimates reflecting the tough consumer environment,” analysts at Numis said. “(But) encouragingly, take up of new products continues to increase, driving customer satisfaction and loyalty.”


Those customers taking all three main services – TV, broadband and telephony – accounted for 33 percent of the user base, up 4 percentage points year on year.


The rise in customers helped the group to post first-half operating profit up 8 percent to 647 million pounds ($ 1 billion) against a forecast of 632 million pounds. Cost control helped the group pay an interim dividend up 20 percent to 11 pence.


“We believe the BSkyB investment case has evolved over the past year or so, with the challenging consumer environment making the addition of new households to the (pay-TV) service more difficult,” Numis said.


“The group has rightly prioritized the increased penetration of multiple products, notably HD and broadband, which drive average revenue per user and reduce churn over the medium/long term. We are supportive of investment in products such as Now TV which offer an attractive risk/return in our view.”


Shares in BSkyB were up 1 percent to 819 pence in mid-morning trade, following a 21 percent rise in the last 12 months, and valuing the group at 13.2 billion pounds.


(Reporting by Kate Holton; Editing by Rhys Jones and Mark Potter)


Internet News Headlines – Yahoo! News





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Relativity Buys Into Jim Carrey Heist Comedy ”Loomis Fargo”






NEW YORK (TheWrap.com) – Relativity Media has acquired worldwide rights to the Jim Carrey heist comedy “Loomis Fargo,” which it will finance, produce and distribute, the studio announced on Thursday.


Jared Hess, who co-wrote and directed “Napoleon Dynamite,” will direct the movie from a script by Emily Spivey that also counts Chris Bowman and Hubbel Palmer as writers. Inspired by true events, it tells the story of four Southerners who stole nearly $ 20 million from an armed Loomis Fargo truck in 1997.






“Saturday Night Live” creator Lorne Michaels and John Goldwyn are producing the movie while Danny McBride, Jody Hill, Michael Aguilar, Kevin Messick are executive producing with Relativity CEO Ryan Kavanaugh and president Tucker Tooley.


Brett Dahl will oversee the project for Relativity, which is aiming for an April start to production.


Carrey can next be seen in “The Incredible Burt Wonderstone,” which will premiere at South by Southwest before it theatrical release. Relativity just acquired Joseph Gordon-Levitt’s directorial debut “Don Jon’s Addiction” at Sundance and will next release the romantic thriller “Save Haven.”


Movies News Headlines – Yahoo! News





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During Trial, New Details Emerge on DuPuy Hip





When Johnson & Johnson announced the appointment in 2011 of an executive to head the troubled orthopedics division whose badly flawed artificial hip had been recalled, the company billed the move as a fresh start.




But that same executive, it turns out, had supervised the implant’s introduction in the United States and had been told by a top company consultant three years before the device was recalled that it was faulty.


In addition, the executive also held a senior marketing position at a time when Johnson & Johnson decided not to tell officials outside the United States that American regulators had refused to allow sale of a version of the artificial hip in this country.


The details about the involvement of the executive, Andrew Ekdahl, with the all-metal hip implant emerged Wednesday in Los Angeles Superior Court during the trial of a patient lawsuit against the DePuy Orthopaedics division of Johnson & Johnson. More than 10,000 lawsuits have been filed against DePuy in connection with the device — the Articular Surface Replacement, or A.S.R. — and the Los Angeles case is the first to go to trial.


The information about the depth of Mr. Ekdahl’s involvement with the implant may raise questions about DePuy’s ability to put the A.S.R. episode behind it.


Asked in an e-mail why the company had promoted Mr. Ekdahl, a DePuy spokeswoman, Lorie Gawreluk, said the company “seeks the most accomplished and competent people for the job.”


On Wednesday, portions of Mr. Ekdahl’s videotaped testimony were shown to jurors in the Los Angeles case. Other top DePuy marketing executives who played roles in the A.S.R. development are expected to testify in coming days. Mr. Ekdahl, when pressed in the taped questioning on whether DePuy had recalled the A.S.R. because it was unsafe, repeatedly responded that the company had recalled it “because it did not meet the clinical standards we wanted in the marketplace.”


Before the device’s recall in mid-2010, Mr. Ekdahl and those executives all publicly asserted that the device was performing extremely well. But internal documents that have become public as a result of litigation conflict with such statements.


In late 2008, for example, a surgeon who served as one of DePuy’s top consultants told Mr. Ekdahl and two other DePuy marketing officials that he was concerned about the cup component of the A.S.R. and believed it should be “redesigned.” At the time, DePuy was aggressively promoting the device in the United States as a breakthrough and it was being implanted into thousands of patients.


“My thoughts would be that DePuy should at least de-emphasize the A.S.R. cup while the clinical results are studied,” that consultant, Dr. William Griffin, wrote.


A spokesman for Dr. Griffin said he was not available for comment.


The A.S.R., whose cup and ball components were both made of metal, was first sold by DePuy in 2003 outside the United States for use in an alternative hip replacement procedure called resurfacing. Two years later, DePuy started selling another version of the A.S.R. for use here in standard hip replacement that used the same cup component as the resurfacing device. Only the standard A.S.R. was sold in the United States; both versions were sold outside the country.


Before the device recall in mid-2010, about 93,000 patients worldwide received an A.S.R., about a third of them in this country. Internal DePuy projections estimate that it will fail in 40 percent of those patients within five years; a rate eight times higher than for many other hip devices.


Mr. Ekdahl testified via tape Wednesday that he had been placed in charge of the 2005 introduction of the standard version of the A.S.R. in this country. Within three years, he and other DePuy executives were receiving reports that the device was failing prematurely at higher than expected rates, apparently because of problems related to the cup’s design, documents disclosed during the trial indicate.


Along with other DePuy executives, he also participated in a meeting that resulted in a proposal to redesign the A.S.R. cup. But that plan was dropped, apparently because sales of the implant had not justified the expense, DePuy documents indicate.


In the face of growing complaints from surgeons about the A.S.R., DePuy officials maintained that the problems were related to how surgeons were implanting the cup, not from any design flaw. But in early 2009, a DePuy executive wrote to Mr. Ekdahl and other marketing officials that the early failures of the A.S.R. resurfacing device and the A.S.R. traditional implant, known as the XL, were most likely design-related.


“The issue seen with A.S.R. and XL today, over five years post-launch, are most likely linked to the inherent design of the product and that is something we should recognize,” that executive, Raphael Pascaud wrote in March 2009.


Last year, The New York Times reported that DePuy executives decided in 2009 to phase out the A.S.R. and sell existing inventories weeks after the Food and Drug Administration asked the company for more safety data about the implant.


The F.D.A. also told the company at that time that it was rejecting its efforts to sell the resurfacing version of the device in the United States because of concerns about “high concentration of metal ions” in the blood of patients who received it.


DePuy never disclosed the F.D.A. ruling to regulators in other countries where it was still marketing the resurfacing version of the implant.


During a part of that period, Mr. Ekdahl was overseeing sales in Europe and other regions for DePuy. When The Times article appeared last year, he issued a statement, saying that any implication that the F.D.A. had determined there were safety issues with the A.S.R. was “simply untrue.” “This was purely a business decision,” Mr. Ekdahl stated at that time.


This article has been revised to reflect the following correction:

Correction: February 1, 2013

A headline on Thursday about a patient lawsuit against DePuy Orthopaedics, a unit of Johnson & Johnson, misstated the start of the trial in some copies. It began last week, not on Wednesday.



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Former Peregrine CEO Wasendorf gets 50 years in prison









A U.S. judge on Thursday sentenced the founder of Peregrine Financial Group to 50 years in prison for looting hundreds of millions of dollars from the brokerage, saying his customers would probably never recover the money they lost.

Russell Wasendorf Sr., who had tried to kill himself just before the fraud was uncovered, received the maximum sentence allowed by law and was ordered to pay $215.5 million in restitution for his nearly 20-year scheme.

Wasendorf's fraud was revealed in 2012, triggering the collapse of the brokerage and further shaking investors' confidence in the U.S. futures industry, already rattled by the failure of larger rival M.F. Global.

"I'm very sorry for the financial and emotional damage I've caused to investors and employees of Peregrine Financial Group," Wasendorf said in a feeble voice at a sentencing hearing in Cedar Rapids, Iowa. "I feel I fully deserve whatever sentence I am given… My guilt is such I will accept that sentence."

Chief Judge Linda Reade of the U.S. District Court of the Northern District of Iowa said former Peregrine customers will probably never get all their money back.

Wasendorf, 64, admitted last July that he had bilked tens of thousands of clients over a period of nearly 20 years, faking bank statements and lying to federal regulators, employees and his closest family members.

As regulators closed in on the fraud, Wasendorf made a botched suicide attempt outside his $24-million headquarters in Cedar Falls, Iowa, which investigators say was financed with money siphoned from customers.

Peregrine Financial, known as PFGBest, quickly collapsed, and 24,000 former customers are still missing most of the money they had invested with the firm.

Wasendorf pleaded guilty in September to embezzling more than $100 million. Prosecutors said the amount stolen was more like $215 million.

"The lengthy prison sentence imposed today is just punishment for a con man who built a business on smoke and mirrors," said Acting U.S. Attorney Sean Berry.

PLEAS FOR LENIENCY

Supporters of the disgraced executive had asked Reade for leniency, arguing that Wasendorf is in frail health and that he had helped others even in the midst of his 20-year fraud.

Wasendorf, wearing an orange sweatshirt, looked gaunt in court after spending six months in isolation in a county jail.

He has been sick in jail, and doctors found a tumor on or near his pancreas, according to testimony from his pastor, Linda Livingston of Ascension Lutheran Church. Wasendorf's mother died of pancreatic cancer, but it is unknown whether Wasendorf's tumor is cancerous, she said.

U.S. prosecutors said the large loss, the sophisticated nature of the crime, and the sheer number of victims justified Wasendorf spending the rest of his life behind bars.

"The defendant spent like he was the richest man in the world," Assistant U.S. Attorney Peter Deegan said in court.

Peregrine's collapse dealt a blow to confidence in the U.S futures industry, already reeling from $1.6 billion hole in customer pockets left when giant brokerage MF Global failed nine months earlier.

Futures traders had never before suffered such large losses as a result of a brokerage failure.

Despite his misdeeds, Wasendorf "did do some positive things for the community," said former U.S. Congressman David Nagle from Iowa, who spoke up for the fallen CEO in court.

Nagle, who helped Wasendorf win zoning approval for Peregrine's environmentally-friendly headquarters, asked the judge for leniency.

"Who wants to defend the magnitude of the crimes Mr. Wasendorf committed?" he said. "But good people do bad things."

Wasendorf was well known for donating to local charities before his empire came crashing down.

However, he built his reputation for generosity using money stolen from his customers, Judge Reade said, adding that the donations likely lessened Wasendorf's feelings of guilt.

Peregrine customers "unwittingly funded the charities, but it was Mr. Wasendorf who took the credit," she said.

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