Prosecutors: Peregrine Financial fraud loss exceeds $215M









Peregrine Financial Group's former chief executive stole more than $215 million from customers of his now-defunct futures brokerage and should be sentenced to the maximum 50 years in jail, U.S. prosecutors said Tuesday.

Russell Wasendorf Sr., 64, who founded the firm, has pleaded guilty to embezzlement but wants a lighter sentence, saying that the loss was less than $200 million and that he used "very basic, simple means" to carry out his fraud, according to documents filed by U.S. prosecutors.

Wasendorf, whose attempted suicide sent his firm into bankruptcy last July, is in jail in Iowa and will be sentenced Jan. 31.

U.S. prosecutors say the large loss, the sophisticated nature of the crime and the sheer number of victims -- more than 10,000 -- justify his spending the rest of his life behind bars.

"While some of defendant's individual acts might be characterized as simple in isolation, they were part of an exceedingly complex scheme whereby defendant's entire business was used as a mechanism to gather and purloin investor funds," prosecutors said in their sentencing memorandum, promising to fight any attempt by Wasendorf to receive a sentence of less than 50 years.

Prosecutors put the exact loss at $215,530,547, based on Peregrine's bank records, and will call Brenda Cuypers, the firm's chief financial officer, as a witness at the sentencing hearing next week.

They had previously pegged the embezzlement only at "more than $100 million," to which Wasendorf pleaded guilty.

Wasendorf's public defender has a policy of declining to comment on cases, and did not reply to an email from Reuters seeking comment.

The collapse last July of Peregrine Financial, known as PFGBest, 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.

"To see (Wasendorf) go to jail could give some people some hope," said James Koutoulas, co-head of the Commodity Customer Coalition, which fought to get customer money back in both bankruptcies. "In MF Global, justice hasn't been done."

No one has been charged with wrongdoing in MF Global's collapse.

Regulators have scrambled to patch perceived gaps in customer protections at brokerages and exchanges that handle contracts valued at some $2.5 trillion a day.

That figure is set to rise as new rules push over-the-counter swaps onto regulated trading venues.

The sentencing memorandum offers new details in the government's account of the fraud, which Wasendorf said in a July statement began in the early 1990s after he was hounded by an overzealous regulator.

The fraud began even earlier, prosecutors said in Tuesday's filing, when he stole at least $250,000 from customers' accounts to pay back the original financier of his brokerage, a person referred to in the document only by the initials "J.C."

"Using a copy machine, defendant fabricated a bank statement to conceal the theft of funds," the document said. For the next nearly 20 years, prosecutors said, he faked bank balances, fabricated deposits, and used a rented post office box in Cedar Falls, Iowa, to intercept letters from his auditors meant to check up on his balances at U.S. Bank.

He even went so far as to fly from Chicago, where his firm did most of its business, to Iowa to prevent the near-discovery of his fraud, ultimately convincing Peregrine and U.S. Bank employees that nothing was wrong, the document said.

All the while he worked to make Peregrine Financial seem much bigger and more successful than it was, they said.

Wasendorf believed that "if he could make himself appear rich, the auditors and regulators wouldn't be concerned with the state of his personal finances and not discover it was all a fraud," prosecutors quoted Wasendorf as saying in a sealed presentencing report.

But Peregrine was never actually profitable, even though by its demise investors had entrusted more than $376 million to him and his firm, they said.

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Obama lays out 2nd-term agenda

Watch a one-minute time-lapse of the entire presidential inauguration on Jan. 21, 2013, from the pre-dawn set-up to the end of the event. (Alex Garcia/Chicago Tribune)









A confident President Barack Obama kicked off his second term on Monday with an impassioned call for a more inclusive America that rejects partisan rancor and embraces immigration reform, gay rights and the fight against climate change.

Obama's ceremonial swearing-in at the U.S. Capitol was filled with traditional pomp and pageantry, but it was a scaled-back inauguration compared with the historic start of his presidency in 2009 when he swept into office on a mantle of hope and change as America's first black president.






Despite expectations tempered by lingering economic weakness and a politically divided Washington, Obama delivered a preview of the priorities he intends to pursue - essentially a reaffirmation of core liberal Democratic causes - declaring Americans “are made for this moment” and must “seize it together.”

His hair visibly gray after four years in office, Obama called for an end to the partisanship that marked much of his first term in the White House in bitter fights over the economy with Republicans.

“We cannot mistake absolutism for principle, or substitute spectacle for politics, or treat name-calling as reasoned debate,” Obama said from atop the Capitol steps overlooking the National Mall.

Looking out on a sea of flags, Obama addressed a crowd of hundreds of thousands of people that was smaller than the record 1.8 million who assembled on the mall four years ago.

Speaking in more specific terms than is customary in an inaugural address, he promised “hard choices” to reduce the federal deficit without shredding the social safety net and called for a revamping of the tax code and a remaking of government.

The Democrat arrived at his second inauguration on solid footing, with his poll numbers up, Republicans on the defensive and his first-term record boasting accomplishments such as a U.S. healthcare overhaul, financial regulatory reforms, the end of the war in Iraq and the killing of Osama bin Laden.

But fights are looming over budgets, gun control and immigration. Obama, however, has sounded more emboldened because he never again needs to run for election.

SECOND TIME TAKING OATH

When Obama raised his right hand and was sworn in by Chief Justice John Roberts, it was his second time taking the oath in 24 hours - but this time with tens of millions of people watching on television. As he spoke, the president beamed as chants of “Obama, Obama!” rang out from the crowd.

Obama had a formal swearing-in on Sunday at the White House because of a constitutional requirement that the president take the oath on Jan. 20. Rather than stage the full inauguration on a Sunday, the main public events were put off until Monday.

It was another political milestone for Obama, 51, the Hawaiian-born son of a black father from Kenya and a white mother from Kansas.

During a triumphant parade down Pennsylvania Avenue to the White House, the president and first lady Michelle Obama thrilled cheering onlookers by twice getting out of their armored limousine and walking part of the way on foot, as they had done four years ago. Secret Service agents kept close watch.

In the evening, the couple visited the two formal inaugural balls - down from 10 in 2009 - to celebrate with supporters. At both, Obama and the first lady danced to Al Green's “Let's Stay Together,” performed by singer Jennifer Hudson.

In his 20-minute inaugural speech, Obama sought to reassure Americans at the midpoint of his presidency and encourage them to help him take care of unfinished business. “Preserving our individual freedoms ultimately requires collective action,” he said.

The crowds on the National Mall were enthusiastic, but the euphoria of 2009 was gone.

“Four years ago, it was the first black president,” said local resident Greg Pearson, 42. “It doesn't have the same energy. It's more subdued. It's not quite the party it was four years ago. Our expectations are pretty low (this time): let's not default on the national debt, keep the government running.”

Organizers had given various estimates of the number of people they expected would jam the mall for the ceremony. An inauguration official estimated the crowd at about 1 million.

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At Obama’s church service, hymns, prayers – and a tweet?






WASHINGTON (Reuters) – There was preaching, praying and singing at President Barack Obama’s church service on Inauguration Day on Monday. But was there tweeting, too?


As Atlanta pastor Andy Stanley wrapped up his sermon at St. John’s Episcopal Church across from the White House by urging Obama to leverage his power for the greater good, a tweet went out from the president’s own Twitter feed.






“I’m honored and grateful that we have a chance to finish what we started. Our work begins today. Let’s go. -bo,” said the tweet, which went to more than 26 million Obama followers.


Obama typically designates tweets that he writes himself by signing his initials in lowercase: “-bo.” That led to questions over whether the president had tweeted from church – and perhaps provided a new chapter in the debate over the appropriate use of social media.


But a White House spokesman said Obama did not send the tweet in the middle of the church service.


That means it could have been done by Obama in advance and timed for release while he was in church, or that it was posted by Organizing for Action, the non-profit group that now operates the president’s Twitter account.


The new group, which is led by Obama’s former campaign team, plans to try to build public support for the president’s policies.


The group did not immediately comment on the authorship or timing of the tweet.


Even if Obama had sent out the tweet from church, such messages from the pew are no longer taboo, said Scott Williams, a pastor and consultant from Edmond, Oklahoma, who works with ministries to use social media to spread the word and engage members.


“It’s definitely OK – it’s relevant,” he said. He cited a verse from the prophet Isaiah: “Like a crane or a swallow, so did I twitter.”


“‘Thou shalt twitter in church’ is a way that I present it,” Williams said in an interview, noting that many people now used Bible apps on their mobile devices in the pews.


Stanley’s North Point Community Church in Atlanta produced a Christmas music video for iPhones and iPads that has been viewed 3.7 million times on YouTube, said Williams, who is familiar with the 33,000-member ministry.


Stanley delivered his sermon in a very “old-school” setting. St. John’s, a yellow church with white trim, was built in 1816 and often is called the “Church of the Presidents” because every president since James Madison has attended it at least occasionally.


The service included a mix of traditional hymns such as “Oh God, Our Help in Ages Past,” a gospel solo by singer Ledisi, and an African-American spiritual, “Great Day.” It also included readings and prayers from Jewish, Christian and Catholic clergy.


Stanley talked about a passage in the Bible where Jesus washes his disciples’ feet, setting an example of equality.


“What do you do when it dawns on you that you’re the most powerful person in the room? You leverage that power for the benefit of other people in the room,” Stanley said.


“Mister President, you have an awfully big room,” the pastor said. “It’s as big as our nation. At times, as you know, it’s as big as this world.”


(Editing by David Lindsey and Peter Cooney)


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“Django Unchained” producers order end to slavery action-figures






LOS ANGELES (Reuters) – The producers of Quentin Tarantino’s “Django Unchained” on Friday ordered a halt to the production of action figures based on the Oscar-nominated slavery movie after criticism that they were offensive to African-Americans.


The eight-inch (20-cm) dolls, which were intended for people 17 and older, included gun-slinging freed slave Django, his wife and cruel, white plantation owner Candie.






“Django Unchained” has been attacked by some African-Americans for its portrayal of slavery and its violence. Despite the controversy, the film was nominated for five Oscars, including best picture.


Civil rights leader Al Sharpton’s National Action Network was among the groups that criticized the action figures.


“Selling this doll is highly offensive to our ancestors and the African-American community,” K.W. Tulloss, president of the Los Angeles branch of National Action Network, told the New York Daily News.


“The movie is for adults, but these are action figures that appeal to children,” Tulloss told the paper. “We don’t want other individuals to utilize them for their entertainment, to make a mockery of slavery.”


The Weinstein Co, which produced “Django Unchained,” said in a statement on Friday that in light of the reaction to the dolls it had ordered production to stop.


“We have tremendous respect for the audience and it was never our intent to offend anyone,” the company said.


The action figures were sold by the National Entertainment Collectibles Association, which could not be reached for comment on Friday.


The producers noted that action figures have been produced for all of Tarantino’s past films, including his World War Two revenge fantasy “Inglourious Basterds” in 2009.


“Django Unchained” stars Jamie Foxx, Christoph Waltz and Leonardo DiCaprio and has taken in some $ 130 million at U.S. and Canadian box offices since its release on December 25.


(Reporting by Eric Kelsey and Alex Dobuzinskis Editing by Jill Serjeant and Eric Beech)


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The Week: A Roundup of This Week’s Science News





“Science,” a colleague once said at a meeting, “is a mighty enterprise, which is really rather quite topical.” He was so right: as we continue to enhance our coverage of the scientific world, we always aim to keep the latest news front and center.




His observation seemed like a nice way to introduce this column, which will highlight the week’s developments in health and science news and glance at what’s ahead. This past week, for instance, the mighty enterprise of science addressed itself to such newsy topics as the flu (there’s still time to get vaccinated!), and mental illness and gun control.


In addition to the big-headline stories that invite wisdom from scientists, each week there is a drumbeat of purely scientific and medical news that emerges from academic journals, fieldwork and elsewhere. These developments, from the quirky to the abstruse, often make their way into the daily news cycle, depending on the strength of the research behind them. (Well, that’s how we judge them, anyway.)


Many discoveries are hard to unravel. “In a way, science is antithetical to everything that has to do with a newspaper,” the same colleague observed. “You couldn’t imagine anything less consumer-friendly.”


Let’s aim to fix that. Below, a selection of the week’s stories.


DEVELOPMENTS


Health


Strange, but Effective


People with a bacterial infection called Clostridium difficile — which kills 14,000 Americans a year — have a startling cure: a transplant of someone else’s feces into their digestive system, which introduces good bacteria that the gut needs to fight off the bad. For some people, antibiotics don’t fix this problem, but an infusion of diluted stool from a healthy person seems to do the trick.


Genetics


Dig We Must



Hillery Metz and Hopi Hoekstra/Harvard University



Evolutionary biologists at Harvard took a tiny species of deer mice, known for building elaborate burrows with long tunnels, and bred it with another species of deer mice, which builds short-tunneled burrows. Comparing the DNA of the original mice with their offspring, the biologists pinpointed four regions of genetic code that help tell the mice what kind of burrow to construct.


Aerospace


Launch, Then Inflate



Uncredited/Bigelow Aerospace, via Associated Press



NASA signed a contract for an inflatable space habitat — roughly pineapple-shaped, with walls of floppy cloth — that will ideally be appended to the International Space Station in 2015. NASA aims to use the pod to test inflatable technology in space, but the company that builds these things, Bigelow Aerospace, has bigger ambitions: think of a 12-person apartment and laboratory in the sky, with two months’ rent at north of $26 million.


Biology


What’s Green and Flies?



Jodi Rowley/Australian Museum



National Geographic reported on an Australian researcher working in Vietnam who discovered a great-looking new species of flying frog. Described as having flappy forearms (the better for gliding), the three-and-a-half-inch-long frog likes to “parachute” from tree to tree, Jodi Rowley, an amphibian biologist at the Australian Museum in Sydney, told the magazine. She named it Helen’s Flying Frog, for her mother.


Privacy


That’s Joe’s DNA!


People who volunteer their genetic information for the betterment of science — and are assured anonymity — may find that their privacy is not a slam dunk. A researcher who set out to crack the identities of a few men whose genomes appeared in a public database was able to do so using genealogical Web sites (where people upload parts of their genomes to try to find relatives) as well as some simple search tools. He was trying to test the database’s security, but even he did not expect it to be so easy.


Genetics


An On/Off Switch for Disease


Geneticists have long puzzled over what it is that activates a disease in one person but not in another — even in identical twins. Now researchers from Johns Hopkins and the Karolinska Institute in Sweden who studied people with rheumatoid arthritis have identified a pattern of chemical tags that tell genes whether to turn on or not. In rheumatoid arthritis, the immune system attacks the body, and it is thought the tags enable the attack.


Planetary Science


That Red Planet


Everybody loves Mars, and we’re all secretly hoping that NASA’s plucky little rover finds evidence of life there. Meanwhile, a separate NASA craft — the Mars Reconnaissance Orbiter, which has been looping the planet since 2006 — took some pictures of a huge crater that looks as if it once held a lake fed by groundwater. It is too soon to say if the lake held living things, but NASA’s news release did include the happy phrase “clues to subsurface habitability.”


COMING UP


Animal Testing


Retiring Chimps



Emily Wabitsch/European Pressphoto Agency



A lot of people have strong feelings about the use of chimpanzees in biomedical and behavioral experiments, and the National Institutes of Health has been listening. On Tuesday, the agency is to release its recommendations for curtailing chimp research in a big way. This will be but a single step in a long process and it will apply only to the chimps the agency owns, but it may well stir big reactions from many constituencies.


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Investigators probe 787 battery maker









U.S. and Japanese aviation safety officials investigating problems with Boeing Co.'s 787 Dreamliner visited the headquarters of the plane's battery maker on Monday, seeking clues into why one of the technologically advanced aircraft made an emergency landing last week.

A spokesman for GS Yuasa Corp., which makes batteries for the 787, said the company was fully cooperating with the investigation, and its engineers were working with the officials from the U.S. Federal Aviation Administration (FAA) and Japan's Civil Aviation Bureau (CAB) at the company's compound in Kyoto, where it makes airplane batteries.






CAB official Tatsuyuki Shimazu told reporters the investigating team had been briefed by GS Yuasa and had toured the plant, looking at battery design, production and quality. The Japanese investigation at the plant will continue on Tuesday on a more detailed level, including tracking battery batch numbers and production dates, he said.

Authorities around the world last week grounded the new lightweight Dreamliner, and Boeing halted deliveries after a problem with a lithium-ion battery prompted an All Nippon Airways 787 into the emergency landing at Takamatsu airport during a domestic flight. Earlier this month, a similar battery caught fire in a Japan Airlines' 787 parked at Boston Logan International Airport.

EXPANDED PROBE

U.S. safety investigators on Sunday ruled out excess voltage as the cause of the Boston battery fire on Jan. 7, and said they were expanding their probe to look at the battery's charger and the jet's auxiliary power unit. The battery is one part of the 787's complex electrical system, built by French company Thales SA.

“Results have shown the battery was abnormal in both the Boston and Takamatsu (incidents). They were the most damaged,” Shigeru Takano, a senior safety official at the CAB, told reporters ahead of the on-site visit to GS Yuasa. “We will look into if the work that took place, from design to manufacturing, was appropriate.”

Shares in GS Yuasa, valued at close to $1.5 billion, rose 1 percent on Monday, having dropped nearly 10 percent since the Boston fire. The benchmark Nikkei fell 1.5 percent.

The company, which employs nearly 12,300 staff, expects revenue of 288 billion yen ($3.2 billion) in the year to end-March - with only around 1 percent of that coming from its aircraft battery business. The company's batteries are used primarily in motorbikes, industrial equipment and power supply devices.

GS Yuasa, in which automaker Toyota Motor Corp has a 2.7 percent stake, reported an operating profit of around $160 million in the year to last March.

MORE FLIGHTS CANCELLED

The grounding of the Dreamliner, an advanced carbon-composite plane with a list price of $207 million, has forced ANA to cancel 151 domestic and 26 international flights scheduled for Jan. 23-28, affecting more than 21,000 passengers, the airline said on Monday.

The cancellations add to the 72 flights scheduled for Jan. 19-22 that ANA called off last week. ANA, which flies the most Dreamliners of any airline, said it will announce on Thursday its plans on flight cancellations for dates from Jan. 29.

ANA said it had not yet decided whether to seek compensation from Boeing for losses as a result of the 787's grounding. “At this point we're concentrating on getting the Dreamliner back in service, rather than considering requesting compensation,” said spokesman Ryosei Nomura.

Rival JAL said it cancelled four flights on its Tokyo-San Diego route for Jan. 27-28, adding to the 8 flights originally scheduled for Jan. 19-25 on the same route it called off last week. It said it had yet to decide changes for flights slated for Jan. 26.

“We've been able to rearrange routes originally scheduled to use the Dreamliner with alternative aircraft,” said JAL spokeswoman Sze Hunn Yap, adding there was no talk about compensation at this stage.

Japan is the biggest market to date for the Dreamliner, with JAL and ANA flying 24 of the 50 passenger jets that Boeing has delivered.
 
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Subzero wind chills expected Monday, snow later in week




















Frigid weather comes to Chicago




















































It feels like winter now that frigid air is gripping Chicago, but it may look like it if the city's snowless streak ends Thursday.


The National Weather Service is calling for sustained low temperatures and subzero wind chills through midweek. And snow could shroud the city Thursday.


"There's still uncertainly on how it plays out," National Weather Service meteorologist Richard Castro said. "But a lot of the computer models are giving a solution that would bring the first accumulating snow of the season."








After more than 700 days without dipping below zero and about 11 months without a major snowstorm, Chicagoans are about to be reminded that they don't live in Oklahoma. If the current projections hold steady, Thursday could end a record-setting stretch of about 330 calendar days without an inch of snow.


That snow would come after a stretch of extreme cold that's expected to drop wind chills to minus 17 degrees Monday. Temperatures at O'Hare International Airport are expected to dip to minus 1 overnight Monday, which would end the city's fourth-longest streak without a subzero reading. The record of 1,415 days, set in 1940, is about two years away.


This week will be a frosty chapter in a balmy winter that has already seen Chicago bust records for days without a subfreezing high temperature and the latest 1-inch snowfall.


Regardless of whether the mercury finally plunges below zero, Castro said residents would be smart to bundle up and avoid long stretches outdoors.


"It's something we haven't seen since 2011," he said. "Even though Chicagoans have (endured) past cold winters, we haven't dealt with anything like this for a while. So it's going to be a shock to the system."


mtsmith@tribune.com




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Manti Te’o to be interviewed by Katie Couric






NEW YORK (AP) — Notre Dame linebacker Manti Te‘o will be interviewed by Katie Couric, the first on-camera interview given by the All-American since news broke about the dead girlfriend hoax.


Te’o and his parents will appear on Couric’s syndicated talk show Thursday. ABC News announced the interview Sunday, but gave no details as to when it will take place and where.






Te’o gave an off-camera interview with ESPN on Friday night. He insists he was the victim of the hoax, not a participant. The Heisman Trophy runner-up said he had an online romance with a woman he never met and in September was informed that the woman died from leukemia.


Te’o told ESPN that the person suspected of being the mastermind of the hoax has contacted him and apologized.


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Well: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor housecat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richters’ house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can by shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

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Dreamliner probe widens after excess battery voltage ruled out










WASHINGTON (Reuters) - U.S. safety investigators on Sunday ruled out excess voltage as the cause of a battery fire this month on a Boeing Co 787 Dreamliner jet operated by Japan Airlines Co (JAL) and said they were expanding the probe to look at the battery's charger and the jet's auxiliary power unit.

Last week, governments across the world grounded the Dreamliner while Boeing halted deliveries after a problem with a lithium-ion battery on a second 787 plane, flown by All Nippon Airways Co (ANA), forced the aircraft to make an emergency landing in western Japan.






A growing number of investigators and Boeing executives are working around the clock to determine what caused the two incidents which the U.S. Federal Aviation Administration says released flammable chemicals and could have sparked a fire in the plane's electrical compartment.

There are still no clear answers about the root cause of the battery failures, but the U.S. National Transportation Safety Board's statement eliminated one possible answer that had been raised by Japanese investigators.

It also underscored the complexity of investigating a battery system that includes manufacturers across the world, and may point to a design problem with the battery that could take longer to fix than swapping out a faulty batch of batteries.

"Examination of the flight recorder data from the JAL B-787 airplane indicates that the APU (auxiliary power unit) battery did not exceed its designed voltage of 32 volts," the NTSB said in a statement issued early Sunday.

On Friday, a Japanese safety official had told reporters that excessive electricity may have overheated the battery in the ANA-owned Dreamliner that was forced to make the emergency landing at Japan's Takamatsu airport last week.

"The NTSB wanted to set the record straight," said one source familiar with the investigation who was not authorized to speak publicly.

U.S. investigators have already examined the lithium-ion battery that powered the APU, where the battery fire started in the JAL plane, as well as several other components removed from the airplane, including wire bundles and battery management circuit boards, the NTSB statement said.

On Tuesday, investigators will convene in Tucson, Arizona to test and examine the charger for the battery, and download non-volatile memory from the APU controller, with similar tests planned at the Phoenix facility where the APUs are built. Other components have been sent for download or examination to Boeing's Seattle facility and manufacturer facilities in Japan.

Securaplane Technologies Inc, a unit of Britain's Meggitt Plc that makes the charger, said it will fully support the U.S. investigation.

Officials with United Technologies Corp, which builds the plane's auxiliary power unit and is the main supplier of electrical systems on the 787, said they would also cooperate with the investigation.

The NTSB's decision to travel to Securaplane's facility sparked fresh questions about the safety of the lithium-ion batteries that remain at the heart of the investigation.

While the 787 is the most aggressive user of lithium-ion battery technology in commercial aviation, the industry at large is testing it, and the FAA has approved its use in several different planes, each governed by "special conditions."

"Lithium-ion batteries are significantly more susceptible to internal failures that can result in self-sustaining increases in temperature and pressure," the FAA said in 2006, when it allowed Airbus to use lithium batteries for the emerging lighting system on its A380.

Securaplane, which first began working on the charger in 2004, suffered millions of dollars of damages in November 2006 after a lithium-ion battery used in testing exploded and sparked a fire that burned an administrative building to the ground.

Boeing spokesman Marc Birtel said an investigation into the 2006 fire was later determined to have been caused by an improper test set-up, not the battery design. He declined comment on the current 787 investigations.

After the fire, a former Securaplane employee named Michael Leon sued the company, alleging that he was fired for raising security concerns about charger and discrepancies between their assembly documents and the finished chargers.

Leon's suit was later dismissed.

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